BBC Charter Renewal

Debate between Ann Davies and John Whittingdale

Tuesday 6th January 2026 Westminster Hall

[Sir John Whittingdale]

I agree that children’s television is incredibly important, and it is a matter of real concern that fewer and fewer commercial channels are investing in children’s TV. It was for that reason that, at the time of the last charter review, we set up something called the young audiences content fund, funded by the licence fee, which allowed other broadcasters to bid for licence fee funding to supply children’s programming. It was very successful. Unfortunately, it did not survive the mid-term review, but it was created in recognition of how important that provision is. I would like to see a revival of the young audiences content fund, because I think it was very valuable.

Every time a Government has looked the licence fee, they have come to the conclusion that it has many flaws but there is no real alternative. The Culture, Media and Sport Committee that I chaired did recommend an alternative; we looked at the possibility of a household levy. While that is not perfect, it has already been ruled out. That too is excluded by the Green Paper, which states of the licence fee that

“we are not considering replacing it with alternative forms of public funding”.

So all those particular options have been closed off. However, the licence fee is highly regressive and hard to enforce. Evidence shows that women on low incomes face prosecution more than other groups. There are a lot of things wrong with the licence fee.

In terms of alternatives, the Green Paper suggests one or two options. It talks about the possibility of extending commercial activity, which I certainly welcome, as it already contributes quite a large amount to the BBC’s income.

[Ann Davies (Caerfyrddin) (PC)]

S4C’s headquarters are within my constituency. It employs 2,500 people across Wales, and contributes £7.6 million to our economy in Caerfyrddin itself—that is without the Welsh perspective. Although I am glad to see that consultation is discussed in the Green Paper, it needs to be more than a tick-box exercise. Does the right hon. Gentleman agree that any consultation must be meaningful for the people of Wales and for S4C?

[Sir John Whittingdale]

I visited the S4C headquarters, and I am a strong supporter of S4C, which is often overlooked in debates about the licence fee. Of course, it is funded by the licence fee, and that is something we sought to preserve when I had responsibility for it. It needs to be taken into account. I was glad to see that the Green Paper talks quite a lot about S4C and, indeed, MG Alba, which supplies Gaelic broadcasting in Scotland.

The issue raised in the Green Paper that is causing most concern to other organisations is the possibility of advertising. Advertising on the BBC would obviously change the nature of the BBC but, as is acknowledged, it would also have a huge impact on all the commercial broadcasters that rely on advertising. If the BBC took advertising, I suspect one of the consequences would be that Channel 4 would immediately go bankrupt, because Channel 4 is still completely dependent on advertising for its income. Although some people doubt it, I do want to see Channel 4 survive. It is not just Channel 4: ITV depends in large part on advertising, as does, of course, the whole commercial radio sector. If advertising were introduced on BBC TV or radio, the impact on the commercial sector would be enormous, and not something that I think the Government would want to see. The Green Paper acknowledges that there would be an impact, but it still suggests it is one option under consideration.

That leaves only one alternative for the future: subscription. The last charter stated that the BBC should trial a subscription service for additional content on iPlayer. That never happened—the BBC was not very keen on it—but it was there. In the longer term, it becomes a more and more realistic option, not only because the alternatives look less and less attractive or acceptable, but because in due course it will become technologically possible. As I have suggested many times, it is not currently realistic to talk about the BBC moving to a subscription model, because a large number of people in this country still rely on digital terrestrial transmission to receive television services. If someone has DTT—Freeview, as it is known—they cannot switch it off. If they cannot switch it off, it cannot be charged for, because people cannot choose not to pay. Until everybody receives their television online—through the internet, rather than through DTT—a subscription model is not a realistic option.