Culture Secretary Lucy Frazer said she is “concerned” the planned nine per cent rise in the licence fee is “very high”.<\/p>\n
She said the Government will be making an announcement amid speculation Rishi Sunak will block the hike in the annual charge, which provides most of the BBC’s funding.<\/p>\n
Ms Frazer highlighted the cost of living crisis as she said she wanted to ensure the cost of a TV licence – currently \u00a3159 – rises by an “appropriate amount that people can afford”.<\/p>\n
The Culture Secretary told Sky News: “I’m concerned that that’s a very high level.<\/p>\n
“It’s a decision that I’m looking at the moment and we’ll be making an announcement on this very shortly.”<\/p>\n
Pressed again on whether the increase would go ahead, the Culture Secretary added: “Well, I’m concerned about that level of rise so it’s something that we’re looking at very carefully.”<\/p>\n
The licence fee, which has been frozen for two years, is due to jump by almost \u00a315 next April to \u00a3173.30.<\/p>\n
The BBC is seeking to make \u00a3500million of savings in the face of the freeze and high inflation.<\/p>\n
The Prime Minister insisted “final decisions haven’t been made” about the future of the licence fee.<\/p>\n
But he said the corporation should be “realistic” about what it can expect people to pay at this stage.<\/p>\n
Speaking while on his trip to Dubai for the Cop28 climate summit, Mr Sunak said: “First thing to say is, I think it is welcome that the BBC are looking at making savings and efficiencies in how they operate.<\/p>\n
“It’s really important that when things are difficult everyone is doing what they can to ease the cost of living on families.<\/p>\n
“That’s certainly what I have done over the last year and made a bunch of decisions that haven’t been easy.<\/p>\n
“But that’s helped to bring inflation down to ease the burden and the cost of living.”<\/p>\n
He 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.<\/p>\n
“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.”<\/p>\n
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.<\/p>\n
“As is usual practice the Government sets and confirms the cost of a licence each year and this remains unconfirmed for 2024\/25.<\/p>\n
“The BBC will continue to focus on what it does best: working to deliver world-class content and providing great value for all audiences.”<\/p>\n