Recommendations & Conclusions
6 items
4
Recommendation
72nd Report - BBC World Service
Rejected
The BBC’s ability to carry out long-term planning of the World Service is hampered by repeated short-term funding agreements from the Foreign, Commonwealth and Development Office (FCDO). Since 2021–22, the FCDO has provided around 30% of funding for the BBC World Service. It is therefore critical that FCDO funding is …
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The BBC’s ability to carry out long-term planning of the World Service is hampered by repeated short-term funding agreements from the Foreign, Commonwealth and Development Office (FCDO). Since 2021–22, the FCDO has provided around 30% of funding for the BBC World Service. It is therefore critical that FCDO funding is agreed over a sufficiently long time period, such as three years, and in a timely manner to allow the BBC to carry out effective long-term financial and strategic planning. However, FCDO funding has often been agreed in one-year funding agreements finalised late in the preceding financial year. For example, in January 2026 when we took evidence, the BBC still did not know the level of FCDO funding for the World Service for 2026–27. This means that the BBC is at risk of making decisions which support short-term budgeting pressures rather than being able to effectively plan expenditure to support longer- term value for money. The committee believes that the BBC should be facilitated to obtain more prompt funding settlements through the Treasury spending review process. recommendation The Treasury should give the BBC World Service a separate line in the Spending Review to enable multi-year and timely funding settlements.
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Government response AI summary
The government disagrees and states that it would be premature to commit to a specific long-term funding model ahead of the Charter Review, but the FCDO has confirmed grant-in-aid funding of £148 million per year for 2026–27 to 2028–29.
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HM Treasury
10
Conclusion
72nd Report - BBC World Service
Rejected
Funded by the licence fee and FCDO grant-in-aid, total BBC World Service funding has fallen 21% in real terms over the period 2021–22 to 2025–26. In response to falling real-terms funding, the Service has been implementing its savings programmes since 2022–23.19 This has contributed to a decrease in audience numbers …
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Funded by the licence fee and FCDO grant-in-aid, total BBC World Service funding has fallen 21% in real terms over the period 2021–22 to 2025–26. In response to falling real-terms funding, the Service has been implementing its savings programmes since 2022–23.19 This has contributed to a decrease in audience numbers of 52 million (15%) over the period 2021–22 to 2024–25.20 The World Service’s audience is concentrated in markets where media freedoms are low and digital infrastructure is weaker, which shapes how its service is delivered: for example, in Afghanistan around 80% of Dari language reach is via radio.21 In addition, the BBC told us the Service now operates amid an intensifying geopolitical contest for information, with state-backed rivals “flooding the zone” and expanding investment.22
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Government response AI summary
The government disagrees with the implicit recommendation to address the funding decline, stating it is premature to commit to a specific long-term funding model for the BBC World Service ahead of the upcoming BBC Charter Review, while confirming interim funding.
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HM Treasury
17
Conclusion
72nd Report - BBC World Service
Rejected
The Foreign, Commonwealth and Development Office (FCDO) have provided around a quarter of the BBC World Service’s funding since it restarted funding in 2016–17. In return for this funding, the BBC must ensure that the World Service meets certain requirements including being unable to close entire language services without agreement …
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The Foreign, Commonwealth and Development Office (FCDO) have provided around a quarter of the BBC World Service’s funding since it restarted funding in 2016–17. In return for this funding, the BBC must ensure that the World Service meets certain requirements including being unable to close entire language services without agreement from the Foreign Secretary and the agreement of annual objectives, priorities and targets against which the BBC must report each year.35
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Government response AI summary
The government disagrees with maintaining the existing funding model for BBC World Service as described, stating it would be premature to commit to a specific long-term funding model before the BBC Charter Review, where it will explore bespoke long-term funding arrangements, though interim funding is …
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HM Treasury
18
Conclusion
72nd Report - BBC World Service
Rejected
Since 2016–17 the FCDO has set out its funding for the World Service for between one and four years at a time, as well as providing additional funding for specific purposes, such as additional coverage of the Russia- Ukraine conflict. In January 2025, three Parliamentary select committees wrote to the …
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Since 2016–17 the FCDO has set out its funding for the World Service for between one and four years at a time, as well as providing additional funding for specific purposes, such as additional coverage of the Russia- Ukraine conflict. In January 2025, three Parliamentary select committees wrote to the FCDO and the Department for Culture, Media & Sport (DCMS), following a joint inquiry into the Service which recommended future funding rounds of at least three years to enable the Service to plan into the future.36
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Government response AI summary
The government disagrees with committing to a specific long-term funding model now, stating it would be premature ahead of the BBC Charter Review ending December 2027. They will explore multi-year budget options as part of the Charter Review and have confirmed interim funding of £148 …
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HM Treasury
19
Conclusion
72nd Report - BBC World Service
Rejected
The BBC told us that its ability to effectively carry out long-term budgeting and strategy planning is hampered by the FCDO’s funding approach. For example, the BBC noted that, at the time of our evidence session on 8 January, it did not yet have its funding settlement from the FCDO …
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The BBC told us that its ability to effectively carry out long-term budgeting and strategy planning is hampered by the FCDO’s funding approach. For example, the BBC noted that, at the time of our evidence session on 8 January, it did not yet have its funding settlement from the FCDO for the new financial year starting in April.37 The BBC explained that although it was able to manage the risk associated with uncertain funding 35 C&AG’s Report, paras 1.10-1.11, 2.4, Figure 4 36 C&AG’s Report, para 1.13, Figure 6 37 Q 5 13 levels through planning for different scenarios, shorter lead times lead to a lower quality of decision making.38 However, the BBC was optimistic that its next settlement from the FCDO would be for a longer-term settlement.39
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Government response AI summary
The government disagrees with committing to a specific long-term funding model now, stating it would be premature ahead of the BBC Charter Review ending December 2027. They will explore multi-year budget options as part of the Charter Review and have confirmed interim funding of £148 …
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HM Treasury
20
Conclusion
72nd Report - BBC World Service
Rejected
We asked the BBC what it would do if it were to receive the funding settlement it requested from the FCDO. The BBC told us that it was grateful that the FCDO had increased funding by £30 million in 2025–26 and it had asked for a similar increase for 2026–27. …
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We asked the BBC what it would do if it were to receive the funding settlement it requested from the FCDO. The BBC told us that it was grateful that the FCDO had increased funding by £30 million in 2025–26 and it had asked for a similar increase for 2026–27. The BBC explained that this level of increase would not allow for transformational change due to financial pressures such as inflation and continued investment in digital services.40 However, the BBC did set out an ambition to use any additional funding in several ways including extending the use of AI as a translation tool to grow its “slim-line” service in Polish to other markets such as Hungarian and Romanian and investing further in countering disinformation.41 Enabling good decision making
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Government response AI summary
The government states it disagrees with the committee's perceived recommendation regarding funding for the BBC World Service. It explains it is premature to commit to a specific long-term funding model ahead of the Charter Review but confirms interim grant-in-aid funding of £148 million per year …
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HM Treasury