Post by Teddy Bear on May 11, 2012 20:28:08 GMT
Clearly without creative ability to develop quality programmes, or even attract this creativity. the BBC has to pay its existing 'stars' more money, as well as themselves, and on needless moves around the country. It hasn't occurred to them yet that with TV and Radio it doesn't matter where you are in the world when you broadcast.
BBC's Salford move helps to increase overheads by 39 per cent
The cost of running the BBC's offices has risen by 39 per cent since its decision to move a bulk of its programmes to Manchester, the public spending watchdog says.
By Christopher Hope
The National Audit Office said the cost of running the BBC’s offices and studios had increased by £80million to £284.1 million a year in the four years to 2010/11.
It blamed the increase in overheads in part on the decision to move programming to MediaCityUK in Salford and redeveloping Broadcasting House in central London.
In the past months the BBC has moved BBC Breakfast, Radio 5 live and Match of the Day to the new £200million MediaCityUK complex.
However the broadcaster had yet to sell off Television Centre in west London, which meant property costs were too high. Teh NAO said: “It is currently maintaining a larger estate than it needs during the transitional period.”
The report, titled “The BBC’s approach to managing the cost of its support functions”, criticised the broadcaster for having too much office space.
The cost of the BBC’s estate per full-time employee had been consistently higher than the normal in recent years.
The NAO found that it was 34 per cent higher than the industry benchmark in 2009/10 and 54 per cent higher in 2010/11.
The auditors questioned whether an existing target to cut overheads by 10 per cent “demonstrates a clear commitment to licence fee payers”.
The NAO added that it was not clear that the target was “pitched at the right level” nor if “the target will deliver value for money”.
Spending on its offices was the only one of eight back office functions – including marketing, communications, procurement and the director general’s office - which had increased in cost after inflation.
The auditors also found that there was “scope for savings” compared with similar back office costs in the wider public sector.
Amyas Morse, head of the National Audit Office, said the BBC’s approach to challenging “costs should be further strengthened in the future”.
The BBC had to be “consistent and rigorous in defining the service it requires from its support functions; identify what that service should cost; and adjust its costs accordingly”, he added.
Anthony Fry, BBC Trustee with lead responsibility for value for money, said: “We accept that there are improvements to be made to understand exactly what each support function should cost and to make future cost savings in a more co-ordinated and consistent fashion.
“We have set the BBC management a target to deliver 11 per cent of efficiency savings by 2016-17 and the NAO’s recommendations will help us achieve that target in the right way.”
A BBC spokesman said: “The NAO has recognised the significant reductions in costs we have made in our support services since 2006. Once the transitional period in the BBC estate is over and the short term building projects have been finished, the overall operations costs will have significantly reduced, enabling annual recurring savings of £47m p.a. from 2016/7.”
The cost of running the BBC's offices has risen by 39 per cent since its decision to move a bulk of its programmes to Manchester, the public spending watchdog says.
By Christopher Hope
The National Audit Office said the cost of running the BBC’s offices and studios had increased by £80million to £284.1 million a year in the four years to 2010/11.
It blamed the increase in overheads in part on the decision to move programming to MediaCityUK in Salford and redeveloping Broadcasting House in central London.
In the past months the BBC has moved BBC Breakfast, Radio 5 live and Match of the Day to the new £200million MediaCityUK complex.
However the broadcaster had yet to sell off Television Centre in west London, which meant property costs were too high. Teh NAO said: “It is currently maintaining a larger estate than it needs during the transitional period.”
The report, titled “The BBC’s approach to managing the cost of its support functions”, criticised the broadcaster for having too much office space.
The cost of the BBC’s estate per full-time employee had been consistently higher than the normal in recent years.
The NAO found that it was 34 per cent higher than the industry benchmark in 2009/10 and 54 per cent higher in 2010/11.
The auditors questioned whether an existing target to cut overheads by 10 per cent “demonstrates a clear commitment to licence fee payers”.
The NAO added that it was not clear that the target was “pitched at the right level” nor if “the target will deliver value for money”.
Spending on its offices was the only one of eight back office functions – including marketing, communications, procurement and the director general’s office - which had increased in cost after inflation.
The auditors also found that there was “scope for savings” compared with similar back office costs in the wider public sector.
Amyas Morse, head of the National Audit Office, said the BBC’s approach to challenging “costs should be further strengthened in the future”.
The BBC had to be “consistent and rigorous in defining the service it requires from its support functions; identify what that service should cost; and adjust its costs accordingly”, he added.
Anthony Fry, BBC Trustee with lead responsibility for value for money, said: “We accept that there are improvements to be made to understand exactly what each support function should cost and to make future cost savings in a more co-ordinated and consistent fashion.
“We have set the BBC management a target to deliver 11 per cent of efficiency savings by 2016-17 and the NAO’s recommendations will help us achieve that target in the right way.”
A BBC spokesman said: “The NAO has recognised the significant reductions in costs we have made in our support services since 2006. Once the transitional period in the BBC estate is over and the short term building projects have been finished, the overall operations costs will have significantly reduced, enabling annual recurring savings of £47m p.a. from 2016/7.”