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.