The United Kingdom government is reviewing potential reductions to BBC World Service funding as part of its spending assessment, with the broadcasting organization preparing for budgetary adjustments following recently announced reductions in overseas aid allocations.

The head of the BBC, Director-General Tim Davie, has indicated that the organization is preparing to discuss with Foreign Office representatives the consequences of the decision, reported the Financial Times newspaper on the weekend.

"In the last few days, we have been asked to prepare for further engagement with the FCDO (Foreign, Commonwealth and Development Office) on the impact of the reduction in Overseas Development Spending," he wrote to the chairs of parliament's international development, culture, and foreign affairs committees. "We will be happy to keep you posted if this results in financial implications on the World Service in 2026-27 and beyond."

The majority of the World Service grant is derived from the official aid budget, while a smaller portion comes from alternative funding sources within the Foreign Office.

Government representatives indicated that reductions to the BBC World Service grant are being evaluated among other options, but emphasized that final decisions remain pending.

Prime Minister Keir Starmer unveiled proposals last month to reduce UK aid spending to support an expansion in defense funding from 2027.

Government officials are currently looking to identify approximately 6 billion pounds ($7.8 billion) in reductions from within the official development budget across the next two years.

A government source told The Guardian newspaper last week that the previous spending review included a 31-percent increase in government funding for the BBC World Service in 2025/26, bringing it to 137 million pounds, which was 20 million less than the BBC had asked for during negotiations.

Senior BBC officials are worried that the government will utilize the overseas aid reductions as a means to implement additional constraints on the World Service budget in the latter part of this year.

Approximately two-thirds of the World Service's operational costs are currently covered by the license fee paid by the public, while the remaining portion is provided through government grants, noted The Guardian.

The World Service announced job cuts in January as part of initiatives to reduce costs. Other measures included reductions to BBC Monitoring, a service that tracks and analyzes global media coverage.

Foreign Secretary David Lammy told the FT last week that the entire government aid budget faces "line by line" examination before June's spending review report.

Lammy has historically been a strong advocate for the BBC, and had criticized the former Conservative Party government for undermining the broadcaster before last summer's general election.

A statement from the Foreign Office said: "The government highly values the BBC World Service, which reaches a global audience of 320 million, and remains the world's most trusted international news service."