Community Radio Order 2025 – Analysis

19/01/2025 Rob Watson Community Media, Policy Discussion 0

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The Community Radio Order 2019 and the Community Radio Order 2025 reflect evolving approaches to the regulation of community radio in the UK. Below is a comparison of notable differences and their potential effects on the operation of analogue community radio.

The Community Radio Order 2025 introduces significant changes to how community radio operates in the UK, raising questions about the future of this vital sector. This statutory instrument makes notable adjustments to licence durations, income caps, and spectrum allocation, all of which will shape the community radio landscape for years to come. But do these changes strike the right balance between financial sustainability, inclusivity, and the core values of community broadcasting?

One of the most striking aspects of the Order is its approach to licence extensions. Existing analogue licences can now be extended for up to ten years, with no clear limit on further renewals. This effectively means that some licences could continue indefinitely, offering much-needed stability for current operators. Yet, this raises a fundamental question about equity. By prioritising the continuity of established stations, does the policy inadvertently block opportunities for new entrants who may wish to bring fresh perspectives and innovative approaches to community broadcasting? As demographic and social dynamics shift, how can we ensure that the media landscape adapts to reflect these changes?

Adding to this concern, OFCOM has acknowledged that the only time these licences are properly verified is during the initial application process. They have stated that they lack the resources to continually monitor whether stations are fulfilling their original commitments. This means that some operators could be occupying valuable spectrum without delivering the social value or community benefits they were originally licensed to provide. Furthermore, these licences were only ever intended to last five years. In practice, many stations are now sitting on spectrum that has long outlived its original purpose, raising questions about whether it is being used effectively.

The removal of income caps for most community radio stations also introduces new dynamics. By lifting restrictions on advertising and sponsorship revenue, the government aims to provide stations with greater financial flexibility. For some, this change will be transformative, enabling them to grow and thrive in ways that were previously constrained. However, not all stations are equally positioned to benefit. Many community radio stations are deeply rooted in missions that prioritise social, cultural, or religious objectives, which often limit their ability or desire to engage in commercial activities. Without protections or alternative support mechanisms, will these stations find themselves disadvantaged, or even unable to sustain their operations? What might this mean for the diversity of voices and perspectives in the sector?

Another key aspect of the Order is the decision to freeze the allocation of new analogue licences. By focusing exclusively on existing operators, the policy overlooks the potential to reallocate spectrum for new services. This is particularly significant in light of the changes in how analogue radio is used. Originally designed for small areas, often with a 5km radius, these licences no longer reflect the realities of today’s broadcasting landscape. Without readvertising these licences, there is no legal mechanism for stations to expand their coverage areas or adapt to better reflect their current aspirations, 20 years after their initial applications. Readvertising could offer an opportunity for incumbents to realign their services with their communities’ needs and better utilise the spectrum they occupy.

These changes also raise broader questions about the purpose and identity of community radio. Historically, community radio has been defined by its commitment to social value, inclusivity, and local engagement. With the emphasis shifting toward financial sustainability, how do we preserve these core principles? The risk of commercialisation is clear, but the solutions are less so. How do we balance the need for financial viability with the sector’s original mission to provide non-commercial, community-focused services?

As the media landscape continues to evolve, community radio remains a unique and important part of the UK’s broadcasting ecosystem. It offers a space for local voices, cultural expression, and grassroots participation that is unmatched by other forms of media. Yet, the changes introduced by the Community Radio Order 2025 seem to prioritise stability and revenue generation over adaptability and innovation. How do we ensure that the sector remains dynamic and responsive to the needs of the communities it serves? How do we protect and amplify the voices of smaller, underrepresented groups who rely on community radio as a critical platform for visibility and connection?

These are some of the pressing questions raised by the Community Radio Order 2025. As we consider the implications of these legislative changes, it is vital to ask whether they truly align with the goals of fostering diversity, inclusion, and local engagement in the media. What does the future hold for community radio, and who will have a seat at the table in shaping it? For those passionate about community media, these are questions that demand attention, discussion, and action.

Key Differences

  1. Licence Duration and Renewal
    • 2019 Order: Allowed licence extensions up to a maximum of 15 years, comprising an initial five-year term with three extensions of five years each. Extensions required OFCOM approval and compliance with licence conditions.
    • 2025 Order: Introduces the possibility of indefinite licence extensions, with OFCOM able to grant a fourth extension of up to 10 years, effectively enabling perpetual operation for existing licensees.
    • Impact:
      • Provides stability and long-term operational certainty for existing stations.
      • Prevents new entrants from accessing analogue licences, limiting diversity and innovation in the sector.
  2. Income Caps on Advertising and Sponsorship
    • 2019 Order: Maintained income caps for community radio stations, with a fixed limit of £15,000 per year for advertising and sponsorship. Additional allowances were possible for some stations under specific circumstances.
    • 2025 Order: Removes income caps for the majority of community radio stations, allowing them to generate unlimited revenue from advertising and sponsorship. Stations overlapping with small independent commercial stations face a new £30,000 cap.
    • Impact:
      • Enhances revenue opportunities for financially viable stations, potentially improving sustainability.
      • Creates inequities for stations that cannot engage in commercial activities due to their social, cultural, or religious focus, potentially marginalising smaller, mission-driven broadcasters.
  3. Spectrum Allocation and New Licences
    • 2019 Order: Focused on digital radio (via small-scale DAB) while maintaining the allocation of analogue licences for community radio through a capped system.
    • 2025 Order: Retains existing analogue spectrum allocations without provisions for new licences, effectively freezing access for potential new entrants.
    • Impact:
      • Stagnates analogue community radio growth, leaving no room for new operators to address emerging local needs or serve underrepresented communities.
      • Misses opportunities to reallocate unused or underutilised spectrum for new or innovative community services.
  4. Policy Context and Social Impact
    • 2019 Order: Emphasised the role of digital migration and preparing community radio for a DAB-based future while maintaining the importance of social gain as a core characteristic.
    • 2025 Order: Focuses primarily on financial sustainability by removing income caps and extending licences, with less emphasis on social impact or adapting to demographic and technological changes.
    • Impact:
      • Shifts focus from community and social value towards financial viability, potentially undermining the not-for-profit ethos of community radio.

Effects on the Operation of Analogue Community Radio

  1. Stability for Existing Stations
    • Long-term licences reduce administrative burden and allow stations to plan more effectively.
    • However, this entrenches the status quo, potentially leading to complacency or a lack of innovation among established operators.
  2. Increased Commercialisation
    • The removal of income caps incentivises revenue-driven models, which could overshadow the social, cultural, and educational objectives of community radio.
    • Stations unable to compete commercially may struggle to sustain operations, leading to sectoral imbalances.
  3. Limited Opportunities for New Entrants
    • The absence of new licence allocations restricts the ability of emerging communities and organisations to establish radio services, hindering media plurality and representation.
  4. Social Inequities
    • The Order risks marginalising stations serving small or niche audiences, particularly those focused on social gain rather than profit, such as religious or cultural broadcasters.
  5. Missed Opportunities for Spectrum Reallocation
    • With analogue spectrum usage changing, the Order could have facilitated new community services or innovative uses of the spectrum, but it does not address this potential.

Summary

The Community Radio Order 2025 prioritises financial sustainability and operational continuity for existing stations, while the 2019 Order maintained a more balanced approach between analogue and digital broadcasting and the sector’s social objectives. While the changes in 2025 may strengthen some stations, they risk entrenching inequalities, excluding new voices, and diminishing the sector’s emphasis on social and community value.