BBC told licence fee target is unrealistic

[SOURCE: Financial Times, AUTHOR: Ben Hall and Andrew Edgecliffe-Johnson]
The BBC has been told by the government that its plans for an up to 40% increase in the licence fee over the next 10 years are “unrealistic.” Negotiations between the broadcaster and the government will begin in earnest after Tuesday’s publication of a white paper with proposals to overhaul the BBC’s governance and subject its operations to an independent “market impact assessment." Ministers will announce the new licence fee in June or July. But the opening discussions have not gone well for the BBC. The government has already concluded that the corporation will have to settle for an increase in the annual licence fee significantly below the BBC’s proposal of rate of inflation plus 2.3%.
http://news.ft.com/cms/s/ac144d3e-b2d4-11da-ab3e-0000779e2340.html
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