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 2

Latest Journal Issue

Volume 96, Issue 2

This issue features a collection titled 'Governing from the Centre Left' edited by Deborah Mabbett and Peter Sloman. In this collection, authors including Claire Ainsley, Jörg Michael Dostal and Eunice Goes examine how centre-left governments in North America, Australasia, and Western Europe have dealt with recent global pressures, and consider what lessons the UK Labour government should learn from its overseas counterparts. Other articles include a commentary by Ben Jackson titled 'Poverty and the Labour Party'; John Connolly, Matthew Flinders and David Judge on 'How Not to Deliver Policies: Lessons in Undeliverability from the Conservative Governments of 2019–2024'; Stewart Lansley on 'Wealth Accumulation: The Good, the Bad and the Ugly'; and Coree Brown Swan, Paul Anderson, and Judith Sijstermans on 'Politics and the Pandemic: The UK Covid-19 Inquiry and Devolution'. A selection of book reviews feature Victoria Brittain's review of 'Palestinian Refugee Women from Syria to Jordan, Decolonizing the Geopolitics of Displacement' by Afaf Jabiri, and Anna Coote's review of 'The Care Dilemma: Caring Enough in the Age of Sex Equality', by David Goodhart.

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