BBC Trust

Publishing the Trust’s Strategy Review initial conclusions alongside the BBC’s Annual Report, he said that the BBC needed to meet its twin obligations to the public – to provide distinctive high quality public service content and to use their money wisely.

And he stressed that the BBC needed to accelerate changes in its behaviour, leading to greater clarity about the boundaries it operates within.

Today’s announcement follows the publication by the BBC Executive last March of an initial set of proposals for the future of the BBC, which the Trust has since consulted on.

Specific points in the Trust’s interim conclusions for the BBC’s three platforms include:

Radio - The Trust concludes that, as things stand, the case has not been made for the closure of 6 Music. The Executive should draw up an overarching strategy for digital radio. If the Director General wanted to propose a different shape for the BBC’s music radio stations as part of a new strategy, the Trust would consider it. The Trust would consider a formal proposal for the closure of the Asian Network, although this must include a proposition for meeting the needs of the station’s audience in different ways.

Online - The Trust endorses the Executive’s proposed 25 per cent budget reduction, although it will want to understand and approve the editorial changes involved. In line with the Executive’s proposals, the BBC should sharpen online’s focus so that it is truly distinctive and has clearer editorial vision and control.

Television - At this stage there is no need for radical changes to the current portfolio, but the BBC needs to identify future tipping points where reassessment of the structure will become necessary, such as full digital switchover in 2012 and 50 per cent of viewing on a non-linear basis. The BBC has more to do to ensure programmes are truly high quality and distinctive.

The Trust has also announced that it supports the Director General’s proposals to close Blast! and that the decision on BBC Switch is for the Executive to make.

The conclusions have been published against the backdrop of an Annual Report that shows a confident BBC that is delivering for audiences on many fronts - 82 per cent of people say they would miss the BBC if it wasn’t there and the corporation is moving in the right direction on the key indicators against which the Trust measures performance. However the Trust identifies that there is more work to be done in a range of areas.

Sir Michael said:

"The Director General presented us with a thoughtful set of proposals earlier this year in support of a clear future vision for the BBC – a vision the Trust supports because it is rooted in the BBC’s enduring mission to inform, educate and entertain audiences with programmes and services of high quality, originality and value.

"In order to deliver that vision we have concluded that the BBC must accelerate changes to its behaviour, leading to a clearer definition of the boundaries within which it operates as it makes the transition to the digital future.

"The end result will be a BBC that focuses on its two main obligations to the public - to provide distinctive public service content and to use their money wisely."

In particular, Sir Michael stressed that on the question of the appropriate size and scope of the BBC, the message the Trust had taken from its consultation and analysis was that the BBC should accelerate changes to its behaviour in order to prove resources are being used effectively and that it has got its priorities right. To this end the Trust would focus on ensuring the BBC operated within clear boundaries, although the corporation must continue to serve all audiences.

The interim conclusions also include a package of measures to boost value for money and transparency, which were revealed by Sir Michael in a speech last week. These included plans to release more information about senior management and talent pay and to speed up the drive to cut the overall senior manager pay bill.

Today’s publication marks the conclusion of the first stage in the Trust’s strategy review work. The Trust will publish final conclusions in the autumn following further consideration of issues including what specific steps should be taken to promote both greater openness and further clarity about boundaries, alongside what further measures are needed to increase efficiency and to make sure licence fee payers are asked for no more money than the BBC needs.

The Trust’s section of the Annual Report notes that the BBC has had a good year, with some excellent examples of creative risk taking.

It also notes that following challenge from the Trust, the BBC has made progress in other areas, including cutting the senior manager pay bill, boosting transparency in salaries and expenses and operating within clearer commercial boundaries.

The BBC Trust has also today published interim conclusions from a service licence review of BBC One, BBC Two and BBC Four. The review concludes that on the whole the services are performing well. However it highlights a need for more creative risk taking and ambition on BBC One, more depth and ambition in factual, drama and comedy on BBC Two, a sharper remit for BBC Four and a move away from long-running factual daytime TV programmes that audiences tell the Trust lack quality and originality.

Note to editors

1. The BBC's accounting year is 1 April 2009 to 31 March 2010.

2. In line with Charter requirements, the Annual Report is in two parts, with the Trust's commentary on the BBC's performance and the detailed analysis and financial accounts prepared by the BBC Executive Board. The full document can be accessed here.

3. In addition to the Annual Report and Accounts the BBC Trust is today also publishing the following documents:

• Trust observations on BBC Executive employment diversity
• BBC Annual Report and Accounts licence fee payers' leaflet: 'Putting Quality First - the BBC's year 2009-2010'
• World Service Research Report
• Purpose remit reports
• Media literacy research
• Trust's oversight of staff training
• Equality Impact Assessment

4. The BBC World Service and BBC Worldwide have published their Annual Reviews today

5. The Trust challenged the Director General to undertake a review of the BBC’s overall strategy in July 2009 to address questions about the scope of the BBC's activities, focusing on how the BBC can most effectively deliver its public service mission and meet audience needs and deliver value for money.

6. The Director General was asked to focus on five distinct areas -

• How can the BBC maintain maintain best quality and distinctiveness?
• Where if necessary could the BBC's focus be narrowed and its scale reduced?
• What will a fully digital BBC look like?
• Can the BBC better define the "public space" it provides?
• How can the BBC create most value from its scale?

7. By the autumn, at the end of this process, The Trust will be in a position to set out a final strategy for the BBC for the rest of this Charter period up to 2016, incorporating:

• The commitments, changes and further work we will require from the BBC; and
• The measures we will use to determine whether those changes are being made.

8. Sir Michael Lyon's speech to the Voice of the Listener and Viewer from last week can be accessed here.