Ofcom to take charge of BBC

Corporation's trust to be axed as communications watchdog gets beefed-up role to rule on impartiality and value for money

A television camera outside BBC Broadcasting House in central London Photo: PA

By Christopher Williams

10:46PM BST 25 Jun 2015

The BBC Trust will be axed and its powers handed to the communications regulator Ofcom, Westminster sources have revealed.

For the first time in the broadcaster’s nearly century-long history, it will be governed by an external body, as part of the renegotiation of the BBC Charter.

The move is expected to be signalled in a Green Paper that will formally trigger Charter renewal negotiations within weeks.

It comes after John Whittingdale, the new Culture Secretary, insisted that he does not have a “vendetta” against the corporation but warned that it needed a “very robust system in place” to deal with issues of impartiality.

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_{John Whittingdale MP (JULIAN SIMMONDS)}

The move will mark a partial rejection the proposals of Rona Fairhead, the chairman of the Trust, who earlier this year suggested the it should be replaced with a new “bespoke” body dedicated to regulation of the BBC.

Ministers are instead planning an expanded remit for Ofcom, which also acts as the watchdog for the telecoms and commercial media industries.

The Government is understood to believe that Sharon White, Ofcom’s recently installed chief executive, has the necessary independence and cross-party support to take on politically sensitive oversight of the BBC.

Negotiations towards the renewal of the BBC Charter have not begun formally, but a source close to the Government’s plans said “you can put your mortgage on it”, referring to abolition of the BBC Trust and expansion of Ofcom’s remit.

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The task would include regulating editorial standards, reviewing value for money and monitoring the BBC’s impact on the market.

The plans are understood to have the support of the Chancellor, who has publicly praised Ofcom’s oversight of commercial broadcasters such as ITV.

Ms White previously worked as a senior civil servant in the Treasury.

_{Sharon White is the first woman to run Ofcom}

It is understood that the document will otherwise provide a starting point for discussion rather than firm proposals, but Westminster sources confirmed that at a freeze in the licence fee is the best the BBC can hope for financially.

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The Government is also understood to be considering shortening the length of the BBC Charter from 10 years to five to make its funding model more flexible amid the rapidly shifting media landscape.

Since its creation less than a decade ago, the BBC Trust has been criticised for handing out over generous payoffs for departing executives.

The Trust has also been condemned for its role in investigating the Jimmy Savile scandal, and for making false allegations against Lord McAlpine.

The body’s trustees have come under fire for holding other high-profile jobs.

Ms Fairhead faced calls to resign over her directorship of HSBC, in light of tax evasion allegations surrounding its private banking arm.

Campaigners said the BBC Trust’s vice-chairman Roger Carr should be ousted over his chairmanship of the arms giant BAE Systems.

The BBC was accused of “left-wing bias” during the months leading up to the general election, with senior Conservative sources repeatedly saying that its coverage favoured Labour’s campaign.

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_{BBC Director-General, Tony Hall}

Lord Hall, the director-general of the BBC, said at the weekend that the licence fee could be replaced with a “household tax”, which would help protect funding as more people abandon traditional broadcasts in favour of

streaming online. Watching BBC programmes via the internet does not require a TV licence unless it is simultaneous with broadcast.

The idea of a universal levy rather than a licence fee is under consideration but Ministers fear it could leave the Government open to criticism for raising taxes, sources said.

Ministers are also understood to be considering whether the BBC could enjoy a new source of funding worth hundreds of millions of pounds by charging pay-TV operators, led by Sky and Virgin Media, for access to its channels.

ITV and Channel 4 haves been campaigning for such payments, known as retransmission fees, but the BBC has stayed out of the debate, fearing it could be accused of wanting to charge viewers twice.

The future of the BBC lies with the Government at the end of the charter review process. The current charter expires at the end of 2016.

The charter renewal process could see significant changes to the “regressive” £145.50 TV licence, Mr Whittingdale has indicated.

A BBC Trust spokesman said: “We aren’t going to comment on speculation and these issues will be debated as part of Charter Review. The important principle is that the BBC’s independence is protected.”

A DCMS spokesperson said: "Ministers are currently considering a range of options for how Charter Review will be conducted and an announcement will be made in due course. There is no set process, but of course we are determined to conduct a robust and thorough process, with significant opportunities for the public to contribute."