Tories would share licence fee cash

Commercial broadcasters would compete with the BBC for licence fee proceeds under new proposals from the Conservatives.

A research document backed by shadow culture minister Jeremy Hunt said a new fund should be overseen by an independent commission picked by MPs.

The BBC would still get the majority of licence fee money but broadcasters could apply for a share in areas where more "plurality" was needed.

"When Channel 4, ITV and Sky are at their best they raise the bar for the BBC," says the document. "Without them, the BBC will atrophy.

"The new structure must not damage the BBC, the organisation that produces to a high standard the vast majority of public service broadcasting...

"Other organisations should only be able to bid for licence fee money in specific areas where plurality of provision was lacking, such as daytime children's TV, with the BBC continuing to receive the vast bulk of the licence fee."

Hunt said: "The BBC is the crown jewel but for British broadcasting to be healthy, we need to have quality public programmes from many sources - not just one."

Reports said the Conservatives wanted to put money from a possible £250m underspend on digital switchover into the fund.

Ofcom will make firm proposals about the future of public service broadcasting in the autumn after setting out options in coming weeks.

Channel 4 has already said it needs more funding.

The document also says the BBC should be careful not to stifle competition with its online activities.