Pact chief backs calls for BBC licence fee to be replaced by household levy

CREATIVE CITIES: Newly installed Pact CEO Nigel Warner has backed the introduction of a universal household levy as an alternative to the current BBC licence fee funding model, as part of the UK public service broadcaster’s ongoing charter review.

Nigel Warner

Warner, who took over from John McVay OBE as head of the UK producers’ trade body, was making his first industry speaking appearance at the Creative Cities Convention in Liverpool this week. He also called for a more “open” debate on sustainable future funding for the BBC.

In its submission to the government’s green paper on the BBC’s royal charter review, Pact has detailed how reform of the licence fee will be necessary to offer “long-term security and certainty to enable the BBC to make investment and commissioning decisions.”

Pact believes universality must be maintained as a key principle, which will allow public service broadcaster programmes to be available to everyone, free at the point of use.

It argues a ‘lower fee, wider net’ universal household levy would provide a “more stable, progressive and platform-neutral public funding model” and would keep the BBC as a shared national utility. Pact pointed to international models, such as in Germany, Italy and Norway, as evidence that such an approach can be “implemented in a range of practical ways.”

Pact said it also recognises the attraction of a perpetual charter as another way to mitigate uncertainty for the BBC and sees merit in moving towards this kind of system, as backed by new Channel 4 CEO Priya Dogra at Creative Cities this week.

However, BBC executives must be held to account and know that there is some mechanism that clearly has authority to make changes to the corporation, it added.

It comes ahead of the publication of Pact’s full submission to the government’s Green Paper on the BBC Charter Review, which has seen the BBC acknowledge that its funding model requires substantial reform.

Commenting on its submission, Warner, said: “Pact supports the introduction of a household levy to make the BBC sustainable for the longer term. The debate on this should be open, not closed down at the outset.

“We need to be realistic about what can be done in the time the government has left on this charter, but public engagement in an open and frank conversation is essential. Pact also supports a perpetual BBC charter, but the BBC must continue to be held accountable to parliament, the public and regulators.”