There is life outside London, says BBC chief

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He told the Royal Television Society in London that "many people don't think the BBC does a good enough job" at representing them. The Corporation has frequently been accused of having a liberal bias and of being dominated by a "metropolitan elite".

Sir Michael said: "I have spent much time in my first six months going around the country listening to different audiences and one of the issues constantly raised is that people want to see their lives reflected in BBC output - they want to be represented."

He acknowledged a "real concern" that BBC pay packets could reflect "US realities".

Jonathan Ross is said to earn £18 million over three years, Little Britain stars David Walliams and Matt Lucas £6 million, and Graham Norton £5 million.

Sir Michael said: "It is important that the BBC does not use the privilege of a guaranteed income to overbid for talent - thereby raising costs for the industry as a whole and reducing the value delivered to licence fee payers."