Broadcast News
16/05/2013
BBC Salford Move A 'Success'
The BBC's move to Salford in Greater Manchester was "on time and maintained broadcast continuity", according to a report published by the National Audit Office for the BBC Trust.
The latest estimates show the final cost of the move phase should be below the £233m budget approved by the BBC Trust.
The NAO's findings include the following:
- The BBC successfully completed the complex challenge of relocating to Salford, by "using the right skills and processes, developing clear delivery plans and maintaining good communications".
- The Beeb exceeded its target to relocate 30% of staff from the 1,500 roles transferring from London to Salford (38% relocated).
- To encourage sufficient staff to move, some of the allowances the BBC offered to incentivise and compensate relocating staff and minimise redundancy costs were "more generous than it normally offers". The remote location allowance covered the cost of renting property in Salford and travelling to and from London for two years.
- The BBC estimates that the final cost of fitting out the buildings at Salford and moving people in will be £224m, £9m less than the revised budget approved by the BBC Trust in February 2011.
The lifetime budgeted cost of relocation and operating costs up to 2030 is £942m (or £573m after discounting future costs to their present values). This cost does not take into account reduced spend on the BBC's estate in London and Manchester as a result of the move.
Among the NAO's recommendations are that the BBC Trust should periodically review progress against the aims in the original business case for the move; that the BBC should establish robust systems and maintain clear records when paying allowances, so that it can demonstrate they are appropriate in all cases; and that it should continue to seek recovery of all allowance payments repayable by staff who leave the BBC.
The BBC Trust announced it had accepted these recommendations and would ensure they are implemented.
Anthony Fry, Chair of the Trust's Finance Committee, said: "The BBC has struck a sound balance in its handling of this move, part of a commitment agreed during the last Charter to better serve all audiences across the UK. Relocation allowances have helped to ensure continuity for audiences by encouraging a sufficient proportion of London staff to move, while over 250 new staff were recruited from the Greater Manchester area.
"Now a solid and thriving production base with major live programming broadcast 24 hours a day, Salford has a strong working culture that should deliver long-term improvements in both creativity and efficiency, as long as the BBC keeps focused on these objectives. Given that the move was well-managed and within budget, however, it is disappointing that some of the controls on relocation payments proved inadequate and we would not expect a repeat of this with any future moves."
Amyas Morse, head of the National Audit Office, said today: "The BBC relocated to Salford on time and without disruption to broadcast services, and the final cost of moving should be within budget. Skills were maintained and redundancy costs reduced by offering London-based staff more generous relocation packages than it usually offers to encourage them to move, though the BBC could have controlled these better.
"However, it is too early to judge whether the move will achieve value for money for licence fee payers. It is welcome that the BBC has developed an appropriate approach to measuring the future impacts of the move but it still needs to explain how it is going to make all of its planned efficiency savings."
www.bbc.co.uk/bbctrust
(IT/CD)
The latest estimates show the final cost of the move phase should be below the £233m budget approved by the BBC Trust.
The NAO's findings include the following:
- The BBC successfully completed the complex challenge of relocating to Salford, by "using the right skills and processes, developing clear delivery plans and maintaining good communications".
- The Beeb exceeded its target to relocate 30% of staff from the 1,500 roles transferring from London to Salford (38% relocated).
- To encourage sufficient staff to move, some of the allowances the BBC offered to incentivise and compensate relocating staff and minimise redundancy costs were "more generous than it normally offers". The remote location allowance covered the cost of renting property in Salford and travelling to and from London for two years.
- The BBC estimates that the final cost of fitting out the buildings at Salford and moving people in will be £224m, £9m less than the revised budget approved by the BBC Trust in February 2011.
The lifetime budgeted cost of relocation and operating costs up to 2030 is £942m (or £573m after discounting future costs to their present values). This cost does not take into account reduced spend on the BBC's estate in London and Manchester as a result of the move.
Among the NAO's recommendations are that the BBC Trust should periodically review progress against the aims in the original business case for the move; that the BBC should establish robust systems and maintain clear records when paying allowances, so that it can demonstrate they are appropriate in all cases; and that it should continue to seek recovery of all allowance payments repayable by staff who leave the BBC.
The BBC Trust announced it had accepted these recommendations and would ensure they are implemented.
Anthony Fry, Chair of the Trust's Finance Committee, said: "The BBC has struck a sound balance in its handling of this move, part of a commitment agreed during the last Charter to better serve all audiences across the UK. Relocation allowances have helped to ensure continuity for audiences by encouraging a sufficient proportion of London staff to move, while over 250 new staff were recruited from the Greater Manchester area.
"Now a solid and thriving production base with major live programming broadcast 24 hours a day, Salford has a strong working culture that should deliver long-term improvements in both creativity and efficiency, as long as the BBC keeps focused on these objectives. Given that the move was well-managed and within budget, however, it is disappointing that some of the controls on relocation payments proved inadequate and we would not expect a repeat of this with any future moves."
Amyas Morse, head of the National Audit Office, said today: "The BBC relocated to Salford on time and without disruption to broadcast services, and the final cost of moving should be within budget. Skills were maintained and redundancy costs reduced by offering London-based staff more generous relocation packages than it usually offers to encourage them to move, though the BBC could have controlled these better.
"However, it is too early to judge whether the move will achieve value for money for licence fee payers. It is welcome that the BBC has developed an appropriate approach to measuring the future impacts of the move but it still needs to explain how it is going to make all of its planned efficiency savings."
www.bbc.co.uk/bbctrust
(IT/CD)
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