BBC licence fee on its way out in funding overhaul
MINISTERS have signalled the end of the BBC television licence fee as they laid out plans to seek a “fair and appropriate” alternative.
A Government White Paper on the future of broadcasting said that the landscape had changed significantly since the licence fee was last reviewed less than a decade ago.
“Technology has revolutionised how, when and where audiences can access and watch content,” the paper stated. “An increasing number of households are choosing not to hold a TV licence, as fewer people choose to watch live TV or other activities that require a licence.
“Should this trend continue as expected there are clear challenges on the horizon to the sustainability of the licence fee.”
The Government said it would look at how other countries fund their public service broadcasters in the review.
It also warned that the BBC must do more to address impartiality, despite the corporation already setting out a 10-point action plan which promises to ensure that a breadth of viewpoints are reflected in its coverage.
The Government said it would also scrutinise Ofcom’s role as regulator of the BBC, and ask if the system needs improvement. Currently, anyone with a complaint against the broadcaster must take it directly to the BBC and can only refer it to Ofcom if they are dissatisfied at the end of the corporation’s process.
The paper added: “The BBC needs to address issues around impartiality and groupthink and to do so it needs to make material and swift progress.
“The Government also wants to see the BBC taking steps to reform over the next six years. This includes taking action to improve its impartiality, which is central to the BBC’S mission and to maintaining trust with audiences… While the action plan is a good start, changes are necessary and they need to be delivered.”
The Government’s mid-term Charter Review will look at how effective the BBC’S governance and regulation is “in enabling progress against our ambitions for greater impartiality, more accountability for its editorial standards including the handling of complaints, and a BBC that represents the breadth of the audience it was established to serve.
“This is not just about how well the BBC is doing – we also want to look at the effectiveness of the framework by which Ofcom holds the BBC to account.”
A BBC spokesman said: “We look forward to engaging with the Government on both the forthcoming mid-term review and then the national debate on the next charter. The White Paper recognises the BBC’S critical role in supporting the UK creative sector and we remain focused on delivering great value for all licence fee payers.”