Rishi Sunak has shared that the BBC needs to be "realistic about what it can expect people to pay" for the TV licence fee during times of high inflation.
The Prime Minister has also welcomed £500 million in savings the corporation plans to make in the near future.
Most of the BBC's funding comes from the TV licence fee, which costs £159 per year at the moment.
The corporation said next year's cost was "unconfirmed" but that it had previously agreed increases in line with inflation to start from 2024, it reported.
Asked whether he thought the licence fee was sustainable, Mr Sunak said: "It's really important that when things are difficult, everyone is doing what they can to ease the cost of living on families".
BBC cuts back on programmes to make savings
As part of its plans to make savings the BBC will be cutting back on its Newsnight programme, shortening it by 10 minutes and focusing more on studio-based debates rather than investigative films.
As a whole greater focus will be put on digital journalism and live coverage across the BBC News division, with a "reduction in the amount of television packaging".
Speaking to reporters travelling with him to the COP28 summit in Dubai, Mr Sunak added: "The BBC like any other organisation that serves the public should be looking to do that and cut its cloth appropriately so I think that is very welcome.
“I think going forward, look the BBC – final decisions haven’t been made obviously – but the BBC should be realistic about what it can expect people to pay at a time like this. That, I think is the right approach.”
The Prime Minister did not directly say whether he would be limiting the planned increase to the fee.
A BBC spokesperson said: "The government and BBC agreed a six-year licence fee settlement in January 2022, which froze the licence fee for two years with increases in line with inflation from 2024.
"As is usual practice the government sets and confirms the cost of a licence each year and this remains unconfirmed for 2024/25.
"The BBC will continue to focus on what it does best: working to deliver world-class content and providing great value for all audiences."
Culture secretary says proposed £15 hike in licence fee would be too high
Culture Secretary Lucy Frazer has said that a £15 rise in the BBC licence fee would be “high” amid reports that Rishi Sunak is set to block a 9% hike in the annual charge.
Ms Frazer was asked on Times Radio about the Prime Minister’s suggestion that the BBC needs to be “realistic” about what people can pay.
Asked about a rise to over £170, she said: “Well, obviously, that’s high. This is something that we’re looking at, at the moment. And we’ll be making a decision on this in due course.”
For the past two years the licence fee has been frozen at the price of £159 but it was previously agreed it would rise in line with inflation after April 2024.
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel