The Parliamentary Under-Secretary of State for Culture, Media and Sport (Stephanie Peacock)
I am pleased to respond to this debate, and I congratulate the hon. Member for East Londonderry (Mr Campbell) on securing it. The debate is a good opportunity to discuss the upcoming charter review, which we intend to launch next year. He has raised a number of important areas related to the BBC, which I will respond to, but I would first like to make a few broad points about the contribution that the BBC makes to the UK.
The BBC supports our democracy, brings our communities together and helps to shape and define our nation through telling stories about the lives of people in all parts of the UK. It also plays an important role in providing trusted news as the UK’s most trusted news brand, reaching around 95% of UK adults each month. It is one of Britain’s biggest cultural exports and an important soft power asset, with the BBC World Service providing essential, trustworthy news through 42 language services to millions of people across the globe. That is a topic I was pleased to discuss today while giving evidence to the joint sitting of the Culture, Media and Sport Committee, the Foreign Affairs Committee and the International Development Committee. Indeed, I see one of the Committee members in the Chamber right now.
The BBC has provided some of our most memorable moments across television, representing stories from every part of the UK. It acts as a linchpin in the UK’s flourishing creative economy, investing in the skills, training and creativity that drive growth across all regions of the UK. Last year, it contributed £4.9 billion to the UK economy and supported over 50,000 jobs, with more than half of this impact outside London, and it invests more in original British content than anyone else.
I shall move on to some of the points the hon. Member raised. I note his view on increasing the accountability of the BBC as part of the charter review, and it is important that we get this area right. The charter review will explore BBC accountability, particularly in terms of ensuring that the BBC is accountable to those who fund it: the British people. As a public service broadcaster that is hugely important to public life, the BBC must be responsive to its audience. The BBC has a duty to deliver impartial and accurate news coverage and content under the charter, which specifically sets out that it must observe high standards of openness and seek to maximise transparency and accountability.
Since 2017, Ofcom has regulated the BBC and has taken action to make sure that it is held to account. Ofcom is required to prepare and publish an operating framework for the BBC, which must contain provisions to secure the effective regulation of the BBC’s activities.
Under the BBC’s new operating licence, introduced last year, the BBC is required to report more comprehensively on its performance and its plans for services. The Government welcome Ofcom’s recent report into the BBC’s performance in 2023-24 and note its findings, including where Ofcom has identified areas of improvement for the BBC. It is for Ofcom, as the BBC’s independent regulator, to monitor the BBC’s progress in these areas. The charter also includes provision for the National Audit Office to examine the economy, efficiency and effectiveness with which the BBC uses its resources in discharging its functions.
The hon. Gentleman spoke about commissioning. A key principle of the BBC’s success is its editorial and operational independence, which must be upheld. That is why decisions on commissioning and programming are for the BBC board, not for the Government. Being operationally and editorially independent, BBC commissioning is rightly a matter for the BBC. It is not within the Government’s scope to intervene in day-to-day commissioning decisions, but the charter requires the BBC to open up content production to allow non-BBC producers to compete for BBC projects. By the end of the current charter in 2027, 100% of BBC television and 60% of BBC radio will be fully open to competition to support a diverse range of stories and views on the BBC.
Mr Gregory Campbell
The Minister talks about the BBC needing to open up contracts to non-BBC personnel. Does she accept that this needs to be seen to be done on an equitable and fair basis, so that people beyond the reach of the BBC, as well as internals, have an equal opportunity to bid for contracts?
Stephanie Peacock
Yes, I do accept that, and it is something we can look at as part of the charter review. Of course, Ofcom, as the BBC’s independent regulator, holds the BBC to account on its performance and its commissioning practices, and on the market impact of those.
The hon. Gentleman mentioned BBC pay, which I appreciate is a matter of debate and controversy. The royal charter requires the BBC, as he rightly said, to publish the salary details of all BBC staff and talent paid over £178,000. Salary disclosures of this kind were made for the first time as part of the 2016-17 annual report. The salaries of BBC staff are also a matter for the BBC and the individuals themselves, not for Government. However, the charter review will look again at the transparency of this issue.
Jim Shannon
In my intervention on my hon. Friend the Member for East Londonderry (Mr Campbell), I referred to impartiality and BBC bias. Many of my constituents feel that the BBC is not impartial. Under the charter, is it possible for people to express such concerns, and for those concerns to be investigated?
Stephanie Peacock
Of course, and there is a complaints procedure right now. A complaint goes to the BBC first, and it can then be escalated. If the hon. Gentleman’s constituents are not happy, they can then go to Ofcom. As part of the charter review, it is absolutely right that all members of the public can have their say. We will be launching a public consultation so that his constituents, and indeed people across the country, can have their say, because we want the BBC to represent the people it serves.
Next year, the Government will launch a charter review with the aim of addressing some of the challenges we are discussing today and delivering a renewed charter by the end of 2027 that will support the BBC not just to survive but to thrive long into the future. This will be the ninth charter review in the BBC’s history. It will be an opportunity to consider what the BBC is for, how it delivers for audiences and how it should be funded, governed and regulated against a rapidly changing media environment. The charter review will also look to uphold the BBC’s independence and ensure that it maintains the public’s trust.
Charter review is a well-established process, and our next step will be to publish the terms of reference next year, setting out the objectives we wish to achieve. We will ensure that we take all relevant views into account as part of the review. With that in mind, next summer we will also launch a public consultation, as part of which we will encourage everyone to share evidence. We need to have a truly national conversation and ensure that the BBC is reflective of the people it serves, wherever they come from and whatever their background. Once we have consulted widely, considered the views of stakeholders and assessed the evidence, we will outline our policy direction for the next BBC charter in a White Paper in 2026.
There will also be an opportunity to place a draft charter before both Houses before the current charter expires in 2027. The devolved Governments will be a key part of the conversation and I look forward to visiting Northern Ireland in the coming months. I have met the Northern Ireland Minister for Communities online, and I welcome further conversations with my devolved counterparts.
As we address vital issues about the future of the BBC, we must ensure that there is a sustainable funding model that is fair to those who pay for it. We will consider that area as part of the upcoming charter review. The media landscape has changed radically since the current charter was introduced in 2017, and the BBC faces key challenges to its sustainability. We cannot ignore the fact that the challenges to the funding model in its current form are increasing, and we are fully committed to retaining the licence fee for the rest of this charter period. However, for the BBC to succeed, it must have sustainable funding to allow it to adapt and thrive in a changing media landscape.
We are clear that what the BBC does and what it can achieve are inextricably tied to how it is funded, and those issues should be considered together. The charter review will be an important part of making sure that the BBC is supported to do that. The Government are keeping an open mind about the best solutions. As my Department’s work progresses, we will be working closely with the BBC and engaging with other broadcasters, stakeholders across the creative industries and the British public to inform our thinking.
While audience trends are changing, there are still millions of households that continue to rely on digital terrestrial television, also known as Freeview. I am glad to say that the continuity of the technology has been secured in legislation until at least 2034. The need to maintain traditional broadcasting platforms, at the same time as there is a shift to online viewing, is resulting in more choice for audiences, but it is creating financial pressures for our broadcasters, including the BBC.
Our project on the future of TV distribution will explore those issues. We will analyse how people receive their television programmes now, and through the next decade. It will help us to ensure the continuity of a sustainable TV ecosystem and the best outcome for audiences. As part of the project, I am glad to be chairing a new stakeholder forum on the future of TV distribution, allowing me to hear from TV stakeholders, including the BBC, infrastructure providers and groups that represent the interests of audiences. I will, of course, raise the issue of TV distribution when I next meet my counterparts in the devolved Governments.
The charter review provides us with an exciting opportunity to engage the widest possible range of voices on the future of the BBC. The Government are committed to having a truly national conversation as part of the charter review. It will be an honest, supportive and respectful debate that can give the public confidence in their BBC. We will provide more details on what that looks like and how stakeholders can contribute their views in due course, when we launch the review next year. The hon. Member for East Londonderry has contributed to that national conversation today, and for that I thank him.
Question put and agreed to.