BBC Director General Labels Licence Fee ‘Yesterday’s Model’ Amid Funding Reform Push

The BBC’s new director general has declared the traditional TV licence model a “busted flush” and “no longer fit for purpose,” signalling a push for fundamental funding reform.

In his first major public appearance since assuming the role six weeks ago, former Google executive Matt Brittin told MPs that the licence fee represents “yesterday’s model.” The broadcaster currently relies on the £180-a-year licence for the bulk of its revenue, but the number of paying households has fallen in recent years, prompting discussions with the government over the system’s future.

“We can and should be doing as much as possible on licence fee collection under the current model, but it’s yesterday’s model, it’s a busted flush, it’s no longer fit for purpose, and that’s why we need to make the case for the BBC and a shift of the licence fee model,” Brittin told the House of Commons Culture, Media and Sport Committee on Wednesday.

While he did not specify a preferred replacement, both Brittin and BBC Chair Samir Shah suggested the government reconsider a compulsory household levy—an option previously ruled out. Brittin proposed that such a levy could be collected via utility bills, such as broadband, mobile, or electricity payments. He argued that universal collection under such a scheme could allow the fee to be lowered from its current level.

“The challenge is it’s been ruled out, and I can understand the concerns about cost of living and so on, on households, but I think it’s got merits and others have found it to have merits,” Brittin said. Shah acknowledged a levy “would solve a lot of problems for us, and we’re certainly open to it,” but conceded it “could be seen as, and is effectively another tax.”

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