The BBC’s year 2011-2012

Getting the best out of the BBC for licence fee payers BBC mission The BBC Trust

The BBC’s mission is to inform, The BBC Trust is the governing body educate and entertain. Under the of the BBC – made up of twelve terms of the Royal Charter, the BBC, members chaired by Lord Patten of through its output, should promote Barnes. It is our job to get the best six public purposes: out of the BBC for licence fee payers. We do this by setting a clear strategy 1 Sustaining citizenship and vision for the Corporation and by and civil society holding BBC management, who are 2 Promoting education responsible for delivering its services, and learning to account. It is our responsibility to make sure licence fee payers get 3 Stimulating creativity good value for money by making sure and cultural excellence that the licence fee is spent efficiently 4 Representing the UK, its nations, and effectively. regions and communities 5 Bringing the UK to the world and the world to the UK 6 Helping to deliver the benefits of emerging communications technologies and services.

The public expects a wide range of high quality and trustworthy content from the BBC. Chairman’s foreword

When I became Chairman I said that managers by a fifth and the senior at its best the BBC is a broadcasting manager pay bill by a quarter. We organisation whose quality and will now go further, including capping integrity are unique. A year later the wages of the highest earners. I’m even more convinced of this. Simplifying the BBC’s This is fundamentally about content. governance system Flick through the television and radio We’ve also made some governance listings in pretty much any week changes: simplifying the complaints of the past year and you will see system; giving Ofcom a greater role numerous examples of exactly the when we consider proposals for new distinctive, high quality programmes services; and clarifying the roles of that the BBC should be making. the Trust and the Executive Board. And that’s not to mention online. A final point. Mark Thompson, And in a year of seemingly never- who is standing down, has been ending massive news stories, the an outstanding Director-General, BBC’s coverage consistently got the leading the BBC with integrity and balance right between immediacy a commitment to public service and analysis. values. He will be sorely missed and I wish him the best of luck. Producing great programmes with less money One of the main challenges over the Lord Patten of Barnes CH past year has been working out how Chairman the BBC can continue to produce great programmes with less money. Our plan to do this will limit the impact on content by focusing efforts on greater back-office efficiency. Senior pay has been one area where change has been necessary. During the past year the BBC exceeded its target to cut the number of senior The licence fee BBC services

The BBC is funded in a unique way, The BBC uses licence fee income with most of its income coming from to provide services including 10 the licence fee. It is our responsibility UK-wide TV channels, 10 UK-wide to make sure this money is spent radio stations, local radio stations well. The licence fee has remained at in England, national radio stations in £145.50 in 2011/12 and will continue Northern Ireland, Scotland and Wales at this level until 2016. Each licensed and a website, bbc.co.uk. The Trust UK household pays less than 40p assesses BBC management’s per day for all of the BBC’s services. performance in delivering these services and holds them to account. Breakdown of BBC spend (£) The monthly spend per licence fee was: TV Other BBC One BBC Parliament £2.04 BBC Two CBBC (17%) BBC Three CBeebies BBC Four BBC HD Online £0.60 BBC News BBC ALBA (5%) Television Radio Radio £7.45 BBC Radio 1 BBC Asian £2.04 (17%) (61%) BBC Radio 2 Network BBC Radio 3 BBC Local Radio BBC Radio 4 BBC Radio Cymru ‘Other’ includes digital switchover costs, BBC Radio 5 Live BBC Radio nan investment in new technology, running costs, BBC 1Xtra Gàidheal costs of collecting the licence fee etc. BBC Radio 4 BBC Radio Extra Scotland BBC Radio 5 Live BBC Radio Ulster/ Sports Extra Foyle BBC 6Music BBC Radio Wales Online and Interactive BBC Online BBC Red Button

Highlights of the year

Above: Luther

Above: BBC News reporting from Libya

Left: The Choir: Military Wives Here are some highlights of the Our War – marking the 10th content that audiences told us has anniversary of the war in Afghanistan; entertained, educated and informed The Scheme – following the lives them during the year. of families on a housing estate in Kilmarnock; BBC Two’s Money Drama & comedy – TV: Sherlock; Season; The Choir: Military Wives. Call the Midwife; The Crimson Petal and the White; Luther; Waterloo Children’s – Horrible Histories; Road; EastEnders. The best of Newsround – My Autism & Me; Blue international drama: Borgen; The Peter from its new home in Salford’s Killing. Radio drama: Life and Fate. MediaCity UK; Deadly 60. Comedy: Rev; Mrs Brown’s Boys; Live sport – Wimbledon; Twenty Twelve. Match of the Day Live; Six Nations; Journalism – Across all media: Formula One. coverage of the ‘Arab Spring’; Music – Spirit of Schubert – coverage of the world economy BBC Radio 3’s celebration of and the Eurozone crisis. Schubert; BBC Proms – highest Documentaries and factual – ever attendance; BBC Radio 1’s Frozen Planet; Stargazing Live; Big Weekend in Carlisle. How has the BBC performed this year?

The Trust measures the BBC against the four objectives set out below.

1. Increase distinctiveness and 2. Do more to serve quality of BBC output all audiences This year the BBC made progress The BBC’s services reach 96% of UK against this objective but the Trust adults each week, well in excess of will seek further evidence of its 90% target. distinctiveness in the coming year. % of people who use the BBC services Audience appreciation (AI) rose for each week most BBC output in 2011/12. 11/12 96 10/11 97 Average AI – Television (%) Source: BBC Cross Media Insight Survey (GfK) 11/12 83 10/11 82 The BBC’s services should be Average AI – Radio (%) available to every household in the 11/12 81 UK that wants to receive them. 10/11 80 Progress was made in a number of areas with more than 93% of the UK Source: BBC Pulse Survey (GfK) now being able to receive DAB radio. Average AI – Online (%) There were also improvements to 11/12 77 BBC Radio Wales’ FM coverage. 10/11 80 Source: BBC Online Quality Survey (eDigital Research) Audiences still feel the BBC could do more to represent their nation or The proportion of people who agreed region. Less than half of UK adults that BBC television programmes are believe that the BBC performs well in ‘fresh and new’ also rose slightly. representing their nation or region.1 % of people who agree BBC TV programmes are ‘fresh and new’ More than 40% of network TV is 11/12 70 now made out of London. By 2016 10/11 68 this figure should rise to 50%.

Source: BBC Pulse Survey (GfK) 3. Improve value for money made at the expense of the quality for licence fee payers and scope of BBC services. Four years ago we set the BBC The BBC exceeded its target to an efficiency challenge to deliver cut the number of senior managers cumulative savings of 3% per annum by a fifth and the senior manager over the five-year period to March pay bill by a quarter. 2013, totalling approximately £2 billion, without affecting the 4. Set new standards in quality of services. This year the BBC openness and transparency delivered £499 million in savings. The BBC now provides more information on its current and Cumulative gross efficiency savings £m planned activities and how it spends Projected the licence fee. Salaries of the most 2,000 559 2.1bn senior managers are published, as are expenses, gift registers, 1,500 499 1.5bn hospitality and declarations of

1,000 personal interest. We also publish 434 999 a summary workplan and budget 500 328 565 which sets out the BBC’s current and planned activities. 237 237 0 08/09 09/10 10/11 11/12 12/13 Total New savings Cumulative savings

These savings were delivered without any negative impact on overall audience numbers or appreciation scores. Meanwhile the proportion of UK adults who agreed that they received good value from the licence fee remained stable at 56%.1 This year we set a new target for the BBC to deliver efficiencies of a further 11% by 2016/17. The Trust will monitor these further efficiency savings to ensure that they are not 1 Source: Purpose remit study 2011/12 The Trust’s year in brief The BBC Trust exists to get the best out of the BBC for licence fee payers. This means setting a clear strategy and vision so that everyone – both within and outside the BBC – understands what it needs to deliver. Here, Trustees explain how we have worked in licence fee payers’ interests over the past year.

Delivering value for money This year the BBC’s efficiency The public quite rightly expects the programme delivered some licence fee to be spent efficiently £500million of savings with no and effectively. As Trustees, it is our negative impact either on overall responsibility to ensure this happens. audience numbers or on appreciation We challenge costs in a number of of programmes. We believe the BBC ways, including setting efficiency can make further savings and have targets for the BBC as a whole, and set a new target of 11% in efficiency limits for senior executive pay, and savings by 2016/17 as part of the carrying out a programme of in- BBC’s wider Delivering Quality First depth value-for-money reviews. strategy. Our focus next year will be to make sure these savings are made ‘We have set a new target without jeopardising the distinctive, for efficiency savings’ high-quality programmes that audiences love. Rotha Johnston, Chair of the Trust Finance Committee until December 2011

Left: The Ten O’Clock News Making distinctive programmes I believe firmly that the BBC can This year marked a milestone for do even more to address these the Trust: we have now completed long-standing issues and we will reviews of all the BBC’s domestic continue to focus on them as we services. These reviews have shown begin our second round of service us the great value that these reviews later in 2012. services, ranging from BBC One David Liddiment, Chair of Audiences to BBC 6Music to BBC Online, and Performance Committee bring to licence fee payers.

‘The BBC’s services bring Securing editorial standards great value but could still At a time of unparalleled scrutiny be even more distinctive’ of the press and media, the BBC must continue to strive to keep They have also allowed us to identify up the highest editorial standards. areas where the services can still This is fundamental to audiences’ do better – such as being more trust – not just in the content itself distinctive both within the BBC’s but in the BBC as an organisation. portfolio and within their markets, and meeting the needs of all ‘The highest editorial standards audiences, including those in the are fundamental to audiences’ north of England, Scotland and trust in the BBC’ Northern Ireland who have traditionally appreciated the BBC less.

Above: BBC Above: BBC Two Radio Derby drama The Hour

Left: BBC One drama Sherlock That’s why the Trust has focused Connecting more audiences strongly on impartiality this year. We through new technology carried out a review of the impartiality People now expect to access the BBC and accuracy of coverage of the programmes they love in many ways ’Arab Spring’ – a subject of interest – TV set-top boxes, PCs, mobile to audiences both at home and phones, tablets, games consoles, abroad. We also announced a series internet-connected TVs. So we of seminars to look at impartiality decided we had to review how the in the coverage of topical issues. BBC reaches audiences through all these new technologies, and this I am confident that our work in year we published our new policy. this area will help ensure the BBC gives appropriate air time ‘Bringing the BBC to as many to a range of opinions and voices; people as possible in as many an important obligation for us ways as possible’ as a trusted broadcaster. Alison Hastings, Chair of the Editorial Our starting point was that BBC Standards Committee content should be available free to as many people in as many ways as possible, but that this must be done cost-effectively; and that the BBC should seek to minimise any adverse effects that its actions may have on the commercial market.

Above: BBC Sport Above: BBC News Centre gallery on mobile

Left: BBC News filming in Homs, Syria Licence fee payers also rightly Reforming the BBC’s expect that any BBC content should complaints system be consistently high quality, and When it comes to handling should include features such as complaints, the BBC hasn’t always parental controls and accessibility. kept pace with communications technology like emails and social I believe our new syndication policy networks. Moreover, while most achieves all this, while leaving enough complainants have been satisfied flexibility for the BBC to adapt to by the BBC’s initial response, too future technological change. often those who appeal find the Diane Coyle, Chair of the Strategy system cumbersome and slow. and Approvals Committee So the Trust asked for a fundamental review to find a simpler, more responsive and cost-effective way of handling around a quarter of a million complaints a year.

‘A simpler, more responsive and cost-effective way of handling complaints’

We have agreed improvements to the complaints system to speed it up, simplify it, and focus resources where they are genuinely needed. Below: Xbox iPlayer If the BBC gets something wrong, home screen these changes should ensure that complaints get more quickly to the people best placed to deal with them. And, if the BBC sometimes gets things badly wrong, it should deliver a remedy that’s timely and unambiguous. Richard Ayre, Chair of the Complaints and Appeals Board Contact us

If you have comments or questions BBC Annual Report about the work of the Trust, please If you wish to find out more about write to us by post or by email, the BBC’s year – including full or call us. financial statements and each service’s performance against its BBC Trust statement of programme policy 180 Great Portland Street – then please visit: London W1W 5QZ bbc.co.uk/annualreport Telephone: BBC Trust Information line 03700 103 100†* Textphone: 03700 100 212* Email: [email protected] bbc.co.uk/bbctrust

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Cover images (clockwise from top left): Rev; Call the Midwife; Frozen Planet; The Shadow Line; Blue Peter; BBC Philharmonic presents... Nero ’ s Dubstep Symphony; Drive programme.

Photography: Photographs used are © BBC or used under the terms of the PACT agreement. Permission from the copyright holders must be sought before any photographs are reproduced.

Getting the best out of the BBC for licence fee payers