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.




