“I have a message for them: make a decision."
Amol Rajan has warned that the BBC is “screwed” unless its licence fee funding model is replaced, as the broadcaster faces deeper financial pressures and widespread job cuts.
The outgoing Today programme presenter said the BBC’s finances were “much worse than people realise”, with declining licence fee revenue putting increasing pressure on the corporation.
At the Edinburgh TV Festival, Rajan warned that the BBC’s latest round of job cuts was “just the beginning”. He said the broadcaster faced “worse to come” without political action over its future funding.
His comments come as BBC director-general Matt Brittin prepares to oversee significant cuts across the organisation. Plans include slashing 550 roles and closing programmes, with around 2,000 jobs, equivalent to 10% of the workforce, potentially being lost as part of a wider cost-cutting drive.
Amol Rajan argued that reducing spending alone would not solve the BBC’s problems. He urged political leaders to make a decision about the corporation’s long-term funding model.
He said: “The [BBC’s] finances are much worse than people realise.
“What we need is political leadership, and this country has new political leadership, and I happen to know they’re listening.
“I have a message for them: make a decision. Stop dithering. This could not be more urgent and this could be a great legacy for you.”
Rajan also criticised the BBC’s existing licence fee model and backed the possibility of turning the broadcaster into a mutual. Under such a structure, the BBC could operate more like employee-owned organisations such as John Lewis or the Co-op.
He added: “Under the mutual model, it actually would belong to all of us.”
Culture Secretary Lisa Nandy is currently leading a review of the BBC’s funding ahead of the renewal of its Royal Charter. She has previously expressed support for mutualisation as a way of encouraging “genuine public representation and participation”.
Rajan gave a stark assessment of the challenges facing the BBC, warning that the broadcaster was standing over a “vast chasm called the internet” while its traditional funding base continued to weaken.
The BBC’s latest annual report showed that more than half a million people stopped paying the licence fee during the year. The annual cost increased to £180 in April, adding further pressure as fewer households continue to pay.
Rajan criticised successive governments for failing to address the BBC’s financial challenges as licence fee income declined.
He said: “When it comes to the BBC, we have not had benign neglect. We have had a kind of malicious neglect.”
Despite his concerns, Rajan defended the BBC’s importance and argued that there remained a strong case for preserving the broadcaster in the digital age.
He said there was a “patriotic case” for the BBC, adding: “The BBC isn’t the only bridge, but it’s one of the best, and we’ll be stranded without it.”
Rajan also remained optimistic about the corporation’s prospects if its funding problems can be resolved.
He said: “I think my message to the BBC would be that if the money is sorted, you can still be the best in the world.”
The warning comes shortly before Amol Rajan steps down from Today next week to launch his own online media venture, The Amol Rajan Connection, while continuing to host University Challenge.
The presenter has also signalled that he believes the future of media increasingly lies away from traditional broadcasters.
Meanwhile, Brittin acknowledged the scale of the financial challenges facing the BBC during his appearance at the Edinburgh TV Festival.
The new director-general admitted he had not initially understood the “severity” of the cuts required.
Brittin praised the BBC’s creative talent while acknowledging the seriousness of its financial position. He said he was “impressed by the magic of the creativity and the talent” at the corporation but also “concerned by the financial situation”.
He also argued that the BBC must adapt more quickly as audiences increasingly consume content through digital platforms. The broadcaster, he said, needs to move away from its “inward-looking” position and become more willing to experiment.
He added: “You’re publicly funded, and the charter rightly requires a level of quality and responsibility that’s higher than others. I completely get that. What that can lead to is an aversion to risk.
“We need to move faster through experimenting and learning, and that’s one of the things I want to bring to the BBC is a sense of openness and partnership to find a way to the future together.”
