The BBC could face a cut in the licence fee or even have to compete with other broadcasters for a share of the money unless it rebuilds public trust and becomes more transparent, a senior Conservative minister has suggested.
Tory chairman Grant Shapps told a Sunday newspaper that the BBC must tackle a culture of secrecy and waste in the wake of the Jimmy Savile and Stuart Hall scandals and rows over stars’ salaries and pay-offs to senior executives.
He said there was a “question of credibility” for the BBC over whether it applied “fairness” to its reporting of politics.
With the BBC’s royal charter coming up for renewal in 2016, Mr Shapps suggested that there were “lots of different ways” in which licence fee-payers’ money could be used to fund public service broadcasting.
He said that the £145.50 annual fee would be “too much” if the BBC failed to reform.
Mr Shapps is not a full Cabinet member but attends the weekly meetings in 10 Downing Street in his role of minister without portfolio, and is regarded as a rising star in David Cameron’s team.
He made clear Conservative frustrations with the current operation of the BBC.
“They have ended up working in this culture which is buried in the last century, which is ‘we are the BBC, we do what we like, we don’t have to be too accountable’,” he said.
“But they are raising £3.6 billion through the licence fee, which is a tax, and, quite rightly, the public wants to have sight of how the money is spent. Things like the pay-offs have really caused concern, as have, obviously, things like Savile and Hall and the culture that goes around that. I think it is one of too much secrecy.”
Deputy Labour leader Harriet Harman said Mr Shapps was absolutely wrong and called for the BBC to resist pressure from Downing Street in the lead-up to the Royal Charter review.
Ms Harman said the Government was blaming the BBC for reporting its own failings.
She told the BBC’s Andrew Marr Show: “I think it’s absolutely wrong. He’s the chair of the Conservative Party and this has not come from the Culture Secretary Maria Miller and I’m sure she wouldn’t be doing that.”