The BBC is facing a major funding challenge, with its real income dropping by £1 billion ($1.3 billion) a year compared to 2010.
This significant decline is largely due to inflation, and the BBC warns that without intervention, it will struggle to maintain its current level of UK content.
Disclosing this in its strategic plan for the year ahead, the BBC said “Without intervention, it will be difficult to maintain the current ambition and volume of UK content.”
The BBC’s income for 2025/26 is expected to be £6.1 billion, which is £1 billion less than its income in 2010 when adjusted for inflation.
Despite efforts to increase efficiency, including cutting 2,000 roles over the past five years, the BBC says it has reached the limit of cost-cutting measures.
The funding challenge is exacerbated by a decline in co-production partnerships with global streamers and media companies.
The BBC relies primarily on a licence fee from television owners, which has been frozen for the past two years, while inflation has risen sharply.
To address this challenge, the BBC is urging the government to secure a universal public service BBC for a generation through its Royal Charter review.
The government is currently reviewing the BBC’s Royal Charter, which outlines the corporation’s governance.
“We believe the new Charter should secure a universal public service BBC for a generation.
“This requires a Charter that: safeguards the BBC’s independence; ensures that it is sustainable for the long term, including sufficient, reliable funding; and allows the BBC to respond to changing audience needs with speed and agility,” it added.
AFP
