The BBC's preferred licence fee settlement will put thousands of jobs in commercial radio at risk, a report has warned.
The study, commissioned by the Commercial Radio Companies Association (CRCA), says many commercial stations could close over the next ten to 15 years as a result of the settlement.
It calls on the BBC to cap spending on radio services.
The BBC wants to increase the licence fee by 2.3 per cent above inflation each year, but the final decision will be made by the Government.
CRCA Chairman David Elstein said: "Uncapped BBC spending on radio will ultimately cost not just the commercial radio industry but also, through a reduction in choice of valuable public services, listeners and the communities in which they live. Moreover, BBC plans for radio could lead to the loss of thousands of jobs and stymie the training and development of the next Chris Moyles or Huw Edwards."
A spokesman for the CRCA said it was hard to assess the potential impact of the plans on the Midlands - but he said jobs may be at risk.
He said: "The impact depends what road the BBC goes down and how many operations it launches.
"Plainly the smaller stations could be those most affected, and if a plethora of stations was launched into the markets already served in commercial areas, then there would be a potential impact on larger stations too." The CRCA claims the launch of stations like BBC1Xtra and Radio 7 were unnecessary.
