Lisa Nandy denies tax funding to BBC

The Culture Secretary has said that the BBC will no longer be funded from general taxation if the TV license fee is abolished.

Lisa Nandy told BBC Breakfast that the license fee was “deeply regressive” and that she was thinking “quite radically and creatively” about alternatives.

However, they do not include using money from general taxes to finance the BBC, as this could leave the broadcaster open to interference from politicians who would have the money, he said.

Nandy did not rule out a subscription model for the BBC, but said there were “a whole range” of other possible options.

He said the government was “committed to overcoming this, and I think there is a real feeling in the public that the license fee was created for a different era”.

Nandy has begun talks with the BBC about funding the corporation after its current royal charter expires in 2027.

Charter prepared by the government, Sets out the rules and purposes of the BBC’s existence and usually lasts for about a decade.

The corporation currently receives most of its income from the license fee, which costs £169.50 per year.

Nandy said: “There are a whole range of options, and we haven’t committed to any of them. I think the one that has been speculated about is general taxation.”

However, this is “not something we are considering” because “it is important that we have free and fair broadcasting in this country that is able to hold the government to account”, she added.

“But there is no question in my mind that the license fee is not only inadequate, it is raising insufficient funds to support the BBC, it is also highly regressive.

“We have seen many women prosecuted in recent years for being unable to pay it, and it is a flat fee which means poorer people pay proportionately more than anyone else.

“It doesn’t help the BBC, it doesn’t help the Government, and it doesn’t help the people in this country, and so we make no apologies for saying we are considering all options, “And we are thinking quite fundamentally and creatively about how we future-proof our national broadcaster for many years to come.”

He added, “In other countries in Europe, they find different ways to raise money.

“For example, in France, they have imposed a fee on cinemas. I am not committed to any of these things at this stage.”

The BBC received £3.7 billion from the license fee in the last financial year, almost two-thirds of its total income.

However, the corporation has said that the increase in TV license costs below inflation “has reduced our income over several years and has placed severe pressure on our finances”.

Last year, director general Tim Davie said the broadcaster’s annual savings target would rise to £700m a year by 2028.

A BBC spokesperson said on Friday: “We want everyone to get value from the BBC, which is why we are focused on delivering what audiences want from us – trusted news, the best domestic stories and The moments that bring us together.

“The public cares about the BBC and, later this year, we will launch our biggest public engagement exercise ever to help drive and shape what audiences want from a universal and independent BBC in the future .

“We look forward to engaging with the Government on the next charter and securing the long-term future of the BBC.”

Nandy was speaking on Friday as she prepared to host a summit for 250 cultural businesses and leaders in Gateshead, promising a £60m package of government support for the creative industries.