The television licence fee could cease to exist by 2027, the Culture Secretary has suggested, as one of the BBC’s political journalists accused the Government of doling out a “punishment beating” in revenge for the corporation’s Brexit coverage.

Baroness Morgan said the broadcaster must adapt to a new era in which more British children recognise the names ‘Netflix’ and ‘YouTube’ more than ‘the BBC’.

“Quite simply, the world in which the BBC was created, and the licence fee was established, has changed beyond recognition,” she said.

“The licence fee will remain in place for this Charter period, which ends in December 2027. However, we must all be open-minded about the future of the licence fee beyond this point.”

In a speech at the Policy Exchange, Lady Morgan warned the BBC that there are tough times ahead. She said: “These are not easy issues and they will require some honest and, at times, difficult conversations.

“But there is a George Orwell quote etched onto the wall of BBC Broadcasting House that says, ‘If liberty means anything at all, it means the right to tell people what they do not want to hear.’”

Lady Morgan was speaking at the launch of a consultation on decriminalising non-payment of the licence fee, which the BBC’s defenders see as the first step in dismantling the organisation.

The BBC says removing the threat of prison will send evasion rates soaring and blow a gaping hole in its finances, leaving it less able to compete against streaming giants.