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 95, Issue 4

Latest Journal Issue

Volume 95, Issue 4

This issue features a collection 'Responding to Rachel Reeves' Mais Lecture', in which authors including Dan Corry, Aveek Bhattacharya and Kira Gartzou-Katsouyanni give their analyses of the Chancellor of the Exchequer's statement of economic policy given before Labour came to power. In addition there is a collection featuring Geoffrey M. Hodgson, Abby Innes and Gavin Kelly responding to Michael Jacobs' assessment of today's global 'polycrisis'. Other articles include Philippe Marlière's assessment of why French social democracy is in turmoil; and Helen Margetts, Cosmina Dorobantu, and Jonathan Bright's piece on building progressive public services with artificial intelligence. A selection of book reviews feature Dick Pountain's review of Left Is Not Woke by Susan Neiman, and Helen McCarthy's review of The Solidarity Economy: Nonprofits and the Making of Neoliberalism after Empire by Tehila Sasson.

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