The former BBC Chairman Richard Sharp has said that better-off households should have to pay more for the public broadcaster’s services.
He said that the TV licence fee could be replaced with a variable tax on broadband bills or council tax in the future, telling the Daily Telegraph’s Chopper’s Politics podcast last week that the current system is “regressive” as families on lower incomes pay the same price.
Households which watch or stream live programming from the Corporation are required to have a £159 annual TV licence, which covers all devices. But the BBC’s current funding arrangement ends after 2027 meaning the Government is looking for a new funding model.
Mr Sharp explained: “I would be in favour of a form of a mandatory payment – currently the licence fee. There is one issue which is it’s regressive, which may need to be addressed.”
He added: “You can look at models around the world, there’s a broadband tax, there’s a household tax and there’s the licence fee. Change is disruptive from moving from one mechanism that works to another.”
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The TV licence fee has been frozen for two years, until 2024, but is set to increase in line with inflation from April to £172 a year, with the £13 rise being the largest hike in over 20 years.
Shadow Culture Secretary Lucy Powell said earlier this year that a Labour Government would look at reforming the licence fee to be means-tested.
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She told The i earlier this year: “The licence fee might not be the model you’d start with that everybody pays the same whether you’re rich or poor. But I think the core principle of everybody contributing and it being a universal service that everybody contributes is absolutely right.”
A BBC spokesperson said: “The licence fee is our agreed method of funding until at least 2027 and ensures the BBC is an independent, universal broadcaster, which invests in UK creativity and talent. Beyond that, it is right there is a debate on whether, and if, the licence fee needs to evolve. We will continue to work hard to serve all audiences.”
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