The BBC could lose money originally ring-fenced to fund rural broadband, according to new government plans.

The Guardian reported that the £60 million fund could instead be handed to private firms such as Netflix and Amazon to encourage the production of children’s TV.

Ministers say public service broadcasters’ investment in children’s television has fallen 40 per cent since 2006 and many programmes shown now are repeats.

The BBC has warned that financing production in this way amounts to a public subsidy for private enterprise. The Conservative former culture minister Ed Vaizey also expressed his concerns: ‘This kind of fund has not been successful elsewhere, and I have sever doubts that this £60 million will end up being money well spent.’

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→ The Guardian - BBC says Amazon and Netflix may get surplus rural broadband funds