MPs set out BBC Charter Review proposals
October 1, 2026

By Colin Mann



The BBC should explore new ways to raise revenue, make better use of its buildings to support the creator economy, and spend more wisely when competing for programming, as part of a plan to ensure it is fit for the future and able to compete with the best in the world.

The recommendations are part of what is described as a “bold” blueprint for the corporation from the Digital, Culture, Media and Sport Committee, published ahead of the Government finalising its proposals for the next BBC Royal Charter, which will set out how the broadcaster will be governed, regulated and funded from 2028 onwards.


The committee notes that amid considerable challenges faced by the BBC, including changing viewing habits and a fall in numbers paying the licence fee, the Charter review represents a fork in the road for the broadcaster, and warns that without change it will be left to managed decline.

Given the benefits the BBC brings to national life, including support for the creative economy, talent creation, social cohesion and providing trusted information that supports our democracy, this should not be allowed to happen, the report concludes.

Instead of allowing the BBC to remain in steady decline, MPs say that now is the moment to secure an ambitious and innovative national broadcaster that can meet the challenges of a changing media landscape, compete on the global stage with the dominant US giants and continue the vital role it plays at the heart of British life.

The committee makes a series of recommendations on how to maintain a means of universal funding, grow income through commercial activity and improve how the BBC operates.

The report also calls for the end of political appointments to the BBC board as part of efforts to improve governance and ensure the corporation remains an institution the public can trust. The committee says that the public want the BBC to be independent of the government, and that the government and BBC should use this Charter review to enhance the BBC’s independence, in fact and in perception.

The broadcaster must additionally play a leading role in shaping the future media landscape, the committee says, recommending that it is given new public purposes relating to innovation and technology and combatting misinformation and disinformation.

Dame Caroline Dinenage MP, Chair of the Digital, Culture, Media and Sport Committee, said: “This is a pivotal moment for the BBC. Continue along the current path and we condemn a national institution to managed decline, squandering the immeasurable benefits it brings to our economy and society.”

“For all its faults, the BBC drives our creative economy, supports our democracy through media sovereignty, and delivers world-class entertainment and moments that bring us together. Like a much-loved family member, we may criticise and grumble about the BBC but we would miss it enormously if it were no longer here for us.”

“The next Charter can provide a springboard for the BBC’s success for years to come. The government must ensure the broadcaster has a sustainable and universal source of funding, while the BBC can play its part by sweating its assets and boxing clever for the licence payer by ending illogical practices such as outbidding commercial rivals for overseas hits such as Suits, Schitt’s Creek and Scooby Doo.”

“Now is the time for the government and BBC together to grasp the opportunity to create a leaner, more efficient broadcaster that is equipped to compete on the global stage and is a beacon of trust both at home and abroad.”

The report’s proposals are based on views gathered from across the world of media and beyond, with those giving evidence to the inquiry ranging from broadcasters, journalists and writers through to the BBC Chair and Director-General, policy experts, and licence payers.

Main findings and recommendations

The fork in the road

The committee agrees with the Chair of the BBC that this Charter review represents a fork in the road for the BBC. Without change our broadcaster will be left to shrink and decline. Given the benefits the BBC brings to our national life, including investing in the UK creative economy, giving UK talent training and opportunities, enabling us to tell our own stories, social cohesion and our democracy, this cannot be allowed to happen.

This is also a moment of opportunity for us as a nation to say that we want an ambitious and innovating BBC that can meet the challenges of the ever-changing media environment, compete with global platforms, and continue its foundational role as part of British life.

Options for funding the BBC

The committee says that to preserve the BBC as an institution for the nation, we must find a means of fair but affordable funding and warns that the current TV licence fee is outdated and no longer fit for purpose. The broadcaster told the committee that, while 94 per cent of individuals were using the BBC per month, only 80 per cent of households were paying for it

The licence fee should be reformed so it is no longer linked to the consumption of live TV or to a particular device, such as a television set. This should be an easier sell to licence fee payers if expanding the base is paired with a drop in the individual cost.

BBC operational efficiency

At a time of constrained resources, the BBC should not be paying over the odds for overseas content, particularly when it’s a bidding war against commercial UK broadcasters. The committee does not believe that this provides value for money for the licence fee payer.

As the BBC leans into the creator economy across the country, it should strategically develop its current estate with facilities that can harness the potential of new media and support the creator economy.

The BBC is currently unable to put all of its back catalogue onto iPlayer because the IP is held by the independent company that made the programmes. The committee urges the BBC and the independent producers to engage constructively and find a way forward to ensure the BBC can provide a competitive offer on iPlayer for audiences; get value for the licence fee payers; and continue to support the independent production sector, particularly the smaller companies across all parts of the UK.

The BBC should explore the opportunity for developing an international TV licence so that it can maximise the potential global audience and increase its revenue.

The government should take back full funding for the BBC World Service with a view to maximising its potential. Where the BBC pulls out foreign state broadcasters, such as those from Russia and China immediately take its place. The government should see the BBC World Service for what it is; the UK’s number one soft power asset, delivering trusted news and accurate information to a global audience, and combatting misinformation and disinformation around the world.

Independence and governance

Securing the BBC’s future not only requires a strong financial basis but also measures to maintain its independence and good governance.

The committee recommends that the Charter removes both political and geographical appointments to the BBC board. The government should also consider whether the appointment of the chair of the BBC could made by an independent body, provided it was subject to the approval of the Secretary of State.

The fact that the BBC’s existence is called into question every 10 years creates an avoidable opportunity for political interference which has damaged the perception of the BBC’s independence. It also creates a disproportionate distraction for the BBC when it needs to be focused on its mission to inform, educate and entertain. The committee therefore recommends the next BBC Charter be a permanent charter and not include an end date.

Looking to the future

The committee recommends that, subject to the BBC being resourced sufficiently, the Charter gives the BBC an additional responsibility to counter misinformation and disinformation.

The challenge of providing accurate, impartial and trusted news to audiences is growing as more people access news through unregulated platforms. The BBC remains a highly trusted news provider. It must therefore continue to innovate in how and where it delivers news, so it can be found in the places where audiences are, particularly young audiences, and in formats that are appealing without losing its own values. The report recommends that the government legislate for a prominence regime specifically for trustworthy news content, including that from the BBC, on social media.

As part of a programme of interventions to support the BBC, and broader public service media, the government should legislate to put a button on the remote control for a smart TV sold in the UK that provides a short cut to public service media destinations on the user interface.

The BBC is well placed to innovate in areas where it can demonstrate public service values in its distribution, for example in the development of public service algorithms. We see value in the BBC innovating in how it fulfils the aim of meeting audiences where they are, on the platforms that they use, and in new formats, including user-generated and creator content. We recommend that the BBC be given a public purpose on innovation and technology.

The committee strongly supports the opening up of iPlayer to content from other public service broadcasters. We understand Channel 4 are in discussions with the BBC about the opportunity, which would build upon the arrangement already in place between the BBC and S4C. This is a good example of our public service broadcasters working in partnership, which we welcome.

With adequate safeguards around the protection of original content and intellectual property, we support the BBC expanding its activities on YouTube to make sure it is reaching audiences, particularly young audiences, where they are. The committee would support the BBC exploring the potential for earning revenue on its YouTube content both domestically and overseas, as it does with its other international commercial activities.

The report recommends that the government continue to press YouTube to agree a prominence regime that works for the BBC and other UK public service broadcasters.

The BBC has welcomed the report, suggesting it made some “important and interesting recommendations” on the future of the corporation.

A BBC spokesperson said: “We have consistently argued that the current funding model is outdated and needs reform, so we welcome the Committee’s support for maintaining universal funding while overhauling the licence fee.”

“We are also pleased to see their recognition of the vital work of the World Service, with a clear recommendation that responsibility for funding should return fully to Government.”

“At a time of huge disruption in the media, the BBC’s trust, reach and creative strength remain unparalleled. But we also recognise the need to evolve and move faster towards the future.”

The Department for Digital, Culture, Media and Sport (DCMS) said it “agrees entirely with the Committee’s conclusion that it is in the country’s best interests for the next Charter to support an ambitious and innovative BBC, and that the corporation cannot be left to a future of managed decline”.

“We will review and consider the committee’s recommendations in detail, alongside the views of the public and other stakeholders, to inform decisions for the next Royal Charter,” added a DCMS spokesperson.