Thompson: 'Real disappointment' over licence fee

An email to BBC staff from director general Mark Thompson tells of his "real disappointment" at the level of the government's reported licence fee settlement.

Thompson said the reports that emerged before Christmas, which leaked the government's proposed settlement plans for a 3% increase for each of the next two years, followed by a 2% rise in each of the next three years, were credible.

Media secretary Tessa Jowell is due to confirm the details in a statement to the House of Commons next week. The settlement is below the 1.8% above inflation rise the BBC had asked for, and is significantly less than the current retail price index of 3.9%.

The email, published in full by Broadcast, was sent to staff before the Christmas break.