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 2

Latest Journal Issue

Volume 95, Issue 2

Includes a collection edited by James Hampshire on Immigration and Asylum Policy After Brexit, exploring how recent immigration and asylum policies reflect the ambivalent, unstable and unresolved meanings of Brexit itself. There are a wide range of other articles including 'A Hundred Years of Labour Governments' by Ben Jackson; and 'The Good, the Not so Good, and Liz Truss: MPs’ Evaluations of Postwar Prime Ministers' by Royal Holloway Group PR3710. Reports and Surveys include 'Addressing Barriers to Women's Representation in Party Candidate Selections' by Sofia Collignon. Finally, there is a selection of book reviews such as Nick Pearce's review of When Nothing Works: From Cost of Living to Foundational Liveability, by Luca Calafati, Julie Froud, Colin Haslam, Sukhdev Johal and Karel Williams; and Penelope J. Corfield's review of The Identity Trap: A Story of Ideas and Power in Our Time, by Yascha Mounk.

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