UK Culture Secretary Lisa Nandy is reportedly considering scrapping the BBC licence fee at the end of the Corporation's current charter in December 2027.
Nandy is said to believe the BBC’s current funding model is not “financially sustainable” and wants to find an alternative.
According to The Sunday Times, Nandy is exploring alternative funding options including paying for the BBC through general taxation. At the same time, The Sunday Times said that Nandy wants to turn the BBC into a mutual organisation to give direct control and ownership to the public. The paper said that Nandy believes turning the BBC into a mutual will help make it “future-proof.”
The government has said that the process of reviewing the licence fee will begin this year ahead of charter renewal in 2027.
“Lisa does not believe that the licence fee is financially sustainable,” a Whitehall source told the paper. “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.”
The licence fee raises about £3.74bn a year. Last year’s BBC annual report showed a 500,000 drop in the number of licence fee payers. The rise of streaming services such as Netflix, Disney+ and Prime Video has thrown major questions marks over the future sustainability of the licence fee.
The Sunday Times said that Nandy had not discussed the idea of funding the BBC through general taxation with the chancellor, Rachel Reeves, who would be highly unlikely to support a move that would increase the tax burden.
A government source told the paper: “Funding the BBC through general taxation is not a realistic possibility, and is not being seriously considered.”
You are not signed in
Only registered users can comment on this article.
Visual effects studio The Mill returns
Visual effects firm The Mill is back up and running following its April 2025 acquisition by global translation giant TransPerfect.
Netflix hires bank to explore Warner Bros Discovery bid
Netflix is reportedly exploring a bid for the studio and streaming divisions of Warner Bros Discovery and has hired an investment bank to weigh up an offer.
UK MPs call on Chancellor to introduce tax relief for film promotion
The UK’s Culture, Media and Sport Committee has called on the Chancellor Rachel Reeves to use next month’s budget to bring forward tax relief to support the distribution and exhibition of independent British films.
UK government to ‘demystify’ creative jobs for young people
The UK’s Department for Culture, Media and Sport (DCMS) has launched a campaign to increase the awareness and uptake of creative careers among young people aged 13-17 years old.
Disney pulls channels from YouTube TV
An estimated 10 million YouTube TV subscribers have lost access to Disney-owned channels after contract-renewal talks collapsed.


.jpg)
