BBC set to appoint new chair amid licensing fee battle with government

The BBC is reportedly set to appoint a British television and radio executive as chair as it faces an uphill battle getting a licensing fee hike approved by the government.

Samir Shah, who has served as a non-executive director on the BBC board and is the current chair of One World Media, will be named as chair as soon as this afternoon, according to the Financial Times.

He will replace Richard Sharp, the former Goldman Sachs banker who left the role after a report found he breached the rules around public appointments.

Following his resignation, Sharp warned the position is fraught with danger, saying it is a “target” and whoever holds it is “vulnerable”.

The BBC chair is appointed by the government because the role is a middleman between the state-funded broadcaster and Parliament, which controls the former’s budget through a UK household licence fee.

City A.M. approached DCMS and the BBC for comment.

Last week the BBC announced it is rejigging its digital journalism offerings in an effort to save itself £500m, as traditional TV declines and inflation hits.

In January 2022, the government announced a fee settlement for April 2022 to March 2028, which froze the licence fee for two years.

Now that two years are nearly over, the new chair of the BBC will have to bargain with the government for a new license fee deal.

But both the Prime Minister and media secretary have suggested the corporation may not get the fee hike it is hoping for, as the cost of living bites consumers.