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BBC Boss Backs Progressive Licence Fee Reform Ahead of Charter Review

He says a more progressive licence fee is essential to reverse a decade of funding cuts.

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Overview

  • Tim Davie told the Media and Telecoms 2025 conference that he supports overhauling the licence fee to make it more progressive and secure universal funding for the BBC.
  • He criticised a decade of “begrudging, grinding cuts” for leaving the broadcaster underfunded and undermining its ability to invest in content and services.
  • Culture Secretary Lisa Nandy announced the BBC Charter review will launch later this year and that a creative industries sector plan will be published this month.
  • The licence fee was raised to £174.50 in April 2025 and will increase with inflation until 2027 following a 30% drop in real-terms revenue since 2010 and the loss of half a million payers last year.
  • Facing stiff competition from streaming platforms such as Netflix and Disney+, the BBC is exploring funding reforms to sustain its public service remit.