A universal household levy linked to council tax bills could offer a better alternative to the BBC's existing licence fee, a report from the House of Lords has argued.
The Lords Communications and Digital Committee has warned the BBC faces 'stagnation and decline' if it doesn’t urgently set out a bold new plan for its future.
This includes costed options for future funding models that go beyond the existing 'regressive' licence fee system.
One option outlined in the report is a universal household levy linked to council tax bills. The report argues this would take greater account of people’s ability to pay.
Others options include a ring-fenced income tax and reforming the existing licence fee to provide discounts for low-income households.
Baroness Stowell of Beeston, chair of the Committee, said: 'The real danger is if the BBC doesn’t seize this opportunity to reform and demonstrate why it’s of value to audiences in this new world of endless choice.
'That’s why the Committee concluded that, when it comes to what the BBC does, the status quo is not an option. There will be choices for the Government and Parliament to make when it comes to funding mechanisms. But these decisions must be informed by a bold vision of what the BBC exists for and what it will deliver.'
