Culture Secretary Lisa Nandy has said the BBC licence fee is not finished, ruling out direct taxation as a replacement, while options including a broadband levy are being considered. The update comes as the number of TV licences in force across the UK fell to 23.3 million, a year-on-year drop of 539,000.
Nandy responds to licence fee question
Speaking on BBC News, Ms Nandy was asked: "Is the license fee finished?" She responded: "No, I don't think the license fee is finished, but we are looking at a number of options through the charter. It is our firm intention to put the BBC on a sustainable financial footing and it hasn't been for over a decade."
When reminded that the director general had described it as a busted flush, she replied: "Well, the director general is in a difficult position and I have real sympathy with him. He came into an organisation that has had to deal with a decade of falling revenues, partly because of changing viewing habits, fewer people paying the licence fee, but also because of successive government decisions, whether it's to freeze the licence fee or to load additional responsibilities onto the BBC."
She continued: "And I think he's right to say that you cannot expect the BBC to be able to do everything on a limited budget. However, there are certain things about the BBC that are absolutely essential to the life of this country. Whether it's regional programming, children's programming, or news content, the BBC is one of the most trusted outlets in the world. And for us as a government, whilst we will work with the BBC to put it on a firm financial footing through this charter, those services for us are non-negotiable, they're provided to people in this country as of right. Uh and we're working with the BBC leadership on that basis."
Broadband levy proposal considered
The Social Market Foundation has proposed scrapping the current £180-a-year licence fee in favour of an £11 monthly broadband levy, which would total roughly £132 per year. This would be less expensive for existing licence holders but would require non-viewers and households with internet access to pay.
Ms Nandy was asked whether individuals who claim they don't use the BBC will be told they must still pay, and whether funding could be attached to internet broadband subscriptions. She said: "We're looking at a number of options. The only thing we've ruled out is direct taxation, partly because of the cost-of-living pressures, but mostly because we are very concerned to safeguard the BBC's independence. You rightly challenge me and scrutinise other government ministers and me on this program, and we think direct taxation would interfere with that."
Presenter Roger Johnson asked: "Will the internet companies accept you saying to Virgin Media or Sky, you're going to have to put an extra 11 on your monthly subscription to pay for something that in Sky's case is a competitive." Ms Nandy replied: "Well, look, that's not an option that we've floated in the media. That's something that I think the Social Market Foundation has recommended. We're looking at a number of options. The minute that I start ruling one out, people will will suspect that there's a master plan for others. The truth is, if it were easy to do this in a cost-of-living crisis, another government would have done it earlier. But we are determined to put the BBC on a sustainable financial footing in the fairest way we can."
Job cuts and union warning
The National Union of Journalists (NUJ) cautioned earlier this week that the BBC risks becoming caught in an "inescapable doom spiral" should it proceed with additional job losses. In June, the broadcaster announced plans to cut up to 2,000 roles as part of measures to achieve £500 million in savings over two years.
Amongst the cuts, 550 posts will come from BBC News and television and radio-related roles, with director-general Matt Brittin stating he expected this would generate £160 million in cost reductions. This week, it has emerged that the corporation will cut 41 roles within its sports department, which it maintains is about "reducing duplication" and "simplifying operations".
Laura Davison, NUJ general secretary, said: "The BBC's ongoing campaign of cuts is devastating and demoralising for our members and severely undermines the broadcaster's ability to serve audiences across the UK. The latest wave of cuts piles on the misery already being felt."
"Our members deserve better. Previous rounds of cuts have resulted in unmanageable workloads, low morale, loss of staff, and fewer opportunities for freelancers or career progression. Another round of cuts will add to that burden and stress."
"Audiences deserve better too. Millions of people across the UK now live in news deserts. We have already had major cuts to Local BBC Radio in recent years."
"Instead of cutting staffing and services to the bone, management should be focusing on securing positive reforms that guarantee a bright future for our public broadcaster."
