Trust approves BBC's extra investment in online

by Ben Bold, Brand Republic 20-Mar-09, 12:45

LONDON - The BBC Trust has today given the go-ahead for a £30.7m increase in the BBC's online budget over three years, an increase of 27% its existing spend, although the hike is significantly less than the £52.7m increase the BBC requested in December.

The Trust also approved the BBC's £1.9bn five-year budget, which includes £400m in cutbacks over the next three years, made partly by reducing the fees paid to talent such as Jonathan Ross and Chris Moyles.

The Trust gave the green light to budgeting plans, which also includes freezing senior managment pay this year, following a meeting with BBC director general Mark Thompson yesterday afternoon.

Thompson said yesterday that management would do its utmost to protect jobs, although 1,200 roles have yet to be axed and more than 7,000 have been made redundant in the last four-and-a-half years.

Following the meeting, the Trust today said it welcomed BBC management's plan to reduce the money it pays to "top talent" and said the broadcaster had signed some new contracts for "substantially less than the BBC paid in the past".

The salaries of Moyles and Ross, the BBC's biggest earners, are expected to be cut by at least 10%.

Radio and TV presenter Ross is thought to be on a three year £18m package, while Radio 1 DJ Moyles is understood to be earning £630,000 per year.

The Trust said it is mindful that the BBC faces new pressures because of the recession, but added that it has a vital role to play in supporting other parts of the industry through partnerships and by commissioning independent productions.

Thompson yesterday cited plans to share facilities with ITV for regional news and talks with Channel 4 about a possible joint venture between Channel 4 and BBC Worldwide.

"It is more important than ever that the BBC does not push up costs for other broadcasters," the Trust said.

Earlier this week, Conservative Party leader David Cameron attacked the BBC licence fee and said that his party would instigate a three-year pay freeze if it got into power -- a move that would knock just £3 off householders' bills but cost the BBC £75m.

Comments

Jeremy Lee

Jeremy Lee - 20/03/2009

Why just freeze it? I've always thought that it should be reduced each year based on the number of new houses that have been built and the subsequent increase in its revenues.

 
 
 

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