Now, the BBC news: governors are to go but licence fee stays

The BBC has been told to stop chasing ratings and making copycat programmes as part of wide-ranging government proposals for the future of the broadcaster. The Green Paper published yesterday also proposed that the BBC's board of governors be abolished in favour of a new trust, which it said would be more accountable to licence fee-payers.

The BBC has been told to stop chasing ratings and making copycat programmes as part of wide-ranging government proposals for the future of the broadcaster. The Green Paper published yesterday also proposed that the BBC's board of governors be abolished in favour of a new trust, which it said would be more accountable to licence fee-payers.

The trust will be responsible for ensuring that every BBC service meets a public interest test. The Culture Secretary said that change was necessary because the dual role of the governors as "cheerleader and regulator" of the BBC lacked clarity, transparency and accountability".

Tessa Jowell promised that a new structure at the top of the BBC, comprising a board of trustees and a separate executive board, would create "much-needed daylight" between the two roles. The Secretary of State added that the current chairman Michael Grade, whose term runs until 2008, would be the first head of the new trust.

The Government rejected the proposal of an independent inquiry led by Lord Burns, that the BBC should be regulated by an external watchdog with the power to top-slice the licence fee to fund other public service broadcasters.

Under the proposals, the BBC's future will be secured until 2016 under a new royal charter and the licence fee is guaranteed for another 10 years. At the time of digital switchover in 2012, the Government plans to conduct two reviews into the funding of the BBC and other public service broadcasters.

Ms Jowell insisted that the reforms set out in the Green Paper would make a "fundamental difference" to the running of the BBC. "The present board of governors operate on the basis that their dual function of managing and regulating the BBC are substantially in one body.

"That will end and will be replaced by a complete separation of the management of the BBC and the oversight of the BBC vested in the board of trustees. The BBC trust for the first time will be principally accountable for the licence fee and to the licence fee-payer."

The Green Paper said focus groups had revealed "a marked perception . . . that the standards of BBC TV programming were declining" and warned that the BBC should avoid derivative formats, ensure that all of its journalism is "fair and precise" and should not compete aggressively against other broadcasters.

It set out five new standards that all BBC services must meet: to promote citizenship and education, to stimulate creativity, to represent the whole of the UK and its nations and regions, and to take the UK to the rest of the world. In addition, the BBC should be in charge of "building digital Britain" and more production should take place out of London and be commissioned from independent suppliers.

Although the licence fee was "not perfect", the Green Paper concluded that it was the best funding model for the time being.

Towards the end of digital switchover, however, there are to be two reviews, one looking at alternative methods of funding the corporation such as advertising or subscription and another which will consider whether other public service broadcasters should be given a share of the licence fee.

The BBC was quick to back the proposals. Mark Thompson, the director general, who will head the new executive board, said "very few people set out to make derivative programmes" and added that later this week he would present plans for a creative review of BBC programmes.

Mr Grade welcomed the proposals as "the biggest change in the governance of the BBC for 77 years" and admitted that his reform of the board of governors had been "more behavioural than structural". He said: "The Government has taken a view in this Green Paper that behavioural change is not enough, it's got to be future-proofed."

John Whittingdale, the shadow Culture Secretary, described the reforms as largely cosmetic. He said: "The Government appears content to merely tinker at the edges of the existing structure while essentially allowing the BBC to continue for another 10 years with business as usual."

Don Foster, the Liberal Democrat culture spokesman, agreed that the changes did not go far enough and backed Lord Burns's call for a new independent regulator. He said: "The proposal for a board of trustees is a move in the right direction, but it perpetuates the serious conflict of interests that existed under the governors."

LAST OF A DYING BREED

Chairman: Michael Grade

Former chief executive of Channel 4 and BBC director of television

Vice-chairman: Anthony Salz

Senior partner in the law firm Freshfields Bruckhaus Deringer

Deborah Bull

Ballerina with The Royal Ballet for 20 years, reaching the rank of principal dancer

Dame Ruth Deech

Chairman of the UK Human Fertilisation and Embryology Authority (HFEA) from 1994 to 2002

Dermot Gleeson

Executive chairman of MJ Gleeson Group.

Professor Merfyn Jones

The national governor for Wales and a historian and broadcaster

Professor Fabian Monds CBE

BBC national governor for Northern Ireland and former Provost of Magee College and pro vice-chancellor for planning in Ulster University

Jeremy Peat

National governor for Scotland and group chief economist at the Royal Bank of Scotland

Angela Sarkis CBE

An independent consultant with interest in organisational management, leadership development and diversity

Ranjit Sondhi CBE

Senior lecturer at the University of Birmingham and co-ordinator of a new degree in race and ethnic studies

Richard Tait

Professor of journalism at Cardiff University and editor-in-chief of ITN from 1995 to 2002

CHARTER HIGHLIGHTS

* The licence fee to continue for at least 10 years.

* The board of governors to be replaced by a "new, transparent and accountable BBC Trust to oversee the corporation".

* BBC not to "chase ratings for ratings' sake".

* Fewer repeats and expensive US imports.

* Makeover and reality shows like Ground Force and Fame Academy to be replaced by more original comedy, drama, documentaries, arts and current affairs.

* Magazines not directly related to programmes should be sold.

* Radio 1 and 2 must have distinctive daytime schedules.

* BBC must set up schemes to help "the most vulnerable consumers" make the switch to digital.

* The BBC will continue to be established by a Royal Charter ­ the next one from 1 January 2007 to 31 December 2016.