BBC: Funding

Saqib Bhatti Excerpts

Wednesday 18th December 2024 Westminster Hall

[Saqib Bhatti (Meriden and Solihull East) (Con)]

It is a pleasure to serve under your chairmanship, Mr Mundell. Let me start by wishing all Members and you, Mr Mundell, a very merry Christmas. I thank my right hon. Friend the Member for Maldon (Sir John Whittingdale) for securing this valuable debate, which has been a spirited one with some interesting points. I will pose some questions to the Minister in, as it is Christmas, the most constructive way I can.

The BBC plays a fundamental role in the lives of the vast majority of people in the country, and its scope is impossible to underestimate. The National Union of Journalists estimates that 91% of British adults use BBC television, radio or online each week. As a number of Members have pointed out, its global reach is equally important: 426 million people access the BBC every week via the World Service and its worldwide and global news services.

The BBC’s reach and reputation is rightly a source of pride for people in the UK. However, as my right hon. Friend the Member for Maldon pointed out, as we approach the renewal of the BBC’s royal charter in 2027, there is no denying that the Government must recognise some of the challenges that the organisation faces, not least in respect of its sustainability, with decreasing licence fee uptake and decreasing revenues.

The issue of trust has been brought up. The social contract that exists between the licence fee payer and the BBC is fundamental. Unless we ensure that people have faith in the BBC and its role in society, endless questions about its relevance and importance will continue to be a factor in public discourse. Failure to address that will undermine trust in the BBC.

The BBC is one of our great institutions. Since its founding, it has promoted the very best of Britain at home and abroad. It has guided our nation through war, economic and political crises and much more. It needs to be trusted, especially as we see our adversaries like Russia and China bolstering the reach of their own state broadcasters. We also see the concerning impact of AI and misinformation domestically and around the world. We must emphasise the issue of trust. We are clearly seeing a trend in the questioning of the BBC’s credibility, as pointed out by my hon. Friend the Member for Hornchurch and Upminster (Julia Lopez), who was an excellent Minister on these issues, as was my right hon. Friend the Member for Maldon.

Recent funding figures are a cause for concern. A 2015 report by the Culture, Media and Sport Committee found that some view the licence fee as “anachronistic” and

“harder and harder to sustain”.

Its conclusions are verified by the fact that licence fee income between 2022-23 and 2023-24 went down, and there were fewer licences in force at the end of March 2024 than the end of 2023. That clearly suggests that more people are reluctant to pay the licence fee because they are not believing in the BBC or trusting it. This is a foundational challenge for the Government. This country needs the BBC. The challenge is for the Government and the BBC to make that case. I hope the Minister will recognise that in her response.

We must also recognise that the way that people, especially our younger generations, engage with media has altered dramatically in the past decade. The covid pandemic accelerated some of the trends that have dramatically transformed the media landscape. It led to a surge in online streaming companies, which now dominate the market. As we approach the review of the royal charter, we cannot ignore the radically different media environment that the BBC is operating and competing in compared with that of just 10 years ago. The Government must understand that unless there is genuine reform of the BBC and how it functions, it will continue to be an analogue service in a digital world.

There is no denying that the licence fee model was conceived at a time of linear viewing, when watching programmes at the time of broadcast was commonplace. The reality is much different now. The BBC competes in a far more crowded market—a market that can be accessed at any time, anywhere. Licence fee payments will not increase if the BBC does not continue to strive to adapt to the rapid changes in online media that we all have to interact with. What discussions is the Minister having with the BBC to ensure that its funding remains sustainable over the next 10 years, in the light of a radically different media landscape? I acknowledge that these are not easy questions; they require leadership and clarity, so I hope the Minister can provide some of that in her remarks.

The issue of local radio has also been brought up, and the Government should seek to engage constructively with the BBC about its future. The BBC has 39 local radio stations that currently reach 5.7 million listeners. Under the terms of the current royal charter, the BBC has an obligation to reflect the diversity of the United Kingdom in both its output and its services and must meet the needs of its regions and communities. As the National Union of Journalists sets out, local radio is a lifeline for often-isolated rural communities and provides an invaluable source of news and education for so many, especially elderly people in our communities. At a time when elderly people are feeling more and more marginalised, it would be wrong to make further cuts to local radio, which provides essential information and entertainment for millions. My right hon. Friend the Member for Maldon made some excellent suggestions in that regard, and I hope the Minister can address his concerns.

I want to turn to Ofcom, because the question of BBC funding raises other issues that have been brought up in a number of different ways when it comes to the BBC’s impartiality. As Ofcom is the broadcasting regulator and has the role of challenging broadcasters, especially in an ever more competitive environment, there are clearly questions that the public will want answers to. In the past decade, the BBC has had many new competitors, and I want to raise the issue of GB News. Ofcom recently fined GB News £100,000 for its programme with the former Prime Minister in February this year. Many people believed that was not correct, and I also question it. The Government should question Ofcom’s remit, its scope to deny freedom of speech, and whether its fines are proportionate in the circumstances, as we enter an ever more competitive media landscape that is fundamentally different compared with the previous decade.

I wish you a merry Christmas, Mr Mundell, and I thank all Members for their contributions; I hope they have a happy new year.