Downing Street last night insisted that it was pressing ahead with moves to make Sir Alan Sugar a working peer despite his deal with the BBC that limits what he can do for the Government.

Sir Alan has struck a compromise with the BBC that allows him to combine the TV series with his new role as an “enterprise czar”. But the benefits of the deal for Gordon Brown — who announced he would nominate Sir Alan for a peerage ahead of the reshuffle — looked less obvious as the BBC stressed the limits its rules on impartiality placed on him. The BBC said that Sir Alan had agreed not to make any public appearances in his role as government adviser while The Apprentice was being screened. During an election he will not be able to appear publicly in his role as an adviser. He will not be allowed to campaign for Labour.

The assurances failed to convince the Tories, however, who were last night considering launching an appeal against the decision by BBC director general Mark Thompson. Jeremy Hunt, the Shadow Culture Secretary, said that the decision to give the go-ahead was “a huge climbdown by the BBC that questions the strength of their rules on impartiality”. The Times reported last week that Sir Alan was willing to take The Apprentice to another channel if the corporation would not agree to a deal that would allow him to keep both roles.

In a letter to Mr Hunt, Mark Thompson, the Director-General of the BBC, said that Sir Alan would not be paid for advising the Government, would not have a desk in Whitehall and would not be able to claim any government expenses. Mr Thompson said that Sir Alan could brief the Cabinet on business matters, but “could not play any direct role in formulating government policy, or occupy a position which obliged him to promote or endorse government policy”.

The Director-General also said that when Sir Alan’s peerage was confirmed, he would be expected to ensure that any interventions he made in the House of Lords were “entirely compatible with his role at the BBC and do not compromise our editorial integrity and impartiality”.

The Conservatives claimed that the BBC had deliberately buried the news on the day that MPs’ expenses were officially published. Mr Hunt said: “This is an outrageous piece of media management by the BBC. Slipping this letter out when the media is focused on MPs’ expenses is simply staggering. To make matters worse, Mark Thompson’s justifications are riddled with inconsistencies. Sir Alan won’t be able to formulate government policy, yet is allowed to go to Cabinet meetings to inform debate. He won’t be put up for interviews by a government department, yet on the day of the Apprentice final he did two broadcast interviews talking about his new role.”

The Tories are considering an appeal to the BBC Trust, which has the right to overturn Mr Thompson’s decision.

Downing Street said that Sir Alan’s nomination was under consideration by the House of Lords Appointments Commission and that there was no reason to believe that it would not be accepted.

Sir Alan said: “I am passionate about business and enterprise and that has always been my motivation for wanting to take on this role. I am glad the BBC is satisfied that I will not be doing anything to affect its commitment to impartiality.”

The BBC said: “The BBC is satisfied that his role as an enterprise champion to the Government will not compromise the BBC’s impartiality or his ability to present The Apprentice . . . Should he be offered a peerage, Sir Alan will also be free to join other peers who do work for the BBC, including Lord Lloyd-Webber, Lord Bragg and Lord Winston.”

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