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BBC Funding
07 December 2023
Lead MP
Lucy Frazer
Debate Type
Ministerial Statement
Tags
Culture, Media & Sport
Other Contributors: 16
At a Glance
Lucy Frazer raised concerns about bbc funding in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
The BBC is a vital British institution, broadcasting cultural values and identities globally. In January 2022, the Government agreed to a six-year funding settlement with the BBC, freezing the £159 licence fee for two years. This freeze saved every fee payer £17 over 2022-23. The agreement provided financial stability during high inflation periods. However, starting April 2024, the licence fee will increase annually in line with the consumer prices index (CPI), currently set at a rise of 6.7%, resulting in an annual cost of £169.50. This decision aims to minimise costs for households and provides the BBC with £3.8 billion for its content production, while also supporting S4C. Despite these efforts, the number of licence fee payers is declining due to a competitive media landscape and changing viewing habits, leading to a review of the funding model to ensure fairness and sustainability.
Bristol West
Question
Does the Secretary of State have figures on the economic impact of choosing one particular inflationary measure over another, and how will this affect jobs in the creative industries?
Minister reply
The Government understands that decisions impact various sectors. While we aim to balance household costs with BBC sustainability, we are committed to exploring commercial opportunities for the broadcaster. The review panel will assess long-term funding models carefully.
Bristol West
Question
Debbonaire questioned the Government’s announcement, stating it adds only £0.33 per household monthly, which is insufficient to address the cost of living crisis. She criticised the Secretary of State for failing to consider impacts on jobs and economic growth due to changes in BBC funding.
Minister reply
The Minister responded by asserting that Labour's proposals would harm the BBC and fail to protect licence fee payers. The Government has spent £97 billion supporting families, reducing inflation by half. Additionally, they have provided tax reliefs for the creative industries year on year for a decade.
Peter Bottomley
Con
Worthing West
Question
Bottomley expressed concern over Parliament's role in decision-making regarding the BBC and suggested alternative funding models beyond the current licence fee. He called for more frequent consultations with Parliament on such matters.
Minister reply
The Minister acknowledged that discussions about BBC's future must occur within this changing media landscape while ensuring its public service remains intact. The review will include wider consultation exercises.
John Nicolson
SNP
Nairn, Badenoch and Strathspey
Question
Nicolson criticised the Government for breaching agreements and managing the economy poorly which led to this BBC uplift. He highlighted the importance of pluralistic media and tough journalism provided by the BBC, contrasting it with GB News' biased coverage.
Minister reply
The Minister confirmed that plurality of voices is crucial in media. The preferred candidate as chair will be announced soon and will appear before relevant committees.
Martin Vickers
Con
Brigg and Immingham
Question
Vickers asked for assurance regarding the continuation of regional news broadcasts, valued by his constituents.
Minister reply
The Minister replied that although operational independence lies with the BBC, it must uphold its public service purpose including reflecting diverse communities. Regional news and other output are an important part of this.
Hayes and Harlington
Question
May I ask the Secretary of State to get real? The loss of journalistic jobs as a result of this cut is inevitable, especially during an election year when journalists are desperately needed. Why does she not admit that this is a revenge attack for the BBC’s holding this Government to account?
Minister reply
I do not accept anything that the right hon. Gentleman has just said. The purpose of the review is to ensure the BBC can continue to provide its exceptional service. We need to support it with a sustainable financial platform.
Question
The quality of broadcasting by the BBC has been excellent, but there is an increasing concern about political bias in recent months, especially from presenters and through inaccuracies in reporting. Does the Secretary of State agree that the BBC needs to do more here?
Minister reply
The heart of my hon. Friend’s question is about the BBC’s impartiality. The BBC strives hard to maintain impartiality with its 10-point plan, but it must continue to strive for impartial output.
Layla Moran
Lib Dem
Oxford West and Abingdon
Question
How does the Secretary of State think that cutting the BBC’s budget by £90 million will help resilience in society during an election year, given the threat from misinformation and disinformation?
Minister reply
We are not cutting the BBC’s budget but increasing it by 6.7%. We need to create a careful balance to support the BBC with this rise while considering the cost of living.
Question
Will the Secretary of State consider how we can increase transparency and scrutiny of the £3.8 billion that is spent by the BBC, so that we can introduce better efficiency gains?
Minister reply
My right hon. Friend makes an interesting point; it will not form part of this review but I will reflect on and consider it further.
Grahame Morris
Lab
Easington
Question
The damaging impact of dramatic cuts by BBC management, including to local radio services and investigative journalist jobs, is concerning. Will the Minister ensure that the BBC has enough funding to maintain high quality in commissioning, production and broadcasting?
Minister reply
I am committed to ensuring our creative industries continue to thrive. The BBC is part of this and I will take it into account.
Question
What further steps is she taking to encourage the BBC to maximise its commercial revenue in order to minimise the burden on licence fee payers?
Minister reply
My hon. Friend makes an important point. I want to see a thriving BBC that can compete internationally and get further income. We will explore many opportunities for it.
Bob Blackman
Con
Harrow East
Question
Can we make sure, as we approach this review, that built into it is the requirement for absolute impartiality and fact-checking of news before posting?
Minister reply
My hon. Friend makes an important point: because the BBC is so respected throughout the world, when it gets it wrong, the impact is more significant than other news outlets.
Jim Shannon
DUP
Strangford
Question
How will the Secretary of State ensure that the tightening that is done relates to paying presenters exorbitant wages, as opposed to cutting niche programming for culture and heritage?
Minister reply
I must emphasise that the BBC is operationally independent. It has a duty to provide diverse news and cultural programmes relevant to the regions.
Question
I welcome the Secretary of State’s statement, and particularly the review of whether the BBC is being fair to taxpayers. I have constituents in Southend and Leigh-on-Sea who do not consider they get value for money from the licence fee, which totals £3.8 billion annually. They are concerned about the BBC's coverage of the conflict between Israel and Hamas, specifically regarding BBC bias stoking anti-Israel sentiment.
Minister reply
I understand my hon. Friend’s concerns about the language used by the BBC in relation to Hamas. I have stated that Hamas is a terrorist organisation both legally and factually. Regarding her constituents’ concerns, she should remind them of formal channels through which they can make their views known. We are looking at impartiality as part of the mid-term review, which will be published shortly. Additionally, I am concerned about the prosecution of people for non-payment of the licence fee.
Greg Smith
Con
Mid Buckinghamshire
Question
I welcome the announcement of a funding model review given the changing media landscape. However, my constituents will be surprised by the BBC’s price increase this year despite delivering less content, such as closing the Oxford newsroom and making severe cuts to Three Counties Radio. Will she lock into the review a mechanism so that if the licence fee remains compulsory for those wishing to have a television, there has to be a consumer test to monitor what viewers actually want?
Minister reply
My hon. Friend raises interesting points about the BBC’s funding model and the need to consider all aspects carefully as we conduct our review. It is important that the BBC provides a great service to the public, which is what the public expects.
Shadow Comment
Thangam Debbonaire
Shadow Comment
The announcement offers minimal relief for struggling households and does not address broader economic challenges such as mortgage rates and job security. The proposed funding changes may harm creative industries and the BBC's global influence, while ignoring public service broadcasting aspects. Labour criticises the Government’s lack of focus on these crucial areas and questions the expertise of the review panel. With 12 DCMS Secretaries in 13 years, this chaos underscores a disregard for institutions like the BBC.
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