BBC fights back on local news sharing

TALKS between the BBC and ITV to create a cost-cutting regional news partnership have hit a stumbling block, with the BBC disputing operating cost estimates provided by the broadcasting regulator, Ofcom.

Ofcom has said that a basic schedule for the service would cost between £40m and £60m a year, with a fuller service costing up to £100m.

However, figures commissioned by the BBC estimate a maximum annual cost of £30m to £50m, at least £20m of which would come from sharing resources with the BBC.

The protest comes two weeks before the publication of the government’s Digital Britain white paper, which will outline proposals to reform the funding of public service broadcasting and ensure the “plurality” of regional news.

But the BBC fears the reforms would result in a large portion of its license fee being skimmed off to pay for regional news, and has emphasised that it does not see “top slicing” as a way forward.

The BBC said yesterday that talks continued around a memorandum of understanding between itself and ITV, and that it remains committed to ensuring that regional news is available on channels other than the BBC.

“The BBC is more than willing to implement its commitment to sharing resources, buildings and pictures in pursuit of maintaining an informed democracy,” said the corporation’s director of policy and strategy, John Tate.

Struggling ITV has said that it could no longer afford to produce regional news and that it intended to withdraw the service over a period of two years.