BBC TV licence fee: Labour ‘considers’ radical BBC funding shake-up - what is Lisa Nandy's plan?

• Culture Secretary Lisa Nandy is ‘considering’ ending TV licence fee, according to reports.
• It could be replaced by a ‘new tax’.
• The current BBC royal charter is up at the end of 2027.

A radical reform of the way that the BBC is funded could be on the way. The public broadcaster’s current royal charter runs out at the end of 2027 - and discussions are underway for the future of the Beeb.

Culture Secretary Lisa Nandy is reportedly considering ‘scrapping’ the licence fee when the charter is renewed. It has previously been reported that she is also planning to end prosecutions for licence fee avoidance.

The Government has confirmed a further price rise for the licence fee this year. The cost will jump up in April 2025 - find out more here.

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Government ‘consider’ scrapping BBC licence fee

The BBC’s funding is laid out as part of its royal charter - with the licence fee dating back to the 20th century. The current agreement comes to an end in December 2027 and discussions for the future are already underway.

The Daily Mail reports that among the plans being considered by the Culture Secretary, Lisa Nandy, is the hotly-debated licence fee. It reports that the TV licence could be scrapped post 2027.

Ms Nandy is said to “be minded to abolish the annual fee”. It would be one of the biggest shake-ups to the BBC over its 100 years of existence.

The licence fee is due to go up in April 2025 - with a rise of £5 having been confirmed, taking the payment to £174.50 annually for Brits. It is also expected that the cost of the TV licence will go up in 2026 and 2027.

How would the BBC be funded if the licence fee is scrapped?

The Daily Mail reports that one source said: “Lisa does not believe that the licence fee is financially sustainable. But she believes that our national broadcaster should be owned by the nation.

“The money would go in from taxes but citizens would own it and be involved in decisions about its strategic direction.”

It would mean that the BBC would be funded by tax, instead of a direct licence fee that TV watchers have to pay annually.

What do you think of the licence fee potentially being scrapped? Let me know by email: [email protected].