MPs told the BBC may have to share the licence fee

The Government has paved the way for forcing the BBC to share its licence fee with rivals. Consultation will start on the BBC sharing a "small element" of the television licence fee after 2013 to help ensure other broadcasters can provide a robust alternative to the national broadcaster. In the long-awaited Digital Britain report on the future of the internet and TV, the Government called for "high quality, plural provision, particularly in the regions and nations" and this could cost the BBC £130 million a year. ITV has long been claiming it can no longer afford this part of its programming, which is necessary under its public service remit. Outlining the report in the Commons, Culture Secretary Ben Bradshaw also announced the cost of maintaining a landline will be going up as a "small levy" is introduced to help pay for "maximum next generation broadband coverage". BBC Trust chairman Sir Michael Lyons warned against using the licence fee as a "slush fund". He said: "On behalf of licence fee payers, the BBC Trust opposes top-slicing. The licence fee has a clear aim, clear benefits, is clearly understood and has stood the test of time. "Top-slicing would damage BBC output, reduce accountability and compromise independence. "The licence fee must not become a slush fund to be dipped into at will, leading to spiralling demands on licence fee payers to help fund the political or commercial concerns of the day. "This would lead to the licence fee being seen as another form of general taxation. The Trust will not sit quietly by and watch this happen." The interim Digital Britain report released in January outlined plans for every home in the UK to be guaranteed access to broadband internet by 2012 but there was confusion over how improvements to the broadband network would be paid for. Ahead of the report's publication, Gordon Brown branded the internet as necessary as electricity, gas and water to Britons.

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ITN | June 16, 2009

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