that this license fee announcement would be the last. today, she appeared to row back, simply saying discussions on future funding must begin. suggested replacements include a subscription service, perhaps with a government grant to fund less commercial programming, or even allowing the bbc to run adverts. the biggest living thing. quality broadcasting doesn t come cheap. freezing the licence fee for two years is a real terms annual cut of nearly half a billion pounds by 2027 according to one media analyst, enders that is around the same as the bbc spent on all its radio output last year. we re going to have to address how we do what we do differently and there will have to be changes and consequences. if you diminish capital resources, there are going to be effects. the bbc has already had ten years of real reduction by about 30%. whatever the funding after 2027, cuts are inevitably coming as a result of this latest settlement.