BBC chief reveals plan for two-tier licence fee with choice between ‘basics’ package or ‘premium’

A two-tier licence fee that allows viewers to chose to upgrade to ‘premium’ television could be introduced as part of plans by new BBC boss Tim Davie, reports suggest.

Hit shows such as Bodyguard, Normal People and Strictly Come Dancing could be among the series to be moved onto the premium rate.

Meanwhile, staple BBC shows such as EastEnders and Blue Peter, as well as BBC News, could remain on a cut-price ‘basics’ package, reports The Sun.

The basics package will be aimed at those who usually watch pay-monthly subscription services such as Netflix, the reports say.

It comes as Mr Davie, who took over as the BBC’s new director general last week, looks at a new funding model for the corporation.

Government ministers and top BBC executives are looking at ways to replace the traditional licence fee.

The BBC’s current licence fee model is guaranteed until 2027 under a royal charter.

But speculation is growing that Mr Davie could opt to change the funding model earlier for a new long-term option, according to the The Guardian, who say Mr Davie could also look at a special income tax method. 

Such a system is currently used in Sweden to fund all of its public service broadcasting.

People paid a maximum of £113 (1,300 SeK) 2019 for the service, compared to the £157-a-year for the BBC, while the tax is a sliding scale with those with less money paying less – unlike the BBC’s flat rate system.

The Swedish-style income tax model is one option, while Mr Davie’s predecessor Lord Hall has previously mentioned an option which would see the fee added to council tax bills.

But Mr Davie has dismissed any talk of a subscription service, like Netflix, to replace the licence fee, and could turn to the two-tier system as one option.

A source told The Sun: ‘This is all at a very early stage but the two-tier structure is being discussed at the higher echelons.

‘You would effectively have a cut-price version including the main aspects of telly and radio stations.

‘But there would be a gear-change with the next offer to the public, which could include the high-production dramas and possibly some sports.’

The new idea comes among growing concern by BBC executives that an upcoming report will suggest decriminalisation for non-payment of the licence fee.

It will mean those who fail to pay from 2020 are likely to face a civil penalty, rather than now, when they face a criminal sanction.

There are concerns this could cost the BBC up to £1billion-a-year in lost revenue.

The reports come as it was revealed that Mr Davie has held talks with Andrew Neil to try and convince him to return to the corporation.

On his second day in the role, Tim Davie held a Zoom call with Mr Neil, who left the BBC in March, and made him a number of formal offers, as reported by The Sunday Telegraph.

Mr Neil – famed for his forensic no-holds-barred interviews – is understood to have spent most of the pandemic in France after The Andrew Neil Show was taken off air.

Sources close to the director-general told the newspaper: ‘Tim Davie wants Andrew Neil back at the BBC because he is a b***** good broadcaster.

‘There has always been a collective desire to have him in the fold because of his talent.’

It comes as Mr Davie is understood to be keen to shake off criticism that the BBC is too left-wing. 

He is said to have told staff this week that if they want to be opinionated columnists or partisan campaigners on social media they ‘should not be working at the BBC’.

Mr Davie said the broadcaster needed to ‘urgently champion and recommit to impartiality’.

He insisted his drive was ‘about being free from political bias, guided by the pursuit of truth, not a particular agenda’.

His latest remarks – widely seen as a swipe at woke presenters mouthing off on Twitter – came after he ordered a u-turn on a ban on Rule Britannia and Land of Hope and Glory at Last Night of the Proms.

The comments were in his first official speech in Cardiff on Thursday lunchtime and follow controversies over impartiality, including Newsnight host Emily Maitlis sparking a furore with a monologue on the Dominic Cummings lockdown row.

The BBC later said the episode ‘did not meet our standards of due impartiality’.

BBC Breakfast host Naga Munchetty was also rebuked last year after commenting on remarks made by US President Donald Trump.

Match of the Day host Gary Lineker is also known for tweeting political views and opinions on his social media.

Mr Davie said: ‘We urgently need to champion and recommit to impartiality. It is deliverable and it is essential.

‘If you work here, nothing should be more exciting than exploring different views, seeking evidence with curiosity and creatively presenting testimony. Making use of our own experiences but not driven by our personal agendas. I wonder if some people worry that impartiality could be a little dull.

‘To be clear, this is not about abandoning democratic values such as championing fair debate or an abhorrence of racism. But it is about being free from political bias, guided by the pursuit of truth, not a particular agenda.

‘If you want to be an opinionated columnist or a partisan campaigner on social media then that is a valid choice, but you should not be working at the BBC.’

He warned there was ‘no room for complacency’ over the broadcaster’s future.

The new director-general added that it was ‘still relevant in millions of people’s lives’.

But he insisted that ‘as we look to the future, there is no room for complacency. The truth is that for all our extraordinary efforts there is significant risk.

‘If current trends continue we will not feel indispensable enough to all our audience. We must evolve to protect what we cherish.

‘The evidence is unequivocal – the future of a universal BBC can no longer be taken for granted.’

He also said the broadcaster has spread itself ‘too thinly’ amid competition from streaming giants.

He suggested it is time to ‘stop’ making some shows and called for an end to ‘dangerous’ navel-gazing at the BBC.