Press Release - How the Department for Culture, Media and Sport
assessed the BBC’s efficiency as part of the licence fee
settlement
18 January 2007
Sir John Bourn, head of the National Audit Office, today
reported that the Department for Culture, Media and Sport has
adequate evidence to assess the BBC’s efficiency as part of the
Department’s consideration of the next licence fee settlement.
As part of the process of setting the level of the television
licence fee from April 2007, the Department has to make an
assumption about the level of efficiency savings the BBC can
deliver. The level of efficiency savings will influence the level
of the new licence fee.
In July 2006, the Secretary of State sought the views of the
National Audit Office on whether the Department had enough evidence
to assess the level of efficiency the BBC could make. The NAO
agreed to report on whether the Department had reasonable grounds
on which to base its assessment, recognising that determining how
efficient an organisation is and can be is not a precise science,
and, ultimately, is a matter of judgement.
Sir John Bourn, head of the NAO, said
today:
Licence fee payers are naturally anxious to know their
money is being used as efficiently as possible. I am satisfied that
the Department has enough information at its disposal to take a
view on the BBC’s efficiency when determining the level of the next
licence fee settlement.
Notes for Editors:
- Press notices and reports are available from the date of
publication on the NAO website, which is at www.nao.org.uk. Hard
copies can be obtained from The Stationery Office on 0845 702
3474.
- The Comptroller and Auditor General, Sir John Bourn, is the
head of the National Audit Office which employs some 850 staff. He
and the NAO are totally independent of Government. He certifies the
accounts of all Government departments and a wide range of other
public sector bodies; and he has statutory authority to report to
Parliament on the economy, efficiency and effectiveness with which
departments and other bodies have used their resources.
Press Notice 03/07
All enquiries to Donna Watson, NAO Press Office:
Tel: 020 7798 7038
Mobile: 07917 555 388