Culture Secretary Lisa Nandy has said the BBC licence fee is not finished but has ruled out direct taxation as a funding option. The statement came after she was asked on BBC News whether the licence fee was “finished”.
Ms Nandy replied: “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.”
There are 23.3 million TV licences in force across the UK, marking a year-on-year drop of 539,000 active licences. The BBC Director General has also cast doubt on the future of the licence, describing it as a “busted flush”.
Funding options considered
The Social Market Foundation has suggested replacing the current £180-a-year licence fee with an £11 monthly broadband charge, which would cost about £132 a year. This would be cheaper for current licence payers but would force non-viewers and households with internet access to pay.
Ms Nandy 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.
Asked about the broadband subscription idea, she said: “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 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.”
BBC cuts and union warning
The National Union of Journalists (NUJ) this week warned the BBC risks becoming trapped in an “inescapable doom spiral” if it continues to cut more jobs. In June, the corporation announced its intention to axe up to 2,000 roles in an attempt to make £500 million in savings over two years.
Among the cuts, 550 will be from BBC News and TV and radio-related roles, which director-general Matt Brittin said he hoped would make £160 million in cost savings. This week, it emerged that the broadcaster will cut 41 roles within its sports department, which it says 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.”
