BBC FUNDING REVIEW: Minister accused over cronyism

ACCUSATIONS of Labour "cronyism" resurfaced yesterday when it was suggested that a friend of the Chancellor, Gordon Brown, was to head a review group into BBC funding.

Peter Ainsworth, the shadow Culture Secretary, claimed during Question Time, that Gavyn Davies, chief economist at the London office of Goldman Sachs, would be chairman of the review. He is married to Sue Nye, the Chancellor's private secretary.

Mr Ainsworth challenged Janet Anderson, a culture minister, "to scotch the rumours that the BBC funding review is going to be run, not by somebody who knows about broadcasting, but by an economist, one of the Chancellor's closest friends ... I'm sure that on reconsideration you would love to take this opportunity to dissociate yourself from the culture of cronyism which seems to be invading every aspect of this Government."

Ms Anderson replied: "I am sure you will not expect me to comment until an official announcement is made. And we will take no lessons from your side of the House on allegations of cronyism."