BBC decision due this week

After weeks of delay, the government plans to make an announcement about the BBC licence fee.

The announcement is expected to be made to the House of Commons on February 21 or 22 by Culture Minister Chris Smith.

Originally, a statement on the future of the BBC licence fee, and the possible privatisation of BBC Resources and Worldwide, was due in early January.

However, a ferocious campaign by commercial broadcasters against the proposed digital supplement of £24 per year for households with digital TVs, forced the government to reconsider its plans

Weeks of behind the scenes wrangling followed, with arguments raging between the Culture Ministry, Treasury, and Prime Minister's Office. The commercial broadcasters, led by BSKYB, Granada, and Carlton, warned that they would not not hand over their lists of digital subscribers, essential to the enforcement of a digital supplement, without being obliged to do so under a full Act of Parliament.

The Labour government is thought to have backed down in the face of this threat, wanting to avoid lengthy Parliamentary debates on BBC funding. A simple licence increase does not require a vote of Parliament.

Throughout the public debate kicked off last August by publication of the Gavyn Davies report, BECTU has campaigned against privatisation of BBC Resources and BBC Worldwide.

Plans to sell of the two departments were included in the Davies report as a financial contribution to the £700m p.a. budget demanded by the BBC to allow an expansion of digital TV and on-line services.

If press rumours are true,the Culture Minister could announnce a modest increase in the analogue licence fee instead of a digital supplement, leaving the BBC several hundred million pounds short of its funding target.