PRITI Patel claims the BBC's reputation has been "compromised" by the disclosures over its 1995 Panorama interview with Princess Diana.

The Home Secretary – who has faced accusations of bullying and been condemned in the courts after her department breached human rights rules – said it was important the corporation rebuilt trust and confidence following Lord Dyson's report into how the interview was obtained.

She also refused to rule out criminal prosecutions after the investigation found Martin Bashir’s actions constituted a “serious breach” of BBC guidelines.

"The BBC itself – one of our great institutions – its reputation has been compromised," the Tory minister told Sky News's Trevor Phillips on Sunday programme.

"They themselves will have to reflect upon the report and spend a great deal of time really looking at how they can regain and rebuild trust and confidence.

"They will have a great deal of work to do in this particular area. Right now is a very, very important time for the BBC to very much look at itself and learn very important lessons from the publication of this report."

Patel said the forthcoming mid-term review of the BBC charter would be a "very, very significant moment" for the corporation.

"There will be an opportunity not only for reflection but an opportunity to look at governance reforms and how effectively accountability and governance can be strengthened," she told Sky News's Trevor Phillips on Sunday.

"There will be a very, very significant moment now - there is no question about this - where lessons have to be learned."

READ MORE: This is why the Diana interview scandal also affects BBC Scotland

The Home Secretary then refused to rule out criminal prosecutions following the publication of the Dyson report.

Scotland Yard has said it will study the report's findings to assess whether it contains any "significant new evidence".

Patel added: "If there is subsequent action that needs to be taken, then clearly – alongside the publication of this report and lessons being learned and changes, changes to the institution, structure, governance, accountability – then that will follow."

Labour’s shadow home secretary Nick Thomas-Symonds has said the BBC must "rebuild trust".

He commented: "Fundamentally the BBC now needs to show that what happened with the Martin Bashir interview couldn't happen again, that obtaining of an interview by deception.

"We've seen the impact that had on the royal family, we've heard princes William and Harry talking very movingly about the impact that has had.

"Very understandingly that's raised very wide questions about ethics and about how that can be prevented from happening again.

"There's a specific question too, as to how the BBC came to once again employ Mr Bashir in 2016 and how that happened.”

"But, look, the BBC makes some great programmes, the BBC still has a great reputation around the world, but it now has to rebuild trust and prove to people that what happened then couldn't happen again."