BBC: Funding

Debate between Stephanie Peacock and Julia Lopez

Wednesday 18th December 2024 Westminster Hall

[The Parliamentary Under-Secretary of State for Culture, Media and Sport (Stephanie Peacock)]

It is a pleasure to serve under your chairmanship, Mr Mundell. I echo the shadow Minister, the hon. Member for Meriden and Solihull East (Saqib Bhatti), in wishing a merry Christmas to everyone present, and congratulate the right hon. Member for Maldon (Sir John Whittingdale) on securing this important debate. He and I have had a lot of opportunities to debate the BBC together this week.

Let me start by responding to some of the points that the shadow Minister and others made. First, the right hon. Member for Maldon pointed out that it is a good time to have this debate. He opened by talking about the importance of public service broadcasting today. We spent many hours debating the Media Act 2024, which is legislation that goes to the heart of these issues and now falls to this Government to implement.

The shadow Minister and the hon. Member for Didcot and Wantage (Olly Glover) pointed out how many people access the BBC—over 90% every month—but also the fact that there are lots of important and challenging issues about BBC funding and the charter review.

It has been a good debate, and Members have rightly shared their own experiences and memories of the BBC. My hon. Friend the Member for Southport (Patrick Hurley) spoke about the shared experience we have as a country, and how the BBC brings us together. A week today we will all be watching the King’s speech and, of course, “Gavin and Stacey”—or at least I will be.

Members from all parties, and in particular my hon. Friend the Member for Bury St Edmunds and Stowmarket (Peter Prinsley), spoke about their passion and support for the World Service. The right hon. Member for Maldon serves on the Foreign Affairs Committee, to which I was pleased to give evidence. I am pleased that three Select Committees are taking such an interest in the topic. There are a lot of questions and challenges, but it is important that we put on the record our support for the World Service.

The shadow Minister asked questions about engagement with the BBC; the Secretary of State and I have met with the BBC and will continue to do so. The shadow Minister also asked questions about local radio. It is important to state that the BBC is operationally independent, but when I was in the shadow Minister’s place I made my views very clear, as did the hon. Member for Hornchurch and Upminster (Julia Lopez), who was the Minister at the time.

I will speak more broadly about the BBC before addressing some of the wider funding issues. For over 100 years the BBC has been a cherished British asset, making a vital contribution to our national life. It supports our democracy, brings our communities together and helps to shape and define our nation by telling the stories of people in all parts of the UK. The BBC has an almost unique role as a source of trusted news, both in the UK and to millions of people across the globe, as well as being a provider of cutting-edge programming and educational content for the nation’s children. It is so often the first to invest in the skills, the physical assets and the creativity to boost the creative industries in all corners of the country.

The media environment has of course changed over the BBC’s long history. Even since the start of the current charter period in 2017, when the Government were bringing iPlayer into the scope of the licence fee, the market has significantly evolved—a point that has been discussed. The right hon. Member for Maldon knows all that very well, not least because he served as Secretary of State for DCMS during the previous charter review.

The world is changing and, as the right hon. Member for Maldon outlined in his speech, for the first time half of 16 to 24-year-olds now do not watch broadcast TV on a weekly basis. We are seeing audiences increasingly turn to on-demand content, and more than two thirds of households subscribe to streaming services, compared with about a third at the start of the charter period.

The shadow Minister asked about some of the challenges that go to the heart of this debate. As an institution, the BBC has often needed to adapt, renew and grapple with an ever-increasing pace of change. That is something that the hon. Member for Aberdeenshire North and Moray East (Seamus Logan) spoke about in his contribution.

Next year, the Government will formally launch charter review with the need for adaptation in mind. We intend to use charter review to think through the operation of the BBC and how it thrives for not just the next 10 years, but well into the latter half of this century. We know that any reform to the BBC, particularly when it comes to funding, could have a major impact on the whole sector. We will consider that carefully as part of the charter review. We want to have a national conversation to make sure that the BBC truly represents and delivers for every person in this country, wherever they come from and whatever their background. That will include the opportunity for stakeholders and audiences across the country to respond to the charter review public consultation before the new charter comes into effect in 2028.

Our thinking will also be informed by my Department’s wider work. We are undertaking a project on the future of TV distribution to analyse how people receive their television now and through the next decade. That will help us to ensure the continuity of a sustainable TV ecosystem and the best outcome for audiences.

As we address vital questions about the future form of the BBC head on, we must also ensure that there is a sustainable funding model that is fair to those who pay for it. These are undoubtedly complex issues, on which people hold strong opinions, but this Government want to have an open and honest discussion about them in the public’s best interests.

We are fully committed to retaining the licence fee for the rest of this charter period, but we cannot ignore the fact that challenges to this funding model in its current form are increasing, as has been highlighted in the debate. The media market is more competitive than ever, with the emergence of streamers and social media platforms operating on a global scale. That has meant less money for the BBC to invest in our creative industries, in talent and skills, and in telling our stories. It has also resulted in cuts to BBC services, which the hon. Member for Salford (Rebecca Long Bailey) spoke about.

The Secretary of State has announced that we will take forward work on BBC funding as part of the charter review process to bring together the linked issues of what the BBC does, its future role and how it is funded. The Government are keeping an open mind about the future of the licence fee.

The right hon. Member for Maldon referred to his chairing of the Culture, Media and Sport Committee. More recently, the Committee’s 2021 report on the future of public service broadcasting found that there are a range of options for funding the BBC, but none are perfect.

[Julia Lopez]

The Secretary of State has talked about her support for mutualisation, but it has never been clear to me what that actually means. Could the Minister give us more details?

[Stephanie Peacock]

I will happily ask the Secretary of State to write to the hon. Lady. However, in talking about mutualisation, which the Secretary of State made some comments about some years ago, I think it is about having a greater role for the public in BBC accountability and the public feeling more ownership of it. But we will happily write to the hon. Lady with more detail, as I do not want to speak on the Secretary of State’s behalf.