Tessa Jowell has outlined plans for an overhaul of the way in which the BBC is governed.

Publishing a green paper on the subject on Wednesday, the culture secretary said that the licence fee would continue in its current form for the foreseeable future.

But she said that current governance structures "lack clarity and accountability".

"There is widespread consensus that the current model of governance is unsustainable," she warned.

As part of what Jowell called a "radical change", a new BBC trust and a separate executive board will oversee the way the corporation is run.

Under the changes, the BBC's current board of governors will be scrapped.

The board was criticised for its handling of the row over the government's intelligence on Iraqi weapons of mass destruction.

And there have also been concerns about the contradiction between the role of the governors in both supporting the BBC and regulating it.

The trust will act as a "custodian" of the BBC, said Jowell.

It will judge management performance, approve budgets and oversee strategy.

Michael Grade, who is current chairman of the board of governors, will become the first chairman of the trust.

Day-to-day management will be carried out by the executive board, headed by the current director general but strengthened by more non-executive directors.

Overhaul

Jowell told MPs that the review process had examined the BBC's scale and scope, funding and governance.

The public "overwhelmingly" supported the BBC and public service broadcasting, she said.

"They want it to be independent of government, Parliament, and any commercial influence," she said.

But the minister warned there was a belief that the quality of programmes had declined.

And competitors thought the BBC is often stifling their activities, she added.

"So we have to find a balance between meeting these concerns while ensuring that public service broadcasting leaves a footprint in every medium," Jowell explained.

As a result, the BBC's charter will be renewed for a further 10 years.

The licence fee is to continue, though no decision has yet been made on increases beyond those currently planned up to 2007.

However, the next charter review will examine the case for alternative funding models such as subscription.

'Not far enough'

The Conservatives said the government's proposals did not go far enough to make a real difference to the broadcasting landscape.

Shadow culture secretary John Whittingdale warned that Jowell's plans were "largely cosmetic".

"The government has taken the right approach but in every area has failed to go far enough," he said.

"We share the government’s will to see a strong BBC producing high quality public service programmes.

"However, we also believe that the need for change should be addressed now and the charter should be looked at again in five years' time.

"Instead, the government appears content merely to tinker at the edges of the existing structure while essentially allowing the BBC to continue for another 10 years with business as usual."

For the Liberal Democrats, Don Foster also urged further reform on the issue of BBC governance.

"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," he said.

"We need a tough, new independent regulator to ensure that all public service broadcasters live up to their obligations to the public."