Licence fee: Lisa Nandy rules out funding BBC from taxes


The UK’s Culture Secretary, Lisa Nandy, has ruled out the possibility of funding the BBC from general taxation if the TV licence is abolished. According to Nandy, she is thinking of “quite radical and creative” alternatives to the deeply regressive licence fee. However, she ruled out using money from general taxes to fund the broadcaster, fearing that such a move would open up the BBC to interference from politicians who could control the purse strings, leading to a lack of free and fair broadcasting that can hold the government to account.

While Nandy declined to rule out a subscription model for the BBC, she rejected suggestions of using general taxation to fund the broadcaster due to the possibility of compromising the principles of a free and fair press. The Culture secretary revealed she was in talks with the BBC about the corporation’s funding following the expiration of its royal charter in 2027. Nandy is determined to consider all options to ensure the BBC has a sustainable funding model for the future.

Last year, the BBC received £3.7bn from the licence fee, which represents about two-thirds of its total income, with the corporation admitting that below-inflation rises to the cost of the TV licence have contributed to the erosion of its finances over many years. Director-general Tim Davie has revealed that the broadcaster’s annual savings target would rise to £700m annually by 2028, signalling the desire for cost-cutting measures in the coming years.

While Nandy did not commit to a particular funding model for the BBC, she revealed that several alternatives were available, citing France as a good example of different approaches to raising money for public broadcasters. They have a levy on cinemas in the country. She reiterated the government’s commitment to ensure that the BBC has a sustainable funding model to future-proof it for many years to come.

Nandy’s statements came as she prepared to host a summit for 250 cultural businesses and leaders in Gateshead, promising a £60m package of government backing for the creative industries. A BBC spokesperson said they were focused on delivering what audiences want, adding that the public cared about the BBC, and they were looking forward to engaging with the UK government on the next charter

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