BBC Funding

Debate between Baroness Merron and Baroness Bonham-Carter of Yarnbury

Tuesday 12th December 2023 Lords Chamber

[Baroness Merron (Lab)]

My Lords, we on these Benches are clear that the BBC must continue as a universal, publicly owned and publicly funded public service broadcaster, with funding that is both sufficient and sustainable. After flirting with the privatisation of Channel 4, the Government’s somewhat chop and change approach to BBC funding is creating significant uncertainty for our valuable public service broadcasters and the wider creative ecosystem. Have the Government undertaken an assessment of the likely impact of the additional pressure being placed on BBC budgets? Is this likely to lead to more journalist job cuts, disruption to commissions and supply chains, or harm to the organisation’s soft power across the world? If an assessment has been undertaken, will it be published?

The BBC has already scaled back some of its public service output in response to the licence fee freeze. This has seen, for example, local radio services streamlined. From my time as an MP in the other place, I recall how local communities had the greatest trust in local TV and radio stations as a source of news and information. Does the Minister agree with the continuing importance of local provision of news and information at a time when fake news proliferates, particularly online, and when many local newspapers are scaling back their operations? To turn to the national sphere, most recently, the format of “Newsnight” has changed, with its important investigative journalism scaled back and moved elsewhere.

The Government’s desire to focus on the cost of living is understood, but it is their actions which have stretched household budgets to breaking point. Does the Minister accept that this change in how the licence fee is calculated will have a negligible impact on working people’s finances, through a saving of just £4 a year, while having a far bigger impact on the BBC’s ability to fulfil its public service duty and role?

We also understand the desire of the Secretary of State to launch the future funding review. She is, after all, not the first person to have had that idea, but many lack confidence that the process is about getting the right result for the BBC. What steps will be taken to shore up confidence in the review among stakeholders, staff and the public?

We have learned so much from the past few years about what it means to be a resilient society, not least because of the pandemic, when the BBC really came into its own, not just as a broadcaster but as an educator, a trusted source of information and a connector. The Government’s resilience framework promises a direction of travel which incorporates prevention, preparedness, response and recovery, no matter what the disaster. Can the Minister indicate whether there has been consideration of the impact of the BBC’s funding on all these aspects of resilience?

Our great broadcasting institutions, their employees and the wider creative sectors that they do so much to sustain deserve far better than they are getting currently. Labour, on the other hand, will work with, rather than against, the BBC and other public service broadcasters to grow our creative industries and ensure that all parts of the UK benefit from their output. That is the essence of public service broadcasting.

[Baroness Bonham-Carter of Yarnbury (LD)]

My Lords, in 2022, the Government made a firm commitment that, after two years of freezing the licence fee, they would allow it to rise for the following four years according to the rate of inflation. The BBC kept its side of the bargain, despite having to make heavy cuts. The Statement repeated here today makes it clear that the Government have not. The Government’s excuse—that their below-inflation settlement is about helping with the cost of living—will not wash. The difference between an inflation- linked settlement and the actual one is 45p per month, yet this will deprive the BBC of £400 million over the next four years, causing enormous damage to an institution already reeling under successive cuts by this Government. There are more direct ways to help those who are trying to deal with the burden of inflation and increased energy bills.

What does this mean? It means less investment in the nation’s creative industries, fewer jobs created nationwide, more job cuts at the BBC and, almost certainly, fewer journalists dedicated to checking facts and reporting impartially, which is so important in the world of the internet. The BBC feeds into the Government’s levelling-up agenda, making programmes across the country while boosting local economies and utilising local skills—except that cuts to BBC local radio, already in train, mean that the spotlight on the local level is increasingly dim and will grow dimmer, thanks to today’s Statement.

As mentioned by the noble Baroness, Lady Merron, another casualty is investigative journalism. I used to work on “Newsnight”; we criss-crossed the UK and the world seeking out stories and telling them in depth, not just reacting. Now, it is another current affairs programme shunted off to an existence solely in the studio. As my former colleague Michael Crick—he may not be the favourite person of some of your Lordships, but he is one of mine—noted:

“If I were a dodgy politician or a crooked businessman or a lazy civil servant, I would rest a bit easier in my bed”.


I mentioned the world. International reporting is already shrinking, and believe me it will shrink further. Just look at how the terrible events in the Middle East have led to Ukraine virtually disappearing from the airwaves. Major events have been occurring in Afghanistan, Sudan, Myanmar and Latin America: we hear nothing. Bringing the world to domestic audiences is so important. As a consequence, we are more equipped to understand, connect and empathise with what is going on beyond UK borders. Ignorance is not a good idea. It is fed by the echo chamber of the internet. Does the Minister not agree?

Of course, the BBC is not just about journalism, important as that is. It is the backbone of our world-beating creative industries and the single largest investor in original UK content operating in the UK. Innovation is often overlooked. It was the BBC that came up with the idea of television. My noble friend—if I may call him that—Lord Birt was behind BBC Online and the BBC has continued to lead, with the likes of the iPlayer and BBC Sounds. It led on rolling out the digital switchover and created two consumer platforms to help make online TV available to all UK audiences. Every £1 of BBC R&D spend alone contributes to £9 in value beyond. Can the Minister explain why this is not something to support?

Then there is soft power. Through the World Service and the programmes the BBC exports, it is central to promoting the UK around the world and is the envy of the world. The Government’s integrated review, published this year, boasted correctly that the BBC is

“the most trusted broadcaster worldwide”.

Considering all these positives, have the Government assessed the impact of these unexpected cuts on the BBC? Can the Minister say where he sees them coming from and what he would be happy to do without?

Finally, on the announced review of the BBC’s funding model, it is of course appropriate that the funding model for the BBC should be investigated, but does the Minister think it is right for the Government to do so without any public consultation and in the space of a few months? Who will be on the expert panel and how will they be chosen? These Benches have long proposed that the funding process, as well as the appointment of the BBC chair, should be taken out of government control and handed to a genuinely independent body. As David Attenborough said:

“The basic principle of public service broadcasting is profoundly important. If we lose that we really lose a very valuable thing”.