Home > Media and Analysts > News Release Archive > News Releases - 2008 > March > 31|03|08

31|03|08

Reduction in the underlying cost of regulation for 2008/9

Ofcom today published its Tariff Tables for 2008/9, which sets out an overview of the fees due from industry for the coming financial year.

Ofcom is funded by payments from broadcasting licensees and communications providers, as well as payments for the management of the UK radio spectrum.

Operating budget

On a like-for-like basis, Ofcom’s budget for 2008/9 will be £133.7m, which is 1.5 per cent lower in real terms than its budget for 2007/8. This is the fourth consecutive real terms reduction in Ofcom’s budget and 17.5 per cent lower in real terms than Ofcom’s original full-year budget set in 2004/5.

Ofcom is confident that, following several years of major efficiency improvements and initiatives, the organisation now operates with greater stable budgetary requirements.

Government loan

To cover the cost of establishing the organisation Ofcom received a £52.3m loan from the Government. The set-up costs were incurred during the period March 2003 to January 2004.

During the financial year 2007/8 Ofcom completed the repayment of the loan, together with the accumulated interest. Therefore, from 2008/9 onwards the loan will no longer be recouped through regulatory fees from stakeholders.

Operating costs and priorities

Ofcom’s operating costs are allocated to each sector according to the extent of work proposed for that sector in 2008/9. The stakeholder charges are set in accordance with the Statement of Charging Principles.

Ofcom’s work programme for 2008/9 is set out in its Annual Plan. The draft for consultation was published on 11 December 2007 and the final version of the Annual Plan will be published on 3 April 2008.

See Related Items for the Tariff Tables for 2008/9 and the Statement of Charging Principles.

Back to top