BBC chairman Richard Sharp resigns over role in Boris Johnson loan

Report found he had not properly disclosed his part in £800,000 loan guarantee to then-PM

The report said the role of Richard Sharp, left, in the loan to Boris Johnson compromised his independence from government. PA

BBC chairman Richard Sharp has resigned after a report found he breached the UK public-funded broadcaster's code on public appointments.

The report found Mr Sharp had not properly disclosed his role in securing a £800,000 loan guarantee to then-Prime Minister Boris Johnson.

Mr Sharp, who was a donor to the governing Conservative Party before his BBC job, will stand down at the end of June.

The report by barrister Adam Heppinstall was ordered after it emerged Mr Sharp played a role in facilitating the loan guarantee before he was recommended for the influential role overseeing the BBC's independence.

Mr Sharp introduced his friend Sam Blyth — who wanted to help Mr Johnson with his financial troubles — to the Cabinet Office.

When he made the introduction to Cabinet Secretary Simon Case in December 2020, Mr Sharp said he did so “in good faith” and with “the best of intentions”.

But Mr Heppinstall, in his report published on Friday, said he disagreed with the assessment that his conversation with the then-prime minister did not amount to a conflict of interest.

“It may well have been a reasonable conversation in the context of Mr Sharp's role as special adviser, but failing to mention it to the [BBC] panel does amount to a failure to disclose a potential perceived conflict of interest,” Mr Heppinstall wrote in his report.

“There was a risk that members of the public might form the view that Mr Sharp was informing the prime minister of his application because he wanted him to make a recommendation to appoint him.

“They might also perceive that he was putting himself in a position where he might, if appointed, be beholden to the prime minister for his support such that his independence from government was compromised.”

Mr Sharp resigned on Friday and released a statement.

“Mr Heppinstall's view is that while I did breach the governance code for public appointments, he states that a breach does not necessarily invalidate an appointment.” he said.

“Indeed, I have always maintained the breach was inadvertent and not material, which the facts he lays out substantiate. The Secretary of State has consulted with the BBC Board who support that view.

“Nevertheless, I have decided that it is right to prioritise the interests 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.”

Opposition Labour Party shadow culture secretary Lucy Powell said the Prime Minister Rishi Sunak should “establish a truly independent and robust process” to replace Mr Sharp.

“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 PM,” said Ms Powell.

“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.”

Prime Minister Rishi Sunak said he has not seen the report but was unable to guarantee a non-political figure would replace him.

“There's an appointments process that happens for those appointments. I'm not going to prejudge that,” he said.