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BBC director general Tim Davie opens door to overhaul licence fee

The BBC director general Tim Davie has announced that the corporation will explore how to reform the licence fee.

In a speech today, Davie said “it is right to ask fundamental questions about its longevity”.

Addressing a room of industry experts and partners and speaking directly to BBC staff around the world, Davie said the BBC had been reforming at pace to remain at the heart of people’s daily lives, but must now go further.

The Director General also said future funding of the BBC “will need reform”, adding: “I think it is right to ask fundamental questions about its longevity.”

But he also warned against unpicking “the very wonder of the BBC”.

The current licence fee costs £159 per annum – money raised from the licence fee pays for BBC shows and services. From 1st April, the cost will go up by 6.6% to £169.50, after being frozen for two years.

Davie also said the long term funding of the BBC World Service – an international news service available on radio, television and online in English and 40 other languages – ought to be paid for by the government.

“We cannot keep asking UK licence fee payers to invest in it when we face cuts to UK services,” he said.