Sir Michael Lyons, Gordon Brown’s adviser on the future council tax, has emerged as the surprise frontrunner to become first chairman of the BBC Trust.

Tessa Jowell, the Culture Secretary, is understood to be close to making an announcement, which could see a former Labour councillor with almost no broadcast experience become the BBC’s regulator.

Contacted yesterday, Sir Michael said that “the process wasn’t finished, so I can’t offer any comment until I know” — hinting clearly that he remained in the race as it reached its closing stages.

As a possible alternative, officials at the Department of Culture have lined up Chris Powell, the advertising executive who chairs the Labour think-tank the Institute for Public Policy Research, and is the brother of Tony Blair’s chief of staff, Jonathan.

An announcement is expected next month and could be made before Easter, and it remains possible that there could be some last-minute twist. Formally, the BBC position is chosen by the Queen in Council, and in practice by the Prime Minister on the advice of the Department of Culture, Media and Sport.

The prospect of the appointment to the £140,000-a-year position with clear Labour links was already unsettling Opposition politicians who stressed the need for political neutrality in a job in which one of the core purposes is to safeguard the impartiality of the BBC. The anticipated selection of Sir Michael, also a former chief executive of Birmingham City Council, also raises eyebrows because of the poor political reception of his three-year report on the future of local government finance.

Ministers almost immediately rejected several of Sir Michael’s recommendations — including abolishing capping, revaluation, the introduction of extra tax bands and a tourism tax.

Hugo Swire, the Shadow Culture spokesman, said: “It is imperative that any chairman of the BBC Trust is able to demon-state their political impartiality. It is a highly sensitive job, and it is inconceivable that a chairman should be closely identified with a political party.”

Senior BBC insiders had expressed the hope that ministers might chose a Conservative, who might provide protection if the political winds change, although the corporation is not likely to object to Sir Michael.

Insiders noted yesterday that he had shown considerable interest in culture in his spare time. Sir Michael is chairman of the Birmingham Symphony Orchestra and he has been a nonexecutive director of Central Television, the former ITV company.

The Department of Culture was keen to find a chairman who was willing to take on a regulatory role.

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