LONDON (Reuters) – The television license fee levied by British state broadcaster the BBC could be cut as part of the British government's austerity drive, Culture Minister Jeremy Hunt said.
The BBC, which has faced criticism in the media and among the public over the high salaries of its top stars and senior management, received 3.5 billion pounds ($5.37 billion) in license-fee income in its last financial year.
"The BBC will have to make tough decisions like everyone else," Hunt said in an interview in Saturday's Daily Telegraph newspaper. "There are huge numbers of things that need to be changed at the BBC. They need to demonstrate the very constrained financial situation we are now in."
The Conservative-Liberal Democrat coalition government has pledged to reduce waste across the public sector as it tackles a budget deficit running at about 11 percent of national output, and has announced huge cuts to public spending.
Discussions between the BBC and the government over the broadcaster's next funding settlement, which would set the price of the license fee from 2012, are due to take place next year.
Asked if the fee could be lowered, Hunt said: "Yes I could. Absolutely. I think that's the discussion that we need to have."
"The BBC should not interpret the fact that we haven't said anything about the way license fee payers funds are used as an indication that we are happy about it. We will be having very tough discussions."
The license fee, currently 145.50 pounds, is levied on all television-owning households in Britain and provides the bulk of the BBC's income.
The BBC has already taken some steps to reduce spending, announcing a plan to cut management pay by 25 percent over three years and proposing to close its defined-benefit pension scheme for new joiners.
The BBC's governing body has also said the broadcaster's executive should publish the salaries of its highest earners.
Hunt said the National Audit Office should be given access to the BBC's finances to ensure greater scrutiny of how it spends public money.
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