General taxation not considered to replace BBC licence fee – Culture Secretary

The government plans to use general taxation to update the BBC license fee, Culture Secretary Lisa Nandy has said.

The BBC licence fee, which the Government has committed to increasing in line with inflation each year until 2027, is to rise to £174.50 in April.

The broadcaster has struggled with liquidity in the years following a two-year freeze on license fees at £159, before they were raised at a slower rate than the company expected and emerging inflation .

The last rise in the household payment, which funds much of the BBC’s operations, saw a £10.50 increase, which brought the charge to £169.50 in April 2024.

Ms Nandy told BBC Breakfast that the licence fee was “not only insufficient, it’s raising insufficient money to support the BBC, but it also is deeply regressive”.

“We have seen that in recent years too many women have been prosecuted because they could not pay, and it is a lump sum, meaning that the other poorest people pay proportionately more than everyone else. who else,” he also said.

“I don’t think that’s the case for the BBC, or for the government, or for the rest of the people in this country. “

He also said there was “a complete diversity of alternatives” across ministers, but added: “We have not committed to any of them. ”

The government will use a review of the BBC’s Royal Charter, which will be accompanied by a public consultation, to invest in features that help the broadcaster’s long-term future.

Ms Nandy said she has “already started initial discussions with the BBC leadership about the charter review”, that she hopes will “future proof our national broadcaster until well into the latter half of this century”.

And he added: “What has been speculated about is general taxation.

“That’s not something that we are considering, not least because we want to make sure that we protect the BBC from the sort of political interference that we saw under the last government.”

The government has deserted a review of the BBC’s investment model, as well as its skilled panel, in the past set up under the Conservative administration.

Ms Nandy acknowledged that a subscription model was among the options which were left after ruling out general taxation, but added: “It also leaves a whole range of options which the Culture, Media and Sport Select Committee has been exploring over recent years.

“In other countries in Europe, they find different ways of raising money.

“In France, for example, they have a levy on cinemas. I’m not committing to any of these things at this stage.”

The BBC is under increasing monetary pressure and last year revealed a series of planned changes, including the axing of in-depth talk show Hardtalk, as it plans to cut more than a hundred media roles.

It forecasts that its overall deficit will rise to £492 million by the 2024/25 monetary year.

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