BBC Trust

Getting the best out of the BBC for licence fee payers

New services

July 2011

The BBC can't launch a new service, or make significant changes to an existing service, without asking our permission. Before giving the go ahead we consider whether or not to launch a public value test (PVT). If we do decide to launch a PVT, the new service or the change to an existing service can't happen until the PVT is complete.

Public value test

A public value test is a way of weighing public value against market impact.

We use PVTs to help us work out the value to the public of, say, a proposed new BBC service and also to work out the impact it could have on the wider market. For example a new BBC radio network might produce value for the public but damage existing commercial radio networks.

Only if we see evidence that the new public value is likely to outweigh any damaging impact on the market will we allow the proposal to go to consultation. When the public consultation is over, we make our decision.

You can find the current guidelines on the conduct of PVTs, which were issued in August 2007, by clicking on the link below. They are currently in the process of being reviewed and updated. The revised guidelines will be published shortly. In the meantime, if you have any questions about any aspect of the process, please contact us.

Download the Trust's guidance on the public value test process

Public Value in Practice: Restoring the ethos of public service

Public Value has been much-debated in academic and policy-making circles. What's different about the BBC Trust is that our Charter asks us to apply it in a practical decision-making tool – to assess the quality of the BBC's proposals for new services and for changes to existing services. We have used our Public Value Test, for instance, in our decision to approve the BBC iPlayer and we have used it in our decision to reject BBC proposals for new online local video services.

This book combines some of the theory on this subject with some thoughts and reflections on the BBC Trust's own practical experience. It aims to add to our collective understanding of how we might improve processes of decision-making, and particularly the transparency of that decision-making, across the public sector.

About the authors

Diane Coyle is a BBC Trustee and chairs the Trust's Strategic Approvals Committee. She runs an economic consultancy and was for eight years a member of the Competition Commission.

Christopher Woolard was Deputy Director at the BBC Trust and is now a Partner and member of the Executive Committee at Ofcom.

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