Draft BBC Charter Published

The Government published its draft Royal Charter and framework agreement on the BBC on Thursday 15^th September.

The draft Charter is broadly consistent with Government’s White Paper and reflects a number of concerns raised by commercial radio – on market impact, distinctiveness and regulation of the BBC.

Some of the main headlines are included below:

• Distinctiveness – The need for distinctiveness features explicitly in the BBC’s new mission statement and public purposes for the first time.
• External regulation – The BBC Trust will be abolished with regulation passing to Ofcom and governance to a new BBC unitary board (although a majority of non-exec directors will be appointed by the BBC).
• Operating licences – Ofcom will establish a new regime of operating licences for BBC services (with a specific requirement to strengthen distinctiveness in radio  –  by considering the emphasis on UK talent, new and distinct music, public service content on R1 and R2 and clearer average age targets).
• Sanctions – Ofcom will have the power to fine the BBC if it fails to meet specified requirements.
• Market impact – Ofcom will regulate commercial activity and have the final say on market impact of BBC services.
• Cross-promotion – Self-promotion of BBC content will need to focus on output ‘contributing substantially’ to its mission or public purposes of the BBC.
• Digital radio – BBC should take a leading role in supporting the growth of digital radio.
• Independent production – A minimum of 60% of BBC radio content will be open to independents by end of 2022.

The document also addresses many other issues – including talent pay (publishing salaries over £150k) and a commitment to diversity.

The Charter is now expected to receive Royal Assent by the end of 2016, although the new regulatory structure will not be in place until 3 April 2017.