MPs Call for BBC Funding Overhaul to Avoid ‘Managed Decline’

MPs have called for a major overhaul of the BBC’s funding and governance, arguing that reform is needed to secure the broadcaster’s long-term future as audiences and viewing habits continue to change. The recommendations come ahead of the next BBC Royal Charter, which will set out the corporation’s funding and governance arrangements from 2028.

The Digital, Culture, Media and Sport Committee has recommended retaining universal funding for the BBC, but reforming the television licence fee so that it is no longer linked to watching live television or owning a particular device. MPs suggest that broadening the funding base could be combined with a lower individual cost.

The committee also wants the BBC to become leaner and make more efficient use of its resources. It recommends that the corporation spend more carefully when competing for programming and explore new ways to generate revenue, while continuing to support the UK’s creative economy.

Another recommendation is for the Government to resume full responsibility for funding the BBC World Service. MPs described the service as an important UK international asset, particularly given its role in providing trusted news and countering misinformation and disinformation. 

The report also proposes changes to how audiences access public service content. These include requiring smart TVs sold in the UK to provide a remote-control shortcut to public service media, giving trusted news greater prominence on social platforms and allowing BBC iPlayer to host programming from other public service broadcasters. 

The committee has further recommended making the next Royal Charter permanent rather than renewing it every ten years, alongside changes to appointments to the BBC Board. MPs argue that this could reduce political involvement and allow the BBC to focus more consistently on its core activities. 

The BBC welcomed the report’s recommendations, saying the current funding model is outdated and that it supports maintaining universal funding while reforming the licence fee. The corporation said it would consider the proposals as discussions continue with Government over the next Charter.