"Meanwhile, the DCMS said it was scrapping a review of the BBC's funding model that was set up by the previous government, and is disbanding its expert panel. Instead, the government will examine the issue of BBC funding as part of the charter review process, before the BBC's current royal charter expires in 2027."
Of course it's long been apparent that technological changes having dramatically changed the broadcasting and hence consuming landscape, the legally-enforced TV licence method of funding Public Service Broadcasting in the form of the BBC was fast becoming unsustainable. However, I think many can breathe a sigh of relief that it doesn't fall to a Conservative government to be making the key decisions.
Interestingly, the BBC Chair, Samir Shah CBE, made a wide-ranging and significant speech recently 'A Very British Success Story: The PSBs at the heart of UK creativity' that not only covered the whole PSB landscape, but also crucially Charter Review and the funding model. He made the point that not only had the BBC been forced to make painful cuts due to the licence fee being frozen, but had also been required to take on increased responsibilities such as the funding of the World Service and free licences for the over 75's. He might also have mentioned the funding of the Local Democracy Reporting Service and broadband roll out to rural areas.Not surprisingly the effect on the BBC has been dramatic with massive cuts to the local radio network last year, together with the World TV Service and more recently the reduction of journalists affecting Newsnight and now Hardtalk and news provision generally. Interestingly, this recent article 'Elite Paywalls or Social Media Misinformation: The Alarming Future of ‘Two Tier’ Journalism' by Bylinetimes highlights the dangers:-
The UK is facing a “grim” world of “two tier” journalism, in which access to high-quality information is reserved for the few, with increasing numbers relying solely on dangerously unreliable online sources for their news, according to a new Parliamentary report.
The Lords Communications and Digital Select Committee, in a report on “the future of news” suggest that current trends in the industry such as the worsening economics of mass market journalism, low trust among the public and a growing number of people actively avoiding mainstream reporting is contributing to this malaise.
It states starkly that “There is a realistic possibility of the UK’s news environment fracturing irreparably along social, regional and economic lines within the next 5–10 years. The implications for our society and democracy would be grim.”
It adds, having taken evidence from a wide range of people, including national newspapers and group owners, national broadcasters, academics, think tanks and tech giants on a visit to San Francisco, “The period of having informed citizens with a shared understanding of facts is not inevitable and may not endure.”The article spells out many of the behavioural changes going on:-
It warns that use of AI tools is about to make matters even worse since it will give more power to the tech giants to create “engaging news summaries giving them unprecedented influence over the type of news we see”.
Statistics in the report on where people get their news backed up the change in the last five years. BBC's flagship BBC1 channel saw a decline from 58% to 43% between 2019 and this year, ITV were down from 40% to 30% and Channel Four was down from 17% to 14%. The Daily Mail and Mail on Sunday was down from 18% to 13%, the Guardian and Observer was stable at about 10%. Increasingly people were getting their news from the internet with YouTube going from six per cent to 19%, TikTok from 0% to 11% and Instagram from 13% to 18%. Only Twitter, now X under Elon Musk, showed a slight fall having previously risen from 16% to 17%, it has now fallen back to 15%, lower than in 2019.
Returning to Samir Shah's speech, it will be noted that he has effectively started Charter Renewal discussions by suggesting that it's time to ditch the routine of having the BBC's very existence under continuous review (there are midterm reviews) and instead enshrine its status in law. I suppose the subtext is trying to remove political interference, but that of course fundamentally means sorting out funding.
At this point I should declare that I thought I had got the answer. Seeing that technological change means that it's only a matter of time before terrestrial broadcasting will cease, along with the Public Telephone Service, all to be replaced with broadband distribution, you simply ask the Internet Service Provider to collect a tax. There, sorted! Why had nobody thought of this? Well it turns out they had of course and the idea was casually floated by the BBC four years ago, not surprisingly to be met with right-wing fury from the likes of the Taxpayers Alliance and Daily Mail.
It is the answer though for a number of reasons:-- Cheap to collect
- Difficult to avoid
- De-criminalisation
- Individual not property based
- Easy to apply age, disability or income discounts
- Could help fund all PSB's eg Ch4
- Maintains concept of 'universality'