The BBC license fee is to rise by £3 to pay for digital TV, the government announced yesterday.
The move follows rumour-fuelled speculation and a government-commissioned investigation into BBC finances last summer. At the time the panel -- headed by economist Gavyn Davies -- sparked controversy by proposing an extra £24 for digital viewers. Angry commercial broadcasters dubbed the rise a digital poll tax.
Turning his back on the recommendations of the Davies panel, culture secretary Chris Smith has decided to impose a three pence per week increase for both analogue and digital TV licenses. The rise -- 1.5 percent above inflation -- is necessary to keep the BBC as the vanguard of digital services, according to Smith.
More details to follow.