Government opens review into future of BBC

The government has today unveiled the first stages in the process of setting out a new Royal Charter to define the future constitution of the BBC.

John Whittingdale MP, the Secretary of State for Culture, Media and Sport, released a consultation Green Paper on Thursday (16 July) outlining four broad issues now up for public and industry discussion over the next 12 weeks.

The review will assess the way the BBC is funded, its current scale, governance and purpose.

“The BBC is at the very heart of Britain,” Whittingdale said. “It is one of this nation’s most treasured institutions – playing a role in almost all of our lives.”

However, Whittingdale said that 10 years ago, the last time the government ran a Charter Review, the media landscape looked very different.

“The BBC has adapted to this changing landscape, and remains much-loved by audiences, a valuable engine of growth and an international benchmark for television, radio, online and journalism,” he said.

“However, we need to ask some hard questions during this Charter Review. Questions about what the BBC should be trying to achieve in an age where consumer choice is now far more extensive than it has been, what its scale and scope should be in the light of those aims, how far it affects others in television, radio and online, and what the right structures are for its governance and regulation.”

The current BBC Charter is due to expire at the end of 2016 and the government has said it wants to make sure the BBC “remains a valued public broadcaster” as it sets out the topics for debate.

The consultation paper looks at whether these purposes are still relevant, and in the context of recent challenges the organisation has faced, if there should be more direction set about how the BBC works by defining its values in the next Charter.

Referring to the £140.50 per year licence fee, the paper states it has remained “a very resilient form of funding,” but in 2015 looks “regressive” and does not account for the way in which people now access content online.

The government says it has already committed to dealing with this problem and the Charter Review will allow it to look at how to modernise the current system.

The paper goes on to state that a subscription model could be an option for funding of the BBC in the long-term, but that current technologies do not allow it in the short term.

An updated licence fee, household levy or a hybrid model will be considered in the interim.

Of the BBC’s governance and accountability, Whittingdale said the BBC Trust, which was established under the current charter and exists to represent licence fee payers and hold the BBC to account, had, at times, allowed the BBC has to fall “well short of the standards that the public expect of it”, such as the Digital Media Initiative, the failed £100m technology project which exposed governance issues at the BBC.

“There are three broad alternative options,” he said. “To reform the Trust model, create a unitary board and a new standalone oversight body or move external regulation wholesale to Ofcom.

Over the next 12 weeks, the government is seeking views on these models and the wider issues of how the BBC’s transparency and accountability can be improved.

The paper also appears to confirm plans to privatise BBC Worldwide, stating: “[The] Charter Review will consider the full range of options for reforming the BBC’s commercial operations, including full or part privatisation of Worldwide.”

Whittingdale added: “This publication is an important first step in an open and thorough Charter Review. It sets out the issues and some of the options for change. I want it to stimulate a national debate over the coming months as we map out the future for our BBC.”

Responding to today’s announcement, the BBC said in statement that the Corporation is a “creative and economic powerhouse” for Britain.

“The starting point for any debate should be – how can a strong BBC benefit Britain even more at home and abroad? The BBC has embraced change in the past and will continue to do so in the future, and we will set out our own proposals in September.

“We believe that this Green Paper would appear to herald a much diminished, less popular BBC. That would be bad for Britain and would not be the BBC that the public has known and loved for over 90 years.

“It is important that we hear what the public want. It should be for the public to decide whether programmes like Strictly or Bake Off, or stations like Radio One or Two, should continue.”

The statement added that the BBC is not owned by its staff or by politicians, but rather it is owned by the public. “They are our shareholders,” it said. “They pay the licence fee. Their voice should be heard the loudest.”

BBC Trust Chairman Rona Fairhead added: “The Green Paper recognises the enormous contribution that the BBC makes to the UK, and all the Trust’s analysis and audience feedback over the past eight years has underlined the value that it brings to people across the country.

“Of course there are also big questions to ask about the future of the BBC, but the debate must not be a narrow one and the clearest voice in it must that of the public. We will carry out our own research and consultation to make sure of that, and we welcome the government’s statement that they will work with us and will take full account of our findings.”

To support the Charter Review, the government has appointed a group of experts from across a range of industries and backgrounds. Its remit will be to provide expertise, challenge and advice during the Charter Review process.

The public and industry can access the consultation paper, including an online response form here. The consultation will last for 12 weeks, from 16 July to 8 October 2015. The government will then bring forward proposals based on this consultation in the Spring 2016.