The BBC’s new director general Matt Brittin has vowed to “reinvent the BBC” as the annual report revealed the number of active licence fees plummeted in the last year14:15, 14 Jul 2026Updated 17:11, 14 Jul 2026The BBC’s new director general has vowed to “reinvent the BBC ” as the annual report revealed the number of active licence fees fell by over half a million in the past year.‌Matt Brittin, who previously worked at Google for 18 years before joining the Corporation in May, wants to scrap the licence fee and again called on the government to come up with a new funding formula, saying that the current method was now a “straightjacket mechanism” that needed to be ripped up.‌“As I told MPs last week, the BBC is being held back by the straitjacket of the licence fee mechanism,” he said. “It’s a model that ties us to the past when audiences are already living in the future. So we urgently need a solution that will provide sustainable, sufficient, and universal funding, so there can continue to be a BBC for each of us, funded by all of us.”‌Last year the number of licences sold had fallen by 303,000, and this year a total of 539,000 have decided not to pay. The figures for 2026 presented in the report showed that while 94% of adults in the UK use the BBC each month, less than 80% of households (23.3million) have bought a TV licence, leaving the BBC facing a deficit.This is why last month the BBC announced that 550 jobs and programming would go, as part of a plan to slash a further £500m of costs. But while cost-cutting is the short term strategy, changing the funding mechanism for something more effective is the long-term goal.‌“This is a moment of real jeopardy, not just for the BBC but for public service broadcasting and the UK as a whole,” Brittin said, "I believe the case for BBC has never been stronger: public service, economic impact, UK sovereignty and values. Our mission has never been more needed. So reinventing the BBC to fulfil that mission in a fast-changing world is our duty and our challenge. That’s the work that is now underway.”He said that the current licence fee model, which was based on the consumption of live TV or programmes on iPlayer, was “sort of yesterday's behaviour”. “Almost everybody is consuming BBC content across the country, but we have a gap between those and the number of households paying,” he explained. “So it's right that the government's looking at how you restructure that mechanic.”‌The cost of a licence rising to £180 this year meant the corporation received an increase of £36m year-on-year, generating an overall income of £3.9bn.The new director general suggested that a supercharged Britbox-style platform involving the UK’s main broadcasters could be one option for funding going forwards. “I don't think we're looking at mergers and acquisitions,” he explained. “We’re looking at is it possible for us to integrate more into a sort of sovereign media platform. And I think in the medium term, that's got some appeal if you want shows that are about who we are and where we're from, and also that bring those British values to the world.”‌BBC finance boss Berangere Michel said that evasion of payment by those who still used the BBC was around 12% and that was down to viewing habits changing, with people not paying if they were watching on catch-up via iPlayer rather than in real time. “Most of the UK’s adults use the BBC but only 80% of households, so one to two adults per household, actually pay for it. The key issue is that we're providing a universal service, and we're very proud of it, but the funding model doesn't match that, and that creates deficit.”BBC Chair Samir Shah agreed, stressing: “This report sets out in detail the considerable pressures now faced by the BBC – not least the question of future funding.“When 94% of adults use the BBC per month yet fewer than 80% of households contribute, it tells you the current funding model cannot maintain the BBC’s public service mission. The new Charter must ensure that the BBC can continue to be a universal public service media organisation of scale.Article continues below"We have to remember that the BBC is, and always has been, so much more than simply a broadcaster. It is a fundamental public good. It delivers unique benefits to audiences and to the whole of the UK – for our society, our economy, and our democracy."Like this s tory? F or more of the latest showbiz news and gossip, follow Mirror Celebs on TikTok , Snapchat , Instagram , Twitter , Facebook , YouTube and Threads .