THE reputation of the BBC has been “badly tarnished” following an inquiry into the Panorama interview with Diana, Princess of Wales, John Whittingdale has said.

The Media Minister and Maldon MP said Lord Dyson’s probe into how Martin Bashir obtained the interview made for “shocking reading”.

Harwich and North Essex MP Sir Bernard Jenkin also called for an independent arbiter to regulate the broadcaster.

Lord Dyson’s independent inquiry found Mr Bashir used deception to get the interview.

Mr Whittingdale took questions in the House of Commons surrounding the scandal, after his boss, Culture Secretary Oliver Dowden said the report had exposed “failures that strike at the heart of our national broadcaster’s values and culture”.

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Mr Whittingdale told the House: “Lord Dyson’s report makes shocking reading.

“It details not just an appalling failure to uphold basic journalistic standards, but also an unwillingness to investigate complaints and to discover the truth.

“That these failures occurred at our national broadcaster is an even greater source of shame.

“The new leadership at the BBC deserves credit for setting up an independent inquiry and for accepting its findings in full, however the reputation of the BBC – its most precious asset – has been badly tarnished.”

Sir Bernard told MPs: “Until there is a permanent and independent body [at the BBC] - a completely independent body overseeing editorial policy, complaints procedures, whistleblowing, like a kind of accident investigation body -we’re not going to see that change of culture because they will go back to their established custom, which is to deny accountability.”

In response, Mr Whittingdale said: “We do need to see a much stronger oversight of the editorial decision-making process in the BBC.

“I think there is a case for greater oversight, particularly of journalistic decisions and editorial decisions.”

He added there are no plans to dismantle or defund the BBC, describing it as a “priceless national asset”.