BBC director general Greg Dyke has resigned as the fallout from the Hutton report continues at Broadcasting House.

Dyke's move, which followed that of chairman Gavyn Davies on Wednesday, was greeted with dismay by thousands of staff who walked out of their offices in support.

The Guardian claims Dyke was "effectively forced out" after the governors "lost their nerve" in the face of government pressure.

Downing Street welcomed the resignations and an "unreserved" apology that followed from acting chairman Lord Ryder following the controversial Today programme report that triggered the row.

However ministers may now be wary of a post-Hutton backlash, with polls in today's papers showing the public still trusts the corporation more than the government - even after Lord Hutton's damning verdict.

One government official is also reported in the FT to have expressed concern that former Number 10 spin chief Alastair Campbell is "rubbing it in".

Writing in the Times, Peter Riddell concludes: "Blair will need to demonstrate his interest in a strong BBC if he is to overcome public suspicions about the corporation and the government."