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The idea of arms length funding doesn't make sense. The conflict of interest already exists. The government can and does control the license fee, hence the recent kerfuffle about decriminalisation (many more people just won't pay if there's no consequence to not doing so). Ultimately the BBC is funded by government mandate. What government giveth, government can take away.

Additionally, the BBC has lost the argument that the license fee makes it neutral and independent to the betterment of all. More than half of the British population perceive it as being untrustworthy and biased (in favour of London metro media studies grad type viewpoints). This phenomenon is especially strong amongst the kinds of people who voted Tory for the first time and gave Boris his big majority, so their views are seen as very important.

https://yougov.co.uk/topics/politics/articles-reports/2019/1...

YouGov figures show British trust in the press to tell the truth has fallen, with less than half believing BBC news journalists are honest and impartial.

The loss of BBC market share to other services is being raised as a justification for attacking the license fee here, but the ground is filled with kindling. Both the Tories and Labour see the BBC as ideologically opposed to them now.




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