Recommendation 18

We raised a concern about the lack of sufficient detail to support the BBC’s digital investment plan, for example around how savings will be achieved, what happens if savings targets are not met, or whether additional borrowing would be required.30 The BBC said it was helpful to have had those points highlighted. It told us that it was working through the budgeting process and building detailed budget plans, and that the budget process it was currently in would refine the detail.31 The BBC also highlighted that it did not have the same ability as its commercial competitors to raise debt to fund its digital ambitions. On the other hand, it did have the security and stability of the licence fee, at least to the end of the charter period.32 23 C&AG’s Report, paras 10, 2.5 24 C&AG’s Report, para 2.6 25 Q 51 26 Qq 37, 51, 52 27 Qq 52, 53 28 Q 38 29 Qq 41, 42 30 Q 55; C&AG’s Report, paras 11, 20 31 Qq 43, 55 32 Q 55 12 BBC Digital 2 People and data Staff recruitment and retention