(4 years, 4 months ago)
Commons ChamberTo ask the Secretary of State for Digital, Culture, Media and Sport if he will make a statement on changes to the licence fee exemptions, programming and job losses at the BBC.
First, I congratulate the hon. Member for St Albans (Daisy Cooper) on obtaining this urgent question and demonstrating that persistence pays off.
The BBC has for decades played a vital role in this country’s cultural and civic life, and that has never been more true than during the last few months. During an unprecedented global crisis, it has helped to counter disinformation and share factual information about the coronavirus pandemic, while reinforcing important public health messaging. It has been a constant source of entertainment. It has helped to fundraise for charities through “The Big Night In”, which the Government match funded pound for pound, and it has helped countless families across the UK to educate their children from home through services such as BBC Bitesize.
The BBC has also been a source of comfort to many during this pandemic, and none more so, perhaps, than those elderly citizens who have been forced to shield and stay at home and who are sadly most at risk of experiencing loneliness and isolation as they do so. That is why we welcomed the BBC’s initial decision at the beginning of the lockdown to continue to grant the licence fee concession to the over-75s, and it is why we were deeply disappointed when the BBC board announced earlier this month that it would be ending that concession from 1 August. As a result, four out of five of those previously eligible for a free TV licence will now need to pay. That is a decision for the BBC, but the Government regret the approach that it has taken.
In the 2015 funding settlement—a settlement that was widely considered to be a generous one and which the director-general said was a strong deal for the BBC—we agreed with the BBC that responsibility for the over-75s concession would transfer to it in June 2020. The BBC agreed to have both the policy decision and the funding responsibility. That reform was subject to public discussion and debated extensively during the passage of the Digital Economy Act 2017. During those discussions and the passage of that legislation, Parliament agreed that the future of the over-75 concession and how and when it would be implemented was entirely a matter for the BBC.
The Government’s view is that the BBC should be doing more, given the generous settlement that it received. During the 2015 settlement, we gave the BBC a number of things in return for taking on this responsibility. We closed the iPlayer loophole. We committed to increasing the licence fee in line with inflation, and we reduced a number of other BBC spending commitments. To help with financial planning, we agreed to provide phased transitional funding over two years to gradually introduce the cost to the BBC.
It is now essential that the BBC, having taken the decision to end the concession, gets the implementation of the change right and is not heavy-handed in its approach. While lockdown may be easing, older people across the country still face many challenges and still rely on their TV as much as they did a few weeks ago. The BBC can and should therefore do more to support older people, and it should look urgently at how it can use its substantial licence fee income to support older people and deliver for UK audiences of all ages.
As the national broadcaster, the BBC has a duty to represent all of the nation—both its youngest and oldest citizens, no matter where they live—and I am aware that many people have expressed concerns about cuts to regional programming as well as the BBC’s recent announcement of staffing reductions. Let me be clear that both operational and editorial decisions are a matter for the BBC. It is an independent body and the Government rightly have no say over the day-to-day decisions that it makes on programming, staffing or the administration of the licence fee, but as I have said, including during a recent Adjournment debate, the Government believe that the BBC must represent all of Britain. We set clear targets for news and current affairs and the need to represent all parts of the UK and the charter as part of the BBC’s mission and public purposes. It is for the BBC to meet these and Ofcom to hold it to account on doing so. That means engaging and reporting on local issues across our diverse communities, not just reflecting the views of the metropolitan bubbles of London and Manchester.
While the BBC remains operationally and editorially independent from the Government, we will continue to push it on these issues so that we can ensure that the BBC remains closer to the communities that it serves.
I just say to the Minister that that should have been three minutes, and he has taken five.
The BBC licence fee exists to give the BBC protection from political interference. The BBC should not be making decisions on welfare. That is the role of the Government. Last year, the BBC chairman said that
“the licence fee is at the heart of what we do. It establishes a direct relationship between us and the public and makes absolutely clear that our job is to serve them”—
and yet here we are.
From 1 August, the BBC will fund free licences only for people over 75 who receive pension credit, but two-fifths of people who are entitled to the benefit—about 1.2 million pensioners—are not receiving it. Some do not know how to claim, many struggle to apply and others feel embarrassed about requiring help. Is the BBC really to become a de facto arm of the Department for Work and Pensions?
Let us be absolutely clear about how we have ended up here. It was the Conservative Government who took the decision in 2015 to stop funding for free licences, and it was the Conservative Government who forced responsibility on to the BBC board to make the decision on the future of the concession. The Government should never have asked the BBC to take that on, and the BBC should never have accepted it. Continuing with the licence fee scheme for the over-75s would have cost £745 million—a fifth of the BBC’s budget. To meet that cost without Government funding, the BBC would have had to close all of the following: BBC 2, BBC 4, the BBC News channel, BBC Scotland, Radio 5 live and local radio stations, as well as many other cuts and reductions. As it happens, the means-tested scheme will still cost the BBC about £250 million, and to help meet that cost it has recently announced hundreds of job losses and programming cuts.
The BBC has proved invaluable to the British public during the covid lockdown through its trusted news, entertainment and home schooling resources. Does the Minister agree? Age UK says that it firmly believes it is the Government’s responsibility to look after vulnerable older people, not the BBC’s. Age UK also thinks the Government should take back responsibility for a benefit that was introduced to tackle pensioner poverty. Will he do that? The Conservative Government have been responsible for these secret deals with the BBC that have significantly diminished its ability to serve the British public, so when the licence fee negotiations start in earnest next year, will he commit to a wholly transparent process involving Ofcom?
The decisions taken at the time of the licence fee settlement in 2015 were the result of lengthy negotiations with the BBC, in which it received a number of concessions that it strongly asked for. In return for those, it agreed that it would take on responsibility for the maintenance of the over-75s free TV licence concession. It was up to the BBC how it decided to take that forward. A number of options were suggested and consulted on by the BBC. The Government were disappointed, as I say, that it decided to remove the concession completely. There were a number of other ways it could have addressed it that would have saved the BBC money but would have at least maintained some help for those aged over 75. But, as I said, that was a matter for the BBC. Obviously, we will continue to discuss it with the BBC. In particular, we will be having discussions over the next licence fee settlement in 2022. We will ensure that there is an opportunity for Ofcom, and others, to have an input into that, but that is still some way off. In the meantime, as somebody who was responsible for those negotiations, I believed the licence fee settlement was a good outcome. The BBC made public the fact that it thought it was a good outcome, too.
This crisis has shown that local programming is more important than ever, both for essential information and for closeness of community. Is it not now vital that quality TV and radio at a local level remains at the heart of BBC output, including through programmes such as the 6.30 regional news, “Politics South” and “Inside Out”, in all regions?
I agree with my right hon. Friend. The charter of the BBC makes it plain, as one of the five public purposes, that it is the responsibility of the BBC to reflect, represent and serve the diverse community of the UK’s nations and regions. Ofcom, as he knows, lays down a number of requirements on the BBC and, indeed, on other public service broadcasters, as to how it does that. It is up to the BBC. I have made it clear before, and I do so again today, that I regard the BBC’s news and current affairs reporting of events taking place outside London and in the regions as an absolutely central part of the BBC’s purpose. I very much hope that it will continue to bear that in mind.
I congratulate the hon. Member for St Albans (Daisy Cooper) on securing this urgent question, which goes to the heart of Members’ concerns about cuts to BBC funding, and the breaking of a promise to millions of pensioners and their families. This issue goes back to the charter and licence fee settlement that was made with the Conservative Government in 2015, when the Government made the BBC an offer it could not refuse: “Take on responsibility for paying the licence for the over-75s, or we will slash funding even further and consider removing the licence fee altogether.”
Since then, in this licence period alone, the BBC has lost £800 million in funding, even before bearing the cost of licences for the over -75s. Members may ask why the BBC accepted the settlement. Is it merely a coincidence that the then chair of the BBC Trust, Rona Fairhead, was later elevated to a peerage as the noble Baroness Fairhead, and took the Conservative Whip a short time later?
The Conservatives made a manifesto promise to maintain the licence for the over-75s. They broke it. Instead, they passed responsibility to the BBC, knowing that it would never be able to afford that responsibility. Since then, they have tried to blame the BBC at every turn, for every cut of every service, and for every redundancy. No doubt they will try to blame the BBC when bills start landing on pensioners’ doorsteps in August and September.
The Conservative Government themselves were party to this deal, so does the Minister not accept that the Government should own some of the blame? Can the Minister tell the House, as the hon. Lady asked, why the BBC should be responsible for implementing the Government’s social policy?
Cuts to the BBC, as everyone in this Chamber knows, are not merely about spending; they are about undermining the corporation’s independence. The Conservative Government are, at best, relaxed about reducing the BBC’s budget, because it is the only lever they have to control the BBC’s capacity to ask tough questions on behalf of the British people.
Ministers knew that making the BBC shoulder that responsibility in full would lead to cuts equivalent to the closures of BBC2, BBC4, the news channel, the Scotland channel, Radio 5 live and Sports Extra, and a number of local stations. Indeed, the cuts to BBC news reporting and all the redundancies in local and national news, at a time of national crisis, when the BBC is more valued and essential than ever, are a direct result of the Government’s failure to maintain their election promises.
The Minister will have seen evidence from Age UK, detailing how millions of pensioners have relied on their televisions for company, especially during the pandemic. What advice would he give to a pensioner who will face the heart-breaking choice in the coming months between turning off their TV for good, or forgoing other basics such as food or heating? That is the reality of the Government’s broken promise to 4 million pensioner households.
I remind the hon. Gentleman that at the time of the licence fee settlement in 2015, the Government were still having to put right the mess that they had inherited, due to the financial profligacy of the previous Labour Government. Everybody had to play a part in that, and the BBC was included. It was a tough negotiation. I call tell the hon. Gentleman— I was part of the negotiations—that Baroness Fairhead strongly argued the case for the BBC, and the outcome was satisfactory to the BBC and the Government, as was made clear by the BBC at that time. The manifesto commitment to maintaining the licence fee during the 2015 Parliament was maintained, which is why the exemption is only now being removed in 2020.
Any pensioner on a low income will continue to get a free TV licence if they are in receipt of pension credit. Age UK has rightly drawn attention to the fact that quite a number of pensioners do not receive pension credit, even though they are entitled to do so, and one of the consequences of this move, which the Government would welcome, might be an increase in the take-up of pension credit.
I welcome the Minister to the Dispatch Box. He has always spoken sensitively about this subject and has great experience. He will be aware that the BBC received a generous settlement of about £200 million, whereas the concession for pension credits will cost £250 million, and to keep things as they are would cost £750 million, so we are well aware that the BBC was not fully funded. Returning to regional news, the concerns that I and many Members have is that many of our constituents rely on regional news to deliver locally for them, and 450 out of 3,000 jobs are at risk of being lost. Does the Minister agree that if the BBC wants to win friends in this place, it should look after the regions?
I thank my hon. Friend. He is right about the cost of maintaining free TV licences for all over-75s, which is already approaching £750 million and would go on rising. Any Government—and, indeed, the corporation—were going to have to consider that. On his point about regional programming, as we made clear in the recent debate held by my hon. Friend the Member for Tiverton and Honiton (Neil Parish), it is a matter for the BBC, but regional programming is essential. I am pleased that some of the fears expressed about cuts to regional political and current affairs coverage did not materialise, but I am still concerned at the level of cuts that are taking place, and we will be watching carefully to ensure that the BBC continues to fulfil its obligations on regional coverage.
Tory Ministers’ feigned shock at BBC job cuts and at old people being pursued for TV licence payments is nothing but humbug. Everyone knew that this would be the result of the last charter deal, cooked up by the Government and BBC director-general Tony Hall. The Government demanded that free TV licences for the over-75s—which should be a social provision—be funded by the BBC, and the BBC was unwise enough to knuckle under and accept. The BBC could not afford it, and I warned at the time that it would lead to swingeing BBC job losses and pensioners being pursued through the courts for licence payments—a double whammy of cruelty, especially during covid. Lord Hall is off to another lavishly paid job, but pensioners across the country will have to find the cash to pay for licences they cannot afford, while hundreds of staff at the BBC now face redundancy as a direct result of this dreadful Tory deal. The Government need to take back control of pensioner licence provision. Will they do so?
First, there were a number of options available to the BBC for how to reduce the costs of the over-75s exemption. The BBC chose to abolish it in its entirety, but there were options, including providing it at a later age, reducing it to a proportion of the licence fee or restricting it to households that only contained over-75-year-olds. It has always seemed to me extraordinary that a banker at Goldman Sachs who happens to have his grandmother living in his home can claim a free TV licence. There were a number of options, and I personally regret that the BBC chose to go ahead with the total abolition. The hon. Gentleman talked about hard-up pensioners. Pensioners on low incomes will continue to receive a free TV licence if they are in receipt of pension credit, so those who are most likely to be unable to afford it will not be required to pay.
Last month, senior executives at the BBC took it upon themselves to remove episodes of “Little Britain” and other comedies from its iPlayer platform because of concerns that some characters might now be considered to be offensive. Does my right hon. Friend understand the anger of fans of these programmes that executives at their state broadcaster whose salaries they pay have made this censorious decision and effectively made a value judgment about them for continuing to enjoy those programmes?
That is a matter for the BBC, obviously, but I share my hon. Friend’s surprise that the BBC decided that “Little Britain” was so unacceptable. Certain programmes that were extremely popular in the ’60s, for instance, would now be regarded as wholly unacceptable, which not just the BBC but all of us need to remain sensitive to, but there is a risk that removing certain programming that is still widely enjoyed—it was even suggested to me at one stage that “Fawlty Towers” might be removed because it gave offence to people—is taking political correctness too far.
The announcement of further job cuts at the BBC is yet another blow for public service broadcasting. There are many BBC freelance workers in Vauxhall with jobs on important TV and radio shows. Some of them have had long-term contracts with the BBC for many years, and they are taxpayers and licence fee payers, but they have not benefited from the same support that other taxpayers have rightly received from the Government, simply because of the type of contract they are on. As a result, many are contemplating leaving the media industry altogether, which in my view is a tragic loss of talent and experience. Given the immense challenges these freelancers face, will the Minister make representations to the Chancellor and persuade him to fill the gaps and end the one-size-fits-all approach to withdrawing these schemes?
In the case of the BBC, the majority of its staff are of course paid with public money and therefore were not eligible for furlough, but there are some BBC employees who work for the commercial arm, some of whom were furloughed, and, as the hon. Lady says, there are a number of freelancers. The Government have sought to provide support to freelancers through the self-employment income support scheme, and of course for those who fall outside that there is the availability of universal credit. Nevertheless, I am aware that there are a number of freelance workers, not just for the BBC but across the media, who are finding it difficult, and of course we continue to look to see what help can be given to them.
Does my right hon. Friend agree that the BBC needs to look urgently at how it can use its substantial licence fee income to support older people and to deliver for audiences of all age groups?
I very much agree with my hon. Friend. It is important to bear in mind that although the BBC is under financial pressure like many other organisations, it benefits from the licence fee and other income to the tune of around £5 billion. It is certainly the case that there are ways of achieving efficiencies and savings in the spending of that budget, which would perhaps have meant that some of the more difficult decisions, such as the removal of free licences for the over-75s, could at least have been mitigated.
Research by the Library has revealed that more than 3,000 households in my constituency may lose access to their free TV licence as a result of the Government’s deal with the BBC. The charity Age UK described axing the free TV licence as
“a kick in the teeth for millions of over 75s who have had a torrid time during this crisis.”
What message does the Minister have for pensioners forced to take difficult decisions between their television and other essentials such as food and heating?
I would say to anybody facing that kind of choice that they will almost certainly be entitled to pension credit, and if they are not currently in receipt of it, they should perhaps look to see whether they are eligible to receive it. It is the case that a number of pensioners on low incomes do not currently receive it. One of the consequences of this is that the BBC will write to every single one of the over-75s to inform them that they are potentially still eligible for a free TV licence if they are on pension credit, so this will perhaps be the best marketing tool for pension credit that we have ever seen.
Many of my constituents and people across Lincolnshire are dismayed at the BBC’s decision to scrap free licences for the over-75s. Can my right hon. Friend assure me and my constituents that he has engaged with the BBC and made those concerns very clear on behalf of many of our constituents?
I do not think the BBC will have been in any doubt about the Government’s view. I and the Secretary of State have regular discussions with the chairman and the director-general. I fully recognise that this was a very difficult choice for the BBC—it represented a massive amount of money to maintain free TV licences in their entirety—but, as I said earlier, I think there were other options available that would have made this at least a little less painful for those who now are going to be required to pay the full cost of the TV licence, having previously not had to pay anything at all.
The Government have been completely disingenuous about this issue all along. Let us be honest: the BBC was given no choice but to take on responsibility for TV licences. My hon. Friend the Member for City of Chester (Christian Matheson) is absolutely right: the Government should not be outsourcing their welfare policy or, indeed, their manifesto promises to the BBC. Funding for the BBC’s UK public services is now around 24% less in real terms than if the cost of the licence fee had risen with inflation from 2010, and the BBC is facing £800 million of cuts. Given all that, does the Minister seriously expect that the BBC would be able to keep funding free TV licences for all over-75s? Can he tell us that with a straight face?
I can say to the hon. Gentleman that the BBC asked for a number of concessions—the unfreezing of the licence fee, to which he referred, the closing of the iPlayer loophole and other saving reductions —that resulted in its income increasing. The cost of giving free TV licences to those aged over 75, which was introduced only in 2008, was rising inexorably and would soon be approaching £1 billion. I have to ask all Opposition Members whether, if they believe that the free TV licences should continue, they are committing that a future Labour Government, or even a future Liberal Democrat Government, might one day pay to restore them, at a cost, by then, of well over £1 billion.
May I compliment you on your choice of tie, Mr Speaker? Barrow Raiders will be delighted.
I associate myself with the comments of my colleagues who have raised the prospect of job cuts at regional news services. At a time when local media are struggling, we need trusted local news services, which keep places such as Cumbria informed, provide companionship and hold those in power to account. In a place like Cumbria, any cuts will fall disproportionately on the excellent local teams, because there are so few people there already. Does my right hon. Friend the Minister agree that salami-slicing such organisations will help no one, including the BBC if it wants to meet its public service remit?
I agree with my hon. Friend. I have discussed the proposed reductions with the director for England and the director of nations and regions for the BBC. It is obviously a matter for them, but in my view although the BBC may have to find savings across its budget, that does not mean that every area of expenditure should be reduced. There are areas in which the BBC could save more and there are areas where any cuts would have a damaging effect. I fear that regional coverage is in that latter category, so the BBC should prioritise it. We will continue to make that clear to the BBC.
Almost 3,500 pensioner households in my constituency of Dundee West will be dramatically affected by the loss of TV licences. These are pensioners who receive one of the worst pensions in Europe, are likely to suffer from loneliness and disabilities, and are shielding as a result of covid-19. Surely this pandemic has shown us that television is not a luxury and the UK Government must recognise their public health responsibility to ensure that everyone receives vital information. Will the Minister assure my constituents that the UK Government will reverse the decision and provide the financial support to allow the concession to continue for those who can least afford it?
As I say, the matter was extensively debated during the passage of the Digital Economy Act 2017, and it was Parliament that agreed that the responsibility should be transferred to the BBC, so that is not likely to be reversed. It is a matter for the BBC as to how it goes about this. The Government are disappointed and believe that alternative options were available. I encourage the pensioners in the hon. Gentleman’s constituency to check whether they are entitled to receive pension credit and therefore to maintain a free TV licence. The exemption was introduced only 12 years ago, at an age that was relatively arbitrary at the time; it did not need to be set at that age and that is something else that the BBC might have considered.
My constituents are dismayed at the BBC’s decisions in respect of licences for over-75s and the proposed cuts to local coverage. Does the Minister agree that after having so recently received that “strong deal” in the renegotiation, the BBC ought to have raised this issue before it was three years into the period if it was not intending to continue with the obligations it has set out?
To give the BBC some credit, it did hold quite a lengthy consultation in which it put forward a number of options as to the future of the exemption. In my view, some of those other options were greatly preferable to the one that the BBC finally chose, which was the decision to abolish it in its entirety. I think the BBC could have done more. I am at least assured that the BBC has now said that every person over 75 who currently has a free TV licence will receive a letter: first, to point out that they can still receive one if they are on pension credit, and secondly, to say that no action will be taken in pursuit of the BBC’s requiring a licence until after those letters have been dispatched and received.
Thank you for granting this urgent question today, Mr Speaker. The TV licence and the services provided by the BBC have been a lifeline to many in my constituency of Newport West in recent months. Can the Minister tell me what discussions have taken place with the Welsh Government in recent weeks to ensure that Welsh regional programmes are maintained and my constituents are not penalised by the shabby approach to public broadcasting from this Government?
It is not a devolved matter. However, I did have an extremely good conversation this morning with Rhodri Williams, the new chair of S4C, which of course also benefits from the licence fee.
I know you are a man who likes to Netflix and chill, Mr Speaker, but with the rise of on-demand services such as Amazon Prime and Netflix, is it still right that we are criminalising non-payment of the fee for the BBC?
As my hon. Friend is aware, the issue of decriminalisation has been subject to a lengthy consultation. The Government are now considering the very large number of responses to that consultation and we will bring forward our proposals once we have completed that consideration.
The Minister called on the BBC to do more to support older people, but perhaps he should start by putting his own house in order. More than 1 million of the poorest pensioners missed out on £2.5 billion of pension credit in 2017-18 and now they will not get a free TV licence either. Instead of his crocodile tears about the cuts that the Government have forced on the BBC, will the Minister be asking the BBC to run regular public information announcements at peak times, encouraging people to apply for pension credit?
The hon. Lady raises a good point, in that some of the communications that the BBC had promised to carry out are now going to be impossible due to social distancing, so we will be looking to the BBC to run public information campaigns of that kind. As I said, the BBC is also sending a letter to every single person over 75, telling them what their options are.
I sympathise with my right hon. Friend the Minister, who is being asked to simultaneously ensure that the BBC spends more money on free licences and more money on programmes. Not only is that mathematically incompatible, it is not within his power at all. Does he agree that the real welfare issue is to ensure that poorer pensioners continue to receive the benefits of the BBC, which are important to many of them, and that therefore the practical way to help poorer pensioners is for both the BBC and Members of Parliament to ensure that as many as possible of those who are entitled to pension credit actually claim pension credit?
My right hon. Friend will know from the many times that he has stood here that being asked to do impossible, contradictory things is quite frequent. The point he makes is absolutely right. It is very important that all those people entitled to pension credit should take it up and I believe that one of the consequences of this matter is that that will be achieved.
More than 4,000 households in my constituency of Oldham East and Saddleworth no longer qualify for a free TV licence. That is nearly three out of four over-75-year-olds. There is a theme in the questions. We have already heard that more than 1 million pensioners eligible for pension credit do not claim it. Instead of hand-wringing and saying it is other people’s jobs to do it, what will the Minister do to ensure that those people who are eligible for pension credit receive it?
The Government seek to publicise pension credit availability as widely as possible, but the BBC has now said that it will write a letter to every single pensioner over 75 and I think that will have a greater effect in driving up pension credit than any other measure.
The coronavirus pandemic has meant that many of my constituents in North West Durham, particularly those shielding, many of whom are elderly, have been increasingly reliant on the television over the last few months. This weekend, I joined with my hon. Friend the Member for Stoke-on-Trent North (Jonathan Gullis) in calling on the BBC to look again at this cancellation for the over-75s. Will the Minister join us in that call today?
As I have said, the Government deeply regret the decision that was taken. I hope that the BBC will continue to consider it as we move into the next licence fee settlement. Obviously, discussions will take place around that, and we will look at what other options might be available to try to extend help not just to those aged over 75, but to other people as well, but that ultimately will be a matter for negotiation with the BBC.
The award-winning BBC programme “Inside Out” highlighted the devastating impact of mesh implants, without which this scandal could have gone on undiscovered for much longer. Now “Inside Out” is under threat. Does the Minister understand the link between the BBC’s rising costs and income cuts and the loss of high-quality local BBC journalists?
I share the hon. Lady’s admiration for “Inside Out”, which, as she said, did some extremely hard-hitting investigative programmes, which led to real change. I am encouraged that the BBC is maintaining “Inside Out” and is moving from, I think, three stories per episode to one story per episode over a longer time, so it will be a 30-minute programme. It is good that “Inside Out” will continue, but obviously any reduction in investigative journalism by the BBC is a matter of regret.
Does my right hon. Friend agree that the BBC could have the capacity to make significant savings to its £5 billion of spend a year, and does he agree that greater transparency would go a long way to help identify those savings? A Government Department or a local authority needs to publish every invoice in excess of £500. Is it not wholly unfair and iniquitous that the BBC has simply refused to do that?
I agree with my right hon. Friend. Undoubtedly, there is scope for efficiencies and savings. One thing that the Government have done is fully open up the BBC to scrutiny by the National Audit Office, and I think that that has led to some efficiencies. I am encouraged by the conversation that I had very recently with the incoming new director-general, Tim Davie, who recognises that there is scope to seek efficiency savings and is committed to looking across the whole range of BBC activities to see how that can be achieved.
The Minister rightly recognises the BBC’s amazing covid service. I just want to put on record how invaluable BBC Bitesize has been to my six-year-old daughter and my long-suffering husband who has been home schooling her through the lockdown. Does the Minister recognise that the BBC is part of a much wider ecosystem in which it commissions a lot of independent production companies? We know that the creative sector is really suffering and that many jobs are in jeopardy, and does he recognise, therefore, that this continued pressure on BBC funding will put that wider revival of the creative arts sector, in terms of the independent sector, at risk?
I join the hon. Lady in thanking the BBC for all that it did to maintain educational programming during lockdown. As for the contribution that it makes to the independent production sector, she is also absolutely right. One thing that I have been concentrating on is trying to help the production sector get back into operation, and we have had frequent meetings with representatives to see how that can be achieved. I am delighted that most productions are now getting going again, but obviously maintaining and sustaining our production sector right across the country will remain a very important additional role for the BBC.
Over recent years, I would describe myself as having moved from being a friend of the BBC to being an extremely critical friend of the BBC, and I tend to think that, to some extent, it has lost its way. The director-general has today replied to a letter sent by the Blue Collar Conservatives group, in which he says that
“we will continue to deliver new programmes that represent and reflect modern Britain and the voices of the whole of the UK.”
I suggest to the director-general that the view from Cleethorpes is very different to that. Does the Minister agree that, instead of pandering to these groups and trying to seek new audiences, who perhaps will never remain with the BBC, it should actually provide a better service to its core audience and, again, review the over-75 issue?
I agree with my hon. Friend. In the service that the BBC provides across the UK, in all the different communities, it is absolutely essential that it tries to sustain support for the licence fee and does not just serve the metropolitan elite in London and Manchester. I am very much aware that communities like those in Cleethorpes are beginning to feel that the BBC is not providing sufficiently for them, and I hope the BBC will take that into account.
At the general election in 2019, the Conservative party manifesto stated:
“We recognise the value of free TV licences for over-75s and believe they should be funded by the BBC.”
Only months later, over 4.5 million elderly people learned that they are to lose their free TV licence. The question—many people want to know the answer—is: what did the Government do to try to save the free TV licence scheme? Is it now time to recognise that the free TV licence for over-75s is a public good and should be funded by the Government?
I absolutely stand by the wording of the 2019 manifesto. It remains the case that the Government recognise the value of these licences and believe that the BBC should have maintained them. We made that amply clear to the BBC. Ultimately, however, Parliament agreed that the decision should rest with the BBC.
I represent a heavily rural constituency, and I have been deeply concerned by recent BBC programming that portrays farming and the agriculture sector as either twee and backward or environment-wrecking vandalism. This is deeply wrong and misleading. With over 9,000 people over 75 years old in Brecon and Radnorshire, many feel deeply let down by the BBC at the moment. Does my right hon. Friend agree that the BBC needs to take a look at itself and ensure that it is giving every taxpayer value for money?
I am aware of some of the concerns that my hon. Friend refers to. Obviously it is not a matter for the Government to pass judgment on BBC programming, but it is possible for viewers to make their feelings known by complaining to the BBC and, if they remain unsatisfied, to take the matter to Ofcom.
Age UK has said that many older people on low incomes have told it that if they are to find £150 or more a year to pay for a licence fee, they will have to forgo other essentials or try to survive without a TV at all. Given that TV news is the only source of information for some older people, particularly during the current pandemic, what would the Minister propose as an alternative way of getting this vital information to those who will no longer be able to afford to watch telly?
I very much hope that those on low incomes will take up pension credit and so continue to be able to watch television, but of course there are other means. If people are anxious to obtain information, they can listen to any number of BBC radio channels and do not require to have a TV licence.
While the BBC is a valuable national institution, many in Stoke-on-Trent South are concerned about its archaic funding mechanism. In a world where subscription is becoming the norm, does my right hon. Friend agree that reform and identifying better ways to fund the BBC is well overdue?
I have considerable sympathy with the points that my hon. Friend makes. We are not yet at the point where we could consider moving to a subscription service, because a lot of people still rely on Freeview, which does not allow it. However, the way in which people consume television is changing so fast that it will increasingly lead to questions about the sustainability of the licence fee, and that will certainly be under consideration when we come to the next charter review.
Does the Minister understand that many of my constituents are fed up with the begging-bowl behaviour of the BBC, which seems to think that its pocket has no bottom to it, and increasingly frustrated by the political bias and the reckless spending of this organisation, with its £1 million-and-more contracts for presenters and the fact that it pays over 100 directors more than the Prime Minister? Will he undertake, first, to ensure that no pensioner who cannot afford the compulsory levy will be criminalised as a result of non-payment? In the longer run, will he look at how the BBC is funded so that we do not have this compulsory tax on people who increasingly get their entertainment elsewhere anyway?
I sympathise with the right hon. Gentleman. It was of course as a result of the most recent charter renewal that we now know how many people in the BBC are paid over £150,000 per year and who they are. But there will always be scope for change. If his constituents have complaints about political bias or any other content, I would encourage them to proceed those with the BBC and ultimately Ofcom. I can assure him that when we consider the long-term future, the licence fee will very much be a part of that consideration.
Many of my older constituents will be facing the double blow of being asked to pay more for the BBC while seeing the programmes they value the most and regional news cut back. Is it not time, and should it not be part of the charter review, to ask what licence fee payers want to see? Is it right that regional news programmes should face such a disproportionate burden of cost savings at the BBC?
As I indicated earlier, I am concerned at the extent of the reductions taking place in the regional programming budget. I do not think that savings should be spread equally, and there are other areas where greater savings could have been found. That is something we will continue to discuss with the BBC. I hope that the incoming director-general will also have a look right across the board to see what savings can be made and what areas to prioritise.
During the covid crisis, many people have relied on their local councils for information and support. Local news plays a vital role in both helping share that information and, rightly, holding local councils to account. The cuts of 450 jobs in regional news in England amount to a loss of one in six jobs. What consultation have the Government had with the BBC about the threat to the democratic process arising from these job losses?
I have discussed the implications of reductions with the director for England and the director for nations and regions at the BBC. However, I would draw attention to the BBC’s local democracy reporting service, which it put in place and funds 150 journalists precisely to address the hon. Member’s concern about how local councils in particular should be properly held to account and reported. The BBC has pledged to maintain that, and I hope it will continue to do so.
The licence fee was first introduced in 1946 largely to help fund television after the second world war. At that time, there was one channel and one broadcaster. The world has changed a great deal since then and we see new digital streaming services emerging on an almost daily basis. Following the Minister’s answer to my hon. Friend the Member for Stoke-on-Trent South (Jack Brereton), will he assure the House that there will be a fundamental review of how the BBC is funded in time for its new charter in 2027?
I share my hon. Friend’s view that the landscape is changing so fast and there is a much more choice now available to viewers, and that should cause the BBC to look again at what it provides and consider those areas where public service content is still important and where, perhaps, in other areas it is no longer so necessary. That fundamental issue will be under consideration as part of our forthcoming public service broadcasting review. At the same time, we will also be talking to the BBC in detail, as part of the licence fee negotiations, about the funding it will require in the future.
Many of the assumptions around these negotiations—audiences are shrinking and the young are tempted away by Netflix—are contradicted by coronavirus. On the week that lockdown started, 94% of all Britons used it, as well as 86% of young adults. There have been a billion hits on iPlayer, and there were three million people on Bitesize the day it launched. In all, that makes up 24% of all online time, compared to 3% for Netflix. Does the Minister therefore share my dismay that the current round of cuts is hitting only band B and C journalists—the people producing the output that is keeping us all going—and that none of the management or higher bands are affected? Does he not agree that they should bear some of the burden, too?
Of course, one of the consequences of the lockdown was that viewing figures right across the board for both linear and online programming dramatically increased. However, I absolutely agree with the point the hon. Member makes. It is entirely a matter for the BBC as to where it finds savings, but I do believe that the journalists and reporters are providing an invaluable service in the regions. I certainly hope that the BBC will listen to the point she has made, because I have considerable sympathy with it.
All 61 games in next year’s rugby league world cup will be shown on the BBC—I just hope that rugby league fans from my patch who are over 75 will be able to afford their TV licence. Does my right hon. Friend agree that the BBC should look to continue doing what it does best and stop trying to do everything?
I do agree with my hon. Friend. As I said earlier, with the huge increase in choice, it may well be that there are areas in which it is no longer as important that the BBC provides programming content as it was before that choice extended to the extent that it has. I hope that is something the BBC will consider carefully, and I believe that the director-general, who will shortly be taking up his post, is intending to do that.
In 1968, long before the Minister’s apparent predilection for Netflix, he may well recall that the BBC comprised two TV channels, four radio stations and just a small handful of local radio stations. Fifty years on, the BBC licence fee is at the same level in real terms, despite the great local and national services it provides, which have helped young and old through the recent crisis. As a public and social service at 43p a day, does this not already represent excellent value for money?
It is very difficult to judge whether something is value for money when it is a legal requirement to pay it; people do not have a choice. We generally judge whether something is value for money by whether or not people choose to buy it, but of course that is not possible in the case of the licence fee.
In 2015, the BBC made a commitment to solely fund free TV licences for the over-75s in a deal that Lord Hall described as a “strong” one. The people of Stoke-on-Trent North, Kidsgrove and Talke are rightly angered by its decision not to honour this commitment. Will my right hon. Friend act in haste to decriminalise non-payment of the licence fee and, at the next charter review, commit to scrapping the licence fee altogether?
I do understand the feeling of my hon. Friend’s constituents. On the point he makes about decriminalisation, that is something we are seriously considering. We are currently going through the responses to our consultation on that matter, and we will be announcing the outcome very soon.
Alongside free television licences for the over-75s, which I will keep campaigning on, may I raise how, during lockdown, a number of elderly and vulnerable members of the East Kilbride West church have been tuning in to the BBC’s “Reflections at the Quay”—enabling them to join the service on a Sunday morning, when they would normally have been attending church—which, appallingly, has now been taken off air, leaving them absolutely devastated? Many are still shielding, lonely and now more isolated than ever, and my constituents want this important programme back. I urge the Minister to have a discussion with the BBC about the importance of religious broadcasting in supporting the most vulnerable at this time.
As the hon. Lady knows, religious broadcasting is part of the public service obligations. How the BBC goes about fulfilling those obligations is a matter for it. However, I can fully understand the concerns of her constituents, and I would urge her to take up that matter with the BBC.
I thank the Minister for his statement. I agree with him that the BBC still does a number of things well, particularly with regard to coronavirus. However, with this decision on the over-75s, the cutbacks to regional news and regional current affairs, and the news that £12 million has been paid out of licence fee payers’ money to settle the tax bills of former BBC presenters, does he agree with me and my constituents in Newcastle-under-Lyme that it is far too metropolitan and out of touch with towns across the country such as Newcastle?
I think my hon. Friend will be aware that the auditor was very critical of the decision about the settlement of the tax bills of those employees who operated through public service companies. That is a matter for the BBC, but the National Audit Office is there to audit it. It is a responsibility of the BBC to look at the way in which it spends public money. The licence fee is a privilege and, going with that, it has the responsibility to spend it properly
Before the general election last year, I led a debate in Westminster Hall calling on the Department for Work and Pensions to introduce a new campaign to increase the uptake of pension credits. Work and Pensions Ministers have refused to do that, and in answer to written questions I have tabled, they have refused to increase the campaign to get take-up above 60%. The Minister knows that it is not for the BBC to implement Government welfare plans, so rather than just relying on the BBC writing letters to all over-75s, will the Minister commit to getting the DWP to start such a campaign, including writing to those pensioners who are entitled to the £2.5 billion that remains unclaimed by some of the poorest pensioners across the UK?
I would have thought the hon. Gentleman would have welcomed the fact that the BBC has now said it will write to every pensioner over 75 to say they might still be entitled to receive a free TV licence if they are eligible for pension credit. That seems to fulfil exactly what he has asked for.
I know that “Eastenders” has a place in the hearts of many of our constituents, but not one so well embedded that they were not disappointed to learn that the cost of rebuilding the set went from just under £60 million to almost £90 million—£30 million of licence fee money on one project. Would it not be better for the BBC to focus on saving money and selling worldwide what we pay it to make, rather than on cutting free TV licences for pensioners?
My hon. Friend raises an interesting point about BBC expenditure. One reason the NAO was given total access to the BBC’s books was to identify areas of extravagance or waste, and it did a very good job. He is also right that the BBC makes a considerable income from selling its programmes abroad, and that, too, is something where I hope the BBC will continue to look for opportunities to raise additional income.
In Hull, our local BBC TV and radio is central to our community, as a public service broadcaster at times of crisis such as the flooding in 2007 and covid-19 this year, and by playing an important democratic role in scrutinising those in power locally. Taken with the parallel cutbacks in local newspapers and commercial TV and radio, local and regional BBC cuts are a growing crisis in local news, not least in the places furthest from London. The Minister has already said that this could lead to a more London-centric media. What will he do about that to protect news in places such as Hull?
I sympathise with the hon. Lady, particularly, of course, because commercial media have been under tremendous pressure as a result of the covid crisis and the consequent almost collapse of advertising, which has made the BBC’s contribution all the more important. I welcome the fact that the BBC is maintaining its local radio network and is not going through with some of the reductions in local coverage that were feared, but it needs to do more. I am extremely pleased that it is continuing to support the local democracy reporting service, which ensures that there are still reporters in local council chambers.
It has been some years since many BBC operations moved out of London to Salford Quays. What is my right hon. Friend’s assessment of the value for money of that move and how effective it has been in taking the BBC out into the provinces?
It was absolutely right that the BBC opened up a major production facility in Salford, because there was a perception that it was far too London-centric. There is a risk that it is now seen as far too London and Manchester-centric, so it needs to do more. It is not just a question of value for money; the BBC has a responsibility to make sure it is properly represented in and covers all the regions and nations of the UK.
In terms of public money, how come it is okay for people in the midlands to contribute £1 billion in licence fees and only get back 15% in jobs and production opportunities? Surely the Minister thinks that is completely unacceptable.
In a sense, I simply repeat what I said to my hon. Friend the Member for Beckenham (Bob Stewart): the BBC has a responsibility to be represented in, and to employ its own staff and commission programming from, right across the UK. In that respect, I agree with the hon. Gentleman.
Many of my constituents question why they are forced to pay for an outdated and regressive tax to fund an organisation whose values are becoming increasingly detached from their own. The BBC’s decision to renege on its agreement to fund the licence fee for those aged 75 and over has only served to harden these views. Does my right hon. Friend agree that the time has come to review the very existence of the licence fee?
I share a lot of the criticisms that my hon. Friend makes of the licence fee. It is highly regressive, and there is no means testing or benefit available to anybody under 75. However, in the past it was always felt that, for all its faults, there was no better way of funding the BBC. That may become increasingly questioned, particularly as more and more people obtain their programming online. Undoubtedly, that debate will form part of the next charter review.
Because of huge Government cuts, the BBC has reluctantly had to axe the free TV licence for the over-75s, and make substantial reductions to national news and its much-treasured regional news output. During the heat of the election, the Conservatives extolled the virtues of local news and promised to protect our elderly from isolation by retaining their free TV licences. Will the Minister take this opportunity to apologise to those millions of pensioners and the BBC staff who will lose their jobs as a result of the Government’s broken manifesto pledge?
The Government have always believed very strongly in the independence of the BBC. It is for the BBC to take decisions about its programming content, its employment practices and, indeed, the licence fee. It was not for us to instruct it. However, as I and the Government have repeatedly made clear, we regret the decisions it has taken about over-75s and regional programming.
I share everyone’s disappointment that the BBC has chosen to break the agreement that it came to in 2015, but what worries me above all about this change is that we are talking about people who are very old and frail—people who may be suffering from developing dementia, or may be going into care homes or hospitals. They will be criminalised if they do not pay the licence fee. The Minister has the power to change that, and I urge him to do so.
As my hon. Friend is aware, there are strong feelings about the current criminal enforcement of the licence fee. The Government recognise that, which is why we are holding a consultation. We hope to say more about that soon.
The TV has been a vital lifeline to pensioners during the pandemic, but because of some very cynical Conservative party buck-passing, more than 5,200 households in East Renfrewshire—more than 80% of homes in which someone is over 75—face paying the licence fee. Those pensioners rely on their televisions. The Government clearly have an influence, so will the Minister use it and work with the BBC to reverse this unfortunate and very damaging decision?
There were a number of options available to the BBC, as I said, and it chose to proceed with the complete removal of the concession for over-75s. That is a matter of regret, and of course we will continue to talk to it. As Parliament made clear, the responsibility lies with the BBC.
The BBC’s role in delivering regional and local news is more critical today than ever, particularly given the pressure faced by advertising-funded media organisations, some of which have seen their income fall by more than 80%. That is in sharp contrast with the BBC’s guaranteed funding of more than £5 billion-worth of licence fee. Does my right hon. Friend agree that Ofcom, as the UK’s media regulator, should review the proposed changes to the BBC’s regional current affairs content to ensure that the public service broadcaster is delivering its licence obligations?
My hon. Friend has done a lot of work in this area through the all-party parliamentary media group, and he and I have already discussed the huge pressure on commercial media as a result of the covid crisis. He is absolutely right that the BBC’s obligation to provide programming in the regions is laid down by Ofcom, which will assess whether it is properly carrying that out.
Will the Minister confirm that real-terms public funding for the BBC has dropped by 30% since 2010, as the Voice of the Listener & Viewer, the UK’s leading audience charity, found?
It was the case that licence fee was frozen for a period of time, but the licence fee settlement, which was agreed in 2015, allowed it to rise again in line with inflation. Since then, the BBC’s income has been maintained in real terms. As with every other institution, in 2010 very difficult decisions had to be taken because of the mess that the economy was in.
Does my right hon. Friend agree that BBC reporting should be completely impartial, independent and free of bias, so that it can remain a trusted news source?
I very much agree with my hon. Friend on that. The BBC’s obligation to be objective and impartial is absolutely at the core of its public purpose—it is written into its public purposes. There are doubts on this, and I draw her attention to a good article in The Sunday Times by Roger Mosey, the former head of BBC news gathering, in which he echoed a lot of the concerns she is expressing.
May I remind the Minister that the BBC has chosen the option that he put forward as a Back Bencher on 11 June 2019, at columns 552-53 of Hansard, when he pointed out that the cost of the concession was rising to £1 billion and that the BBC would probably have to do what it is now proposing?
The House has discussed the best way of dealing with the problem. My version of the way forward is to say that the value of the licence fee should be taken into account in the tax allowance so that pensioners who do not pay tax get the full benefit, those on the standard rate get some benefit and those on the higher rate get much less benefit. I hope he will agree on that, but will he please look at it?
I do remember my comments, and I never suggested that the BBC would not be faced with a very difficult decision, because the cost of maintaining the exemption is huge and would go on rising. My hon. Friend makes an interesting suggestion. We are coming up to a licence fee settlement in which we will be looking at all these questions, and I am certainly happy to consider the point he has made.
Locking up the over-75s is a remote but still shocking possibility of the BBC move, as Lord Hall told the Select Committee on Digital, Culture, Media and Sport recently. Ahead of any potential decriminalisation, will the Minister assure the House that he will speak to the BBC in the strongest possible terms to ensure that there is no possibility of its aggressively prosecuting non-payment in a way that could lead to pensioners finding themselves in prison, where, ironically, they would receive a free TV licence? Will he take the opportunity of the mid-point of the charter to undertake a root and branch review of the future of funding and what we require from public service broadcasting?
As my hon. Friend knows well, the number of people going to prison has fallen to a tiny number, but it is still debatable whether that should happen at all. I hope the BBC will be very flexible in its implementation of its new policy and will take account of the needs of pensioners when it comes to enforcement. On the future of public service broadcasting and the licence fee, I absolutely can give him the assurance he seeks.
In order to allow the safe exit of hon. Members participating in this item of business and the safe arrival of those participating in the next, I am suspending the House for three minutes.
(4 years, 5 months ago)
Commons ChamberI congratulate my hon. Friend the Member for Tiverton and Honiton (Neil Parish) on holding this important debate. It is certainly one of the best attended Adjournment debates that I have been present at, as well as one of the longest, but perhaps more important is the fact that there have been a large number of excellent contributions and a large degree of agreement across the House on the importance of the BBC’s regional politics and current affairs coverage. I welcome the hon. Member for City of Chester (Christian Matheson), who has been in his place throughout the entire debate. I am delighted to see him in his new role as Opposition spokesman.
I will also take this opportunity to congratulate Tim Davie on his appointment as director-general, and to pay tribute to Lord Hall, who has served as director-general for seven years. He took over the position in challenging times, and I think it fair to say that they have remained fairly challenging throughout his time, but he has done an excellent job in bringing leadership to the BBC. I certainly enjoyed working with him during our debates on the renewal of the BBC’s charter.
As my hon. Friend the Member for Warrington South (Andy Carter) said, the BBC has also played an extremely important role in the course of the past few months during this crisis. It has provided important factual information and reinforced the Government’s messaging. It has also provided great entertainment, and it has done a great job in providing programming for children unable to attend classes in schools through BBC Bitesize.
I want to start by saying that I am a strong supporter of the BBC and I also believe very strongly in the independence of the BBC. It is not for the Government to instruct the BBC how to fulfil the objectives that it is set in the charter. The Government have three roles when it comes to the BBC. It is to draw up the charter, which sets out the purposes of the BBC. However, the way in which the BBC meets those is a matter for the BBC under the scrutiny of Ofcom. The Government also have a role in the appointment of the chair of the BBC and some Members of the board and, thirdly, in the setting of the licence fee.
Does my right hon. Friend agree that this is a test for Ofcom? This is the first time that Ofcom, in its role as a regulator of the BBC, will be able to look at what the BBC is doing in terms of its regional content. It will allow the Ofcom members to take a decision and a view on how the BBC will set those out going forward. This is quite an important time for the regulator to step forward and look at what the BBC is doing.
My hon. Friend is right in that it has only been since the new charter was put in place that Ofcom has had the role as an external scrutineer of the BBC, and it is the role of Ofcom to ensure that the BBC is meeting its purposes. He quoted in his own remarks one of those purposes from the charter and I want to come back to that, because he is absolutely right that providing regional coverage is one of the purposes that the BBC is required to fulfil. Having made it clear in my remarks that I do not intend to instruct the BBC, because I think it is completely wrong for the Government to attempt to do so, nevertheless, I entirely understand the concern that has been expressed by hon. Gentlemen from across the House about the BBC’s decision to cancel the autumn series of “Inside Out”.
What tonight’s debate has shown is that, across the House, there is united support for keeping regional programmes and for making them even more local than they are now. We need to get that message across loud and clear. I understand that it not the Government’s perspective to dictate to the BBC, but it is also right that we send from this House a clear message that the BBC should maintain regional programmes and enhance them.
I agree with my hon. Friend, which is why I am grateful to him for having applied for and obtained this debate, because I have absolutely no doubt that the BBC will be watching it and that it will take account of the strength of feeling that has been expressed from all parts of this House. I am talking not just about the current affairs programmes, but also about the “Sunday Politics” show. As the hon. Member for Blaydon (Liz Twist) pointed out, it was only last week that more than 100 of the industry’s most well-known figures, including Sir Lenny Henry, Stephen Fry, Fern Britton and Ken Loach, signed a public letter to the BBC to express their concerns over the future of these programmes and the impact that their withdrawal would have on the communities that they serve. These are programmes that have brought us first-class investigative journalism, and they are at the very core of public service broadcasting. One of the signatories of the letter was Samira Ahmed, who many of us will know having been subjected to questioning by her on the “Today” programme. She wrote:
“I was proud to be part of an Inside Out investigation for BBC Leeds that dared to tackle difficult issues around race and exploitation in the Rotherham Grooming Scandal. Now more than ever we need honest, fearless journalism that is rooted in the long-term expertise and professionalism of BBC journalists who know their local communities.”
I agree with the hon. Member for Warwick and Leamington (Matt Western) that the BBC is one of the most recognised and trusted brands across the world and that it produces some of the best TV and radio across the globe. As the Prime Minister put it, it is an institution to be cherished. Whether it is the recent drama on the Salisbury poisonings or the documentary following the work of the north-east ambulance service, the BBC lies at the heart of our public service broadcasting system, producing world-class content that serves to stimulate our interest, broaden our understanding, and help us to engage with the world around us.
That understanding of the world, and the BBC’s role as our national broadcaster, has never been more important. As we emerge from the crisis caused by coronavirus, we find ourselves at a time of increasing mistrust and facing an almost daily battle against misinformation. In that world, where “fake news” has had to be added to the dictionary, it is vital that the BBC upholds the values and standards we have all come to expect. The public should be able to turn to the BBC for transparent, impartial, reliable news and current affairs.
That applies just as much, if not perhaps even more strongly, in regional and local coverage, which is the focus of this debate. In the past few months, UK audiences have been turning back to television news. In the last week of March, 79% of UK adults watched the BBC network and regional news on television—up 20% on the previous month. Since the outbreak of coronavirus, the 6.30 pm regional news programme on the BBC has often been the most watched programme on television on any given day.
BBC local radio has also played a very important role. For instance, the BBC local radio “Make a Difference” campaign, which allowed a number of people to call to ask for help, support or advice and reassurance, received over 1 million calls.
Given the statistics that the right hon. Gentleman has outlined about the success of this output, what does it say about the BBC’s priorities that it would even consider getting rid of these incredibly popular local programmes that are of such importance to people, at a time when it continues to make the other decisions that it does about the kind of output it has?
I fully understand why the hon. Gentleman regards that as a mistake by the BBC, and it is one that I personally would agree with him about. I will go on to set out why I think it is right that we ask the BBC to think again.
As my hon. Friend the hon. Member for Warrington South said, the royal charter sets out the public purposes of the BBC. One of these is:
“To reflect, represent and serve the diverse communities of all of the United Kingdom’s nations and regions”.
It goes on to say that the BBC
“should offer a range and depth of analysis…so that all audiences can engage fully with major local, regional, national, United Kingdom and global issues”.
Regional news and current affairs programmes are at the very heart of this particular public purpose. First, they fulfil a vital role in providing local content, which helps to sustain local democracy. A number of Members have made the point that that is becoming particularly important as we look at devolving more power to regions and local communities. It is essential that that takes place and that, at the same time, people who are holding that power are held properly to account. We all know that many of the issues affecting Plymouth will be completely different from those that impact on Hull, Devon or Coventry. It is important that all those different issues are aired properly and that politics does not seem to be only about Westminster—or, even, the London bubble.
People also want to know that they are heard, especially those from ethnic minority backgrounds and in diverse communities across the UK. They need to know that the issues that matter to them matter to us all, and they need the opportunity to engage in balanced debates and participate in the conversations that shape their daily lives. It is only through broadcasting those kinds of stories and conversations through regional TV or local radio that we can build the true picture of British life.
The second area of vital importance for local news and current affairs programmes, which has been referred to by several hon. Members, is the extremely important role they play in forming the next generation of skilled journalists. Without that training ground, some of the best known names in broadcasting today would not have had a start.
I will say a few words about each of the different areas of regional programming that the debate has covered. First, on the regional political coverage, the weekly regional political show plays a vital role in highlighting issues that may be of huge local importance but will probably never make it on to the national news. As my hon. Friend the Member for Beckenham (Bob Stewart), who is no longer in his place, pointed out, those shows are often the only opportunity that Members of Parliament have to go on television to talk about the issues that affect them and their constituents. In my region, the “Politics East” programme, with which my hon. Friend the Member for Ipswich (Tom Hunt) and the hon. Member for Luton South (Rachel Hopkins) will be familiar—as, of course, will you, Madam Deputy Speaker—does an extremely good job in covering political developments in the region, as well as the debates that we have here on issues that are relevant to the region. If a Member from a particular region obtains an Adjournment debate on an issue that is of extreme importance to his or her constituents, we can look to the BBC’s regional political show to at least give it some coverage.
The idea that a single politics England show could somehow substitute is wholly unrealistic, as the hon. Member for Chesterfield (Mr Perkins) pointed out. The population of the east of England—from which you, Madam Deputy Speaker, and I come—is over 6 million. That is more than the population of Scotland, yet Scotland is served by its own channel, BBC Scotland, which was launched in February 2019, and includes a huge amount of coverage of Scottish issues. That is not in any way wrong—it is as much a part of the BBC’s public purpose to provide that programming as it is for any other part—but it does seem to illustrate why it is mistaken for the BBC to provide that amount of coverage of the Scottish nation while diminishing, and almost removing, the equivalent coverage that takes place of the 11 regions of England.
I turn to the current affairs programme that the BBC provides, “Inside Out”. As has been pointed out by a several hon. Members, “Inside Out” has carried out a number of in-depth investigations of huge importance, many of which went on to become national stories, but probably would not have done so had it not been for the initial investigative journalism done by “Inside Out”. The example of the working practices of Sports Direct has already been mentioned; Samira Ahmed drew attention to the Rotherham child grooming case; and there was a recent programme about the impact of smart motorways. All are hugely important stories that, one has to suspect, would not have ever been revealed had it not been for the work of the journalists on “Inside Out”.
At a time when powers are being devolved to a more local level, it is all the more important that the scrutiny that a programme such as “Inside Out” provides is carried out. That is particularly reinforced given what is happening to other local media, as several hon. Members have mentioned. It is the case that both local newspapers and local radio are under tremendous threat. Sadly, we have seen a number of local newspapers shedding journalists or, in some cases, even going out of business, and that has made the BBC’s task of scrutinising and holding local institutions to account all the more important.
Local news production shows the BBC’s unique value compared with strong national and international competitors. The choice available to viewers is growing, with new entrants such as Netflix, Amazon, Apple and Disney. That makes it all the more important that the BBC focuses on the role of providing public service broadcasting, which will not be provided by those commercially oriented, market-driven companies. My right hon. Friend the Member for Forest of Dean (Mr Harper) questioned the future of the licence fee and rightly said that one of the principal justifications for the licence fee is that it funds a broadcaster which provides programming that otherwise would not exist. That has always been at the heart of the purpose of the public service broadcasting landscape, and particularly the BBC.
The BBC is uniquely privileged in that it receives public funding. It has been protected against the hurricane that has hit the rest of commercial media as a result of the loss of advertising during the covid crisis. The BBC has a protected income, and in that climate, it is all the more important that it continues to provide public service broadcasting. My view, and the general tone of this whole debate, is that regional political and current affairs coverage is at the heart of public service broadcasting.
As I say, it is not for me to tell the BBC how it should deliver the public purposes or use the money given to it through the licence fee, but I believe that regional news and current affairs are of great importance, because they are vital for our democracy, they help to train future journalists and they help the BBC and other public service broadcasters to remain relevant in this changing media landscape. I am confident that the BBC will have been watching this debate, and I hope that it will take account of the feelings and views expressed by all Members and decide to continue—indeed, strengthen—its regional political and current affairs coverage.
Question put and agreed to.
(4 years, 5 months ago)
Commons ChamberThe Government are concerned about online fraud and are very much aware that criminals and fraudsters are attempting to exploit the concern around covid-19. My officials have been working closely with the Home Office, as well as with the National Cyber Security Centre and the National Crime Agency, throughout the covid-19 outbreak. We have published official Government advice to help the public to stay safe and secure online, and we launched the new Cyber Aware campaign in April, offering the public online security advice.
Pre-covid, local councillors in Tettenhall Regis in Wolverhampton launched online and social media training for over-65s. What is my right hon. Friend going to do to upskill those with little or no online skills?
I am happy to join my hon. Friend in congratulating the councillors in Tettenhall Regis on that initiative. It is absolutely right that during this crisis, more and more people have been carrying out tasks such as shopping, banking and keeping in touch online. We are very much aware that it has now become all the more essential to tackle the digital divide that already existed. The Government are funding the future digital inclusion programme to give people the skills that they need to participate in this increasingly digital world. Since 2014, the programme has supported more than 1.4 million adult learners to develop their basic skills. We have also delivered a £400,000 digital inclusion innovation fund, which is designed to tackle digital exclusion among older and disabled people.
When the Public Accounts Committee last looked at online fraud, we raised serious concerns about what happens when fraud is reported and the inaction on most of the cases that are reported. The Minister has given us some warm words, but in the middle of a pandemic, with a lot of communication from Government to the people, how will he make sure that the key players, such as the banks, are sharing real-time information with each other and making sure that we catch the scammers before they raid our constituents’ bank accounts?
The hon. Lady is absolutely right that online fraud is an increasing problem and there needs to be much more co-ordinated action to tackle it. However, a great deal has been done. A persistent stream of coronavirus frauds has been reported to Action Fraud—2,057 have been reported in the past few months, making up around 3% of all fraud reports. The National Cyber Security Centre has launched a major campaign called Cyber Aware to provide practical advice to the public, and has also launched a groundbreaking suspicious-email-reporting service, which allows members of the public to forward any suspicious emails to Cyber Aware to be analysed, and if they are found to be fraudulent, the harmful sites will be taken down—
Order. I have the greatest respect for the Minister, but he cannot take all this time reading the full- length answers. I am sure his officials can shorten the briefing papers.
(4 years, 7 months ago)
Commons ChamberThe Government recognise the vital role that local and regional newspapers play in the provision of reliable, high-quality information during this time. We have already put in place an unprecedented financial package to provide support to all businesses and have taken a number of steps to provide specific support to news publishers. We are continuing to work closely with publishers to fully understand the specific challenges that they are facing with the supply chain and the fall in advertising revenues and options for addressing these.
The Government have agreed an advertising deal with the News Media Association, which has been presented to the wealthiest publishers, but have so far overlooked independents. Does the Secretary of State agree that independent publishers such as the Bedford Independent are providing a vital service to communities across the UK, and will he meet with the independent sector representative body, the ICNN, to agree an advertising deal for the local independent press?
I agree with the hon. Gentleman that the independent community news sector is very important and plays an essential role in continuing to provide public information alongside the NMA members in the regional and local press. The agreement that we have reached for advertising will cover 600 national, regional and local titles, which reach something like 49 million people, but I am in touch with the ICNN and we are looking to see what other measures could be put in place to support it and to see whether it could benefit from the Government’s own advertising package.
In Somerset, we are fortunate to have some excellent community radio stations, but, across the country, such stations are in need of financial support at this time. What more can the Government do to make sure that community radio stations are not forced to close because of coronavirus?
I thank my hon. Friend for his question. I very much agree with him that community radio play an essential part in the media landscape, and I am very conscious of the pressures that many community radio stations are currently under. We are looking at ways in which we can support them, perhaps through the use of a community radio fund. That is something that I hope we can say more about very shortly. I am determined to give whatever help is possible to support community radio as well as commercial radio.
We now come to the statement on the economy. I will call the Chancellor of the Exchequer to make a statement for up to 10 minutes. We will run this for one hour.
(5 years ago)
Commons ChamberMay I congratulate my right hon. Friend on persuading the mobile operators to do what they resisted and told us was completely impossible for them to do? When she comes to address the final 5%—the notspots—will she ensure that lessons are learned from the previous attempt, which was the mobile infrastructure project? Unfortunately, that was able to deliver only a fraction of the number of miles promised, given the numerous obstacles that it ran into.
I thank my right hon. Friend. As a former Secretary of State for Culture, Media and Sport, he will understand the significant challenges that there have been to bring everyone together to work on this. He is right to point out that there will always be a final 5%, but there are other proposals such as the roll-out of broadband, all of which have to be taken in the round. We are talking about 4G today, but there are also the 5G proposals and broadband. We know that this is a challenge and that it is in the most rural areas that connectivity is most important.
(5 years, 5 months ago)
Commons ChamberI thank the hon. Lady for her remarks. As she knows, I have spoken to the shadow Secretary of State about this issue—I accept that he cannot be here today and I am grateful to her for stepping in.
The hon. Lady raised a number of issues, starting with when I discovered the error. The answer to that is Friday last week, and my hon. Friend the Minister for Digital and the Creative Industries found out a couple of days before that. As the House would expect, we have spent the intervening time seeking to confirm that there is no alternative way of doing what I have described. We do not believe there is, hence the course of actions that I have set out to the House.
The hon. Lady rightly asked about personal data and privacy, which is an area of concern. As she knows, it was discussed during the passage of the Digital Economy Act 2017 and subsequently. I do not believe that it is impossible to reconcile the important requirement that people’s data and privacy are protected with the equally important requirement that children are protected from material they should not see. It is perfectly feasible to do those two things in parallel, which is what we seek through our approach. As she knows, the British Board of Film Classification, which will be the regulator for this, has taken steps to ensure that beyond the requirement on all relevant companies under the general data protection regulation parameters, an additional scheme will be available to those who wish to take advantage of it. That scheme will set out a higher gold standard for privacy, which we believe should be publicised to those who may wish to use these services.
The hon. Lady mentioned sanctions, but she will recognise that the issue under discussion is not sanctions for a breach of the requirements, but notification of them to the European Union. It is important to understand changes in technology and the additional challenges they throw up, and she is right to say that the so-called “D over H” changes will present additional challenges. We are working through those now and speaking to the browsers, which is where we must focus our attention. As the hon. Lady rightly says, the use of these protocols will make it more difficult, if not impossible, for ISPs to do what we ask, but it is possible for browsers to do that. We are therefore talking to browsers about how that might practically be done, and the Minister and I will continue those conversations to ensure that these provisions can continue to be effective.
Is my right hon. and learned Friend aware that this is not the first time that a DCMS measure has had to be reintroduced because of a failure to notify the EU Commission? I hope that that problem will soon be removed, but while it exists, will he use this extra time to ensure that we get the measure right? There are still concerns on the grounds of freedom of speech and privacy, and about the ease with which measures can be circumvented through the use of virtual private networks. Will he raise similar concerns with the Information Commissioner to ensure that the age appropriate design code is right? It is much more important that it is properly designed than that it is rushed into place.
I suspect that my right hon. Friend knows from experience that this is not the first time that such a thing has happened, but I am doing my level best to ensure it is the last. It is important that we have new mechanisms to ensure that such oversights are not repeated, and that is exactly what I am doing at the moment. He is correct that we should use the time we now have to get this right and to work through some of the additional challenges that I described a moment ago—we will do that. It is important that we understand these technological changes and, if I may say so, that validates our approach in the online harms White Paper, which was not to be prescriptive about technology, but to ensure that we adapt our systems as technology moves. We will seek to do the same on this point.
My right hon. Friend mentioned the age appropriate design code which, as he rightly says, is produced by the Information Commissioner, not the Government. He is right that it is important that we do not to rush this and that the Information Commissioner takes full account of the responses to the consultation. Having spoken to the Information Commissioner, I know that she will take full account of all the comments before taking the matter any further.
(5 years, 5 months ago)
Commons ChamberThe hon. Gentleman says that we should ask Conservative party leadership contenders whether they will bring this obligation back to the taxpayer. I hope that he will ask the same question of Opposition Front Benchers, and not just that question but the follow-up question: if they intend to do that, where will they find the money to pay for it? Will they cut elsewhere? Will they borrow more? That follow-up question must be asked of all those who argue that we should reverse course on what Parliament voted for in 2017.
The hon. Gentleman says that the Government knew what they were doing when this arrangement was made in 2015. I suggest that the BBC also knew what it was doing. It is important to remember what the BBC said at the time. Let met quote what the director-general of the BBC said on the “Today” programme after the deal was done in 2015:
“The Government’s decision here to put the cost of the over-75s on us has been more than matched by the deal coming back for the BBC.”
That is what he said. If we all enter these deals with our eyes open—we all should—we should all be responsible for the decisions we take.
May I respectfully say to my right hon. and learned Friend that when the decision was taken it was understood that this would be a possible outcome, not least because to maintain the existing concession would cost the BBC nearly £1 billion by the end of the charter period, which would mean either huge programme cuts or increasing the licence fee for the under-75s to nearly £200? Does he accept that restricting the concession to those over-75s on pension credit will provide help to elderly people on low incomes, and if it is publicised properly, it should actually significantly increase the take-up of pension credit?
Yes. My right hon. Friend’s last point is an important one. As I said earlier, it is important that we raise the take-up of pension credit. There are tens of thousands, if not hundreds of thousands, of older people in our society who are entitled to help they are not currently receiving. If the BBC can assist in that process, by getting the message across that they are entitled to that help and that they will be able to claim it, that would be a good thing. I entirely respect his experience in the process that has led up to this point. As I said earlier, I accept that there are hon. Members who feel passionately that the decision taken in 2017 was the wrong one. I understand that that is their view, but it was the decision taken, and as a result, this is a BBC decision to make.
(5 years, 6 months ago)
Commons ChamberWhat a great campaigner Jack Jones was. I thank my hon. Friend for raising his contribution. His legacy is the National Pensioners Convention, which is solidly against these proposals. I am sure we will talk about it later in the debate.
That is why the Government’s refusal to honour their manifesto pledge and save free TV licences is so cruel. My co-signatories on this motion show the degree of cross-party consensus on this matter. We are calling on the Government to rethink and change course urgently. The threat to TV licences is part and parcel of the Conservative austerity agenda, which has weakened our social fabric and impacted the most vulnerable in our communities. Our social contract, whereby people who work hard all their lives are afforded comfort in old age, is being slowly but certainly unpicked. Free TV licences are a small but important part of that social contract. Taking them away will force older people into poverty and leave many more feeling isolated and alone. Rather than standing by their manifesto promise and standing up for dignity and comfort in old age, the Government are taking it away.
Now a little history. As my right hon. Friend the Member for Delyn (David Hanson) said, the TV licence concession for over-75s was introduced just over 20 years ago by the Labour Government as part of a robust package of reforms to support our pensioners and boost their quality of life. The universal benefit was a result of a long campaign to show our oldest pensioners society’s appreciation. Some 4.5 million people over the age of 75 continue to benefit from free TV licences today. Although Labour did not commit explicitly in our last manifesto to continue that policy, our commitment was of course implicit. In case there is any misunderstanding among Ministers, let me be clear. If the Government fall before the natural end of the Parliament in 2022, Labour will honour the Conservative party manifesto pledge to protect TV licences until then.
Despite their manifesto promise of 2017, the Government had already set the stage for the concession to be cut, as my hon. Friend the Member for Coventry South (Mr Cunningham) said. In 2015, they outsourced the responsibility for the TV licence concession on to the BBC as part of the charter renewal process.
I am interested that the hon. Gentleman is saying that a Labour Government coming to power before 2020 would restore the TV licence. Is he saying that a future Labour Government after 2020 will maintain the free TV licence for over-75s at a cost that, next year, will already have reached £745 million?
My answer to the right hon. Gentleman is a complicated one. We are committed to 2022. I do not write or decide our manifesto. He knows I cannot do that. Our commitment to pensioners and protecting their benefits will be very clear. It is highly likely that we will be supporting pensioners after 2022, but I cannot give that commitment today. I will certainly make sure we do not outsource welfare policy to a public broadcaster.
The Government’s outsourcing means that, as of 2020, the BBC will be fully responsible for deciding who gets a free TV licence, and for funding that concession. It is manifestly unfair. Labour opposed that at the time, and our position has not changed—first, because passing responsibility for free TV licences to the BBC is outsourcing an important social policy. The BBC makes some of the best TV content in the world, but it is not a political body—it is not an arm of the Department for Work and Pensions—and nor should it be. It is not elected, and nor should it be.
Secondly, we opposed the move because the Government deliberately saddled our national broadcaster with a cost that could lead to many skilled job losses.
I am grateful for the opportunity to speak in this debate. As the Minister pointed out, I was the Secretary of State at the time when the licence fee settlement was agreed with the BBC, so I would like to set out some of the reasons why those decisions were reached.
As the Opposition spokesman said, the concessionary TV licence for over-75s is not a fundamental pillar of the welfare state—it was actually introduced by the previous Labour Government. It was introduced to address an anomaly that elderly people living in sheltered housing did not have to pay the full licence fee whereas others did. However, the Labour Government did not introduce free TV licences for all pensioners, on the basis that it was far too expensive to do so—they restricted it to those aged over 75 at a cost, at that time, of £365 million. It is important to realise that that money was not removed from the BBC—it was given to the BBC by the Department for Work and Pensions. It has always been the case, since then, that the cost of exemption from the TV licence is met out of the Government’s budget. The cost to the Government of doing so has risen steadily, so that by last year it had already reached £660 million.
I had the task of negotiating both the new BBC charter and the licence fee settlement. Personally, I would have much preferred that the licence fee had been included within the charter negotiations, since the licence fee settlement, to some extent, pre-empted decisions that we took as a result of the charter review process. However, as the Minister rightly pointed out, we were in very difficult financial circumstances thanks to the profligacy of the previous Labour Government, and we had to take a lot of very difficult decisions. The then Chancellor was clear that we should seek to achieve savings from the BBC, as a publicly owned institution funded by the Government, in the same way that all other public institutions were being asked to find savings. So we agreed with the BBC that it would take over the cost of funding the licence fee concession. However, we were also clear that we had given a pledge that the concession would be maintained until 2020, and therefore the agreement with the BBC was that it would take it over in 2020.
I have to say to the House that the negotiations with the BBC over that were indeed robust. I remember sitting down with the then Prime Minister, David Cameron, with George Osborne and with Lord Hall, the director-general of the BBC, and we had some good discussions in which Lord Hall argued forcibly that this would have a detrimental impact on the BBC. Therefore, in recognition of that, we also included, as part of the licence fee settlement, agreement to address some of the things the BBC raised as its principal concerns. One was the freeze in the licence fee. The licence fee had not gone up at all for a number of years, and therefore the BBC was looking at a real-terms reduction every year. We agreed that the licence fee should be unfrozen. Secondly, a growing number of people were avoiding paying the licence fee by watching the BBC on catch-up, through the iPlayer. Under the law as it then stood, if someone watched the BBC a mere two minutes after the live transmission, they did not have to pay the licence fee. The licence fee was therefore extended to close what was called the iPlayer loophole.
Does my right hon. Friend agree with the director-general of the BBC, Lord Hall, that the funding arrangements put in place with the BBC by my right hon. Friend and the previous Prime Minister, David Cameron, represented a fair deal?
I am extremely grateful to my hon. Friend, because he allows me to quote the director-general. As I say, our negotiations were robust, but we emerged from them with the director-general issuing a public statement saying that it was
“the right deal… in difficult economic circumstances”.
He went on to say:
“Far from being a cut, the way this financial settlement is shaped gives us, effectively, flat licence fee income across the first five years of the next charter.”
I do not know whether my right hon. Friend will mention this part of the licence fee deal, but it is worth making the point that the last Labour Government imposed on the licence fee a levy to fund broadband roll-out, and because of the success of the broadband roll-out under our Government, we removed that levy from the BBC. While there was a stick with free TV licences, there were carrots with the removal of some of the subsidies the last Government had asked the BBC to provide.
I am grateful to my right hon. Friend, who was also a key player at that time as a Minister in the Department. He is absolutely right. I mentioned two of the BBC’s requests at the time—the unfreezing of the licence fee and the closure of the loophole—but he is correct to point out that the BBC had always been unhappy about the top-slicing of the licence fee to fund broadband, which it saw as far removed from the purpose of the licence fee. That was another agreement we reached with the BBC, which I think was why the BBC felt that it was a fair and proper settlement.
The right hon. Gentleman is implying that the BBC was happy with all this at the time, but in the press statement announcing the consultation, the BBC said:
“The BBC could copy the scheme… but we think it would fundamentally change the BBC because of the scale of service cuts we would need to make.”
That is not the statement of an organisation that thinks it can easily absorb this.
The agreement with the BBC was that it would have responsibility for maintaining or amending the licence fee concession. The right hon. Gentleman quoted the BBC’s view about the cost of maintaining the concession as it stands, and that view is understandable, since the cost next year will be £745 million, rising to £1.06 billion by 2029-30. I am not at all surprised that the hon. Member for West Bromwich East (Tom Watson) was unable to give any commitment that a future Labour Government would maintain the concession at the cost of the taxpayer, since that would be a £1 billion public expenditure pledge.
In recognition of that, the BBC has put forward three different options. It has talked about continuation, which, as the right hon. Member for Wolverhampton South East (Mr McFadden) said, it feels is not realistic, as that would amount to the current cost of BBC 2, BBC 3, BBC 4, the news channel, CBBC and CBeebies all put together. It has also suggested some amendment to the concession, or discontinuing it altogether. Each of the three possible amendments to the licence fee concession that the BBC has suggested has some attraction. It has talked about raising the age limit to 77 or 80, which to some extent would reflect the ageing population and maintain roughly the same proportion. A second possibility is to introduce a discounted fee, so that people over 75 would not have to pay the full cost.
My right hon. Friend, who is an excellent neighbour, is making an excellent speech. Many of my constituents who are over 75 have emailed me to say that they want to continue to watch the TV with a free licence, but they are not necessarily also watching the BBC on multiple other devices, as many younger people are. Can my right hon. Friend see a case for older members of the public still being able to watch the BBC via a single device, while younger people watch on multiple devices? Would that sort of system work?
Order. I reiterate that there is pressure on time, and interventions need to be short.
I will of course take account of your guidance, Madam Deputy Speaker, but my hon. Friend raises an interesting point, which I want to touch on as I conclude my remarks.
The third possible amendment would be to limit the concession to those in receipt of pension credit. That would address many of the concerns expressed by Opposition Members about those on very low incomes finding it hard to afford and would introduce an element of targeting, to ensure that those who will struggle to afford the television licence do not have to do so.
There is another change that I ask the BBC to consider, which is not included in its options. At the moment, households are entitled to a free television licence if a member of the household is over 75. It is ridiculous that a household might have four adults of working age who are all bringing in an income, but because they happen to have their grandmother living with them, they do not have to pay for a television licence. I ask the BBC to consider a simple change, to restrict the concession to households that only consist of people aged over 75.
I want to end by saying that this raises fundamental questions about the future of the licence fee. Viewing habits are changing, as my hon. Friend the Member for Chelmsford (Vicky Ford) indicated. Evasion of the TV licence is rising. It has gone up from 5.2% in 2010 to an estimated 7% now, with the advent of new services such as Netflix and Amazon, and soon possibly Apple and Disney. The old argument that every household needs to pay the licence fee because everybody watches the BBC is, I am afraid, beginning to break down, and we are reaching a position where many households watch the huge range of programmes available and never turn to the BBC.
That is why I have always believed that, in the long term, the licence fee is not sustainable. We addressed that at the beginning of the charter review. It is recognised by the director-general, who has said that the BBC needs to look at alternative models and has mentioned the possibility of introducing subscription services on iPlayer. At the moment, there is no alternative to the licence fee because we do not have a system where people who choose not to pay it can be cut off; that was why we reached the conclusion that the licence fee had to be maintained. But in the longer term, that will not be true. There will come a time when the licence fee cannot be sustained, but that will be the task of the future Secretary of State who has the job of undertaking the next charter review.
We have had a very good debate with some excellent contributions from the Back Benches. Like other hon. Members, I wish to declare an interest at the outset, which is that although I do not qualify for the concession myself—a fact that is well known by the former Secretary of State, the right hon. Member for Maldon (Mr Whittingdale), as we share a birthday, having been born on the same date in the same year—my mother does. Like the parents of other hon. Members, she is, with her free television licence in hand, a keen follower of the BBC Parliament channel. Like others, she could perhaps afford to pay for her television licence, but she is a miner’s daughter who left school at 14 and worked hard in a factory all her life. It is the sort of concession that is extremely important to someone living on their own at that age. As other hon. Members have pointed out, it can be very lonely for those people. We should bear it in mind that there will probably be many people taking an interest in our proceedings today—I am told that there are often dozens watching the BBC Parliament channel—including many from the over-75 bracket.
We have had some excellent speeches today, including that of the right hon. Member for Maldon, the former Secretary of State. I thought he tried to give the impression that the BBC was delighted with the deal that was struck back in 2015, even though it has been described by others as a hospital pass. I am afraid that nobody really believes that, and deep down, I do not think that the right hon. Gentleman does either. He is entitled, I suppose, to believe that ultimately there should not be a licence fee, which is what he said—he felt that it was unsustainable. However, knowing him as I do, if he wanted that to happen he would probably believe that it should have been in his party’s manifesto, and that it should have been consulted on, because it would be a major change in Government policy. Similarly on this—the potential ending of the free concession on the TV licence for the over-75s—it should have been in the manifesto if the intention was to end the free television licence concession, rather than pretending in the manifesto that it will be maintained rather than outsourced to the BBC.
To some extent I agree with the hon. Gentleman. I remind him that the charter review, which was carried out in 2015-16, was the subject of the biggest public consultation in the history of public consultations in terms of the number of responses that were received. Obviously, the same degree of interest will be generated before the next charter.
We also know what actually happened in relation to the free television licence concession. Basically, as I will say later in my remarks, the BBC hierarchy were taken into a darkened room, rubber hoses were taken out by the Chancellor of the Exchequer, a punishment beating was administered, and they came out making the hostage statement that had been prepared for them, which was that they were delighted with the outcome of these negotiations. I note that the right hon. Gentleman laughs at that, so perhaps my description is not as far-fetched as it might sound.
My hon. Friend the Member for St Helens South and Whiston (Ms Rimmer) pointed out that she could make the shortest speech on parliamentary record if the Government would simply honour their manifesto. We could have done without having this debate today. We would not have needed to be here at all if the Government had actually made real the words of their 2017 manifesto. Instead, as she said, they have used this smoke and mirrors approach to avoid their real responsibilities.
The hon. Member for North Devon (Peter Heaton-Jones), who is unfortunately not in his place at the moment, worked for the BBC for many years and often participates in our discussions about the BBC. He said that the 2015 deal with the BBC represented, from the BBC’s point of view,
“all their Christmases come at once”.
Well, I do not think that it was actually the intention of the former Secretary of State that the BBC should walk away from that negotiation thinking that all its Christmases had come at once; in conjunction with the former Chancellor, it was quite the opposite. Whatever the rights and wrongs of the deal on the funding for the future of the BBC, it was wrong in principle to pass on responsibility for this social policy to the unelected, unaccountable and undemocratic BBC.
(5 years, 8 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
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Thank you, Mr Hollobone; I will be very brief. I was first elected to the House to represent a part of Colchester, so I fully endorse the remarks of my hon. Friend the Member for Colchester (Will Quince) in promoting its many attractions, which I can vouch for.
I now represent the Maldon district. We are all part of the east of England, which does not always get the attention it deserves—people talk about the Lake district and the west country—but has many attractions. My right hon. Friend the Member for Witham (Priti Patel) mentioned some of the attractions in her constituency—indeed, I used to represent some of those as well. We share what is known as the saltmarsh coast, which is an extraordinary asset for recreation, wildlife and sailing.
The other great asset I represent is a place that should be nationally famous but is not: the Stow Maries great war aerodrome, the last remaining first world war aerodrome. It is being restored, with the help of the National Heritage Memorial Fund and the Heritage Lottery Fund, but it does not attract nearly as many visitors as it should because it is not well enough known.
In Maldon and elsewhere we recognise that digital marketing is key—perhaps the Minister will touch on that—and that people now look online to see where there are attractions, but there is not enough co-ordination. The Maldon district promotes things in the Maldon district, and Colchester borough promotes things in Colchester, but there needs to be more co-ordination so that we can demonstrate all the region’s attractions to people who are thinking of visiting the east of England. I am thinking not just of Essex; I am very happy for the hon. Member for Ipswich (Sandy Martin) to participate as well to promote Suffolk. We sit on this great asset, and I do not believe we are yet doing enough to exploit it.
(5 years, 9 months ago)
Commons ChamberI am grateful to the hon. Gentleman for his comments. I also welcome his undertaking to work with us; there is undoubtedly a broad measure of agreement across the House, and it would be sensible for us to work together. I also agree with what he said about the Select Committee’s work in this space, and we all await its further and final report on the issue of misinformation, which is due imminently.
On the BBC, the hon. Gentleman mentioned two aspects of what the review says. The first was the issue of market impact and the BBC. As I said in my statement, without prejudging the outcome I think it is appropriate to invite Ofcom to see whether more can be done here. I do not imply criticism in that request, but it is sensible for me to follow through on that recommendation of the review. But as the hon. Gentleman will recognise, the review also congratulates the BBC, and indeed the News Media Association, for the development of the local democracy reporter scheme and suggests that it may well be expanded. Again, it would be right for us to pursue that, and it is a recognition of the positive contribution the BBC is making in this space.
The hon. Gentleman also talked about the dominance of Google and Facebook, and that is undoubtedly a stark feature of the review. It is sensible to follow through on the review’s recommendation to involve the CMA, as it clearly has a role in determining whether the processes over which it holds sway are being appropriately applied, but I do not believe we should stop there, which is why I intend to begin a Government-centred review of the broader policy implications surrounding the online advertising market. That will follow on from the Furman review of competition issues which is already under way.
The hon. Gentleman mentioned the work the Government are doing on online harms, and he knows that we are considering a number of the issues he has mentioned, including of course the penalties that ought to be available when online platforms that have understood their responsibilities choose none the less not to exercise them. He also knows that I am committed to ensuring that those penalties are meaningful. He will forgive me for asking him to wait a little longer for the detail, but we will publish the White Paper shortly.
Finally, I agree entirely with what the hon. Gentleman says about the importance of trustworthy news. It is fundamental to our democracy and our society that we can trust what we read, and that there is a means whereby citizens of this country can read proper and informed scrutiny of what those in power are doing. That applies at both national and local level. The purpose of the Cairncross review was always to make a substantial contribution to that debate and to offer some ways forward. I believe it has done that; I have not suggested, and neither has Dame Frances, that it presents all the answers to these very complex problems, but they are problems with which we are right to wrestle as a democracy, and we are right not to let go of the importance of the scrutiny we are all rightly subject to.
I very much welcome Dame Frances Cairncross’s report, which I believe addresses one of the greatest challenges to properly functioning democracy today. Does my right hon. and learned Friend agree that the priority must be to facilitate more professional journalists to report on the proceedings of local councils, local courts and other local institutions, which are currently all too often going unreported? The BBC’s local democracy initiative at least starts to address that challenge, so will he look at ways of expanding that initiative, perhaps by bringing on board to it the technology companies that are currently distributing the content but doing nothing to help collect it?
I agree with my right hon. Friend. A large part of the answer is, as he says, to ensure that there are more professional journalists in the right places at the right times to provide the scrutiny that we all agree is important and necessary. As he has heard me say, the local democracy reporting scheme is a good example of how that might be achieved in the times that we currently live in. I should like to take this opportunity to pay tribute to my right hon. Friend for the part that he played in bringing that scheme into existence in conjunction with the BBC. It is a good thing, but he is right to say that there is scope for further expansion, as Dame Frances Cairncross has also pointed out. That expansion must be paid for, and I will certainly look into his suggestion and pursue further how we might persuade those who are benefiting from the current arrangements to ensure that their worst excesses are mitigated.