U.K. launches BBC funding review, as broadcaster reels from Trump lawsuit

Britain launched a review into the BBC’s funding on Tuesday (December 16, 2025), seeking to “future-proof” the broadcaster which is reeling from a lawsuit launched by U.S. President Donald Trump.

Mr. Trump sued the BBC for up to $10 billion in damages over edited clips of a speech which he said defamed him, according to a filing in a Miami federal court on Monday (December 15, 2025). The BBC is defending the case, having already apologised to Mr. Trump.

As well as the Trump lawsuit, the broadcaster is battling competition from streaming giants and digital video platforms.

Also Read | What to know about the BBC’s latest crisis after its apology to Donald Trump

Currently the BBC’s funding mainly comes from a £174.50 ($234) annual charge imposed on all viewing households, but the number of licence holders has been falling.

The government said on Tuesday (December 16, 2025) it was considering reforms, including options to generate more commercial revenue.

It will also examine options for funding the World Service, which broadcasts to 453 million people globally each week.

Launching the review, Culture Minister Lisa Nandy said the BBC must reflect the whole of Britain, be an engine for economic growth and be funded in a sustainable and fair way.

“The BBC must remain fiercely independent, accountable and be able to command public trust,” she said.

The broadcaster operates on the basis of a charter which is reviewed every decade. The current one expires in December 2027.

The BBC has been rocked by scandals in recent years, although polling published by the government found 60% of British adults were satisfied with BBC News.

As well as the Trump lawsuit, news anchor Huw Edwards resigned last year after he pleaded guilty to possessing indecent images of children, while a documentary about children’s lives in Gaza breached the British public broadcaster’s editorial guidelines on accuracy.

BBC Director General Tim Davie, who resigned over the Trump complaint but has not yet left, said the BBC welcomed the outline of the government’s reforms.

“At the BBC, we want change, so we can continue to deliver for the U.K. for generations to come,” he said.

Also Read | Trump says his negative media coverage is ‘illegal’

Trump legal action is a matter for the BBC: Starmer’s office

British Prime Minister Keir Starmer’s office on Tuesday (December 16, 2025) said that any legal action against the BBC was a matter for the broadcaster but the government supported its independence.

“Any legal action is a matter for the BBC itself. They’ve made clear they believe there’s no case around the broader point of defamation or libel, but that’s for them and their legal teams to engage with,” a spokesperson for Mr. Starmer told reporters.

“We will always defend the principle of a strong, independent BBC as a trusted, relied-upon national broadcaster, reporting without fear or favour. But as we’ve also consistently said, it’s vitally important that they act to maintain trust, correcting mistakes quickly when they occur.”