A BBC for the future: a broadcaster of distinction May 2016 #yourBBC A BBC for the future: a broadcaster of distinction Presented to Parliament by the Secretary of State for Culture, Media & Sport by Command of Her Majesty May 2016 Cm 9242 © Crown copyright 2016 This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives. gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: [email protected]. Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned. This publication is available at www.gov.uk/government/publications Any enquiries regarding this publication should be sent to us at [email protected] Print ISBN 9781474131674 Web ISBN 9781474131681 ID 22041603 05/16 Printed on paper containing 75% recycled fibre content minimum Printed in the UK on behalf of the Controller of Her Majesty’s Stationery Office Contents Contents Foreword 5 3. Enshrining independence and accountability 46 Key recommendations 6 Creating a unitary board for the BBC 48 Introducing an external regulator 51 Executive summary 8 A new framework and licensing regime 54 Reforming regulatory processes and powers 56 1. Introduction: the BBC is much loved and A longer Charter 57 remains a central part of British society 18 Increasing accountability to the nations 59 Changing context 20 Continued partnership with S4C 59 A central role for public service broadcasting 22 An easier, more efficient complaints system 60 Maximising public value, adapting further 23 Engaging with the public 61 What the BBC does and how it compares 24 4. Supporting the creative sector 62 2. Prioritising distinctiveness and serving Assessing market impact 65 all audiences 26 Making the BBC a better partner 66 The BBC’s mission 28 Content distribution 69 Reforming the public purposes 30 Promotion of services 70 Defining and evidencing distinctiveness 31 Maximising consumer choice 70 Achieving greater distinctiveness at service level 37 A new contestable fund 71 Protecting the World Service 39 BBC archive 73 Meeting the growing challenge of serving Supporting local news 73 all audiences 40 Digital switchover for radio 74 Improving provision for Black, Asian and Minority Ethnic (BAME) audiences 40 Improving provision for nations and regions 42 Department for Culture, Media & Sport | A BBC for the future: a broadcaster of distinction 3 Contents Contents 5. Enhancing efficiency and transparency 76 7. Annexes 104 Competition in content production 78 Annex 1 – Charter Review timeline 105 BBC Studios 82 Annex 2 – Consultation and engagement 106 Delivering further efficiency 83 Annex 3 – Summary of consultation data 109 Increased transparency of BBC spending 85 Annex 4 – Summary of polling 112 Commercial subsidiaries reviewed and regulated 85 Glossary 116 The National Audit Office role 87 End notes 118 Research and development 89 6. Ensuring a modern, sustainable, funding model 90 The licence fee level 92 Closing the iPlayer loophole 94 Greater freedom to manage budgets 96 Using the licence fee for public service content 97 Greater transparency in future licence fee settlements 97 Investigation and prosecution of TV licensing offences 99 Introducing more flexible payment plans 100 Voluntary payments for over-75s 100 Paving the way for a new more sustainable funding model in the longer term 102 4 Department for Culture, Media & Sport | A BBC for the future: a broadcaster of distinction Contents Foreword The BBC’s current Royal Charter, its We want the BBC to thrive in a world eighth, comes to an end in December. of increasing technological, social Over the last ten months we have and economic change. And we will listened to the views of hundreds of ensure the BBC has a governance and organisations and institutions and regulatory framework that guides it hundreds of thousands of members always to act in the public interest and of the public. We have also had deliver good value to the people who the benefit of expert input from pay for it. committees in Westminster, Holyrood, John Whittingdale Cardiff and Stormont, and there has The new Royal Charter will also go Secretary of State for Culture, been a vocal, and often passionate, further than ever before in protecting Media & Sport public debate. the fundamental principle of BBC independence. The BBC should always The proposals that we are publishing have the editorial and operational To inform, educate and entertain. today, therefore, are the result of independence to decide how best For almost 100 years the BBC one of the largest and most open to serve its audiences and the BBC has been pursuing the vision consultations ever conducted, and will now, for the first time, be able to of its founder and first Director- are informed by the evidence that appoint the majority of members to General, Lord Reith. It is a revered has been provided to us by those its sovereign board. national institution, and familiar who watch and listen to the BBC: those who rely on it, those who Like any organisation the BBC is not treasured companion. It is a love it, those who can be frustrated perfect. And it has made mistakes. cultural, economic and diplomatic by it and those underserved by it. What is important is that the BBC force that touches the lives of learns from those mistakes, and almost all of those who live in The proposals that the government that previous failings are addressed. has set out in this white paper are In renewing the BBC’s Royal Charter, the UK and hundreds of millions about ensuring the BBC has a bold, therefore, the government wants beyond these shores. It is the strong and stable decade ahead. to enhance the best of the BBC, heart of our public service They will embolden the BBC to take but address those areas where it broadcast system, and remains risks, confidently and unashamedly to could, and should, do better. the envy of the world in what create the highest quality, distinctive content for all audiences. The government is clear that the is a now a global media market. BBC has a vital and enduring role to At its best, the BBC makes play for the next Charter period and programmes that are popular as beyond. As the BBC approaches its well as individually and collectively centenary the government will provide unique – informing, educating and the foundations for a stronger, more entertaining in a way which serves independent, more distinctive BBC all nations, regions and communities that will inform, educate and entertain in the UK. The BBC can only be for many years to come. successful if it continues to create new and innovative content which breaks boundaries and sets new standards through its creativity, ambition and innovation. John Whittingdale Secretary of State for Culture, Media & Sport Department for Culture, Media & Sport | A BBC for the future: a broadcaster of distinction 5 Contents Key recommendations − Enable the BBC to make even − Ensure the BBC’s market impacts − Promote greater transparency more great programmes for are assessed more widely and within the BBC through enabling audiences to enjoy, by incentivising effectively by providing Ofcom licence fee payers to understand more distinctive output that with powers to investigate any how the BBC spends its budget informs, educates and entertains. aspect of BBC services. between different types of − Create a strong unitary board − Open the BBC’s content programming, and through new for the BBC, enhancing its commissioning to greater transparency on remuneration independence. The board will be competition, by removing the of talent paid over £450,000. fully responsible for the governance in‑house guarantee for all − Deliver a stronger role for of the BBC and the delivery of its television content except news the National Audit Office to services. In contrast to the BBC and news‑related current affairs. scrutinise BBC spending and Governors and the BBC Trust, this This will provide hundreds of millions value for money. The National new governance structure will see of pounds of new opportunities Audit Office will become the the BBC responsible for appointing for the independent sector, help BBC’s financial auditor given the at least half of the board members. drive efficiency savings and provide £3.7 billion of public money that − Appoint Ofcom as the external new creative opportunities for the it spends. The scope of its value independent regulator of the BBC. The government also provides for money investigations will be BBC, as recommended by the in-principle support for BBC plans explored further. independent review by Sir David to spin-off its in-house production − Help make the BBC a better Clementi. Ofcom is the widely into a new subsidiary, BBC Studios, partner, with a new focus on respected and experienced media opening up new opportunities to partnership in the Charter. The BBC and telecommunications regulator. produce programmes for the BBC should leverage its size and scale to and other broadcasters in the UK enhance and bolster the creative − Increase the licence fee level in and internationally. line with inflation for five years industry sector by working more from 2017/18 so that the BBC − Establish a new contestable public in productive partnership with UK can continue to provide high service content fund to create new players of all sizes so that others can quality, distinctive content for opportunities for others to provide benefit more extensively from its all audiences. It will consequently the best public service broadcasting expertise and reputation. remain one of the best-funded content in the UK and enhance − Ensure that the BBC serves all public service broadcasters in plurality in the provision of public nations and regions in the UK the world.