BBC chairman Richard Sharp resigns after months-long probe as broadcaster plunged into new crisis

Adam Heppinstall KC's inquiry found two potential non-disclosure breaches ahead of his interview with the BBC's panel, including when Sharp informed Johnson he wished to apply to become the broadcaster's chair ahead of his application.

The second potential breach involved Sharp telling Johnson he was going to introduce Sam Blyth to Cabinet Secretary Simon Case to "assist the former Prime Minister with his personal finances".

Sharp, who donated around £400,000 to the Conservative Party over the past two decades, claimed the breach was "inadvertent" and revealed he would stay on as BBC chairman until a replacement is found.

He said: "I've always maintained the breach was inadvertent and not material, which the facts he lays out substantiate."

The 67-year-old, who worked with Rishi Sunak at Goldman Sachs, continued: "Nevertheless, I have decided that it is right to prioritise the interest of the BBC.

"I feel that this matter may well be a distraction from the corporation's good work were I to remain in post until the end of my term.

"I have therefore this morning resigned as BBC chair to the Secretary of State and to the board.

"It was proposed to me that I stay on as chair until the end of June while the process to appoint my successor is undertaken and I will of course do that in the interests of the corporation's stability and continuity."

Addressing the two non-disclosure breaches, Sharp claimed he introduced Blyth to Case in "good faith", with "the best of intentions" and "with the sole purpose of ensuring all relevant rules were followed".

Sharp also claimed there was "no evidence" to suggest he "played any part whatsoever in the facilitation, arrangement, or financing of a loan for the former Prime Minister".

He added: "I wish, with the benefit of hindsight, this potential perceived conflict of interest was something I had considered to mention.

“I would like once again to apologise for that oversight – inadvertent though it was – and for the distraction these events have caused the BBC."

The Prime Minister said he had not seen the report in Richard Sharp but was unable to guarantee a non-political figure would succeed his former boss.

Speaking at the Scottish Tory Party conference in Glasgow, Sunak said: "There’s an appointments process that happens for those appointments. I’m not going to prejudge that."

Officials at the UK's national broadcaster have responded to Sharp's resignation.

BBC director-general Tim Davie said Sharp made a "significant contribution" to the success of the BBC as he described working with the outgoing chairman as "rewarding".

The BBC Board also said: "We accept and understand Richard’s decision to stand down.

"We want to put on record our thanks to Richard, who has been a valued and respected colleague, and a very effective chairman of the BBC.

"The BBC Board believes that Richard Sharp is a person of integrity.

"Richard has been a real advocate for the BBC, its mission and why the corporation is a priceless asset for the country, at home and abroad.

"He has always had the impartiality of the BBC and a desire to see the organisation thrive at the forefront of his work as chairman.

"We understand that the UK Government is moving swiftly to begin the process of appointing a new chairman of the BBC, in line with the terms of the BBC’s Charter."

Culture Secretary Lucy Frazer thanked Sharp for his service, adding: "I am sure there will be further opportunities for you to make a significant contribution to public life."

Johnson, who left Number 10 last September following a Cabinet cabal in the summer, refused to comment on the matter ahead of the probe's publication this morning.

Labour's Shadow Culture Secretary Lucy Powell claimed the BBC's independence had been "seriously undermined".

She said: "The report is clear: Mr Sharp breached the rules expected of candidates by failing to disclose his involvement in a personal loan to the then-Prime Minister.

"As a result, this breach has caused untold damage to the reputation of the BBC and seriously undermined its independence as a result of the Conservatives’ sleaze and cronyism.

"This comes after 13 years of the Tories doing everything they can to defend themselves and their mates."

Liberal Demcorat leader Sir Ed Davey responded to Sharp's resignation by warning the BBC was being "dragged through the mud" by the Tory Party in yet another "sleaze scandal".

He claimed: "Boris Johnson should never have been allowed to appoint Richard Sharp in the first place and what's worse is Rishi Sunak didn't show leadership by sacking him.

"We need a rigorous, transparent and independent process to appoint the next BBC Chair, including a confirmation vote by Parliament's cross-party Culture, Media and Sport Committee."

Sharp's resignation risks putting the BBC in yet another crisis after months of chaos.

Ex-Tottenham Hotspur and England striker Gary Lineker was asked to step back from his duties as host of Match of the Day after he described Sunak's immigration policy as "immeasurably cruel" and compared the language used Germany in the 1930s.

Lineker returned to TV screens after fellow pundits boycotted the BBC's Premier League programme in solidarity.

Ex-Culture Secretary Nadine Dorries was forced to step in to freeze the BBC's licence fee for two years in a move which is expected to help penny-pinching Brits during the cost of living crisis.

But Davie complained the deal would "no doubt" impact frontline output.

Trust in the BBC has also taken a massive hit in recent months.

Net trust in the broadcaster dropped from +21 per cent in August to +14 per cent, an Opinium poll in March has revealed.