- Author, James Gregory
- Role, BBC News
Prime Minister Sir Keir Starmer has ruled out any change to the way the BBC is funded until at least 2027.
“We are committed in our manifesto to the BBC and to the licensing system,” the Prime Minister said during his trip to Washington DC this week.
The BBC has faced real-terms budget cuts in recent years, including a two-year freeze on the licence fee, leading to cuts to services and programmes.
The Conservative government suggested in 2022 that it would abolish licence fees when its charter was renewed and move to a voluntary funding model.
But signalling his commitment to the existing model, Sir Keir said: “There will be some further reflection between now and then. [2027]but we are committed to the BBC and we are committed to the licensing agreements.
Among the programmes hit by recent cuts is BBC Two’s Newsnight, which was axed as part of efforts to find £500m in savings.
The licence fee was frozen at £159 for two years by Nadine Dorries when she was Culture Secretary in Boris Johnson’s government.
The Conservative government and the BBC agreed a six-year deal that included a two-year freeze, with annual increases to keep pace with inflation from 2024 to March 2028.
But the Conservatives decided in December not to go ahead with the deal, announcing a below-inflation rise of £10.50 a year to £169.50 from April 1.
BBC director-general Tim Davie announced in March that the corporation would explore ways to reform the licence fee.
The licence fee funds BBC services including television, radio, the BBC website, podcasts, iPlayer and apps.
Its existence is guaranteed until at least 31 December 2027 by the BBC’s Royal Charter, which defines its funding and purpose.
A BBC spokesperson said: “We remain fully focused on delivering value to audiences and will engage with government on funding at the appropriate time.”
