BBC might be funded by taxes as a substitute of present licence charge to make it ‘public owned’
Culture Secretary Lisa Nandy is considering scrapping the annual charge at the end of the Beeb’s current charter in 2027, and funding it through taxes, according to sources
The BBC could be funded by taxes instead of the licence fee.
Culture Secretary Lisa Nandy is considering scrapping the annual charge at the end of the Beeb’s current charter in 2027, according to sources. She has reportedly floated the idea of instead funding the corporation through general tax revenue collected by the Government. It would make it entirely owned by the public who would have a say in how it was run. A Whitehall source said: “Lisa does not believe that the licence fee is financially sustainable.
“But she believes that our national broadcaster should be owned by the nation.
“The money would go in from taxes but citizens would own it and be involved in decisions about its strategic direction.’’
The Beeb faces a barrage of woes with licence fee income falling, younger viewers deserting it for YouTube, TikTok and the streaming giants, rocketing costs of making programmes and a catalogue of scandals involving presenters.
The Government is to review the BBC’s royal charter which sets out its role and how it should be governed.
Nandy has already held early talks with BBC director-general Tim Davie with public consultations to take place later this year.
In November the Government agreed to raise the current levy in line with inflation until 2027 meaning an annual colour licence will cost households £174.50 from April.
But Prime Minister Sir Keir Starmer is said to want a long-term solution.
Funding the Beeb via taxation would wipe out the cost of ensuring folk cough up and end prosecutions for non-payment.
Both Nandy and Justice Secretary Shabana Mahmood oppose non-payment remaining a crime particularly as women are disproportionately hit.
Around 73% of 34,000 prosecuted in 2023 were female.
But a YouGov poll found just 36% favour axing the licence fee for general taxation funding – with 49% against it.
Funding the BBC via subscriptions was backed by 41% per cent with 45% opposed.
