BBC: Funding

Tom Rutland Excerpts

Wednesday 18th December 2024 Westminster Hall

[Tom Rutland (East Worthing and Shoreham) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Mundell. I refer colleagues to my entry in the Register of Members’ Financial Interests; I am the chair of the BBC all-party parliamentary group, a recipient of hospitality and a former employee of Prospect and Bectu unions, which represent workers at the BBC.

I thank the right hon. Member for Maldon (Sir John Whittingdale) for securing this debate on such an important issue, not only for the BBC as an organisation, but for all of us who benefit from its mission to inform, educate and entertain. When we discuss the future funding of the BBC, we must understand the need to safeguard its unique role with a funding model that enables it to continue to be independent and universal and to provide the unique content that its audience expects. With BBC iPlayer having been the fastest-growing streaming service this year and with 95% of UK adults using BBC services every month—whether that is its nine TV channels, its 16 radio stations, its streaming apps or the World Service —we must recognise that the demand for the BBC’s services and content reflects what a vital source of information and entertainment it is for our constituents and for people accessing World Service content around the world.

It is also vital to our democracy. In a landscape of bias, spin, the common approach of “Don’t let facts get in the way of a good story” and the rise of unverified content and disinformation masquerading as news on social media, the BBC’s championing of impartial and fearless reporting at home and abroad and its operating without pandering to political or commercial interests is becoming more vital, not less. I am sure that colleagues of all political persuasions agree with that.

The financial challenges for the BBC are stark; when we debate future funding, we must recognise that. It has seen a 30% real-terms decrease in funding for UK services in the past decade, exacerbated by previous decisions around the licence fee and, of course, the hyperinflation in the film and TV industries in recent years. It has also taken on additional financial responsibilities in the past decade, including licences for the over-75s on pension credit. Although I know that the BBC welcomes the new Government’s funding uplift for the World Service in our recent Budget, two thirds of its funding still comes from the licence fee. I know that the licence fee will be in place until at least 2027-28, but given the challenges that have been outlined, this debate on its future funding is timely.

Many funding models have been proposed, but many alternatives to the licence fee would simply not secure the future of our world-leading public service broadcaster and would threaten its ability to create uniquely British content and tell stories, both fictional and real, from across the UK. An advertising model, for example, would not be right for the BBC: it would introduce commercial interests into programming decisions and would force the BBC to compete with other public service broadcasters and commercial radio and TV over ever-dwindling advertising revenue, as the right hon. Member for Maldon pointed out. I would be deeply concerned by the impact that that would have on the BBC’s ability to continue to invest in our world-leading creative industries and talent. It would undoubtedly leave the BBC and the rest of our broadcasting ecosystem worse off.

Similarly, a subscription model would not provide the universal public service broadcasting to which we and the BBC aspire. It would threaten regional programming and investment. It is unsurprising that the Government have committed to a sustainable public funding model for the BBC as part of the upcoming charter review to ensure that we continue to have a BBC that is impartial, universal and accessible, but it is important that we closely examine the licence fee model and consider reforms to ensure that its scope, progression and enforcement are fit for the times we find ourselves in.

We have something very special in the BBC. It has brought the nation together for more than a century for those enormous moments in our shared lives, from sporting triumph to the election drama that those of us in this Chamber all enjoyed this year, and from the latest adaptation of J. K. Rowling’s “Cormoran Strike” books to the upcoming “Gavin and Stacey” Christmas special, which I know will be on in my family’s house. It provides fearless news coverage in our neighbourhoods, from Westminster and abroad, and it invests in creative talent.

[Alex Mayer (Dunstable and Leighton Buzzard) (Lab)]

My area has excellent regional news coverage, including BBC Three Counties Radio and “Look East”. However, back in 2022, a decision was taken that has meant that my regional politics programme is now recorded more than 100 miles away from my constituency. Given that all news is local, would my hon. Friend care to comment on whether that is the right starting point for regional news coverage, or whether we might want to do something more local and perhaps better?

[Tom Rutland]

I agree that it is a shame that some regional political and news programming is being filmed further away than before. Of course, I am not able to answer directly for those decisions by the BBC, but the 30% funding decrease that I mentioned may explain the reasoning behind them. It is a shame that we find ourselves in this position; it underlines the importance of finding a funding settlement and model that will allow regional programming and truly local programming to be safeguarded as much as possible.

As I was saying, the BBC provides fearless coverage in our neighbourhoods—sometimes a little further away than previously—and in Westminster and abroad. It invests in creative talent and programming across every corner of our great country. That is something worth fighting for in a world of media fragmentation. I hope all colleagues will support my push for a future funding model that ensures that the BBC lasts for another century.

--- Later in debate ---

[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.