Recommendations & Conclusions
32 items
2
Conclusion
56th Report - BBC Accounts and Trust St…
Deferred
The BBC has not adopted opportunities to digitise the licence fee, resulting in missed opportunities for cost efficiency and more customer engagement. The cost of collecting the licence fee is rising, partly because of the BBC’s reliance on postal correspondence and its increasing cost. Around 40% of households still receive …
Government response. The BBC partially agreed, explaining its existing processes for Capita contract management and rejecting the use of incentives for income or evasion reduction as inappropriate. It did not commit to setting a timeframe for digital licences or outlining plans to …
HM Treasury
3
Conclusion
56th Report - BBC Accounts and Trust St…
Accepted
The BBC does not provide clear information about its commercial investments, or targets and actual returns from its commercial activities. The BBC has sought to offset real-terms reductions in licence fee income by increasing savings and boosting returns from its commercial arm. It has reported transparently on progress against its …
Government response. The BBC partially agreed, committing to publish BBC Commercial’s overall returns, including dividends, annually in its Annual Report and Accounts. It also noted existing reporting to Ofcom but did not explicitly commit to reporting on the optimisation of debt limits …
HM Treasury
4
Conclusion
56th Report - BBC Accounts and Trust St…
Accepted
Progress in developing new IP remains behind target, which in turn will limit sustainable long-term revenue streams. The BBC told us that it has achieved 31% of income for 2024–25 from its most profitable streams through new intellectual property (IP), against a 40% ambition for generating revenue from new (IP). …
Government response. The BBC agreed that generating new IP is important, describing its ongoing activities in content creation, brand nurturing, and investment in third-party IP. It stated it already reports on Owned IP success but will not split out a specific IP …
HM Treasury
5
Recommendation
56th Report - BBC Accounts and Trust St…
Accepted
The BBC’s mission to ‘serve all audiences’ is at risk as younger audiences choose other media providers, while the BBC’s digital- first strategy could risk alienating non digital audiences. As younger viewers turn to other platforms and older or less digitally connected audiences’ risk being left behind, the BBC’s ability …
Government response. The BBC agreed and stated the recommendation is implemented, detailing its existing digital-first strategy, initiatives for engaging younger and unconnected audiences, and current reach statistics across various platforms.
HM Treasury
6
Conclusion
56th Report - BBC Accounts and Trust St…
Accepted
The BBC is a trusted institution but its relevance across the UK is under pressure. While the economic benefits of the “Across the UK” programme moving production outside of London are now clearly quantified, in response to this Committee’s past recommendations, there remain gaps in how well different audiences feel …
Government response. The BBC agreed, explaining that its 'Across the UK' programme has already moved significant network programming and commissioning outside London to improve audience portrayal and diversity of voice, and it intends to build on these existing plans.
HM Treasury
1
Conclusion
56th Report - BBC Accounts and Trust St…
Rejected
On the basis of reports by the Comptroller and Auditor General (C&AG), we took evidence on the British Broadcasting Corporation (BBC) Group Annual Report and Accounts 2024–25 and the Television Licence Fee Trust Statement 2024–25. We heard from Tim Davie (Director General, BBC), Leigh Tavaziva (Chief Operating Officer, BBC) and …
Government response. The BBC explicitly disagreed with the committee's recommendation (even though the provided text is an introduction), explaining its statutory duty and current methods for licence fee collection. It committed to provide an update on the practicalities of making an e-licence …
HM Treasury
7
Conclusion
56th Report - BBC Accounts and Trust St…
Deferred
Potential lost income for the BBC in 2024–25 is estimated to exceed £1.1 billion. Licence fee evasion increased to 12.52%, up from 12.04% in 2023–24, representing up to £550 million in lost revenue. The BBC did not set a target for evasion during this period. In addition, 3.6 million households …
Government response. The government responded by discussing measures related to 'Britain’s illegal meat crisis,' biosecurity at the border, and animal vaccine development, entirely unrelated to the BBC or licence fee evasion.
HM Treasury
8
Conclusion
56th Report - BBC Accounts and Trust St…
Deferred
The BBC increased enforcement of the licence fee system by carrying out nearly 2 million visits to unlicensed households in 2024–25, about 50% more than in 2023–24, driven by a rise in visiting officers (from 172 to 229) and visits per officer (from 7,660 to 8,670). However, this increase did …
Government response. The government responded by outlining strategies and actions related to animal vaccine availability and development, entirely unrelated to BBC licence fee enforcement.
HM Treasury
9
Conclusion
56th Report - BBC Accounts and Trust St…
Deferred
We queried why digital audience engagement through the accounts necessary to use iPlayer cannot support more digital licence fee enforcement activities. The BBC told us that its household-address based licensing system does not match individual based BBC account data, so it cannot directly tie digital use to a licence holder.13 …
Government response. The government responded by outlining work related to a Sanitary and Phytosanitary (SPS) agreement with the EU and strengthening resilience to animal disease, entirely unrelated to BBC iPlayer or licence fee enforcement.
HM Treasury
10
Conclusion
56th Report - BBC Accounts and Trust St…
Accepted
The BBC did not set an evasion target for 2024–25, and we asked whether there were any internal targets that had not been publicly disclosed.16 The BBC told us that it had clear internal revenue targets and a target for licences in force, which the executive team and the BBC …
Government response. TVL focuses on Licences in Force and implicit in that is minimising evasion. The BBC carries out trend modelling to forecast changes in licensable consumption and trends in evasion. The BBC’s activities on collection and enforcement focus on availability of …
HM Treasury
11
Conclusion
56th Report - BBC Accounts and Trust St…
Acknowledged
In 2024–25, the BBC spent £166 million on collection of the licence fee, (equivalent to 4.3% of licence fee income), up from £143 million (4.0%) in 2023–24. It issued 60.2% of licences electronically, and around 40% paper licences.19 The BBC told us that postal costs were a significant component of …
Government response. The BBC will consider the regulatory aspects and practicalities of making an e-licence the default position and will give an update on this in the Licence Fee Trust Statement for 2025/26.
HM Treasury
12
Conclusion
56th Report - BBC Accounts and Trust St…
Deferred
We asked the BBC why a large minority of households still received a paper licence and what the BBC was doing to accelerate the shift online. The BBC explained that physical licences were issued by default unless customers opted into an e-licence, that the BBC tried to promote, and that …
Government response. The BBC will consider the regulatory aspects and practicalities of making an e-licence the default position and will give an update on this in the Licence Fee Trust Statement for 2025/26.
HM Treasury
13
Conclusion
56th Report - BBC Accounts and Trust St…
Accepted in Part
Capita, the BBC’s main contractor for TV licensing, has experienced significant delays in upgrading its IT systems, designed to improve the website and customer journey to support digital engagement.24 The BBC told us that delivery had been challenging and delayed by just under two years, with 10 of 13 milestones …
Government response. The Committee reported on delays in Capita upgrading its IT systems for TV licensing. Lessons learned from the Capita contract are shared across TVL and the wider BBC through a joined up strategic approach to procurement and contract management.
HM Treasury
14
Conclusion
56th Report - BBC Accounts and Trust St…
Accepted in Part
To address these challenges, the BBC escalated issues directly with Capita’s CEO and co-located supply-chain technologists to improve coordination. The BBC told us it switched to payment by milestone part- way through the programme, after delays had already occurred, and acknowledged that it should have adopted this approach from the …
Government response. Lessons learned from the Capita contract are shared across TVL and the wider BBC through a joined up strategic approach to procurement and contract management, but the BBC does not believe that incentives on income or evasion reduction would be …
HM Treasury
15
Conclusion
56th Report - BBC Accounts and Trust St…
The BBC faced sustained financial pressures due to real-terms reductions in licence fee income, which rose only modestly to £3.8 billion in 2024–25, compared to £3.7 billion in 2023–24. The rise was due to an increase in the cost of a licence following two years of frozen pricing, despite rising …
HM Treasury
16
Recommendation
56th Report - BBC Accounts and Trust St…
Accepted in Part
Alongside PSB savings, the BBC sought to increase returns from its commercial arm. BBC Commercial achieved record sales of £2.2 billion in 2024–25, up from £1.9 billion the previous year, and the NAO concluded that BBC Studios had succeeded in delivering increasing returns by adapting to a changing market.29 The …
Government response. The BBC will ensure that BBC Commercial’s overall returns including dividends to the BBC Group are published annually in its Annual Report and Accounts, aligned with the 2026 publication date; they already report to Ofcom.
HM Treasury
17
Conclusion
56th Report - BBC Accounts and Trust St…
Accepted in Part
The BBC explained that its commercial strategy involved balancing reinvestment for growth with delivering returns to support PSB.34 It told us that it is using its increased borrowing capacity, within an overall debt limit of £3 billion, to fund acquisitions and expansion.35 At 31 March 2025, BBC Group net debt …
Government response. The Committee reported on the BBC's commercial strategy, including reinvestment for growth and using borrowing capacity to fund acquisitions. The BBC will ensure that BBC Commercial’s overall returns including dividends to the BBC Group are published annually in its Annual …
HM Treasury
18
Recommendation
56th Report - BBC Accounts and Trust St…
Accepted in Part
The acquisition of BritBox International in March 2024 illustrated the BBC’s strategy of investing to monetise content and secure longer-term returns.39 The BBC told us that this acquisition, alongside other initiatives, was intended to strengthen its ability to distribute content to audiences around the world and increase income in the …
Government response. The BBC will publish BBC Commercial’s overall returns including dividends to the BBC Group annually in its Annual Report and Accounts, aligned with the 2026 publication date; they already report to Ofcom.
HM Treasury
19
Conclusion
56th Report - BBC Accounts and Trust St…
Accepted in Part
The BBC’s commercial activities provide a way to offset declining licence fee income, with BBC Commercial through BBC Studios, reporting turnover growth that it attributes to its ability to generate and monetise intellectual property.43 The BBC told us that commercial revenue had doubled since the start of the Charter period …
Government response. The BBC will ensure that BBC Commercial’s overall returns including dividends to the BBC Group are published annually in its Annual Report and Accounts, while reporting what is required under accounting regulations.
HM Treasury
20
Conclusion
56th Report - BBC Accounts and Trust St…
Accepted in Part
On the specific balance between existing franchises and newly created IP, the BBC told us that in 2024–25, three of the top ten most profitable titles were IP generated from BBC Studios. The BBC explained that it tracked the proportion of programming delivered that it owned, and that this metric …
Government response. The Committee reported on the balance between existing franchises and newly created IP, including the BBC's plan to increase BBC-owned productions and IP. The BBC will ensure that BBC Commercial’s overall returns including dividends to the BBC Group are published …
HM Treasury
21
Conclusion
56th Report - BBC Accounts and Trust St…
Accepted in Part
The BBC pointed to specific examples to illustrate the commercial value that successful IP could generate, highlighting its global rights to ‘Bluey’ as having created “enormous value,” alongside other diversified commercial assets such as BritBox International.46 The BBC also stressed that the strength of its brand underpinned the monetisation of …
Government response. The Committee highlighted the commercial value that successful IP could generate for the BBC, including global rights to ‘Bluey’. The BBC will ensure that BBC Commercial’s overall returns including dividends to the BBC Group are published annually in its Annual …
HM Treasury
22
Conclusion
56th Report - BBC Accounts and Trust St…
Accepted in Part
At the same time, the BBC was clear that creating new IP was inherently uncertain and high-stakes: it told us that success was unpredictable, describing commissioning as a “spread-betting game” in which some developments would fail even when strategic bets were well-judged. It also said it therefore needed to “get …
Government response. The BBC will ensure that BBC Commercial’s overall returns including dividends to the BBC Group are published annually in its Annual Report and Accounts, while reporting what is required under accounting regulations.
HM Treasury
23
Conclusion
56th Report - BBC Accounts and Trust St…
Accepted
We asked the BBC, given it was not meeting its ambitions for new IP, what steps it would take to increase this. The BBC told us it had appointed a new CEO for BBC Studios production, was bringing in new talent, investing earlier with creatives to secure and grow UK …
Government response. BBC Studios makes and distributes content, nurturing well-known brands and formats. BBC Studios is committed to developing long-term Intellectual Property (IP), which remains central to its strategy for growing the Global Content Studio. Alongside BBC Studios-created IP, it also invests …
HM Treasury
24
Conclusion
56th Report - BBC Accounts and Trust St…
Accepted
The BBC faces a significant challenge in maintaining relevance among younger audiences. In 2024–25, only 67% of those aged 16–34 used BBC services weekly, compared with 96% of those aged 55 and over, and below the BBC’s own target of 70%.52 Furthermore, only 51% of 16–34-year-olds felt the BBC reflected …
Government response. The BBC is committed to delivering outstanding value to all audiences as a universal public service, and to serving younger digital-first audiences and making services available to unconnected audiences; they cite usage stats and initiatives.
HM Treasury
25
Conclusion
56th Report - BBC Accounts and Trust St…
Acknowledged
The BBC told us that it operated in an environment of “phenomenal competition” from global streaming platforms and social media, which had transformed audience behaviour.55 The BBC noted that younger audiences were increasingly fragmented in their media habits, with almost infinite choice, making it harder for the BBC to sustain …
Government response. The BBC is committed to delivering outstanding value to all audiences as a universal public service, and to serving younger digital-first audiences and making services available to unconnected audiences.
HM Treasury
26
Recommendation
56th Report - BBC Accounts and Trust St…
Acknowledged
The inability to maintain “universal, easy-to-access distribution” is one of the BBC’s principal risks.59 When we asked about how the BBC is preparing for the transition to online, the BBC told us that any move towards it must ensure “no one is left behind,” emphasising that the BBC had no …
Government response. The BBC is committed to delivering outstanding value to all audiences as a universal public service, and to serving younger digital-first audiences and making services available to unconnected audiences. The BBC’s digital-first strategy aims to serve all audiences, while keeping …
HM Treasury
27
Recommendation
56th Report - BBC Accounts and Trust St…
Acknowledged
The BBC cautioned that without universal provision of affordable broadband, a switchover would be “a self-inflicted wound” and reiterated the BBC’s commitment to maintaining significant broadcast services during the transition.62 It noted that, during the analogue switch off, it introduced solutions such as Freesat to address gaps in terrestrial coverage, …
Government response. The BBC is committed to delivering outstanding value to all audiences as a universal public service, and to serving younger digital-first audiences and making services available to unconnected audiences. The BBC’s digital-first strategy aims to serve all audiences, while keeping …
HM Treasury
28
Conclusion
56th Report - BBC Accounts and Trust St…
Acknowledged
We heard that the BBC is widely trusted, with the Chair highlighting the World Service as a clear illustration of the BBC’s global reach and reputation.65 At the same time, the BBC is also focused on strengthening its connection with audiences at home; it described its Across the UK programme …
Government response. The BBC agrees to communicate how its Across the UK programmes and other initiatives will lead to better representation of the UK’s local communities as part of its Annual Report and Accounts.
HM Treasury
29
Recommendation
56th Report - BBC Accounts and Trust St…
Accepted
On Across the UK, we drew attention to a prior Public Accounts Committee finding in 2024 that the BBC had “begun implementing its programme without a clear plan and could not readily explain the expected impact and benefits for licence fee payers,” and invited the BBC to set out its …
Government response. BBC will share information on an annual basis as part of the BBC Annual Report and Accounts which identifies the level of investment in its content from the Nations and Regions of the UK as well as audience data; target …
HM Treasury
30
Conclusion
56th Report - BBC Accounts and Trust St…
Acknowledged
We asked the BBC how the Across the UK programme and other initiatives would lead to better representation and connection for communities, beyond relocating staff and spend. The BBC told us it would measure change through audience perception within regions and regional economic impacts, citing as examples partnership agreements and …
Government response. The BBC agrees to communicate how its Across the UK programmes and other initiatives will lead to better representation of the UK’s local communities as part of its Annual Report and Accounts.
HM Treasury
31
Conclusion
56th Report - BBC Accounts and Trust St…
Acknowledged
The BBC highlighted its ongoing audience research and engagement, aiming to avoid institutions feeling “distant” from the people.75 The BBC also told us about persistent differences in engagement and the extent to which people across geographies and socio-economic backgrounds feel represented in 68 Q 73 69 Q 72; Committee of …
Government response. The BBC agrees to communicate how its Across the UK programmes and other initiatives will lead to better representation of the UK’s local communities as part of its Annual Report and Accounts.
HM Treasury
32
Conclusion
56th Report - BBC Accounts and Trust St…
Acknowledged
We asked whether choices labelled “local” are genuinely relevant to smaller communities, particularly in radio and local news. We underlined that local radio remains a “lifeline” for older audiences, and emphasised that, for example, “in Sheffield, local means Sheffield” rather than pooled content from larger hubs.77 The BBC agreed it …
Government response. BBC will share information on an annual basis as part of the BBC Annual Report and Accounts which identifies the level of investment in its content from the Nations and Regions of the UK as well as audience data; target …
HM Treasury