Theme: Society & Culture | Content Type: Journal article

BBC Funding: Much Ado about the Cost of a Coffee a Week

Patrick Barwise

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Nathan Dumlao

| 1 min read

BBC funding (the licence fee model and the funding level) has been turned into a big issue out of all proportion to the low financial stakes—equivalent to the cost of one takeaway coffee a week for the whole household, excluding those with free TV licences. This article first proposes and explores three possible reasons for all the fuss: that licence payers take the BBC for granted, underestimating the value they get from it; that the attacks on BBC funding are part of a wider ‘war’ against it, driven by commercial or political vested interests; and that at least some of the criticisms of the licence fee reflect genuine, although much exaggerated, disadvantages. The article then evaluates four alternative funding models: advertising, subscriptions, general taxation and a universal household levy. It argues that the best long-term model would be a flat, universal household levy, with exemptions for those least able to pay, as in Germany, with the funding level set by an independent body organised by Ofcom; and that, because the licence fee is becoming harder to sustain, this new funding model should be introduced at the start of the next BBC Charter in January 2028.

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    Patrick Barwise

    Patrick Barwise is Emeritus Professor of Management and Marketing at London Business School and Chairman of the Archive of Market and Social Research.

    Articles by Patrick Barwise
Volume 96, Issue 4

Latest Journal Issue

Volume 96, Issue 4

Includes a broad range of other articles including 'Nigel Farage is no Ramsay MacDonald: Comparing the Rise of Reform with the Rise of Labour' by Ben Jackson, 'Are the Rights of Nature the Only Way to Save Lough Neagh?' by Laurence Cooley and Elliott Hill, and 'Modernising the House: Why the 2024 Parliament Highlights the Need to Formalise Party-Group Rights in the House of Commons' by Louise Thompson. Reports include 'Before the Boil: Addressing the UK's Living Standards Crisis' by Alfie Stirling, and 'Understanding Inequality in the UK: What Can We Learn from the Deaton Review?' by Indranil Dutta. Finally, there is a selection of book reviews such as Mary Dejevsky's review of Everyday Politics in Russia: From Resentment to Resistance, by Jeremy Morris, and Donald Sassoon's review of One Day, Everyone Will Have Always Been Against This, by Omar El Akkad.

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