Tories slam ‘unfair’ YouTube tax plan as millions abandon BBC licence fee

The Conservatives have opposed a proposal to extend the TV licence fee to people who use streaming services, calling it unfair to households that do not watch live television. The plan is being considered as a way to secure long-term funding for the BBC, whose finances are under pressure as fewer households pay the fee.

An estimated 3 to 4 million additional households could be charged if the fee covered services such as YouTube, Netflix and Amazon Prime. The Office for Budget Responsibility estimates that 1.6 million current licence fee households will stop paying by the end of the decade; the BBC also reported a £121 million operating deficit for 2025/26 despite collecting about £3.8 billion to £3.9 billion. The proposal is expected to form part of the BBC Charter review, with ministers reportedly considering using additional funds to support local journalism.