BBC welcomes review, says Dyke

BBC director general Greg Dyke today welcomed a major review of the corporation and the licence fee.

Media and Culture Secretary Tessa Jowell set out details of the review in the run-up to Charter renewal in 2006. She said the Government will look closely at how the BBC should be funded - which raises the possibility of a change to the current licence fee system.

She has appointed Lord Burns, former permanent secretary to the Treasury and currently Abbey National chairman, as an independent adviser.

Mr Dyke said he was not concerned that the announcement was made during the Hutton Inquiry. He said: "I do not see anything sinister in this. I think we welcome it."

The review will look at whether the BBC offers value for money, its services and how it should be regulated.