"BBC licence fee to be abolished in 2027 and funding frozen"
Posted: Sun Jan 16, 2022 9:13 pm
Government announcement will force broadcaster to make deep cuts to its programme budgets
The BBC will have to make deep cuts to its programme budgets after the government said the broadcaster’s funding would be frozen for the next two years, with the licence fee abolished completely in 2027.
The culture secretary, Nadine Dorries, is expected to confirm that the cost of an annual licence, required to watch live television and access iPlayer services, will remain at £159 until 2024 before rising slightly for the following three years.
She said this would be the end of the current licence fee funding model for the BBC, raising doubts about the long-term financial future and editorial independence of the public service broadcaster under a Conservative government.
Dorries said: “This licence fee announcement will be the last. The days of the elderly being threatened with prison sentences and bailiffs knocking on doors are over. Time now to discuss and debate new ways of funding, supporting and selling great British content.”
The decision, confirmed by government sources, was briefed to the media as part of a range of measures designed to shore up public support for Boris Johnson after he has faced calls to resign as prime minister.
The BBC will have to negotiate with the government over an entirely new funding model when the final licence fee funding deal expires in 2027 – with potential options including a subscription service, part-privatisation, or direct government funding.
The new licence fee deal will cover a five-year period to 2027, with the cost to the public likely to rise in the final three years – although this increase could also be at a below-inflation rate, meaning further cuts to BBC output could be required.
Dorries’ allies said there would be no further licence fee deal under a Johnson government and they would start negotiations on an entirely new funding model for the corporation. The BBC’s existence and ability to raise money is underpinned by a royal charter that expires at the end of 2027.