BBC TV licence update as Labour responds to calls for replacement
The Government is not considering general taxation as a replacement for the BBC TV licence fee. Culture Secretary Lisa 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'.
Ministers are considering a' whole range of alternatives'. But they have not 'committed to any of them', she said.
Ms Nandy told the BBC: "I think the one that 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."
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She said a subscription model was one of the options, Express reports. Ms Nandy said: "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 TV licence fee is currently £169.50 a year but is set to rise to £174.50 in April. The funds generated by the fee support BBC programmes and services.
Anyone who watches live TV or streams BBC iPlayer must pay the annual cost. In 2023, the BBC's total income from the licence fee was £3.74billion - making up about 65 per cent of the BBC's total income.
The BBC says the rest of its income comes from commercial and activities, including grants, royalties and rental income. In return for the licence fee money, the BBC is obligated to deliver public service broadcasting.
But, it has faced longstanding criticism. The licence fee was first introduced in 1946 when the BBC was the only broadcaster in the UK.
It now faces competition from advertising-funded TV channels, online content, and streaming platforms like YouTube and Netflix. Critics also argue the flat-rate payment is unfair, forcing households with the lowest incomes to pay the same amount as the wealthiest.
Several petitions have been launched over the years by campaigners who describe the system as 'outdated' and 'unwanted'. Some claim the fee can 'push people into debt'.
Households that fail to pay the licence fee can receive an enforcement letter from TV Licensing - which is responsible for collecting the payment. The letter warns that failure to pay may result in a fine.
In the UK, anyone found streaming a programme live without a licence could face a fine of up to £1,000. In Guernsey, the fine could be as much as £2,000, and up to £500 in Jersey.
The BBC argues the licence fee allows it to 'remain independent and distanced from Government initiatives, campaigners, charities and their agendas, no matter how apparently worthy the cause or how much their message appears to be accepted or uncontroversial'. Viewers can also enjoy advert-free TV as the licence fee income means the broadcaster does not have to rely on third-party commercial advertising to raise revenue.
The BBC has been under increasing financial pressure. Last year, a raft of planned changes were revealed which included getting rid of in-depth interview show Hardtal and reducing more than 100 news roles.
It has projected its total deficit will increase to £492million for the 2024/25 financial year. The Government said it will review the BBC's Royal Charter.
This will include a public consultation to consider funding options to support the BBC's long-term future. But the TV licence is still guaranteed until December 31, 2027.