BBC's online services plan rejected

The BBC's governing body rejected the corporation's proposed online local video service.

The BBC Trust said the plans would not improve public services enough to justify either the use of licence fee funds or the negative impact on commercial media.

Sir Michael Lyons, the trust's chairman, said: "It is clear from the evidence that, although licence fee payers want better regional and local services from the BBC, this proposal is unlikely to achieve what they want.

"We also recognise the negative impact that the local video proposition could have on commercial media services which are valued by the public and are already under pressure.

"We believe the BBC's priority should be improving the quality of existing services.

"The public wants better quality regional television news programmes and more programmes of all kinds produced in and reflecting their areas.

"We would expect BBC management to consider carefully the conclusions of this public value test before returning to us with new proposals."

Regional newspapers criticised the plans for an enhanced network of 65 websites across the UK, saying they would represent unfair public-funded competition.

Andrew Harrison, chief executive of RadioCentre, the industry body for Commercial Radio said: "We are pleased that, in looking at the evidence presented to it by RadioCentre, Ofcom and other stakeholders, the Trust has reached a sensible conclusion.

"Local communities already receive valuable local news and information from 320 commercial radio stations spread across the UK; the introduction of a publicly funded service of this nature would have had a devastating effect on these small local businesses."

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