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Government Rules Out Levy on Streamers but Keeps Licence-Fee Expansion Possible

Culture Secretary Lisa Nandy narrowed government options to licence-fee changes as the BBC presses ahead with deep savings and job cuts.

Overview

  • On Thursday, June 18, Lisa Nandy told MPs the government will not impose a new levy on Netflix, Amazon or other streaming platforms or fund the BBC through direct taxation.
  • Ms Nandy refused to categorically rule out widening the existing £180 annual TV licence to cover homes that only use on-demand streaming, leaving that option for the Royal Charter review before its December 2027 expiry.
  • The BBC is pursuing about £500 million in savings over the next two years and has signalled cuts of roughly 1,800 to 2,000 roles plus programme decommissions, a drive the corporation says funding change could reduce.
  • Major streamers and trade groups have said they will not act as third-party collectors for any fee, with the Motion Picture Association warning against enforcing the licence through platforms and complicating practical collection plans.
  • Former BBC executive Lord Michael Grade criticised the £180 charge as unfair and called for it to fall, while ministers say any change must protect the BBC’s editorial independence during charter negotiations.