New BBC chairman denies that he will be a government crony

Jonathan Brown

The new chairman of the BBC insisted yesterday that he would deliver “absolute independence and impartiality” from the Government, despite having worked three times for Chancellor Gordon Brown.

Sir Michael Lyons’ appointment prompted allegations of cronyism even before it was officially announced. Unions questioned why the new chairman of the BBC Trust - one of the most powerful figures in British cultural life - had so little broadcasting experience and warned him against agreeing to a major redundancy programme to ease the corporation’s cash woes.

Sir Michael, 57, a one-time market trader who went on to become chief executive of three city councils, said: “I don’t think anybody needs to fear my appointment.”

However, he admitted he had little time for watching television. The man who succeeds the broadcasting legend Michael Grade at the head of the body charged with guiding the BBC’s strategic future told a press conference he preferred listening to the radio. He will have done little to reassure critics who claim the BBC is too high-minded by singling out the Today Programme and the Moral Maze as particular favourites.

He said he had enjoyed the corporation’s acclaimed time-travel series Life on Mars but caused some raised eyebrows by praising ITV1’s adaptation of Persuasion and Channel Four’s The Sopranos. The latter, he said, “demonstrates that we have got something to learn from American TV”.

There was also a moment of embarrassment when Sir Michael called BBC Director General Mark Thompson, Mark Thomas. The relationship between the two men will prove critical over the coming years.

But it was the question of his relationship with the Chancellor that dogged his first day in the £140,000 a year part-time post. “One or two people have suggested that I’m very close to the Chancellor. It’s certainly true that he’s asked me to do three jobs which were very difficult. I did them to the best of my ability. But that’s where it begins and ends. I’m coming to a different role now and will deliver absolute independence and impartiality,” he said.

Announcing the appointment, Culture Secretary Tessa Jowell said: “Sir Michael Lyons is experienced and talented. He has a distinguished track record in local government and a wide range of other sectors.”

However the Conservative culture spokesman Hugo Swire raised concerns over his closeness with Mr Brown and Labour as well as the selection process, saying: “Today we have a situation where important appointments - increasingly dominated by Labour supporters - are made without any form of public scrutiny.”

Bectu official Luke Crawley warned that attempts to cut jobs in the wake of the below expectation licence fee settlement would be resisted with industrial action. “We would caution him against endorsing any plan which involves achieving cost cutting through widescale redundancies,” he said.

The BBC Trust was established in the wake of the Hutton inquiry to replace the old Board of Governors who were judged to have been too quick to accept BBC management’s version of events over the David Kelly crisis. The 12-strong panel is designed to be more independent. But Michael Grade’s decision to quit for ITV and with so many high-profile candidates pulling out of the race for the job it is suggested that Sir Michael will enjoy less clout than previous chairmen.

Pressing matters for new boss

Sir Michael Lyons warned that ‘radical thinking’ was under way over the BBC’s future. These are the key issues clogging his in-tray.

BUDGET CUTS

The 3 per cent licence fee deal has left the BBC with a £2bn shortfall. Management must now come up with a ‘prioritisation programme’. Further job cuts look inevitable

MOVE TO SALFORD

Having sabre-rattled over moving major departments to astate-of-the-art complex in Salford during licence fee talks and lost, the corporation must now complete the £400m re-location by 2011

ON-DEMAND

One of the first issues facing Sir Michael will be whether the BBC’s new iPlayer system, which will provide viewers with video on-demand, meets stringent public value tests.

DIGITAL SWITCHOVER

No one really knows what will happen when the analogue signal is switched off, from next year. The BBC must help set up a £600m scheme to help the elderly, disabled and vulnerable

RESURGENT ITV

The BBC faces a revitalised ITV under Michael Grade. The seizure of FA Cup and England rights last month could be a taste of things to come.

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