That this House takes note of the Report from the Communications and Digital Committee Public service broadcasting: as vital as ever (1st Report, Session 2019, HL Paper 16).
My Lords, I am pleased to introduce this debate on the Communications and Digital Committee’s report, Public Service Broadcasting: as Vital as Ever. I declare some interests. I was a guest of S4C at a Wales v Ireland rugby match in March 2019 and of ITV at the National Television Awards in January 2019. I was invited to participate in the Royal Television Society Cambridge conference in September 2019 in my capacity as committee chair. The conference was hosted by ITV, which provided hospitality and accommodation.
I am grateful to the committee staff for their assistance in preparing the report. Our clerk was Theodore Pembroke and our policy analyst Theo Demolder. They and the committee were provided with great support by Rita Cohen. I also thank Professor Steven Barnett, who provided expert advice throughout the inquiry, and the many witnesses who gave us evidence.
I am looking forward today to hearing from noble Lords who were members of the committee at the time of the report, and others who have joined the committee since. As always, they have bought extensive experience and expertise to the work of the committee and the deliberations of this House.
We issued our call for evidence a little over two years ago, in March 2019, and reported 18 months ago in November of that year. Since then, much has changed. Covid has hit us all and led to huge disruption for PSBs, accelerating some changes already under way in the industry while bringing new challenges to the thriving production sector and the wider creative economy and, in particular, its large freelance workforce.
The Government have announced what looks like a blanket and untargeted pre-watershed ban on HFSS advertising that will impact the business models of commercial PSBs while leaving online platforms untouched.
Ofcom has published its five-year review of PSBs. Like us, it found:
“Public service content still matters hugely to people and society”
and that PSBs
“underpin the UK’s creative economy.”
However, it argued that
“radical changes to support PSBs shift … to online”
are needed.
The report from Lord Dyson shocked many of us who want a strong, independent and trustworthy BBC. The Government, in their so-far measured response, have indicated further changes in the way the BBC is governed, which I hope the Minister will be able to say more about today.
In introducing this report, I cannot help feeling that the hard work of Select Committees, the engagement and commitment of our witnesses and the time put into responding by Ministers and officials deserve more timely debate in this House while reports remain topical. This inquiry focused on the role of PSBs—both the BBC and commercial PSBs—the financial pressures they face, the nature and future of the PSB model and the impact of the changing production landscape in the age of video on demand.
My Lords, I thank the members and staff of the Communications and Digital Committee for its impressive work on this report, so ably chaired by the noble Lord, Lord Gilbert, who has just made a powerful and informed case that public service broadcasting is, as the report says, as vital as ever. I am of the view that public service broadcasting has a place in not just our hearts but our heads. Therefore, it is absolutely right that this report highlights the need for public service broadcasters to adapt to a changing media landscape, while shining a light on the need for a legislative and regulatory framework with the public interest at its core.
As we have heard in this House and the other place, there is no doubt that the BBC has issues to address about accountability, trust and integrity in the wake of recent revelations. However, it is important to acknowledge that, in recent times—times which have been so heavily defined by the global pandemic—the BBC’s universal mission to educate, inform and entertain has never been more critical and appreciated. Indeed, it has been a focus for bringing us all together, as well as supporting the wider creative industry. Covid-19 and the BBC’s showing of press conferences and films has highlighted the importance of a platform for information, while its entertainment and education offerings have helped many households through a deeply difficult and troubling time.
While the report is mainly focused on the entertainment side, it is a credit to the BBC that it delivers trusted news to millions in the UK and across the globe. Ofcom research bears this out: at the start of the lockdown, which we remember as a time of great uncertainty, 83% of people expressed their trust in the BBC’s coverage. This had a particularly important impact on those who were more vulnerable to the impact of misleading news sources—a topic I am sure we will return to as part of the upcoming online safety Bill. In respect of recent events, I urge the Government to resist political opportunism and the pursuit of vendettas. If public service broadcasting is diminished, the public suffer, and it is hard to back-track in the future.
My Lords, as a member of this committee, I record my thanks to the noble Lord, Lord Gilbert of Panteg, for steering us through this and more recent reports. I also associate myself with his thanks to our advisers and staff. I started in this report’s final stages, so I also record my thanks to my noble friends Lady Bonham-Carter and Lady Benjamin— who preceded me and my noble friend Lord Storey from these Benches—and to all other members of the committee.
Little did we know when this report was published in November 2019 that, a year later, we would be in the midst of a global pandemic, when trusted sources of information, regulated to provide the public with impartial and accurate news, would be such a vital lifeline for so many of us, alongside high-quality online education such as BBC Bitesize and, of course, as much entertainment as we could get our hands on. How wonderful it is that this was all available to every household in the country, free at the point of use for those unable or unwilling to pay subscriptions for Netflix, Amazon or Sky.
This debate comes in the wake of the BBC’s independent judge-led Dyson inquiry into events of 25 years ago. While Bashir’s behaviour was shocking and subsequent management action lamentable, there have been fundamental changes in BBC accountability since then. The BBC is now under external regulation by Ofcom, and any such lapses in editorial standards would be swiftly exposed. It should certainly not be our focus today.
I intend to confine my comments to some of the broader strategic questions which this report set out to address—in particular, how the unique ecology of public service broadcasting in the United Kingdom can survive and thrive in a future where subscription video on demand, or SVOD, appears to reign supreme.
Why does it remain so important in the context of so much available content? We need only take a short hop across the Atlantic to get our first answer. In the US, fake news and polarisation of opinion ultimately ended with a President promoting violence to suppress the results of the ballot box. It gave us a graphic demonstration of a dystopian, unregulated future without well-resourced and trusted PSBs committed to accuracy and impartiality.
My Lords, I declare my interests as in the register. I too thank the noble Lord, Lord Gilbert, for his inspired chairing of the Communications and Digital Committee, of which I am proud to be a member. For me, this report is driven by the statement that
“public service broadcasting is as important as ever to our democracy and culture, as well as to the UK’s image on the world stage.”
As other noble Lords have said, the 18 months since this report’s publication have seen huge changes in the PSB landscape. The ecosystem is threatened by the relentless advance of the US-owned streaming giants and the revelations and fallout of Lord Dyson’s report.
I was profoundly shocked by the Dyson report and the evidence of Martin Bashir’s fraud. Its findings were personal to me because I was working in BBC News and Current Affairs in the 1990s. Contrary to media reports, the fraud was not widely known across the corporation. I was particularly shaken because the fraud was so far removed the public service ethos that I believed in so passionately. With the corporation, I filmed across the world and the UK, often being met by obfuscation and downright lies as I tried to get to the heart of the story. It was my job to cut through to the truth and broadcast the facts to the viewers across this country. I was guided by the corporation’s editorial guidelines, which were rigidly enforced by great BBC lawyers, such as Roger Law. However, there was a rigid hierarchy and a culture of control by editors of programmes and heads of department. In the organisation, the key to a long and successful career was almost entirely in the hands of a few bosses. As a result, their favour was eagerly sought and they had the power to make or break careers. I was able to argue an editorial case with my bosses but, if I failed and was still dissatisfied, there was no mechanism for whistleblowing where my case could be taken seriously without damaging my career.
My Lords, I refer to my declarations in the register of Members’ interests. I pay tribute to the noble Baroness, Lady Merron, for being on the Front Bench, and say how jealous I am of her meteoric rise. I also pay tribute to my noble friend Lord Gilbert. I am very lucky to serve on his committee, although I did not contribute to this report. He is a superb chairman who clearly has an extraordinary ability to herd cats; he keeps us all in order and produces great conclusions from many dissenting voices. I am sad that I am speaking before my noble friend Lord Hannan, because normally he provokes me to such paroxysms that I give better speeches. Last time, he proposed the privatisation of the British Library, and I look forward to what is coming next.
Let me try to out-provoke him to begin with by saying that when it comes to the public service broadcasters, it is important to be a critical friend and ask tough questions. I have, for example, once been on the front page of the Sunday Times proposing the privatisation of Radio 1, because it was only set up to take on the pirate radio stations, and I wondered what the purpose was of having a popular music channel funded by the BBC when there is now so much choice. I opposed BBC Jam education services because, in my constituency when I was an MP, lots of my constituents worked for education publishers and they asked me how on earth they were meant to compete with free services. I initially opposed John Whittingdale’s proposal of a content fund, because I saw how criticised the BBC was and wondered if we wanted to create another one, but it has been a great success. It may be that, as the debates about the future of public service broadcasting continue, we may have debates instead about public service content.
What this report says is true: the BBC has to look very hard at how it serves minorities and young people, and it must look very hard at whether it is simply producing popular services or producing services that the market cannot provide. If we are to help public service broadcasters, we should deregulate them, if that does not sound like a contradiction in terms. I completely agree with the report’s conclusion that imposing the free licence fee on the BBC was a terrible error. I was the Minister at the time, and I have said before that I probably should have resigned, but I did not. It was made worse when the Government campaigned against their own policy by telling the BBC that it should keep the free licence fee, when it had already agreed that the BBC could change it. The noble Lord, Lord Hall, deserves a great deal of credit for absorbing that policy change and reforming how free TV licences work. I supported the deregulation, for example, of some of the regulations around commercial radio. I think we could support advertising minutage changes for ITV. I supported changes to product placement for ITV. The market is now so saturated that, in effect, broadcasters should be given as much freedom as possible because they will regulate themselves. We will not get ITV putting on 40 minutes of adverts every hour, because it competes against advert-free subscription channels such as Netflix.
My Lords, it is a pleasure to follow the noble Lord, Lord Vaizey, with his enormous experience as a very distinguished DCMS Minister. I encourage him to spend a bit more time sharing his experiences with us, since he clearly has a lot to say on some of the most topical issues, some of which we will discuss later. I declare my interest as a member of the Communications and Digital Committee, although, like the noble Lord, Lord Vaizey, I was not a member when this excellent report was published. I also declare my interest as a former director of the British Film Institute.
Like others, I thank the committee’s chair, the noble Lord, Lord Gilbert, for his fine introduction of the report and his excellent questions, which I hope the Minister will respond to at the end of the debate. I also echo the noble Lord’s concerns about the delay in debating this important report. The committee system of your Lordships’ House is one of its absolute crown jewels, and it is extraordinary that we have had to wait so long for a debate on an issue such as this. The good thing is that it is still timely, although that may not be true for some of the other reports waiting in the queue. I also welcome my noble friend Lady Merron to our Front Bench and thank her for covering the important DCMS brief.
Given the time constraints and the fact that I was not then part of the committee, I will focus on two important issues touched on in the report that may not get much attention today: archiving and the process for setting the BBC licence fee. Having said that, I welcome the Government’s general approach—they share
“the Committee’s view about the importance of public service broadcasting … and its continued relevance”.
Together with evidence from Ofcom that shows that PSB programming remains popular and is valued by UK audiences, that provides a very good basis for the proper debate and discussion that I hope will accompany the light-touch mid-term review of the current BBC charter and the licence fee settlement negotiations for 2022 to 2027.
My Lords, I went through this report desperately looking to find something I seriously disagreed with. I failed miserably. I have then come to the conclusion that I do not disagree very much with anything anybody has said in this debate. We have a problem here: we are debating something which came out in 2019. As someone who predominantly watched the BBC as a child and is still something of a fan of “Doctor Who”, I feel that the TARDIS has come and missed out a bit of our history. It has taken it away and pulled us back through.
The pandemic has displayed many of the BBC’s merits. The fact is that it backed up the education system and helped with entertainment, which is something I do not think any other body could have done. If ever something has been damaged by the pandemic it is the education system, and the BBC stepped in. It did not replace teaching in classrooms, but it did not do a bad job of making sure that there was a decent sticking plaster. I cannot see any other body ever doing that—unless you get something that is free to air and publicly funded—or having any incentive to do that without going through a commissioning process that would make PPE look like a simple task. You have to have something that will act, and the BBC fulfilled its role.
Then you look at Lord Dyson’s report on the Bashir fiasco. It is not so much that the mistake was made, but that it seems to have been ignored and that the whistleblower was persecuted. This must be looked at and identified so that it can never happen again. It may be too much to hope that we will never make that initial mistake again, but we must make sure that whistleblowers are protected. We have a right to expect that from an organisation which we fund.
Going back to the footballs that were in play in 2019—and probably still are—on the licence fee, the noble Lord, Lord Vaizey, has probably done it justice, but the fact of the matter is that, if you expect the BBC to provide good content, you have to give it the money to provide the content. I have had conversations with people who say, “I want my licence fee back,” and I say, “What are you going to cut?” They reply, “What do you mean cut?” I say, “Well, it’s money. Production costs money. What do you want to cut?” He—it was a gentleman—then muffled through this process of going down, “Well, I’d get rid of X and Y that I don’t watch”, to which his wife said, “But your grandchildren watch that.” We will always have a real challenge here. If we want broadcasting to do all this stuff, we have to fund it—and fund it by the licence fee. I do not think we want this to be part of a Budget and something that is paid for out of income tax, to be perfectly honest. Can you imagine the rows then? It is almost unimaginable that there would be any continuity to go on.
My Lords, in the 1980s, while both my gender and geography were against me, I was able to begin my directing career at Channel 4 and subsequently build it at the BBC. Since that time, I have worked across the creative industries from Hollywood studios and streamers to independents and PSBs. With that in mind, I draw the attention of the House to my interests on the register in relation to the tech sector and as director of a TV and theatre company. It was a privilege to be a member of the Communications Committee under the chairmanship of the noble Lord, Lord Gilbert, at the time of the report’s inquiry. I would like to associate myself with his words at the beginning of the debate.
I want to talk briefly about three things: the urgent need to support a national broadcaster; the funding model of the BBC; and who the competition really is. It is striking that, for a much-loved institution, the BBC attracts so much ire. It manages to upset the left for its failure to give it a platform and the right for being a hotbed of liberals. It is accused of failing the young as they abandon it for YouTube, and failing the old, in the debacle of the over-75s licence fee. Perhaps it is the role of a Cross-Bencher to point out that, if it is upsetting both sides, it is probably doing a reasonable job.
In a time of division, culture wars and disputed realities algorithmically pushed to highlight our difference, the nation’s broadcaster should not be a comfort to any one view but an instrument for, and a mirror to, us all. The danger of this moment is that our divisions—symbolised by our fragmentation north and south, Brexit or not, urban or rural, nationalism or unity—overwhelm our common interest. The vast majority of our witnesses made the case that, more than ever, we need a broad expansive space in which to see our collective selves, not a narrowed-down public broadcaster doing only what commercial players are not motivated to do, which, ironically, is likely to result in a diet that feeds only an urban elite.
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We looked in great detail at drama and factual content, which account for around 70% of Netflix and Amazon programming, with eye-watering budgets of up to £15 million per hour. News and current affairs, barely covered by the SVODs, was not a focus of our inquiry but was considered in more depth in our subsequent report on the future of UK journalism, where we called for much greater diversity in newsrooms and highlighted the danger of groupthink and narrowness of thought.
Trust, though, is everything, and that trust has been badly hit by what Lord Dyson found at the BBC. Drawing on our inquiry, it seems to me that it is vital that we restore that trust because, as we concluded, the evidence we heard indicated that public service broadcasting is as important as ever. The Government agreed and, in their response, said that PSBs provide
“significant cultural, economic and democratic value to the UK”
and that the broadcasters
“will need to adapt to the changing media landscape to sustain their value”.
As we all know, the way in which we watch television is changing—20 years ago, most people relied on five free-to-air channels provided by the PSBs. These broadcasters now face competition from hundreds of other channels and online services. Subscription video on demand services—or SVODs—such as Netflix and Amazon Prime have enjoyed rapid success. They have made available thousands of hours of content and offer each viewer a personalised experience. More than half of UK households now subscribe to an SVOD, while YouTube is also a major competitor. SVODs operate globally and have enormous resources, leading to concerns that PSBs are being priced out of the market for making high-quality television, limiting their ability to create drama and documentaries that reflect, examine and promote the culture of the UK.
We sought to understand the contemporary role of PSBs and whether the compact—the obligations they take on in exchange for privileges—is fit for the age of video on demand. I would like to outline the importance of the committee’s recommendations for the thriving of public service broadcasting. Our evidence, like Ofcom’s, overwhelmingly indicated that public service broadcasting is as important as ever to our democracy and culture, as well as to the UK’s image on the world stage. PSBs contribute to the economic health of the UK and support the wider creative industries.
A wide range of witnesses told us how PSBs inform our understanding of the world, reflect the UK’s cultural identity and represent a range of people and viewpoints. Although other channels and services offer high-quality UK programmes, the availability and affordability of PSBs through digital terrestrial television remain unmatched. Their availability allows them to provide “event television”: moments that bring the nation together, such as major sports events, documentary series and landmark drama such as the virtual water-cooler drama “Line of Duty”, commissioned by the BBC from an ITV-owned production company, and Channel 4’s powerful and important “It’s a Sin”, which told a story that needed to be heard and which was public service broadcasting to a T. To strengthen the availability of event TV, we recommended that the Government should review the listed events regime to extend the availability of significant sports events on free-to-air television.
I should add that, while the committee was clear that losing universal and affordable public service broadcasting would make our society and democracy worse off, we recognised the contribution of great content from non-PSBs that met many of the broader public service objectives—content of great quality that was original and made for Britain—and recommended that Ofcom should consider the contribution of content from non-PSBs when reviewing the PSB landscape. But we found that PSBs are struggling to achieve their mission to serve all audiences in the face of increased competition and changing viewing habits. They are not serving younger people and people from minority backgrounds well enough. Their legitimacy depends on serving these groups better.
To do this, PSBs must be willing to take creative risks and do more to involve people from different backgrounds in developing and making programmes. We recommend that Ofcom should be empowered to gather data on the diversity of commissioners and production crews making programmes for PSBs. We heard concern about representation of the nations and regions of the UK. Investment in TV production is too heavily concentrated in London. Many viewers believe that London and the south-east, as well as hub locations such as Glasgow and Cardiff, are overrepresented at the expense of other areas. Although progress has been made and new entrants have made high-budget series outside the capital, the economic benefits of investment have not spread widely enough.
Public service broadcasters are obliged to commission a certain percentage of programmes outside the M25, in the regions and nations of the UK. This is critical to building a skills base in different areas and ensuring that viewers see their localities represented on screen, but Ofcom must ensure that PSBs uphold the spirit of these obligations. The best way to support production in the regions and nations is to invest more in returning—rather than one-off—series and to commission production companies with headquarters outside London.
The UK TV production sector has enjoyed impressive growth in recent years, including in exporting programmes. SVODs and other commissioners such as HBO and AMC have driven significant investment, encouraged by high-end tax relief. However, public service broadcasters remain essential to the UK production sector. They spend considerably more than SVODs and other broadcasters on original UK programming.
The terms of trade—the code of practice drawn up by PSBs setting out principles for agreeing the terms of commissioning independent productions—encourage independent production companies to work with them. We heard from many witnesses that the terms of trade were one of the main reasons they work with PSBs. Their success relies on both PSBs and the production sector being willing to update the terms of trade as the market changes.
PSBs are also vital to the success of SVODs, as part of the UK’s thriving mixed ecology—a mutually reinforcing system of specialist skills, labour, production companies, broadcasters and other assets that are supported by both public and private investment. This ecology is integral to the wider creative industries. It nurtures creative and other skills used in filmmaking, and it is a vehicle for exhibiting British talent to an international audience. PSBs are at the heart of this ecology. We heard from Netflix that co-production
“works extremely well for us as a model and it seems to work extremely well for the rest of the industry as well.”
Between 2014 and 2018, co-commissions between SVODs and broadcasters almost doubled, from 16 to 30.
The health of the independent production sector depends on maintaining the supply of production crews to meet increased demand. There is a serious risk of the sector reaching full capacity and overheating. We recommended that the Government should address skills shortages in the sector through urgent reform of the apprenticeship levy and extending the high-end TV tax relief. Public service broadcasters are especially vulnerable to further cost inflation. The apprenticeship levy simply does not work for much of the creative sector; the committee has illustrated this time and again in a number of reports. The Government’s response is largely one of denial, with commitments to some small-scale pilots. As we shape up for a post-Covid national effort to train young people for the roles of the future, what plans do the Government have to do something really impactful to sort out this failing policy area?
If public service broadcasters are to continue to serve us, and to be able to afford to make world-class programmes, they must remain financially viable. The BBC should not be given further responsibilities without a corresponding rise in income. We expressed concern that the integrity of the licence fee, the guarantor of the BBC’s financial independence, has been undermined. In particular, the Government should not have asked the BBC to accept responsibility for over-75s’ licences, nor should the BBC have agreed to take it on.
A new, independent and transparent process for setting the licence fee is necessary. We recommended establishing a new body, to be called the “BBC Funding Commission”, which should be in place in time for the next round of negotiations. The Government have not chosen this route, but will the Minister commit today to a transparent and open process next time round? When we call for transparency, we have the BBC as well as the Government in mind.
The obligations public service broadcasters take on and the privileges that they receive in return must be balanced. However, we heard that, in a competitive environment, the PSBs’ traditional privileges were becoming less valuable. Most importantly, public service broadcasters have historically received mandated prominence, listed as the first five channels on the electronic programme guide. We supported Ofcom’s proposals to update this principle for the digital age, so that it covers on-demand viewing, but implementing a solution seems to be taking for ever, and I cannot understand why.
Digital terrestrial television will remain essential for the many viewers who cannot afford, or do not have access to, internet or pay TV, and free access to spectrum for PSBs must continue to be guaranteed. Given the pace of change in the market, we recommended that Ofcom should review whether TV platforms should be required to pay commercial PSBs a retransmission fee for carrying their channels.
Much of the regulation affecting broadcasting and TV production dates from a time when PSBs were dominant. They remain the largest producers in the UK, and regulation has enabled smaller players in the ecosystem to thrive. However, the sector is facing major changes because of the rising popularity of US-based SVODs, which are themselves likely to become consolidated.
As we found in our report, Regulating in a Digital World, regulation needs to become faster at reacting to changes in the digital economy. An example of this was the Competition Commission’s decision in 2009 to block the creation of Kangaroo, a joint venture of the PSBs to aggregate content from BBC Worldwide, ITV and Channel 4. In a report at the time, the committee strongly regretted the Government’s failure to intervene on public interest grounds. In 2018, Sharon White, the chief executive of Ofcom, said that the PSBs will need to “collaborate to compete” in the new environment. The opportunity that Kangaroo presented for Britain to be in on the ground floor at the start of video on demand is not the kind of opportunity that comes along often. That it was stopped on the runway is an example of a regulatory approach that harks to the past rather than looking to the future. It illustrates the need for much more flexible, forward-looking and joined-up regulatory thinking than we have.
If the UK is to continue to be a world leader in the creative industries, public service broadcasters must be enabled to thrive in the digital world. They must be held to account for their obligations, afforded full access to the commensurate privileges and supported to ensure that the important work that they do remains financially viable in an ever-more competitive environment.
I started by looking at the changes that have happened in the industry since we reported. Of course, the other big change is that the Government were re-elected with a thumping majority, an agenda to level up Britain, and no hesitation at all about playing a role in helping business to thrive in this fast-changing world. From their response, we know that the Government believe that PSBs play a central role in the ecology of the creative industries but that they need to adapt quickly to survive. I ask the Minister: what role do the Government envisage for the creative industries in their industrial strategy? How do they plan to support the production and content distribution sector? How can skilled work in production and content distribution contribute to levelling up? Will the Minister tell us what the Government will do to help to ensure that PSBs continue to provide, in the Government’s words,
“significant economic, cultural and democratic value across the UK”?
In particular, what will the Government do to help PSBs to adapt to the changing media landscape so that they continue to make that vital contribution? I beg to move.
This report discusses the long-standing debate around BBC funding. DCMS recently confirmed that it stands by the licence fee format, and we welcome the clarity that offers. However, I urge the Government to revisit the over-75s concession scheme. We are all aware of the need to strike the right balance between cost savings and ensuring a quality service, but increasing the burden on the over-75s was and remains unclear and unfair in its outcome.
Where the BBC can save, it should do so. However, the Government must provide a fair funding settlement. After all, we can remind ourselves that universality is an essential part of public service broadcasting. The licence fee underpins that. It is also a critical foundation for investment in the UK’s creative economy.
As we have heard from the noble Lord, Lord Gilbert, the continued success of online platforms presents challenges to public service broadcasting, but it is noteworthy that the BBC, ITV and Channel 4 have come up with interesting initiatives, including commissioning more varied content in terms of casting, location and so on.
The time lag on commissioning means—we must remember this—that there is no such thing as a quick fix. We must allow time for recent changes to filter through and for the creative industries to return to their capacity after this pandemic. So, while it is true that on-demand services put much money into UK production, the sector would suffer if a poor settlement for the BBC and Channel 4 meant a reduction in their commissioning or prevented the type of innovative, alternative content that adds such value to our world. After all, it is a rising tide that lifts all boats.
The media landscape is changing, and the pandemic has brought new and defining aspects to it. I welcome this timely report and look forward to it shaping the future of public service broadcasting to provide ever greater service to the public.
In the UK, we have a unique blend of publicly and commercially funded public service broadcasters which enhance our economy, culture and democracy. Indeed, last year’s Ofcom research, The Impact of Lockdown on Audiences’Relationship with PSB,found that most audiences had a greater sense of its value on behalf of society as a whole. It also highlighted its value for older and more vulnerable audiences. That research revealed that audiences put greater value on the need for news that reflects the regions and nations. I guess if you live in Bolton or one of the other seven areas right now with constantly changing government advice, accurate information about what exactly is going on is an essential public service. Therefore, our recommendation that Ofcom should ensure that public service broadcasters uphold the spirit of regional news and production quotas is even more critical today. The BBC’s “Across the UK” plan and the move of Channel 4 headquarters to Leeds are both welcome initiatives in that area.
Even before the pandemic, the evidence in our report that PSBs are vital to our democracy and culture and to the UK’s image on the world stage was overwhelming. Commercial rivals in the UK also see our PSBs as a critical part of the make-up of the creative sector; the Commercial Broadcasters Association described them as the bedrock of the UK audio-visual sector.
PSBs have invested £2.6 billion in the UK, delivering 32,000 hours of original home-grown content—125 times more than Netflix, which is still, even in a time of Covid, lockdowns and “The Queen’s Gambit”, not making a profit. PSB investment gives underpinning stability to our creative industries that the uncertain funding of streaming services cannot. As the report concludes:
“PSBs provide a stable investment platform for a diverse range of content, made for UK audiences, and freely available on a reliable over the air platform.”
PSBs also provide event television, bringing the nation together. Just look at the nearly 13 million who watched the epic finale of “Line of Duty” or the 4 million who watched Jenny tearing up her notes on “Gogglebox” while watching the same programme.
Last year, sadly, we lost a member of this committee: Lord Gordon of Strathblane, whose long-standing experience in media was a huge asset to this report. He particularly advocated event television and extending the listed events regime, especially relating to sport. I am sorry that the Government rejected that recommendation and would like to hear why.
Finally, but vitally, as the noble Lord, Lord Gilbert, mentioned, mandated prominence is critical for PSBs across all devices. PSBs must be easy to find in a fragmented media environment, whether as channels or hubs or through their own portal. The Ofcom proposal to update this is critical; I hope the Government will support this initiative and bring forward legislation this year.
This is a nation that needs to heal from division and disease. Public service broadcasters have a vital role to play in that process. We must give them the resources and support to get on with it.
Martin Bashir’s original fraud, and the 25 years the BBC has taken to admit the fraud, are dreadful failures of management within the organisation. However, I believe it would be much more difficult to repeat today. The appointment of the BBC’s unitary board and the corporation’s regulation by Ofcom have introduced objectivity and a degree of independence into the management of the organisation. In 2019, Ofcom reviewed 3,059 complaints about the BBC, under its own independent code, and found two breaches of content standards against the BBC. However, there is always room for improvement, so I am glad the governance of the BBC is being reviewed by both the Government and the organisation itself. The Government should look at the suggestion by the noble Lord, Lord Grade, for an independent editorial oversight board, but independence both from the Government and the BBC must be the overriding criterion in appointing its members. The BBC’s whistleblowing unit needs to be expanded, so it does not deal just with management issues but with journalistic concerns from the staff. Maybe it could be attached to this board.
The overpowerful, London-based hierarchy that I experienced when working at the BBC in the 1990s, which contributed to what the Culture Secretary calls “group think”, is being diluted. Today, across the PSB sector, production staff are, in the majority, drawn from freelancers who are not beholden to a single boss, and in line with the recommendation of the committee’s report, action is being taken to increase ethnic diversity in production and commissioning teams. The BBC’s 250 interview champions and anonymised application forms are contributing to a wider recruitment base, while the mandatory 20% diverse production staff quota for independent content commissions is already bringing in a much wider range of storytellers. At the moment, many smaller production companies are struggling to fill their quotas. Across the industry, more needs to be done to train up a new cadre of diverse production teams.
The report also recommends increasing regional content commissioning production, which is playing its part to break group think. The BBC has moved major content production to Salford, Glasgow and Cardiff, and with it has drawn other PSB providers to generate powerful regional creative centres. Just as importantly, BBC News teams have been moved out of London: the team covering technology is to be based in Glasgow, with climate and science in Cardiff and learning in Leeds. Now, if young people want to build a career in television, they will no longer have to move to London and sofa surf until they are established. The next generation of content makers can now enter and pursue a broadcasting career in the regions. I am convinced that will provide a powerful regional counterbalance to allay the Government’s concern about metropolitan group think.
I hope these reforms will strengthen our PSB channels, and their crucial ability to reflect this nation back on itself. The Home Secretary’s message after the Dyson report’s publication is that the BBC risked becoming irrelevant in an era with streaming giants. She is right, but not as she alleged because its journalists are systematically flawed and distrusted but because it is being outspent by streaming giants. The new Discovery-Time Warner merger will pour $18 billion next year into content—nine times more than the BBC’s television content budget. Is the sensible response to the threat of irrelevance of the PSBs to ensure that the mid-term charter review is both transparent and increases the license fee in line with inflation, while looking for an alternative funding model in the long term? Subscription can be part of the mix but, if we are going to continue with universal provision, we have to include public money, maybe in the form of a household tax or a share of the digital services tax. Likewise, the threat to privatise Channel 4 is going to damage its ability to reach underserved British minorities. I, like millions of people across the country, want the public broadcasting sector to thrive as a British beacon for truth and editorial independence, shining across the world. The Dyson report must be responded to, but the response must be bolstered to help a sector that is under threat.
The key, for me, is that public service broadcasters are a bit like B corps: they do not have shareholders and they have to take into account the wider community interest. Some public service broadcasters are too focused on the metric of audience share, rather than their role in supporting communities. It should not be Government intervention that puts the BBC in Salford or Channel 4 in Leeds or that drives the agenda on diversity. I was very struck that when I campaigned for greater diversity in the media, the BBC issued dozens of reports whereas Sky simply said “Yes, you’re right, we’re going to get to 20% by such and such a date” and just went on and did it. The public service broadcasters, the BBC and Channel 4 in particular, have a great opportunity, sheltered as they are to a certain extent from market forces, to really move the dial on issues such as diversity, regional production and skills—just as the excellent report from the communications Select Committee makes clear.
I conclude simply by saying that I firmly believe that we need public service broadcasters. It is obviously fashionable to look at our crystal ball—or, indeed, the screen in our sitting room—and say that we now live in an age of streaming and that the young no longer watch television, but the BBC in particular does not make the case effectively enough about the myriad services it produces; that may not be its fault. When we had floods in my constituency in 2007, I was fond of referring to BBC Radio Oxford as the “fourth emergency service”. From orchestras to local radio, public service broadcasting makes a massive difference; it is not simply about whether you like “Strictly”. The BBC needs to be careful to get out of the way and to realise that commercial broadcasters need to make a living. However, in an age of disinformation, as has been referred to, we need public service content that reflects British culture in all its shapes and sizes. That is why the thrust of the report—that the BBC and public service broadcasting should be supported—is so important.
Finally, do not read into the conspiracy theories in the newspapers. I genuinely do not believe that the Government have a hidden agenda to close down the BBC or knobble it in any way, although it is going about some of its business in very odd ways.
First, on the BFI national film and TV archive, the report says it is important that UK TV programmes of cultural significance are preserved for future generations. It also recommends that:
“The Government should broaden the requirement to provide programmes to and fund the BFI National Archive to non-public service broadcasters and SVODs which produce content in the UK.”
The Government’s response is welcome but limited: they recognise that the remit of the BFI national film and television archive
“includes the preservation, restoration and dissemination of culturally British screen content”
and that
“this should include programmes and films produced or commissioned by non-public service broadcasters and SVoDs”.
These are fine words, but they will not achieve what is in essence a voluntary scheme. The response goes on to say:
“The Government hopes that these entities share a desire to contribute to British heritage in this way and strongly encourages these entities to entrust guardianship of their screen content to the BFI National Archive, making a ‘reasonable contribution’ to the BFI.”
But this is not the basis for a long-term sustainable plan.
PSBs currently pay £1.5 million per annum and contribute to various one-off projects, such as digitising legacy collections held on myriad obsolescent videotapes with fixed shelf lives, but the BFI needs much more. It is not given the statutory powers or funding it needs to achieve its aims. For example, there is no Sky output—despite the existence of loads of original UK productions —and no streamed TV in the BFI’s collections. Like it or loathe it, most people would expect to have the Netflix series “The Crown” in the national collection, but it is not there. There is no Amazon Prime and no Apple TV. Who is to be responsible for holding examples of material from YouTube and the wider web? Future historians will find that omission very strange indeed.
Unlike the public service broadcasters, none of these new players, streamers and content originators have to supply materials, with a contribution to costs, to the national archive. I believe that the long-term solution is a “statutory deposit” scheme, but there are other options that could achieve the desired outcome. I am glad that the Government say in their response that they
“will monitor progress in this regard”
and remain
“open to considering the full range of options to deliver this outcome, including statutory support for collecting as currently exists for the PSBs.”
This certainly would be welcome, and I would be grateful if the Minister could update us on that.
My second point is on how the BBC licence fee should be determined. The committee reaffirms a previous recommendation that there should be
“an independent and transparent process for setting the licence fee”,
and recommends that the Government should establish a BBC funding commission to oversee that process. I strongly support this proposal. The BBC licence fee is a tax, and as such should be levied by the Government, but the processes of negotiating a charter and of recommending a licence fee to ensure that the BBC has the resources to do what the charter asks of it should be separated and transparent. However, those of us who have had some involvement in the process know that this is not quite how it works. The connection between the two processes is indirect and shrouded in political pressures. The result of all this is bad not just for the BBC—which faces increasingly intolerable pressures to deliver what is expected of it without the right money, and faces threats to its operational autonomy and independence—but for the Government, because of a growing suspicion of unwarranted political interference in the BBC, and for viewers.
The Government say that they have
“no plans to introduce a licence fee commission”.
However, I note that the response also says that the Government will set out in more detail the processes to be followed in due course. I hope that the Minister can elucidate further on this issue when she comes to respond. I look forward to hearing from her.
I will not go on at any length about the BBC, because I am not a great expert, but what about the World Service? If ever there was an extension of soft power for Great Britain, it has to be that. It just is—it is all over the world and touches the rest of the world. We are lucky that English is one of the universal languages of the day, and we have a way of going forward. But once again, it must be seen to be reliable and truthful, at least to the best of its ability. The fact is that, when foreign powers stop challenging what the BBC says, we should worry. When Russia stops challenging, then worry.
I end with one other thing that public service broadcasting has a wonderful record on, and that is educating the world on sport and making sport available. There has been a massive improvement in the growth of women’s football on TV. The universal medicine—the wonder drug—is exercise. People do not take exercise because it is good for them; generally speaking, they take it because it is fun. Playing sport is one of the ways forward. We must also bear in mind what Channel 4 has done with the Paralympics and how it has carried forward that work. At its best, public service broadcasting has the ability to entertain and educate at the same time. We need to look at the way it has made different aspects of sport available.
All of us who have access to video-on-demand services know that they are great—they are wonderful—but we are looking into a closed room with one closed set of information coming in. The fact that you can find your old TV series, fall asleep and when it comes on again you recognise both episodes is great. But the fact is that you are talking in your own little echo chamber. Public service broadcasting does not do that, and more power to its elbow because of that. We all need to be shaken up just a little bit.
Finally, if there is political bias in public service broadcasting, I hope that the party opposite realises that it has been in power for most of the time that it has been going on, so it is not that successful. It is the job of public service broadcasting to have a go at those who are in power. We all have the scars to show for that.
I would like to underline that it is breadth of experience, shared across class and region, across all of our fault-lines, that must be the ambition: to enjoy the talent shows, our national obsessions of housebuilding and watching other people cook; to watch “Small Axe” or “Line of Duty”; to hear the nightly news—which is still trusted above any other—as one nation. Streamers and video-on-demand services are deliberately designed to offer a personalised world. When I choose content based on my interests or characteristics, I am offered more of the same. While it feels comforting to be reflected, it automatically demotes content based on other interests and alternate characteristics. The BBC is unique in that its role is to ensure that we all see ourselves not as individual islands but in the context of each other.
Turning to the licence fee, the Committee was clear that the process should be transparent and based on the duties that are set out. It is not right that the BBC is asked to invest in infrastructure or give free licences if that takes away its ability to provide the programming that the nation demands. I support the recommendation absolutely but, perhaps somewhat controversially, I increasingly accept the argument of those who say that times have changed and that the licence fee, while still extraordinary value for money, is organised as something of a poll tax—neither based on usage nor ability to pay.
My personal view is that the BBC should have a ring-fenced settlement from central taxation. While I share the fear of political interference, I am not sure that the perennial threat to the licence fee—whether freezing it, forcing it to be spent inappropriately or legitimising non-payment—does not amount to political interference by less transparent means. It is in the national interest to fund and protect our national broadcaster, because our prosperity and identity are better held in public together, rather than as an ever increasingly divided nation distracted by its own atomised furies. Undoubtedly, it is irksome to each successive Government to feel the bite, especially when they hold the potential to defang it, but while it is a temptation to disempower the BBC, it should be resisted. Whatever our starting point, we all lose if we do not have one eye on building our common identity.
Finally, can we put to bed the notion that the battle for control of our attention is between the BBC and commercial radio, local press, Sky or even the streamers? It is, of course, the platforms—YouTube, Facebook, Instagram, Twitter, TikTok—that dominate our cultural and information technologies and who fuel the ever more fragmented and personalised realities, artificially promoting false binaries and extremities at the expense of a collective experience.
Neither culture nor politics is a zero-sum game. It does not follow that, if the platforms or streamers have content, we need none in our collective hands. The PSB system offers the opportunity of a contemporary and collective vision of what binds us at a crucial time in which we are readdressing our role on the global stage and working out what being a United Kingdom means. By all means, let us continue to discuss the detail, but let us not misunderstand the purpose. As this excellent report concludes, the PSB system is more vital than ever.