Community Radio Order 2025: Breaking Down the New Legislation

The UK government's Department for Culture, Media and Sport has introduced the Community Radio Order 2025, bringing significant updates to the regulatory framework that governs community radio services. Here’s what you need to know about the changes and their implications.

What is Community Radio? Community radio services are analogue radio stations that serve the public or specific communities. Unlike commercial radio, these stations aim to provide social benefits to their listeners and operate on a not-for-profit basis.

Key Changes in the Legislation:

1. Licence Extensions:

   • The new order allows OFCOM, the UK communications regulator, to extend community radio licences for a fourth time, with each extension lasting up to 10 years. This extension provides clarity and sustainability for community stations whose licences were set to expire from October 2025.

2. Advertising and Sponsorship:

   • The legislation removes nearly all restrictions on the revenue community radio stations can generate from advertising and sponsorship. This change aims to help stations increase their commercial revenue without the previous restriction of reporting these earnings to OFCOM. However, a £30,000 cap remains for stations overlapping with small independent commercial stations to protect these smaller entities.

3. Digital Radio Amendments:

   • The order also updates the Small-scale Radio Multiplex and Community Digital Radio Order 2019 to align with the new changes, ensuring that digital community radio services are also supported by a modern regulatory framework.

Why These Changes? The community radio sector has become a vital part of the UK’s radio landscape since the first licences were issued in 2005. With over 300 analogue stations, the sector continues to grow. The changes reflect the need to support these stations as they transition and adapt to digital formats while maintaining their crucial role in providing local content.

Consultation Insights: The government consulted with community and commercial radio stakeholders before making these changes. The general consensus was in favour of extending licence periods and easing advertising restrictions to allow community stations more financial freedom. However, concerns from commercial stations about increased competition were acknowledged, leading to the decision to retain some restrictions for overlapping areas.

Impact on Businesses: The impact on businesses is expected to be minimal. The main benefits include cost savings for community stations that no longer need to reapply for licences as frequently and increased revenue opportunities from lifted advertising restrictions. The legislation is designed to be beneficial without imposing significant new burdens on those affected.

Looking Ahead: The Department for Culture, Media and Sport will monitor the impact of these changes and review their effectiveness in 3 to 5 years. OFCOM will provide guidance to licence holders by April 2025 to ensure smooth implementation.

The Community Radio Order 2025 marks a progressive step in supporting and sustaining the UK’s vibrant community radio sector, ensuring it continues to thrive and serve local communities across the nation.