Source · Select Committees · Culture, Media and Sport Committee
Recommendation 12
12
Paragraph: 65
We recognise the problems associated with the licence fee and, in the annex to this...
Conclusion
We recognise the problems associated with the licence fee and, in the annex to this Report, explore the existing alternatives. None of these are sufficiently attractive to justify recommending, for the next Charter period, that they replace the current 52 The future of public service broadcasting licence fee model, not least given the disruption and expense of doing so and on balance, the licence fee remains the preferred option for that period. The Government either needs to come out with a strong alternative to the licence fee that it can put to Parliament, or strongly support the current model for at least the next Charter period (2028–2038) and actively aid the BBC in driving down evasion.
Paragraph Reference:
65
Government Response
Acknowledged
HM Government
Acknowledged
The Government notes the Committee’s view of the issues surrounding the current licence fee model and its assessment of alternative models. However, we do not agree with the Committee’s assessment and recommendation that a decision on the future of funding for public service broadcasting needs to be made now. The current licence fee model is guaranteed by the Royal Charter until December 2027, and while the Government has no plans to change the model before then, we have been clear that it will be reconsidered again ahead of the next Charter Review, which is set to be completed by 2027. This is because, as we look to the longer term there are more fundamental questions about the correct funding model, shape and structure of the BBC. With intensifying competition from platforms such as Netflix and Amazon, the BBC cannot retreat but must instead be equipped to step up to project British values and distinct quality programming with renewed vigour and ambition as our national champion. In addition, the Government has set up a PSB Advisory Panel to help consider the future for public service broadcasting, and advise ministers on key issues. The Government believes it is right to gather evidence and reflect on the options before coming to a conclusion in the context of a very dynamic media market, and a rapidly developing digital environment. We have a process in place and a clear timeline, and are confident that our approach is the most effective and prudent way to proceed.