Half a million households cancelled the BBC licence fee last year, figures show. The total number of households paying the £169.50 licence fee fell to 23.9 million, the Guardian newspaper reports, “suggesting a growing number of people feel able to go without BBC services.”
The director general, Tim Davie, said he welcomed the new government’s “broad support of universal, public service broadcasting” but said the BBC faced “considerable financial and market challenges”. He said further job cuts would be on the cards.
He said: “What’s under way is a massive transfer of skills and resources from linear to digital.” The BBC chair, Samir Shah, said the financial challenge was stark and went on to add today: “Over the last 10 years we’ve lost 30% of our income.”
Prime Minister Sir Keir Starmer has ruled out changes to how the BBC is funded until at least 2027. “We are committed in our manifesto to the BBC and to the licensing scheme,” the prime minister said during his trip to Washington DC this week.
The BBC has faced real terms cuts in recent years, including a two-year freeze on the licence fee, leading to cuts to services and programmes. But signalling his commitment to the existing model, Sir Keir said: “There’s going to be some more thought between now and [2027], but we are committed to the BBC and we are committed to the licensing arrangements.”
Mr Davie announced back in March that the corporation would explore how to reform the licence fee. The licence fee pays for BBC services including TV, radio, the BBC website, podcasts, iPlayer and apps and its existence is guaranteed until at least 31 December 2027 by the BBC’s royal charter.
A spokesperson for the BBC said: “We remain totally focused on offering value to the public and will engage with the government on funding at the appropriate time.”
