Recommendation 4

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.