The television licence fee settlement announced by the Government in February 2000 provides for changes in the licence fee of RPI plus 1.5 per cent. for each year from 2000–01 to 2006–07. 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 over £1 billion through efficiency savings and increased income over the period.Application of the RPI figure of 2.7 per cent. for the year to September 2005, plus 1.5 per cent., to the current un-rounded licence fees produces new rounded totals of £131.50 for a colour licence and £44.00 for a black and white licence. The necessary regulations to bring these fees into force will be laid before the House in due course. The changes will come into effect from the 1 April this year.

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