The BBC, which is independently run despite being financed by public money is facing perhaps the worst breakdown in relations with the government in its 82-year history.
The dispute came after a BBC radio report last year alleged that Prime Minister Tony Blair's government deliberately exaggerated the threat posed by Iraq's alleged weapons of mass destruction in a pre-war dossier.
Government weapons expert David Kelly was later identified as the anonymous source of the charge. Kelly killed himself soon afterwards.
An inquiry into Kelly's death, led by judge Lord Brian Hutton, concluded last month that the BBC's story had been "unfounded", a verdict which forced the corporation to apologize, with the corporation's chairman and director general resigning.
According to The Sunday Times, the new plans for the BBC will bring accusations that "the government is gearing up to exploit the fall-out from the Hutton inquiry".




