Politics & Current Affairs

The Reshaping of the BBC: Culture Secretary Freezes Licence Fee

10 February 202210 February 2022By
The Reshaping of the BBC: Culture Secretary Freezes Licence Fee

Minister for Culture, Nadine Dorries, has announced changes to BBC funding where the broadcaster may face losses of £285 million by 2027.

On 16 January, Ms Dorries turned to Twitter to announce her plans for the TV licence fee. This is a tax that all consumers of live television in the UK must pay, costing households £159 per year.

Ms. Dorries outlined her plans to freeze the tax for the next two years so that it will not rise in line with inflation. Following this period, the price will be adjusted according to inflation for four years. After these six years are up, the funding will be re-evaluated altogether, and potentially scrapped.

Tim Davie, the Director-General of the BBC, expressed his disappointment at the plans. He explained that with less funding, there will inevitably be fewer services. Despite this, he stressed: “I still think the BBC can offer extraordinary value for £13 a month.”

When Nadine Dorries addressed the Commons, she justified the new changes by evoking the rising cost of living, which could be alleviated by freezing the licence fee. She said: “We simply could not justify putting extra pressure on the wallets of hard working households.”

She added that the BBC is part of a changing media landscape, and it must therefore revolutionise its practises. In the age of subscription services such as Netflix and Prime Video, she argued that the BBC’s model is no longer viable.

The culture secretary also criticised the criminalisation of those who fail to pay the tax. Under the existing system, bailiffs have the power to visit offending households to demand payment. Ms Dorries argued that this is not a fair way to treat the financially vulnerable.

Calvin Robinson, a political commentator and journalist, told me why he supports scrapping the licence fee: “It’s time the BBC was dragged into the 21st century. I find it astonishing that we’re still forced – under threat of prosecution – to pay what is essentially a tax to the BBC in order to watch live television on any other channel.”

Nadine Dorries has nonetheless provoked anger by placing blame on rising living costs. Last October, the minister supported the cut to Universal Credit, which reduced benefits by £20 a week. In addition, in 2020 it was the Conservative government who ended the free TV licence scheme for over-75s.

In light of this history, many are suspicious of the government’s motives. Labour MP Anneliese Dodds branded the funding changes as “shameless” on Twitter, suggesting that Ms Dorries does not truly care about working people.

Labour’s Shadow Culture Secretary, Lucy Powell, similarly speculated on the timing of the licence fee announcement in the Commons. She argued that Dorries was deliberately shifting attention away from another government controversy.

Following a string of Partygate scandals, Boris Johnson’s leadership is looking increasingly precarious. These illegal gatherings took place in Downing Street throughout 2020, when the country was in lockdown, and many were attended by Johnson himself. Given this misconduct, there have been rumours of a vote of no confidence, where MPs can decide whether or not to oust the Prime Minister. To trigger the vote, 15% of Conservative ministers must support the move. Johnson would then have to secure a majority of votes across all parties to stay in power.

However, regardless of Ms Dorries’ reasoning, the funding of news production is a notoriously thorny issue. Financial concerns can threaten journalistic neutrality, whether a media company is financed by the state, commercial investors, or consumers. 

On one hand, the end of the fee would place the BBC further away from potential government interference. Alternatively, economic pressure could bring about a rise in populist news stories, which are valued for their potential to generate income. 

There is even a danger that certain stories could be published or cancelled to please advertisers, who do not have the public interest at heart. Whilst the freezing of funds does not signal the end of the BBC, it is likely to transform the service as we know it.