Responding to the Government's Green Paper on Charter renewal, BBC chairman Michael Grade said that the idea of "top-slicing" the licence fee to allow the BBC's competitors, such as Channel 4, to compete for a share, would pose a threat to the corporation's political independence.
Grade also accused the Government of underestimating the impact of new technology on the TV market, claiming it was vital that the BBC be allowed to respond flexibly to the change.
There are still several months of debate in Parliament before the Government firms up its plans for the BBC's next Charter.
While there is pretty much a consensus on areas such as a new board of trustees coming in to replace the current systems of governors, other areas remain the subject of fierce debate, not least the possibility of the BBC being forced to share its licence fee income.
Speaking to the Westminster Forum, Grade said that the idea of top slicing "would break the clear and well-understood line of accountability between the BBC and the licence fee payer".
He added: "It would pose a threat to the political independence of the BBC, handing a punitive fiscal Sword of Damocles to any unscrupulous government that wanted to bring the BBC to heel."
Grade also claimed such a move would "seriously weaken" the BBC's ability to invest in content "at a time when the provision of public service programming from other public service providers is in doubt".
The BBC's response to the Green Paper has seen it welcome many of the proposals, while arguing that it should be allowed to keep as much flexibility as possible.
Grade claimed that the pace of change in the TV market meant it was "vital" that the BBC remained agile.
"Digital radio, digital satellite, HDTV, mobile platforms, podcasting, on-demand delivery via broadband – these and, no doubt, many more technologies as yet unveiled – also have the potential to transform the media landscape," he said.
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