UPDATE: In announcing the freeze, the BBC has bowed to the inevitable. New UK Prime Minister David Cameron first called for the licence fee to be frozen in March. TV consultant Claire Enders of Enders Analysis tells me this is a “sensible approach from the BBC to accept that it does not require this additional income to fulfill its responsibilities.” And budget trims of 3% sound measly at a time government departments are facing 25% reductions. But BBC Trust, the Beeb’s governing body, warns that £144 million will have to be chopped from planned budgets. Responds the TV Producers’ lobbyist PACT: “We are alarmed at what impact this may have on the TV programme budget and the consequences that any further reduction will have on individual programme budgets, which are already under considerable strain,” says CEO John McVay. Right now every UK household pays for BBC service through a TV license fee of £145.50 ($227) until the current deal expires March 2013. So British taxpayers fund the BBC to the tune of £3.5 billion a year.
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