Source · Select Committees · Public Accounts Committee
Recommendation 24
24
Accepted
BBC lacks contingency plans if local government partners withdraw "Across the UK" funding.
Recommendation
We asked the BBC about the potential impact on Across the UK of issues within local government finance, given that several local authorities were reportedly close to declaring themselves bankrupt, or had already in effect done so, and may have to withdraw some local services. In light of current financial pressures on various local councils, we asked the BBC what contingency plans it had in place if a significant partner had to pull out owing to lack of funding. The BBC could not explain to us any contingency plans it had in place. Instead, it told us that while it did not take the state of public finances lightly, unlike big infrastructure projects Across the UK only required small levels of funding from individual local partners. It gave us the example of its North East partnership, where 12 local authorities and 3 combined authorities were expected to contribute a combined total of £10 to £15 million, and the BBC would contribute £25 million. Furthermore, it asserted that even without investment from local partners it could still deliver Across the UK. The BBC told us that it mainly needed local authorities in order to help attract private investment and creative leaders, rather than to invest their own cash.42 Similarly, given 38 Qq 68, 97; C&AG’s Report para 1.8 39 Qq 25, 45, 49, 50, 51–54 40 Q 93 41 Qq 13, 21–23, 26, 81, 83, 91–92 42 Qq 87–90 The BBC’s implementation of Across the UK 17 that the West Midlands was one of the BBC’s key regions of activity, we asked the BBC about the impact of major changes to infrastructure projects, in particular the cancellation of the High Speed 2 (HS2) train line between Birmingham and Manchester. The BBC told us that in many respects its activities in Birmingham were unaffected by the withdrawal of the northern leg of HS2 and it would continue to deliver the benefits of Across the UK in the West Midlands.43
Government Response Summary
The Across the UK programme board is in regular dialogue with external partners to ensure the BBC is fully across any anticipated future issues related to delivery and the BBC continues to monitor the financial position of local partners.
Government Response
Accepted
HM Government
Accepted
6.1 The BBC agrees with the Committee’s recommendation. Recommendation implemented 6.2 The Across the UK programme board is in regular dialogue with our external partners to ensure the BBC is fully across any anticipated future issues related to delivery. The Central Programme team has regular meetings with all key external partners on at least a monthly basis, and the Programme Director sits on external partnership Boards to ensure that the BBC regularly monitors the situation with partners. 6.3 The BBC continues to monitor the financial position of local partners. It understands the financial pressures that local authorities in particular are under – this was also a factor in why the BBC Concert Orchestra did not make its planned move to Nottingham. 6.4 No programme plans, or BBC commitments, are reliant on local authority funding. Our external production partnership commitments do not rely on the continuation of any single partner investment. The majority of BBC investment in these areas is focused on commissioning spend which is influenced by the BBC’s commitment to serve regional audiences. 6.5 However, the BBC has been clear that partner funding can speed up the delivery of further benefits related to the BBC’s commitments – such as helping ensure sustainable growth of regional production economies around the BBC’s investment. In many cases, local authorities have helped to finance the development of studio and supplier facilities, as well as skills programmes that can help attract further third-party investment.