BBC Charter Review seeking input on generating more commercial revenue

In the same week that the BBC vowed to fight a $5bn defamation lawsuit filed by US President Donald Trump regarding the editing of his January 2021 speech in the Panorama documentary Trump: A Second Chance?, the UK Government has published a Green Paper consulting on a wide range of options being considered for the future of the BBC.

The upcoming review of the Royal Charter was one of the reasons BBC Director-General Tim Davie gave as being behind his shock resignation last Month (6 Nov) following the publication of a leaked memo from Michael Prescott, an external advisor who had worked with the broadcaster’s Editorial Guidelines and Standards Committee (EGSC). In the leaked memo, Prescott had raised concerns over the way Trump's speech had been edited, among other issues regarding potential biased reporting at the organisation. In a note to staff following his resignation, Davie said that he had wanted “to create the best conditions and space for a new DG to come in and positively shape the next Royal Charter.”

BBC News still valued by public

A recent study commissioned by the Department for Culture, Media and Sport (DCMS) and carried out by IPSOS UK into the public use of and attitudes towards BBC News found that the majority (60%) of UK adults were still satisfied with BBC News, with even more finding it valuable to them personally (72%) and to UK society as a whole (77%). Those who said they did not trust the news in general were more dissatisfied (44%) than satisfied (20%) with the quality of BBC News.

Those who said that they found BBC News to be valuable gave a wide range of reasons, including impartiality, trustworthiness, accuracy, and coverage. Those who said it was not valuable focused most on a perceived lack of impartiality and bias.

Priorities for the Royal Charter renewal

As part of the Charter renewal process, the government is considering options to ensure the BBC is sustainably funded, commands the public’s trust, represents all communities across the UK, and drives growth, opportunity and jobs.

Culture Secretary Lisa Nandy said: “We want the BBC to continue to enrich people’s lives, tell Britain’s story and showcase our values and culture at home and overseas, long into the future.

“My aims for the Charter Review are clear. The BBC must remain fiercely independent, accountable and be able to command public trust. It must reflect the whole of the UK, remain an engine for economic growth and be funded in a way that is sustainable and fair for audiences. 

“As a government, we will ensure that this Charter Review is the catalyst that helps the BBC adapt to a rapidly changing media landscape and secures its role at the heart of national life.”

Davie commented: “We welcome the publication of the Government’s Green Paper and the start of the public consultation on the future of the BBC. We urge everyone who cares about the success of the UK’s world-leading creative industries to have their say.

“At the BBC, we want change, so we can continue to deliver for the UK for generations to come. We want to secure a public service BBC that is independent, sustainably funded for the long term, and meets our audience's needs."

Philippa Childs, Head of industry union Bectu, said: “Charter renewal comes as the organisation faces intense pressure at home and abroad, alongside the search for a new Director General.

“The focus on sustainable and fair funding is right, in order to future-proof the BBC, however the licence fee remains, in our view, the best way to fund the BBC. Any proposed change must not undermine the BBC’s ability to deliver distinctive, original content or reduce it to just another streaming service.

“We strongly welcome the green paper’s recognition of the BBC as the heart of the UK’s creative ecosystem, and its emphasis on skills and growth. However, current plans to outsource significant parts of the BBC’s work are clearly at odds with this. Any such plans should be scrapped, or at the very least paused, until the Charter process is complete and a new Director General is in post.

“It is also positive to see acknowledgement of the cultural issues that have plagued the BBC. Appointing a board member with specific responsibility is a start, but transparency and trust are essential. There must be no place in the BBC board for political appointees. Staff must have confidence that systems work and that their voices will be heard. We welcome the commitment to CIISA and urge the BBC to require full CIISA compliance from all contractors, so no worker experiences a repeat of recent events on MasterChef.

“The BBC and its staff are the beating heart of the UK’s creative industries. That must be central to every decision taken as part of the new Charter, and it will guide Bectu’s response to this consultation.”

Responses from the government’s Green Paper public consultation will be used to help inform policy changes, which will be set out in a White Paper expected to be published in 2026.

Charter Review at a glance

The Charter Review will focus on three interrelated objectives.

Regarding the public’s trust, considerations in the Green Paper include:

• Strengthening the BBC’s independence so that the public continues to have trust in the organisation and its programmes and content, including considering the government’s role in board appointments;
• Updating the BBC’s Mission and Public Purposes to give accuracy equal importance alongside impartiality and improving transparency of editorial decision-making to ensure the BBC explains journalistic processes and how its coverage evolves, especially during high-profile events;
• Giving the BBC new responsibilities to counter mis/disinformation, potentially alongside additional requirements on media literacy to help the public navigate technological change and develop digital skills, including around AI;
• Introducing specific duties around workplace conduct to ensure BBC staff are protected and the organisation sets the standard for the rest of the sector to follow – including new responsibilities for the BBC Board to ensure action is taken against workplace misconduct.

Regarding financial sustainability, considerations include:

• Reform of the licence fee, whether licence fee concessions should be updated, and options for the BBC to generate more commercial revenue;
• Options for funding the World Service and supporting sustainable funding for minority language broadcasting, including S4C.

Regarding driving growth, opportunity and good jobs, the government is considering and seeking views on:

• Placing a new obligation on the BBC to drive economic growth, build skills and support the creative economy across the UK;
• Ways in which the BBC can further support the production sector across the nations and regions, including by ensuring that budgets and decision-making power for commissioners are spread across the UK, and by supporting minority language broadcasting; 
• Empowering the BBC to be an ethical and economic leader in adapting to new digital technologies, and enabling it to invest in Research and Development to support growth and drive public service benefits;
• Encouraging the BBC to deliver more through collaborations and partnerships for growth and public value outcomes, including with organisations across the creative economy, and with local news outlets.