Bruised BBC Faces Change After Hard-Fought Inquiry

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LONDON, England (Reuters) - Emerging from a damaging inquiry that has gripped Britain, the BBC can be sure of one thing as it surveys the wreckage -- it will never be the same again.

The British broadcaster, lauded around the world for its gold-standard reporting, has spent the summer defending its reputation in a high-profile investigation into the death of a weapons expert. Insiders say it will not survive untouched.

A verdict is not expected for several weeks but Auntie, as the BBC is fondly referred to in Britain, is plotting a wide-ranging shake-up to defuse criticism that might be meted out by Lord Hutton, the judge leading the inquiry.

"Neither the BBC nor the government will come out of the Hutton washing machine whiter than white," said Jamie Cowling, a research fellow at the Institute of Public Policy Research.

"There is no question the BBC will have to change."

That change could include sacrificial lambs, others said.

At the very least, Andrew Gilligan -- the journalist behind the report at the center of the inquiry -- is expected to be axed from the BBC's agenda-setting Today radio program.

Gilligan sparked a furor by accusing Tony Blair (news - web sites)'s government of embellishing the case for war on Iraq (news - web sites). Gilligan's source, weapons expert David Kelly, subsequently killed himself.

The 81-year-old institution argues the broad thrust of its report was accurate but admits it made mistakes and is now under pressure to tighten editorial guidelines and management lines.

The BBC, publicly funded and overseen by a chairman appointed by the state, is no stranger to political spats and has gone to great lengths to prove its independence and take on a more aggressive edge in an increasingly competitive market.

But insiders say it is time for a culture change.

The inquiry comes at a key time as the broadcaster gears up for a battle over its future, with its charter up for renewal.

TOP BRASS IN THE DOCK

Less clear cut is the future of the BBC's straight-talking Director General Greg Dyke and Chairman Gavyn Davies.

The executives -- both had been labeled "Tony's Cronies" for their backing of Blair -- have been knocked for fueling the row in a rush to show their independence from the government.

"There are clearly questions about whether they rushed too quickly to defend Gilligan. However, you have to see this in the context of what was a pretty ferocious onslaught by the government," said Steven Barnett, professor of communications at London's University of Westminster.

Critics say the BBC's top positions should be reviewed.

For Dyke, that means a debate over whether the director general should both lead the BBC and act as editor-in-chief. For Davies, that means a debate over whether the governors should have a dual role as defender and regulator of the BBC.

Among other key players, media experts say the future of the head of news Richard Sambrook will depend on Hutton's findings.

"The BBC might not fire anyone immediately but they could end up shunting people to one side," said one analyst.

Dyke has said he is reviewing guidelines for producers, use of anonymous sources, "two-way" broadcasts and freelancing.

"It should accept criticism, change its procedures but press full steam ahead with its efforts to set the news agenda," former BBC journalist John Kampfner wrote in Britain's Guardian.