BBC licence fee to stay until 2038, say MPs

THE BBC’s licence fee is set to remain until at least 2038 because of Government failings in the rollout of broadband, MPs have suggested.

A parliamentary committee said ministers had left themselves with ‘no option’ of providing Netflix-style alternatives to the TV licence system in the near future.

MPs said the Government had failed to put in place the broadband infrastructure necessary for ‘other funding mechanisms’ for the BBC.

They found that as a result of Government delays to the rollout of full fibre broadband, a ‘wholly online public service broadcasting system’ for everyone ‘is not yet viable’. The report from the digital, culture, media and sport committee said unless the Government came up with a strong alternative to the licence fee, it should support the current model ‘for at least the next charter period’ between 2028 and 2038.

In doing so, it should ‘actively aid’ the corporation in driving down TV licence evasion. The committee said while future services would likely be delivered via the internet, the ‘present reality’ was a lack of access to broadband and a lack of digital literacy skills.

The report highlighted that a ‘significant number of households’ did not have access to a broadband connection that would let them watch online TV services. The report also ruled out other alternatives to the licence fee, such as a household fee, advertising or subscription.

Committee chairman Julian Knight said that while it was clear the TV licence had a limited shelf life in a digital media landscape, the Government had ‘missed the boat to reform it’. He added: ‘ Not only that, but the Government is effectively allowing the BBC to haemorrhage funds through non-payment of the licence fee.’

A BBC spokesman said: ‘ We welcome the conclusion that the licence fee is the best way of funding a universal BBC.’