The Government has formally launched its review of the BBC's royal charter, setting out plans that could fundamentally reshape how the corporation is funded. Published on Tuesday 16 December 2025, a Green Paper from the Department for Culture, Media and Sport (DCMS) consults on wide-ranging options, including reforming the television licence fee and exploring more commercial revenue streams.
Core Proposals of the Charter Review
The royal charter, which expires in December 2027, serves as the constitutional foundation for the BBC, outlining its public purposes. The review, spearheaded by Culture Secretary Lisa Nandy, focuses on three core objectives: rebuilding public trust, ensuring sustainable funding, and driving growth and opportunity.
Key proposals under consideration include updating licence-fee concessions for certain households and examining new ways for the BBC to generate commercial income. The Government is also looking at options for sustainably funding the World Service to support minority-language broadcasting.
In a statement, Ms Nandy emphasised the need for the BBC to adapt, stating: "We want the BBC to continue to enrich people’s lives... long into the future." She added that her aims were for a BBC that remains "fiercely independent, accountable and able to command public trust," while being funded in a "sustainable and fair" way.
Independence, Conduct, and Editorial Standards
The Green Paper suggests potential new responsibilities for the BBC, including a stronger role in countering disinformation. It proposes updating the corporation's mission statement to give accuracy equal importance to impartiality, aiming to improve transparency in editorial decision-making.
This follows questions raised about a Panorama episode featuring edited footage of a speech by former US President Donald Trump, who is now suing the BBC for up to 10 billion US dollars (£7.5 billion). The Government also plans to introduce specific duties around workplace conduct, empowering the BBC board to take stronger action against misconduct. This comes months after an independent report into allegations against former MasterChef presenter Gregg Wallace.
The Future of BBC Funding
The annual licence fee has been a point of political contention for years. It was frozen at £159 before rising in April 2024 and again in April 2025 to approximately £174.50, in line with inflation. Ms Nandy has previously indicated openness to replacing the flat fee with a sliding payment scale.
The review will also consider placing a new obligation on the BBC to drive economic growth, encouraging more investment in research, development, and collaborations. The consultation has been informed by a major public poll launched by the BBC in March, which the corporation called its "biggest-ever public engagement exercise".
Outgoing BBC director-general Tim Davie welcomed the Green Paper's publication, urging stakeholders to participate. "We want change, so we can continue to deliver for the UK for generations to come," he said, advocating for a public service BBC that is independent and sustainably funded.
The launch of the review comes at a turbulent time for the broadcaster, which has seen resignations from top executives alongside the high-profile lawsuit. The public consultation is now open, marking the start of a critical debate on the future of Britain's world-renowned public service broadcaster.
