BBC Mid-term Charter Review

Debate between Andy Carter and Nigel Evans

Thursday 9th May 2024 Commons Chamber

[Andy Carter (Warrington South) (Con)]

Let me start by congratulating my hon. Friend the Member for Stone (Sir William Cash) on securing this important debate. I class myself as a critical friend of the BBC—I am not sure whether that makes me a sympathiser or not. I want to see the BBC prosper in the new media age, but that inevitably means we will see change at the BBC, in response to the global creative boom we are witnessing. As my right hon. Friend the Member for Ashford (Damian Green) said, we should not underestimate the soft power involved here: the selling of UK plc around the world by the BBC and its work. However, we simply cannot expect the British public to accept an ever-increasing licence fee if they perceive the values and approach of the BBC to be out of kilter with their world.

My constituents tell me that they value the BBC. They value a British public service broadcaster, particularly for news and current affairs, but it seems that the BBC does not value the type of news and current affairs that my constituents want, particularly around local news. It is disappointing that the one area where the BBC can genuinely make a difference—local provision—has been the area that has been cut and withdrawn in recent months. My constituents are concerned about opinions that are presented as facts. They want creativity and innovation, but they want to see the world through eyes that are from their local area. They want to see their town or their street reflected on the screens or heard through the speakers of their BBC radio station.

Its best and most distinctive content is unrivalled in range and quality, while being highly valued by listeners and viewers. Some of its services and programmes would simply not be possible to provide on a commercial basis. As I said earlier in response to the hon. Member for Ellesmere Port and Neston (Justin Madders), services like Radio 4 simply would not exist in the commercial marketplace.

The majority of my remarks will pick up on the comments made by my right hon. Friend the Member for Ashford about what the BBC should be doing as we move forward post the mid-term review, and thinking about the next licence fee settlement. The mid-term review provided a valuable insight into the BBC’s governance and regulation arrangements, and whether they have successfully enabled and effectively delivered the BBC’s mission and public purpose. I particularly welcome the mid-term review agreement with Ofcom and the recommendations to change the framework agreement, so that new BBC services are not automatically considered material changes.

There is lots of value in Ofcom publicising an annual view on the BBC’s position in the local news sector, and setting out its approach to considering the competition impacts of changes to BBC local news services, particularly in relation to the local press, which is struggling significantly. The BBC’s decision to move more of its resource online has a consequence and impacts local journalism that is supported by advertising. For me, Ofcom should take serious interest in that. Ofcom has said it will set out a view for the first time in November 2024, and subsequently use its annual report on the BBC to update its view. I particularly welcome that.

I will take a few moments to specifically look at the competition and market impact in relation to the audio and radio sectors. For context, let us start by looking at the audience of BBC Radio. The combined weekly audience for all BBC and commercial radio in the UK remains extremely healthy. Some 49.5 million people, representing 88% of the population, put their radio on every week to listen to a linear service. In the last quarter of 2023, the most recent figures published by Radio Joint Audience Research, BBC Radio’s share of total listening is 43.2%. One operator has 43% of the radio-listening market; that remains a significant, dominant position. The remaining 56% is split between myriad much smaller commercial operators. The BBC holds an extremely privileged position because of the scale of funding it receives, its unrivalled broadcast network and its ability to cross-promote its services, the like of which is not available to any rival operator, be that in television, radio or online.

I advocated changes to the BBC Trust back in the early 2000s, but it is fair to say that there has been a relatively light-touch approach to defining and policing the activities of the BBC that most closely resemble the commercial sector in the radio and audio world. Traditionally, this has included the main pop music services—Radio 1 and Radio 2—but the BBC is also increasingly leveraging its position in radio and audio into its online activities provided on the BBC Sounds platform.

This debate provides me with an opportunity to highlight the current process of consultation over the launch of new services on all platforms, including BBC Sounds, as well as the effectiveness of regulation and governance from Ofcom in ensuring its distinctiveness. Specifically, the review looked at how the BBC and Ofcom assess the market impact and public value of the BBC in an evolving marketplace and how this relates to the wider UK media ecology, including with regard to commercial radio and local news sectors, and other content makers and distributors. It is important that regulatory conditions for BBC radio services are not diluted and that the drive for the BBC to deliver distinctive output remains.

The BBC has been repeatedly and rightly criticised by Ofcom for not meeting the required standards of openness with stakeholders, especially when new services are being developed. Earlier, I detailed that a more structured consultation is required, which is what Ofcom is urging the BBC to do. The current framework places too much emphasis on the BBC’s own judgment and assessments of impacts, especially when considering the significance of change to its own services. This undermines the credibility and independence of the process. Ofcom can and should do more to make sufficiently robust assessments of competitive impacts, and needs to set out a clearer and more consistent requirement for the BBC.

The extent of the BBC’s significant dominance in sectors such as radio and the implications of this for both distinctiveness and market impact must be reflected more clearly. BBC services must be measured and held to account to the highest possible standards of distinctiveness. Just last week, when I met people from the BBC, I asked for some data relating to digital audiences. The reply I received is that they would be publishing them annually. That is simply not good enough.

In February, the BBC announced plans to launch new spin-off radio stations on DAB and BBC Sounds, which would directly imitate radio services provided currently by the independent radio sector. My view is that these new services are duplicates and they fail to deliver distinctive output to listeners already concerned about changes to their beloved BBC local radio services. The changes require regulatory approval from Ofcom, and I have raised my concerns directly with the Minister and the regulator. I am concerned that the BBC is attempting to fast-track proposals on BBC Sounds, which is subject to less regulatory oversight than the DAB services.

As listening habits continue to shift online, there is a real risk of harm to popular and innovative commercial stations developing across the UK. Stations such as Boom Radio have moved in to deliver popular services for the over-50s when Radio 2 moved its services to a younger age group. If this service is launched exclusively on BBC Sounds, and it inevitably receives significant cross promotion on BBC 1 and on Radio 2, it will drive audiences and can impact commercial operators significantly.

In March, the BBC confirmed new plans, for the first time in the UK, to run advertising around its podcasts and on-demand content on third party platforms, such as the Apple podcast app. If these proposals are introduced, listeners who do not use BBC Sounds would, in effect, be paying twice for BBC content. They have already paid their licence fee, which has contributed to making the content, but then they will be paying again through advertising revenues. The BBC is unfairly forcing licence fee payers to pick between ad-free listening on BBC Sounds or their preferred podcast platform. Listeners should be entitled to access BBC audio content, such as “Desert Island Discs”, via whatever means they choose. Although the podcasting advertising market is in its relative infancy, the BBC is dominant in UK audio, which is different from the TV market and, as a result, its impact could and probably will be significant. There is only a limited pool of audio advertising revenue, as my hon. Friend the Member for Folkestone and Hythe (Damian Collins) referenced, with commercial audio broadcasters relying solely on that revenue to fund their services and invest in professional content.

Ironically, there is a risk that the new proposals will have an unintended consequence for the BBC. As we look at the future of the licence fee, observers may reasonably question, if some BBC audio services could be funded by advertising, why not do that to all their radio provision, or to the BBC as a whole? Analysis conducted by an audio think-tank has already identified that, were that to be the case, probably only Radio 1 and Radio 2 would continue to be funded, because they are the only services that would be commercially viable. I am very supportive of public funding for the BBC under the current licence fee model, simply because I do not think that a suitable alternative could be proposed at this stage. Given what I believe to be the unworkable nature of alternatives such as a subscription model for DAB or FM audio, we simply cannot allow anybody to railroad us into scrapping the licence fee at this stage.

I support the Government’s aim of ensuring that a strong, distinctive, independent BBC can continue to thrive for years to come. I also want us to take opportunities to improve the BBC where we can. My hope is that the mid-term review is a staging post in the charter that will help the BBC to live up to that ambition, support the corporation to fly the flag for Britain in all corners of the world, and address the risk that the BBC, which is not regulated and focused on distinctive content, risks the very future of public service broadcasting and innovation within the independent creative sector.

[Mr Deputy Speaker (Mr Nigel Evans)]

We now come to the Front-Bench contributions. The last two minutes will be for Sir Bill to wind up.

BBC Local Radio

Debate between Andy Carter and Nigel Evans

Thursday 8th December 2022 Commons Chamber

[Andy Carter (Warrington South) (Con)]

It is a great pleasure to follow my hon. Friend the Member for Southend West (Anna Firth), and I am grateful to my right hon. Friend the Member for Hemel Hempstead (Sir Mike Penning) for securing this important debate. I speak not only as the Member of Parliament for Warrington South, but as chair of the all-party parliamentary media group and the all-party parliamentary group on commercial radio, and I spent all my life, before I came to this place, working in radio.

There is something very special, indeed unique, about local radio’s relationship with its audience. It provides companionship, news, information and entertainment in a way that most other media simply cannot achieve. As my hon. Friend the Member for Watford (Dean Russell) said, it is about the voice that emerges from a speaker in the corner of the room and talks one to one with the listener. Most listeners are doing something else while they are listening to the radio—they are driving a car, making tea or in the shower—and that opportunity to be part of a radio community is something very personal, portable and social. Radio is a medium that allows us to use our imagination to build pictures in our own minds in a way that no other medium can.

Local radio has a unique place in our media ecology. It is the space on the dial that jumps out and says, “We are all about the towns and villages that are familiar to you.” The travel news talks about the motorway that we are on, not the one on the other side of the country. Local radio features the high street where we do our shopping. It is about the town hall to which we elect our councillors. It is where the daily phone-in happens, when residents can go on air and share their views in authentic accents, using words that only local people understand to talk about the issues that really matter to them. Great BBC local radio stations around the country have the ability to connect in a unique way, providing for their audiences and for the whole community. Commercial radio simply cannot provide that. It is not that commercial radio is not great, but it is not licensed to do what BBC local radio does. BBC local radio has a special place on the dial.

Given what I have said about the unique role of BBC local radio, it is perhaps not surprising that I am concerned to hear about the BBC management plans to regionalise programming content after 2 pm each day, and to share programmes over the weekend. The weekly peak for many stations is Sunday morning. Why give that away to regional space when listeners are specifically tuning in to find out about their local area? I worry about what that says to local audiences about how much BBC management values local listeners.

I take this opportunity to acknowledge the work of the BBC teams creating local content for Radio Merseyside and Radio Manchester in my area. The Friday afternoon programme on Radio Merseyside presented by Claire Hamilton provides distinctive local content that I cannot hear anywhere else, but it will be lost. On Friday 11 November, Radio Merseyside did an outside broadcast from Tate Liverpool not only focusing on the Turner prize but celebrating the local arts scene across Merseyside. By inviting contributions from listeners, it provided a rounded experience of what is going on in the city and across Merseyside.

The following Friday, Claire was in Cheshire presenting a special programme on the upcoming City of Chester by-election, which included an hour-long daytime debate with the main parliamentary candidates, which is something only the BBC can and should be doing. Last week Radio Merseyside carried a special broadcast on knife crime to mark the murder of Ava White a year ago, and it culminated in an hour-long feature analysing what has changed in the city.

I have heard from many listeners who are worried about losing the friend on the radio they know and trust. I have also heard from people who work inside the BBC, and they are disappointed and angry about how the BBC is treating local radio. They know it will have an impact on ordinary listeners and licence fee payers, for whom local radio services top their list of BBC products.

I was struck by an email from a person who works at the BBC, saying that the teams working in local radio know their listeners like nobody else, “They tell the stories. They laugh with their listeners. They celebrate the wonderful events that take place in the cities and in the towns, and they grieve with them when tragedy strikes. They are the friends on the radio, and that is what is at risk.”

Listeners in my constituency have a massive range of stations from which to choose, but no other channel delivers content in the way BBC local radio does. The BBC holds an extremely privileged position as the nation’s public service broadcaster, but it is also our local communities’ public service broadcaster. The charter granted to the BBC sets out specific obligations and gives it an advantage that no other service provider can match.

First, the BBC has unrivalled funding from the licence fee. Secondly, it has a network of transmitters and streaming platforms, meaning audiences can pick up services on whichever platform they choose, which is a massive advantage over many other broadcasters. Thirdly, BBC local radio benefits from cross-promotion opportunities on the BBC’s television and online services. BBC local radio should be growing because it benefits from the wider BBC operation.

In fact, adding national radio, the BBC maintains a 50% market share in UK radio, which is far in excess of its TV market share of around 28%. The BBC is expert in radio, yet it wants to withdraw from local radio. I have shared my views with BBC executives and, in some respects, I believe the route they are taking will probably hasten the demise of local radio. In every part of the media landscape, the ability to personalise and precisely target audiences benefits a channel. By merging services, the BBC is effectively creating Radio Nowhere, which means audiences are likely to go elsewhere.

Matching cities and towns such as Leicester and Northampton to share programmes makes no sense. Anyone who knows the east midlands media market knows that Leicester, Nottingham and Derby have always sat together—that is the TV region. Why suddenly stick Northampton with Leicester? It makes no sense. Two minutes looking at the latest radio audience tables shows clear evidence that stations that remain fiercely focused on their local audiences, such as Radio Cornwall, maintain the highest market share of local radio in the UK. If you focus on a geographic area and serve it well, you will generate reach and time spent listening—it is as simple as that.

I urge the Minister to read a report published about 10 years ago by one of the UK’s leading radio executives, John Myers, who is sadly no longer with us. He was commissioned by the now director-general of the BBC in 2011 to review all the BBC’s radio services. Sadly, many of his recommendations have never been taken up and I feel certain, having read that report again today, that it would deliver better value for licence fee payers and would result in more popular, distinctive and sustainable services for the BBC.

I would like to use my remaining few minutes to focus on the independent regulation of the BBC by Ofcom. As the Minister will know, the Secretary of State has already set out the terms of reference for a mid-term review of the BBC, focusing on the governance and regulatory arrangements. This is a timely opportunity to look at the operating licences for all the BBC radio services, but particularly for local radio, which have been reduced and made less robust since Ofcom took over the regulation of the BBC. Having been involved with challenging the BBC Trust 15 years ago, I never thought I would get to a stage where there was less regulation of the BBC than there was with the BBC Trust, but sadly Ofcom has managed to achieve that.

The proposed operating licences being put forward by Ofcom remove a significant number of quotas that are essential for the BBC to be distinctive and to meet its public purposes. The few that remain are 15 years old and not as a relevant as they were. Although some of Ofcom’s updates to the operating licences are welcome, I share the concerns raised by Radiocentre that the proposed operating licences simply fail to adequately regulate and enhance the current provision provided by the BBC. Strangely, Ofcom appears to have accepted in principle the importance of retaining quotas in order to guarantee a minimum level of distinctive output but then, despite that acceptance, proposes to remove most of them and dilute core elements of the BBC’s public service broadcasting. Notably, on BBC local radio the proposal is to reduce the requirements of speech at breakfast time from 100% to 75%, so news output will actually reduce on BBC local radio at the peak breakfast time.

BBC local radio will be less tightly regulated than the commercial radio equivalents, who are providing news and speech for audiences but receive zero public funding. I am pleased that Ofcom proposes an operating licence for BBC Sounds, as that is long overdue, but it is the woolliest operating licence I have ever seen. It simply creates a situation where the BBC has a mandate to create services to compete against commercial services. I urge the Minister to look at that again. Finally, removing the requirements to deliver niche genre content—arts and religious content—simply allows the BBC to walk away from that as the corner foundation of public service broadcasting.

To conclude, the age profile of BBC local radio is older, with 33% of listeners over the age of 65. Its age profile is less attractive commercially and therefore is less likely to be served by other operators. This is the space that a publicly funded public service broadcaster should be operating in. Most critically, there is a need to update the BBC’s operating licences, and I do not believe Ofcom’s current proposals are sufficiently comprehensive to hold the BBC to account and to ensure it delivers distinctive content. Frankly, the entire direction of travel by Ofcom, given that the BBC is a public service provider, is to give the BBC more freedom. The BBC receives £3.8 billion from the licence fee and it is not unreasonable to ensure that regulatory conditions are in place to ensure the corporation delivers the public purpose set out in the BBC charter. The services provided by the BBC should be distinctive and should deliver an output that is public service-orientated, rather than simply offering a service that is already provided by other operators.

[Mr Deputy Speaker (Mr Nigel Evans)]

On behalf of the Speaker, the right hon. Member for Pendle (Andrew Stephenson) and myself representing Ribble Valley, I say three cheers for Radio Lancashire. It was great having the team at the Speaker’s Rooms on Lancashire Day when they broadcast the early morning programme with Graham Liver—three cheers for him and his team—and we look forward to welcoming them back next year. Hopefully, they will not give me the 7 am slot again—that is an early plea, Graham.

Budget Resolutions

Debate between Andy Carter and Nigel Evans

Tuesday 2nd November 2021 Commons Chamber

[Andy Carter (Warrington South) (Con)]

I commend the opening comments of my right hon. Friend the Education Secretary, particularly the emphasis he placed on skills and education, because that is our route to levelling up. I also pay tribute to the Chancellor and the entire Treasury team for the work they did to deliver the Budget last Wednesday.

We need to recognise the news that the economy is growing much faster than anybody predicted, and much faster than any other G7 country. Looking back 12 months, everybody in this House had a genuine fear about an unemployment crisis. Certainly the models were predicting a very difficult period. While we should not underestimate the challenges that many families still face, it is absolutely clear that those predictions have not come to pass. Unemployment appears to be peaking at much lower levels, largely owing to the actions taken by this Government and my right hon. Friend the Chancellor. I congratulate him on the work that he did around the furlough scheme to ensure that businesses could support their employees through that incredibly difficult time.

In general, I welcome many of the measures that the Chancellor introduced last week—in particular, the tapering of universal credit. I am also very pleased to see the national living wage being increased to £9.50 an hour, thereby, as he said, putting about £1,000 into the pockets of the lowest paid. It is good news to see the public sector pay freeze being lifted as well.

As a Member of Parliament in the north-east representing the brilliant people of Warrington South, I was very glad to see many of the announcements that will relate to the levelling up agenda in my part of the country. Levelling up is not just about bricks and mortar; it is also about our public services and how they are delivered and setting higher standards for local communities that have been ignored for too long. It is about ensuring that opportunity is spread equally around the UK, giving people the chance to realise their full potential, no matter where they come from, without having to travel to the south-east.

Talking of travel and transportation, improving transport links locally has a massive part to play in levelling up. If people cannot get to a job, it is impossible to tackle the underlying issues around unemployment. I welcome the decision to freeze fuel duty and to invest in public transport. I was struck by a conversation I had with a gentleman called Patrick in Stockton Heath in my constituency. He is a pensioner who had given up using his car and wanted to spend a night out in a village enjoying some craft beers, but because he lives outside the big city, the last bus ran at 7 o’clock in the evening, so having arrived at the pub he could not get home and ended up spending far more on a taxi than he spent drinking that craft beer. Whereas buses run 24/7 in cities around the country such as London, Manchester and Leeds, far too often in towns such as Warrington they switch off and stop running at 7 o’clock in the evening—and it is nigh on impossible to travel outside of Warrington, from Warrington to Altrincham or Warrington to Leigh. So the announcement that Warrington is to get a £20 million all-electric bus fleet, run by Warrington’s Own Buses, is of huge benefit to the town and something I really welcome. On top of that, the Government have funded a new electric bus depot at a cost of £5 million. We will be one of the first areas in the north of England to get a totally electric bus fleet, with 120 new buses being phased in over the coming year, replacing the current diesel fleet. That will benefit the environment and improve public transport options for working people, as well as reducing the cost of running the buses, which means that more can be invested into services across our town.

In terms of skills and education, and delivering public services for the future, I very much welcome the continued focus on investing in training and apprenticeships for young people. There is a need to invest in digital and cyber, in health and social care and in advanced engineering and nuclear technology, which are key for my local economy in Warrington but also across the UK. I am pleased that schools such as the university technical college in Warrington are working closely with employers such as Sellafield, Cavendish Nuclear, BAE, Rolls-Royce and the NHS to ensure that young people’s training is preparing them for the workplace of the future. I am also pleased to see the commitment to a new UK global talent network to work with research institutes and businesses to identify and attract the best global talent in key science and tech sectors that are rapidly growing in my constituency and across the north-west.

We have seen significant additional funding to help our public services in the fight against the pandemic, and the vaccine roll-out has been nothing other than phenomenal, with more money going into our booster jabs programme. Looking forward, we are also making investment in the NHS that provides a cash increase of £33.9 billion for 2023-24 and continues with our programme of hospital rebuilds. Warrington has recently submitted an excellent application for one of the eight additional new hospitals being built, and I look forward to a decision on that project being made in early 2022.

I welcome the decision to support small businesses. The temporary 50% cut in their business rates, up to a maximum of £110,000 a year, will make a difference to local businesses on my high street. In addition, the decision to scrap 2022’s planned annual increase in rates for all firms for the second year in a row is very welcome, but I urge my right hon. Friend the Chancellor to look carefully at a complete revision of the business rates system. We are faced with incredible challenges on the high street, and we need to support SMEs as they help the economy recover. We are delivering on a central mission of levelling up for every single person, no matter their background and no matter their circumstances. It is the right Budget at the right time in our economic cycle, and I congratulate the Chancellor on the work he is doing to take this country forward and on levelling up.

[Mr Deputy Speaker (Mr Nigel Evans)]

I just remind everyone that if they take part in today’s debate, they will be expected to be here for the wind-ups.

Liverpool City Council

Debate between Andy Carter and Nigel Evans

Wednesday 24th March 2021 Commons Chamber

[Mr Deputy Speaker (Mr Nigel Evans)]

I would just like to say before I call any other Members that, although a number of individuals are under investigation, I understand that there have been no charges. There is therefore no sub judice involved, but I would caution Members not to compromise any of the ongoing investigations in anything they may or may not say.

[Andy Carter (Warrington South) (Con) [V]]

I thank the Secretary of State for his statement today and welcome the steps he has outlined in relation to Liverpool City Council. I welcome the steps he is taking to preserve the good name of local government, too. I regularly hear from constituents with concerns about the level of commercial activity that councils are now undertaking. Does he agree with me that some of the transactions are incredibly complicated and well beyond what councils would have traditionally been involved in, and that external audit and public scrutiny need to be reviewed and greatly improved to protect taxpayers’ interests?

Covid-19

Debate between Andy Carter and Nigel Evans

Monday 22nd February 2021 Commons Chamber

[Andy Carter (Warrington South) (Con) [V]]

Thank you for bringing me in, Mr Deputy Speaker. It is a pleasure to follow my hon. Friend the Member for Ipswich (Tom Hunt).

I suspect that for most parents listening to the Prime Minister’s announcement earlier, the news that all children will be back in school from 8 March is very welcome—not because we have had too much of the little cherubs appearing midway through Zoom calls, but because the best place for children to be is in school with their friends, socialising and learning. Having listened to my son’s virtual lessons over the past few weeks, I suspect that most teachers will also be delighted to have children back in one place, focused on the lesson and not distracted by whatever else is going on in their bedrooms.

I pay particular tribute to the hugely professional teachers who have adapted to a blended Teams and Zoom world through ever-changing circumstances. The ongoing uncertainty has created significant anxiety for young people, with particular pressure for those due to take exams this year and next. The focus on catch-up and support funding for mental health is now critical, and I request that the Secretary of State for Education allows flexibility in the way that schools deliver those programmes.

It would be remiss of me not to mention the efforts of mums and dads across Warrington who have been home-schooling while also working and doing all the other things that are necessary for life to continue.

I welcome the news that the Chancellor will address support for businesses in the Budget next week. I make one specific request: extend the business rates holiday for eligible small businesses.

Finally, the incredible vaccination programme both here in Warrington and throughout the UK has meant that we can have some certainty around a route out of lockdown. Having visited four of the five vaccination centres in Warrington over the last few weeks—

[Mr Deputy Speaker (Mr Nigel Evans)]

Sorry, Andy. It was short but sweet.