BBC Gets £55M Boost In 2016 Budget, As The Predicted Cost Of Over-75s TV Licenses Falls -
Home / Science Fobia / BBC Gets £55M Boost In 2016 Budget, As The Predicted Cost Of Over-75s TV Licenses Falls

BBC Gets £55M Boost In 2016 Budget, As The Predicted Cost Of Over-75s TV Licenses Falls

BBC Gets £55M Boost In 2016 Budget, As The Predicted Cost Of Over-75s TV Licenses Falls

The “Red Book” of little print, which went along today with George Osborne’s 2016 U.K. government Budget, contains a point of interest that clearly advantages the BBC. The anticipated expense of giving free TV licenses to retired people beyond 75 a years old a risk to which the BBC grudgingly concurred in last July’s permit charge settlement – has been modified downwards. On the off chance that these figures are right, the BBC will advantage to the tune of £55 million by 2020/21. I’ve put section and verse on where to discover the numbers toward the end of this post. They come down to this: the expense to the BBC is anticipated to fall by £15 million in 2018/19 (from £200 million to £185 million), by £20 million in 2019/20 (from £445 million to £425 million) and by £20 million in 2020/21 (from £745 million to £725 million). I can’t discover any sign in the Treasury records in the matter of why the figures have been changed.
Furthermore, obviously, they are expectations – not actualities. The genuine expense will rely on upon what number of more than 75-year-old families there really are by 2018 and onwards, and along these lines the amount of those family units would have paid. What the July 2015 settlement did was to stage in the BBC’s risk for the more than 75s more than three years. It guarantees that the BBC will get a diminishing yet altered transitional appropriation in 2018/19 (£468 million) and 2019/20 (£247 million), preceding leaving the BBC to hold up under the full cost (of £745 million, or £725 million, whichever it really is) in 2020/21. In the event that those transitional appropriations are to continue as before, then the new anticipated cost figures must expect that the quantity of more than 75 family units will be lower than beforehand suspected. By my back-of-an-envelope math, and accepting a consistent BBC permit charge per family unit of £145.50, there must be 103,000 less such families in 2018/19 to have a £15 million effect – and 137,000 less in 2019/20 onward to have a £20 million effect. That is a significant expansive number of families – however just 2.6 for every penny of the initially anticipated aggregate. On the off chance that this is genuine cash to the BBC – and that is truly a major if, given the unwavering quality of government estimates – then it is a smallish however critical help to the partnership’s funds. From 2020/21 onward, it’s £20 million a year less that chief general Lord Hall needs to discover in yearly investment funds – a minor portion of his maintained £800 million-a-year target, however in any case 66% of the £30 million-a-year that end the BBC Three TV channel spared. Also, the total sparing of £55 million more than three years is a convenient total for any association to have in its back pocket – enough, for those three years, to spare the BBC News TV channel from conclusion.

Leave a Reply

Your email address will not be published. Required fields are marked *