BBC: Government Support

Lord Parkinson of Whitley Bay Excerpts

Thursday 2nd December 2021 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, I thank the noble Lord, Lord Bragg, for securing and for opening this enjoyable and important debate. There are many in your Lordships’ House who have experience of the BBC—either because they or members of their family have worked there. There is no one who can hold a candle to the noble Lord’s wealth and breadth of experience at the corporation. As he said, that began 60 years ago this year when he joined as a graduate trainee. I can only agree with the noble Lord, Lord Londesborough, that that was a very good hire indeed on the part of the BBC.

I also join those noble Lords who welcomed the right reverend Prelate the Bishop of Liverpool and congratulated him on his excellent maiden speech. I agree with the noble Baroness, Lady Merron, when she said that the BBC’s loss is a gain for the Church of England and for your Lordships’ House. I was struck by what the right reverend Prelate said about the need for calm scrutiny and careful consideration of not just what we say but how we say it. This is an important lesson for this place as well as for public discourse in many arenas.

The BBC is a great national institution of which we should all be proud. As my right honourable friend the Secretary of State has said, the BBC is a “beacon” for news reporting and the arts around the globe. It is a first-rate broadcaster, a cultural cornerstone and a producer of some of the best television and radio in the world. It holds a unique place in our cultural heritage. In its near 100-year existence so far, it has contributed enormously to the British sense of self, as it has both evolved and endured during the last century.

Beyond our shores, the BBC carries British values and identities to a worldwide audience which has more than doubled in the last decade, and reaches hundreds of millions of people every day. The BBC is the single biggest investor in original British content, as the noble Baroness, Lady Bonham-Carter of Yarnbury, noted. In 2019 alone, the corporation spent more than £1.4 billion on original UK television content. Some 54% of its commissions went to independent productions, of which 57% were from outside London. The BBC’s focus on British TV production also attracts investment from others. In 2019, more than £1.2 billion of third-party production spend was directly attributable to the BBC’s grass-roots investments. As noble Lords have pointed out, it acts as a catalyst.

The BBC’s UK-wide investments are reflected in its output. As noble Lords have rightly said, this has been a lifeline for many people during the pandemic—whether through the trusted information highlighted by the noble Viscount, Lord Stansgate, or through Bitesize, which helped those who were home-schooling, as the noble Lord, Lord Storey, mentioned. The invented escapism of new programmes, such as Michael Sheen’s and David Tennant’s “Staged” brought a smile to many faces of people stuck at home.

As my noble friend Lord Vaizey of Didcot said, we all have our preferences and partialities about the BBC. Perhaps we even have our rituals. I wake up to the “Today” programme every morning. I fall asleep to “Today in Parliament”—not, I hasten to add because of the content of the speeches therein.

The BBC is a leader in British programming. Despite increasing competition in the entertainment sector, it is a conduit through which outstanding homegrown talent arrives on our screens, in our speakers and, increasingly, on our smartphones. The BBC’s approach to funding talent will be crucial to our creative industries and the many world-class creative professionals working within them, as the sector recovers from the effects of the pandemic and continues to grow at a brilliant speed, as the noble Baroness, Lady Bonham-Carter, noted. The Government also welcome the BBC’s pledge to move two-thirds of its staff outside London. This will ensure even more diverse programming and create a BBC that better represents every Briton.

The BBC’s reach and influence extend far beyond our shores. This debate rightly has a global focus too. The BBC World Service is the world’s largest international broadcaster. It provides accurate and impartial news, analysis and discussion in more than 40 languages. The BBC recently confirmed that the World Service audience is now 364 million people—its highest ever global figure. In an era of fake news and viral misinformation, the value of a free press has never been so important. The BBC World Service is, therefore, an essential vehicle for information across the world. Founded in the early 1930s, it continues to be just as relevant today—perhaps increasingly so.

Following government investment of £291 million, the BBC World Service has expanded and enhanced its services as part of the World 2020 programme. Today, it broadcasts in dozens of languages—from Indonesian to Igbo and from Punjabi to Portuguese. The noble Viscount, Lord Colville of Culross, stressed the importance of the BBC’s Russian output. The noble Lord, Lord Hannay of Chiswick, rightly spoke of the bravery of the staff of the World Service in their work. Its comprehensiveness and inclusivity are unparalleled.

A number of noble Lords asked about the funding of the World Service. The framework agreement guarantees that the budget for the World Service must be at least £254 million until April 2022. The Government are engaging with the BBC on the future of World Service funding as part of the discussions about the licence fee settlement. While details of the grant-in-aid settlement are still to be finalised, the Foreign, Commonwealth and Development Office is also committed to providing grant-in-aid funding for the BBC World Service through to 2025.

The Government support the BBC’s mission to bring high-quality and impartial news to international audiences. It is a crucial asset to Britain’s soft power and influence across the world, and its reporting is a precious resource to many who view it. The Government also support the BBC’s continued focus on global commercial opportunities, of which noble Lords spoke, working in conjunction with ITV and other partners. By continuing that work, the BBC is increasingly able to export great British content and values around the globe.

However, the Government have been clear that there are areas where the BBC can and should improve. It is perhaps pertinent that the BBC is still often known affectionately as “Auntie”, and, like all families, people can speak with both love and frustration about the corporation, with sincere thoughts about how it can improve and continue to flourish. I agree with the noble Baroness, Lady Fox, who says that we have almost a duty to criticise. I hope that we can do that, in the spirit of the right reverend Prelate the Bishop of Liverpool, in a calmly critical way and provide the calm scrutiny which is needed.

The BBC knows this too. The Dyson report and subsequent Serota review identified that significant changes should be made in order to provide assurance to Parliament and the public, and restore the BBC’s reputation. While much has changed since Martin Bashir’s interview with the late Diana, Princess of Wales, there is still scope for improvements to be made. The Serota review’s recommendations include an overhaul of the BBC’s approach to impartiality and transparency, and tackling what staff have called a “culture of defensiveness”.

The review also identified the risks of groupthink at the BBC, something that a number of noble Lords alighted on today. Like all big and long-established institutions, there is a risk, as with so many others, of succumbing to a “we know best” attitude that can be detached both from the criticism and the values of all parts of the nation that it serves. The BBC must continue to commit to improving diversity of opinion and perspectives at all levels in defending the pluralism of which my noble friend Lord Hannan of Kingsclere spoke. The BBC should also enhance opportunities for underrepresented groups of people, particularly those from lower socioeconomic backgrounds, to access and enjoy and have careers at the BBC. It is right that the BBC reflects all communities across the UK, both on and off the screen.

The Government support the BBC. We want to see it rectify the institutional failings that led to the events in the Dyson report. A renewed focus on editorial standards, impartiality and accountability is essential in rebuilding trust. In that context, we welcome the BBC’s 10-point Impartiality and Editorial Standards action plan, and the commitment to implement the recommendations of the Serota review in full. But the proof, as ever, will be in the pudding. As Ofcom outlined in its annual report on the BBC last week, while the action plan is a good start, it needs to be delivered. The BBC must move forward with its plan as quickly as possible and should do so with appropriate transparency. This is necessary to show to the public the BBC’s real commitment to reform.

The Government also agree with findings in Ofcom’s recent report that the BBC

“must keep evolving to be relevant to all audiences”.

That is not a partisan point. Indeed, it was clearly articulated earlier in the week by the noble Lord, Lord Blunkett, who cannot take part in our debate today. I would not presume to paraphrase the noble Lord, who speaks with great care and consideration, but I will quote from the article that he wrote. He explained that he would be unable to be part in this debate as he is chairing another meeting, but that

“if I could, I’d be loud in my praises of the Corporation. But I’d also have some stern criticism. Radio 4 has become so determined to address multicultural diversity, gender issues and identity politics that it forgets about all-embracing inclusion. People who live outside a narrow class of well-off professionals with rigidly right-on opinions, almost all of them in London, no longer feel included by the station.”

While not everyone will agree with every word of what the noble Lord said, it is clear that there are groups across the country who do not feel represented by the BBC, and it needs to do better in engaging those audiences across the UK, so that criticism like that can be met and need not be levelled.

I agree with the noble Lord, Lord Young of Norwood Green, about the soft but important power of programmes such as “Strictly Come Dancing” in telling stories and increasing the representation of gay and deaf people, for instance. But there are so many other stories that need to be told too—points made by my noble friend Lord Lilley, the noble Baroness, Lady Fox of Buckley, and the noble Lord, Lord Addington, in his well-made point about elite-level sport and the diversity that we need there.

On that point, and the point made by the noble Baroness, Lady Merron, on listed events for sporting endeavours, we are considering the proposals made by Ofcom on the listed events framework but, at this stage, think that the current regime strikes an appropriate balance in ensuring that significant sporting events are available to as wide an audience as possible, with the ability of sporting organisations to generate revenues to invest in their sports. But we will of course continue to keep that issue under review, with the Olympics and other big sporting events coming up.

The Government will shortly begin work on the mid- term charter review, which will examine the governance and regulation of the corporation. This will consider whether the current arrangements are working effectively or if further reform is required. We have also committed to examining the licence fee funding model ahead of the next charter review. The noble Baroness, Lady Bonham-Carter, knows the answer to that question: work on this will begin well in advance of the end of the current charter period.

The noble Baroness, Lady Jay of Paddington, raised the question of gender equality at the BBC. I do not know whether other noble Lords enjoy watching former general election night programmes as much as I do or have seen the broadcast of the 1970 general election, when my noble friend Lady Fookes was first elected to another place. It went viral, as is said nowadays, when her interview with Sir Robin Day, moments after her election to the House of Commons, was replayed. The way he spoke to her as a new female Member of Parliament was shocking to modern ears, and deserves to be. I am glad to say that much progress has been made in the intervening years.

As a public service broadcaster funded by licence fee payers, the BBC has a responsibility to set an example for others and lead the way in promoting equality in the workplace. The Government are disappointed to learn that the median gender pay gap at BBC Studios actually increased to 11.2% from 9% in the previous financial year. It is for the BBC to determine how to close its gender pay gap, and we expect to see improvement in next year’s disclosure. As in so many areas of national life, transparency is vital in this area, and the BBC’s pay disclosure shows that it still has work to do. It is vital that we continue to see these figures in future years, so that licence fee payers can monitor progress.

I agree with my noble friend Lord Vaizey, rather than my noble friend Lord Hannan, on the importance of local radio stations and local BBC work. Local and regional news coverage provide a vital service, providing information about local public affairs, holding local decision-makers to account and providing a forum for community decisions, as well as important information in relation to floods, as the noble Lord, Lord Liddle pointed out, or storms, such as Storm Arwen, which we discussed before this debate.

The Government ensured that, in its royal charter, the BBC has a duty to consider its market impact and to ensure that it seeks to avoid adverse impacts on competition. The noble Lord, Lord Inglewood, also pointed to the welcome and important work of the Local Democracy Reporting Service. Under the new regulatory system introduced by the Government in 2017, the BBC board must ensure that the BBC complies with its charter duties. Ofcom was established as the BBC regulator to ensure that the BBC is robustly held to account.

The BBC is a beacon for reporting and the arts around the world. It provides distinctive British programming, supports our creative industries at a domestic level, and delivers quality output and news on an international scale. It is a priceless national institution of which we should all be proud, and we are. It is because the Government support the BBC that we are focused on encouraging it to improve and reform. We want the BBC to continue to succeed, to meet the challenges of a fast-changing media environment and to continue the mission set by the late Lord Reith to inform, educate and entertain for many more generations to come.