Wide ranging financial review central to Thompson’s strategy

On the first day of his tenure as BBC Director General, Mark Thompson has appointed Finance Director John Smith to lead a review of all the BBC's commercial businesses, involving external stakeholders and addressing the key questions of what activities the BBC should undertake, whether it should do it alone or with partners and how they can give more value back to the public.
Additionally, Carolyn Fairbairn, Director of Strategy & Distribution, will head a Commissioning and Production Review.
This will ask the key question about how the BBC ensures the licence fee has access to the best ideas and delivers real public value.
It will look at the balance of in-house and independent programme supply, relations with commissioners and the advantages of having an in-house creative powerhouse.
Mr Thompson said he would also launch a BBC-wide programme looking at increasing efficiencies, costs controls, value for money and self-help.
"The financial picture is tight. Every bit of licence fee has been allocated to the end of the current Charter - and this year the BBC is spending more than its income. That was planned but nonetheless it's something to keep an eye on.
"As we are now in debt we need to keep a very careful control on cash - we cannot risk exceeding our statutory borrowing limit."
He said self-help would be the starting point to meet financial burdens like increased pension contributions and fresh calls on investment like helping build a digital Britain.
He also said that Greg Dyke's strategy to find ways of moving significant parts of the BBC's operations out of London and into the rest of the UK was right.
Director of Sport Peter Salmon and Director of Nations & Regions Pat Loughrey will continue to look at the costs and creative implications before settling on a plan and will report back in the autumn.
(GB)