BBC faces fines of £250,000 for lapses in taste and decency

The BBC would for the first time face fines for breaches of taste and decency under a beefed-up regulatory regime in the Government's forthcoming Communications Bill.

The move had been resisted by the BBC as a potential waste of licence payers' money, but will place the broadcaster on a par with commercial rivals found to have broken regulations. The recommendation was one of more than 120 accepted by the Government yesterday of 148 made by Lord Puttnam and a cross-party committee appointed to scrutinise the draft legislation.

Tougher powers will be given to Ofcom, the proposed communications regulator, which may go some way to pacifying those who feared it did not have the authority to police the burgeoning communications market. Ministers have stuck to their guns on the two most controversial measures in the Bill: opening British broadcasting to possible foreign ownership; and permitting newspaper publishers to buy Channel 5, a move that could allow Rupert Murdoch to take a stake in British terrestrial television.

Attention focused yesterday on the BBC. A BBC spokesman said the governors operated under clear legal obligations that made it the most closely regulated broadcaster. He said the BBC believed fines were not constructive but understood that the decision was based on a need to demonstrate a clear level playing field. "We look forward to discussing how the fining regime will work."

Nick Harvey, the Liberal Democrats' media spokesman, backed the decision but said: "Taking licence payers' money from the BBC and putting it into Treasury coffers would not be acceptable at all. Investing cash from BBC fines in community television initiatives or media training could be the solution."

John Whittingdale, for the Conservatives, said he failed to see why the BBC was not brought completely under the authority of Ofcom instead of leaving some issues to the BBC governors.

Tessa Jowell, the Secretary of State for Culture, Media and Sport, said the Bill had been improved. "The committee has made us look again to ensure that we will have sufficient safeguards in place to maintain the highest programme standards."

Lord Puttnam said he was delighted with the Government's response. A stronger Ofcom would alleviate many of the fears over allowing foreign ownership. But he remained concerned for the future ownership of Channel 5. "I would like more clarity."