Culture secretary rules out funding BBC from taxes
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The BBC will not be funded from general taxation if the TV licence fee is abolished, the culture secretary has said.
Lisa Nandy told BBC Breakfast the licence fee was âdeeply regressiveâ and that she was thinking âquite radically and creativelyâ about alternatives.
But they do not include using money from general taxes to fund the BBC, because that could open the broadcaster up to interference from politicians who would hold the purse strings, she said.
Nandy did not rule out a subscription model for the BBC, but said there were âa whole rangeâ of other possible options.
She said the government was âdetermined to grip this, and I think there is a genuine sense out there in the public that the licence fee was built for a different eraâ.
Nandy has started negotiations with the BBC about the corporationâs funding after its current royal charter expires in 2027.
The charter, drawn up by the government, sets out the terms and purposes of the BBCâs existence and normally lasts for about a decade.
The corporation currently gets most of its income from the licence fee, which costs ÂŁ169.50 a year.
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Nandy said: âThereâs a whole range of alternatives, and we havenât committed to any of them. I think the one that has been speculated about is general taxation.â
However, that is ânot something that weâre consideringâ because âitâs important that we have free and fair broadcasting in this country that is able to hold the government to accountâ, she continued.
âBut there is no question in my mind that the licence fee is not only insufficient, itâs raising insufficient money to support the BBC, but it also is deeply regressive.
âWeâve seen far too many women prosecuted over recent years for being unable to pay it, and itâs a flat fee that means that poorer people pay proportionately more than anybody else.
âThat doesnât help the BBC, it doesnât help the government, and it doesnât help people in this country, and so we make no apology for saying that weâre considering all options, and weâre thinking quite radically and creatively about how we future-proof our national broadcaster for many years to come.â
She added: âIn other countries in Europe, they find different ways of raising money.
âIn France, for example, they have a levy on cinemas. Iâm not committing to any of these things at this stage.â
The BBC received ÂŁ3.7bn from the licence fee in the last financial year, about two-thirds of its total income.
However, the corporation has said below-inflation rises in the cost of a TV licence âhave chipped away at our income over many years and have put serious pressure on our financesâ.
Last year, director general Tim Davie said the broadcasterâs annual savings target would rise to ÂŁ700m a year by 2028.
Nandy was speaking as she prepared to host a summit for 250 cultural businesses and leaders in Gateshead, promising a ÂŁ60m package of government support for the creative industries.