The BBC faces “profound jeopardy” unless it undertakes significant reform of its funding model, according to its outgoing director general Tim Davie, who has indicated support for changes to the licence fee system.
In an interview with The Guardian, Davie warned that the corporation would be “in trouble” without serious reform and greater flexibility over the services it can offer, as it comes under growing political and commercial pressure.
“We do want reform of the licence fee,” Davie said. “My biggest fears are that we just roll on and think it’s going to be OK. If we don’t reform enough, we’re in trouble.”
Davie stressed that he did not support simply increasing the amount paid by households, instead backing a broader overhaul to bring more people into funding the BBC. However, he rejected alternative models such as advertising or subscription funding, arguing that they would undermine the BBC’s role as a universal public service.
“If you go to advertising or subscription, you’re no longer a universal service,” he told The Guardian. “It’s a societal choice.”
The BBC is currently exploring options to make the licence fee more progressive, including proposals previously floated by BBC chair Samir Shah for a household levy collected via council tax. Such a system could reduce enforcement activity and allow lower-income households to pay less, although it would be controversial because it could remove the ability to opt out.
Davie also ruled out a hybrid system that would split funding by genre, such as charging separately for drama while keeping news licence-fee funded. He said dividing the BBC in that way would undermine public service broadcasting, particularly local news.
“What we’re fundamentally opposed to is splitting the BBC up by genre,” he said. “That would be the end of public service broadcasting.”
The comments come as negotiations begin over the BBC’s next royal charter, which expires at the end of 2027. The broadcaster has seen the real value of the licence fee fall by around a third since 2010, while non-payment has been rising.
Davie, who resigned last year following controversy over the BBC’s editing of a Donald Trump speech, also argued for governance changes to strengthen the BBC’s independence from political pressure. He said audience research showed independence was the single biggest concern among viewers.
“The biggest thing they wanted was an independent BBC,” Davie said.
He warned that the decline of public service media globally had damaging consequences and said the BBC must be allowed to reform to remain relevant.
“It feels the jeopardy is high, and we have got to stand up and fight for it,” he said.
