Jowell warns BBC of 'radical' review

The Government today upped the stakes in the continuing and bitter row with the BBC over Iraq.

Culture Secretary Tessa Jowell warned that the BBC must show it is "worthy" of public trust - a trust, she said, that could easily vanish.

She confirmed the Government will embark on a "radical and wide-ranging review" this autumn about the renewal of the BBC's charter in 2006.

And she made clear the inquiry into events leading up to the death of weapons expert David Kelly will have a bearing on the "scope of the review".

The Culture Secretary deliveredher warning in an interview-with The Times, one of the newspaper's most sympathetic to Downing Street and most hostile to the BBC in the dispute over whether No10 "sexed up" last year's dossier on Iraq's weapons of mass destruction.

Ms Jowell was careful not to issue any direct threat. She said that the review of the BBC's future - including whether supervision should be taken out of the hands of the Governors and handed to the independent watchdog Ofcom, was "quite separate" from the Hutton Inquiry into the death of Dr Kelly.

However, she went on: "I will consider very carefully any recommendations and conclusions which can be drawn from the Hutton Inquiry in relation to the BBC."

She added: "The BBC and the trust people hold in it has an important place in this country. Trust is important for public institutions and Government. We should never take it for granted because it is easy to lose and hard to rebuild."

While the Government continued to put pressure on the broadcasters, Downing Street also launched an operation to prepare the exit of Alastair Campbell.

No10 late yesterday leaked the fact that Mr Campbell had held talks about his future with Tony Blair. And it was suggested that the Prime Minister's communications director would depart as soon as an end is reached to what has become an intense and personal feud with the BBC.

Mr Campbell was already widely expected to leave, possibly at the same time as his partner, Fiona Millar, is set to leave her post as aide to Cherie Blair in the autumn.

Yesterday's operation, itself a classic piece of spin, appeared designed to demonstrate he would go at a time of his choosing. The damage done to the Government by the recent turmoil was highlighted by the latest opinion poll today showing a further slump in backing for Mr Blair.

The poll, by YouGov for the Daily Telegraph, found more than six out of 10 of voters believing the Government appeared to have "lost control and be at the mercy of events".

Almost half, 47 per cent, said they did not believe a word Mr Blair said.