The price of the colour television licence fee is set to rise by£5 to£121 from April next year.

The price of the colour television licence fee is set to rise by£5 to£121 from April next year.

Media secretary Tessa Jowell announced the rise in a written statement to the House of Commons yesterday (11 November). Under the funding formula worked out in February 2000 the licence fee can rise by the retail prices index (RPI) plus 1.5%. The new cost will take effect from 1 April 2004.

The cost of a black and white licence will cost£40.50.

Jowell said: "This settlement is designed to enable the BBC to provide a strong and distinctive schedule of high quality programmes and remain at the forefront of broadcasting technology. The settlement includes a requirement for the corporation to raise around£1.1bn through efficiency savings and increased income over the same period."

However the hike was criticised by the Tories. In her first public statement since being made Conservative media spokesman Julie Kirkbride said: "Many people will wonder why their TV licence has yet again gone up under Labour. After six years of this failing Labour Government we have seen 7 rises in the cost of the TV licence - a 32% increase since Labour came to power.

"It is my view that the licence fee is a regressive tax which bears most heavily on those on the lowest incomes. There is growing evidence that public support for a compulsory licence fee is declining, with many no longer regarding it as providing value for money.'

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