The report, Mind the Funding Gap, by the Institute for Public Policy Research, and also commissioned by broadcasting union Bectu, concludes that following digital TV switchover in 2012, the significant cost of the TV spectrum, previously gifted to PSB providers, will create a funding gap of between £145m and £235m.
The IPPR suggests that PSB could be funded in future by levying more profitable sectors of the TV and communications sectors. It said similar levies are used in 30 European countries and raised €99m in 2007. Pointing out that levies are popular with the public as a means of providing publicly important services, the IPPR concludes that a 1% levy on pay-TV services would yield about £70m annually, based on assessments from Virgin and Sky.
Its report says a 1% levy on the five major UK mobile phone operators would yield about £208m a year.
It adds: "Although these figures remain estimates, as a final model would likely be different, clearly these methods could go some way towards meeting the funding gap identified by Ofcom, and ensuring the future of PSB in the UK."
The IPPR concedes the introduction of such a system would be a "bold move", but argues: "The scale of the challenge facing the UK's PSB system would seem to demand radical solutions. At first glance, levies may not appear politically popular but there is a strong rationale for considering them as a serious option".
Ofcom, through its public service broadcasting review, and the Department of Culture, Media & Sport, through its Digital Britain work with the Department of Business, Enterprise and Regulatory Reform, are currently mapping out means of funding PSB in the future. The Government is expected to outline its plans in the summer.
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