BBC faces headwinds as Whittingdale is appointed culture secretary

By Maytaal Angel LONDON (Reuters) - The BBC faces renewed funding concerns following the appointment of John Whittingdale as British culture secretary, though there remains little chance of a major overhaul of the public broadcaster. Whittingdale, a critic of the corporation's licence fee, chaired the cross-party Culture, Media and Sport Committee, which recommended in February that the fee should eventually be scrapped and that the publicly funded broadcaster should reduce its output. The recommendations were part of a report into the role of the BBC following a string of scandals and industry changes. The BBC's remit and independence are underpinned by a Royal Charter that runs out at the end of 2016. "There's no question that the BBC will have less funding after the end of next year. My suspicion is it (the licence fee) will be frozen again, which means in effect a reduction," said Steven Barnett, professor of communications at the University of Westminster. He added, however: "There's a possible silver lining in that he (Whittingdale) was a very good chairman of the Culture Select Committee, so he'll be up to speed with all the issues and might be open to reasoned debate." The report on the BBC written under Whittingdale's stewardship did moderate its licence fee recommendations, saying that the fee was still the most suitable funding method in the short term. It is expected to remain in place at least until the end of the next charter period in 2026, though the report said it should eventually be replaced by a wider broadcasting levy that could also support other sources of news. The BBC's main commercial broadcasting competitors are ITV Plc , Sky Plc , Virgin Media and BT Group Plc . "I'm not sure they (Whittingdale and Prime Minister David Cameron) will see it as a sensible course of action to pick a fight with the BBC. I think they'll carry a big stick but they'll be careful before doing anything major," said Ivor Gaber, professor of journalism at the University of Sussex. The BBC has a central presence in British cultural life but the 145.50 pound annual licence fee, which is paid by every UK household with a television and brings in 3.7 billion pounds a year, jars with some viewers and politicians. Commenting on Whittingdale's appointment, the BBC's press office said: "We’re looking forward to working with the new secretary of state." (Reporting by Maytaal Angel; Editing by Kevin Liffey)