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 97,  Issue 1

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Volume 97, Issue 1

Contains a collection on the politics and policy of housing, edited by Christine Whitehead, Colm Murphy and Deborah Mabbett. This collection features contributors from geography, economics and politics, and from universities, think tanks, and independent academics. Contributors debate the roots of the housing crisis and illuminate housing policy dilemmas in the UK and elsewhere. Other articles in the issue include 'What Will it Take for a Woman to Become President of the United States?' by Rosie Campbell and Joni Lovenduski, and 'Unity and Division in the Public's Policy Preferences After the 2024 General Election' by Lotte Hargrave. In our Reports section, Darcy Luke and Nathan Critch explain what's wrong with Demos's report 'The Human Handbrake'. Finally, book reviews include Tim Bale's analysis of Conservatism, Christian Democracy, and the Dynamics of Transformation, edited by Gary Love and Christian Egander Skov.

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