Tory plan to share BBC licence fee

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A Conservative research paper said it was essential to maintain "plurality" of provision amid signs that some commercial providers are struggling to justify some services.

"This tradition of plurality has been vital in raising standards across British broadcasting, as well as keeping the BBC on its toes," the document stated. "When Channel 4, ITV and Sky are at their best they raise the bar for the BBC. Without them, the BBC will atrophy."

No figures for the potential "top-slicing" of the licence fee have been produced by the Conservatives, whose leader David Cameron is a former communications chief at TV firm Carlton.

But there was speculation that £250 million could come from the budget for the digital switchover.

The Tories said continued competition was vital to ensure impartiality in news and current affairs coverage. "The best possible guarantor for impartiality is the availability of choice," the paper, produced by the Tory research department, said. "In the end, viewers' ability to switch channel is far more important than simply letting them complain to a regulator."

The BBC would remain the main beneficiary of the licence fee and competitors would only be allowed to bid for a share of the cash for public service areas.

"The new structure must not damage the BBC, the organisation that produces to a high standard the vast majority of public service broadcasting.

"Most BBC employees recognise that competition in broadcasting is a good thing for the BBC, and there is a balance to be struck between ensuring that competition exists and making sure the BBC is able to continue to do its job well.

"Other organisations should only be able to bid for licence fee money in specific areas where plurality of provision was lacking, such as daytime children's TV, with the BBC continuing to receive the vast bulk of the licence fee."