BBC licence fee on the brink as broadcaster told to 'look at new funding sources'

The BBC licence fee has been left on the brink as the UK’s national broadcaster has been told to “look for funding resources”.

Culture Secretary Lucy Frazer appeared to initiate the process of looking more closely at the licence fee after calling on the BBC to consider alternative funding methods.

The BBC could potentially move to subscriptions amid reports it generated £3.5billion from the licence fee last year.

Frazer also confirmed the Department for Culture, Media and Sport is looking closely at the annual £159 fee.

Speaking on the BBC’s Sunday with Laura Kuenssberg show, South East Cambridgeshire's Tory MP said: “I do think it might need to look at a variety of sources for its funding. The licence fee isn’t the only way.”

Frazer appeared to echo the tone of her predecessor Nadine Dorries.

Dorries, a fervent supporter of ex-Prime Minister Boris Johnson, planned to scrap the licence fee from 2028.

However, despite freezing the fee for the past two years, a review into the charge failed to take place.

An increase of £13 is expected to come in from 2024.

But the BBC has been struggling to accommodate for a £400million annual income shortfall due to the freeze and inflation.

The UK’s national broadcaster merged its domestic and international news services in response.

It has also cut its network of local radio stations and slashed the World Service budget.

Programming output is expected to face a reduction of around 1,000 hours in 2023.

The BBC has been grappling with several crises in recent months, including the resignation of the outgoing chairman Richard Sharp.

Trust in the broadcaster has also taken a hit amid a row about Match of the Day host Gary Lineker.

Net trust in the BBC dropped from +21 per cent in August to +14 per cent, an Opinium poll in March has revealed.

The broadcaster came under fire during King Charles's Coronation celebrations after giving Britons five tips on how to avoid the event.

Defund the BBC’s campaign director Rebecca Ryan told GB News: “The BBC is anti-monarchy and anti-Britain and yet they continue to bully the British people into paying the TV licence fee.

“It’s time to scrap this outdated form of funding and for the BBC to stand, or fall, on its merits or lack thereof.”

A BBC spokesman said: “We are open-minded about the future and it is right there is a discussion on if and whether the licence fee needs to evolve.”