The BBC Trust should be scrapped with regulation of the corporation handed over to Ofcom, a review commissioned by the Government has concluded.
The principle of self-governance, which has contributed to numerous crises during the BBC’s history, should be ended, according to Sir David Clementi, who recommends that the BBC Trust, the BBC's governing body, is replaced with a unitary board.
The former deputy governor of the Bank of England, Sir David concluded that regulatory oversight of the BBC should be passed wholly to Ofcom.
Ofcom should issue the BBC an “Operating Framework”, consistent with a revised Royal Charter and Agreement, which would set out the obligations placed on the BBC.
The new Operating Framework should include “Operating Licences” which would set out the BBC's broadcasting content and distribution obligations, including services for the Devolved Nations.
The current Charter expires at the end of this year and John Whittingdale, the Culture Secretary, is consulting on a replacement.
The revised Charter should “place on the BBC a duty to consult with the public both as consumers and as Licence Fee payers,” Sir David found.
The BBC should have a clear “Broadcaster First” system of complaints where it handles complaints in the first instance with Ofcom handling appeals on editorial issues.
The Trust was privately deemed unfit for purpose by ministers following the Jimmy Savile sex abuse scandal and rows over excessive BBC executive payoffs and salaries.
Sir David Clementi said: “Following consultation with a wide range of interested parties, and a detailed assessment of the options, I have concluded that there should be a fundamental reform of the system of governance and regulation for the BBC.
“The BBC Trust model is flawed. It conflates governance and regulatory functions within the Trust. The BBC should have a unitary Board charged with responsibility for meeting the obligations placed on it under the Royal Charter and Agreement, and responsibility for the interests of Licence Fee payers.
Sir David added: “Regulatory oversight should pass wholly to Ofcom, which is already the public service regulator for the UK’s broadcasting industry and has the ability to look at the BBC in the context of the market as a whole. Ofcom would be a strong regulator to match a strong BBC.”
Rona Fairhead, chair of the BBC Trust, has accepted that the body should be scrapped and replaced with some form of external regulator that ended the blurred responsibilities between the governing body and management.
Ms Fairhead said: “Sir David Clementi proposes a strong BBC board and a strong external regulator – a change we have argued for. It will be important to get the details right, and we now want to work with the Government to ensure roles are clear, the structure is effective and the BBC’s independence protected.”
Sir David has presented his report to Mr Whittingdale, who is set to reveal his conclusions in a White Paper in May.
