Sunday, January 12, 2025

No licence ?

The weekend nudge from the Government that the tv licence could be replaced by funding the BBC directly from general taxation comes early in the process. 

Advantages are clear: it saves separate collection costs. In 2023/24, the cost of collecting TV licences was £145.4 million, 3.8% of the total revenue of £3.66 billion.  It ends increasing evasion, estimated at 11.3%, equivalent to £466m in 2023/24. On one swoop, if there was a like for like transfer, the BBC could be 15% better off.  It makes paying for the BBC a tad more 'progressive', i.e. related to income. 

But there would be additional costs; some form of new independent body would have to lead on setting funding in the future. 

In a world of streaming, the only credible alternative is to tax smartphone and broadband connections, and possible providers of free wi-fi. 

One way of adding to the general pot of taxation might be to follow the Danes. Since January 2024, there's be a 'cultural levy' 2% of Danish revenues imposed on all on-demand streaming companies, with an additional 3% surcharge for those investing less than 5% in local content.

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