MPs Say the BBC Should Stop Overpaying for Overseas Hits and Reform the Licence Fee

A cross-party group of MPs has said the BBC should change how it is funded and stop paying over the odds for overseas shows.

The House of Commons culture and media committee, which scrutinises broadcasting, published a report on the BBC's funding and future. BBC The committee is chaired by Dame Caroline Dinenage.

What MPs said about bought-in shows

On bought-in programmes, the committee said the BBC could "spend more wisely when competing for programming". Dame Caroline said the BBC should stop outbidding commercial rivals for overseas hits such as Suits, Schitt's Creek and Scooby Doo. The committee said the BBC bought those rights after contracts with other networks or streaming services expired. It said the BBC should not pay over the odds for overseas content, particularly in a bidding war against commercial UK broadcasters. It said paying over the odds does not provide value for money for the licence fee payer.

The BBC said it spends less than 5% of its content budget on acquiring shows.

What MPs said about the licence fee

On funding, the committee said the current TV licence fee is outdated and no longer fit for purpose. It said reform is needed to avoid "managed decline". MPs noted about 94% of individuals use the BBC each month but only 80% of households pay for a TV licence. The committee said the levy should be reformed so it is no longer linked to watching live TV or to owning a particular device such as a television set.

What happens next

The report was published as the government considers options for the next BBC Royal Charter, the agreement that sets governance, regulation and funding from 2028 onwards. Ministers said nothing in the committee's findings binds that process.

The broader context here is that the timetable still gives the report weight for Charter negotiators, and two pressures now sit together. The first is how to sustain a levy collected by law when almost everyone uses the BBC and fewer pay. The second is how the BBC spends that income when commercial broadcasters and global streamers bid for the same catalogue. For the 2028 settlement, the committee framed the choice as efficiency and legitimacy: spend in ways rivals cannot easily copy, and place the levy on a footing that does not depend on live viewing or set ownership.