Recommendation 24

DCMS restricts the BBC’s total borrowing limit for commercial activities to £350 million, a level set in 2003.47 We asked the BBC if this limit holds it back from increasing commercial revenues and to what extent it is exploring this in current negotiations with DCMS. The BBC considers the current limit to be slightly out of date and in need of revision. It said greater access to investment capital would help it compete better and current profit levels would support a borrowing limit of £500 million. However, according to the BBC, potential for higher levels of borrowing and investment would require discussion with DCMS.48 44 Qq 48, 49 45 Qq 59 to 61 46 Q62 47 C&AG’s report, para 1.10 48 Qq 42, 43 BBC strategic financial management 15