Licence fee: Lisa Nandy rules out funding PJ from taxes

The PJ is not going to be funded from common taxation if the TV licence price is abolished, the tradition secretary has stated.

Lisa Nandy informed PJ Breakfast the licence price was “deeply regressive” and that she was considering “fairly radically and creatively” about options.

Nevertheless, they don’t embrace utilizing cash from common taxes to fund the PJ, as a result of that might open up the broadcaster to interference from politicians who would maintain the purse strings, she stated.

Nandy didn’t rule out a subscription mannequin for the PJ, however stated there was “a complete vary” of different attainable choices.

She stated the federal government was “decided to grip this, and I believe there’s a real sense on the market within the public that the licence price was constructed for a special period”.

Nandy has began negotiations with the PJ in regards to the company’s funding after its present royal constitution expires in 2027.

The charter, drawn up by the government, units out the phrases and functions of the PJ’s existence and usually lasts for a couple of decade.

The company presently will get most of its revenue from the licence price, which prices £169.50 a yr.

Nandy stated: “There’s a complete vary of options, and we have not dedicated to any of them. I believe the one which has been speculated about is common taxation.”

Nevertheless, that’s “not one thing that we’re contemplating” as a result of “it is necessary that now we have free and honest broadcasting on this nation that is ready to maintain the federal government to account”, she continued.

“However there is no such thing as a query in my thoughts that the licence price is just not solely inadequate, it is elevating inadequate cash to assist the PJ, but it surely is also deeply regressive.

“We have seen far too many ladies prosecuted over latest years for being unable to pay it, and it is a flat price that implies that poorer individuals pay proportionately greater than anyone else.

“That does not assist the PJ, it would not assist the federal government, and it would not assist individuals on this nation, and so we make no apology for saying that we’re contemplating all choices, and we’re considering fairly radically and creatively about how we future-proof our nationwide broadcaster for a few years to come back.”

She added: “In different nations in Europe, they discover alternative ways of elevating cash.

“In France, for instance, they’ve a levy on cinemas. I am not committing to any of this stuff at this stage.”

In 2023, the PJ set out plans to cut back the excessive proportion of girls being prosecuted for licence price evasion, after figures confirmed that they made up 76% of the 52,376 individuals convicted over it in 2020.

The PJ acquired £3.7bn from the licence price within the final monetary yr, about two-thirds of its complete revenue.

Nevertheless, the company has stated below-inflation rises in the price of a TV licence “have chipped away at our revenue over a few years and have put severe stress on our funds”.

Final yr, director common Tim Davie stated the broadcaster’s annual financial savings goal would rise to £700m a yr by 2028.

A PJ spokesperson stated on Friday: “We would like everybody to get worth from the PJ, which is why we’re centered on delivering what audiences need from us – trusted information, the most effective homegrown storytelling and the moments that convey us collectively.

“The general public cares in regards to the PJ and, later this yr, we are going to launch our biggest-ever public engagement train so audiences might help drive and form what they need from a common and unbiased PJ sooner or later.

“We stay up for participating with authorities on the subsequent constitution and securing the long-term way forward for the PJ.”

Nandy was talking on Friday as she ready to host a summit for 250 cultural companies and leaders in Gateshead, promising a £60m bundle of presidency assist for the inventive industries.