Predicting the addition of all these factors during this period is complex; We assume that the new rules will result in a flat-rate funding for BBC services in the first five years of the next Charter period. In real terms, the funding of royalties for BBC services will decrease by about 10%. The way the financial regulation is structured gives the BBC, in the early years of the next charter, a margin of investment in digital transformation before costs over 75 are absorbed. This will help us cope with the transition that we all know is entering an online world. We believe that the content of what has been agreed is a strong agreement for the BBC in very difficult circumstances. Of course, after the Charter review process begins, it could result in additional burdens on the part of the BBC, such as the decriminalization of the licence fee, which we believe would result in an additional cost of $200 million. As part of the agreement, the government said it would consider decriminalisation in light of the Perry report and the need for adequate funding from the BBC. James Heath as Political Director The decisions that the BBC and the government have taken together will also secure their long-term future, with a sustainable funding model that can adapt to a rapidly changing technology era. Selected commissions at Commons and Lords have conducted studies on Charter renewal. In its February 2016 report, the Commons Culture, Media and Sport Committee called for a radical overhaul of the BBC`s governance system.
In particular, the Lord`s Communications Committee criticized the way in which the July 2015 funding contract was concluded. Towards the end of the last Parliament, it became clear that formal negotiations on Charter renewal would not begin in earnest until after the 2015 legislative elections. Bradshaw Whittingdale had promised to consult the house on the BBC`s funding changes. "He broke that promise today and I am extremely disappointed," he said. BBC staff have been warned by management to be cautious in the way they have talked about the social media funding regime. In an e-mail, they were reminded of instructions that say to employees, "Don`t listen openly to things in a partisan way. Don`t be seduced by the informality of social networks to discredit the BBC. Last week, the BBC announced 1,000 job cuts to deal with the consequences of a $150 million funding gap next year as more and more people fail to pay their royalties. Also in July 2015, the government published a green paper on the review of the charter. The BBC then published its proposals for the creation of an "open and more distinctive BBC". The BBC`s official response to the Green Paper`s questions was published in October, with detailed proposals for savings in November and more in spring 2016.
In March 2016, a summary of responses to the Green Paper was published, showing broad public support for the group and its independent status.