BBC's secret licence fee deal to fund £800m HQ
Felix Allen15.12.08
BBC bosses negotiated a secret deal with the Government to guarantee the future of the licence fee until at least 2033 - so the broadcaster could secure funding for its huge building programme, former director-general Greg Dyke has revealed.
The corporation is defying the recession by spending more than £800 million on a striking new central London headquarters, built of glass and Portland stone, in an ambitious redevelopment of Broadcasting House.
The licence fee is officially due for review in 2012 and the BBC's royal charter expires in 2016.
But Mr Dyke, who masterminded the deal, said the building project was so huge it forced ministers to give secret written assurances that the corporation would be "properly funded" until at least 2033.
The assurances, from then culture secretary Tessa Jowell, allowed the corporation to win a coveted AA credit rating for its unprecedented 30-year bond issue, which raised £813 million for building works, Mr Dyke claimed.
He said: "When we were getting the bond we had to get an assurance from the Secretary of State that the BBC will still be around... and will still be properly funded."
Tory MP Philip Davies accused Ms Jowell of tying future governments' hands, adding: "She was giving an assurance she was not entitled to make. It's a constitutional outrage."
The Department for Culture insisted ministers had not acted "unconstitutionally" but declined to comment further.
The nine-storey Broadcasting House extension, already two years behind schedule and £20 million over budget, will house 4,500 staff, 36 radio studios, six TV studios, two control rooms and 60 editing suites. It will also include the world's largest newsroom, a 43,000 square foot open-plan office the size of half a football pitch.
Reader views (12)
Paul of Bromley. First class? What are you talking about! Third rate left wing biased rubbish more like. If al-beeb is so great let them compete on equal terms and prove it. Scrap the License fee and pay their own way.
- Rusty Shackleford, UK
A world class broadcasting corporation needs world class premises, equipment and incentives to get the best staff.
What do people suggest..? A couple of portakabins? If Britain wants to remain at the forefront of quality news and programming, this is a must.
I'm proud of the BBC and it's jounalists have a global currency that carries weight in every corner of the world.
Ok, they make mistakes, let's not cut off our noses.
P x
- Paul, Bromley, Kent
It could make the Maison De Radio France in Paris look like someone's garden shed!
- Peter Seekings-Foster, Mildenhall, Suffolk.
Well, this incredible revelation hasn't appeared on BBC news yet.
Why not, as I've been tuned into Five Live [so called]News and Sport Channel all day?
- Dave, cumbria
Deals of this sort being funded by the Government may be defensible, assuming acceptable priorities are observed. I suspect I would rather see the money used for hospitals or schools or equipment for our armed forces. The fact that this was done in secret only serves to confirm my long held suspicion that the BBC is in the pocket of New Labour. The licence fee should be scrapped not preserved in a crony-like way. Let t
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