The committee said Mr Sharp should "consider the impact his omissions will have" on public trust in the broadcaster after he failed to declare his role as a go-between for the former prime minister when applying for the chairman's job.

The MPs also said his actions "constitute a breach of the standards expected of individuals" applying for prominent public appointments.

Mr Sharp said he did not arrange the loan but admitted introducing his friend Sam Blyth, a cousin of Mr Johnson who wanted to help the then-prime minister, to the Cabinet Office.

A spokesperson for Mr Sharp said he "regrets" not telling MPs about his association with Mr Blyth "and apologises".

"It was in seeking at the time to ensure that the rules were followed, and in the belief that this had been achieved, that Mr Sharp acted in good faith in the way he did," the spokesperson said.

The strongly-worded report from the cross-party MPs on the Commons Digital, Culture, Media and Sport Committee suggests Mr Sharp's actions could damage the BBC.

The same committee backed Mr Sharp's appointment to the chairman's job in January 2021 but was not aware of his role in facilitating the loan.

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"Richard Sharp's decisions, firstly to become involved in the facilitation of a loan to the then-prime minister while at the same time applying for a job that was in that same person's gift, and then to fail to disclose this material relationship, were significant errors of judgement, which undermine confidence in the public appointments process and could deter qualified individuals from applying for such posts," the committee said.

The MPs continued: "Mr Sharp should consider the impact his omissions will have on trust in him, the BBC and the public appointments process."

A Cabinet Office spokesperson said: "The Office of the Commissioner for Public Appointments is reviewing the competition to ensure the process was run in compliance with the rules and we will await the outcome."