BBC: Funding

Liz Jarvis Excerpts

Wednesday 18th December 2024 Westminster Hall

[Liz Jarvis (Eastleigh) (LD)]

It is a pleasure to serve under your chairmanship, Mr Mundell. I am grateful to the right hon. Member for Maldon (Sir John Whittingdale) for the opportunity to discuss the future funding of one of our nation’s most cherished institutions. The BBC has been at the heart of our national life for more than 100 years. It embodies a mission that is simple yet profoundly important: to inform, educate and entertain. The BBC is not just another broadcaster; it plays a vital role in our cultural life and our national identity. It is universal, independent and unparalleled in its reach and influence, and it remains the most trusted broadcaster in the world.

From BBC Bitesize, which has educated millions of children, to the drama, music and comedy that enrich our lives, the BBC has no equal. Unlike global streaming services, which are motivated by profit and primarily serve international markets, the BBC exists to benefit the UK public. Public service broadcasting ensures that content is produced for everyone, regardless of wealth or geography. It brings us together, whether to watch the coronation, follow the Olympics, enjoy the sounds of Glastonbury or tune in to local radio to hear about issues in our communities.

A Netflix-style subscription model would be divisive and exclusionary. It would force the BBC to focus on content that attracts paying subscribers, sidelining the universal services that make it so valuable. The BBC’s services serve all audiences, not just those who can afford to pay. A subscription model would drive up costs for consumers and reduce the money available for investment in content.

The notion that the BBC’s entertainment content should be put behind a paywall is misguided. For many households, including the digitally excluded, that would make BBC services inaccessible. It would also result in the loss of free access to well-loved shows such as “Strictly Come Dancing”, “Match of the Day”, “The Traitors” and world-renowned drama. The proposal also ignores the reality of subscription-based financial models. Since its launch in the UK in 2012, when it charged £5.99 per month, Netflix’s standard plan has increased to £10.99 month, and its premium plan to £17.99—increases of 83% and 200% respectively. Consider the impact on a young person from a low-income household who might discover a passion for science through a BBC documentary, or be inspired to pursue their dreams by a BBC film. Those transformative experiences would be lost if access were restricted to only those who could afford to pay.

An advertising-funded BBC would be equally damaging. It would siphon advertising revenue away from commercial broadcasters, weakening the entire UK media ecosystem. Worse still, it would compromise the BBC’s independence by exposing it to commercial pressures. That would push the BBC to prioritise more generic, mass-appeal programming over distinctive, high-quality British productions. It would also undermine the BBC’s ability to deliver the rich, global and multicultural programming that has become its hallmark.

The BBC’s current funding model guarantees universality and independence. For just over £3 a week, households gain access to a treasure trove of content, including nine TV channels, 39 local radio stations, and online services such as the BBC iPlayer and BBC Sounds, yet the BBC has faced a 30% real-terms funding cut over the past decade, forcing tough decisions and service reductions. We cannot continue with perpetual uncertainty about the status of the BBC. The BBC’s current charter ensures the licence fee model until at least 2027, but beyond that we must commit to a funding model that is sustainable, fair and fit for the future.

Part of that future must include stronger support for the BBC World Service. This unparalleled institution is not only a vital source of impartial news for 450 million people globally, but a key pillar of the UK’s soft power. Whether it is exposing corruption, raising awareness of public health challenges or championing education and human rights, the BBC World Service not only projects British values but does real good in the world. However, recent funding cuts forced the closure of language services. This is unacceptable. We must restore full funding to the World Service through the Foreign Office budget to allow it to continue its invaluable work.

The BBC is also a driver of the UK’s creative economy, contributing nearly £5 billion annually. It commissions more independent productions than any other broadcaster, invests in research and development, and supports apprenticeships and training. At its heart, the BBC’s mission is to act in the public interest, serving all audiences through the provision of impartial, high-quality and distinctive output. In a media landscape dominated by billionaires seeking to engineer narratives that align with their personal interests and agendas, the BBC stands as one of the few institutions committed to impartiality and serving the public.

[Tom Rutland]

We have heard, not just today but over the years, accusations of political bias. I have friends on the left who accuse the BBC of being biased against them, and family members on the right, with whom I am sure I will have conversations over Christmas, make the same comments. Does the hon. Lady agree that if both sides—and indeed, I am sure, the middle—have complaints about it, perhaps the BBC is getting something right?

[Liz Jarvis]

I agree with the hon. Gentleman.

Does the Minister agree that the BBC’s funding model must not be a Trojan horse for those who seek to undermine its editorial independence and pave the way for figures such as Elon Musk, whom we have little opportunity to scrutinise or hold to account? Liberal Democrats are committed to a strong, independent and well-funded BBC that continues to reflect the diversity of our nation and serves all audiences.

[Sir John Whittingdale]

I do not disagree with a lot of what the hon. Lady has said about the value of the BBC, but the problem is that more and more people are unwilling to pay the licence fee, and that has to be addressed. She wants to see a strongly financed and funded BBC, but she is going to have to come up with an answer to the fact that the revenue is going to go on declining under the present model.

[Liz Jarvis]

I do not disagree that there needs to be a plan, but at the moment I do not see one on the table. The next charter review is the time to have a serious, evidence-based discussion about funding, but any changes must strengthen, not diminish, the BBC.

Through the BBC we see things about our nation and the world that we might never encounter in our own lives. As Sir David Attenborough has said, the world would be worse off without our stories. It must be taken with great pride that the British public has a direct role in providing the platform needed to nurture and share the genius of so many British individuals in the creative industry. I hope we can continue to protect public ownership of the BBC, to preserve the voices and stories that make us who we are.