BBC licence fee to be extended with 'YouTube tax' to force more to pay

The government plans to broaden the BBC TV licence model to cover online streaming platforms such as YouTube, Netflix, Amazon and Disney+, a change being informally called a “YouTube tax.” A white paper on the BBC charter renewal, due before Christmas, proposes extending the current licence obligation - which applies to anyone who watches TV via a television set - to users of internet streaming so people cannot avoid paying by consuming content on phones, tablets or computers. The move is part of wider charter talks led by the Department for Culture, Media and Sport as the current royal charter expires in December 2027.

Officials say extra funds would be targeted at reviving local journalism and countering misinformation that has aided parties like Reform UK, though they acknowledge the levy would not close all BBC funding gaps. The BBC has called the licence system outdated; director-general Matt Brittin has pushed for BBC content to appear on Netflix, YouTube and other platforms and has floated alternative levies. Licence fee income remains around £3.8-3.9bn, but licences have fallen (539,000 fewer in the year to March 2026 and roughly two million fewer over five years) and the corporation recorded a £121m operating deficit for 2025/26, prompting cuts to programmes and staffing.