This report focuses on a range of issues relating to the BBC Charter, including the current bid for the TV licence fee, the link to the retail price index, and the need for transparency in the licence fee negotiations; the costs of digital switchover and spectrum charging; the BBC World Service and the launch of an Arabic language television channel; the 'Out of London' strategy for more regional broadcasting and the proposal to move several BBC departments to Manchester; sports broadcasting and the regulation of listed events; religious programming and the BBC's public service remit. The Committee supports the continuation of the licence fee, although concerns are raised that the annual cost increases above the rate of inflation may threaten to undermine public support for the BBC in the long term. However, it opposes the link between the retail price index and the licence fee, since it gives the BBC less incentive to make economies and efficiency gains, and instead argues that Parliament, rather than Government, should set the level of the licence fee, with the National Audit Office having scope to scrutinise the licence fee bid and publish its findings. The Committee's first report on the BBC Charter (HCP 50-I, session 2005-06, ISBN 0104007508), published in November 2005, focused on the Government's proposals for the future of the BBC, as set out in the Government's Green Paper ("A strong BBC, independent of government" published by the DCMS in March 2005 for consultation).