Culture Secretary sets out plan for BBC financial sustainability

The government said it intends to use a review of the corporations Royal Charter to consider funding options to support its long-term future

By Matthew Corrigan

Published: November 29, 2024

The government said it intends to use a review of the corporation's Royal Charter to consider funding options to support its long-term future

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The Culture Secretary has issued an update into the government's review into BBC funding.

Lisa Nandy, Secretary of State for Culture, Media and Sport (DCMS), has set out plans for the government review into future funding of the corporation. In a statement to Parliament, Nandy recognised that the media landscape had changed significantly in recent years, highlighting changing consumer habits and the growth in competition from streaming services, both domestic and international.

With the BBC facing a 30 per cent decline in licence fee income, the government intends to use a review of the corporation's Royal Charter to consider funding options to support its long-term future. The review will include a public consultation aiming to safeguard services as viewer habits change. The government is committed to upholding the licence fee until 2027 the end of the current Charter period.

The licence fee will increase in line with inflation as required by the Licence Fee Settlement, 2022, with the annual cost of a colour TV licence rising by £5 to £174.50 in April 2025. The Simple Payment Plan (SPP) is to be extended, allowing an estimated additional 9,000 households to spread the cost of their fees. BBC analysis suggests the total number of households using the SPP could rise to around 500,000 by the end of 2027.

An additional £32.6 million has been announced for the BBC World Service in 2025-26, which the government said demonstrated the value it places on the World Service's role in providing news to its audience of 320 million across the globe.

Commenting on the announcement, the Culture Secretary said,

The BBC provides much-needed programming for households across the country, including children's education, world-class entertainment and trusted news for all people in all parts of the UK. I want to see it thrive for decades to come.

Through the Charter Review, we will have an honest national conversation about the broadcaster's long-term future, ensuring the BBC has a sustainable public funding model that supports its vital work but is also fair and responsive to those who pay for it.

In the short term, we are providing the BBC with funding certainty, while supporting thousands more households facing financial hardship to spread the cost of a TV licence.

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