Ministers are weighing alternatives to the BBC licence fee after an editorial row triggered a $1bn legal threat from the US President. The BBC chair apologised and the director-general resigned, intensifying concerns over leadership and relevance as some push a subscription model.

BBC director-general Tim Davie resigned after a programme about the US President used an edited clip, sparking bias claims. BBC News chief executive Deborah Turness also quit. A leaked memo showed pressure to address alleged systemic bias. Davie said he took ultimate responsibility.

Labour MPs are discussing a potential leadership challenge to Starmer, triggered by frustration with No 10 and plans to raise income tax in the forthcoming Budget. Meetings among backbenchers reportedly explored candidates and timing, though senior figures urge caution and say no move is imminent.

New deputy leader Lucy Powell urges the PM and Chancellor to drop planned income tax rises, warning they would breach Labour’s manifesto and erode trust. She also backs scrapping the two-child benefit cap. Ministers hit back, saying circumstances have changed and Reeves has set out the case.