The BBC licence fee could be scrapped and replaced with a subscription service, according to the Sunday Times.
Senior aides to No10 insisted they were “not bluffing” about changing the way the BBC is funded.
The Broadcaster could be forced to sale a majority of it’s 61 radio stations and reduce the number of TV channels.
The website could also be scaled back and stars banned from cashing in on second jobs.
The Downing Street source told the Sunday Times: ”We are not bluffing on the licence fee. We are having a consultation and we will whack it. It has to be a Subscription service.”
The Government is already consulting on proposals to decriminalise non-payment of the licence fee, and ministers have suggested it could be abolished altogether when the BBC’s charter comes up for renewal in 2027.