BBC Trust

"We are pleased that her announcement makes clear that the PSB funding review will not reopen what has been agreed with the BBC about the licence fee in the funding settlement and the Charter. The BBC's immediate priority is completion of the major review of BBC investment priorities to ensure the public is best served in light of the six year licence fee settlement.

"Whilst we would caution against the risk of excessive review, the Trust does look forward to playing a key role in safeguarding the future of UK public service broadcasting. In participating in both the Ofcom PSB review and the Government funding review, the Trust will be guided by its Charter responsibility as guardian of the licence fee and the public interest in the BBC. The licence fee system acts as a safeguard for the BBC's independence, as a source of stability allowing high quality, innovative and distinctive content, and a means by which the BBC can be called clearly to account. In any review of PSB funding it will be important to ensure that these principles are maintained.

"In the meantime, we note the Secretary of State's decision to implement her White Paper proposal to allocate a maximum of £14m to Channel 4 to cover its one-off digital switchover costs subject to State Aid approval, which we have acknowledged previously to be in line with the BBC's responsibilities to take a leading role in delivering digital switchover."