Gavyn Davies has ruled out reforms in the wake of the Hutton report

The Institute of Public Policy Research questioned their role after they backed a BBC story on claims Downing Street exaggerated the case for war with Iraq.

The call came ahead of Lord Hutton's report into the death of David Kelly, who was linked to the BBC story.

The IPPR said the governors acted as a regulator to the BBC, while other broadcasters had to report to Ofcom.

It also suggested an end to the BBC licence fee and the introduction of a scheme to pay for the corporation through income tax.

Its proposals were revealed on Sunday as Lord Hutton officially retired as a Law Lord.

'More independent'

The IPPR's recommendation comes as both ministers and the BBC are braced for criticism by Lord Hutton.

BBC chairman Gavyn Davies has already ruled out "major reforms" in the wake of the inquiry's report.

Hutton retires as Law Lord BBC chairman rules out reforms

IPPR spokesman Jamie Cowling said: "Clearly there is a need to make the BBC governors more independent of the BBC."

He said bringing the BBC under Ofcom would risk cutting the diversity of broadcasters.

Instead, Mr Cowling suggested the governors be made a separate body from the corporation.

Former Number 10 aide Lance Price has said the governors' role must be reviewed because of the Dr Kelly affair.

Civil offence

In a collection of essays due for publication later this week, the IPPR also suggested an end to the licence fee.

It said the TV "poll tax" should be replaced by ring-fenced income tax.

Licence fee concessions offered to the over-75s should be extended to everyone on incapacity benefit and non payment made a civil offence to stop the poor being criminalised, the think tank said.

Mr Cowling said: "The licence fee should come from income tax paid by individuals and not a 'poll tax' paid per household.