BBC Trust approves £30.7m increase in corporation’s online budget

The BBC Trust has agreed a £30.7 million increase in the BBC’s online budget over the next three years, a 27% rise over its current £145 million a year.

The increase, almost 42% under the £52.7 million originally requested by the BBC, is subject to conditions set by trust chairman Sir Michael Lyons to ensure that the corporation does not abuse its power.

The trust has also confirmed the corporation’s overall budget for 2009/10. It said: “This budget is designed to deliver both planned efficiency savings, totalling £1.9 billion over five years to 2012/13, plus additional savings as part of a further efficiency exercise, triggered by the economic downturn.

“This will include a freeze in senior management pay this year with no more than modest pay increases for other staff. No bonuses will be paid to BBC public service staff.”

It welcomed the BBC’s commitment to reducing “significantly the total amount it spends on top talent in coming years”.

“Last year the trust examined the issue of talent pay in depth and concluded that, although the BBC has to compete in the market for talent, it is not leading the market and must ensure it does not in the future,” it said.

“The trust made a number of recommendations following its review of the BBC’s role in the talent market and will report back on BBC management progress in implementing these recommendations as part of its annual report this summer.”