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Ministers to announce review of BBC licence fee

Ministers are expected to formally announce a review of the BBC licence fee model in the autumn amid concerns in government that the current model is “unsustainable”.

The options under consideration include a subscription model, a broadband levy and even advertising touted as potential alternatives to the licence fee.

A government source told the Times: “The evidence that there is a growing unwillingness to pay is shown by figures each year. The licence fee model is becoming unsustainable.”

The BBC’s annual report, published last week, revealed that the number of individuals opting to buy a licence fee had fallen by 500,000 to 24.3 million.

A spokesperson for the Department for Digital, Culture, Media and Sport said: “We remain committed to reviewing the licence fee model ahead of the next charter period to explore the potential for alternative ways to ensure the BBC remains appropriately funded over the long term.”