MPs are calling for the BBC licence fee to be extended beyond television and have recommended that the BBC charter review be scrapped and made permanent. The recommendations were made by the Digital, Culture, Media and Sport Committee (DCMS) ahead of the Government finalising its proposals for the next BBC royal charter.
The proposals, due later this year, will explain how the corporation will be governed, regulated and funded from 2028 onwards. The DCMS said the BBC should be more independent from political interference, suggesting the broadcaster should scrap political appointments to its board and consider appointing its chair independently.
Permanent charter recommended
The report states: “The fact that the BBC’s existence is called into question every 10 years creates an avoidable opportunity for political interference which has damaged the perception of the BBC’s independence.
“It also creates a disproportionate distraction for the BBC when it needs to be focused on its mission to inform, educate and entertain. We therefore recommend the next BBC charter be a permanent charter and not include an end date.”
Licence fee 'outdated'
In terms of the licence fee, the DCMS said its current model was ‘outdated and no longer fit for purpose’. They believe the BBC should reduce the cost from its current price of £180 per year.
One possible solution suggested is a household levy, which would see homes forced to pay the licence fee regardless of whether they used the corporation’s services. However, the DCMS noted that it would be difficult to introduce.
The report added: “The best next step is for the Government to reform the licence fee, so it reflects modern media consumption and is no longer linked to a television set. This would be an easier sell to licence fee payers if expanding the base is paired with a drop in the individual cost.
“There are strong arguments for a household levy, but it would be a difficult model to introduce in the short-term given the significant implementation challenges. Nevertheless, the Government should not have ruled out this option entirely.”
Other recommendations
Another recommendation is that the BBC develops an international TV licence to ‘maximise the potential global audience and increase its revenue’.
According to the report, BBC director-general Matt Brittin told the committee that the corporation had lost around £1.2 billion to £1.3 billion of licence fee funding over the last decade, 40% of which was due to fewer households paying.
Other recommendations include that the BBC ‘should not be paying over the odds for overseas content’ in a bid to attract younger viewers, the Government should ‘take back full funding for the BBC World Service with a view to maximising its potential’, and the BBC should consider opening up the iPlayer to content from other public service broadcasters such as Channel 4.
'This is a pivotal moment for the BBC'
Dame Caroline Dinenage, chairwoman of the DCMS, said: “This is a pivotal moment for the BBC. Continue along the current path and we condemn a national institution to managed decline, squandering the immeasurable benefits it brings to our economy and society.
“For all its faults, the BBC drives our creative economy, supports our democracy through media sovereignty and delivers world-class entertainment and moments that bring us together.
“Like a much-loved family member, we may criticise and grumble about the BBC but we would miss it enormously if it were no longer here for us. The next charter can provide a springboard for the BBC’s success for years to come.”
She continued: “The Government must ensure the broadcaster has a sustainable and universal source of funding. The BBC can play its part by sweating its assets and boxing clever for the licence payer by ending illogical practices such as outbidding commercial rivals for overseas hits such as Suits, Schitt’s Creek and Scooby Doo.
“Now is the time for the Government and BBC together to grasp the opportunity to create a leaner, more efficient broadcaster that is equipped to compete on the global stage and is a beacon of trust both at home and abroad.”
What the BBC has said
Issuing a response, a BBC spokesperson said the corporation welcomed the report, which they said ‘makes some important and interesting recommendations on the future of the BBC’.
They said: “We have consistently argued that the current funding model is outdated and needs reform, so we welcome the committee’s support for maintaining universal funding while overhauling the licence fee.
“We are also pleased to see their recognition of the vital work of the World Service, with a clear recommendation that responsibility for funding should return fully to government. At a time of huge disruption in the media, the BBC’s trust, reach and creative strength remain unparalleled.
“But we also recognise the need to evolve and move faster towards the future. We will reflect on the committee’s report and continue to engage with the Government to secure a BBC that delivers for everyone for generations to come.”
