British government chooses new BBC chairman amid financial crunch
Background: A loan to the Prime Minister is under scrutiny.
Mr Sharp resigned in April after an investigation found he failed to disclose his involvement in arranging a nearly $1 million loan to Boris Johnson while he was prime minister.
Mr Sharp, a former Goldman Sachs banker and adviser to the British government, took on the role of BBC chairman in early 2021. He had previously donated to the ruling Conservative Party and reportedly advised his former employee, Rishi Sunak, when he was chancellor. of the Treasury. Some saw Mr. Sharp’s ties to the government as a potential advantage for the broadcaster during a critical period when it was negotiating with lawmakers over its funding and a review of its charter, which sets out its mission and public purpose.
Why it matters: The BBC is facing questions over its funding.
Even as the BBC continues to occupy a central position in British media and broadcasting around the world, it has been rocked in recent years by changes in leadership, attacks on its impartiality and a deep squeeze on its funding, leading to significant cost cuts . . The role of the Chairman acts as a vital face of the BBC and interacts with government.
As chairman, Mr Sharp struck a deal with the government on the license fee, which is charged every year to every household with a television and makes up around two-thirds of the BBC’s funding. The compensation was frozen for two years, but will increase for four years from April 2024 in line with inflation.
Still, the broadcaster is under immense financial pressure as it struggles to compete with streamers such as Netflix and Amazon Prime. Last month the BBC announced plans to cut back on news services, as part of a recent plan to save £500 million.
The broadcaster will soon be negotiating with the government over its charter, which expires in 2027. Those conversations are expected to include a discussion on alternative financing models.
“It was very clear that the government was very determined to achieve a flawless appointment process,” said Alice Enders, research director at media research firm Enders Analysis.
Dig Deeper: A TV executive honored for his service to broadcasting.
Mr Shah has worked in television for more than thirty years, including eleven years at the BBC in the late 1980s and 1990s. He then joined Juniper, a TV production company, where he is CEO and creative director. Mr Shah was awarded an Order of the British Empire in 2020 for services to diversity in broadcasting.
He was a member of a committee investigating racial and ethnic disparities in Britain in the wake of the 2020 Black Lives Matter protests. The committee published a report in early 2021, which was considered controversial due to its somewhat positive outlook on race relations in Britain.
Mr Shah “has a clear ambition to see the BBC succeed in a rapidly changing media landscape,” Lucy Frazer, the culture minister, said in a statement on Wednesday. “I have no doubt he will provide the support and oversight the BBC needs to meet the challenges and opportunities of the future.”
What happens next: The government will determine the amount of the license fee.
The license fee will increase in April, but Ms. Frazer was concerned this week about the size of the increasewhich is around £15. She called the increase ‘significant’ and said the government was looking at what inflation measure should be used to determine the increase.