The BBC licence fee could soar to £191 due to the inflationary shock from the US-Israeli war with Iran, potentially pushing the cost for watching TV in the UK ahead of Germany.

Viewers face a major rise in the £180 a-year charge after the Bank of England warned that a spike in energy prices due to the continuing Middle East conflict could see inflation hit 6.2 per cent next year, when the licence fee is next due to be uprated. The cost already rose by £5.50 in April this year but could go up by £11 next year.

A high, inflationary rise could give the BBC a £260m windfall at a time when it is cutting staff and programmes in a £600m savings drive. But ministers would face a political backlash if they awarded the BBC a full 6.2 per cent increase during a cost of living crisis.

Shorts

A £191 licence fee would make the UK the second-most expensive country to watch TV across Europe, edging ahead of Germany.