The Culture Secretary has given a key update on the future of the BBC TV licence - after being asked if it was ‘finished’. There are 23.3 million TV licences in force across the UK, marking a year-on-year drop of 539,000 active licences.

And the BBC Director General has also cast doubt on the future of the licence, describing it as a ‘busted flush’. With the rise in paid-for streaming services and the potential for a lot fewer younger viewers watching ‘live’ TV, a number of ideas have been floated - with the Social Market Foundation suggesting replacing the current £180-a-year licence fee with an £11 monthly broadband charge. This would cost about £132 a year—cheaper for current licence payers—but would force non-viewers and households with internet access to pay

Appearing on BBC News today, Culture Secretary Lisa Nandy was asked: “Is the license fee finished?” She replied: “No, I don’t think the license fee is finished, but we are looking at a number of options through the charter. It is our firm intention to put the BBC on a sustainable financial footing and it hasn’t been for over a decade.”

She did say she has ruled out 'direct taxation'. On being reminded the director general said it’s a busted flush, she said: “Well, the director general is in a difficult position and I have real sympathy with him. He came into an organisation that has had to deal with a decade of falling revenues, partly because of changing viewing habits, fewer people paying the licence fee, but also because of successive government decisions, whether it’s to freeze the licence fee or to load additional responsibilities onto the BBC.

“And I think he’s right to say that you cannot expect the BBC to be able to do everything on a limited budget. However, there are certain things about the BBC that are absolutely essential to the life of this country. Whether it’s regional programming, children’s programming, or news content, the BBC is one of the most trusted outlets in the world. And for us as a government, whilst we will work with the BBC to put it on a firm financial footing through this charter, those services for us are non-negotiable, they’re provided to people in this country as of right. Uh and we’re working with the BBC leadership on that basis.”

Ms Nandy was asked about potential plans - including whether people who say they don’t use the BBC will be told they’ll still have to pay. She was also asked: “Or are you looking at this idea of funding it through attaching it to people’s internet broadband? subscription?”

Ms Nandy said: “We’re looking at a number of options. The only thing we’ve ruled out is direct taxation, partly because of the cost-of-living pressures, but mostly because we are very concerned to safeguard the BBC’s independence. You rightly challenge me and scrutinise other government ministers and me on this program, and we think direct taxation would interfere with that.”

Presenter Roger Johnson asked: “Will the internet companies accept you saying to Virgin Media or Sky, you’re going to have to put an extra 11 on your monthly subscription to pay for something that in Sky’s case is a competitive.”

Ms Nandy replied: “Well, look, that’s not an option that we’ve floated in the media. That’s something that I think the Social Market Foundation has recommended. We’re looking at a number of options. The minute that I start ruling one out, people will will suspect that there’s a master plan for others. The truth is, if it were easy to do this in a cost-of-living crisis, another government would have done it earlier. But we are determined to put the BBC on a sustainable financial footing in the fairest way we can.”

The National Union of Journalists (NUJ) this week warned the BBC risks becoming trapped in an “inescapable doom spiral” if it continues to cut more jobs. In June, the corporation announced its intention to axe up to 2,000 roles in an attempt to make £500 million in savings over two years.

Among the cuts, 550 will be from BBC News and TV and radio-related roles, which director-general Matt Brittin said he hoped would make £160 million in cost savings.

This week, it emerged that the broadcaster will cut 41 roles within its sports department, which it says is about “reducing duplication” and “simplifying operations”.

Laura Davison, NUJ general secretary, said: “The BBC’s ongoing campaign of cuts is devastating and demoralising for our members and severely undermines the broadcaster’s ability to serve audiences across the UK. The latest wave of cuts piles on the misery already being felt.

“Our members deserve better. Previous rounds of cuts have resulted in unmanageable workloads, low morale, loss of staff, and fewer opportunities for freelancers or career progression. Another round of cuts will add to that burden and stress.

“Audiences deserve better too. Millions of people across the UK now live in news deserts. We have already had major cuts to Local BBC Radio in recent years.

“Instead of cutting staffing and services to the bone, management should be focusing on securing positive reforms that guarantee a bright future for our public broadcaster.”