BBC TV Licence Fee Could Be Replaced by Council Tax-Based Model, Says Chairman

BBC Levy May Be Collected with Council Tax Under New Proposal

BBC Chairman Samir Shah has suggested a new approach to replacing the traditional TV licence fee, proposing a model where the BBC levy could be collected through Council Tax. This system would charge households different amounts based on their financial situation, potentially asking wealthier households to contribute more.

Government Reviewing BBC Funding as Licence Fee Declines

With an increasing number of people opting out of the TV licence fee, the UK Government is currently exploring alternative funding methods for the BBC. The existing BBC funding model is tied to the BBC Royal Charter, which is set to expire in December 2027. The broadcaster has faced budget cuts for over 15 years, leading to the loss of popular shows, sporting events, and reductions in UK-based services.

Subscription and Advertising Models Rejected

In a recent Sunday Times interview, Shah dismissed the idea of switching to a subscription-based model similar to Netflix, arguing that it would undermine the BBC’s mission to provide content for all UK residents. He also ruled out an advertising-funded BBC, stating that it could negatively impact commercial broadcasters like ITV.

A hybrid funding model, which would offer free access to BBC News while making premium content like drama available through additional charges, was also rejected. Similarly, funding the BBC through general taxation was deemed problematic due to potential government influence over the broadcaster’s editorial independence.

Streaming Services May Face Additional UK Tax

As part of the wider UK media funding debate, there have been suggestions that major streaming platforms such as Netflix, Disney+, and Amazon Prime could be asked to contribute financially to the UK television industry through an additional tax.

With the TV licence fee under threat, the future of BBC funding remains uncertain. However, if the Council Tax-based BBC levy is introduced, it could reshape how the UK public broadcaster is funded, ensuring that households contribute based on their financial circumstances.