Source · Select Committees · Public Accounts Committee
Recommendation 7
7
Acknowledged
The BBC's Across the UK business case remains underdeveloped and lacks clear objectives.
Conclusion
We repeatedly asked the BBC to clarify how its activities will deliver the objectives of Across the UK. In response, the BBC gave us multiple examples of the programmes it has moved outside London and the local partnerships it had set up, and emphasised its target of transferring £700 million outside London.11 It told us that it knew that moving expenditure outside London would lead to economic growth and improved perception.12 The BBC had announced its £700 million commitment before finalising its Across the UK plan, budget and business case. The NAO report found that the BBC’s business case was underdeveloped, including that the BBC had not clearly stated the link between its outputs and desired change. The BBC recognised that its business case for Across the UK could 5 C&AG’s Report, Figure 1 6 Qq 17–18, 25–26; C&AG’s report, paras 1, Figure 1, paras 2.8–2.9, figure 8 7 Qq 25–26, 30 8 Qq 25–26, 29–30 9 Letter from Tim Davie, Director General, BBC, to Dame Meg Hillier MP, Chair, Committee of Public Accounts, dated 1 March 2024 10 Qq 62–63 11 Qq 24–26, 29, 30, 45, 47, 62, 63 12 Qq 21, 45, 49 10 The BBC’s implementation of Across the UK have benefitted from a broader look at the benefits of the programme and committed to improving its approach to business cases, incorporating best practice from HM Treasury’s guidance.13 The impact of changes to the scope of the programme
Government Response Summary
The BBC will review delivery of the Across the UK programme to ensure the programme is still forecast to deliver its intended benefits. The BBC forecasts comfortably meeting the financial benefit of the ATUK programme and their goal is to drive to statistically significant reduction in the audience portrayal gap between UK regions by the end of the ATUK programme in 2027-28. External research from PwC concluded that BBC ATUK spend is forecast to lead to 4,750 new creative businesses and 45,000 additional jobs outside London.
Government Response
Acknowledged
HM Government
Acknowledged
1.2 As the Across the UK (ATUK) programme approaches its half-way point, the BBC will review delivery to date, including changes in aggregate to ensure the programme is still forecast to deliver its intended benefits. At this stage the BBC is confident the programme will exceed its financial and economic benefit targets. 1.4 As a result of the £700 million of financial benefit created by the programme, Licence Fee payers have seen significant changes to programming broadcast by the BBC, all designed to better reflect and represent audiences across the UK. 60% of network television spread is already spent outside London, and by the end of the current Charter 50% of radio and music spend will be invested outside the capital. 1.5 To support this creative shift, the BBC has also relocated editorial decision-making, more than doubling the number of network television commissioners based outside London from 15 to 41. The BBC is forecasting to comfortably meet the financial benefit of the ATUK programme and our goal is to drive to statistically significant reduction in the audience portrayal gap between UK regions by the end of the ATUK programme in 2027-28. 1.7 The shift in editorial spend will generate significant regional economic benefit. It was originally forecast that the programme would create £850m of cumulative benefit by 2027-28, including significant regional impact on creative clusters. External research from PwC concluded that BBC ATUK spend is forecast to lead to 4,750 new creative businesses and 45,000 additional jobs outside London. The BBC has commissioned a range of further economic impact analyses looking at the impact of ATUK spend in building regional creative clusters which will demonstrate the impact of the BBC’s activity to local communities and stakeholders.