BBC Future Direction and Budget Challenges

Yesterday the BBC Trust chairman Sir Michael Lyons announced the BBC's strategy review, saying that it couldn't rule out the closure of some services. Steve Hewlett talks to Michael Lyons about where the BBC cuts are likely to fall and his response to the culture secretary Jeremy Hunt's recent claims that BBC political reporting has been out of touch with the national mood.

Banker Nicholas Shott has been looking into the viability of US style local television news channels for the UK. In his report, commissioned by the government, he outlines how local television news would be funded. He talks to Steve Hewlett about the possibility of local television news at the touch of a digital button.

With changes to the BBC and television news on the horizon, media commentators Maggie Brown and Neil Midgley are in the studio to explain the implications of the BBC review and Nicholas Shott's report.

The producer is Simon Tillotson.