A think tank close to the government has called for radical changes to the way the BBC is paid for and run.

The Institute for Public Policy Research has called for a radical reform of the BBC licence fee that would link it to income and would be collected by the Inland Revenue.

It also called for the BBC's regulator to be made independent from both Ofcom and the BBC.

Currently the BBC's board of governors is a part of the corporation.

The think tank, which has close links to new Labour, had several other proposals for ministers to consider.

It called for BBC web pages, which can be accessed from outside the UK, to carry advertising in the same way that BBC World does.

There was also a call for a "public/public partnership" between the BBC and the government's internet arm UKOnline to encourage more inclusive government consultation.

The IPPR set out its case in a book launched on Tuesday at a media conference in Oxford where culture secretary Tessa Jowell is expected to set out the government's vision for the BBC's charter renewal.

"Clearly there is a need to make the BBC governors more independent of the BBC. However, the BBC should not be brought under Ofcom," said Jamie Cowling of the IPPR.

"There should be more than one content regulator as a single content regulator could easily be subject to external pressure resulting in a chilling effect on the diversity of opinion in broadcast news and information."

Cowling said ministers should consider making non-payment of the licence fee a civil offence to prevent the "criminalisation of the poor".

He urged the government to extend its concession scheme for TV licences which is currently only available to those over-75.

"With government support for digital switch-over by 2010, and a minimum of 24 channels available to most UK homes by that point, UK broadcasting is experiencing not incremental evolution, but a genuine step change," said Cowling.

"With 98 per cent of households having TVs and the extent to which TV is becoming a tool of social inclusion rather than just a luxury item, the licence fee should come from income tax paid by individuals and not a 'poll tax' paid per household. If those without TVs had to apply to opt out, licence fee non-payment would be dramatically cut."