BBC Annual Report Reveals Increased Programming Budget

The BBC placed further pressure on its commercial rivals last year by increasing its spend on programmes and services by a further £346 million, according to the Corporation’s Annual Report & Accounts for 2002/2003.

The report, published today, shows that almost 93% of the population used BBC services across radio, television and online during the course of 2002. However, BBC chairman, Gavyn Davies, was keen to point out that mass audiences are not the main priority of the Corporation.

He commented: “Nothing would be more pointless than to maximise audience share with derivative programming. The BBC must always provide a package which is richer and more ambitious than the commercial sector alone.”

Davies pointed to a clear improvement in the range and ambitions of BBC programming, especially on BBC1. He also emphasised the BBC’s “excellent” coverage of the Queen’s golden jubilee celebrations and the recent Iraq conflict.

He added: “As ever, the BBC had an overriding responsibility to licence fee payers to reflect and analyse the debate that was happening in the country and report the war itself with a total commitment to impartiality and the truth.”

The report also pointed to the success of Freeview as a sign of the BBC’s commitment to the future of digital terrestrial broadcasting and revealed that over 1.4 million homes can now receive the digital terrestrial service.

The BBC was successful in a number of cost saving initiatives last year and the report shows that overheads fell to 13% of expenditure, down from 24% three years ago. The cash balance deficit of £74 million, which is the cost of the Corporation’s new digital services, is expected to be paid off over the current charter period.

Earlier this month Greg Dyke, director general of the BBC, warned that the relaxation of the media ownership regulations could lead to the market being flooded with radio stations that are simply in the business of “selling products” for advertisers (see Dyke Warns Against Regulatory Free For All).

BBC: 020 8743 8000www.bbc.co.uk

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