BBC annual report fallout and England heartbreak lead Tuesday's newspapers

What the papers say – July 3 Credit: PA

Fallout from the BBC’s annual report – and revelations on the salaries paid to its top talent – make the headlines on Wednesday alongside pictures of England’s football team after defeat at the World Cup.

The Daily Telegraph leads with the corporation seeing an increase in its salary bill for presenters of £11 million at the same time as it is removing funding for free TV licences.

The BBC will take over the cost of funding licences for over-75s from 2020, with Lord Hall saying he sympathised and empathised with those paying the licence fee.

The Daily Mirror claims the BBC is using a “loophole” to conceal the extent of salaries paid to its biggest stars – as fees for shows produced by independent production companies are not included in the report.

The Sun leads with the same story, running the headline “British Broadcasting Cover-up”.

While the Daily Mail says the salary revelations are a “kick in the teeth” for pensioners.

And the Daily Express said campaigners “reacted with fury” while the BBC stood by its decision to “force over-75s to pay for TV licences”.

Elsewhere, the Times reports on new research suggesting excess weight is a bigger cause of four common cancers than smoking.

The Guardian says that the new Prime Minister will have to deal with a new so-called “Gaukward squad” of current Chancellor Philip Hammond and Justice Secretary David Gauke.

The Financial Times reports on the latest appointments to top European jobs.

The Metro says that Boris Johnson will pledge to cut so-called “sin taxes” if he becomes Prime Minister.

The i leads on research on climate change after the hottest ever June was recorded.