BBC Mid-term Charter Review

Debate between Bernard Jenkin and Justin Madders

Thursday 9th May 2024 Commons Chamber

[Justin Madders (Ellesmere Port and Neston) (Lab)]

It is a pleasure to follow the hon. Member for Stone (Sir William Cash). He made a wide-ranging speech more at times perhaps suited to the History channel than to BBC Parliament, but I am sure the viewing public will have listened to what he said with great interest. He made some important points, and the attendance at this debate does not reflect the high regard in which people hold the BBC and its importance for our nation, which is why this review is of importance.

I was not familiar with the term “BBC sympathiser,” but I suspect that many members of the public would recognise themselves as BBC sympathisers because it does hold a special place in many people’s hearts and is respected around the world. That should not make the BBC immune to criticism, however, and because of the unique way it is funded it is often held to a higher standard than many of its competitors.

It is right that the BBC should respond to public concerns and reflect the way society is changing, otherwise it will find itself consigned to the history books alongside silent movies and video cassettes. The sad reality is that the BBC’s traditional rivals on free-to-air terrestrial TV are already on life support because they cannot compete with online subscription services in terms of quality and they cannot match the ways online services can target adverts and reach people, which were inconceivable not long ago. So the BBC could become the last man standing in terms of wholly British broadcasters.

But the warning signs are there for the BBC too. A recent survey found that 43% of people did not know what the TV licence was for and 66% agreed that the TV licence should be scrapped in 2027. I do not agree with that, but that survey should be ringing alarm bells. It may only be one survey, and I do not know the age breakdown, but I suspect we would find from it that younger people are less likely to see the value of the licence fee. After all, they will have grown up in a world where on-demand subscription services are the norm, so paying for something regardless of whether they watch it may well seem outdated and probably unfair.

But when we look at the hard facts, not just at surveys, that also paints a worrying picture. The number of people not paying the licence fee has doubled in 10 years, and that is despite the threat of large fines for non-payment. If that non-payment rate increases at the same rate over the next few decades, we can all see where that will take us. So we need to ask serious questions about why non-payment rates are growing. Clearly that is in part because people are voting with their feet and their wallets, and that is a challenge for the BBC in its overriding mission, which I will address shortly, but it is also a question of enforcement.

When I ask questions of Ministers about enforcement action, it is clear that none has been taken against anyone over 75 for non-payment. I certainly know of a constituent in that age bracket who has decided for their own reasons not to pay the licence fee and so far has received 23 letters with various degrees of threat within them, but no actual enforcement action has been taken. It seems to me that the BBC has taken the decision not to prosecute over-75s for non-payment. I certainly have no issue with that—we should not be criminalising pensioners—but that does jar with the other stories we hear about seriously ill and vulnerable people being prosecuted for non-payment. It seems that we are ducking the hard decisions that need to be made about how we deal with the licence fee.

[Sir Bernard Jenkin]

Is there not another issue here, which is that the BBC is a successful programme maker and broadcaster, yet it is completely unable to compete with the likes of Amazon Prime and Netflix, because it is not allowed to run subscription services in the same way? Is there not a case for replacing a large proportion of the licence fee income with subscription income for those programmes, albeit that it would still be necessary for the BBC to have some public subvention for its public service broadcasting, which plays such a key role in our national life?

[Justin Madders]

That is where the debate takes us, and that is a debate we need to have. We need to decide as a House and a country whether we think that the current model is sustainable. There is evidence mounting that it is not. Equally, I want to protect the BBC, what is good about it and what I value about it. That means that we have to face these issues. Not many businesses that decide not to charge 10% of their customers will survive for long, and people in a free society should not be criminalised for refusing to pay for a service that they do not use, so something will have to change. Either the BBC will have to change tack, or the Government or this place will have to fill that gap. If a council saw such levels of non-payment for council tax, the Government would be sending inspectors in to ask the council to deal with it. We are in a strange situation where we are ignoring a serious issue.

I note with interest that the annual report on the licence fee produced by the BBC claims that it visited more than 72,000 premises without a licence, but the report mysteriously fails to say what action was taken as a result. While it is difficult to find out precisely how many homes should be paying the licence fee, we can state with confidence that 72,000 visits is in itself a small proportion of the properties not currently paying the licence fee. It is time for an honest debate about our expectations over people paying the licence fee.

The flipside of failures in licence fee collection is whether the BBC is run efficiently as an organisation. It is a cliché—I am sure we will hear plenty this afternoon—that it is a bureaucratic monster stuffed with BBC lifers, but we have to ask whether it is run effectively. I have been told that six different stakeholders from four separate BBC departments attend pitches for new TV series. When an organisation has so many internal stakeholders, we have to question who exactly they are serving. Those tasked with governing the BBC have to ask serious questions of it and of themselves as to whether they are delivering true value for money in that respect.

I will reflect on the subject of governance for a moment. I take the point that the hon. Member for Stone made earlier, but I come to a different conclusion. The debate today will clearly have a large element about the BBC’s impartiality, and I do not think it is constructive for us to trade off instances where the BBC has failed in recent times to get that right. We can all say that it can and must do better. I agree that how internal complaints are resolved needs to be looked at with some independent oversight. However, I will focus on how the BBC reflects the diversity of viewpoints in its broadcasting and decision making.

Broadcast is not just about which political party has its voice heard, but who from those political parties speaks. It seems to me and my constituents that political coverage is massively dominated by voices from London. That same London-centric view is presented through all politics coverage, and frankly it plays into the impression of large swathes of the country that politicians are out of touch and obsessed with the comings and goings in Westminster, far removed from the realities of people’s lives. Fair play to the BBC, it does deign to visit the regions with “Question Time” and “Any Questions?”, although I recall a recent occasion when “Any Questions?” came to Cheshire, but the BBC still had to bus in the Labour spokesperson from London. It proves that you can take the BBC out of London, but you cannot take London out of the BBC. The same applies to programmes broadcast out of Salford, when everyone jumps on the first train back to London after the show finishes.

This is not a BBC for the whole country; it is a BBC that is still shaped by the same privately educated Oxbridge, London and home counties viewpoint that has dominated it since its inception. Every member of the board that I have been able to find schooling details for was privately educated. That means there is a real lack of diversity of thought, and that is reflected in the make-up of the senior echelons of management and editorial staff, raising serious questions about the BBC’s commitment to social mobility. It is no wonder that sometimes my constituents look at the BBC and ask, “Who are they speaking to?”

That does matter, because as figures on non-payment of the licence fee continue to rise, the more that people feel the BBC is talking down to them and does not have a voice in their community, the more likely they are to join the millions who have decided not to pay. If we are not careful, we will soon reach a tipping point where the licence fee model becomes unsustainable. As someone who actually wants the BBC to survive—maybe that makes me a BBC sympathiser—I want this place to look seriously at how we square that circle.

I declare an interest as a licence fee payer, not once but twice—I am sure that many other hon. Members who split their time between here and their constituencies are as well. Even if I were only paying it once, I am sure that I would think it represents far worse value for money than any other TV service that I pay for in terms of pounds per hour watched. On one level, that should not come as a surprise—I pay for the subscription services I do because they have things that I want to watch—but could I honestly say that, were I given a free choice, I would pay the licence fee? I probably would, but more and more constituents are asking that question, and will continue to ask it. It needs a serious, sustainable answer.

I do not think that the BBC can compete with on-demand subscription services in terms of quality or frequency of output. It does some great TV, but it cannot compete with the investment that some of the on-demand services provide.