Licence fee is ‘yesterday’s model’, says new BBC director general Matt Brittin

The BBC’s new director general has described the traditional TV licence model as “a busted flush” and “no longer fit for purpose”.

In his first major public appearance since taking over the BBC six weeks ago, former Google executive Matt Brittin told MPs that the licence fee is “yesterday’s model”.

The BBC receives most of its funding from the £180-a-year TV licence, but the number of households paying has declined in recent years, and the broadcaster is discussing reform of the system with the government.

Brittin said: “We can and should be doing as much as possible on [enforcing] 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.”

He did not specify what he wants to replace it, but he and BBC chair Samir Shah suggested the government should reconsider a compulsory household levy, which it previously ruled out.

Brittin told the House of Commons the Culture, Media and Sport committee on Wednesday that such a levy could be collected through utility bills such as broadband, mobile or electricity.

If 100% of homes paid through such a scheme, the fee could be reduced from its current level, he said.

“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 said a levy “would solve a lot of problems for us, and we’re certainly open to it”, but admitted it “could be seen and is effectively another tax”.