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MPs tell BBC to stop outbidding rivals for US shows and overhaul 'outdated' licence fee

The Digital, Culture, Media and Sport Committee's charter-review blueprint says the licence fee is no longer fit for purpose, urges a cheaper fee no longer linked to TV ownership, and calls on the BBC to stop outbidding commercial rivals for hits like Suits and Schitt's Creek.

The Palace of Westminster at dusk, seat of the MPs' select committee behind the BBC charter report
Photo: Maurice, via Wikimedia Commons (CC BY 2.0)

The BBC should stop outbidding commercial rivals for overseas hits such as Suits, Schitt’s Creek and Scooby Doo, and the television licence fee should be reformed so it is no longer tied to owning a TV set, MPs have recommended in a “bold” blueprint for the broadcaster’s future.

The Digital, Culture, Media and Sport Committee published its charter-review report on Thursday, ahead of the government finalising proposals for the next Royal Charter, which will set how the BBC is governed, regulated and funded from 2028. The committee warns the current licence fee is “outdated and no longer fit for purpose”: while 94 per cent of individuals use BBC services each month, only 80 per cent of households pay for them. Reform should widen the payer base and be paired with a drop in the individual cost.

Committee chair Dame Caroline Dinenage MP said the charter review is a “fork in the road” for the BBC, warning that without change the corporation faces “managed decline”. The report calls for an end to political and geographical appointments to the BBC board, a permanent charter with no end date, full government funding for the World Service — described as the UK’s “number one soft power asset” — and new public purposes covering innovation and combating misinformation.

Other proposals include exploring an international TV licence, earning revenue from BBC content on YouTube, opening iPlayer to other public-service broadcasters, and legislation putting a public-service shortcut button on smart-TV remote controls.

More on this topic: all UK Broadband stories

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