BBC warns of £285m funding black hole after licence fee freeze

The BBC’s director general rejected suggestions that the global broadcaster could move to a subscription funding model after Britain’s culture secretary announced a drastic cut to the corporation’s finances.

While acknowledging the security of a six-year budgetary timeframe, Tim Davie estimated that by 2027 there will be a gap of about £285 million ($388m) from the inflation-tracking estimated future revenue in the corporation’s finances as a result of the government’s decision. Other estimates suggested the gap could be as high as £2bn once inflation was taken into account.

Nadine Dorries, the culture secretary, announced a freeze on the licence fee on Monday and said she believed the broadcaster had to find a new funding model similar to that of Netflix.

To strong opposition in parliament, the MP confirmed that the £159 annual licence fee would be frozen for two years, but would rise in line with inflation for the subsequent four years.

Mr Davie said he was disappointed with the decision but refused to be drawn on speculation that the issue is being used by the government’ to “throw red meat” at Conservative backbenchers who are outraged over the partygate scandal engulfing Downing Street.

“We are disappointed. We would have liked to have seen an inflation rise throughout the period. We’ve got four out of six years, and on we go,” he told BBC Radio 4’s Today programme.

He said the BBC’s disappointment stemmed largely from the “years and decades of below-inflation demands on its funding” which has led to the group becoming lean.

He said the government's announcement will undoubtedly “affect our frontline output”, meaning viewers’ favourite programmes and services risk being cut.

He said no programme was truly safe from being slashed, saying: “Everything is on the agenda.

“Inevitably, if you don’t have £285 million you will get less services and less programmes,” he said. “Now, I still think the BBC can offer extraordinary value for the £13 a month.”

Mr Davie said the BBC's decision makers would “take stock” of the looming funding gap and “take clean decisions” on what should and should not be cut.

Pressed on the idea of funding the BBC through a subscription, he dismissed it, saying it would not be a suitable way of financing the corporation.

“The truth is we have built an incredible creative industry here in the UK and we’ve got a universal broadcaster that is admired around the world and that is because it serves the British public – and all the British public,” he said.

Director general of the BBC, Tim Davie, dismissed the idea that the Beeb could be funded by subscriptions. AFP

“The principle of universality is absolutely the debate here.”

Laying out the plan in the House of Commons, Ms Dorries did not challenge fellow Conservative MPs who called for the licence fee to be phased out altogether.

A TV licence is a legal requirement in the UK for any household in which live television is watched, whether on a TV set, laptop or other device.

A leading Boris Johnson loyalist, Ms Dorries was accused of being part of the prime minister’s strategy to deliver “red meat” policy announcements to shore up his position after the revelations of Downing Street lockdown parties.

She made her announcement for the next half decade of funding, which gives the BBC an income of £5 billion ($6.8bn) from fee-payers.

Ms Dorries made a direct appeal to poorer households that face rising energy costs.

“I have to be realistic about the economic situation facing households up and down the country,” she said.

The BBC’s proposed increase of an extra £21 a year would, Ms Dorries said, “expose families to the potential threat of bailiffs knocking on their door or criminal prosecution”.

Denying an increase would mean “more money in the pockets of pensioners, in the pockets of families who are struggling to make ends meet”.

But she did say that the government would double the borrowing limits of the broadcaster’s commercial arm to £750 million, allowing access to private finance to pursue its commercial growth strategy.

The BBC now had to be “forward looking” and an organisation that could “thrive alongside Netflix and Amazon Prime”.

Ms Dorries accused the BBC of having a left-wing bias and was condemned by Labour’s opposition culture spokeswoman for articulating the right-wing Conservative “long-standing vendetta” against the broadcaster.

“It’s part of Operation Red Meat to save the prime minister from becoming dead meat,” said MP Lucy Powell.

“The BBC is a well-trusted British treasure. It is the envy of the world, but the government is in trouble and the prime minister is casting around for people to blame, and the culture secretary has stepped up to provide some red meat.”

Ms Dorries denied Ms Powell’s accusation that the government wanted to abolish the broadcaster. “It is nobody’s intention to destroy the BBC,” she said.

But former Conservative minister Peter Bottomley argued against the government plan.

“I’m not impressed by the process or the proposal,” he said. “I don’t think it necessarily leads to progress.”

The cut was supported by former TV executive and Conservative party peer Lord Michael Grade.

“£159 a year may not be a lot of money to Gary Lineker or many of the BBC executives and the commentators, but it’s a heck of a lot of money for the majority of people in this country,” he told the BBC earlier.

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The National Editorial: Is there much to celebrate on International Women's Day 2021?

The%20specs

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Dubai World Cup Carnival card

6.30pm: Al Maktoum Challenge Round-2 Group 1 (PA) US$75,000 (Dirt) 1,900m

7.05pm: Al Rashidiya Group 2 (TB) $250,000 (Turf) 1,800m

7.40pm: Meydan Cup Listed Handicap (TB) $175,000 (T) 2,810m

8.15pm: Handicap (TB) $175,000 (D) 1,600m

8.50pm: Handicap (TB) $135,000 (T) 1,600m

9.25pm: Al Shindagha Sprint Group 3 (TB) $200,000 (D) 1,200m

10pm: Handicap (TB) $135,000 (T) 2,000m

The National selections:

6.30pm - Ziyadd; 7.05pm - Barney Roy; 7.40pm - Dee Ex Bee; 8.15pm - Dubai Legacy; 8.50pm - Good Fortune; 9.25pm - Drafted; 10pm - Simsir

Our coronavirus coverage

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Lin Yaduo: This is the time for facts, not fear

National Editorial: China deserves the whole world's support

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MATCH INFO

Sheffield United 2 Bournemouth 1
United: Sharp (45 2'), Lundstram (84')
Bournemouth: C Wilson (13')

Man of the Match: Jack O’Connell (Sheffield United)

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PRO BASH

Thursday’s fixtures

6pm: Hyderabad Nawabs v Pakhtoon Warriors

10pm: Lahore Sikandars v Pakhtoon Blasters

Teams

Chennai Knights, Lahore Sikandars, Pakhtoon Blasters, Abu Dhabi Stars, Abu Dhabi Dragons, Pakhtoon Warriors and Hyderabad Nawabs.

Squad rules

All teams consist of 15-player squads that include those contracted in the diamond (3), platinum (2) and gold (2) categories, plus eight free to sign team members.

Tournament rules

The matches are of 25 over-a-side with an 8-over power play in which only two fielders allowed outside the 30-yard circle. Teams play in a single round robin league followed by the semi-finals and final. The league toppers will feature in the semi-final eliminator.

Other ways to buy used products in the UAE

UAE insurance firm Al Wathba National Insurance Company (AWNIC) last year launched an e-commerce website with a facility enabling users to buy car wrecks.

Bidders and potential buyers register on the online salvage car auction portal to view vehicles, review condition reports, or arrange physical surveys, and then start bidding for motors they plan to restore or harvest for parts.

Physical salvage car auctions are a common method for insurers around the world to move on heavily damaged vehicles, but AWNIC is one of the few UAE insurers to offer such services online.

For cars and less sizeable items such as bicycles and furniture, Dubizzle is arguably the best-known marketplace for pre-loved.

Founded in 2005, in recent years it has been joined by a plethora of Facebook community pages for shifting used goods, including Abu Dhabi Marketplace, Flea Market UAE and Arabian Ranches Souq Market while sites such as The Luxury Closet and Riot deal largely in second-hand fashion.

At the high-end of the pre-used spectrum, resellers such as Timepiece360.ae, WatchBox Middle East and Watches Market Dubai deal in authenticated second-hand luxury timepieces from brands such as Rolex, Hublot and Tag Heuer, with a warranty.

UAE currency: the story behind the money in your pockets

The five pillars of Islam

1. Fasting

2. Prayer

3. Hajj

4. Shahada

5. Zakat

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Company%20Profile

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Sweet%20Tooth

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How to wear a kandura

Dos

Wear the right fabric for the right season and occasion
Always ask for the dress code if you don’t know
Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
Wear 100 per cent cotton under the kandura as most fabrics are polyester

Don’ts

Wear hamdania for work, always wear a ghutra and agal
Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying

Tomorrow 2021

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UAE-wide visa changes: Expats imagine life after work in the UAE

KEY%20DATES%20IN%20AMAZON'S%20HISTORY

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Moon Music

Artist: Coldplay

Label: Parlophone/Atlantic

Number of tracks: 10

Rating: 3/5

The specs

Engine: Direct injection 4-cylinder 1.4-litre
Power: 150hp
Torque: 250Nm
Price: From Dh139,000
On sale: Now

WHAT%20IS%20'JUICE%20JACKING'%3F

%3Cp%3E%E2%80%A2%20Juice%20jacking%2C%20in%20the%20simplest%20terms%2C%20is%20using%20a%20rogue%20USB%20cable%20to%20access%20a%20device%20and%20compromise%20its%20contents%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20The%20exploit%20is%20taken%20advantage%20of%20by%20the%20fact%20that%20the%20data%20stream%20and%20power%20supply%20pass%20through%20the%20same%20cable.%20The%20most%20common%20example%20is%20connecting%20a%20smartphone%20to%20a%20PC%20to%20both%20transfer%20data%20and%20charge%20the%20former%20at%20the%20same%20time%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20The%20term%20was%20first%20coined%20in%202011%20after%20researchers%20created%20a%20compromised%20charging%20kiosk%20to%20bring%20awareness%20to%20the%20exploit%3B%20when%20users%20plugged%20in%20their%20devices%2C%20they%20received%20a%20security%20warning%20and%20discovered%20that%20their%20phones%20had%20paired%20to%20the%20kiosk%2C%20according%20to%20US%20cybersecurity%20company%20Norton%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20While%20juice%20jacking%20is%20a%20real%20threat%2C%20there%20have%20been%20no%20known%20widespread%20instances.%20Apple%20and%20Google%20have%20also%20added%20security%20layers%20to%20prevent%20this%20on%20the%20iOS%20and%20Android%20devices%2C%20respectively%3C%2Fp%3E%0A

Call of Duty: Black Ops 6

Developer: Treyarch, Raven Software
Publisher: Activision
Console: PlayStation 4 & 5, Windows, Xbox One & Series X/S
Rating: 3.5/5

From Zero

Artist: Linkin Park

Label: Warner Records

Number of tracks: 11

Rating: 4/5

While you're here

Malaysia crowns Pahang state's Sultan Abdullah as 16th king

Sheikh Mohamed receives Malaysian king in Abu Dhabi

Sheikh Mohamed and the King of Malaysia in 1979

THE LIGHT

Director: Tom Tykwer

Starring: Tala Al Deen, Nicolette Krebitz, Lars Eidinger

Rating: 3/5

Mohammed bin Zayed Majlis

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Killing of Qassem Suleimani

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Mina Al Oraibi: Air strike casts a long shadow over the decade ahead

Jack Moore: Why the assassination is such a monumental gamble

Damien McElroy: A CEO tasked with spreading Iran's influence

Hussein Ibish: Trump's order on solid constitutional ground

Simon Waldman: Cautious Israel keeping a low profile

NO OTHER LAND

Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal

Stars: Basel Adra, Yuval Abraham

Rating: 3.5/5

What is Reform?

Reform is a right-wing, populist party led by Nigel Farage, a former MEP who won a seat in the House of Commons last year at his eighth attempt and a prominent figure in the campaign for the UK to leave the European Union.

It was founded in 2018 and originally called the Brexit Party.

Many of its members previously belonged to UKIP or the mainstream Conservatives.

After Brexit took place, the party focused on the reformation of British democracy.

Former Tory deputy chairman Lee Anderson became its first MP after defecting in March 2024.

The party gained support from Elon Musk, and had hoped the tech billionaire would make a £100m donation. However, Mr Musk changed his mind and called for Mr Farage to step down as leader in a row involving the US tycoon's support for far-right figurehead Tommy Robinson who is in prison for contempt of court.

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The specs: 2019 BMW i8 Roadster

Price, base: Dh708,750

Engine: 1.5L three-cylinder petrol, plus 11.6 kWh lithium-ion battery

Transmission: Six-speed automatic

Power: 374hp (total)

Torque: 570Nm (total)

Fuel economy, combined: 2.0L / 100km

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1921

1888

Plastic tipping points

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Ten years on, the UAE's stateless people reflect on how life has improved and on the challenges ahead

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UAE currency: the story behind the money in your pockets

The years Ramadan fell in May

1987

1954

1921

1888

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Which honey takes your fancy?

Al Ghaf Honey

The Al Ghaf tree is a local desert tree which bears the harsh summers with drought and high temperatures. From the rich flowers, bees that pollinate this tree can produce delicious red colour honey in June and July each year

Sidr Honey

The Sidr tree is an evergreen tree with long and strong forked branches. The blossom from this tree is called Yabyab, which provides rich food for bees to produce honey in October and November. This honey is the most expensive, but tastiest

Samar Honey

The Samar tree trunk, leaves and blossom contains Barm which is the secret of healing. You can enjoy the best types of honey from this tree every year in May and June. It is an historical witness to the life of the Emirati nation which represents the harsh desert and mountain environments