Thompson resigned to below par licence fee

BBC director general Mark Thompson expressed 'real disappointment' at the level of the proposed licence fee settlement that was leaked by government sources to political correspondents before Christmas.

BBC director general Mark Thompson expressed 'real disappointment' at the level of the proposed licence fee settlement that was leaked by government sources to political correspondents before Christmas.

In an email to staff, Thompson said that there were important aspects of the settlement that the BBC had heard nothing about. However, he admitted the reports of a 3% increase for each of the next two years, followed by a 2% rise in each of the next three years were credible.

Media secretary Tessa Jowell is expected to confirm the news next week in a statement to the House of Commons.

The settlement means the licence fee will rise to £135.45 next year from its present level of £131.50 and by 2012 will likely be between £148.05 and £151.

This is well below the annual rise of 1.8% above inflation the BBC had asked for and is significantly less than the current retail price index of 3.9%.

Click on the link below to read the full email from Mark Thompson.