BBC told to slash TV licence fee from £180 per year in major overhaul

BBC told to slash TV licence fee from £180 per year in major overhaul The recommendations were outlined in a new report from the Digital, Culture, Media and Sport Committee (DCMS) - Bookmark - CommentsGo to comments Become an Independent member to bookmark this article Already a member? Log in The Digital, Culture, Media and Sport Committee (DCMS) says the BBC should extend the licence fee to cover services beyond TV and reduce the cost from £180 per year. The report, which featured the recommendations, comes ahead of the government finalising its proposals for the next BBC royal charter later this year, which will set out how the corporation will be governed, regulated and funded from 2028 onwards. In its recommendations, the DCMS said the BBC needed to be more independent from political interference and consider appointing its chair independently. The report read: “The fact that the BBC’s existence is called into question every 10 years creates an avoidable opportunity for political interference which has damaged the perception of the BBC’s independence. “It also creates a disproportionate distraction for the BBC when it needs to be focused on its mission to inform, educate and entertain. We therefore recommend the next BBC charter be a permanent charter and not include an end date.” When making recommendations about the licence fee, the DCMS said its current model was “outdated and no longer fit for purpose”, and also suggested that the BBC reduce the cost from its current price of £180 per year. It said that a household levy, which would see homes forced to pay the licence fee regardless of whether they used the corporation’s services and that has been mooted as a possible solution to BBC funding issues, would be difficult to introduce. The report read: “The best next step is for the government to reform the licence fee, so it reflects modern media consumption and is no longer linked to a television set. “This would be an easier sell to licence fee payers if expanding the base is paired with a drop in the individual cost. “There are strong arguments for a household levy, but it would be a difficult model to introduce in the short-term given the significant implementation challenges. “Nevertheless, the government should not have ruled out this option entirely.” The DCMS also suggested that the BBC develops an international TV licence so that it can “maximise the potential global audience and increase its revenue”. The report said that BBC director-general Matt Brittin had told the committee that the corporation had lost around £1.2 billion to £1.3 billion of licence fee funding over the last decade and that 40 per cent of this was due to fewer households paying. It also said the BBC had told it that while 94 per cent of households were using the BBC, only 80 per cent were paying for it. Elsewhere, the DCMS recommended that the BBC “should not be paying over the odds for overseas content” in a bid to attract younger viewers and said the government should “take back full funding for the BBC World Service with a view to maximising its potential”. Members of the DCMS said they “strongly support” the BBC opening up the iPlayer to content from other public service broadcasters such as Channel 4, saying it would “benefit audiences and the industry in the long term”. The DCMS also supported the BBC making original content for YouTube. It also said the BBC should be given “an additional responsibility to counter misinformation and disinformation” in the charter review. Dame Caroline Dinenage, chairwoman of the DCMS, said: “This is a pivotal moment for the BBC. Continue along the current path and we condemn a national institution to managed decline, squandering the immeasurable benefits it brings to our economy and society. “For all its faults, the BBC drives our creative economy, supports our democracy through media sovereignty and delivers world-class entertainment and moments that bring us together. “Like a much-loved family member, we may criticise and grumble about the BBC but we would miss it enormously if it were no longer here for us. “The next charter can provide a springboard for the BBC’s success for years to come. “The government must ensure the broadcaster has a sustainable and universal source of funding. “The BBC can play its part by sweating its assets and boxing clever for the licence payer by ending illogical practices such as outbidding commercial rivals for overseas hits such as Suits, Schitt’s Creek and Scooby Doo. “Now is the time for the government and BBC together to grasp the opportunity to create a leaner, more efficient broadcaster that is equipped to compete on the global stage and is a beacon of trust both at home and abroad.” A BBC spokesperson said the corporation welcomed the report, which they said “makes some important and interesting recommendations on the future of the BBC”. They said: “We have consistently argued that the current funding model is outdated and needs reform, so we welcome the committee’s support for maintaining universal funding while overhauling the licence fee. “We are also pleased to see their recognition of the vital work of the World Service, with a clear recommendation that responsibility for funding should return fully to government. “At a time of huge disruption in the media, the BBC’s trust, reach and creative strength remain unparalleled. “But we also recognise the need to evolve and move faster towards the future. “We will reflect on the committee’s report and continue to engage with the Government to secure a BBC that delivers for everyone for generations to come.” Join our commenting forum Join thought-provoking conversations, follow other Independent readers and see their replies Comments