The BBC, the world's biggest public broadcaster, will be forced to scrap a 77-year tradition of self-regulation under a new government proposal prompted by criticism of the BBC's journalism in the run-up to the Iraq war.
British culture secretary Tessa Jowell today issued the draft proposal to abolish the BBC board of governors - singled out for criticism in last year's official Hutton report - and replace it with an independent trust.
The report by Lord Hutton, which centred on a reporter's allegation the government "sexed up" evidence of Iraqi weapons programmes to justify going to war, forced the resignations of BBC director-general Greg Dyke and chairman Gavyn Davies.
"The current model of governance is unsustainable. ... The BBC governors, with their dual role of managing the BBC, but also holding it to account, will be replaced by two bodies, each with a clearly defined role," Ms Jowell told the house of commons.
An external BBC Trust, headed by current board of governors chairman Michael Grade, "will be the custodian of the BBC's purposes, the licence fee and the public interest," she said.
Critics have complained that the board of governors dual roles as regulator and protector are incompatible, especially given the BBC's dominant role in Britain's media sector. The BBC pulls in about half of the country's TV and radio audiences.
Known for its global radio and TV, the BBC will go on getting more than £2 billion pounds (€3.6 billion) a year from licence fees paid by all UK households with a TV set under the draft proposal.
"The licence fee retains a high degree of public support. And although not perfect, we believe it remains the fairest way to fund the BBC," Ms Jowell told Parliament. Alternative funding methods such as subscription would be examined when the next BBC charter expires in 2016. The proposals are part of the review of the BBC's renewable 10-year governing charter, which is set to expire at the end of next year.