Contribution
My Lords, I think I am right in saying that despite the lack of numbers in Grand Committee today, this has been an important and useful debate with interesting points made. I am grateful to all noble Lords who have contributed this afternoon.
It is clear from the contributions that we all recognise the important role our public service broadcasters play, both on and off screen, in their contribution across the country and in our day-to-day lives. The noble Lord, Lord Kirkhope of Harrogate, gave an insightful contribution on some of the background and the value of regional output, reflecting the conversation earlier where he also gave some of the broad texture around it. There is a value to having such insights and it is hugely important for people across the country to recognise their own region in the output of public service broadcasters—I will come to that later when I respond to the noble Lord’s questions.
I also recognise the validity of the point made by the noble Lord, Lord Parkinson of Whitley Bay, on the importance of regional media in the context of an age of devolution of decision-making, and the importance of making sure that we have an appropriate level of coverage where the decisions are made at a regional and local level. As the noble Lord will be aware, given how speedily he and others made sure it received Royal Assent on 24 May 2024, the Media Act 2024 makes much-needed changes to the regulation of public service broadcasting, which was last substantively updated in 2003.
Since then, as I mentioned, internet access and streaming services have fundamentally changed how audiences access content. We are aware that the media landscape is going through a period of rapid change, which is why we are getting on with implementing the provisions in the Media Act designed to modernise the public service broadcasting system, including the PSBs’ quota regime. These regulations simply update and replace existing secondary legislation to implement the changes introduced by the Act, such as permitting the delivery of certain quotas via a wider range of services.
I come to the points and questions raised by noble Lords. The noble Lord, Lord Kirkhope of Harrogate, asked a number of questions about regional commissioning and the extent to which public service broadcasters are doing enough in this area. I will go through a number of those points. We think PSBs are leading the way in this area. On average, they spent 62% of their external production budgets outside the M25 last year, and they are among the largest employers outside London. For example, 69% of ITV staff are based outside the capital. However, we want them and the rest of the sector to go further by investing more and opening up more opportunities for people across the country beyond just these quotas.
The noble Lord also asked about repeats and whether they would count towards the regional production quotas. As with original productions, decisions on whether repeats can count towards the regional production quota sit with Ofcom. Following consultation, Ofcom has proposed excluding repeats from regional production quotas, as is the case currently. Its decision reflects the importance of regional programming and the continued investment in productions in the nations and regions.
Both the noble Lord, Lord Kirkhope of Harrogate, and the noble Lord, Lord Parkinson, asked about the extent to which “regional” is classed as just outside London. Ofcom guidance sets out the definition currently of what can count towards the regional production quota. To qualify as a regional production, at least two of the following three criteria must be met. The production company must have a substantive business and production base in the UK outside the M25; at least 70% of the production budget, excluding some specific costs, must be spent in the UK outside the M25; and at least 50% of production talent by cost must have their usual place of employment in the UK outside the M25. I do not have a more nuanced detail on regional breakdown beyond this. However, I am happy to commit to contacting Ofcom and raising the points the noble Lord, Lord Kirkhope, raised, because for large parts of the country, outside the M25 does not necessarily count as being close to where they are regionally.