BBC told to CUT the £180 licence fee as it loses £1.3billion over the last decade

The BBC has been recommended to cut down the cost of the £180 licence fee amid losses over the past decade. A report by the House of Commons' Digital, Culture, Media and Sport Committee has been published, suggesting the current model is "outdated and no longer fit for purpose".

Among the recommendations are a reform to the licence fee "so it reflects modern media consumption and is no longer linked to a television set".

They argued this would be "an easier sell to licence fee payers if expanding the base is paired with a drop in the individual cost", adding that a household levy – where homes would be forced to pay a fee regardless of whether they use the BBC – would be "a difficult model to introduce in the short term".

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They also proposed an international TV licence, and that the BBC should not be "paying over the odds for overseas content" such as Suits and Schitt's Creek, as well as refunding the BBC World Service.

There was also a recommendation to open up iPlayer to content from other broadcasters such as Channel 4, and making original YouTube content.

The BBC director general Matt Brittin had told the committee that the corporation had lost £1.2 billion to £1.3 billion of funding in the past 10 years, with a 40% reduction of households paying the licence fee. The BBC also told them that while 94% of people use the BBC per month, only 80% of households pay.

The DCMS report further suggested that political appointments to the BBC board must end, and that the next charter should be made permanent.

The report comes ahead of the BBC finalising the proposals for the next royal charter later this year, setting out elements such as funding and governance from 2028.

In response to the report, the BBC said: "We have consistently argued that the current funding model is outdated and needs reform, so we welcome the Committee's support for maintaining universal funding while overhauling the licence fee.

"We are also pleased to see their recognition of the vital work of the World Service, with a clear recommendation that responsibility for funding should return fully to Government. At a time of huge disruption in the media, the BBC's trust, reach and creative strength remain unparalleled. But we also recognise the need to evolve and move faster towards the future."

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Sam is a freelance reporter and sub-editor who has a particular interest in movies, TV and music. After completing a journalism Masters at City University, London, Sam joined Digital Spy as a reporter, and has also freelanced for publications such as NME and Screen International.  Sam, who also has a degree in Film, can wax lyrical about everything from Lord of the Rings to Love Is Blind, and is equally in his element crossing every 't' and dotting every 'i' as a sub-editor.