Lucy Frazer Suggests Alternative Funding Model
The Culture Secretary, Lucy Frazer, has announced a review into the sustainability of the BBC licence fee. This comes after the recent news that the fee will rise by just over £10 next year, instead of the expected £15 increase. Frazer has suggested that the licence fee could be replaced by an alternative funding model to ensure fairness, long-term sustainability, and support for the BBC's role in the creative industries.
Increase in Commercial Revenues to Reduce Burden on Licence Fee-Payers
Frazer's review will also consider how the BBC can increase its commercial revenues in order to lessen the financial burden on licence fee-payers. She specifically ruled out the possibility of creating any new taxes, citing the pressure on household incomes.
Tory MPs Call for Licence Fee to be Scrapped
Some Conservative MPs are advocating for the complete scrapping of the licence fee by the time the next charter is renewed in 2027. Tory former minister Dame Andrea Jenkyns expressed her opposition to the licence fee rise on social media, suggesting that the BBC should be defunded instead. Tory MP James Sunderland welcomed the review and emphasized the importance of providing value for money to the public.
Department for Culture to Lead Review
The Department for Culture, Media and Sport will lead the review, and its findings are expected to be released next autumn. Alternatives to the licence fee, such as a broadband levy, advertising, or a subscription model, will be considered during the charter review, where the final decision on how the BBC is funded will be made.
