U.K. Government to Ask ‘Hard Questions’ Regarding Future of BBC

LONDON: The U.K. government has set out the topics for its full review of the BBC, evaluating its scale and scope, the way in which it's funded and its governance and accountability.

The BBC's current Royal Charter is due to expire at the end of 2016. The government's consultation paper is the first stage in the process of setting a new charter.

One area of evaluation is the scale and scope of the BBC's services and operations. The largest public service broadcaster in the world, the BBC has nine TV channels, ten national radio stations and a major online presence. The consultation paper will look at whether this particular range of services best serves license-fee payers and the impact it has on the commercial sector, given the current and future media environment.

Also being evaluated is the way in which the BBC is funded. The current license fee brought in £3.7 billion ($5.8 billion) last year. However, there are some issues, including the fact that it is not adjusted for different household incomes and that more people are able to access TV online without a license. The charter review will look at how to modernize the current system.

The BBC's governance and accountability is a talking point as well. The BBC Trust, which is established by the current Charter, represents license fee payers and holds the BBC to account. There are three proposed alternatives on the table: to reform the Trust model, create a unitary board and a new standalone oversight body or move external regulation to Ofcom.

Secretary of State for Culture, Media and Sport, John Whittingdale MP, said: "The BBC is at the very heart of Britain. It is one of this nation’s most treasured institutions—playing a role in almost all of our lives. Ten years ago, the last time the government ran a Charter Review, the media landscape looked very different. The BBC has adapted to this changing landscape, and remains much-loved by audiences, a valuable engine of growth and an international benchmark for television, radio, online and journalism.

"However we need to ask some hard questions during this Charter Review. Questions about what the BBC should be trying to achieve in an age where consumer choice is now far more extensive than it has been, what its scale and scope should be in the light of those aims, how far it affects others in television, radio and online, and what the right structures are for its governance and regulation."

The BBC issued a response, which said: "The BBC is a creative and economic powerhouse for Britain. The starting point for any debate should be—how can a strong BBC benefit Britain even more at home and abroad? The BBC has embraced change in the past and will continue to do so in the future, and we will set out our own proposals in September.