"We need to think about an alternative method to fund the BBC" says former Culture Secretary
Maldon MP Sir John Whittingdale was the last culture secretary to renegotiate the BBC charter including the licence fee
An Essex MP and the former Culture Secretary says the government needs to think about an alternative form of funding the BBC.
Sir John Whittingdale was the last culture secretary to renegotiate the BBC charter including the licence fee.
The Maldon MP and Culture Secretary for the Conservatives from 2015 to 2016 tells Greatest Hits Radio it cannot be "sustained" for much longer:
"There's been a huge explosion in choice, which is great for viewers.
"But it means the number of people paying the license fee is falling and that is putting pressure on the BBC.
"The funding model itself cannot be sustained for much longer.
According to BBC figures, currently 80% of households pay the Licence Fee.
BBC Director-General, Tim Davie says "when it comes to funding we are not asking for the status quo."
"We want modernisation and reform. But in doing so we must safeguard universality.
Whittingdale has suggested, as an alternative method, a small tax for core services, and a voluntary subscription service for other services, like drama and entertainment.
"That is just one model but it is a debate that we need to be having now."
"It requires everyone to watch TV through the internet which will happen in the next 10 years.
Whittingdale adds: "I think the government recognises the need for change but hasn't come up with a suggestion of what they are going to do."
Whittingdale was most recently Minister of State for Media, Tourism and Creative Industries and Minister of State for Data and Digital Infrastructure from May to December 2023, during the maternity leave of Julia Lopez.
The BBC charter expires in 2027 and the government will review the current funding model later this year.
Tim Davie became Director-General of the BBC in September 2020:
"All the funding models that have been floated in the debate have their merits and drawbacks. But some such as advertising or subscription don’t pass the test of building a universal trusted public service.
"Beyond that, we keep an open mind. And we continue to actively explore all options that can make our funding model fairer, more modern, and more sustainable."
Analysis by consultancy company, PWC, suggests that, in a record first, Brits will spend more on streaming services than traditional TV packages in 2025.
The report indicates that spending on subscription video-on-demand (SVoD) services like Netflix and Disney+ will reach £4.2 billion, while spending on traditional TV subscriptions will be £4.1 billion.
A BBC spokesperson said: “The BBC is used by over 8 in 10 adults every week and offers excellent value at 48p per day.
“We are actively exploring all options that can make our funding model fairer, more modern, and more sustainable. But we’ve been clear that any reform must safeguard the BBC as a universal service."
We've contacted the Department for Culture, Media and Sport for comment.