BBC boss supports ‘reform’ to funding of broadcaster

BBC director-general Tim Davie has said he supports “reform” in the way the corporation is funded.

The Government is reviewing the BBC’s Charter, looking at how it should be funded, after committing to increasing the licence fee in line with inflation each year until 2027.

In April, there was a rise from £169.50 to £174.50 in the household charge, after years in which the licence fee was first frozen and then increased at a slower rate than the BBC expected, leaving the corporation increasingly cash-strapped amid rising inflation.

At the Media and Telecoms 2025 and Beyond Conference, from Enders Analysis and Deloitte, in London on Tuesday, Mr Davie said: “I want to justify the value that we have. I want that protected.

“I think there is reform (needed) in terms of potential (changes to the) licence fee, how progressive it is, and you’ll debate the enforcement question.”

Cuts

He added that he does “not want the same system” in the future, but said: “I do want universal funding, and I want a proper investigation of begrudging, grinding cuts that we’ve seen over the last 10 years, which has just not helped.”

Mr Davie also told the event, at Convene Sancroft in the St Paul’s area, that he is concerned about the people who “don’t care” about the BBC and are “disengaged”, rather than people who criticise the corporation.

He said he wants to “celebrate the fact that people care”, as the BBC features heavily on “front pages” in the UK.

Mr Davie also indicated he was positive about the use of artificial intelligence (AI), before saying the BBC has “very big ambition around the media supply chain” including the “need for muscular partnerships with the big American technology companies”.

Competition

In another session at the same conference, Kevin Lygo, managing director of ITV’s media and entertainment division, spoke about the need for “prominence” for the UK’s national broadcasters amid their increased competition with streaming companies.

He said: “I think you have to go back to first principles, because all this discussion is based on the programme itself being worth watching. So I think that’s the key for major broadcasters is to never lose sight of making them.”

Mr Lygo also appeared to confirm that the hit ITV drama Mr Bates Vs The Post Office, which shone a greater spotlight on the Horizon IT scandal, is starting to become a commercial success, following multiple actors, including Toby Jones, saying that they took a pay cut to be on the show.

Mr Lygo said it is “harder and harder to find the budgets”, and admitted that at first, it was difficult to explain a series “about a computer hitch in the British Post Office” to foreign buyers.

“The UK is in this wonderful position when a show really works in the UK, everybody across the world knows about it and wants a piece of it,” he said.

“So, yes, I’m sure, I don’t know exactly (the profit) by the production company, but I’m sure they’ve got their investment back.”