The BBC deserves respect from the government of the day

The BBC is more important to the UK than the government of the day. That is why the plan by the current government to freeze the licence fee, and eventually scrap it in 2027, is a matter for the entire country. Indeed, given the importance of the BBC as a trusted news source – according to a survey by Ipsos Mori, it is the most trusted in the UK – any change to its funding should be approached with the greatest care.

It ranks high up in global terms, too. For example, last year it was ranked No 2 after the Associated Press in the AllSides ratings. So this is a matter of huge importance for the UK, but also a matter of importance for the world.

The current plan by the government has two elements that should be considered separately. Freezing the licence fee will probably be a popular move, but that does not mean it is right, either for the BBC itself or for the country as a whole.

The BBC is a huge organisation; on some measures, it is the largest news-gathering enterprise in the world. It has many advantages over other media companies, notably that a large part of its income comes from the licence fee and is therefore predictable a year or more in advance. And inevitably, it pays its stars what many people would consider outrageous wages. But if you look at what it seeks to do, its total revenues, including from commercial sources, are not so substantial. It is competing against the American giants such as Netflix and, more recently, Amazon.

There are two further points. One is that the proposal to freeze the licence fee comes at a time of high inflation. So the cut in real income is of the order of at least 5 per cent a year. Doubtless there are savings to be made, but we should be aware that a cut in real terms will deliver a hit to the quality of its output.

The other is that this is political. The culture secretary, Nadine Dorries, has made clear her disdain for the corporation, and the government is known to be angry with what it sees as biased coverage. This move could be considered a punishment.

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The second issue is the longer-term funding of the BBC. This is hugely complicated. On the one hand, it is hard to justify people paying a fee for a television service that they rarely watch. However, for those who do watch it – particularly older people – it gives very good value for money.

One of the BBC’s problems is that younger people are watching less and less television, full stop. The BBC is not only competing against Netflix: it is competing against YouTube, Instagram, TikTok, and so on. This competition will grow, and as it does, the entire concept of a licence fee will look increasingly archaic.

What the BBC needs is a thoughtful, helpful conversation about its future. It needs to recognise that it has flaws, as many of its staff would acknowledge, and must tackle these. Its new leadership is making efforts to do so. The government needs to recognise that it is a huge national asset – an arm of the UK’s soft power – and that as such it should be respected and nurtured.

They need to talk in a constructive way. The present approach is not constructive at all, and the ultimate loser will not be the government or the BBC. It will be the people of the UK.