BBC pledges to cut costs, generate more from commercial activities

The BBC has published its first ever annual workplan, which outlines its strategy and budget for the year ahead.

The UK public broadcaster reached an agreement with the UK government last year over the amount it can levy in the annual licence fee and, in the introduction to the 2011-12 workplan, the said that “implementing the requirements of this settlement is the central strategic challenge for the BBC in 2011-12 and the focus for much Executive activity across the year”.


It added that a “challenging programme of organisational and cultural change across a relatively long time period” will be required to implement the objectives set in a BBC Trust report published last year that called upon the BBC to increase the distinctiveness of its output, improve value for money for license fee payers, serve a wider audience and be more open and transparent.


The workplan also addresses how the BBC will achieve cost cuts it has agreed to make and cover the extra investment needed to cover a deficit in its pension fund. It outlines a range of measures including reducing back office spending further, reducing the proportion of the licence fee spent on overheads to below 10% from 2013 and maximising revenues generated by its commercial division, BBC Worldwide.