The Scotsman

Dorries faces Cabinet battle over future of BBC funding

- By ADAM SHERWIN newsdeskts@scotsman.com

Nadine Dorries faces a Cabinet battle after signalling that the BBC licence fee will be ripped up and replaced with a new funding model after 2027.

Theukcultu­resecretar­ysaid the compulsory £159-a-year charge is completely outdated andintheco­mingmonths­ministers would be “looking very seriously about how we fund the BBC”.

The Government will set up a review to examine an alternativ­e funding model.

Decisions about a replacemen­t will be taken “well ahead” of the corporatio­n’s charter renewal at the end of 2027, she told The Spectator.

Ms Dorries said she was also considerin­g how media regulator Ofcom could “hold the BBC to account”.

Unveiling a Broadcasti­ng White Paper which promised to “usher in a new golden age for British TV and radio”, Ms Dorries restated her conviction that the fiveyear licence fee settlement she imposed on the BBC in January, which froze the charge for the first two years, will be the last.

Announcing a “review of the licence fee funding model ahead of the next Charter period,” the White Paper warned that, without any change, viewers would have to pay “significan­tly” more in the future, to cover the deficit left by the number of households now choosing not to pay for a licence – around one million have cancelled over two years.

Options for replacing the current system include linking the fee to council tax. Wealthier households would pay more, satisfying critics who say the fee is a “regressive” tax.

There could be a household levy, paid alongside other utilities bills. A solution favoured by former culture secretary John Whittingda­le is to fund the BBC’S core services from a Treasury grant, with viewers paying a Netflix-style subscripti­on “top-up” for entertainm­ent and sport.

But Ms Dorries faces Cabinet opposition over a radical licence fee overhaul. She walked back comments in January that the fee would be axed after resistance from colleagues.

Chancellor Rishi Sunak, Work and Pensions Secretary Therese Coffey and Foreign Secretary Liz Truss expressed concern over the lack of consultati­on preceding Ms Dorries’ statement.

Mr Sunak is likely to be wary of any funding of the BBC direct from the Treasury, which would also raise concerns over the broadcaste­r’s ability to be independen­t of government.

However, Ms Dorries has the backing of Downing Street and the Prime Minister’s policy

chief Andrew Griffith for replacing the licence fee.

Number 10 believes the charge is increasing­ly unsustaina­ble as more viewers migrate online, while Ms Dorries believes the corporatio­n is

too London-centric and dominated by “elitist” metropolit­an values.

With more people watching programmes on phones, tablets, games consoles and smart TVS and competitio­n for viewers

and advertisin­g revenue intensifyi­ng, radical change is needed to allow public service broadcaste­rs to compete, she said.

 ?? ?? 0 The return of Peaky Blinders was another ratings hit for the BBC iplayer
0 The return of Peaky Blinders was another ratings hit for the BBC iplayer

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