The BBC has published its response to the government consultation on the review of its charter. A BBC for All highlights the need for radical reforms to its independence, its ability to respond to the changing needs of audiences and, crucially, more sustainable, universal funding. Although the BBC has previously defended the licence fee as a form of funding, it now seems to be signalling it is open to other options.
The BBC says the current funding model cannot maintain its public service mission for the future. It is also calling on the UK Government to take back full funding of the BBC World Service.
It argues that a Charter Review that simply preserves the status quo will not be enough to deliver a BBC that remains recognisable to audiences nor brings benefits to UK society and beyond.
“The BBC is a vital national asset,” writes BBC chair Samir Shah. “A shared investment in the UK’s culture, communities, and democracy. It supports world-leading creative industries and drives economic growth, as well as promoting the UK’s interests and influence abroad. But it is also at risk like never before and this Charter must deliver reform. In a fast-changing and challenging world, the BBC is needed more than ever.”
The BBC argues that it is unique in having a charter that expires every decade and this fixed end-date which threatens its right to exist should be removed.
The BBC also says that the new Charter must reflect the realities of fierce global competition and rapid technological change with a lighter, more growth-focused regulatory framework.
On the question of the licence fee, the BBC says: “We strongly agree that the licence fee should continue to fund a wide range of services that inform, educate, and entertain”. However, it adds: “Without reform to our funding model, the BBC will no longer be able to maintain this breadth in the future or operate as a UK owned asset, competing with global platforms.”
The proposed solution to this is that more people should pay. It says: “Licence fee income has fallen sharply in real terms as fewer households pay despite continuing to access BBC content. A reformed model that requires more households to contribute at a lower cost could strengthen fairness and sustainability while preserving universal access to high-quality, trusted services.”
The response to the consultation questions concludes: “The BBC’s current funding model is unsustainable and requires reform. While almost all households use BBC services, many no longer contribute, creating an unfair and unstable system that undermines a universal public service. In a fragmented, globally dominated media landscape, universal funding is vital to protect independence, shared civic space and public trust. We are open to new funding models, provided they are fair, sustainable and futureproof, ensuring the BBC remains a service for everyone.”
The full response to the government green paper on its charter review is published on the BBC web site as A BBC For All.