# The Community Radio (Amendment) Order 2015, Article 5: Amendment of the Community Radio Order 2004


(1) Paragraph 5(2) (which modifies section 105 of the Broadcasting Act 1990 by adding subsections (2) to (8) to that section as it has effect in relation to a community radio service) is amended as follows.
(2) In the subsection (3) added to that section—
(a) after “provide a community radio service,” insert “or where OFCOM is considering a variation of such a licence under section 86(5) to include conditions set out in subsection (5)”;
(b) in paragraph (a) after “in question” insert “(or, as the case may be, whether to vary the licence in question pursuant to section 86(5))”; and
(c) in paragraph (b) after “it is granted,” insert “(or, as the case may be, the terms of the variation of the licence in question pursuant to section 86(5)),”.
(3) For paragraph (b) of the subsection (4) added to that section substitute—
“(b) subject to paragraph (c), every licence to provide a community radio service that overlaps with any other licence, other than a community radio service, the potential audience of which includes no more than 150,000 persons who have attained the age of 15 years must contain such conditions as appear to OFCOM to be appropriate for ensuring that the relevant income for that community radio licence as is attributable to any arrangements for—
(i) the inclusion in that service of any remunerated advertisement, and
(ii) the sponsorship of any programmes included in that service,
does not, in any financial year of the licence holder, exceed £15,000;”.
(4) For paragraph (c) of the subsection (4) added to that section substitute—
“(c) every licence to provide—
(i) a community radio service that overlaps with any other local licence for a service, other than a community radio service, the potential audience of which includes no more than 150,000 persons who have attained the age of 15 years, where that local licence has at any time been varied pursuant to section 106(1A)(e), or
(ii) a community radio service, other than a service such as falls within paragraph (b),
must contain the conditions mentioned in subsection (5).”.
(5) For the subsection (5) added to that section substitute—
“(5) Subject to subsection (6), the conditions referred to in subsection (4)(c) are those that appear to OFCOM to be appropriate, in the case of the community radio licence in question, for—
(a) permitting the relevant income for that licence attributable to any arrangements for—
(i) the inclusion in the service provided under that licence of any remunerated advertisement, or
(ii) the sponsorship of any programmes included in that service,
to include the sum of £15,000 per financial year of the licence holder (“the fixed revenue allowance”); and
(b) ensuring that where the relevant income attributable to the arrangements set out in paragraph (a) exceeds the fixed revenue allowance in any financial year of the licence holder, any such relevant income in excess of the fixed revenue allowance does not exceed 50% of the total relevant income (disregarding the fixed revenue allowance) for that licence in that year.”
(6) After the subsection (5) added to that section insert—
“(5A) The Secretary of State may, from time to time, request OFCOM to review whether the £15,000 figure in subsections (4)(b) and (5) remains appropriate.”
(7) For subsection (6) added to that section substitute—
“(6) OFCOM may include conditions in a licence to provide community radio services falling within subsection (4)(c), which modify the percentage of the total relevant income referred to in subsection (5), if it appears necessary to secure the result that—
(a) the inclusion in any community radio service of remunerated advertising; or
(b) the sponsorship of programmes included in that service,
do not prejudice unduly the economic viability of any other local service (other than a community radio service).”

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Source: https://www.legislation.gov.uk/ukdsi/2015/9780111130681/article/5 (the official version)
Page: https://openlegislation.uk/draft-community-radio-amendment-order-2015/article-5
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.