BBC director-general Tony Hall said yesterday that in future the debate about the broadcaster’s scale and funding “should be taken out of the political cycle.”

His comments came as Culture Secretary John Whittingdale announced his panel to oversee a root and branch review of the BBC as part of the process for renewing the broadcaster’s royal charter.

The broadcaster has agreed to take over responsibility for funding TV licences for over-75s from the government as part of a deal agreed in the run-up to last week’s Budget.

Writing in The Observer, Lord Hall said major efficiency savings will have to be found and difficult decisions taken.

He said: “Successive governments have used the licence fee in different ways to fund priorities that are only indirectly connected to BBC output, for example, to support broadband rollout.”