Sir Michael Lyons, the chairman of the BBC Trust has said they put up a "all-or-nothing" struggle to protect the licence fee from being frozen or used to prop up other broadcasters.

In an interview with FT, Lyons said: "The trust was set up to protect the independence of the BBC and its health on behalf of the nation … So this is a very important principle we will be fighting for, and we will be robust on that."

He is trying to draw a line in the sand as ministers finalise their proposals for supporting C4, which may include a slice of the license fee. Meanwhile David Cameron, head of the Conservatives, has said he will freeze the license fee.

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