UK government announces BBC license fee abolished in 2027
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In 2027, the Brits will no longer be forced to pay a license fee to fund the British Broadcasting Corporation's programs, the UK government announces.
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BBC is currently facing challenges regarding programs production costs due to the rising inflation and competition.
The British Broadcasting Corporation's programs will undergo deep cuts, as the government announced that the mandatory license fee that British people pay to watch will be abolished in 2027.
Britain's Culture Secretary, Nadine Dorries, will confirm that the Brits will still pay an annual fee of £159 to watch live TV till 2024. After that, the fee cost will slightly increase till 2027.
Dorries announced that the decision will end BBC's license fee funding model, which raises questions about the public service broadcaster's future funding.
“This license fee announcement will be the last. The days of the elderly being threatened with prison sentences and bailiffs knocking on doors are over," the Culture Secretary expressed.
"Time now to discuss and debate new ways of funding, supporting and selling great British content,” she added.
“It’s over for the BBC"
The decision comes as a plan to regain support for Conservative UK Prime Minister Boris Johnson amid calls for resignation and waves of criticism that he faces over his performance, the newspaper highlighted.
Originally, the BBC's establishment and funding model is in accordance with a UK royal charter that expires at the end of 2027.
Subsequently, the BBC will have to discuss with the government other funding models when the deal expires in 2027 "with potential options including a subscription service, part-privatization, or direct government funding."
"Work will start next week on a mid-term review to replace the charter with a new funding formula," The Mail quoted a source close to Dorries as saying.
“It’s over for the BBC as they know it," the source added.
What could this mean?
The media giant is currently facing challenges regarding programs production costs due to the rising inflation and competition from other service providers such as Netflix.
In fact, BBC already started off-air cost savings, and on-air services are next.
"As a result, the public should prepare for the BBC to provide less high-end drama and sports coverage, pad schedules with cheaper programs, and potentially close some channels or services altogether," The Guardian estimated.
It is noteworthy that the British government has criticized the BBC's news, alleging bias against it.
