Culture Secretary John Whittingdale could force the BBC to sell its 50% stake in UKTV, valued at around half a billion pounds, the Sunday Times has reported.
According to senior government media sources, Whittingdale is planning a “smash-and-grab-raid” on the corporation, which would see its commercial arm, BBC Worldwide, lose around a third of its profits.
In turn, the BBC could lose a significant chunk of the £230 million that BBC Worldwide commercial activities put back into the corporation each year – which is already under pressure to make up to £700 million worth of cuts by 2021.
The Department for Culture, Media and Sport and the Treasury have looked at a UKTV sell-off several times over the last couple of years, with joint owner Scripps offering to take full control of UKTV in 2014.
However, the offer – which is understood to have been as much as £500 million – was knocked back by the BBC.
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Additionally, it is understood that Whittingdale wants the BBC to give £100 million of its annual budget for local news and children’s TV to outside suppliers.
The news comes as senior Labour MPs call for Whittingdale to lose control of UK press regulation following reports that several UK newspapers covered up his relationship with an escort between 2013 and 2014.
However, sources told the Sunday Times that the accusations had no influence on Whittingdale’s latest measures for the BBC – and that “John was appointed to be tough on the BBC. That was the point.”
The Culture Secretary is also set to publish his proposals for a new royal charter in a white paper next month.
