BBC Funding

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The shadow secretary challenges the Minister on the implications of a two-year licence fee freeze for BBC output and commissioning. She also questions how distinct broadcasting in Wales, Scotland, and Northern Ireland will be maintained without a licence fee.

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Powell criticised the Minister's decision to freeze the licence fee, questioning its timing and motives. She highlighted that the £13.57 monthly cost of the licence fee is trivial compared to other financial pressures faced by families. She also questioned the impact on local journalism and creative industries, and raised concerns about BBC World Service, educational programming for children, and impartiality.

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Bottomley expressed dissatisfaction with the process and proposal, questioning why this is the only area where increases are not considered during tough economic times. He suggested a moderated increase linked to inflation and raised concerns about public broadcasting's future without subscription or state funding.

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Nicolson criticised the Minister's timing and motives for the announcement, questioning the sincerity behind claims to protect pensioners from court cases. He highlighted that pensioners would struggle with alternative subscription models and accused the government of a visceral loathing towards BBC critics.

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Knight welcomed the freeze and sought clarification on whether the licence fee would be phased out in 2028. He also questioned how alternative funding models would work given broadband coverage issues.

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Will the Secretary of State say what impact assessment she has done of the impact that the change will have on households if fees were increased? What will be the impact on services provided by the BBC as a consequence of these freezes to its income, on top of the 31% that it has had cut from its income over the past 10 years?

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Like many of the best things in this country, the BBC licence fee may not work in theory but works really well in practice. There are many alternative ways of funding it, but as the DCMS Committee concluded last year, the Government either need to support the current model for at least the next Charter period (2028-2038) or come out with a strong alternative.

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We abolished the radio licence fee in 1979 and moved to a TV licence fee, so I am not against moving towards an internet licence fee or something like it. But we need to know the details, the thresholds and the amount of money that would be raised. Does the Secretary of State accept that her announcement that this would be the last licence fee, without going through the consultation first, was reckless?

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The Select Committee report acknowledges that the Government will need to act to ensure that the public service broadcasting system remains sustainable. Given that the Select Committee report is also clear that the Government need a credible view on what any alternative to the licence fee might be and on what their vision is for the future of public service broadcasting, what are my right hon. Friend’s instincts as she kicks off this welcome national debate?

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Despite the fact that the removal of the free licence for the over-75s was a result of her own party’s actions, the Secretary of State’s tweet yesterday indicated that her attack on the BBC was due to the over-75s being threatened with prison sentences and bailiffs knocking on their doors. Yet less than two weeks ago, she told this House that no enforcement action has been taken against anyone over 75 years of age.

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I accept the need to freeze the licence fee. However, the conversation over the future of the licence fee is far from over. What steps will the Secretary of State take to protect the BBC’s local services before the knives are sharpened within the BBC?

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Growing up, my cousins overseas always told me that they listened to the BBC when they wanted to know the truth. Will she tell all of us where exactly the change was in the Conservative manifesto? Already, people are seeing it as just a distraction for party gain.

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My right hon. Friend must be right that the BBC cannot stand still while the rest of the world moves along, but does she accept that when we think about the future funding of the BBC, we have to consider both the content that is marketable and commercially successful, and the content that is not?

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Could I just say to the Secretary of State that I wish I had the level of broadband coverage that she talks about in my constituency? When I was a councillor—a member of the Highland Council—I had to be very careful of the BBC, because its reporting of all I said and did was thorough. Can I ask the Secretary of State how she intends to make sure that we do not lose out on that front?

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My right hon. Friend will be aware that last year, the number of TV licences purchased fell by 700,000, and more young people are now saying they do not need to watch the BBC because of streaming services. Does she agree that we will still need public service broadcasting and therefore it is right to have a debate about the future funding model?

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Many of us find it nauseating that the Secretary of State has come here to talk about hard-pressed families when she supported the £20 cut to universal credit. Could we test how much she considered some of these factors? How much more money is generated by the investment in the BBC?

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The MP asks if the Secretary of State agrees that reform is necessary for the BBC to thrive in the digital age, considering changes in viewing habits and declining licence fee payers.

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Welcoming the Secretary of State's readiness to tackle issues such as the licence fee and broadcasting bias, Sammy Wilson urges her not to back down on these matters.

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Asks if the licence fee should be decriminalised and treated like any other household bill.

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Asks about guarantees for the BBC’s world-class salaried orchestras and their economic impact.

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Asks if S4C will improve transparency and publish invoices over £500.

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Asks if £159 a year is value for money given current inflationary pressures.

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Welcomes the statement on freezing licence fees for two years, asking about protecting radio programmes.

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Asks for assurances regarding the future of BBC World Service given its importance.

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Requests protection for education services provided by the BBC in discussions on future funding.

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Claims today's announcement shows contempt for British institutions.

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Thanks the Secretary of State for making a statement and offers support on abolishing the licence fee.

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Asks about the timing and process of deciding on freezing the licence fee.

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Asks about discussions on content reduction due to the decision made today.

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Asks about the impact of the statement on BBC employees and its implications for future licence fees.

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In a globalised media landscape, is it daft to suggest that people will have to pay for the whole lot from BBC services starting in 2028?

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Does the Secretary of State recognise the BBC’s crucial investigative role, especially in uncovering issues like the cladding scandal? Will her proposals cut funding for these programmes?

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In rural areas with poor broadband connectivity, can we ensure that reforms will not be implemented until everyone can stream content?

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Does the Secretary of State accept that her proposals put at risk jobs and opportunities in Cardiff's creative economy, including those in deprived communities?

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How does today’s announcement impact on the timescale for announcements about Channel 4’s future, especially concerning its new headquarters in Yorkshire?

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Does the Secretary of State rule out undermining or sacrificing the BBC in order to save the Prime Minister’s political skin?

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What discussions is she having with the BBC to ensure that the licence fee can achieve value for money during this freeze?

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Does today’s announcement make it more or less likely that the BBC will play “God Save the Queen” more often? Will slashing its funding strengthen or weaken the glue holding the Union together?

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What objectives or processes might my right hon. Friend have in mind to ensure that the quality of the output where the BBC is world-leading remains intact?

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Is the attack on the BBC motivated by an inability to stand a successful British public sector institution?

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Does she agree that any new long-term model of funding for the BBC will need to take into account possible implications and repercussions for commercial public service broadcasters relying on advertising?

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How can real-terms cuts to the BBC settlement not see a reduction in its important contribution to Welsh language services?

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We have to accept that the media landscape, and importantly its use, has changed beyond recognition over the past few years, so I agree with Lord Grade, the former chair of the BBC, that a universal regressive tax to pay for a BBC that is no longer universally used is no longer defensible. Does my right hon. Friend agree that the BBC, now and in future, has a vital role to play in creating a version of our common truth at home and abroad?

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I am British and proud of it, and I am proud of the BBC. It reaches 468 million people in 42 languages around the world every week. It is the envy of the world. Cutting funding to the BBC and the World Service already leaves the path clear for Russian and Chinese influence in those countries. Does the Secretary of State agree that only an unpatriotic party would cut the real-terms funding of that national treasure?

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The people of Stoke-on-Trent North, Kidsgrove and Talke want the licence fee to be scrapped. When I had 3,000 respondents to a survey, 96% of them agreed with that. They feel that the BBC spoke down to them when they voted for Brexit and that it is out of touch with the people and values of Stoke-on-Trent North, Kidsgrove and Talke. It is time for the BBC, like the Labour party, to get out of the metropolitan bubble and spend some time in Stoke-on-Trent in order to understand what people think. It is welcome that my right hon. Friend has frozen the licence fee and opened the conversation, but does she agree that it is time to scrap the licence fee altogether?

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I wish the Secretary of State would stop with the crocodile tears about the cost-of-living crisis, because £159 is a lot of money, particularly for my constituents, but it happens to be exactly the same amount, on average, as they will pay in extra national insurance from April this year. If the Government really cared about the cost-of-living crisis, they could do something about that. My real fear is that she simply does not understand how intrinsic to the nature of the BBC and its success around the world the licence fee is. It means that there is something for everybody—for all my constituents—including the poorest constituents, who cannot afford Sky. She says that the BBC gets lots of money, but Sky got five times as much money this year, and its revenues this year increased by 18.9%. Yes, this is an unpatriotic move to dismantle one of the greatest British treasures.

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I praise the Secretary of State for helping to tackle the rising cost of living for many families at a difficult time. Does she agree that since they are having to tighten their belts, perhaps the BBC should do the same? A good place to start might be with salaries, including that of one of its presenters, who earns £1.36 million a year.

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Last Wednesday, at Prime Minister’s questions, the Prime Minister was challenged about the future of the licence fee. He seemed to caution against this by referring to the BBC as a “great national institution”, yet by the weekend the Secretary of State was tweeting that this would be the last licence fee agreement. Will she explain to the House what on earth has been going on in No. 10 since Wednesday that has led to what appears to be a screeching U-turn?

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I commend my right hon. Friend for freezing the licence fee and launching an inquiry into its future. Will she confirm that, first, impartiality and the licence fee are different issues? Secondly, if Netflix can go from one twentieth the size of the BBC to eight times its size in just 20 years, is there not plenty of scope for creative thinking? Thirdly, will she encourage the leadership of the BBC to respond positively, and not with the defeatist and backward-looking attitude of the Labour party?

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I am very proud of the BBC—it is the best of British, and it is recognised and respected around the world. It is also the best of value. Its fee works out as two thirds of the price of a pint of milk per day—I happen to know the price of a pint of milk. Is the simple truth not that the Prime Minister, unlike previous Prime Ministers such as Margaret Thatcher and many others, is frightened of the BBC and of being scrutinised? Margaret Thatcher actually phoned in to Radio 4’s “Today” programme. This Prime Minister would prefer to hide in the fridge.

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On the Conservative side we have a proud history with S4C. Today is another important step forward. I thank the Secretary of State for putting S4C at the core of her statement, and for the £7.5 million increase per annum. Could I draw her into a meeting with me and likeminded colleagues about the Welsh language, and the fact that core public service broadcasters have nurtured it and helped it grow, such as S4C and BBC Radio Cymru?

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The family in Cumbria that the Secretary of State talked about, who were streaming five different movies in five different rooms, are probably paying a minimum of £43 a month for Netflix, Sky and broadband. That does not include the social value that the BBC provides, from educating youngsters through CBeebies and CBBC, to the company it provides for those suffering from loneliness, along with the innovation of BBC iPlayer and BBC Sounds. Will she assure me that this freeze will not diminish the vital services that the BBC provides?

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When the BBC came before the Public Accounts Committee, it was striking how unambitious its target was for growing commercial revenues, which represent just 6% of its current income. Will this welcome decision, including the increase in the borrowing limit, which the BBC asked for, come with a requirement for the BBC to increase that income rapidly and reduce the burden of the licence tax?

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We have already seen the loss of hundreds of jobs of BBC journalists involved in the much-valued regional news and current affairs programming, including the excellent “Inside Out” programme. Before making the decision to freeze the fee, what assessment did the Secretary of State make of the impact on local and regional news programming?

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Acknowledging the value of the BBC but welcoming the licence fee review, Fletcher asks if it is important to ensure that future funding models cater for viewers like her in future generations.

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Expressing concern over the post-2020 situation for S4C and Radio Cymru in Wales, Edwards asks if there will be a full consultation with Welsh stakeholders.

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Welcoming the freeze in licence fees and advocating for a discussion about de-linking the requirement of paying for BBC content to watch other content, Smith queries Dorries' opinion.

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Inquiring if allowing advertisements on BBC could be a funding option and questioning potential risks to balanced factual reporting.