Great song Julie.
I was working on some ideas of my own which sort of chime in with yours.
Could I humbly suggest the following additional verses.
(If this is a heinous sin please ignore it.)

       When you toddle down the pub on Sat'day evening
       To have a pint and sing a song or shoot the breeze,
       It's not the French we ought to blame,
                                     not Al Quaeda nor Hussein
       It's all the folkies bringin' the country to it's knees.

       But sport on tele in the pub is unaffected.
        They see no threat to public order from football
        But I'd say a pub to miss was where the lads are on the piss
        And England just went down 4-0 to Senegal.

Ch        So if you want to sing a song you'll need a license.
        And if you want to play a tune fill out a form.
        He's on a mission killing music in the north and in the south,
        When someone mentions 'Culture' Kimmy reaches for his mouth.

       Don't think that what I'm saying couldn't happen.
       Please believe me 'cos I'm telling you no lies.
       If Mr Howells gets a chance he'll make a crime of song
                                                         and dance
       And that'll be the day traditional music dies.

V4        And on a lovely summers ev'ning in your garden,
        You're quietly strumming, not a thought for Mr Howells.
        Just singing songs your family's sung for generations,
        But have a care, the thought police are on the prowl.

        Is it the tele you can hear at number seven
        Or the pounding Drum and Base at twenty two.
        No it's not what you might think, you're risking
                                        six months in the clink
        Because the one the buggers have come to get is you!

Ch           So if you want to sing a song you'll need a license,
       If you want to play a tune fill out a form.
       All you lovers of the arts beware New Labour's Fascist thugs,
       You'd do better burgling houses, you'd be safer dealing drugs

        So don't think that what I'm saying couldn't happen.
       And before they come to march us all away.
        There's just one thing I might suggest,
                               another time it might be best         
       If we decided all to vote another way.

        So on the 27th gather in Westminster
       And as the noble protest banners are unfurled.
       Though they belabour us with clubs,
                        just-think-in-a-week or two The Scrubbs
       Could have the finest f--kin' folk club in the world.