Chancellor allocates ‘increase in funding’ for BBC World Service in Budget

The BBC World Service has been given an “increase in funding” as part of the Budget that will allow for the corporation’s language services to keep going.

Under its current support package, the BBC had agreed not to close any language services on the World Service – but this condition had been set to be lifted in 2025.

The international broadcaster, owned and operated by the corporation, receives a grant of £104.4 million from the Foreign, Commonwealth and Development Office (FCDO), and is predominantly funded by the UK licence fee.

Chancellor Rachel Reeves delivered the first Labour Budget since 2010 to the House of Commons on Wednesday.

The Budget says: “In 2025-26, the (FCDO) settlement provides an increase in funding to the BBC World Service, protecting existing foreign language service provision and its mission to deliver globally trusted media, in support of the UK’s global presence and soft power.”

A BBC statement said the broadcaster “welcomed the funding”, along with being “pleased the Government has acknowledged the strong case for investing in the World Service”.

It added: “Today’s announcement will enable us to maintain all of our existing language services, to continue fighting disinformation around the world, and also to provide emergency information services to those in crisis, as we have recently done in Gaza, Sudan and Ukraine.

“However, despite today’s announcement, the BBC World Service is not immune to the immense pressures facing the rest of the BBC – freezes to the BBC licence fee, materially significant global inflation, and the need to make investments for tech and digital upkeep.”

The statement added it will “need to work through the detail”, and say more on the settlement soon.

In 2022, the BBC announced the proposed closure of around 382 posts at the World Service as well as the closure of its Arabic and Persian radio services as its language coverage moves online.

Its director-general, Tim Davie, has previously warned that the retreat of the World Service “should be a cause for serious global concern”, and claimed funding cuts have helped Russia and China broadcast “unchallenged propaganda”.

In April, an inquiry was launched by MPs on the International Development Committee (IDC) into the future funding of the service.

It has been taking written evidence, and will focus on the corporation’s influence as a soft power and look to establish whether increased Government support is needed.

Ms Reeves also confirmed funding for the Crown Works Studios site in Sunderland, a brownfield site on the banks of the River Wear that is a joint venture between Fulwell 73 and Cain International, known as FulwellCain, which was announced under the term of the last government.

She told the Commons: “We will legislate to provide additional (support) for visual effect costs in TV and film, and we are providing £25 million for the North East Combined Authority, which they plan to use to remediate the Crown Works Studios site in Sunderland, creating 8,000 new jobs.”

Former chancellor Jeremy Hunt had announced new fundraising powers, which will enable the combined authority to deliver the regeneration project as well as its funding and other projects, as part of the spring budget earlier this year.

“I’m pleased the Treasury has listened to my calls to save the £25 million investment in the Crown Works Studios,” North East Mayor Kim McGuinness said.

“That means jobs for people in a range of industries, from hairdressers, electricians, make-up artists, to set designers and script writers.”

The autumn Budget also confirmed various enhanced tax credits for independent film productions, theatres, orchestras and galleries that the previous government had revealed.

Performing arts and entertainment trade union Equity’s general secretary, Paul Fleming, welcomed the “investment in technology and new production facilities”, and hopes the increase in local government funding will help restore “slashed local arts budgets”.

He added: “The welcome change of tone on industrial strategy for the performing arts and entertainment industries – a result of Equity’s input with the Government – needs serious cash and meaningful detail.”

Mr Fleming called on the Government to provide more UK TV and film funding, as well as enact the regulating of “artificial intelligence” in the industry, and strengthen artists’ rights.