Ed Davey says prime minister must make it clear lawsuit is ‘unacceptable’ as US president quotes Badenoch to back ‘fake news’ claim

BBC bosses are “right to stick by their guns” against Donald Trump, Stephen Kinnock, the health minister has said, after the US president filed a $10bn lawsuit against the corporation. Eleni Courea has the story.

Good morning. Ministers are due to publish today a green paper on BBC charter renewal, setting out plans for how the corporation will be funded into the 2030s. With fewer and fewer people watching free-to-air TV, the licence fee is getting harder to justify, but there is no consensus as to what should replace it.

However, within the BBC at least, there probably is a consensus that the last thing licence fee payers want to see their money spent on is a multimillion-pound compensation payment to Donald Trump.

This has come to a head because the president has finally filed his lawsuit demanding damages worth up to to $10bn for the way a BBC Panorama documentary edited a clip from the speech he gave to supporters on 6 January 2021 before they attacked the US Capitol. Here is our overnight story by Callum Jones and Jeremy Barr.