Source · Select Committees · Public Accounts Committee
Recommendation 21
21
Accepted
Ofcom has yet to determine key details for the online safety fee regime design.
Conclusion
Ofcom has yet to determine many of the details of the fee regime, including the period over which set-up costs will be recovered; the revenue threshold at which firms start to pay fees; and the fee rates payable. It had also yet to undertake financial modelling to inform the design of the fee regime.47 Ofcom explained that, before it sets up the fee regime, the Act requires it to produce advice for the Secretary of State on revenue thresholds, which will require consultation, and to publish a statement of charging principles that sets out how Ofcom has calculated the fees for each year. Ofcom expects that the fees are likely to be index-linked, but is still working out the details.48
Government Response Summary
The government agrees and states that Ofcom will consult publicly in Summer 2024 on its fees regime, including revenue definition and charging principles, aiming for implementation in the 2026-27 financial year. The department will also consult on recouping pre-charging year costs once the fee regime is operational.
Government Response
Accepted
HM Government
Accepted
4.1 The government agrees with the Committee’s recommendation. Target implementation date: Summer 2024 4.2 As set out in its approach to implementing the Online Safety Act 2023, Ofcom will consult publicly in Summer 2024 on its approach to the fees regime, including the definition of Qualifying Worldwide Revenue and its statement of charging principles. 4.3 As part of this consultation, Ofcom will set out the evidence and reasoning for its proposed approach, which will include financial modelling and impact assessments undertaken to support these proposals. 4.4 Ofcom continues to work with the Department for Science, Innovation and Technology (the department) with the aim of implementing the fees regime in the 2026-27 financial year. The consultation will provide more detail about the proposed timetable. 4.5 Decisions around recouping Ofcom’s costs pre-dating the initial charging year are the responsibility of the Secretary of State. The department intends to consult on the approach to recoupment once the fee regime is operational.