The government have been making noises about major cuts to the BBC, this hasn't materialised but instead what has happened is the licence fee has been frozen at current levels while the BBC are expected to fund more and more out of it.
Including funding S4C in Wales and the World Service, as well as providing investment in high speed broadband and Local TV and news services.
So when the quality of the output falls due to this they will have another stick with which to beat the BBC.
Including funding S4C in Wales and the World Service, as well as providing investment in high speed broadband and Local TV and news services.
From The Guardian
The BBC licence fee is to be frozen at the current level of £145.50 for the next six years, a 16% cut in real terms, after the corporation today concluded a bruising round of funding negotiations with the coalition government.
BBC executives have staved off the threat of being forced to take on the £556m a year funding of free TV licences for the over 75s, but at a heavy price.
Among the extra commitments the BBC has signed up to are to fund the World Service and Welsh language broadcaster S4C out of the licence fee from 2015. The BBC is also understood to have agreed to take over funding of BBC Monitoring.
In addition it will provide £150m a year for the roll out of superfast broadband to rural areas from 2013 and £25m a year for local TV and online content. A further one off capital investment in local TV and online services of £25m will also come from the licence fee and the BBC will also underwrite the roll out of the digital radio network nationally.
In total, the BBC has committed to spend an extra £340m of licence fee money to fund all these undertakings from the licence fee by 2014-15. Government expenditure from central taxation will fall be an equivalent amount.
The World Service's annual budget is £272m, S4C's £102m, and BBC Monitoring £25m, although all are expected to be cut as part of the government's comprehensive spending review, to be unveiled tomorrow.
A government source said: "This is a good deal for licence fee payers."
"This deal gives the BBC long term security," said another source with knowledge of the deal. "The BBC are very happy with it."
So when the quality of the output falls due to this they will have another stick with which to beat the BBC.