Television licence fee rises by £4

Tessa Jowell, the Culture Secretary, will announce a rise of £4 in the television licence fee today as the debate over the legitimacy of the system of funding the BBC continues.

The rise – bringing the annual fee for a colour set to £116 – follows a formula set down in 2000 by a committee headed by the economist Gavyn Davies, now chairman of the corporation. It will give the BBC at least £100m extra revenue in the next financial year.

The increase comes amid legal attempts to stop the licence fee being paid, in part based on Section 10 of the European Convention on Human Rights, which deals with the freedom to receive information without interference.

Last year Gordon Brown, the Chancellor, ordered an inquiry BBC funding. This could lead to changes in the licence-fee system, letting other broadcasters dip into the BBC's £2.5bn pot of public money.