The cost of TV could be “lowered for everyone” if the licence fee is replaced by a household levy paid through utility bills, the BBC’s new boss suggested.

Matt Brittin, BBC Director-General, said the traditional licence fee model was a “busted flush” and warned that more programmes would be axed if the £180 a-year charge is not replaced by a “sustainable” funding mechanism.

The debate comes as the BBC axed over 2,000 roles in a bid to make £500m in savings.

Former Google president Brittin, who joined the BBC six weeks ago, urged the government to consider replacing the licence fee with a German-style mandatory household levy.

German-style household levy