Financial Times FT.com

BBC set for clash over C4 rescue funding

By Ben Fenton, Chief Media Correspondent

Published: June 18 2009 00:29 | Last updated: June 18 2009 00:29

Battle lines were being drawn on Wednesday between the government and the BBC as it emerged that plans to use licence fee cash for regional news could jeopardise a separate proposal, favoured by ministers, to rescue Channel 4.

If ministers go ahead with “top-slicing” up to £130m a year from the licence fee, the BBC Trust, the corporation’s governing body, would have to consider it as a factor when deciding on a planned joint venture with its commercial rival, according to a person familiar with the BBC’s strategy.

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