Following Mr Davie's resignation, several Conservative and Reform MPs have joined Donald Trump in calling for a reset at the broadcaster
The BBC boss left his role overnight along with CEO of News Deborah Turness, following criticism that the US President's speech on January 6, 2020 – broadcast as part of a BBC Panorama documentary – was "dishonestly" edited.
Mr Trump hit out at the corporation after a damning 19-page dossier said the programme “completely misled” audiences by showing the President telling his supporters he was going to the Capitol building with them to "fight like hell".
Following Mr Davie's resignation, several Conservative and Reform MPs have joined the American leader is calling for reset at the broadcaster, with Mr Farage accusing the disgraced BBC chief of "double standards" over his handling of the crisis.
"The Government need to appoint somebody with a record of coming in and turning companies and their cultures around," the Reform leader said.
"This is the BBC's last chance. If they don't get this right, there will be vast numbers refusing to pay the licence fee."
Tory leader Kemi Badenoch believed it was right that Mr Davie and Ms Turness have finally taken responsibility and resigned, but added that "heads should roll" over the revelations, which she branded 'absolutely shocking'.
"Let's be honest, this has been a catalogue of serious failures that runs far deeper," Ms Badenoch said.
"The Prescott report exposed institutional bias that cannot be swept away with two resignations – strong action must be taken on all the issues it raised.
"The culture at the BBC has not yet changed. BBC Arabic must be brought under urgent control. The BBC's US and Middle East coverage needs a full overhaul.
"And on basic matters of biology, the corporation can no longer allow its output to be shaped by a cabal of ideological activists.
"The new leadership must now deliver genuine reform of the culture of the BBC, top to bottom."
Senior Tory MP James Cleverly said the BBC's problem was "a failure to recognise its own bias".
"They saw each 'mistake' as being in isolation and couldn't or wouldn't see a wider pattern.
"I want the BBC to succeed, it's a powerful British brand, but it needs a proper kick up the arse for that to happen. Perhaps this is it."
Culture Secretary Lisa Nandy said: "I want to thank Tim Davie for his service to public broadcasting over many years.
"As a Government, we will support the board as it manages this transition and ensure that the Charter Review is the catalyst that helps the BBC to adapt to this new era."
In a message sent to staff on Sunday evening, Mr Davie said: "I wanted to let you know that I have decided to leave the BBC after 20 years.
"This is entirely my decision, and I remain very thankful to the chair and board for their unswerving and unanimous support throughout my entire tenure, including during recent days.
"I am working through exact timings with the board to allow for an orderly transition to a successor over the coming months."
The Telegraph has also published more excerpts from the memo, which accuse the BBC’s Arabic service of bias over its coverage of the war in Gaza, and accuse the corporation of “effective censorship” in its coverage of the transgender debate.
After the week of damning revelations, Ms Turness, BBC News's CEO, confirmed in a letter to staff today that the corporation's chairman will be responding to urgent calls for answers next week.
She told staff members in a letter seen by LBC: "The BBC Chairman has received a letter from Caroline Dinenage, the Chair of the Commons Culture, Media & Sport Committee seeking reassurance from the BBC.
"The Chairman will be providing a full response on Monday, and this will be shared with you, but I felt it was important for me to come to you as CEO of BBC News before the end of the week."
BBC chairman Samir Shah has said it “is a sad day for the BBC” following Mr Davie’s resignation.
He said: "Tim has been an outstanding director-general for the last five years. He has propelled the BBC forward with determination, single-mindedness and foresight.
"He has had the full support of me and the board throughout. However, I understand the continued pressure on him, personally and professionally, which has led him to take this decision today. The whole board respects the decision and the reasons for it.
"Tim has given 20 years of his life to the BBC. He is a devoted and inspirational leader and an absolute believer in the BBC and public service broadcasting.
"He has achieved a great deal. Foremost, under his tenure, the transformation of the BBC to meet the challenges in a world of unprecedented change and competition is well under way.
"Personally, I will miss his stamina, good humour and resilience and I will miss working with him. I wish him and his family the very best for the future.
"This is an important time for the corporation and the board and I will continue to work with Tim in the interim while we conduct the process to appoint his successor.”
