A Conservative commissioned report on the future of the BBC which backs phasing out the licence fee and turning most of the corporation's television output into a subscription service has been published.

The independent report, produced by the Broadcasting Policy Group, chaired by the former Channel Five chief executive David Elstein, was designed to inform Conservative broadcasting policy before the renewal of the BBC Charter.

Julie Kirkbride, the shadow culture secretary, said: “This report is an interesting contribution to the debate of the BBC and one we will read carefully. This is not a representation of Conservative Party policy but a report we welcome and look forward to debating in the future."

A government spokesman claimed the report would lead to a "weak and small BBC".