The BBC's new director general, Matt Brittin, has criticized the traditional TV licence fee model as outdated and unsustainable.In a speech to MPs, he described the current system as 'a busted flush' and emphasized the need for modernization.The BBC relies heavily on the £180 annual licence fee, but declining payment rates have prompted discussions about reform.Brittin suggested alternatives such as a compulsory household levy collected through utility bills, which could reduce costs if widely adopted.However, he acknowledged government concerns about affordability.The debate comes amid plans to cut 2,000 roles and review the BBC's royal charter by 2027.

Potential funding shifts towards ads or subscriptions risk cutting services like children's programming and local news, according to senior executives.The discussion highlights tensions between maintaining public service broadcasting and adapting to financial challenges.