Lisa Nandy, the Culture Secretary, has indicated that Labour is considering a ‘mixed funding’ model for the BBC as the government looks for ways to replace the unpopular licence fee.

Speaking during a fringe event at the Labour Party conference in Liverpool, Nandy said she was looking at a “whole range of options” to replace the broadcaster’s licence fee, including a “mixture of licence fee, commercial funding and some subscription services”.

“The only thing we’ve ruled out is general taxation,” she added. “If you had a grant from 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.”

The licence fee raises some £3.7 billion (€3.1bn) per year which is 65 per cent of the BBC’s funding. The other 35 per cent comes from commercial activities, grants, royalties and rental income. However, the number of homes evading the licence fee has risen to more than 10 per cent, with payers falling by 300,000 in 2024.

The current cost of the licence fee is £174.50. It is set to increase annually in line with inflation until 2027 as per the terms set out in a 2022 agreement.

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Categories: Articles, Broadcast, Business, Funding

Tags: BBC, Labour, Licence fee, Lisa Nandy