Overview

This bill establishes an independent BBC Licence Fee Commission to recommend the level of the BBC licence fee from April 1st, 2022 onwards. The Commission will conduct public and parliamentary consultations before making its recommendations to the Secretary of State, who will then decide whether to accept them, with reasons for rejection published if necessary.

Description

The bill creates the BBC Licence Fee Commission, an independent body responsible for recommending the annual BBC licence fee. The Commission will undertake comprehensive public and parliamentary consultations before submitting its recommendations to the Secretary of State for Digital, Culture, Media and Sport. The Secretary of State will consider the Commission's recommendations and determine the final funding settlement. If they reject the recommendations, they must publicly explain their reasoning. The legislation applies to the whole of the United Kingdom and comes into force two months after its passage.

Government Spending

The bill doesn't directly impact government spending. Instead, it establishes a process for determining the level of the BBC licence fee, which is the primary source of funding for the BBC. The ultimate impact on government spending depends on the Commission's recommendations and the Secretary of State's decision, as it affects the level of funding received by the BBC – a publicly funded organization.

Groups Affected

• The BBC: The bill significantly impacts the BBC's funding, as the licence fee is its primary source of income. The level of funding will be influenced by the Commission's recommendations.
• Licence Fee payers: The level of the licence fee will directly affect the amount they pay annually. The public consultation element of the bill aims to involve them in determining the appropriate level.
• The Secretary of State for Digital, Culture, Media and Sport: This government department is given the responsibility of considering the commission's recommendations and ultimately setting the licence fee.
• The BBC Licence Fee Commission: This newly formed independent body will be responsible for undertaking consultations and making recommendations regarding the level of the licence fee.
• Parliament: Parliament will be involved in the process through the parliamentary consultation and approval of the regulations.

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