MPs question future of BBC licence fee in Commons debate as charter renewal talks continue

Ministers have questioned the long-term future of the controversial licence fee, with a culture minister stating that the sustainability of the fee will be a “big part” of the charter renewal talks of the BBC. Conservative frontbencher Julia Lopez said: “That will be a big part of the discussion around charter renewal – be without any doubt.

“The numbers paying the licence fee are falling whether people are advocates of it or not. The way audiences, particularly younger audiences, consume content is breaking their traditional relationship with the linear broadcasters, weakening the loyalty to and the love of the institution. Audiences feel that the BBC is not adequately reflecting them… and, as a consequence, they have lost trust in it and are starting to not want to pay the licence fee.”

Earlier in the debate, Willian Cash, Tory MP for Stone, questioned the legitimacy of the licence fee, saying: “Why should those who pay the licence fee, who feel that the BBC disregards their views and can be demonstrated to have experienced that, be forced to pay for its running?” Labour’s Justin Madders, MP for Ellesmere Port and Neston, said that the BBC had the opportunity to be the “last man standing” of traditional broadcasters, but add that there are “warning signs” over its financial stability. He said: “I note with interest the annual report on the licence fee produced by the BBC claims that they’ve visited over 72,000 premises without a licence, but then the report mysteriously fails to say what actual action that was taken as a result of that. He added: “And whilst it’s difficult to find precisely how many homes should be paying a licence fee, we can state with confidence that 72,000 visits is in itself a very small proportion of the number of properties that aren’t currently paying a licence fee. So it is, I think, time for an honest debate about what our expectations are about people paying the licence fee.”

Tory MP Sir Bernard Jenkin said that the BBC face stern competition from newer streaming services such as Amazon Prime and Netflix when it comes to programming. He argued in the debate that the broadcasting corporation could make a move to subscription services in lieu of the mandatory licence fee but added “it would still be necessary for the BBC to have some public subvention for its public service broadcasting, which plays such a key role in our national life.” Former Conservative minister Damian Collins said that a reluctance from households to pay increasingly higher prices for the licence fee could lead to a “potential decline” of revenues. He said: “The BBC has to do what it is starting to challenge itself to do, which is to consider how it can prioritise resources while maintaining its core principles, which I believe are fundamental to the BBC, that it is a publicly funded and universal service where there is something for everyone who pays into it. The challenge of how to deliver that in the modern era requires the BBC to look for alternative forms of revenue.”