Question to the Department for Digital, Culture, Media & Sport:

To ask Her Majesty's Government what assessment they have made of whether the BBC’s use of licence fee revenue to produce online news services, which compete with commercial publishers, is compatible with (1) the BBC Charter, and (2) legal constraints on the use of public funds.

Under the Royal Charter, the BBC has an obligation to provide impartial news and information to help people understand and engage with the world around them. The Charter requires the BBC public services to promote its Mission and Public Purposes, including the provision of news in the UK through “online services”; it therefore allows for the use of licence fee revenue for online news services. In doing so, the BBC is required to have particular regard to the effects of its activities on competition in the UK and to seek to avoid adverse impacts on competition which are not necessary for the effective fulfilment of the Mission and the promotion of the Public Purposes.

Her Majesty’s Government carefully considered the BBC's market impact as part of Charter Review in 2015/16, and designated Ofcom as the BBC regulator to ensure the BBC is robustly held to account on its competitive impact.

The Government also committed the independent Cairncross Review into the future of journalism. This was published in 2019, and urged the BBC to think more carefully about how its news provision can act as a complement to, rather than a substitute for, commercial news.

The Charter Mid-Term Review will look at the BBC’s market impact, evaluating how the BBC and Ofcom assess the market impact and public value of the BBC in an evolving marketplace and how that relates to the wider UK media ecology, including with regard to commercial radio and local news sectors and other content makers and distributors.