The BBC should stop paying over the odds for overseas programmes and do more to support the UK’s production sector and creator economy, MPs have said in a report calling for an overhaul of its funding.
The cross-party committee warned that the broadcaster faces “managed decline” without reform, while questioning the value of competing with commercial UK broadcasters for international hits.
Its report comes as the government considers the BBC’s next Royal Charter, which will set out how the corporation is governed, regulated and funded from 2028.
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The intervention follows the NUJ’s warning, reported by Prolific North last week, that further cuts across BBC Sport, Local and the nations risk creating a “doom spiral”, with declining services making public funding harder to justify and triggering further reductions.
MPs singled out acquisitions including Suits, Schitt’s Creek and Scooby Doo, whose rights were bought by the BBC after deals with other broadcasters or streaming services expired.
“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 said.
The BBC said acquisitions account for less than 5% of its content budget and provide a cost-effective way to attract audiences who can then discover homegrown programming.
The scrutiny comes against a backdrop of reductions in domestic commissioning. Prolific North reported in June that the BBC planned to reduce commissioning spend across Content, News and Nations by around £80m in 2027–28, alongside proposals to cut around 550 roles and review its television and radio portfolio.
For independent producers, the MPs’ report calls for constructive talks with the BBC over rights that currently prevent parts of its back catalogue from appearing on iPlayer. A solution should help the platform compete while continuing to support the independent production sector, particularly smaller companies across the UK.
The committee also wants the BBC to develop its existing premises with facilities supporting new media and the creator economy, alongside continued investment and decision-making across the country.
Committee chair Dame Caroline Dinenage said: “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 report describes the current licence fee as “outdated and no longer fit for purpose” and recommends removing its link to live television viewing or a particular device.
MPs noted that around 94% of individuals use the BBC each month, while only 80% of households pay for a TV licence. They suggested widening the payment base could be paired with a reduction in the individual cost.
The findings follow a separate intervention from the House of Lords Communications and Digital Committee, covered by Prolific North on September 18. Peers urged an ambitious approach to Charter renewal but warned that any additional responsibilities must come with adequate funding or an acknowledgement that the BBC would have to do less elsewhere.
Other recommendations in the MPs’ report include opening iPlayer to programmes from fellow public service broadcasters such as Channel 4, securing greater prominence for British public service content on YouTube and introducing a BBC button on smart TV remote controls.
The committee also called for a permanent Royal Charter, an end to political appointments to the BBC board and the government to resume full funding of the World Service.
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 government said it would consider the recommendations alongside views from the public and other stakeholders before deciding on the next Charter.
