Prime Minister Keir Starmer has written to over ten UK regulators, including Ofcom, urging them to prioritise economic growth and investment. In letters co-signed by Finance Minister Rachel Reeves, he requested that these bodies identify and remove barriers to growth and submit pro-growth initiatives to Downing Street by mid-January. The regulators addressed include the Financial Conduct Authority, the Competition and Markets Authority, Ofgem, Ofwat, the Financial Reporting Council, the Environment Agency, and healthcare regulators.
This initiative follows recent economic data indicating no growth in the UK’s economy during the first three months of Starmer’s administration. Business groups have also expressed concerns that the government’s recent tax-raising budget could hinder investment and hiring in the short term. The Prime Minister’s directive aims to align regulatory actions with the government’s economic objectives, emphasizing the importance of fostering an environment conducive to growth and investment across various sectors.
The time has come for Ofcom to adopt a more proactive and inclusive approach to managing the UK’s radio broadcasting spectrum. To support the growth of independent media services and align with modern audience needs, Ofcom should prioritise the following actions:
Accelerate Small-Scale DAB Implementation: Small-Scale DAB provides a vital platform for diverse community and local commercial broadcasters. Ofcom must streamline the rollout process to ensure these services are operational nationwide without unnecessary delays.
The existing approach to AM and FM spectrum management is outdated and restricts innovation. Ofcom should:
- Transition to an on-demand licensing system where capacity allows, ensuring fair and open access for broadcasters.
- Reform spectrum management to better utilise AM and FM bands, prioritising the inclusion of independent and community-led services.
End the Digital Switchover Policy: The Department for Digital, Culture, Media & Sport (DCMS) and Ofcom must immediately confirm the abandonment of the outdated digital switchover policy for radio. This policy has stifled growth by creating uncertainty and limiting the flexibility of broadcasters to choose platforms that best serve their audiences and business models.
By maintaining artificial limits on spectrum access and delaying progress in Small-Scale DAB, Ofcom’s current policies actively inhibit growth. A revised, forward-looking strategy would empower community and commercial broadcasters alike, ensuring a vibrant and diverse radio landscape across the UK.
We urge Ofcom and DCMS to demonstrate leadership and vision in shaping the future of UK radio broadcasting. A commitment to removing barriers and fostering innovation will enable broadcasters to thrive, serving audiences with more choice and fostering a competitive and dynamic media environment.