David Mundell

I absolutely agree with my hon. Friend, and throughout my speech I will make the point that nobody should be required to pay to watch television. As he said, it is particularly an issue in rural areas, where broadband services can be extremely patchy and speeds highly variable. In more urban and suburban areas, broadband outages are also far from uncommon. Terrestrial TV has a reliability of close to 99%, which broadband does not. Almost half—45.1%—of broadband customers experienced an outage lasting more than 48 hours in the past year. Indeed, Biggar and the surrounding communities in my constituency experienced an outage of 36 hours. Even as high-speed coverage increases through initiatives such as Project Gigabit, take-up is entirely a different matter. Research from the consultancy EY estimates that by 2040, some 5.5 million premises will not have taken up a high-speed fixed broadband subscription. Today, some people cannot access fixed broadband because the signal where they live is not fast or reliable enough. Other people simply cannot afford to pay for fixed broadband subscriptions on top of other bills. Millions of people are relying exclusively on mobile for access to the internet. Indeed, data from Citizens Advice suggested that, in 2022 alone, up to 1 million people cancelled their broadband subscription because of the high cost of living. That is why terrestrial TV remains essential—because it is universal. Indeed, it is the guarantee of universalism in British broadcasting, and that is a priceless asset. For terrestrial TV to provide that bedrock guarantee of universal access, complementing internet streaming, gives the UK the best of both worlds. It is a hybrid model that is so much more robust than putting all our eggs in one basket and relying on a single point of failure. In addition, the service remains hugely popular and widely used. More than 80% of BBC and ITV content is watched on linear broadcast TV—that is, live on channels such as BBC One or ITV2. Of that viewing, about half—a huge amount—is through terrestrial TV. Indeed, it remains the main way TV content is consumed in the UK. The reason why we are having this debate today is that despite being a widely used and, in my view, essential service, it is currently under threat of being switched off within a decade. The licences that support terrestrial TV expire in 2034, and the Government have so far not provided a long-term commitment. Yet there is no need to consider switching off terrestrial TV in the mid-2030s, be that for political, technological or financial reasons. The Government have the opportunity to announce that they support terrestrial TV’s role for the longer term. Nobody, or not very many people, is suggesting that the BBC should be switched off when its current charter concludes in 2027. The projections suggest that terrestrial TV will continue to make a crucial contribution and serve millions of viewers well past that date. However, there are some voices calling for an end to terrestrial TV by the mid-2030s and a transition of all viewing to online streaming only. The BBC director general, Tim Davie, recently said as much, and there are those in parts of the broadcast and telecoms sectors who would certainly welcome it. Ministers have a decision to make, and I am delighted to see this Minister with us today to respond to the debate. I know she encourages debate and discussion on this issue, and I particularly congratulate her on tackling the issue head-on with the forum that she has convened on the future of TV distribution. I hope that, in her remarks later, she will be able to tell us more about the work of the forum and how it will feed into her decision making, as well as about the timescales she anticipates for that. I know from my meetings with ITV and Sky that broadcasters are eager to hear from the Minister too. This issue has flown a bit under the radar so far, and any decision could have profound consequences for people across the UK. Indeed, the principal reason why we are having this debate is to raise awareness about the potential end to terrestrial TV, which is too little understood. Recent research from the Digital Poverty Alliance, which I commend to Members, revealed that 69% of the public were completely unaware that the future of terrestrial TV was under threat at all, and 73% of people polled believed that terrestrial TV should be protected well beyond 2035. That is really my message today—any talk about a switch-off of terrestrial TV in the 2030s is completely premature and unrealistic. The Government have the opportunity to take that possibility off the table and give certainty for the service into the 2040s. We could use various analogies to exemplify the point about a hybrid model of delivery being best. I would make the analogy with the debate about access to cash, on which I have long campaigned. The creeping withdrawal of banks and free cashpoints, especially from smaller towns and more rural settings, means that we are sleepwalking to a cashless society. Many people value the ability to make cashless transactions, and no doubt the convenience of digital payments will continue to expand, but the fact is that many people still want to be able to access cash, and the Government rightly stepped in to provide a guarantee that cash would remain available. Exactly the same argument applies in respect of terrestrial TV. Indeed, it is an even stronger argument, because the viewing rates for terrestrial TV are far higher than the rates of use of cash. Even as more of us stream more content online, it is terrestrial TV that guarantees universal access and that is there when fixed broadband fails. The same research I cited earlier revealed that 70% of the public feel reassured by knowing that terrestrial TV is available as a fall-back option, even if they do not use it on a daily basis. I am sure that we will hear during the debate about a range of factors that Ministers need to consider as they make decisions about the future of terrestrial TV. What cannot be denied is that any move to switch it off would hit the most vulnerable people the hardest, including those struggling with the cost of living, many older people, people living with disabilities and, as my hon. Friend the Member for Berwickshire, Roxburgh and Selkirk (John Lamont) highlighted, those in remote, rural and island communities. They all rely on terrestrial TV to stay connected and, in many cases, do not have the choice of simply switching to streaming. Debates about broadcasting are often dominated by perspectives from what might be called a media elite, by which I mean those who tend to be in and of the big cities—London, but not just London—and a bit more middle class and a little younger. That is no criticism of those individuals, but we have to be aware that not everyone sees things from their perspective, and we, as legislators, need to be focused on ensuring that we serve the whole country, including those whose lives are quite different. When the Minister is being told by broadcasters and others that the direction of travel is away from terrestrial TV, cash payments or many other things, I urge her to bear in mind, as I am sure she will, that so many of the people we represent see things differently. Some may argue that we just need to accept that more and more services are moving online. Some in the industry have even suggested that the threat of losing access to TV is a good way of forcing people who are not online to get online. However, as Elizabeth Anderson, the chief executive officer of the Digital Poverty Alliance, has said: “What would be unconscionable…is to use any threat of the removal of the terrestrial TV service as a coercive stick with which to force people to take on new and unwelcome financial burdens simply to continue being connected to shared televisual experiences. The millions of people who watch terrestrial TV every day as their preferred mode of TV viewing deserve more respect than to be treated in that way.” It is simply a fact that a large category of people who today enjoy accessing TV through the terrestrial service would be excluded if the service were switched off in the 2030s. Let me be clear: guaranteeing the long-term future of terrestrial TV is by no means anti-digital, as some may claim. In fact, protecting the future of terrestrial TV is what makes our media industry one of the most digitally diverse globally. Losing terrestrial TV could damage the viability of UK-wide broadcast networks, which are relied on by a range of other sectors, including radio. I expect that the Minister will refer to the financial viability of the service. In fact, terrestrial TV represents a very modest cost to broadcasters right now—less than 3% of the licence fee to fund a universal service. Indeed, research by the consultancy EY indicates that the costs of terrestrial TV could be reduced substantially in the future if it has the certainty of a longer life span to justify investment. The financial implications of any switch-off also need to be factored in. As I have already explained, there would be new costs for viewers who would need to take out high- speed fixed broadband subscriptions; on average, the cost for them would be an extra £214 a year. It would also mean new costs for the Government, who would potentially have to fund the upgrades necessary to make the internet infrastructure suitable for a huge surge in demand. EY estimates that that cost would be £1 billion annually as an ongoing—indeed, permanent—subsidy. In reality, there would be a shift in the cost burden of TV distribution, away from the broadcasters and on to the shoulders of viewers and taxpayers. As things stand, we would lose a vital service and we would all pay more for less. Clearly, that looks like a good deal for the BBC and other broadcasters; what is less clear is whether it would be a good deal for my constituents and those of other MPs. Broadcasters should be careful what they wish for. As I have already said, the reality is that only a tiny percentage of the licence fee goes on paying for terrestrial TV. For the price of the licence fee, the BBC guarantees universal, free-to-air access to broadcast TV content to virtually everyone in the UK. Without that universality, it might be a lot harder to make the case for the licence fee as a flat tax on TV ownership. I say again that we should get some clarity from the Government and that the possibility of losing terrestrial TV in the next decade should be taken off the table. Instead, let us give viewers the guarantee of universal access to Great British broadcasting through the best-of-both-worlds model that we have today, retaining it well into the future.