BBC licence fee could be replaced with a subscription

The BBC's Director General Lord Hall spoke about the green paper publish today proposing changes to the way the BBC is funded.

The BBC licence fee could be replaced with a subscription, the Culture Secretary said today.

Launching a Green Paper in parliament, John Whittingdale set out the terms of the government review into the broadcaster.

One of the main issues is how it will be funded in the future following the agreement the Corporation will start paying licence fees for the over-75s from 2018.

Mr Whittingdale said a review will look at three options:

  • A reformed licence fee

  • A household levy

  • A subscription fee in the longer term

The paper also focuses on how the Corporation will be governed and regulated.

Recently, the BBC was criticised on editorial failures, for example in the Jimmy Savile investigation.

There is talk of creating a new stand alone body to replace the current BBC Trust or moving regulation over to Ofcom.

And now it is nearly 100 years old, what role the BBC plays in the age of modern media will be debated.

Shows like The Voice could be scrapped in the reform. Credit: PA

Some in government are reported to favour scrapping the rolling news channel, scaling back its website and cutting expensive entertainment shows such as The Voice.

Mr Whittingdale has appointed an eight-person panel to work on the renewal of the BBC's royal charter - which sets out the corporation's remit - which runs out at the end of next year.

Members of the advisory group include former Channel 5 boss Dawn Airey, who has previously called for the licence fee to be cut and for the broadcaster to consider charging for its website.

Daniel Craig, Dame Judi Dench and Sir David Attenborough have joined calls to protect the BBC. Credit: PA

James Bond actor Daniel Craig, veteran broadcaster David Attenborough, author JK Rowling, comedian Miranda Hart and presenter Chris Evans were among A-list stars who signed a letter this week urging Prime Minister David Cameron to protect the BBC.

Describing it as "the envy of the world", they appealed to the PM to ensure the Government does not "turn it into a narrowly focused market-failure broadcaster".

"A diminished BBC would simply mean a diminished Britain. Like all organisations, it has its faults, but it is overwhelmingly a creative force for good," the letter said.

The BBC say they are concerned that the paper does take into consideration the views of the licence fee payer and are calling for more analysis.