The BBC is proposing a 2.3% per year increase in the Licence Fee, 17% of which is spent on radio. Five more BBC local radio stations are planned. The CRCA says smaller, local, commercial radio stations will feel the impact, with many ceasing to broadcast over the next 10 to 15 years.
Paul Brown, chief executive of the CRCA, said the smaller operations outside big cities were most at risk if the BBC is allowed to expand. He said the BBC could waste millions of pounds when there is no need for additional publicly-funded radio stations. Brown added: "These services are already provided by the commercial radio sector."
He pointed out that, although the market is protected from private sector dominance, with only two private players allowed in each area, there is no constraint on the BBC.
Phil Riley, chief executive of Chrysalis Radio, said: "This distortion from a state-funded player must be checked."
The research is being released ahead of the Government White Paper - expected in early March - on the renewal of the BBC's Royal Charter. There will be a consultation process involving the commercial sector on the appropriate level of Licence Fee increase.
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