BBC: Funding

Debate between Stephanie Peacock and Jim Shannon

Wednesday 18th December 2024 Westminster Hall

[Stephanie Peacock]

I will happily ask the Secretary of State to write to the hon. Lady. However, in talking about mutualisation, which the Secretary of State made some comments about some years ago, I think it is about having a greater role for the public in BBC accountability and the public feeling more ownership of it. But we will happily write to the hon. Lady with more detail, as I do not want to speak on the Secretary of State’s behalf.

[Jim Shannon]

I thank the Minister for her response; she is always very positive and very enthusiastic. In last night’s Adjournment debate on the charter review, she referred to complaints and how they will be handled by Ofcom or other organisations. However, the people who come to me with the examples of bias that I referred to are some of those who do not have a BBC licence and will not buy one. If the BBC has a better system, where people who have complaints about bias, whatever they may be, have their complaints handled in a good, honest and transparent way, that might draw back some people who have decided not to renew their licence. Will she assure us that that will happen?

[Stephanie Peacock]

I am grateful to the hon. Gentleman for his intervention. Of course, we spoke about this issue in the debate last night. There is the complaints procedure through BBC First, and complaints can be escalated to the executive complaints unit and then to Ofcom. But I appreciate that some people have simply decided not to buy a TV licence, and we want to explore the issue of trust and confidence in the BBC as part of the charter renewal process and the review. There will be a public consultation, in which his and my constituents, and the constituents of Members across the House, can take part.

We are not in the business of reform for reform’s sake. We will think in the broadest sense about the options for the BBC’s funding and structure, and nothing is off the table, as the Secretary of State said in evidence to the Culture, Media and Sport Committee last week. It is clear that there are limits to the amount of money that the BBC can raise from commercial sources, particularly given its obligations as a public service broadcaster. We firmly believe that the unique obligations placed on the BBC demand continued and sustainable public funding in support of its vital work.

In the meantime, we must ensure that the BBC is properly and fairly supported for the remainder of this charter. That is why we have announced that we are increasing the annual cost of a TV licence from April 2025 by £5, in line with consumer prices index inflation, which is less than half as much as last year’s increase. For the BBC, that will provide additional and proportionate funding that will allow it to continue to deliver world-class educational and engaging programming. We always take decisions on funding to provide certainty and stability for the BBC while ensuring that those decisions deliver the best outcomes for licence fee payers.

The Government have already noted the ongoing concerns about the impact of TV licensing enforcement action on vulnerable households. I am acutely aware of the financial difficulties faced by some households, and we are committed to supporting them to spread the cost of a TV licence. We recently announced an expansion of the simple payment plan to all unlicensed households facing financial hardship to help more people pay in flexible instalments, rather than them having to find a greater amount of money up front. We will also look at enforcement issues as part of the longer-term funding work we take forward at charter review.

The provision of trustworthy local and national news is vital for democracy and to hold elected representatives to account, especially at a time when misinformation and disinformation are spreading at rapid speeds. Local journalism, in particular, also helps to foster community in areas like mine in Barnsley. By reporting on stories that matter to local people, the BBC helps people to feel connected to the place they call home. In the past few days alone in my area, the BBC has reported on a new sculpture that will be placed on a roundabout in Goldthorpe, a local Christmas tree that had to be taken down due to dangers related to wind and vandalism, and a new specialist care home being built in Barnsley. Those kinds of varied local stories matter to local people, and they enrich their understanding of the issues affecting their neighbourhoods. I know Members from across the House will have similar stories to share.

Ultimately, the BBC has a huge role to play in telling our country’s story, creating great jobs and opportunities and driving growth in the creative economy. We are determined to get the forthcoming charter review right to future-proof the BBC and to ensure that we can all continue to enjoy and benefit from it for decades to come. The right hon. Member for Maldon has made an important contribution, not just today, but through his years of public service, and I thank him for that.

BBC Charter Review

Debate between Stephanie Peacock and Jim Shannon

Tuesday 17th December 2024 Commons Chamber

[Stephanie Peacock]

Yes, I do accept that, and it is something we can look at as part of the charter review. Of course, Ofcom, as the BBC’s independent regulator, holds the BBC to account on its performance and its commissioning practices, and on the market impact of those.

The hon. Gentleman mentioned BBC pay, which I appreciate is a matter of debate and controversy. The royal charter requires the BBC, as he rightly said, to publish the salary details of all BBC staff and talent paid over £178,000. Salary disclosures of this kind were made for the first time as part of the 2016-17 annual report. The salaries of BBC staff are also a matter for the BBC and the individuals themselves, not for Government. However, the charter review will look again at the transparency of this issue.

[Jim Shannon]

In my intervention on my hon. Friend the Member for East Londonderry (Mr Campbell), I referred to impartiality and BBC bias. Many of my constituents feel that the BBC is not impartial. Under the charter, is it possible for people to express such concerns, and for those concerns to be investigated?

[Stephanie Peacock]

Of course, and there is a complaints procedure right now. A complaint goes to the BBC first, and it can then be escalated. If the hon. Gentleman’s constituents are not happy, they can then go to Ofcom. As part of the charter review, it is absolutely right that all members of the public can have their say. We will be launching a public consultation so that his constituents, and indeed people across the country, can have their say, because we want the BBC to represent the people it serves.

Next year, the Government will launch a charter review with the aim of addressing some of the challenges we are discussing today and delivering a renewed charter by the end of 2027 that will support the BBC not just to survive but to thrive long into the future. This will be the ninth charter review in the BBC’s history. It will be an opportunity to consider what the BBC is for, how it delivers for audiences and how it should be funded, governed and regulated against a rapidly changing media environment. The charter review will also look to uphold the BBC’s independence and ensure that it maintains the public’s trust.

Charter review is a well-established process, and our next step will be to publish the terms of reference next year, setting out the objectives we wish to achieve. We will ensure that we take all relevant views into account as part of the review. With that in mind, next summer we will also launch a public consultation, as part of which we will encourage everyone to share evidence. We need to have a truly national conversation and ensure that the BBC is reflective of the people it serves, wherever they come from and whatever their background. Once we have consulted widely, considered the views of stakeholders and assessed the evidence, we will outline our policy direction for the next BBC charter in a White Paper in 2026.

There will also be an opportunity to place a draft charter before both Houses before the current charter expires in 2027. The devolved Governments will be a key part of the conversation and I look forward to visiting Northern Ireland in the coming months. I have met the Northern Ireland Minister for Communities online, and I welcome further conversations with my devolved counterparts.

As we address vital issues about the future of the BBC, we must ensure that there is a sustainable funding model that is fair to those who pay for it. We will consider that area as part of the upcoming charter review. The media landscape has changed radically since the current charter was introduced in 2017, and the BBC faces key challenges to its sustainability. We cannot ignore the fact that the challenges to the funding model in its current form are increasing, and we are fully committed to retaining the licence fee for the rest of this charter period. However, for the BBC to succeed, it must have sustainable funding to allow it to adapt and thrive in a changing media landscape.

We are clear that what the BBC does and what it can achieve are inextricably tied to how it is funded, and those issues should be considered together. The charter review will be an important part of making sure that the BBC is supported to do that. The Government are keeping an open mind about the best solutions. As my Department’s work progresses, we will be working closely with the BBC and engaging with other broadcasters, stakeholders across the creative industries and the British public to inform our thinking.

While audience trends are changing, there are still millions of households that continue to rely on digital terrestrial television, also known as Freeview. I am glad to say that the continuity of the technology has been secured in legislation until at least 2034. The need to maintain traditional broadcasting platforms, at the same time as there is a shift to online viewing, is resulting in more choice for audiences, but it is creating financial pressures for our broadcasters, including the BBC.

Our project on the future of TV distribution will explore those issues. We will analyse how people receive their television programmes now, and through the next decade. It will help us to ensure the continuity of a sustainable TV ecosystem and the best outcome for audiences. As part of the project, I am glad to be chairing a new stakeholder forum on the future of TV distribution, allowing me to hear from TV stakeholders, including the BBC, infrastructure providers and groups that represent the interests of audiences. I will, of course, raise the issue of TV distribution when I next meet my counterparts in the devolved Governments.

The charter review provides us with an exciting opportunity to engage the widest possible range of voices on the future of the BBC. The Government are committed to having a truly national conversation as part of the charter review. It will be an honest, supportive and respectful debate that can give the public confidence in their BBC. We will provide more details on what that looks like and how stakeholders can contribute their views in due course, when we launch the review next year. The hon. Member for East Londonderry has contributed to that national conversation today, and for that I thank him.

Question put and agreed to.