The BBC risks having to cut more of its services after it missed targets on long-term cost cutting and boosting commercial revenue, the public spending watchdog has warned.
The National Audit Office said the BBC’s £700m Delivering Quality First initiative had delivered annual sustainable savings that were 4% less than planned, and only a quarter of the £22m boost in commercial income anticipated.
It exceeded its overall 2013/14 savings target but only with one-off savings and the “earlier achievement of planned reductions in scope”, such as halving its live Formula One motor racing rights.
Despite the need to cut costs, and a reduction in its public service broadcasting staff by 324 people (2%) in 2012/13, staff numbers rose again the following year by 138 (1%).
The BBC Trust said management had to look again at its overall staff needs “to inform future recruitment and retention plans”.
The NAO said the programme of savings, a response to the 2010 licence fee settlement in which the BBC’s funding was frozen but given extra responsibilities, including the World Service, rural broadband and local TV, would get even tougher in the years ahead.
“The BBC’s plans for future productivity savings involve more significant and potentially riskier changes to organisational structures and ways of working,” it said.
“If the BBC is not able to make planned productivity savings, it risks having to make further reductions to scope.”
The House of Commons culture, media and sport select committee recommended in its report on the future of the BBC last month that the NAO be given full and unfettered access to the corporation’s accounts.
More details to follow ...
