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'BBC licence fee to be scrapped by 2027' as Labour plans to replace it with 'new tax'

by DD Staff

January 12, 2025

Lisa Nandy

key takeaways

Since Labour officials intend to replace the BBC license fee with a general tax, the fee may be eliminated.

Lisa Nandy, the culture secretary, is considering doing away with the fee in December 2027 in favor of a system in which the government collects taxes to fund television shows.

Turning the firm into a mutual organization owned by the public is reportedly one of the new plans.

Following Nandy's earlier pledge to have a "honest national conversation about the broadcaster's long-term future," several possible solutions have been proposed.

While finalised decisions have not been reached as of yet, Whitehall sources have indicated that the minister believes the licence fee must be scrapped.

One source told the Sunday Times: “Lisa does not believe that the licence fee is financially sustainable.

“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 proposal of the corporation’s renewal comes as the BBC faces a number of challenges, stretching from plummeting income for the license fee as younger audiences opt for social media platforms, including YouTube and TikTok.

Additionally, scandals involving their presenters, such as Huw Edwards, have damaged the BBC’s reputation in recent years.

Reports last night have suggested that Nandy had briefed the PM on her draft plans, while Starmer is eager to solve the long-lasting issue regarding how to pay for BBC shows.

The Whitehall source added: “People have been saying for more than a decade now that the licence fee is an anachronism. But then they keep going back to it.

“Keir is prepared to think more radically.”

Labour’s review of the corporation’s charter will launch this year, with Nandy and BBC’s director general already kickstarting “embryonic talks” at the end of 2024.

Previously, a BBC spokesman said: “We want everyone to get value from the licence fee and we are committed to delivering trusted news, the best homegrown storytelling and those special moments that bring us together.”

It has gone further and promised to run its “biggest-ever public engagement exercise” in 2025 to gain more information on how to approach its future.