The licence fee is a tax on the ownership of a TV. As just about 100% of homes have a TV, it is no more than an add-on to the community charge/rates/poll tax.
The original licence fee was introduced in 1946 - it was entirely reasonable that a new technology needed special funding arrangements - TV ownership was expensive, only a single UK broadcaster, and no commercial alternatives.
A far sighted move which worked well for ~4 decades. Since the 1980s alternative TV services have increased and now include online. Much BBC output is now similar or derived from commercially available alternatives.
The state funded broadcaster concept is well past its sell by date - unless for propaganda purposes. BBC younger viewer audience has declined rapidly, leaving mainly the oldies".
What I am prepared to pay for are services (TV and radio) which may include news services and limited programming which is not availably commercially and high quality. The rest should not be funded by taxpayers.
If deleted other programming is commercially worthwhile, I am sure Amazon, Netflix etc will fund them through subscription. If not they simply disappear from the airwaves.
So personally I completely welcome the proposal that the BBC licence fee is dismantled. Any residual funding to come via normal taxpayer funder routes - eg: DCMS.
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