UK to propose ‘YouTube tax’ as extension of BBC license fee and it could apply to all streaming platforms

The United Kingdom government is reportedly proposing an extension of the license fee, which funds the BBC, to include access to streaming services like YouTube and Netflix viewed on any screen.

A new report from The Independent on Friday says households will be asked to pay a so-called ‘YouTube tax’ to access streaming platforms if they’re not paying the current license that covers the BBC’s tab. It’s currently £180 a year (around $240).

Any extension would cover all online streaming platforms including Amazon, Disney+ and others available on UK soil. The idea appears to be geared towards preventing people avoiding a license by not having a television, and not engaging with live TV and the iPlayer. Essentially, if you’re streaming anything from anywhere, you’re gonna be liable for the license fee under the new plans.

The report, which quotes Whitehall sources, says any extra money raised by the license fee could be used to help revive local journalism in the UK and tackle the onslaught of misinformation. The unnamed source said: “The money needs to be used to help support local journalism and counter a lot of the conspiracy theories and fake news which we have seen help parties like Reform getting elected in different parts of the country.”

The BBC Royal Charter, which determines the funding of the public service broadcaster for the next decade, is set for renewal in December 2027. The white paper being punished before Christmas, according to the report, will outline the proposed changes to incorporate the streaming realm beyond the iPlayer.

A BBC spokesperson said: “We have consistently argued that the current funding model is outdated and needs reform. We will continue to engage with government to secure a new charter that provides sustainable, sufficient and universal funding so the BBC can deliver for audiences for generations to come.”

Surely a better way of approaching this would just be to properly tax the streaming services operated by a handful of the world’s most profitable companies? They’re operating in Britain and using UK internet infrastructure to deliver their content, while the proceeds generally go to shareholders in the United States. Get them to pay for it, rather than once again passing it all onto the consumer again, who already pay to access these platforms, or have to sit through endless ads to fund their experience.