Tim Davie, the outgoing director-general of the BBC, has warned the corporation will be in “profound jeopardy” unless the current licence fee system is overhauled.
The majority of the BBC’s funding comes from the licence fee, which currently stands at a charge of £174.50 per year, per UK household. Over 75s receive it for free. In the 12 months up to March 2025, the licence fee raised a total of £3.8bn, but non-payment has been increasing in recent years.
In a new interview with The Guardian, Davie has admitted his fear that the BBC could be “in trouble” if the system isn’t changed.
“We do want reform of the licence fee,” he said. “However, we’re not just about driving the amount we get from households higher.
“My biggest fears are that we just roll on and think it’s going to be OK. We don’t reform enough. At that point, we don’t get regulatory reform and more flexibility. That’s my biggest worry. And I think, if we don’t do that, we’re in trouble.”
Davie shared reservations about the BBC moving to an advertising or subscription model, emphasising the importance of it remaining a “universal service”.
“The truth is, the jeopardy is high,” he continued. “The BBC has never really had profound jeopardy. What do I mean by that? It has, of course, had lots of drama and editorial crises in its time. But that’s actually not deathly jeopardy for the BBC.
“What represents deathly jeopardy for the BBC is if it’s not relevant … If we’re going to survive, we need permission to reform... we have got to stand up and fight for it.”
First introduced in 1946, the licence fee must be paid by any household that watches or records live TV on any channel and/or uses BBC iPlayer. According to BBC estimates, the licence fee evasion rate rose from 10.58 per cent to 11.3 per cent in the 10 years up to March 2024.
In 2023/24, the licence fee contributed 68 per cent of the BBC’s funding. The rest of its income came from commercial projects, and activities such as grants, royalties and rental income. The current system will be in place until at least December 2027, when the current charter expires.
After a 20-year career at the BBC, Davie is now in the process of stepping down from his role.
The outgoing director-general resigned in November amid the fallout from a Panorama edit of a Donald Trump speech.
In an address given before riots unfolded at the US Capitol on 6 January 2021, Trump said: “We're going to walk down to the Capitol, and we're going to cheer on our brave senators and congressmen and women.” More than 50 minutes later in the same speech, he said: “And we fight. We fight like hell.”
In the Panorama programme, the two moments were edited together into a clip that appeared to show the US president saying: “We're going to walk down to the Capitol... and I'll be there with you. And we fight. We fight like hell.”
News CEO Deborah Turness also resigned from her position amid the furore.
A replacement for Davie is yet to be announced and as the recruitment process continues, it has been suggested he could remain in charge until March 2026.
US President Trump filed a $5bn (£3.7bn) defamation lawsuit against the BBC in December, accusing it of “intentionally, maliciously, and deceptively doctoring” a speech he gave on 6 January 2021 before the US Capitol riot.
The BBC has apologised for the edit, which aired in an episode of Panorama, but says there is no basis for a defamation claim.
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