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UK government to cut funding for BBC

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© Reuters. You can see the sign at BBC Broadcasting House offices, recording studios and London’s BBC Broadcasting House, London, Britain May 21, 2021. REUTERS/Toby Melville

LONDON, (Reuters) – Britain’s government has ordered a freeze for two years on fees people pay to view the BBC. This was reported by the Mail on Sunday.

Political debate continues about the future of British Broadcasting Corporation, which is funded by licence-payers. Prime Minister Boris Johnson recently suggested that it should be cut.

An inflation rate of 6% or higher in April is expected. A freeze of the license cost at 159 pounds ($217.40), would be a relief for consumers facing sharply increasing living expenses.

It would be devastating for the BBC’s financial health as it competes with private news organizations and companies like Netflix (NASDAQ) or other streaming entertainment services that are funded through consumer subscriptions.

The government began negotiations in November to determine the cost of the TV license. This was part of the five-year funding agreement that will begin April 2022.

Asking about the Mail on Sunday report, Digital, Media, Culture, and Sport refused to answer.

Nadine Dorries (culture secretary) stated that the Licence Fee Settlement would be the last of these agreements and tweeted a link at the Mail on Sunday article.

On Twitter, she stated that “Time is now to discuss the new ways in which funding, support and selling great British content can be done.”

The BBC refused to comment on Dorries’ tweet and the Mail on Sunday report.

Opposition Labour Party claimed that the reduction in funding was political motivated.

“The Prime Minister and the Culture Secretary seem hell-bent on attacking this great British institution because they don’t like its journalism,” said Lucy Powell, Labour lawmaker and culture policy chief.

UK political parties frequently criticize the BBC’s output in news. The BBC’s coverage on Brexit, which Johnson considers central to Johnson government, has been criticized by UK political parties for being too critical.

One Conservative lawmaker claimed last week that BBC coverage of Johnson’s Downing Street party during coronavirus lockdowns was a coup attempt against the prime minster.

($1 = 0.7314 pounds)

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