BBC Investment (East and West Midlands)

Andrew Bridgen Excerpts

Tuesday 23rd June 2015 Westminster Hall

[Mark Spencer]

I wholly agree. If we pursue the hon. Gentleman’s argument that every pound that the BBC spends creates £2 in the local economy, the economy of the east and west midlands would benefit by £786 million—a substantial amount of investment.

Let us compare the midlands with other areas. In the midlands, the BBC spends £12.40 per head. In Wales, the figure is £122.24 per head; in Northern Ireland, it is £103.14 and in Scotland, £88.73. In the north of England, it is £80.24, and in London, it is a staggering £757.24. By any stretch of the imagination, that makes the midlands the poor relation when it comes to BBC investment.

[Andrew Bridgen (North West Leicestershire) (Con)]

I commend my hon. Friend on securing the debate. Does he agree that one fundamental problem is that the BBC’s funding mechanism—the licence fee, which is backed by criminal sanctions for non-payment—means that midlands licence fee payers have little influence over the BBC’s spending strategy? However, if the BBC’s funding were moved to a voluntary subscription mechanism, that would give subscribers in the midlands a lot more power, and the BBC would not be able to ignore them in its spending strategy.

[Mark Spencer]

My hon. Friend has a long-standing record of being supportive of the BBC—of being a critical friend. The licence fee and a subscription service are a separate debate for another occasion.

One could argue that the midlands has always been the poor relation, but that is not true. Since 2009, spending in the midlands has fallen by 35.25%, to well below what is spent in London. In the same period, spending in London fell by 16.5%, but investment in the north rose by 217%, and every other region has seen increased investment, apart from the midlands.

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[Julian Knight]

The hon. Lady is spot on. The BBC has created a bipolar organisation that transports people from London to Manchester. There is no real regional diversity to its broadcasting. I am horrified to learn of the BBC Asian Network’s being moved from Leicester to London, a prime example of that. I commend the campaign by Trinity Mirror and The Birmingham Post, and in particular the journalist Graeme Brown, who is highlighting an important matter that has brought many parties together.

We are in a bit of a dead zone for the national broadcaster in the west and east midlands. The BBC has perhaps seen regional diversity as something to be endured rather than embraced. If the BBC is to reconnect with the public at a time of mass digital communication, when we have many different ways of viewing and listening to content, it should consider drilling right down into the regions and offering something more regionally-based.

[Andrew Bridgen]

Whenever the BBC’s income stream is considered to be under threat, the first thing it says it will have to cut is regional radio in the east and west midlands, further reducing its already small presence there. Is my hon. Friend as horrified as I am at that? Should the Minister not tell the BBC at charter review that that would be completely unacceptable?

[Julian Knight]

My hon. Friend makes a good point. Regional broadcasting seems to be seen as an expense to be endured, rather than something that would deliver value for viewers and listeners, be valued and reconnect the BBC with the wider public once again.

Many Members here are of a certain age and can remember the time of mass broadcasting, with the shows of Morecambe and Wise getting 20 million viewers. These days, younger people, under the age of 25, will not understand the connection that many of us have with the BBC. If the BBC is going to survive in the long term, it needs to reconnect with the public. One key way of doing that is greater regional broadcasting and developing regional talent.

I appeal to BBC management to consider the case for the midlands, to redress the balance and genuinely to embrace regional diversity at the next charter renewal—not see it as some sort of sop that will buy it another seven years, which is what happened last time. We need not a bipolar organisation but one that takes its broadcasting out to individuals.

I am not that encouraged at what I have heard so far from the BBC. Its agenda for charter renewal seems to involve a crackdown on those not paying the licence fee for content on digital devices, retention of criminal sanctions against non-payers and a potential inflation of the licence fee. The BBC needs to understand that we are in the antechamber to the end of the licence fee and that we need to see a path out of it in the long term. The BBC can reconnect and offer better value for what it delivers by focusing on its core services. I argue strongly that its core service is regional broadcasting and delivering for the people of the east and west midlands.

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[Steve McCabe (Birmingham, Selly Oak) (Lab)]

I congratulate the hon. Member for Sherwood (Mark Spencer) on securing this important debate. His constituency and mine are at opposite ends of the midlands, but we have in common a sense of injustice about the poor return for our licence fee payers on the investment that they make.

What we need from the BBC is simple: a fairer share of the spend and a much firmer commitment that BBC production will be brought to our region. For far too many of my constituents and, I suspect, people across the midlands, the BBC means London, Cardiff, Salford, Bristol, Belfast and Glasgow—the big six—and indeed anywhere but our region. Various people have cited the figures; the simple fact remains that midlands licence fee payers contribute about £942 million to the BBC and get back about £80 million in investment, less than 9% of the total licence fee. I do not think that anyone would see that as fair.

[Andrew Bridgen]

Is the hon. Gentleman aware that the BBC spent £1 billion on the new Broadcasting House and wrote off £100 million on a failed digitisation project last year?

[Steve McCabe]

We can all criticise failures in spending, but the central point that I am making is about inequitable spending. However, I take the hon. Gentleman’s point.

A brief that the BBC sent me for this debate reminded me that the Mailbox is the home of the academy, the workplace and outreach. That is great, but what the brief did not contain was the number of new jobs and apprenticeships associated with those initiatives. I would like to know how that compares with the £180 million new studio and the 1,000 new jobs for MediaCity in Salford. I would also like to know why, as my hon. Friend the Member for Birmingham, Edgbaston (Ms Stuart) pointed out, the bulk of production is technically still located in London.

I am told that the BBC is anxious to use Birmingham as an innovative test bed because we are the youngest city in Europe and we are truly multi-ethnic and multi-cultural, but I want to know where the substance is. Where are the new formats, technologies and jobs for the midlands? It is time we saw some of the hard data. I want to know that all those promises will come true and that there is plan to work with the Ormiston academy, the Rep theatre and Birmingham City University. I have heard plenty of talk; it is time we saw some action. We need to know that there is a real programme for mentoring and apprenticeships in the midlands, and we need to know that digital innovation is more than just a form of words.

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[Edward Argar (Charnwood) (Con)]

It is a pleasure to serve under your chairmanship, Ms Dorries. I congratulate my hon. Friend the Member for Sherwood (Mark Spencer) on securing this important debate and on drawing attention to the appallingly inequitable funding allocated by the BBC to our region. I will endeavour to be brief, not least because my hon. Friend set out the issue so well with his usual clarity. I must say that, on being elected to the House—I am making my first contribution in this Chamber today—I never expected to find myself as fully in agreement with the hon. Member for Birmingham, Selly Oak (Steve McCabe) as I am.

The proud tradition of broadcasting in the east midlands highlighted by my hon. Friend the Member for Sherwood and the right hon. Member for Leicester East (Keith Vaz) extends to Leicestershire, too. For example, BBC Radio Leicester does a first-class job of serving the people of Leicester and Leicestershire. That organisations such as BBC Radio Leicester continue to be trusted and listened to in such numbers by my constituents is in large part down to the talent and hard work of the journalists and broadcasters, and not down to their receiving fair levels of BBC investment, which, as we have heard, certainly does not reflect the licence fee paid by our region.

[Andrew Bridgen]

I would like to make sure that the Chamber is fully aware of the size of the BBC. If we include BBC Worldwide in the BBC revenue stream, it gets about £5 billion a year. That is comparable with the United Nations and twice the annual budget of the Foreign and Commonwealth Office.

[Edward Argar]

My hon. Friend makes an extremely important point with force and clarity, as always. My constituents have no choice about paying their licence fee. On this occasion, I will not labour my view that non-payment should be decriminalised, but the least they should be able to expect is a fair deal and a fair share from what they pay. I hope that as we look towards charter renewal, issues such as the BBC spending bias against the midlands will feature in that debate. I fully endorse the points that the hon. Member for Leicester South (Jonathan Ashworth) made about local political journalism in the east midlands and its importance to our democracy and to all of us being held to account by local journalists producing local content.

Some 25% contributed and 2% received is disgracefully unfair as an equation, however we look at it. That cannot be allowed to go on. It is time for the BBC to escape its apparent London-centric investment bias and once again fully seize on the talent and energy of the midlands by investing and producing more in our region. I hope that the Minister will ensure that the BBC receives the strength of hon. Members’ views clearly, particularly in respect of how much we and our constituents value truly local content. The point was well made by my hon. Friend the Member for Solihull (Julian Knight) that the BBC needs to approach charter renewal recognising that it must continue to change and to listen to those who listen to it and who have no choice but to pay the licence fee, and not simply ask us for more money.

[Susan Elan Jones (Clwyd South) (Lab)]

It is a great pleasure to serve under your chairmanship, Ms Dorries. I thank the hon. Member for Sherwood (Mark Spencer) for securing what has been a passionate and committed debate. I was fascinated as he went through the history and heritage of TV and radio broadcasting in the east and west midlands. I thank all hon. Members who have made speeches and interventions. I thank my hon. Friends the Members for Birmingham, Edgbaston (Ms Stuart), for Birmingham, Selly Oak (Steve McCabe) and for Birmingham, Northfield (Richard Burden). I thank the hon. Members for Solihull (Julian Knight) and for Charnwood (Edward Argar). I also thank my hon. Friend the Member for Stoke-on-Trent South (Robert Flello) for his perceptive and incisive interventions in this important debate.

I pay tribute to the long-time campaigners. The campaign has been truly cross-party and has the support of the new Chair of the Culture, Media and Sport Committee. I also pay tribute to the campaigning of The Birmingham Post and the Birmingham Mail, which has been so important in placing the issue on the national agenda.

We are here to discuss BBC investment in the midlands. The main investment the BBC makes is in BBC Birmingham. My hon. Friend the Member for Birmingham, Edgbaston is right: those of us who live in the borders of north-east Wales have seen a lot of it—sometimes by choice, sometimes through transmitter problems; we do not always get BBC Wales, which is a subject for another day. There is no question but that BBC Birmingham has a proud history, having produced “Pebble Mill at One” and “Boys from the Black Stuff”. Across the midlands, the BBC produces “Midlands Today”, “East Midlands Today”, “Look East” and online content, and there are 14 local radio stations. BBC Birmingham makes great shows, such as “Doctors”, and it is the home of the BBC Asian Network, which was mentioned earlier.

BBC Birmingham also produces the great, popular radio drama, “The Archers”—I confess that I always thought it was based somewhere in the west country, not in the constituency of my hon. Friend the Member for Birmingham, Edgbaston. “The Archers” is more than 65 years old, but its listeners are of all ages and live around the world. Since FM radio waves travel through space, we can confidently say it reaches as far as Pluto. It has even been suggested that the theme tune of “The Archers” should be the English national anthem. It does not quite compare to “Hen Wlad Fy Nhadau”, but it is pretty good, and the programme is an extraordinary international production.

There are clearly very serious concerns about this issue. For instance, a quarter of licence fee payers live in the west and east midlands, but the area receives 2% of BBC spending. Last year, that meant the BBC received £942 million, and the midlands got £80 million back. The BBC is investing only £12.40 per capita in the midlands. Such figures have real consequences for infrastructure, and therefore for programming.

The BBC has little to no commissioning or production facilities in the midlands, and no primetime BBC 1 programmes are made there. In fact, the BBC does not make anything on BBC 2, BBC 3 or BBC 4 in the midlands, nor on Radio 1, Radio 2, Radio 3 or Radio 5. A small chunk of investment means a small chunk of infrastructure, which means a small chunk of programming.

At least three main problems have been raised in this debate. The first is the simple matter of fairness, which has been mentioned by many hon. Members. My hon. Friend the Member for Birmingham, Edgbaston previously referred to it as a mismatch, and she is absolutely right. One estimate is that the midlands pays out 12 times what it gets back.

The second problem relates to the infrastructure of creativity. The BBC is the central part of the United Kingdom’s creative and cultural ecosystem, and at a national level it plays a key role in training and fostering talent, encouraging investment and exports, and raising standards across the market. The £3.5 billion we pay for it is our single biggest investment in the arts. At a regional level, it helps to ground creative clusters, which can be seen most clearly in its move to Salford. The MediaCityUK cluster of creative firms and workers is grounded by the BBC. The investment it makes in the midlands—particularly in training and digital—helps to ground the area’s growing creative scene. More investment would mean a better and more flourishing creative ecosystem.

The third problem relates to what we see on our screens and hear on our radios. The hon. Member for Solihull spoke about diversity and regional content. This issue is about not only wanting more spending, but reflecting our country back to itself. It is important that we have stories from every part of the country. In every nook and cranny of the United Kingdom there is a unique viewpoint and a voice that we need to hear in our national conversation.

The Labour party is clear that we believe in a BBC for everyone, which is why we support the existence of the licence fee. The fundamental principle is that everyone pays in and everyone gets something out. People need to feel they are getting something out and that the BBC is worth it. I accept that not everyone agrees with that, but that is where the Labour party stands.

[Andrew Bridgen]

Will the hon. Lady clarify the Labour party’s position? Is it in favour of or against the continued criminalisation of non-payment of the TV licence?

[Susan Elan Jones]

There are major issues to be looked at, and we believe that that needs to happen in this debate on the BBC charter. It is not a little opt-out alone; the debate is much too important for that.

The BBC has recognised that there is a disparity. When Tony Hall become director-general in 2013, he visited the Mailbox and announced additional investment. In particular, the focus on training and digital was a sign of investment in the future of the BBC, as my hon. Friend the Member for Birmingham, Northfield said earlier. However, the issue has not gone away; the question is what we do now.

On 19 March, the Prime Minister was asked about BBC investment in Birmingham and the midlands. He said that

“the charter renewal is a good time to have that conversation”

and that

“these are the questions we will be able to ask in the charter renewal process which starts after the election.”

We agree with the Prime Minister on that. We are past the election and should be getting on with charter renewal, which is the right time to have that conversation. Charter renewal is our opportunity, every decade, to ask ourselves, “What do we want the BBC to do?” We re-examine the BBC’s purposes, governance, funding and investment in the round.

The Culture Secretary’s Select Committee report, “Future of the BBC”, laid out a road map for how the process would work. It basically means copying the successful model that Tessa Jowell, Labour’s Culture Secretary, took us through 10 years ago. That was a vibrant, open, consultative, national conversation about the BBC’s future. It is time to do that again. Labour wants an open and transparent national debate to start as soon as possible. We want all the excellent campaigners to be able to make their case in an open, transparent process, so the Government need to get on with it. The last charter renewal process was three years long. In a week’s time, it will be half that—a year and a half—until the charter runs out. Today, there are only 557 days to go. It is worrying that the Government seem inactive, saying, “We’ll make an announcement in due course.”

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[Mr Vaizey]

That is exactly the point. To a certain extent, where the BBC makes its programmes matters, because it effectively acts as an anchor for a creative cluster. Nobody would argue that “Dr Who” reflects Welsh culture, but people could certainly argue that it supports the Welsh creative industries, just as the BBC’s investment in S4C does. However, one would perhaps argue that the transmission of some programmes from different cities helps to reflect the wider cultural aspects of the United Kingdom.

[Andrew Bridgen]

When my hon. Friend the Minister speaks to the BBC about its lack of footprint in the midlands, I ask him not to accept the fact that it has had its licence fee frozen for five years, because that has not diminished the income stream—

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[Mr Vaizey]

Good point.

Basically, I am but a junior Minister and I think that hon. Members in Westminster Hall today can reflect on the fact that they have the support of the Prime Minister. He has already been quoted, but I will quote him again; quoting the Prime Minister never does one any harm. He said that

“the charter renewal is a good time to have that conversation and make sure the West Midlands gets a fair bang for its buck.”

[Andrew Bridgen]

And the east midlands.

[Mr Vaizey]

And the east midlands, but the quote is about the west midlands; the Prime Minister meant to say the west and the east midlands. And the Mayor of London, my hon. Friend the Member for Uxbridge and South Ruislip (Boris Johnson), has spoken, and of course the Chairman of the Culture, Media and Select Committee, my hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman), describes himself as a midlands MP representing Hereford. So there is strong support for this idea.

Before the recess, we will set out what we will do in terms of the charter review, so I hear what the hon. Member for Birmingham, Edgbaston says about getting on with it, and I can guarantee to hon. Members in Westminster Hall today that they have made such a strong case that it will be reflected in what we set out.