How the BBC licence fee could be overhauled

The Commons Culture, Media and Sport Committee has recommended radical reforms of the way the BBC is funded and its size and scope reined in.

A broadcasting levy on all households should replace the licence fee, with additional “subscription” payments a possibility, according to the influential committee of MPs.

In the short-term there is currently no better alternative to the licence fee but as a minimum the licence fee must be amended to cover catch-up television as soon as possible”.

• Commons Culture, Media and Sport Committee report

A loophole currently means people who only watch programmes through catch-up and on-demand services like the iPlayer do not have to pay the £145.50 licence fee.

Other options

• Reduce provision in areas where other broadcasters are better placed to produce excellent results.
• Do more in partnership with others and support local media by extending the indie quota to include local news.
• Show transparency to remove suspicions of cross-subsidy of its commercial work if it is to produce content for others.
• Abolish the BBC Trust and make new arrangements for the governance, regulation and oversight of the BBC.
• Set up a unitary board with a non-executive chair, to be known as the BBC chairman.
• Establish a new rigorous and independent Public Service Broadcasting Commission.

The report was published ahead of the debate over the renewal of the BBC’s Royal Charter.

A BBC spokesman said: “This report confirms the importance of the BBC in national life and recommends maintaining and modernising the licence fee, something we have said is necessary.

“We’re grateful to the committee for endorsing our record for efficiency and maintaining the quality of programmes and services, and note members overwhelmingly voted against moving to a subscription funding model.”

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