Leveson Inquiry: Variation Notice

Lucy Frazer Excerpts

Friday 1st March 2024 Written Statements

[The Secretary of State for Culture, Media and Sport (Lucy Frazer)]

This is a joint statement with the Secretary of State for the Home Department.

As Ministers with joint responsibility for the Leveson inquiry into the culture, practices and ethics of the press, today, under section 20(7) of the Inquiries Act 2005, we have decided to vary the final restriction order (FRO) issued by Sir Brian Leveson on 29 November 2012. This variation, at the requests of the claimants, will allow documentation provided to the Leveson inquiry to be disclosed for the purposes of the legal proceedings following the claims brought against Associated Newspapers Ltd by Baroness Lawrence of Clarendon, Elizabeth Hurley, Sir Elton John, David Furnish, Sir Simon Hughes, Prince Harry, the Duke of Sussex and Sadie Frost Law.

The following documents will therefore be disclosed for the purposes of the legal proceedings:

Daily Mail ledger cards recording payments to private investigators.

The Mail on Sunday ledger cards recording payments to private investigators.

We do not consider that it is necessary in the public interest to withhold these documents from any disclosure or publication and have decided to vary the FRO so as to allow the disclosure of these documents solely for the purposes of the proceedings. In this case, in our judgment, the public interest in promoting the just, speedy and economic resolution of the proceedings outweighs the countervailing public interests.

A variation notice has been shared with the parties to the legal proceedings, and published on gov.uk.

This decision makes no comment on the merits of the proceedings, which is wholly a matter for the courts to determine.

[HCWS303]

Oral Answers to Questions

Lucy Frazer Excerpts

Thursday 22nd February 2024 Commons Chamber

[Rob Butler (Aylesbury) (Con)]

1. Whether she has had recent discussions with the BBC board on the implementation of recommendations in the BBC mid-term review.

[The Secretary of State for Culture, Media and Sport (Lucy Frazer)]

The BBC is a hugely valued institution, and the mid-term review seeks to ensure that it continues to provide an outstanding service by improving its processes in relation to both impartiality and complaints. I regularly meet the BBC’s chair and director-general, and I will continue to use those meetings to raise these important issues.

[Rob Butler]

I started my career as a BBC reporter, and I firmly believe in the importance of our national broadcaster being both independent, particularly at moments and eras such as this, and completely impartial. However, every year, many people complain that the BBC is not as impartial as it should be, even that it is biased, and the BBC then dismisses the vast majority of those complaints. Does my right hon. and learned Friend think that the public would perhaps have more confidence in how those complaints are investigated if they were investigated independently from the outset?

[Lucy Frazer]

My hon. Friend is absolutely right. The public rightly expect the BBC to be an exemplar of impartiality. Our review highlighted issues in relation to both impartiality and complaints. As a result, the BBC will undertake significant reforms on both impartiality and complaints. At the charter review, as I have already said, we will examine whether the BBC first process remains the right complaints model.

[Kevin Brennan (Cardiff West) (Lab)]

My innate lack of deference has probably not got me far in this place over the past 22 years, but it is good to see you in your rightful place this morning, Mr Speaker.

The BBC is a great British institution, as the Secretary of State says. In considering the mid-term review, will she reflect on the importance, in this era of fake news, biased comment and social media, of having a space in which information and news are presented impartially and in accordance with editorial guidelines? The BBC is criticised from the left and the right, which probably reflects the fact that it generally gets things right.

[Lucy Frazer]

The hon. Gentleman is absolutely right that the BBC plays a critical role. It is extremely trusted not only here but across the world. The BBC is an important institution, which is why it is so important that it remains impartial. I know that the director-general agrees and, like me, thinks there is more to do. That is why, in the mid-term review, we set out things that the BBC continues to need to look at. The BBC agrees with our mid-term review and has accepted all our recommendations.

[Selaine Saxby (North Devon) (Con)]

2. What progress her Department has made on introducing a national registration system for short-term lets.

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[Dame Caroline Dinenage (Gosport) (Con)]

9. What discussions she has had with representatives of the creative industries on the impact of AI on that sector.

[The Secretary of State for Culture, Media and Sport (Lucy Frazer)]

I recognise the enormous potential of AI, but also its risks. I have had extensive engagement with the creative sector on these issues, including a series of roundtable talks on AI with, among others, media, music and film representatives. I am now working closely with the Secretary of State for Science, Innovation and Technology on a programme of further engagement with the sector.

[Dame Caroline Dinenage]

I thank the Secretary of State for that answer, but creators across the creative industries are concerned about AI developers, some of whom are worth as much as $100 billion, using their works without consent and without compensation. The inability of the Government’s working group to agree a code of practice on AI and intellectual property fuels concerns that the status quo is working only for the developers. This will be a growing problem. If a voluntary code is not going to be possible, how will the Government and her Department in particular ensure that creators will be paid fairly when their work is exploited?

[Lucy Frazer]

I understand this issue and the concerns that my hon. Friend has mentioned. I know that, as Chair of the Culture, Media and Sport Committee, she understands and appreciates these matters. I want to assure her that the conclusion of the initial public offering working group is absolutely not the end of our work to find an appropriate regulatory solution for AI. We are absolutely committed to ensuring that AI development supports rather than undermines human creativity. For example, we will be focusing on ensuring greater transparency from AI developers and that AI outputs are properly attributed. It is also right, as she highlights, that creators should be compensated for their work.

[Allan Dorans (Ayr, Carrick and Cumnock) (SNP)]

Good morning, Mr Speaker. AI firms are committing large-scale abuse of copyrighted material, using copyrighted images and pieces of media to train their AI tools without consent or compensation for copyright owners. The United Kingdom Government say that they want to reduce barriers to AI companies, but that can only come at the expense of creators and artists. How does it make sense to sacrifice the 10% of UK GDP that comes from the creative sector in favour of less than a quarter of a per cent of GDP that AI produces?

[Lucy Frazer]

I recognise the point that the hon. Member makes in relation to the importance of protecting creative rights—the creative ingenuity that is such an important part of both our British culture and economic value. That is why I am hearing from the sector, and why, in the Government’s AI White Paper, we recognise the importance of ensuring greater transparency from AI developers. We are continuing to work on that across Government.

[Mr Speaker]

I call the shadow Minister.

[Sir Chris Bryant (Rhondda) (Lab)]

I am sorry, but the Government’s answer to the Chair of the Culture, Media and Sport Committee was a load of hot air that could have been written by ChatGPT, except ChatGPT would have done a better job of it. The truth of the matter is that the Government’s flagship on AI as it relates to creative industries, which is meant to be protecting the moral and economic rights of artists, musicians, and authors, while at the same time recognising the important advances that AI can bring, has sunk. Last June, the Secretary of State said that if the code of practice was not achieved, legislation could be considered. So, in the words of Paul Simon, when is she going to make a new plan, Stan?

[Lucy Frazer]

I would just point out that the Labour party has said absolutely nothing in relation to what it would do, so to stand up here and say that we have no plan is absolutely unacceptable. I can be absolutely clear that we do have a plan. We have worked very hard with the sectors. We have already set out in our White Paper the steps that we are taking on a very important aspect in relation to transparency. I will continue to work with the sector on all these areas to ensure that this extremely complex matter comes to a satisfactory conclusion for the creative industries.

[Kim Leadbeater (Batley and Spen) (Lab)]

10. For what reason charity lotteries have annual sale limits.

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[Peter Aldous (Waveney) (Con)]

11. What recent progress she has made on implementing her Department’s multi-sport grassroots facilities programme.

[The Secretary of State for Culture, Media and Sport (Lucy Frazer)]

The Government have committed over £325 million to multi-sport grassroots sites across the whole of the UK. This is part of our mission to ensure that every community has the pitches and facilities it needs. So far, 2,300 sites have been supported. That includes funding for grass pitch maintenance at Waveney football club in my hon. Friend’s constituency, creating many more opportunities for people of all backgrounds to get active.

[Peter Aldous]

The development of multi-sport grassroots facilities is very often led by one sport, which then faces a variety of obstacles in getting other sports authorities to participate in a particular project. What steps is my right hon. and learned Friend taking to remove those barriers, and to promote collaboration between different sports authorities so that much-needed facilities can be built?

[Lucy Frazer]

I welcome my hon. Friend’s question because it allows me to champion the fact that, as a requirement of the Government’s investment in grassroots facilities, 40% of projects need to clearly benefit a sport other than football, such as cricket, rugby, basketball or netball. In England, the Football Foundation and Sport England work closely with the national governing bodies of other sports to encourage the development of multi-sport projects, to promote collaboration between clubs at a local level.

[Wera Hobhouse (Bath) (LD)]

Over 1 million girls lose interest in sports when they become teenagers, mainly due to lack of confidence and feeling judged, but we know how beneficial sports are for mental health, and there are many other benefits. How has the Department included gender in the implementation of the multi-sport grassroots facilities programme?

[Lucy Frazer]

I welcome that question. We have a national sports strategy to get 3.5 million people more active. That is focused on trying to get those who are currently inactive into sport. As the hon. Lady rightly mentions, women and girls are less active in sport than boys and men, so we are focusing in particular on that, with a national taskforce that brings together all relevant Departments and national governing bodies to ensure that we get more women and girls involved in sport across the board.

[Sir Jake Berry (Rossendale and Darwen) (Con)]

Does the Secretary of State accept that grassroots sports can play a hugely important part in levelling up? As part of Darwen’s £120 million town deal, we have invested in our football club, our cricket club and our skate park, and we are about to open a brand-new five-a-side pitch. Will she talk with the Secretary of State for Levelling Up, Housing and Communities to see what part her Department can play in ensuring that sport plays its proper part in enriching the cultural lives of people in areas with levelling-up bids?

[Lucy Frazer]

My right hon. Friend is a huge champion for his area and for the north in general. He is absolutely right that sport, drama, creativity—all those things—level up an area. I am very happy to talk to my right hon. Friend in the Levelling Up Department to consider how we can continue, across Government, to support the north.

[Richard Foord (Tiverton and Honiton) (LD)]

I have recently visited sports clubs in Honiton, including youth rugby, gymnastics and football. They are all seeking support from the local authority, East Devon District Council, on the basis of its 2017 sports pitch strategy. The Government’s multi-sport grassroots facilities programme is very welcome, but does the Secretary of State consider it generous enough for youth sport, given that the co-benefits of sport for young people include a sense of camaraderie, good health and civic pride?

[Lucy Frazer]

Our strategy is helping sport across the board, but I recognise in particular the importance of getting young people involved in sport. We have invested around £1 billion in sport for young people, including £300 million for multi-sport pitches and £600 million in schools so that more children get the required two hours of physical education. We are also investing across the board in youth services to get more young children active in constructive activities rather than in less appropriate ones.

[Sarah Dyke (Somerton and Frome) (LD)]

T1. If she will make a statement on her departmental responsibilities.

[The Secretary of State for Culture, Media and Sport (Lucy Frazer)]

I am proud of our Government’s record in supporting the creative industries. Figures published last week, which I am sure Opposition Members will welcome, show that our powerhouse creative industries grew by 6.8% in 2022, generating an enormous £124 billion for UK plc, putting us ahead of our ambition to grow those sectors by an extra £50 billion by 2030. Of course, much of that depends on the amazing talent of Britain. Many in the creative industries are benefiting from the Government’s targeted tax breaks, which are powering those industries.

[Sarah Dyke]

Does the Secretary of State agree that we need to support local initiatives to encourage more girls to get into—or back into—and remain in sport? I myself enjoyed a long and prosperous rugby career playing in national league 1. Will she join me in congratulating Somerton rugby football club on its new girls rugby “skills and social” nights?

[Lucy Frazer]

More girls should have the opportunity to play sports that are traditionally the preserve of the boys. That is why we are encouraging all schools to offer all sports to all their pupils, whatever their gender. In addition, we are backing women’s football, with £30 million for 30 pitches across the country to which girls will have priority access. It is absolutely right that we continue to encourage girls and women to take up more sport.

[Sir Edward Leigh (Gainsborough) (Con)]

T6. Gainsborough was once the capital of England under the incomparable Sweyn Forkbeard. It is an historic market town with the Old Hall at its heart. What plans do the Government have to preserve the character of historic market towns such as Gainsborough?

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[Mary Robinson (Cheadle) (Con)]

Cheadle Town FC have been a member of the north west counties football league since 1983. However, the oversubscribed division leaves Cheadle Town and other south Manchester clubs at risk of being moved laterally into a midlands division, meaning a significant increase in the club’s travel costs and an impact on gates, breaking their identity as a northern club, and challenging their future viability. I have met the Football Association and raised the club’s concerns. Will my right hon. and learned Friend join me in urging the FA to review its processes and listen to south Manchester clubs that want to keep their teams northern?

[Lucy Frazer]

My hon. Friend is a massive champion for her area—she has previously raised this issue with me and with the sport Minister. As she rightly recognised, levels five to 10 of the English football league system are administered by the FA, and decisions regarding which league a team plays in at those levels are for the FA in its role as governing body. I am sure the FA is listening to my hon. Friend’s concerns and will have heard her plea this morning.

[Mr Speaker]

I call the shadow Minister.

[Barbara Keeley (Worsley and Eccles South) (Lab)]

This week in the House, I raised with the Economic Secretary to the Treasury the fact that serious delays in His Majesty’s Revenue and Customs issuing A1 forms mean that touring musicians are waiting months to be paid. A1 forms ensure that musicians do not have to pay additional tax when touring in the EU, but some musicians are waiting six to nine months, or even a year, for those forms. One leading singer told me that musicians feel like “hostages” of HMRC incompetence, so what is the Secretary of State doing alongside Treasury Ministers to sort out this mess, which is hitting UK musicians so hard?

[Lucy Frazer]

I recognise the importance of touring to many of our fantastic industries. We have bilateral agreements with many other countries to ensure that touring can take place, but I will continue to ensure that as a Government, we take every step across the board to make sure that our musicians can tour appropriately.

[Andy Carter (Warrington South) (Con)]

What assessment has the Minister made of the BBC’s proposals to launch four new national music radio stations and to relaunch an existing station, Radio 5 Sports Extra? To my mind, those proposals are a direct imitation of commercial broadcasters’ innovation, and the time and resource that the BBC is investing could be better spent in reversing the cuts to BBC local radio—a source of distinctive public service content that is not available anywhere else on the same medium.

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[Chris Stephens (Glasgow South West) (SNP)]

T3. Now that the Government have moved to repeal section 40 of the Crime and Courts Act 2013, there remains no legislative measure to convince print media to sign up to the state regulator, so how do the Government plan to finally give the state regulator the power to do its job, as called for by the National Union of Journalists?

[Lucy Frazer]

I am very proud that we have a free press, and I think it is really important that we repeal section 40 to ensure there is not a chilling effect on our reporting. Of course, since that was first proposed, we have had greater self-regulation, and I am sure the press will continue to ensure that they do their outstanding job in an appropriate fashion.

[Andrew Selous (South West Bedfordshire) (Con)]

Can we recognise pickleball as a national sport, and will the sport Minister come to the Dunstable Hunters pickleball club, where he will see men, women, grandparents and grandchildren having a wonderful time?

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[Michael Fabricant (Lichfield) (Con)]

Does my right hon. and learned Friend agree that individual sports clubs have a role to play in providing youth services? In that respect, can I thank the Government for funding Lichfield sports club and Chasetown football club, which have both received grants for the work they do—grants that reach up to £2.5 million?

[Lucy Frazer]

My hon. Friend is absolutely right. He is a fabulous champion for Lichfield, and I am pleased that young people in Lichfield are getting the benefit of Government funding.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

T5. The Government’s promise to protect music creators from the potential negative impacts of artificial intelligence relied on a deal between tech companies and the music industry. However, it emerged earlier this month that those discussions have collapsed. Will the Secretary of State admit that their plan has failed, and say what the Government are going to do about it to support the creative sector?

[Lucy Frazer]

I wish Labour Members would actually read our White Paper on AI, because in that paper we recognise the importance of this issue and the importance of protecting the creative industries. The White Paper sets out what we are doing about transparency, which is a key issue. We are of course continuing to work with both sides of the industry—the AI tech giants and the creators—to ensure we come to an appropriate resolution of this issue.

[Sara Britcliffe (Hyndburn) (Con)]

I refer Members to my entry in the Register of Members’ Financial Interests.

Will the Minister please update us on the independent regulator, and can he quite literally get the ball rolling to get this Bill in front of the House?

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[Sir Michael Ellis (Northampton North) (Con)]

Does my right hon. Friend share my concern that the large number of inquiries that Ofcom has launched against GB News, for conducting itself in exactly the same fashion as other channels routinely do, is in danger of looking biased and political, and that Ofcom is in danger of putting itself in judicial review territory?

[Lucy Frazer]

The Government and I are in favour of media plurality, and it is important that different channels express different views across our vast political landscape. I am pleased that GB News has chosen to be regulated by Ofcom, and I know that Ofcom carries out its job appropriately.

The hon. Member for Broxbourne, representing the House of Commons Commission, was asked—

Sports Grounds Safety Authority Licence Fee

Lucy Frazer Excerpts

Monday 5th February 2024 Written Statements

[The Secretary of State for Culture, Media and Sport (Lucy Frazer)]

I wish to inform the House that the Government have taken the decision to reform the Sports Grounds Safety Authority (SGSA) licence fee structure.

The SGSA is the regulator for spectator safety which includes the 92 designated football grounds in the premier league and English football league, as well as Wembley stadium and the Principality stadium. The SGSA also acts as the UK Government’s adviser on safety at sports grounds and is a world leader in safety.

As part of its regulatory role, the SGSA issues licences to allow grounds to permit spectators to watch matches. The annual licence fee for clubs was set in 1993 at £100, which does not reflect the cost of regulation.

In 2022 the SGSA took part in the Cabinet Office public bodies review programme, which concluded the current funding model is

“inflexible and not fit for purpose, with the licence fee not reflecting the costs of regulation”.

In the Government response, we committed to working closely with the SGSA to consider the implications and practicalities of amending its existing funding model and explore options to enact any changes.

I am pleased to say that we have acted upon the review’s recommendation and that from the 2024-25 season, the SGSA will be implementing a new fee structure for designated football grounds licensed by the SGSA. I have determined that the fee will be based on official average league attendance over the previous two seasons. This decision follows a six-week targeted consultation led by the SGSA with the industry on the proposals to change the licence fee.

This change will ensure that the cost of regulation is met by industry and reduce the burden on the taxpayer. The SGSA will conduct a three-year review of the licence fee, which will include consultation with the sector.

[HCWS238]

Telegraph Media Group: Pre-emptive Action Order

Lucy Frazer Excerpts

Wednesday 31st January 2024 Written Statements

[The Secretary of State for Culture, Media and Sport (Lucy Frazer)]

On 26 January, I issued a public interest intervention notice (PIIN) in relation to the anticipated acquisition of the Telegraph Media Group Ltd (TMG) by RB Investco Ltd.



This is further to information my Department received that RedBird IMI has made changes to the corporate structure of the potential acquiring entities of the Telegraph Media Group, and this has created a new relevant merger situation.



This PIIN relates to concerns I continue to have that there may be public interest considerations—as set out in section 58 of the Enterprise Act 2002—that are relevant to the anticipated acquisition of TMG by RB Investco and that these concerns warrant further investigation.



The PIIN that I issued on 30 November 2023 in relation to the anticipated acquisition of the Telegraph Media Group Ltd (TMG) by Redbird IMI media joint venture remains in force.



I have now made an order to prevent actions by the parties to the merger that might prejudice the process or impede my ability to protect the public interest during the period in which either the 30 November intervention notice or the new intervention notice is in force. The order prohibits transfer of ownership or control of the TMG business without my prior written consent. It also requires the parties to ensure that no steps are taken to integrate the TMG business with any other enterprise, that no significant changes are made to the management and structure of the TMG business or the boards of both the TMG business and the entities aiming to acquire TMG. The acquiring entities must ensure that no step is taken to change the structure of the potential acquiring entities of TMG. The parties must take all reasonable steps to encourage key staff—managerial, executive and editorial—to remain within the TMG business and must also do what is within their power to ensure that key staff within the TMG business are not removed or transferred without my prior written consent.



This order came into force at 11 am on 30 January 2024.



This order revokes the pre-emptive action order that I made on 1 December 2023. The 30 November 2023 PIIN that I made remains in force. Revocation does not prevent me from taking enforcement action, if necessary, in relation to any breaches of the previous order.



The Department for Culture, Media and Sport will keep Parliament updated on progress with this media merger case.

[HCWS228]

Telegraph Media Group: Public Interest Intervention Notice

Lucy Frazer Excerpts

Monday 29th January 2024 Written Statements

[The Secretary of State for Culture, Media and Sport (Lucy Frazer)]

I would like to make a statement on my decision to intervene in the anticipated acquisition of Telegraph Media Group Ltd by RB Investco Ltd.

My Department has written to solicitors acting for the Barclay family and RedBird IMI, the current and proposed owners of Telegraph Media Group, to inform them of my decision to issue a public interest intervention notice (PIIN) in relation to the anticipated acquisition of the Telegraph Media Group by RB Investco.

This is further to information that my Department received this week that Redbird IMI has made changes to the corporate structure of the potential acquiring entities of the Telegraph Media Group, which has created a new relevant merger situation.



This PIIN relates to concerns that I continue to have that there may be public interest considerations—as set out in section 58 of the Enterprise Act 2002—that are relevant to the anticipated acquisition of the Telegraph Media Group by RedBird IMI and that these concerns warrant further investigation.



At this stage, my decision to issue the PIIN triggers the requirement for the Competition and Markets Authority to report to me on jurisdictional and competition matters; and for Ofcom to report to me on the media public interest considerations in section 58(2A) of the Enterprise Act 2002—namely, the need for accurate presentation of news and free expression of opinion in newspapers. Having consulted the CMA and Ofcom on the time they need to conduct the necessary investigations, I have asked them to report to me by 9 am GMT on 11 March 2024.



My Department has also written to Ofcom and the CMA today to extend the deadline by when I expect to receive their reports in relation to the PIIN that I issued on 30 November 2023. I now expect them to report to me on this PIIN also by 9 am GMT on 11 March 2024. This means the 30 November PIIN and the associated pre-emptive action order that I made on 1 December 2023 both remain in force.



I reserve the right to take such further action under the Act as I consider appropriate, which may include exercising my powers under section 42 in relation to any other relevant merger situation. My decision to issue a PIIN is without prejudice to my ability to take any such additional action in accordance with the Act.



My role as Secretary of State in this process is quasi-judicial and procedures are in place to ensure that I act independently and follow a process that is scrupulously fair, transparent and impartial.



The Department for Culture, Media and Sport will update Parliament after both reports from the regulators have been received and considered.

[HCWS216]

Telegraph Media Group: Public Interest Intervention Notice

Lucy Frazer Excerpts

Wednesday 24th January 2024 Written Statements

[The Secretary of State for Culture, Media and Sport (Lucy Frazer)]

My Department has today written to solicitors acting for the Barclay family and RedBird IMI, the current and proposed new owners of Telegraph Media Group, to inform them that I am “minded to” issue a new public interest intervention notice.

This week, RedBird IMI has made changes to the corporate structure of the potential acquiring entities of Telegraph Media Group and this creates a new relevant merger situation. RedBird IMI asserts that no changes have been made to the identity, nature or economic interests of the ultimate shareholders.

I have noted the very late stage in the process at which information about this new corporate structure has been shared and implemented. I do not consider that this is conducive to the full and proper functioning of the process. I expect the parties to ensure that all the relevant authorities have timely access to all relevant information, and in sufficient detail, in order that they, and subsequently I as Secretary of State, can make our determinations.

The new public interest intervention notice that I am minded to issue relates to concerns that I continue to have that there may be public interest considerations—as set out in section 58 of the Enterprise Act 2002—that are relevant to the planned acquisition of Telegraph Media Group by RedBird IMI, and that these concerns warrant further investigation.

A “minded to” letter has therefore been issued to the parties on the following public interest ground specified in section 58 of the Enterprise Act 2002:

(2A) The need for—

(a) accurate presentation of news; and

(b) free expression of opinion;

in newspapers is specified in this section.

These letters, and other relevant updates, will be published on gov.uk.

The “minded to” letter invites further representations in writing from the parties and gives them until 9 am on Thursday 25 January to respond. My Department will publish versions of these “minded to” letters on gov.uk in due course.

If I decide to issue a new intervention notice, the next stage would be for Ofcom to assess and report to me on the public interest concerns and for the Competition and Markets Authority (CMA) to assess and report to me on whether a relevant merger situation has been created and any impact this may have on competition. Following these reports, I would need to decide whether to refer the matter for a more detailed investigation by the CMA under section 45 of the Enterprise Act 2002.

The public interest intervention notice issued on 30 November 2023 and the pre-emptive action order made on 1 December 2023 remain in force.

DCMS will keep Parliament updated on progress with this media merger case.

[HCWS207]

BBC Royal Charter: Mid-term Review

Lucy Frazer Excerpts

Monday 22nd January 2024 Written Statements

[The Secretary of State for Culture, Media and Sport (Lucy Frazer)]

The BBC is a unique cultural institution which has provided the model for public service broadcasting across the world. It has been informing, educating and entertaining millions every day, both in the UK and globally, for over 100 years.



Today, having moved into the second half of the BBC’s current 11 year royal charter, I am publishing the mid-term review. This evaluates the effectiveness of the governance and regulatory arrangements introduced by the charter in 2017.



The Government published the terms of reference for the review in May 2022. Following a period of targeted stakeholder engagement and consultation with the BBC, Ofcom and devolved Administrations, we are today publishing our findings with a series of recommendations to deliver better outcomes for audiences. Priority areas considered in the review, and significant recommendations in those areas, include:



Editorial standards and impartiality: If the BBC is to maintain the trust of its audiences it needs to be impartial. While the BBC strives to do this, it can do more. The BBC needs to be more transparent to audiences about how it is delivering its commitment to continuous, long-term improvement on impartiality. We are extending Ofcom’s regulation to elements of the BBC’s online public service material. This reflects that audiences increasingly consume content online and expect the same standards across the BBC’s different services, a change that will also enable Ofcom to better hold the BBC to greater account across its digital services.

Complaints: The feedback of licence fee payers through the complaints system, including concerns about the impartiality of BBC content, is invaluable in helping the BBC deliver its role. Following constructive conversations with the BBC, the mid-term review introduces major reforms that will provide greater external and independent scrutiny of the BBC’s complaints handling. The board will be given a new, legally-binding responsibility in the framework agreement to actively oversee the BBC executive’s handling of complaints. Pre-broadcast editorial policy and post-broadcast complaints resolution will be separated, with the role responsible for leading complaints handling now reporting directly to the director general. The BBC board sub-committee responsible for ensuring that the BBC complies with its complaints framework, the editorial guidelines and standards committee, chaired by a non-executive director, will be given greater powers to scrutinise and challenge how the BBC executive responds to complaints. These reforms will give licence fee payers greater confidence that their complaints have been handled fairly, and that their views have been heard. We also recommend that Ofcom improves the transparency of its decision-making when the BBC has found a breach of its own editorial standards. If the breach is within Ofcom’s regulatory jurisdiction, Ofcom should publicly and clearly record this breach. If it decides not to open a formal investigation into the content against the broadcasting code, Ofcom should clearly explain its rationale in its online bulletin.

Competition and market impact: There must be higher standards of BBC engagement and transparency with competitors. This will ensure that BBC’s competitors are better able to understand the BBC’s plans, and therefore to provide more valuable feedback to the BBC, and where necessary Ofcom, before it makes changes to its services.

The recommendations are for the BBC and Ofcom to take forward. The Government expect timely implementation of these recommendations. A number of the recommendations require changes to the framework agreement which will be published as soon as possible.



The mid-term review has also helped identify early on some of the other key issues that need to be considered at charter review, which we will conclude by 2027. The Government will, on an ongoing basis, continue to focus on the BBC’s impartiality. At the next charter review we will review the effectiveness of the BBC’s social media guidelines; assess whether BBC First remains the right complaints model to enable the BBC to best serve all audiences; and examine the BBC’s role in the wider market, including its distinctiveness and how the regulatory framework may need to evolve to reflect shifts in technology and consumer behaviour.



A copy of the report will be placed in the Libraries of both Houses.

[HCWS198]

Oral Answers to Questions

Lucy Frazer Excerpts

Thursday 11th January 2024 Commons Chamber

[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

2. Whether her Department has made an assessment of the potential impact of tax relief on the growth of the creative industries.

[The Secretary of State for Culture, Media and Sport (Lucy Frazer)]

Let me begin by welcoming the Minister back to her place. Since 2012, the Conservative Government have introduced tax reliefs for the creative industries year on year. That is one of the reasons why the creative industries are growing at twice the rate of the rest of the economy, and why they are world leading. The Labour party opposed every single one of those tax reliefs, and despite its warm words it offers no substantive action.

[Stephen Metcalfe]

As my right hon. and learned Friend says, since we came to office we have introduced a number of tax reliefs that have supported children's television, video games, production, galleries, orchestras, theatres and museums. It is for the Chancellor to decide on tax policy, but can my right hon. and learned Friend tell us what more she can do to make this go further, to ensure that we remain one of the world’s leading production venues?

[Lucy Frazer]

We have indeed introduced many tax reliefs, and since we came to office I have instigated and backed the introduction of tax reliefs and other support for the sector. Independent film making has been supported with more than £60 million of Government and national lottery funding, and I have recently spoken to representatives of the independent sector to establish how we can provide further support. However, as my hon. Friend has pointed out, matters of tax are ultimately matters for the Chancellor.

[Deidre Brock (Edinburgh North and Leith) (SNP)]

I have a suggestion for the Minister. When I met several film, television and advertising companies in my constituency recently, they pointed out that Malta and Mauritius have a 40% rebate which also covers commercials, and that Ireland will be following suit with a 40% rebate on reality TV and game shows. These are the bread-and-butter products of the industry, and they have a huge impact on local areas where filming takes place. The UK is falling behind in this respect. What discussions is the Secretary of State having with the Treasury and other colleagues about the matter?

[Lucy Frazer]

I assure the hon. Lady that I have regular discussions with the Treasury and the industry about how we can continue to support this vital sector. We are not falling behind. We are world leading, and we need to maintain that competitive edge. Our screen sector tax reliefs are estimated to have delivered over 200,000 new jobs and more than £13 billion in economic output.

[Munira Wilson (Twickenham) (LD)]

3. What steps she is taking to help increase community access to playing fields.

--- Later in debate ---

[Michael Fabricant (Lichfield) (Con)]

9. What steps her Department is taking to support the growth of the film and television industry.

[The Secretary of State for Culture, Media and Sport (Lucy Frazer)]

We have seen significant growth in the film and TV industries. The support that we have taken includes reforms to audiovisual tax reliefs, uplifts for animation and children’s TV, and £28 million of investment in the UK global screen fund. As I have said, the Labour party voted against all our tax reliefs and, as far as I am aware, has offered no funding to those industries.

[Michael Fabricant]

I thank my right hon. and learned Friend for her answer. She will know that there is now more studio space for feature film production in the home counties than there is in Hollywood. However, there is a vulnerability. We found that out at the time of the American writers and actors’ strikes, when a number of my friends, and many other people who are not my friends, were made redundant temporarily because film production halted. How can we make the British film industry more independent of the American production machine?

[Lucy Frazer]

I know that my hon. Friend is himself a veteran of the silver screen, appearing in the brilliant British “House of Cards”. Our film industry is world leading. He is right that the strikes caused disruption. We work very closely with our partners in other jurisdictions. One example is the international hit film “Barbie”, which was filmed in the UK, supported 750 jobs, added £80 million to our economy and earned more than £1.1 billion at the global box office. We needed to ensure that the film industry could continue to thrive after the strikes, which is why we are continuing to support the industry with tax incentives, funding pots and, importantly, the development of a skills pipeline to ensure success long into the future.

[Rob Butler (Aylesbury) (Con)]

10. Whether she has had recent discussions with the BBC Board on the impartiality of the BBC’s current affairs coverage.

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[Andrew Jones (Harrogate and Knaresborough) (Con)]

12. What progress she has made on increasing women and girls’ access to sport.

[The Secretary of State for Culture, Media and Sport (Lucy Frazer)]

Women and girls should have exactly the same access to sport as boys and men. That is why we supported the recommendations in Karen Carney’s excellent report. It is why we are investing £600 million to boost equal access to sport, and why we recently announced £30 million for the Lionesses Futures Fund to deliver 30 pitches across the country with priority access for women and girls, with further opportunities for 8,000 women and girls.

[Andrew Jones]

We have had fantastic success with women’s football, particularly the Lionesses, including Harrogate’s Rachel Daly, who has been a great inspiration locally, but what steps is my right hon. and learned Friend taking to ensure that sports with a smaller following can sustain a competitive grassroots environment for girls?

[Lucy Frazer]

I recognise Rachel’s success as the top scorer in the women’s super league last year. We support sport at every level. Sport England’s This Girl Can campaign, funded by the Government, inspires millions of women and girls to get involved in all sports. The School Games programme, also funded by the Government, encourages children to take up sport and get active.

[Mr Speaker]

I call the shadow Secretary of State.

[Thangam Debbonaire (Bristol West) (Lab)]

Unfortunately, in recent weeks there has been a spate of disgusting sexist, misogynistic abuse directed towards sportswomen just for being at the top of their game. I know that the Under-Secretary of State for Culture, Media and Sport, the right hon. Member for Pudsey (Stuart Andrew), has been on the receiving end just for standing up to it, which I commend him for. I agree with him that vile, misogynistic comments are dangerous. The reality is that they are putting women and girls off sport. Does the Secretary of State agree that every sporting organisation should have a strategy to eliminate all forms of sexual harassment and abuse?

[Lucy Frazer]

I agree with the hon. Member: we should not have misogynistic, bullying behaviour in sport, and all governing bodies should be looking at what their sports are doing. We set out in our sports strategy how we should have fair competition and integrity in sport.

[Thangam Debbonaire]

The Secretary of State mentioned the Carney review, but I am afraid that the Government seem to be failing women’s football on that, with a complete lack of detail about how the implementation group to put into practice the Carney review recommendations will work. Without senior leadership, that group will not have the teeth that it needs, and all the hard work will be put at risk. Fans, players and clubs deserve urgent action and leadership from the top. If the Secretary of State does not reform the women’s game and give it the same prominence as the men’s, I will. Will she commit to chairing the implementation group, and reporting back to Parliament so that MPs can hold her to account?

[Lucy Frazer]

I completely dispute what the hon. Member says about our support for women in sport, and women in football. I have had the pleasure of meeting Karen Carney on a number of occasions. Her report is excellent. We endorse all its recommendations, many of which are for the FA, which I have also spoken to on this subject. I will ensure that the recommendations are fulfilled. The implementation board will have all the governing bodies on it. Its first meeting is in March. I will keep a very close eye on the board, and will work very closely with my right hon. Friend the Under-Secretary on that and every other issue.

[Peter Aldous (Waveney) (Con)]

T1. If she will make a statement on her departmental responsibilities.

[The Secretary of State for Culture, Media and Sport (Lucy Frazer)]

As 2023 drew to a close, official statistics highlighted that under this Government the creative industries continued to thrive. They now employ almost 2.5 million workers, a growth of 4.4%, so we are well on our way to meeting our objectives to grow the creative industries by £50 billion and increase employment by 1 million by 2030.

[Peter Aldous]

Local commercial radio, whether in Lancashire or Suffolk, can fill the gap left by the reduction in BBC local radio coverage, but in the Lowestoft and Waveney area it is constrained in doing so, as the local digital audio broadcasting network has not been extended to cover the area. Please can my right hon. and learned Friend arrange for that important infrastructure, which is available throughout most of the UK, to be extended to north-east Suffolk as soon as possible?

[Lucy Frazer]

I completely agree with my hon. Friend on the importance of local radio to listeners across the UK, and I know that he is an effective campaigner for his local area. The BBC and commercial radio are responsible for the operation of their respective radio networks, including the DAB radio networks, but I have asked my officials to engage with local DAB multiplex operators and broadcasters to look at whether there is a desire to increase local DAB coverage further.

[John Spellar (Warley) (Lab)]

T2. Does the Secretary of State agree that, in the media world, content is king, and that that is why we must support our world-leading creative talent? Will she take steps to require artificial intelligence developers to provide songwriters and composers with detailed information as to how their works are being used, including when authorisation has been granted for use of those works as training data?

[Lucy Frazer]

The right hon. Member is absolutely right about the importance of protecting the original work of the creative industries. I have held a number of roundtables to ensure that we protect that originality. The Intellectual Property Office is working on that very issue, and I have been liaising with it and with the Secretary of State for Science, Innovation and Technology.

[Mr Laurence Robertson (Tewkesbury) (Con)]

T3. The Secretary of State will be aware that the Premier League and the English Football League have held meetings, and yet have failed to come up with a solution for a fairer redistribution of funding. Given their inability to come to an agreement, will she get the two sides together round the table—she is probably already doing it—to encourage them to come up with a solution? Failing that, if legislation is necessary, will she consider it, because we do not want to see any clubs going under?

[Lucy Frazer]

It is absolutely right that a deal should be done. The Under-Secretary of State for Culture, Media and Sport, my right hon. Friend the Member for Pudsey (Stuart Andrew), and I have been encouraging all the authorities to come to an arrangement. We have been clear that if no arrangement is reached, there will obviously be a backstop in the legislation for the football regulator that we will bring forward to the House shortly.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

T5. As the Secretary of State will be aware, charities are facing an extremely challenging fundraising environment and, at the same time, are trying to respond to increased demands due to the cost of living crisis. Will she explain why the Government continue to impose sales restrictions on charity lottery fundraising, the removal of which would not cost the Treasury a single penny, but would ensure much-needed additional funds for charitable causes? That would hugely benefit communities in my constituency and across the whole UK.

--- Later in debate ---

[Andy Carter (Warrington South) (Con)]

Given Ofcom’s comments that it is considering whether its proposals for regulation of local radio are still appropriate in the light of the BBC’s changes to local radio provision, does the Minister agree that the BBC’s mid-term review is a good opportunity to look at how the BBC delivers for older audiences, particularly in its local radio provision?

[Lucy Frazer]

The mid-term review is a very important point where we can look further, and indeed have looked further, at a number of issues, including competition, complaints and impartiality. We will be publishing the results of the mid-term review very shortly.

[Matt Western (Warwick and Leamington) (Lab)]

The Minister will know that Warwick and Leamington—Leamington being also known as Silicon Spa—enjoys the greatest concentration of games companies in the world. I appreciate what was said in the autumn statement, but there is a skills shortage. Can the Minister update us on what is being done to address that?

[Lucy Frazer]

The gaming industry in this country is world leading, and I have had the pleasure of visiting a number of gaming companies to see how they are thriving. We have a creative industries skills package, which we committed to in the creative industries sector vision, to ensure a pipeline of talent all the way from primary school right up until someone’s second or third job, and there are measures at every single one of those steps.

[Elliot Colburn (Carshalton and Wallington) (Con)]

Wallington FC is an amazing local football club in Roundshaw, in Carshalton and Wallington, but it is having trouble maintaining its lease with the new owners and its very old sports pavilion needs an overhaul. Can the Minister set out what support is available from the Department or other organisations to help with that?

[Kirsten Oswald (East Renfrewshire) (SNP)]

Performers in the UK are having their images, voices or likenesses reproduced by others using AI technology, without their consent. The Copyright, Designs and Patents Act 1988, which regulates performers’ intellectual property, does not account for AI. When will this Government act to protect the rights of artists, performers and other creatives in the UK, or are they content to see this continued exploitation and violation of people’s intellectual property rights?

[Lucy Frazer]

The hon. Member will know that in the UK we have world-leading protections for copyright and intellectual property. We want to make sure that, as we move into a new technological age with generative AI, we continue to protect creative work. I assure her that we are working closely with the industry and the Intellectual Property Office to ensure that we get the best protections we can, and I know that an update on the IPO’s work will be published shortly.

--- Later in debate ---

[Rachael Maskell (York Central) (Lab/Co-op)]

Labour has a programme for a new generation of youth hubs, because we know that our young people are struggling with mental health challenges, school, themselves and others, and some are being picked off by criminal gangs. In contrast with our programme, the YMCA has identified a 70% cut in funding since 2010 and a loss of 4,500 frontline youth workers. When will the Government invest in our young people and in a comprehensive youth service?

[Lucy Frazer]

I am grateful for the hon. Lady’s question, because this is something I feel very passionately about. I am very proud that we are investing £500 million in our national youth guarantee, and that we already have in place a programme to build youth clubs—we have already built 87 throughout the country, spending £300 million. We want constructive things for people to do, which is why we are spending £300 million on our sports pitches. I have strengthened the statutory guidance in relation to what local authorities are required to do, and we are working across Departments to ensure that our young people have something to do, somewhere to go and someone to talk to.

The hon. Member for South West Bedfordshire, representing the Church Commissioners, was asked—

BBC Funding

Lucy Frazer Excerpts

Thursday 7th December 2023 Commons Chamber

[The Secretary of State for Culture, Media and Sport (Lucy Frazer)]

With permission, Madam Deputy Speaker, I would like to make a statement on the BBC.

The BBC is a great British institution and plays a vital role in our culture and creative economy. It broadcasts our values and identities all over the world, reaching hundreds of millions of people every day. In January 2022, the Government and BBC agreed a six-year funding settlement, which froze the licence fee at £159 for two years. The two-year freeze has already saved every fee payer £17 over 2022 and 2023. That settlement provided vital support for households when inflation was at its highest, while giving the BBC the funding it needed to deliver on its remit.

Under the terms of the settlement, the licence fee must now increase annually in line with the consumer prices index, with the first increase due in April 2024. The Government are committed to supporting families as much as possible during these difficult times. We recognise that bill rises are never welcome and family budgets remain under pressure.

Today, I am announcing that we will use the annual rate of CPI in September to calculate the increase of the BBC licence fee in April 2024. This is the same way the Government calculate inflation-linked increases to state pensions and benefits. The decision means next year’s licence fee increase will be kept as low as possible. In April, the licence fee will rise by 6.7%, to £169.50 annually. That will minimise the rise for households, keeping it to £10.50 over the year, or 88p per month, rather than a rise of £14.50 that would have happened under the previous CPI measure.

While we recognise that household budgets remain under pressure, the decision, alongside the two-year freeze, will save individual licence fee payers over £37 by the end of 2024. These interventions support households, while providing the BBC with £3.8 billion to produce its world-leading content. The Government engaged with both the BBC and S4C to understand the impacts on the finances of both broadcasters. The decision will ensure that S4C, which is also funded from the licence fee, can maintain its unique role in promoting the Welsh language and supporting our public service broadcasting landscape.

Although we have taken steps to ensure that the uplift is kept as low as possible, we recognise that a £10.50 increase will still be felt by licence fee payers. The number of licence fee payers is also declining, with an increasingly competitive media landscape. We need to make sure that the cost of the BBC does not rise exponentially, and that it is not borne by a smaller number of fee payers. We are already seeing an increasing number of households choosing not to hold a TV licence. The number of households holding TV licences fell by 400,000 last year, and has declined by around 1.7 million since 2017-18. That is placing increasing pressure on the BBC’s licence fee income.

We are also seeing a rapidly changing media landscape, with more ways for audiences to watch content. The reach and viewing of broadcast TV fell significantly in 2022, with weekly reach falling from 83% in 2021 to 79% in 2022. As this trend continues, linking the TV licence to watching live TV will become increasingly anachronistic, as audience viewing habits continue to move to digital and on-demand media.

We know that if we want the BBC to succeed, we cannot freeze its income, but at the same time we cannot ask households to pay more to support the BBC indefinitely. We are already supporting the BBC to realise commercial opportunities that will make it more financially sustainable, and will continue to explore them provisionally with the BBC.

The situation clearly shows the need to consider the BBC’s funding arrangements to make sure they are fair for the public and sustainable for the BBC. Therefore, I am also announcing that today the Government are launching a review of the BBC’s funding model. The review will look at how we can ensure the funding model is fair for the public, sustainable for the long term, and supports the BBC’s vital role in growing our creative industries.

The review will be led by the Department for Culture, Media and Sport and supported by an expert panel. It will assess a range of options for funding the BBC. We are clear that we want the BBC to succeed. The review will include looking at how the BBC can increase its commercial revenues to reduce the burden on licence fee payers. Given pressure on household incomes, I can explicitly rule out this review looking at creating any new taxes. The findings of the review will support the Government to make an informed choice on whether to consult the public on moving to alternative funding models. That would take place as part of the charter review process, in which any final decision on reforming the BBC’s funding model would be taken.

The BBC is a great national institution. We want to ensure that it is fit for the present and whatever the future holds, while keeping costs down for the public. That means ensuring that the BBC is supported by a funding model that is fair to audiences, supports the creative industries, and is sustainable in the age of digital and on-demand media. I commend this statement to the House.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the shadow Secretary of State.

[Thangam Debbonaire (Bristol West) (Lab)]

Working people listening to the Secretary of State’s pitiful comments on support with the cost of living are not fooled. They see exactly what this is. We have had weak, mealy-mouthed platitudes that will make no material difference to their lives.

Thirty-three pence a month per household is what I understand to be the difference between today’s announcement and the deal the Government had already agreed to. That is not nothing, but does the Secretary of State really think that it will even touch the sides? Are she and the Prime Minister so out of touch that they think that will get people through the Tory cost of living crisis? They crashed the economy, sending mortgages and rents sky-high. They hiked taxes on working people. They have presided over 13 years of stagnant economic growth.

What is the cost of the Government’s announcement? The creative industries are one of the best sources of economic growth and quality jobs in the country, and the BBC is the biggest commissioner of work in the creative industries. Has the Secretary of State worked out the impact that choosing that particular inflationary measure will have on economic growth and jobs? Has she worked out the effect that it will have on the other creative businesses the BBC commissions and their supply chains? Has she worked out what difference it will make to the BBC’s crucial role as our soft-power superpower, promoting brand Britain around the world? Has she worked out what the impact will be on democracy, given the BBC’s role as the most trusted source of news anywhere in the world?

When it comes to the funding model review, I understand that the terms of reference are overtly focused on the commercial side of the BBC. I did not hear a word about the public service element of the BBC. The Secretary of State mentions an expert panel. Can she tell us who will be on it? What timetable will it work to? Where will the public service element feature in the Government’s terms of reference? Have the Government actually given up on the BBC as a public service broadcaster?

I am afraid to say that it all sounds like yet more broken Tory promises. This is no way to treat one of our great institutions, and no way to treat the millions of people who work at the BBC, their partners and the people around the country who value them so much. Let us not forget that this comes on the back of a two- year freeze that has already had a damaging impact.

This is just the latest sign of chaotic decision making by a flailing, failing Government led by a Prime Minister who is too weak to control his own party and by Ministers who make working people pay for their mistakes. It is a sign of the disdain that the Tories have for the role that there have been 12 Secretaries of State for DCMS in 13 years; it tops the reshuffle charts, bringing instability to a Department for economic growth.

Our great institutions, our public services and working people just cannot take any more of this chaos. Labour backs the BBC. We will grow our creative industries and spread the benefits across the country. A general election cannot come a moment too soon.

[Lucy Frazer]

I think the shadow Secretary of State needs to live in the real world like the rest of us. People are struggling with the cost of living, and the Government have continued to take steps to protect them. She needs to live in the real world, in which the media landscape is changing. It is totally inappropriate just to sit still and do nothing, because that would destroy the BBC and make it unable to live in this changing world, and it would do nothing to protect licence fee payers. If that is the Labour plan, I do not want see it.

The shadow Secretary of State talked about what we are doing for working families. She knows that this is not the only step that we are taking. We have spent £97 billion supporting families across the country, saving a typical family about £3,300, and cut inflation by half.

The hon. Lady mentions the creative industries. She might have forgotten that since I have been in this role, I have used tax reliefs to support the creative industries. The Labour party voted against that. In fact, the Conservative party has brought in tax reliefs for the creative industries year on year for 10 years, and they were voted down by the Opposition on every single occasion.

Labour does not support the creative industries. The shadow Secretary of State for Education, the hon. Member for Houghton and Sunderland South (Bridget Phillipson), said that we should be spending more money in schools not on the creative industries, but on others. Under this Conservative Government, the creative industries are growing at double the rate of the rest of the economy and employing 2 million people.

I will happily update the shadow Secretary of State for Culture, Media and Sport on other details relating to the panel. The timetable is that the report will come into play, to me, by the autumn of 2024.

[Madam Deputy Speaker]

I call the Father of the House.

[Sir Peter Bottomley (Worthing West) (Con)]

At the risk of correcting the hon. Member for Bristol West (Thangam Debbonaire), I think the Housing Minister has changed more often than the Secretary of State for Culture, Media and Sport.

I say to my right hon. and learned Friend the Secretary of State that I do not think that anyone will go to the stake for the difference between the September CPI and others, although we can note that, were the BBC licence fee to go up by another 10%, it would still be 50p a week per household, which is probably the best value in broadcasting anywhere.

I am worried that the Government have decided, again, to make a decision without consulting Parliament. If we are to have a public broadcaster funded by a licence fee or some equivalent, Parliament should be brought in more often by Governments. This is probably the fourth time that there has been an announcement of what will happen without Parliament having been consulted first. I hope that my right hon. and learned Friend and others will say that Parliament should be brought in. If the choice is between the United States model and public broadcasting, Parliament ought to be able make its views known.

The House will have noticed that the Secretary of State said that the review will look at alternative options for funding the BBC and then said that she

“can…rule out…creating any new taxes.”

I thought that it was Parliament that decides whether we have taxes. The review may want to consider some kind of household payment, whatever we call it—at present it is called the licence fee; if we do not call it a tax, we call it a charge or something else—or something to be taken from existing taxation. If the BBC is a public benefit, why not add to whatever households pay for the licence fee the implied tax on the income that they use to pay it, for example? That would allow the income from existing taxes to go up.

The BBC needs defenders, and I am one of them. As long as I am here, the Government can expect detailed attention, and a great deal of support for doing sensible things.

[Lucy Frazer]

I, too, am a defender of the BBC. It provides an outstanding service across the world. I am proud to have seen at first hand the fantastic job that it did for Eurovision, for the coronation and for the last night of the Proms. If we were to create something that spread our values and soft power abroad, we could not do better than creating the BBC. I certainly do not want to see its services diminished, but I want to ensure that it continues to survive in this changing media world. At the moment, it is losing audiences and licence fee payers, and I want to help to support it. That is one thing that we will look at carefully in the review.

The Father of the House rightly mentions the importance of discussion and consultation. My door is open to all those who want to raise points with me. Of course, in due course, we will need to consult, and this is part of the charter review, which will involve a wider consultation exercise.

[Madam Deputy Speaker]

I call the Scottish National party spokesperson.

[John Nicolson (Ochil and South Perthshire) (SNP)]

The Conservatives agreed to increase the licence fee in line with inflation, but their own economic mismanagement means more misery for UK citizens. The Government are now desperately trying to wriggle on how they calculate inflation for the purposes of this agreement. There is a pattern among those on the Government Benches that they will breach an agreement, convention or protocol whenever it suits them. Let the Conservatives take responsibility for this BBC uplift, as the need for the rise is entirely due to their mismanagement of the economy.

We all have some criticisms of the BBC. Sometimes they are centred on its domestic news coverage, but the BBC goes far beyond that, extending to drama, radio, documentaries, Gaelic broadcasting and sports coverage. To those who would ding doon the public service broadcasters, I say: be very careful what you wish for. Of course, for many Tories the ideal would be GB News 24 hours a day, with Tory MPs talking to Tory MPs about Tory policies. I believe it is known as “GBeebies”, as one Tory MP after another is wheeled in to rant culture war tosh at the camera, in a pale imitation of American shock jocks. It is a breach of Ofcom rules. Democracy needs tough journalism and MPs scrutinised in long-format interviews by objective journalists.

We have seen what the cuts lead to. The BBC agreed, most foolishly, to take responsibility for over-75s’ licences, under the previous director general, Tony Hall. That has led to cuts in news, most recently at “Newsnight”, which I was once proud to serve as a reporter. The BBC opposed the Government’s reneging on their agreement on that at the time, and we have seen the results.

In the years to come, the BBC may need a different funding format, but that time is not now. In closing, may I ask the Secretary of State, on behalf of my colleagues on the Select Committee, to explain why the news of the new BBC chair was leaked to the press, rather than being given directly to Committee members or the Committee Chair?

[Lucy Frazer]

I am grateful for the hon. Gentleman’s points. He mentioned many important parts of the BBC and other outlets. I am in favour of plurality of the media, so that we get a wide variety of voices. Of course, the preferred candidate as chair been announced and they will be going before his Committee in due course.

[Martin Vickers (Cleethorpes) (Con)]

One important aspect of public service broadcasting is regional news. We have already experienced cuts to BBC local radio, but regional news programmes, such as the Lincolnshire and Yorkshire edition of “Look North”, which serves my constituency, are greatly valued by my constituents. Will my right hon. and learned Friend give an assurance that the BBC will continue with the current level of regional news broadcasts?

[Lucy Frazer]

The BBC is, of course, operationally independent and it is not for the Government to say what it should provide. However, I remind my hon. Friend and the House that the BBC is there to provide a public service and it has a public purpose: to reflect, represent and serve the diverse communities of all of the UK. The BBC must also support the creative economy across the UK. Of course regional and local news and other output is an important part of that.

[John McDonnell (Hayes and Harlington) (Lab)]

May I ask the Secretary of State to get real? I am secretary of the National Union of Journalists parliamentary group, and it has other members here. She knows that as sure as night follows day there will be the loss of journalistic jobs as a result of this cut, at a key time, when we are going into a general election and they are desperately needed. Why does she not admit that this is a revenge attack for all those times at 10-past 8 on the BBC’s “Today” programme when Ministers, having been asked questions by Nick Robinson, Mishal Husain, Justin Webb, Amol Rajan or Martha Kearney, have floundered to answer a basic, straight question? The review is an overlying threat to the BBC about its behaviour in holding this Government to account.

[Lucy Frazer]

I do not accept anything that the right hon. Gentleman has just said. The purpose of the review is to ensure that the BBC can continue to provide its exceptional and outstanding service for decades to come. If we just sit on our hands and do nothing, it will be overtaken by other media outlets that are competing in the world. We need to ensure that the BBC has a sustainable financial platform from which to provide its outstanding service.

[James Sunderland (Bracknell) (Con)]

I have always loved the BBC. As a kid growing up and since, I have been blown away by the quality of its broadcasting; by its sport, music, culture, radio, nature, news and, of course, humour—even though I feel we have lost something with this endless thirst for political correctness. However, I have been increasingly concerned in recent months by the political bias creeping in, notably with individual commentary from presenters, through tweets and with inaccuracies in reporting. The BBC is a public service broadcaster; it is not a political organisation. So does the Secretary of State agree that the BBC has much more to do here to fully justify its publicly funded licence fee?

[Lucy Frazer]

The heart of my hon. Friend’s question is about the BBC’s impartiality. I know that the BBC strives hard to maintain impartiality, with its 10-point plan, but at its heart the BBC needs to provide an impartial service, because if it does not do so, it should not be getting licence fee payers’ money and it is just the same as every other organisation. That is why it needs to continue to strive, as I know it does, to ensure that it provides impartial output.

[Layla Moran (Oxford West and Abingdon) (LD)]

We should put on the record how lucky we are to have this public service broadcaster. We have just had a statement from the Foreign, Commonwealth and Development Office about Russian interference in our democracy, where this House raised its concerns ahead of the possible election, which will perhaps come sooner rather than later. How does the Secretary of State think that doing this and cutting the BBC’s budget by £90 million is going to help resilience in the whole of society in an election year, when we know that misinformation and disinformation by malign states has never been more of a threat?

[Lucy Frazer]

I wish to correct the hon. Lady: we are not cutting the BBC’s budget but increasing it, by 6.7%. What we are not doing is increasing it by 9%. She will know from speaking to companies or households in her constituency whether those companies have had a 9% increase in their funding. Have the Government had a 9% increase in their funding? We are creating a careful balance to ensure that we support the BBC with this rise of 6.7% to provide those services, while thinking carefully about the cost of living and bills for households up and down the country.

[Alun Cairns (Vale of Glamorgan) (Con)]

I thank my right hon. and learned Friend for her statement on restricting the increase in the BBC licence fee. I also recognise the reassurance she has given S4C, which is facing a particularly challenging time and needs stability. As she said, the licence fee still raises £3.8 billion. Departments, local authorities and most public organisations have to publish details and invoices in respect of sums in excess of £500. I have tried on two occasions in the House to introduce legislation to force the BBC to do the same. Within the review, will she consider how we can increase transparency and scrutiny of the £3.8 billion that is spent, so that we can introduce better efficiency gains and scrutinise closely where money might be wasted?

[Lucy Frazer]

My right hon. Friend makes an interesting point. I do not think it will form part of this review, but it is an interesting point that I will reflect on and consider further.

[Grahame Morris (Easington) (Lab)]

I wish to declare that I, too, am an officer of the NUJ parliamentary group—in fact, I am its co-chair. May I point out to the Minister the damaging impact of dramatic cuts already being implemented by the BBC management, including to the valued BBC local radio services, which we have discussed in this House on several occasions, to highly regarded investigative journalist jobs, most notably and recently on “Newsnight”, and to local news output? Given that inflation has been substantially higher than expected during the two-year licence fee freeze and given, as my hon. Friend the Member for Bristol West (Thangam Debbonaire) said from the Front Bench, that the BBC is the biggest commissioner of the creative industries in the UK, will the Minister, in her review of the funding model, please ensure that the BBC has enough funding to maintain the highest quality in commissioning, production and broadcasting?

--- Later in debate ---

[Lucy Frazer]

I am absolutely committed to ensuring that our creative industries continue to thrive and have set a very high ambition in that space. As I have said, I want to see the creative industries grow by £50 billion and have a million extra jobs by 2030. We are already seeing that growth, with the creative industries growing at twice the rate of the rest of the economy. I have helped ensure that the creative industries get tax relief. In June they had further funding of £70 million, which will leverage further private investment. There was an announcement in the recent autumn statement about further support for visual effects through the tax system. I am absolutely backing the creative industries. I want them to thrive and we are putting in place mechanisms to ensure that they survive. The BBC is part of that and is one of the things that I will take into account.

[Peter Gibson (Darlington) (Con)]

I welcome the statement from my right hon. and learned Friend. What further steps is she taking to encourage the BBC to maximise its commercial revenue in order to minimise the burden on licence fee payers?

[Lucy Frazer]

My hon. Friend makes an important point. I want to see a thriving BBC that can compete internationally and is getting further income. There are lots of opportunities for the BBC to explore, and I want to work with it very closely on those and understand them in greater deal. Whether that means international work and international charging or partnerships and joint venues, I want to make sure that the BBC has every opportunity to maximise its commercial income.

[Bob Blackman (Harrow East) (Con)]

I have always been a staunch defender of the BBC, not least because my late parents met when they both worked for the corporation, so I would not be here otherwise. However, the increasing challenges for news coverage and the bias that has crept in have been of concern to my constituents. I wrote to the director-general following the broadcasting of Hamas propaganda on the attacks on the Gaza hospital. That was left up on the BBC website literally all day, creating community tensions in my constituency. There was not a word of apology, not a retraction and not even a reply from the director-general. As we approach this review, can we make sure that built into it is the requirement for absolute impartiality and fact-checking of news before it is posted?

[Lucy Frazer]

My hon. Friend makes a really important point: because the BBC is so respected throughout the world, and because it has a reputation for providing impartial and accurate news, when it gets it wrong—in this case, it did get it wrong and it has admitted, now, that it did—the impact of that is more significant than when any other news outlet gets it wrong. Particularly on issues such as the one that my hon. Friend mentions, where there are consequences of inaccurate reporting both in the region and here, including for the Jewish community at home and the antisemitism that results from that, it is so important that the BBC takes time to reflect and makes sure that when it puts its news out, it is accurate.

[Jim Shannon (Strangford) (DUP)]

I thank the Secretary of State for her statement and for providing clarity. I am sure that she is well aware of my feelings about BBC reporting, which seems to be driven to a certain leaning and by an agenda that I have issues with—others have mentioned that as well. However, some of the programming is targeted at small and specific audiences, such as the Ulster Scots—I am very proud to be an Ulster Scot and I seek more Ulster Scots programmes on the BBC regionally—or the heritage programmes, which are always beautifully done. How will the Secretary of State ensure that the tightening that is done relates to paying presenters exorbitant wages, as opposed to cutting the niche programming that is necessary for the preservation of culture and heritage, which I love?

[Lucy Frazer]

I thank the hon. Member for his important question. I must emphasise that the BBC is operationally independent. It has a duty to provide diverse news and cultural programmes that are particular and relevant to the regions, and it must fulfil that duty under the terms of the charter and its public service mission. The decisions about who the BBC employs and what it pays is a matter for it, but it has obligations relating to transparency.

[Anna Firth (Southend West) (Con)]

I welcome the Secretary of State’s statement, and particularly the review of whether the BBC is being fair to taxpayers. I have to say, constituents in Southend and Leigh-on-Sea do not consider that they get value for money from the licence fee, and nor do they think that £3.8 billion is a good amount for the licence fee. Many have written to me to express profound concerns about the BBC’s coverage of the horrendous conflict between Israel and Hamas. This was about not just the BBC’s failure to talk about Hamas as an internationally proscribed terrorist organisation, but their genuine belief that BBC bias is stoking anti-Israel sentiment in our country, which, as I am sure the Secretary of State will agree, is very concerning. So will the review cover three points, as well as all the others: first, the impartiality of content; secondly, whether the licence fee should be mandatory any longer; and thirdly, the need to decriminalise non-payment of the licence fee?

[Lucy Frazer]

I understand my hon. Friend’s concerns about the language that the BBC has chosen to use in relation to Hamas. I have made clear my views—they are public on this issue—and I have stated on the record and raised with the BBC privately that Hamas is a terrorist organisation both legally and factually, and that it is important to call them what they are. As for her constituents’ concerns, all of us, of course, get comments from our constituents, and that is an excellent avenue for people to pursue. However, I remind her constituents and others that there are also formal channels through which they can make their views known, if they feel strongly that they should pursue those matters. We are looking at impartiality in the mid-term review, which we will publish shortly. Like her, I am also concerned about the prosecution of people and I have said that I will look at that in the charter review.

[Greg Smith (Buckingham) (Con)]

I welcome the announcement of the funding model review. It is the responsible thing to do given the changing media landscape that my right hon. and learned Friend mentioned. However, my constituents will raise an eyebrow at the BBC’s prices going up this year to deliver less, with the BBC having closed the Oxford newsroom and made severe cuts to Three Counties Radio. Will she lock into the review a mechanism so that if the licence fee is to remain compulsory for those wishing to have a television, there has to be a consumer test to properly monitor what viewers actually want to watch and listen to?

[Lucy Frazer]

As always, my hon. Friend makes some interesting points. As we look at the licence fee review and the funding review, it is really important that we consider all aspects very carefully. The BBC is there to provide a great service to the public, and that is what the public expect.

Bill Presented

Safety of Rwanda (Asylum and Immigration) Bill

Presentation and First Reading (Standing Order No. 57)

Secretary James Cleverly, supported by the Prime Minister, the Chancellor of the Exchequer, Secretary Oliver Dowden and Michael Tomlinson, presented a Bill to make provision about the removal of certain migrants to the Republic of Rwanda.

Bill read the First time; to be read a Second time on Monday 11 December, and to be printed (Bill 38) with explanatory notes (Bill 38-EN).

BBC Funding

Lucy Frazer Excerpts

Thursday 7th December 2023 Written Statements

[The Secretary of State for Culture, Media and Sport (Lucy Frazer)]

The Government are today announcing the level of the licence fee for 2024-25 and the launch of a review of the BBC’s funding model.

As agreed with the BBC in the 2022 licence fee settlement, following a two-year freeze the licence fee is due to rise in line with inflation from April 2024. The Government will use the annual rate of the consumer prices index in September 2023 to calculate this uplift. This is the same way the Government calculate inflation-linked increases to state pensions and benefits.

This decision means that next year’s licence fee increase will be kept as low as possible. In April, the licence fee will rise by 6.7%, to £169.50 annually. This will limit the increase to £10.50 over the year, or 88p per month, rather than a rise of £14.50, which would have happened under the previous CPI measure of an average of the 12 months to September.

The Government engaged with both the BBC and S4C to understand the impacts on the finances of both broadcasters.

The Government recognise that the licence fee model faces challenges in an increasingly competitive media landscape. The Government are therefore launching a review of the BBC’s funding model. The review will look at how we can ensure that the funding model is fair to licence fee payers, sustainable for the long term, and supports the BBC’s vital role in growing our creative industries.

The review will be led by DCMS and supported by an expert panel.

The findings of the review will support the Government to make an informed choice on whether to consult the public on moving to alternative funding models. This would take place as part of the charter review process, where any final decision on reforming the BBC’s funding model would be taken.

The terms of reference for the review will be published on gov.uk.

[HCWS107]