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His apology was made shortly after it was announced that director-general Greg Dyke had resigned, which was made public this lunch time.

"On behalf of the BBC I have no hesitation in apologising unreservedly for our errors and to the individuals whose reputations were affected by them," Lord Ryder said.

The move followed calls by Prime Minister Tony Blair for a full apology from the BBC for the allegations it made.

In his own statement Blair said he is keen to move on after the BBC apology and that he fully respects the "independence" of the BBC.

"I've no doubt the BBC will continue to probe and question the government in every proper way. I think what this does now is it allows us to draw a line and move on -- the BBC to get on with their job and the government to get on with ours," Blair said.

Blair added: ""This for me has always been a very simple matter. An accusation - that was a very serious one ... was made, that was a false accusation as Lord Hutton has found - it's now been withdrawn. That's all I ever wanted."

Lord Ryder said the departures of BBC chairman Gavyn Davies and Dyke would be regretted throughout the BBC and that their contributions to the organisation in terms of strong, dynamic leadership were beyond doubt.

"I would like to place on record the appreciation of the board of governors for their services to the BBC. The BBC must now move forward in the wake of Lord Hutton's report, which highlighted serious defects in the corporation's processes and procedures," he said.

In response to the stinging criticism of editorial practices levelled at the BBC by the Hutton Report into the death of Ministry of Defence scientist Dr David Kelly, Lord Ryder said major reforms were now being implemented, which he said would be completed by acting director-general Mark Byford.

"We have begun to implement major reforms, including outside journalism, compliance systems, editorial processes and training of new recruits."

Byford, who was promoted to deputy director general towards the end of last year, has worked for the BBC for 24 years.

In a statement, Byford paid tribute to Dyke and said he was shocked and saddened at his departure.

However, looking to the future he said the BBC must learn from the Hutton Report.

"I recognise it is now my task as acting director-general to lead the organisation through what is a very turbulent period. We must now study the Hutton Report carefully, learn appropriate lessons and implement relevant measures," he said.

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