The BBC could soon slap adverts on your screens or hike charges for the well-off as it battles a sharp fall in licence fee payers. Culture Secretary Lisa Nandy is set to reveal a crackdown plan next week to plug a £1.4 billion funding gap.
Licence Fee Payers Drop as Funding Hole Widens
Licence fee households have plunged from 25.2 million in 2020 to just 23.8 million this year. This dive has put huge strain on the BBC’s £3.8 billion annual revenue. The current fee sits at £174.50 but might edge close to £200 before the decade is out, thanks to inflation.
Adverts and Subscriptions: The New Money Makers?
Government options include advertising, subscription services, and charging more from high earners. Ministers want the BBC to boost international sales and rely less on the licence fee. But direct funding from general taxation is off the table. Lisa Nandy said:
“The only thing we’ve ruled out is general taxation. If you had a grant from the Government each year, it would be far too easy for politicians to pull that funding and use it as a stick to beat the BBC with. It’s essential we protect the BBC from that.”
BBC Braced for Battle Over Funding Changes
The BBC is expected to fight back hard against both ads and subscriptions. There are fears adverts could hit rivals ITV and Channel 4. BBC Studios alone pulls in £2.2 billion revenue.
A BBC spokesperson added:
“The Government’s consultation will give the public and the industry an opportunity to have their say on the future of the BBC and shape the UK’s media landscape for the next decade and beyond.”
The consultation will run for 12 weeks before a white paper shapes the next BBC charter, which expires at the end of 2026. This announcement kicks off tense negotiations amid internal BBC turmoil sparked by controversy over a doctored Donald Trump speech — a scandal that led to the exit of director-general Tim Davie and news chief Deborah Turness.
As Netflix and others gobble up viewers, the BBC’s funding survival hangs in the balance. Watch this space for more updates.
