Lyons: BBC does not overpay talent

BBC Trust chairman Sir Michael Lyons has said the corporation needs to be "bolder at walking away" from some talent deals despite a report concluding that the corporation is not paying above market rates for its stars.

Lyons told BBC Radio 5 Live that the report into star salaries, to be published this morning, will say the corporation is not paying above market rates for talent or distorting the market.

Nevertheless he said improvements could be made.

"This is quite a positive report about keeping grip on talent costs over the years. But the BBC needs to be even better at bringing on new talent so that people have choice and be even bolder at walking away from deals," Lyons said.

He said there was public discomfort about the level of top talent salaries, but that the report concluded that the BBC "isn't generally paying above market rates or distorting the market and that over the years it has brought down the rate of top talent costs by better negotiation".

Lyons also defended the BBC airing reality talent shows such as I'd Do Anything despite them being similar to the output of commercial broadcasters.

"Certainly they're the same genre [I'd Do Anything and Britain's Got Talent], but we have to remember that everyone pays a licence fee and has a right to expect something in return for their £139.50 a year. There can be no retreat from audiences. It's not possible for the BBC to say 'we'll serve these people, but not these'."