A new BBC report says the Corporation is on course to deliver £951million of savings by March next year.
The report, BBC Value for Audiences, looks at the effectiveness of the response to “an effective real-terms reduction in income” of around 30% since 2010/11 as a result of increased funding obligations, such as the World Service and S4C, and the freeze in licence fee income for five years from 2010 along with the increase in competition for audience time with the rise of streaming services, social media and gaming.
The report also says that the BBC’s commercial entities have grown their income by 50% and over 95% of the BBC’s “controllable spend” is now on programmes, services and delivery
However, the report identifies that further savings will involve “difficult choices” that will impact programmes and services.
The report says the BBC has already halved the number of senior managers, reduced the costs of managing the BBC’s property estate by 22%, delivered 29 completed major projects since 2012/13 – on average 9% below budget, saved 45% on major strategic contracts costs, saving £300million a year and cut the BBC’s overheads from 7.6% to 4.8%.
It also says that it has raised BBC commercial income by 50% to a record £1.6 billion, increased commercial returns back to the licence fee payer by 50% to £276million and established BBC Studios as a “world-leader.”
Tim Davie, BBC Director-General, says: “The BBC has made big changes to ensure we provide outstanding value. We are smarter spenders and savers and more efficient than ever before, but there is more to do.
“The financial challenges and competition we face continue to evolve and while we have demonstrated we can deliver, I want us to adapt and reform further to safeguard the outstanding programmes and services that our audiences love for the future.”
Jon Creamer
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