Culture Secretary Lisa Nandy has signaled the government's consideration of a "mixed funding model" for the BBC, blending the current licence fee with revenue from commercial ventures and subscriptions. At a Times Radio and Sunday Times event during the Labour Party conference in Liverpool, Nandy explained she's scrutinizing "a whole range of options" for the BBC's next charter period. However, she dismissed the possibility of funding the broadcaster through general taxation, cautioning it would expose the corporation to political manipulation.

"The only thing we’ve ruled out is general taxation," she stated. "If you had a grant from government each year, it would be far too easy for politicians to pull that funding and use it as a stick to beat the BBC with. It’s essential we protect the BBC from that."

Nandy emphasized the BBC's significance as one of Britain’s two most vital national institutions – alongside the NHS – asserting that any reform must safeguard its independence and universality. The licence fee presently contributes approximately £3.7 billion, or 65 per cent of the BBC’s income, though evasion has surpassed 10 per cent and the number of payers decreased by 300,000 last year.

This review precedes the next Royal Charter renewal in 2027, with the terms of reference anticipated before the year's end. Nandy’s remarks suggest the BBC might transition towards a hybrid model, integrating public funding with commercial partnerships and paid access to select premium content — similar to strategies already implemented by European broadcasters like Germany’s ARD/ZDF, which substituted the licence fee with a universal household levy.

She also emphasized the need for improved BBC accountability following recent editorial controversies and affirmed plans to prohibit serving politicians from presenting news programmes, arguing that channels such as GB News obscure the distinction between impartial reporting and political commentary. Nigel Farage, the leader of Reform which has topped several recent opinion polls, continues to present a nightly show on GN Mews.

Despite her critique of recent BBC leadership, Nandy acknowledged that Director-General Tim Davie had “stepped up” in response to concerns, adding that the corporation “matters too much” to be undermined by lapses in editorial standards.