The Trust chairman of the BBC warned that there may be some serious cut backs on the corporation's digital TV services as it aims to make at least £300 million in savings, the Guardian reports.

Sir Michael Lyons said that "hard choices" need to be made in relation to BBC's "content and services" following the 2010 licence fee settlement between the corporation and the government.

He added that the BBC should concentrate more effort in improving TV and radio programs like BBC1, BBC2, Radio 1 and Radio 2.

There was no mention as to whether the same endeavours should be directed towards BBC's digital radio and TV services.

The corporation should "assess how the shape of the BBC's television portfolio as a whole might develop" and make the much needed savings in "areas where the BBC's public value is lower", said Lyons.

After the switchover to digital TV is complete in 2012, Lyons indicated that this could be one sphere in which cuts can be directed. Lyons comments were published in an open letter to Mark Thompson, the Director-General of the BBC.

Following the licence settlement, which froze the fee at its current level of £145.50, the BBC's income is expected to be at least 16 per cent lower in 2016 than in 2011.

The corporation's digital TV services offer more opportunities for savings to be made as they have much bigger budgets than their digital radio counterparts.