BBC bosses have been told not to use taxpayer money in any settlement or potential legal case with Donald Trump after the US President threatened to sue the corporation for billions.
Former director-general Lord Tony Hall, who was director-general at the BBC between 2013 and 2020, urged the broadcaster not to use any taxpayers' money after Mr Trump expressed his intention to sue the broadcaster for anywhere between $1billion and $5billion.
His threat comes after it was revealed the BBC spliced together Mr Trump's January 6 speech in an edition of Panorama last year to make it appear the now-President explicitly encouraged the Capitol Hill riots in 2021.
Director-General Tim Davie and Chief of News Deborah Turness handed in their resignations following the revelation of the scandal.
"No, [it] should not happen," Lord Hall told the BBC, "You're talking about public money. It would not be appropriate."
He continued by saying the video edit was also a "serious error".
Lord Hall added "hard work, diligence and the belief in impartiality" of BBC journalists have been lost.
The BBC can expect a lawsuit "probably" next week, according to the US President.
Donald Trump vowed to sue the BBC for anywhere between $1billion and $5billion
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"I'm not looking to get into lawsuits, but I think I have an obligation to do it," the President told GB News on Friday.
"This was so egregious if you don't. You don't stop it from happening again with other people."
In 2024, around 23.8 million people paid for a license fee, which currently stands at £174.50. The BBC's income from the fee was £3.8billion - around 68 per cent of its total income.
Sir John Whittingdale agreed with Lord Hall, telling GB News: "The licence fee is already becoming more and more unpopular as it goes up each year. And people feel less and less that they need to watch the BBC.
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'While the BBC sincerely regrets the manner in which the video clip was edited, we strongly disagree that there is a basis for a defamation claim,' the corporations said
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"I think this would just add to the feeling of injustice about being forced to pay a licence fee."
When revealing the corporation had apologised for their "error", a BBC spokesman said: "While the BBC sincerely regrets the manner in which the video clip was edited, we strongly disagree that there is a basis for a defamation claim."
And Roger Mosey, former director of news at the BBC, spoke to ITV News and agreed with his former employer.
"Of course, He has a right to be aggrieved by the way the BBC edited the Panorama programme. If he is so aggrieved, it's worth £5billion? I don't quite believe that," he said.
"He didn't even know he had been libelled in this way until a week ago, and somehow it has become the most damaging thing in his career."
The BBC are also said to believe the President did not suffer any material harm from the episode, which was released just a week before the US election. The programme was aired in the US.
Chairman Samir Shah doubled down on the organisation's formal apology, but said that the BBC "strongly disagree that there was the basis for a defamation claim".
Despite their feelings, Mr Trump told reporters on Air Force One that Sir Keir Starmer feels "very embarrassed" by the ordeal.
The Prime Minister said at PMQs that the BBC must "get their house in order" and be held "accountable".
But Mr Starmer was told by the leader of the Liberal Democrats, Ed Davey: "President Trump is attempting to destroy our BBC and the prime minister is nowhere to be seen.
"Keir Starmer has spent the last year cosying up to Donald Trump. If he doesn’t have the courage to stand up to the president, what is the point?"
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