The Ticker module can display the image from a MediaRSS feed with the text over the top. You could use that?
Use the “Image overlaid with the title” template from the Appearance tab.
I don’t have a good UK news URL, but using the Nasa image of the day feed will show you what it can do:
Feed URL: NASA Image of the Day
Duration: 5
Effect: Fade
Template: Image overlaid with the Title
Speed: 2
Duration is per item: Ticked
Gives you something like this:
Sky News feeds work, but the images they provide are really small so the quality is pretty poor:
http://feeds.skynews.com/feeds/rss/world.xml
The Guardian in pictures works too, but their images seem to vary in size:
http://www.theguardian.com/inpictures/rss
http://www.theguardian.com/theguardian/rss