The BBC World Service is facing major changes to the way it's funded as part of big public spending cuts being introduced by the British government. The World Service's annual budget of more than $400 million is currently paid by the British Foreign Office. The government now wants the BBC to meet the full cost out of the money it levies from all British television viewers. Here is Nick Robinson with the details.
Although the BBC's budget is theoretically no part of the spending round, ministers have spent the past few months making it clear to the corporation that it could not remain unaffected. The first proposal they made was for the BBC to take on the £600 million cost of providing free TV licences for the elderly, in effect, a real termed budget cut of a quarter. When the BBC protested that it was not part of the welfare state, ministers returned with another idea - the BBC should take over from the Foreign Office the cost of providing the World Service and pay for the Welsh language channel S4C. In addition, it should extend the freeze on the licence fee from two years to six.
Nick Robinson.
World News from the BBC
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