Ex-BBC chair Richard Sharp has described the licence fee as “regressive” and suggested it could be replaced by a broadband tax or levy based on property value.
Speaking to the Daily Telegraph, Sharp said while he is in favour of a form of mandatory payment like the current licence fee, he thinks it is “regressive” due to households on lower incomes “pay[ing] the same price” as wealthier households. This “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.”
Sharp suggested there should be a discussion around whether there is a “better system” than the current licence fee, but that decision would be for parliament.
The government is currently exploring whether to replace the £159-a-year licence fee with a new funding model after 2027.
