Source · Select Committees · Public Accounts Committee
Recommendation 22
22
Accepted
Ofcom unable to forecast scale of online safety fees, prioritising proportionality and fairness.
Conclusion
We asked Ofcom whether it has been able to give industry any indication about the likely scale of fees. Ofcom was unable to comment but did highlight that it will run a consultation during which industry can provide input and that ultimately the Government 39 Q 58; C&AG’s Report, para 2.6 40 Q 66 41 C&AG’s Report, para 2.7 42 Q 59 43 Q 59; C&AG’s Report, para 2.6 44 Q 61 45 Q 63; C&AG’s Report, paras 2.6, 2.7 46 Q 62 47 C&AG’s Report, para 2.9 48 Qq 80–82 14 Preparedness for online safety regulation will have a role in deciding on some of the trade-offs involved in setting up the fee regime.49 Ofcom recognised the challenge that more time may be spent regulating smaller and risky companies, which is paid for by larger and more compliant companies. It stated that it will aim to be proportionate, fair and administratively effective with how it sets the fees across the industry.50 Ofcom also told us that it will be completely transparent with industry at the start of each financial year about the fees it will be charging.51 Capacity and skill requirements
Government Response Summary
The government agrees with the committee's observations and states Ofcom will consult publicly on its fees regime in Summer 2024, aiming for implementation in the 2026-27 financial year, and plans to consult on recouping pre-charging costs once the 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.