Source · Select Committees · Public Accounts Committee

Recommendation 23

23 Acknowledged

BBC acts as "first domino" in local creative economies, fostering collaboration with partners.

Conclusion
We asked the BBC if it was always a driver or sometimes the follower in a local creative economy. Giving the example of its move to Salford, the BBC described itself as an “effective first domino”, saying that the local supply chain grew by 70% when it invested in Salford. Nevertheless, it explained the importance of attracting other creative partners to the areas that it was working in. The BBC told us it needed to work with a range of partners and contributors including other broadcasters, regional Mayors, the wider production sector and freelancers, which the BBC referred to as being critical to the delivery of what it does. The BBC told us that an entire region often benefitted from having the momentum that a thriving creative sector brought. This momentum made the BBC itself much more effective as it built the critical mass needed in an area through other productions coming in, the creative energy and private investment.41
Government Response Summary
The government notes the forecasted regional economic benefits of the shift in editorial spend, including PwC's conclusion that BBC ATUK spend is forecast to lead to 4,750 new creative businesses and 45,000 additional jobs outside London and that BBC has commissioned a range of further economic impact analyses.
Government Response Acknowledged
HM Government Acknowledged
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.