BBC boss open to ‘more progressive’ licence fee amid consultation plans
BBC director-general Tim Davie has said he is open to a “more progressive” licence fee and revealed the corporation will launch its “biggest-ever consultation process” next year so the public can drive the debate on its future.
The licence fee has been frozen for two years at £159 but in 2023 the Government announced it would use a lower rate of inflation to increase the household charge from April to £169.50 a year.
The freeze and rising inflation has driven the broadcaster to reassess its priorities as it seeks to make £500 million of savings, with Mr Davie announcing yesterday that a further £200m of savings will need to be made.
Speaking at a Royal Television Society (RTS) event in London to discuss the future direction of the BBC and its role for the UK, Mr Davie said the broadcaster is planning to “proactively research” how it will reform the licence fee post 2028, after the current charter agreement ends in December 2027.
In a speech, he said: “There is no doubt that the market has changed hugely since the licence fee was introduced and I think it is right to ask fundamental questions about its longevity in a world that is now full of choice… We should not create another commercial walled garden or a narrow BBC that provides a niche service for the most hardcore users. The very wonder of the BBC is that quality news sits next to genres such as drama and sport, thus ensuring widespread engagement. This is a precious ecosystem.”
He added that the corporation is “not defensive about the future” and believes it “will need reform”.
Mr Davie said that when researching how the broadcaster could reapproach the licence fee it will be “looking at its scope, how it could be more progressive and making sure its enforcement is fair and proportionate”.
Alongside engagement with the Government’s review into the licence fee, he said that starting next year the BBC will open up its “biggest ever consultation process so the public can inform and drive the debate on the future of BBC”.
“Our aim is to make contact and get feedback from hundreds of thousands of people and we do so with an open mind”, he added.
Later answering questions on the future of the licence fee, Mr Davie underlined that he feels it “needs reform” but regards it as “precious”.
The BBC boss noted that those over age 74 who receive Pension Credit are entitled to apply for a free licence and said he is open to considering who else could receive concessions.
He added: “That doesn’t necessarily imply means testing, there could be a number of ways you could make it progressive.
“I just think the idea we're just sitting where we're at is the wrong one.”
However, he confirmed he believes a licence fee should be still in place in some capacity as he feels it is important that everyone has a “stake” in it.
“We are curiously really accountable to the British public for that value. And I think that connection is really important and it keeps BBC on its toes.”