New BBC director-general Matt Brittain says license fee is ‘yesterday’s model’.

The BBC’s new director-general has described the traditional TV licensing model as “broken water” and “no longer fit for purpose”.

In his first major public statement since taking over the BBC six weeks ago, former Google executive Matt Brittain told MPs that the license fee was “yesterday’s model”.

The BBC gets most of its funding from the £180-a-year television licence, but the number of households paying has fallen in recent years and the broadcaster is in talks with the government about reforming the system.

Brittin said: “We can and should work as hard as we can on the current model of license collection, but it’s yesterday’s model, it’s muddled, it’s no longer fit for purpose, and that’s why we need to change the case for the BBC and the license fee model.”

Although he did not specify what he wanted to replace it with, he and BBC chairman Samir Shah have suggested the government reconsider the house tax, which it has previously rejected.

Brittain told the House of Commons culture, media and sport committee on Wednesday that such a levy could be levied on bills such as broadband, mobile or electricity.

If 100% of the houses are paid through such a method, the payment can be reduced from the current level, he said.

“The challenge is removed, and I can understand the cost of living and the family concerns, but there are benefits and others find it worthwhile,” Brittin said.

Shah said the tax would “solve a lot of problems for us, and we’re certainly open to it,” but added, “It’s another tax that’s visible and effective.”