VLV research shows that BBC public funding available for UK services has dropped by just under 40% in real terms since 2010. Our analysis is based on BBC Annual Reports.
The gradual reduction in BBC public funding since 2010 has left the BBC with significant annual deficits which it has balanced through annual savings and increased dividends from BBC commercial services. According to the NAO the BBC has exceeded its original target of £800 in annual savings. Two years ago the BBC announced it needed to make a further £500 million of annual savings between 2022 and 2024; it now estimates that further annual savings of £200 million per annum are required until 2027/28.
What this means for audiences is that services and programmes are being either reduced or will have to be cut – it’s estimated that about 1,000 hours of programming have already been cut from BBC schedules.
VLV, which represents citizen interests in broadcasting, is concerned that under such financial pressure the BBC is likely to be unable to continue to maintain the range and quality of existing services for UK audiences and is likely to focus on providing content which is more attractive to broadcasters around the world. This could undermine the BBC’s delivery of UK-specific public service content which benefits British society and the wider UK economy.
VLV has long argued that the process for setting the BBC’s funding should not be conducted behind closed doors without any parliamentary or public scrutiny.
VLV proposes that an independent body should be established to recommend a level of funding for the BBC and that no decision should be reached until there has been Parliamentary debate. This would provide greater transparency and reinforce the independence of the BBC, including protection from political decisions by the Government of the day. This proposal has had the support of the BBC and the Select Commitees in both the House of Commons and the House of Lords.
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