UK Government to Block 9% BBC Licence Fee Increase Amid Cost of Living Crisis

The decision is expected to exacerbate the BBC's financial troubles, with the broadcaster already facing a £400m shortfall and making significant cuts to its services.

The UK government is set to block a 9% increase in the BBC licence fee, which would have been the largest single increase in nearly 40 years, due to concerns over the cost of living crisis.
The decision is expected to exacerbate the BBC's financial troubles, which already include a £400m shortfall due to a two-year freeze on the licence fee.
The BBC has already begun making cuts to its services, including scaling back its flagship current affairs show Newsnight, in an effort to save around £200m annually by 2027.
The government is currently reviewing the BBC's funding model and is considering alternatives to the licence fee when the BBC's current Royal Charter ends in 2027.
The BBC lost 500,000 licence fee payers last year, highlighting the challenges it faces in a shifting media landscape as streaming channels become more popular.