The Government’s Green Paper on the next BBC Charter has received renewed attention of late, following the Lords select committee publication last week. On Ofcomwatch we’ve had recent posts by Russ and Don Redding, giving different views on the debate over the BBC Trust. I’ve just set out some thoughts on the Government’s proposals in a short paper (4-page PDF) available from: http://www.reckon.co.uk

The paper is not intended to promote any particular ideology as to how the BBC should be run or what it should do. Instead it picks up on something that seems to have been neglected so far in the Charter review process: the fact that State aid law constrains the type of governance arrangements that can be set for the BBC.

A consideration of the Government’s proposals for the BBC Trust and service licences in the light of State aid law has rather more interesting results than I had expected. Whether by design or mistake, the Government’s proposals would appear to spell the end for the BBC.

Specifically, to secure continued compliance with State aid rules, the proposed governance model could make it necessary for BBC editors and programme-makers to become more like contractors, with all real decisions on service delivery resting with the BBC Trust. This would dramatically reduce the scope for bottom-up creativity within the BBC a core feature of that institution. It may also be necessary for the BBC Trust to consider engaging third parties, such as Sky, to deliver some services funded by the licence fee. In other words, the Government’s proposals could enable contestable funding for the BBC licence fee income through the back door.

State aid law means that the reform of the BBC proposed by the Government could result in much more significant change than envisaged in the Green Paper.