BBC Faces Historic Overhaul as Funding Model Comes Under Review

Culture Secretary Lisa Nandy proposes abolishing the licence fee, exploring taxation and mutualisation to secure the BBC’s future.

Lisa Nandy, the UK culture secretary, is considering replacing the BBC's licence fee with funding through general taxation, alongside mutualisation to give citizens ownership and input in the broadcaster's direction.
The BBC's current funding model is increasingly viewed as outdated, with declining licence fee revenues and younger audiences shifting to streaming platforms like Netflix and YouTube.
Alternative funding models being discussed include subscriptions, government funding for specific services like the World Service, and a hybrid approach combining core public funding with optional commercial offerings.
Critics argue that funding through taxation could face political resistance, while subscription models risk excluding lower-income households and undermining the BBC's universal accessibility.
The BBC's charter renewal process, set to conclude by 2027, will determine its long-term funding and governance, with public consultations and government white papers expected in the coming years.