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The BBC's Efficiency Programme
HC 1658, Seventy-third Report of Session 2012-12 - Report, Together Formal Minutes, Oral and Written Evidence
- House of Commons - Committee of Public Accounts
- TSO (The Stationery Office)
In 2007 the BBC was set the target of delivering efficiency savings of 3% a year up, 'The BBC's Efficiency Programme (HC 1658)' reports on the progress to achieve annual savings of £487 million by the end of 2012-13.
The BBC has managed the efficiency programme well and is forecasting that it will deliver £560 million of annual savings by the end of 2012-13, comfortably exceeding its target.
However, by underestimating the scope for efficiency improvements the BBC risks undermining public trust. It also leaves itself in a weak position to argue against future cuts to its budget.
When identifying savings under its efficiency programme the BBC did not prepare a detailed analysis of the costs and value of its services. Such an analysis is vital in deciding where future cuts should fall.
Although the BBC has delivered its efficiency savings it does not fully understand their impact. As a result of the licence fee negotiations in 2010, the BBC must now find a further £700 million of annual savings by the end of 2016-17. In October 2011 the BBC published Delivering Quality First which set out its proposals for meeting this challenge.
The BBC plans to deliver savings of £400 million through further efficiencies and £205 million by cutting services, but its plans also include a contribution of only £40 million from increasing commercial income.
|Format||Paperback||Published||06 Mar 2012|
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