Overview

This bill proposes to abolish the BBC licence fee, replacing it with a subscription model for funding the BBC. The change would necessitate renegotiating the BBC's Charter and Agreement to reflect this new funding mechanism.

Description

The bill's core aim is to repeal Part 4 of the Broadcasting Act 2013, which mandates the television licence fee. This would effectively end the current system of funding the BBC. The Secretary of State and the BBC are then obligated to renegotiate the BBC Charter and Agreement to transition the corporation to a subscription-based service. The bill allows the Secretary of State to create regulations to manage the transition, including transitional provisions. These regulations require approval from both Houses of Parliament. The abolition of the licence fee takes effect one year after the bill becomes law, while the other provisions are enacted immediately.

Government Spending

The bill would result in a significant reduction in government revenue as the BBC licence fee is no longer collected. The exact figure depends on the future subscription model adopted by the BBC and the level of subscription uptake. The government's current expenditure on the BBC would change based on negotiations regarding the new funding model. No specific figures are provided in the bill itself.

Groups Affected

• The BBC: The BBC would be most significantly impacted, needing to transition to a new funding model and adapt to the potential loss of viewers who are unwilling to pay for a subscription. It needs to renegotiate its charter and agreement.
• TV License payers: Current licence fee payers will no longer be obligated to pay, but would need to subscribe to the BBC's services. Those who don't want to pay will no longer have access to BBC content.
• Government: The government would lose a significant revenue stream from the licence fee and would be involved in renegotiating the BBC's charter and agreement.
• Parliament: Parliament will play a role in approving the consequential regulations set out by the Secretary of State.

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