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BBC Trust calls for royal charters to last for 11 years BBC Trust: licence fee should not be replaced by subscription
(about 1 hour later)
The BBC Trust has called for the corporation’s royal charter to be extended to 11 years with legally enforceable scrutiny of future funding deals following controversy over the BBC’s latest backroom funding settlement. The BBC Trust has rejected calls for the BBC to be funded by subscription, saying the corporation had to “aim to provide something for everyone”.
The trust said the BBC needed “clear boundaries and independent regulation” and rejected culture secretary John Whittingdale’s suggestion that it should focus on a more narrow range of services, saying it had to “aim to provide something for everyone”. It said the BBC needed “clear boundaries and independent regulation” and proposed that its royal charter should be extended to 11 years with MPs given the right to vote on any future funding deal.
The trust also called time on its own future by saying the BBC should be regulated by a body completely separate from the corporation, a proposal first outlined by trust chair Rona Fairhead in March.
It made the comments in response to the government’s green paper on the future of the BBC last week and the BBC’s latest backroom funding settlement, in which it took on the £750m cost of free TV licence fees for over-75s.
The trust described the deal as “regrettable” and rejected culture secretary John Whittingdale’s suggestion that it should focus on a more narrow range of services.
It said it was “concerned” that the government’s green paper “questions the principle of universality and raises the prospect in the long term of a move to a subscription-funded model. We do not support the idea of subscription funding”.
The Trust also said the green paper raised the prospect of “increased government involvement in the BBC’s internal funding allocations. We think the BBC needs to be more independent, not less, in its financial management.”
“The experience of the recent budget settlement, where major funding decisions were again made behind closed doors without any public debate, was regrettable,” it said.
“It has served to give an impression that the BBC is another part of Whitehall - which it is not.”
An 11-year charter would remove the future of the BBC from the general election cycle, while guaranteed public and parliamentary scrutiny of its funding would prevent another shotgun deal that has characterised the last two settlements.An 11-year charter would remove the future of the BBC from the general election cycle, while guaranteed public and parliamentary scrutiny of its funding would prevent another shotgun deal that has characterised the last two settlements.
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The trust made the comments on Wednesday in its response to the government’s green paper on the future of the BBC, and launched a wide-ranging public consultation as part of the charter renewal process, which is expected to see the trust’s abolition. The trust has launched a wide-ranging public consultation as part of the charter renewal process, which is expected to see the trust’s abolition.
Trust chair Rona Fairhead said: “Charter review will ultimately decide what kind of programmes and services audiences get for the BBC they pay for, so the most important voice in the debate is that of the public and we’ll ensure it is heard.Trust chair Rona Fairhead said: “Charter review will ultimately decide what kind of programmes and services audiences get for the BBC they pay for, so the most important voice in the debate is that of the public and we’ll ensure it is heard.
“We welcome the government’s recognition of the importance of the BBC and the value that it brings – that value is built on its providing something for everyone and its independence, which we know audiences support.”“We welcome the government’s recognition of the importance of the BBC and the value that it brings – that value is built on its providing something for everyone and its independence, which we know audiences support.”
The trust said in its statement that the BBC should “remain a universal and independent broadcaster, which aims to provide something for everyone” and said this was “widely supported by the BBC’s audiences”.The trust said in its statement that the BBC should “remain a universal and independent broadcaster, which aims to provide something for everyone” and said this was “widely supported by the BBC’s audiences”.
Related: George Osborne forces BBC to pay for over-75s' TV licencesRelated: George Osborne forces BBC to pay for over-75s' TV licences
Whittingdale, unveiling the green paper last Thursday, questioned whether the BBC should continue to strive to be “all things to all people” and said the time was right to question “whether this particular range of services best serves licence fee payers”.Whittingdale, unveiling the green paper last Thursday, questioned whether the BBC should continue to strive to be “all things to all people” and said the time was right to question “whether this particular range of services best serves licence fee payers”.
The comments focused attention on BBC1’s mainstream entertainment offerings such as Strictly Come Dancing and The Voice, as well as Radio 1 and Radio 2, which were also singled out in the report.The comments focused attention on BBC1’s mainstream entertainment offerings such as Strictly Come Dancing and The Voice, as well as Radio 1 and Radio 2, which were also singled out in the report.
The trust said there should be “clear boundaries” around the government’s involvement in the BBC in the future and said a number of measures should be considered, including an 11-year charter to provide more time between fixed date general elections and the end of the next charter.The trust said there should be “clear boundaries” around the government’s involvement in the BBC in the future and said a number of measures should be considered, including an 11-year charter to provide more time between fixed date general elections and the end of the next charter.
It also called for a legal obligation in the next charter requiring a public consultation and parliamentary approval of changes to funding.It also called for a legal obligation in the next charter requiring a public consultation and parliamentary approval of changes to funding.
Fairhead has criticised the latest funding deal, announced on 6 July, which saw the BBC take on the £750m cost of free licence fees for the over-75s after four days of intense negotiations between the corporation and the government. Fairhead has previously criticised the latest funding deal, announced on 6 July, which saw the BBC take on the £750m cost of free licence fees for the over-75s after four days of intense negotiations between the corporation and the government.
In return, the corporation negotiated a number of concessions but the most important, an inflation-linked licence fee, is dependent on the outcome of the charter review process, which must be completed by the end of next year.In return, the corporation negotiated a number of concessions but the most important, an inflation-linked licence fee, is dependent on the outcome of the charter review process, which must be completed by the end of next year.
Fairhead said: “We accept this decision is a legitimate one for the government to take, although we cannot endorse the process by which it has been reached. The executive are clear that the necessary savings … will inevitably have some impact on the nature of the BBC’s services.” The trust is expected to be axed as part of the review process, with the green paper outlining three possible options including regulation going to either Ofcom or a new regulatory body, dubbed “OfBeeb”.
The trust is expected to be axed as part of the review process, with the green paper outlining three possible options, two of them are an expanded BBC board with regulation going to either Ofcom or a new body, dubbed “OfBeeb”.
Reform of the trust was also included as an option, but the green paper said it was “clear that there is a case for more radical change”. Fairhead herself has called for an end to the current system of regulation in a speech earlier this year.