In the space of 24 hours the government has gone from proposing a plan that would have cut the BBC's budget by over a quarter to freezing the licence fee for six years, which, combined with additional costs, amounts to a 16% real terms cut in funding.
The negotiations began, I'm told, with the BBC Trust warning that it would fight "tooth and nail" to resist a proposal that the corporation pay for free TV licences for the over-75s. Trust members argued the move would turn the BBC into an arm of the welfare state and undermine its independence.
Discussions ended with all-night consideration of a package that the corporation decided would be tough, but would preserve its size and scope and guarantee its finances until after the next election.
The Treasury believes it forced the BBC to adapt to the age of austerity. The BBC hopes it has short-circuited a long and potentially painful debate about cutting it down to size and now has the certainty to plan for the future.
Whoever's right, it's a pretty curious way to determine the future of British broadcasting.
I wonder what Rupert Murdoch will have to say about it when he speaks in London on Thursday.
Source: http://www.bbc.co.uk/blogs/nickrobinson/2010/10/carry_on_broadc.html
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