Outgoing BBC director general Tim Davie has warned that the corporation faces 'profound jeopardy' unless it secures significant changes to its funding model. In an exclusive interview with the Guardian, Davie called on supporters to 'stand up and fight' for the BBC amid growing hostility from commercial and political critics.
Davie signalled support for reforming the licence fee, but rejected calls for advertising or subscription-based funding. 'If you go to advertising or subscription, you're no longer a universal service,' he said. He also opposed a hybrid system that would split funding by genre, arguing it would undermine public service broadcasting.
The BBC is exploring ways to make the licence fee more progressive, including a household levy collected through council tax. This would replace the current system of enforcement through home visits and allow lower payments for poorer households. However, it could remove the ability to opt out of paying.
Davie emphasised the need for governance reform to strengthen the BBC's independence, noting that a survey of 40 million people showed strong public support for an independent BBC. He also expressed concern that attacks on the BBC over editorial errors have been 'weaponised' by opponents.
Talks on the BBC's future royal charter and funding are beginning in earnest, with the current charter set to expire at the end of 2027. The licence fee has lost about one-third of its real value since 2010, and non-payment is rising. Davie warned that without reform, the BBC risks becoming irrelevant.
