Culture Secretary Lisa Nandy labelled the current system as ‘deeply regressive’ and said she was thinking ‘quite radically and creatively’ about alternatives

Lisa Nandy has ruled out funding the BBC through general taxation if the licence fee is axed.

The Culture Secretary labelled the current system as “deeply regressive” and said she was thinking “quite radically and creatively” about alternatives.

She said there were a “whole range of options” – but insisted this would not include funding the public broadcaster through general taxes.

The BBC licence fee, which the Government has committed to increasing in line with inflation each year until 2027, is to rise to £174.50 in April.

Ms Nandy told BBC Breakfast the licence fee was “not only insufficient, it’s raising insufficient money to support the BBC, but it also is deeply regressive”.

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Ms Nandy added: “We’ve seen far too many women prosecuted over recent years for being unable to pay it, and it’s a flat fee that means that poorer people pay proportionately more than anybody else. I think that doesn’t help the BBC, it doesn’t help the Government, and it doesn’t help people in this country.”

Ministers are looking at a “whole range of alternatives”, she said, adding: “We haven’t committed to any of them.”

But on speculation the BBC could instead be funded through general taxes, she said: “That’s not something we’re considering, not least because we want to make sure we protect the BBC from the sort of political interference we saw under the last government.

“It’s important we have free and fair broadcasting in this country that is able to hold the government to account and so general taxation is not something we are considering.”

The Government scrapped the BBC Funding Model Review, along with its expert panel, previously set up under the Conservative administration.

Ms Nandy acknowledged that a subscription model was among the options which were left after ruling out taxation, but added: “It also leaves a whole range of options which the Culture, Media and Sport Select Committee has been exploring over recent years.

“In other countries in Europe, they find different ways of raising money. In France, for example, they have a levy on cinemas. I’m not committing to any of these things at this stage.”

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