Editorial independence has always been a fundamental part of the BBC's existence

BBC spokesman

She would also be able to impose fines for "a slump in the volume of domestic programmes or a loss of diversity".

The new measures are included in a new draft of the Communications Bill, after complaints from ITV companies that the BBC had started to "behave like a commercial company", chasing viewer figures with populist programmes and soaps.

'Editorial independence'

But they would only be used if the BBC governors, who are responsible for overseeing BBC standards, failed to act.

The BBC has been opposed to measures which would undermine its tradition of regulation by its own board of governors.

Davies: Editorial independence a constant

A BBC spokesman told BBC News Online: "Editorial independence at the BBC has always been a fundamental part of the BBC's existence, and this will always be the case.

"The governors are constantly regulating to ensure standards are well-maintained and come down heavily if they are breached."

Controversial

But the Communications Bill would be stricter with the BBC than an earlier White Paper had suggested, said Ms Jowell.

"The position we are talking about now is different - we have got to show that we have listened," she said.

Government fines would be controversial, as the BBC's revenue comes from viewers' TV licence fees.

One option reportedly under consideration would be to force BBC departments to pay their fine to other programme-making departments within the BBC.

The creation of Ofcom forms the central plank of the Communications Bill, detailed in the Queen's Speech in June.

Besides creating the new authority - which will replace the Independent Television Commission, the Office of Telecommunications, the Broadcasting Standards Commission and the Radio Authority - the Bill is expected to relax the rules on ownership of ITV companies.