Under the BBC's Charter1, 'funding settlement' means a determination by the Secretary of State of the level of the licence fee and the level of licence fee revenue for the period of the settlement2.
The Secretary of State, in determining a funding settlement, must: (1) assess the level of funding required for effective fulfilment of the BBC's mission and promotion of the public purposes3; (2) consider an assessment of the BBC's commercial income and activities
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