BBC Funding

Lord Mendoza Excerpts

Tuesday 12th December 2023 Lords Chamber

[Lord Parkinson of Whitley Bay (Con)]

I do not agree that providing the BBC with more than £3.8 billion is undermining it. That is a large amount of money for the BBC to do its important work. The noble Lord is right to draw attention to the work of your Lordships’ Communications and Digital Committee. I know that my noble friend Lady Stowell of Beeston would have liked to be here for this exchange, but the committee is on an external visit today. We will, of course, engage with her and the ideas and work of the committee. As I say, the future funding review will look at such matters as we weigh all that up and make decisions about the best way to provide the BBC with the sustainable income it needs.

[Lord Mendoza (Con)]

My Lords, the BBC is a thriving part of a much wider creative industries sector. That sector has transformed in recent years and continues to transform. The McKinsey report on the arts sector, which came out last month, described the creative industries as now having reached a £126 billion contribution to GVA, which is exactly equivalent to the entire construction sector, with 2.5 million jobs. This is the universe in which the BBC is now swimming. The expert panel will be looking at a funding model, but is it not slightly strange to have a funding model in search of a strategy? Should not that expert panel also consider what we want the BBC to provide as a public service broadcaster, whether on news—local, regional and international—education, children’s programming and so on? I hope that the expert panel will think more on that as well, so that we do not just have £3.8 billion looking for something to do.

[Lord Parkinson of Whitley Bay (Con)]

My noble friend is right to draw your Lordships’ attention to the excellent report done by McKinsey and published recently, which highlights the successes of our creative industries. They were growing nearly twice as quickly as the rest of the economy before the pandemic. As he knows, the Government are determined, through our Creative Industries Sector Vision, to continue to help the sector grow and thrive. He is also right that the BBC and our other public service broadcasters play an important role in the success of the creative industries. That is why, as I have said, we want to take that into account as we look at the best way to fund the BBC in the decades to come. We want the BBC to continue to succeed as a public service broadcaster long into the future, providing high-quality public service content and supporting our thriving and growing creative industries.