The BBC is facing mounting financial pressures as more viewers evade or cancel their TV licence, with potential lost income exceeding £1.1 billion in 2024/25, according to a parliamentary report.
The Public Accounts Committee (PAC) has warned that the broadcaster must set out clear plans to attract younger audiences amid intense competition from other media providers.
The PAC highlighted that the BBC’s mission to “serve all audiences” is at risk, particularly as younger viewers increasingly consume content elsewhere. The report also cautioned that the corporation’s digital-first strategy could marginalise older or less digitally connected audiences.
Sir Geoffrey Clifton-Brown, Conservative chair of the PAC, described the BBC as “an organisation under severe pressure.” He added that the report provides “a snapshot of the BBC’s efforts to deliver value for money as it seeks to thrive in an increasingly fragmented media landscape.”
The report criticised the BBC for not doing enough to enforce licence fee collection, describing it as unfair to households that pay. Licence fee evasion, combined with households not purchasing a licence, accounted for over £1.1 billion in potential lost revenue. The PAC urged the broadcaster to digitise the licence fee system to improve customer engagement and efficiency.
The report also called on the BBC to provide greater transparency regarding its commercial investments, including targets and actual returns, recommending annual reporting on these activities.
Concerns were raised about regional services, with the PAC noting that moves to hubs in Manchester or Birmingham could overlook smaller communities. Reforms such as restructuring regional news and changes to the local democracy reporting service “may have unintentionally diluted the BBC’s connection with the communities it aims to serve.”
The committee highlighted the BBC’s lag in developing new intellectual property, which could limit long-term revenue. Using the children’s series Bluey as an example, the report urged the BBC to prioritise generating fresh content that can drive commercial value.
The report noted that only 51% of younger viewers feel the BBC reflects them, and their overall use of BBC services remains lower than older age groups. It stated: “With audiences now able to access an unprecedented range of content from a variety of providers, the BBC faces intense competition for attention. Its digital-first strategy is an important response and there are promising signs of innovation, such as using platforms like TikTok to share news content with new demographics. However, this shift also carries a risk: those without reliable digital access could find themselves excluded from core BBC services.”
Sir Geoffrey Clifton-Brown said: “Our report shows that without a modernised approach focused more on online viewing, the broadcaster will see faith in the licence fee system ebb away. Similarly, while efforts to distribute itself more equitably across the nation are welcome in principle, the BBC must ensure that greater distribution does not equal greater dilution of the authentic local quality of its coverage.”
The PAC report underscores the need for the BBC to address declining licence fee revenue, expand its appeal to younger audiences, and modernise its digital and regional strategies to remain relevant in a rapidly changing media landscape.
