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What happens to the money from Ofcom fines?

By mofgimmers on September 12th, 2007 3 comments

cashmoney.jpg With ITV bracing itself for a £2.8m fine for the GMTV premium-rate phone-in scandal and the news that ITV are to scrap ITVPlay, it seems that the days of phone-in competitions are well and truly numbered. We reported on the Blue Peter fix, the scandal surrounding Brainteaser and Richard and Judy… and we all secretly cheered that these robbing gits were finally being punished. Hefty fines were handed out and tails were promptly popped between legs.

We know that Ofcom hit the broadcasters hard… but were does the money go? We all blindly accept that it disappears to somewhere just and true when really, this could all be going into the coffers of some bloke in a suit all set for some very swanky holiday for him and all his mates. Having a trawl around the ‘net, no answers were immediately forthcoming. So where is it going?


What first got me thinking was the £50,000 fine handed out to the BBC over the Blue Peter phone-in row. As we all know, we pay for the BBC. It comes out of our taxes. So am I right in assuming that we’re paying for the fact we’ve been lied to? I don’t see anyone taking a pay cut anytime soon [insert nodding here]. Obviously, this all seems a bit rich.

So, in an attempt to find out what happened to these fines, these fines which were imposed for our benefit for all those missing millions (if you believe reports, this could add up to in excess of £40m in the case of GMTV alone), I rang Ofcom to find out.

Speaking to a chap there, he simply said “I don’t really know… I think it goes to The Treasury”. Obviously, this isn’t good enough as an answer. So I’m put on hold and this chap comes back with “Hi, I’m afraid you’ll have to take it up with The Treasury”. It seems that those who work for Ofcom are just as puzzled as I am.

So what do The Treasury do with the money? Well, they redistribute it. This means ‘Building Britain’s Long Term Future’ and other woolly statements. However, that doesn’t really help when thinking about the BBC fine. We pay for the BBC, they get fined, so our money is filtered back out to the Treasury and given back to us. So in essence, we pay for the BBCs fine and get some buses in return? How are the Beeb being punished exactly?

If any of our readers know more about this, or indeed, have anything to say on the matter, please leave a comment. Your views are always more than welcome.

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3 Responses to “What happens to the money from Ofcom fines?”

  1. owen says:

    i also thought about this, and with all major fines by regulators. it seems as if the answer to everything punishable results in a heavy fixed fine.

    in response to the BBC fine, i think we shoud recieve formal appologies and a reduction in tax for the BBC

  2. Ian says:

    At the moment they go towards paying back the £55m start-up loan from the DTI, after that to the treasury I suppose?

  3. Ian says:

    Owen,the BBC fine would probably give you less than 50p back but cost £1 to administer, the apologies have already been made.




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