Director-general Tim Davie has announced the BBC will “proactively research how to reform the licence fee post-2028”.

By James Hibbs

Published: Tuesday, 26 March 2024 at 13:50 PM


The director-general of the BBC, Tim Davie, has confirmed that the broadcaster will be looking at alternative funding models to the licence fee in the future, as part of a wide-ranging speech on the organisation’s direction.

At an event hosted this morning (Tuesday 26th March) by the Royal Television Society at Savoy Hill House, Davie laid out three key missions for the BBC going forward: Pursue truth with no agenda, back British storytelling and bring people together.

Davie said that these missions came from a need to “transform ourselves again to increase relevance in a time of limitless choice and interactivity”, although he was quick to praise the broadcaster’s achievements of late.

These included references to shows such as Happy Valley, Blue Lights, Planet Earth III and The Traitors, as well as noting record profits for BBC Studios and the growth of iPlayer and BBC Sounds.

Sarah Lancashire as Catherine Cawood in Happy Valley, wearing police uniform and looking into the distance
Sarah Lancashire as Catherine Cawood in Happy Valley.
Credit: BBC/Lookout Point/Matt Squire

However, towards the end of the speech he went on to address “the obvious elephant in the room – which is the money”, calling the government’s decision to “strip money from the BBC during this period”, as part of a “30 per cent cut in real terms between 2010 and 2020”, “short-sighted”.

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After noting the need to utilise commercial partners “much more actively”, such as with the recent Doctor Who deal with Disney, Davie addressed the future of the licence fee directly.

He said: “There is no doubt that the market has changed hugely since the licence fee was introduced. And I think it is right to ask fundamental questions about its longevity in a world that is now full of choice.

“But we should be appropriately cautious about unpicking a multi-genre BBC that leads the market rather than is simply about market failure.”

Davie added: “We are not defensive about the future. We will need reform. With that in mind, we will proactively research how to reform the licence fee post-2028 – looking at its scope, how it could be more progressive, and making sure its enforcement is fair and proportionate.

“Of course, as part of this, we will engage with the work being done by the government to review BBC funding. But, as ever, our most important relationship is with our owners, the UK public.

“So, starting next year, and well ahead of the new Charter, we will open up our biggest-ever consultation process so that the public can inform and drive the debate on the future BBC.

“Our aim is to make contact and get feedback from hundreds of thousands of people, and we do so with an open mind.”

In December, culture secretary Lucy Frazer announced that the licence fee will increase by £10.50 per year from April, having been frozen for two years. This means the fee will increase by 6.7 per cent, from £159 to £169.50.

At the time, Frazer said: “This is a fair deal that provides value for money for the licence fee payer while also ensuring that the BBC can continue to produce world leading content.”