BBC chief says he is pleased with licence fee deal as TV rivals face ad downturn

Tim Davie says six-year agreement insulates corporation from volatility in the market

The director general of the BBC has told MPs he is pleased with the new licence fee settlement, in which the government reneged on an agreement and cut the planned annual rise by a third, as rivals tackle a severe downturn in the TV industry.

Tim Davie has said he “welcomes” the six-year deal as it insulates the corporation from the ongoing volatility in the market and guarantees four years of budget increases.