Recommendation 19

Ofcom’s expenditure is subject to an overall budget cap set by HM Treasury. Treasury agreed to increase this cap to fund the upfront costs of the online safety regime, with the costs funded from Ofcom’s retention of Wireless Telegraphy Act 2006 receipts, which it would have otherwise handed to the Exchequer.39 The Department told us that this arrangement will continue until the fee regime is in place.40 As at April 2023, Ofcom estimated that its cumulative costs in preparing for and implementing the regime could total £169 million over five years by the end of 2024–25.41 As part of this, the Department and Treasury agreed to provide Ofcom with £63 million for 2024–25, which was £3 million less than Ofcom had requested.42