BBC tax plan is ‘a bad idea’

Plans to raise funds for the BBC though an increase in council tax have been branded “anachronistic”.

Ministers are considering alternative ways of raising cash for the corporation if the licence fee is scrapped.

The current method is coming under increasing scrutiny with the BBC’s royal charter due for renewal in three years.

MPs are looking at whether an add on to the property levy paid by all households, or to another regular bill such as electricity, would be a more straightforward way of collecting the £145.50 fee.

Former BBC employee Eben Wilson, who now campaigns for fairer tax, said: “This is a bad idea full stop. It would hide a service that we should be able to choose to buy or not.

“The fact that it’s compulsory now is already an anachronism in a multi-channel world. The licence fee is outdated and many of us would prefer a subscription basis which is at the public’s discretion whether they pay for it or not.

“The other side of this is that a TV tax bundled into the council tax makes it even more difficult for taxpayers to evaluate if they are getting value for money.”

The BBC argues the licence, which produces £3.6 billion a year, is the best funding method but critics argue that it is regressive and must be paid even if people do not want to watch the BBC.

There are also concerns that the fee is out of step with technology and viewing habits, as it does not take into account the increasing number of people who watch live on the internet.

John Whittingdale, the Conservative chairman of the Commons’ culture, media and sport committee, which is conducting an inquiry into the future of the BBC, said: “There is a strong case for at least updating the licence fee.

“One simple way is to maintain it as a charge on every household but attach it to an existing bill, be it council tax or some other.

“It’s something that we would consider as a potential alternative.”

The BBC is also concerned the removal of criminal sanctions for non-payment will erode its funding and has warned it could cost the corporation up to £200 million a year.

A BBC spokesman said: “The licence fee remains the most popular way to fund the BBC, but we know the committee is looking at a range of ideas and we will read their report with interest once it is published later in the year.”