Culture secretary John Whittingdale has offered support to replacing the BBC licence fee with a household levy collected in a similar way to the council tax, but said no decision had been made ahead of legislation expected next year.



Whittingdale’s comments to MPs on Wednesday came two days after the BBC itself backed the household levy system, outlined in the government’s green paper on the future of the BBC, as one way of modernising the current system.

The culture secretary said such a system could help tackle the issue of non-payment, which is currently a criminal officence, as well as introducing a progressive element absent from the flat-rate licence fee.

In wide-ranging comments, he also indicated that “all things being equal” the licence fee would rise in line with inflation following a controversial funding deal agreed between the government and the BBC, but his comments were attacked by political opponents as spreading further doubt.

Asked about the possible introduction of a household levy, Whittingdale said that the “simplest” of a “number of different options” was “instead of having to pay separately, you could pay it at the same time as another bill, such as your council tax bill. It would make it easier to collect, it would also I think address concerns about evasion”.

The licence fee, which is based on ownership of a television despite the fast growth of online viewing figures, is currently collected separately from all other taxes levied by local authorities.

Whittingdale said if the system was linked to the council tax, which is based on house size for example, it could be levied in a progressive way rather than one-size-fits-all rate of £145.50.

In a wide-ranging appearance before MPs on the House of Commons culture, media and sport select committee on Wednesday, Whittingdale stressed that all options were still open, with responses to the green paper on the BBC not due until 8 October: “We haven’t reached a decision about any of these things.”

Yet he has previously been critical of a flat-rate fee he calls “regressive”. In 2013 he said: “I still think, for exactly the same reason as the winter fuel allowance and a free buss pass, it is very difficult to justify why my mother doesn’t have to pay a licence fee. Means testing it would be administratively more complicated but nevertheless in the present climate I can see no real reason why it remains a universal benefit.”

Whittingdale admitted he did not have enough time to do as thorough a review of the BBC’s scope and future funding as he would have liked before the current royal charter runs out at the end of 2016. He indicated that the current charter may have to be extended before a new one is put in place.

Chris Bryant MP shadow culture criticised his comments about funding: “ After the backroom deals of July, Whittingdale seems intent on creating even more uncertainty about the level of the licence fee.

“We need a strong BBC able to meet the challenges of the future so the idea that somehow or other it might have to face even more cuts than the Tories have already pushed through is ludicrous.

“The secretary of state said if all things are equal, the Beeb should get the inflationary rise, but the trouble is his government seem determined to ensure the BBC aren’t equal in this process after already tying their hands behind their back with a £700m raid on their funds.”

World Service expansion

In comments that suggested the BBC had consulted with the government over its plans ahead of the announcement, Whittingdale was effusive about BBC plans to expand the World Service but expressed concerns that proposals to help local newspapers may have the reverse effect.

He said the World Service was “one of the great assets we have” at a time of increasing propaganda from news outlets in Russia and China and said he “very much welcomed” corporation plans to launch new services for Russian speakers and in North Korea.

The BBC said on Monday the new services will be dependent on increased government funding, due to be discussed in the autumn, although Whittingdale gave no indication as to whether the extra money would be forthcoming or not.

The department of culture media and sport said the minister was simply expressing a view when he welcomed the proposals to launch a Russian language service, rather than committing the government to fund it.

However, Whittingdale was more cautious about BBC proposals to support the local newspaper industry – including a 100-strong network of local reporters and a new data hub and network – which elicited a mixed response from local media companies on Monday.

“I was alarmed slightly at the suggestion the BBC might directly go out and employ local reporters because I don’t think that would meet the objective of supporting local newspapers, it would increase the pressure on them,” he said.





Whittingdale refused to rule out the privatisation of Channel 4 but went further than he has done previously by suggesting that the state-owned but commercially funded broadcaster could maintain its remit regardless of ownership.

“At the moment, there are no plans to sell Channel 4 … but am I going to say to you that it is out of the question? No,” he said.

Developing comments he had made last month at the Guardian Edinburgh International Television Festival, he said the issue of ownership was separate from the commitment to public service obligations governing Channel 4. “The remit [remains] … it doesn’t matter what [the] ownership structure is.”

Arts Council facing possible cuts

Separately, Whittingdale said the Arts Council would have to face a reduction in its funding as part of the government-wide cuts being imposed across all its departments.

The DCMS, in common with other government departments without ring-fenced funding, has been asked to model two scenarios of 25% and 40% of real-terms savings by 2019-20.

Whittingdale said the Arts Council was one of the biggest recipients of the department’s funds. “Therefore, inevitably, if we are required to find savings, the Arts Council is going to have to make a contribution to that process,” he said.

Asked whether the Arts Council had done enough to address concerns about the distribution of its money around the country, and whether it was still regarded as too London-focused, Whittingdale said: “They have done quite a bit” but said they could do more and it was “something the chairman and chief executive were looking at”.

