Licence payment: Lisa Nandy guidelines out funding BBC from taxes

The BBC is not going to be funded from normal taxation if the TV licence payment is abolished, the tradition secretary has mentioned.

Lisa Nandy advised BBC Breakfast the licence payment was “deeply regressive” and that she was pondering “fairly radically and creatively” about alternate options.

Nevertheless, they don’t embrace utilizing cash from normal taxes to fund the BBC, as a result of that would open up the broadcaster to interference from politicians who would maintain the purse strings, she mentioned.

Nandy didn’t rule out a subscription mannequin for the BBC, however mentioned there was “an entire vary” of different doable choices.

She mentioned the federal government was “decided to grip this, and I feel there’s a real sense on the market within the public that the licence payment was constructed for a special period”.

Nandy has began negotiations with the BBC concerning the company’s funding after its present royal constitution expires in 2027.

The constitution, drawn up by the federal government, units out the phrases and functions of the BBC’s existence and usually lasts for a couple of decade.

The company presently will get most of its revenue from the licence payment, which prices £169.50 a yr.

Nandy mentioned: “There’s an entire vary of alternate options, and we’ve not dedicated to any of them. I feel the one which has been speculated about is normal taxation.”

Nevertheless, that’s “not one thing that we’re contemplating” as a result of “it is essential that we’ve got free and truthful broadcasting on this nation that is ready to maintain the federal government to account”, she continued.

“However there is no such thing as a query in my thoughts that the licence payment shouldn’t be solely inadequate, it is elevating inadequate cash to assist the BBC, nevertheless it is also deeply regressive.

“We have seen far too many ladies prosecuted over current years for being unable to pay it, and it is a flat payment that implies that poorer individuals pay proportionately greater than anyone else.

“That does not assist the BBC, it would not assist the federal government, and it would not assist individuals on this nation, and so we make no apology for saying that we’re contemplating all choices, and we’re pondering fairly radically and creatively about how we future-proof our nationwide broadcaster for a few years to return.”

She added: “In different nations in Europe, they discover alternative ways of elevating cash.

“In France, for instance, they’ve a levy on cinemas. I am not committing to any of this stuff at this stage.”

In 2023, the BBC set out plans to cut back the excessive proportion of girls being prosecuted for licence payment evasion, after figures confirmed that they made up 76% of the 52,376 individuals convicted over it in 2020.

The BBC acquired £3.7bn from the licence payment within the final monetary yr, about two-thirds of its complete revenue.

Nevertheless, the company has mentioned below-inflation rises in the price of a TV licence “have chipped away at our revenue over a few years and have put severe stress on our funds”.

Final yr, director normal Tim Davie mentioned the broadcaster’s annual financial savings goal would rise to £700m a yr by 2028.

A BBC spokesperson mentioned on Friday: “We would like everybody to get worth from the BBC, which is why we’re centered on delivering what audiences need from us – trusted information, the very best homegrown storytelling and the moments that convey us collectively.

“The general public cares concerning the BBC and, later this yr, we are going to launch our biggest-ever public engagement train so audiences can assist drive and form what they need from a common and impartial BBC sooner or later.

“We sit up for participating with authorities on the subsequent constitution and securing the long-term way forward for the BBC.”

Nandy was talking on Friday as she ready to host a summit for 250 cultural companies and leaders in Gateshead, promising a £60m package deal of presidency assist for the inventive industries.