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Hunt hints at slashing BBC license fee

Culture Secretary highlights BBC's 'outrageous' waste and admits funding will be reassessed

Culture secretary Jeremy Hunt has warned of slashing the BBC's current license fee of £145.50 a year, after next year's licence fee negotiations with the government.

In an interview with the Daily Telegraph, Hunt said that the corporation had been responsible for "extraordinary and outrageous" waste in recent years. He noted that the BBC had to change its ways in view of the country's current financial situation and make tough decisions like everyone else.

Hunt warned the BBC management not to take his silence on the issue as a sign of being satisfied with it, and think that the corporation was immune from public sector cuts.

He added that he would soon send the government's public spending watchdog, the National Audit Office, to examine the BBC's accounts.

Hunt's hinting at a potential licence fee cut has been welcomed by some commercial media outlets, which have been arguing that the BBC should not be immune to the constraints of the current economic situation.

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Is anyone prepared to solve the NHS funding crisis?

As long as the political taboo on raising taxes endures, the service will be in financial peril. 

It has long been clear that the NHS is in financial ill-health. But today's figures, conveniently delayed until after the Conservative conference, are still stunningly bad. The service ran a deficit of £930m between April and June (greater than the £820m recorded for the whole of the 2014/15 financial year) and is on course for a shortfall of at least £2bn this year - its worst position for a generation. 

Though often described as having been shielded from austerity, owing to its ring-fenced budget, the NHS is enduring the toughest spending settlement in its history. Since 1950, health spending has grown at an average annual rate of 4 per cent, but over the last parliament it rose by just 0.5 per cent. An ageing population, rising treatment costs and the social care crisis all mean that the NHS has to run merely to stand still. The Tories have pledged to provide £10bn more for the service but this still leaves £20bn of efficiency savings required. 

Speculation is now turning to whether George Osborne will provide an emergency injection of funds in the Autumn Statement on 25 November. But the long-term question is whether anyone is prepared to offer a sustainable solution to the crisis. Health experts argue that only a rise in general taxation (income tax, VAT, national insurance), patient charges or a hypothecated "health tax" will secure the future of a universal, high-quality service. But the political taboo against increasing taxes on all but the richest means no politician has ventured into this territory. Shadow health secretary Heidi Alexander has today called for the government to "find money urgently to get through the coming winter months". But the bigger question is whether, under Jeremy Corbyn, Labour is prepared to go beyond sticking-plaster solutions. 

George Eaton is political editor of the New Statesman.