BBC reduces star pay by £9.5m

New Broadcasting House The BBC's Broadcasting House in London has been extended

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The BBC has reduced its star pay by £9.5m, spending just over £203m in the past financial year on salaries for its presenters and "talent".

The BBC's annual report revealed 16 individuals were paid more than £500,000 in the financial year 2011-12, three fewer than the year before.

Meanwhile, director general Mark Thompson earned £622,000 in the past financial year - down from £779,000.

He earned 15 times more than the median pay of a BBC employee.

Thompson is stepping down from his role in September and will be succeeded by the BBC's current director of Vision, George Entwistle.

He will be paid significantly less - £450,000 in his first year.

In total, the combined salaries of the BBC's executive directors fell from £5,714,000 in 2010-11 to £2,560,000, largely due to the number of board members being reduced from 13 to seven.

Two of the seven who stepped down are still on the BBC payroll - Lucy Adams, who is the corporation's head of business operations, and Peter Salmon, the director of BBC North.

Lord Patten, chairman of the BBC Trust, said: "We have continued to push hard on value for money, encouraging the BBC to drive down senior management pay and draw up a plan for living in more financially constrained times."

The annual report also looked at the BBC's productions. Spending on the BBC's TV channels decreased by £37.1m in 2011-12, down to £2.3bn.

But radio spending increased by £2m to £640.1m.

Change in TV hours by genre graph

Drama output across BBC television fell by 156 hours, although there was a significant increase in drama on BBC radio - up 419 hours.

But new British drama programming increased by 144 hours.

Lord Patten said: "One of our main priorities is ensuring the BBC produces genuinely distinctive programmes, and progress has been made here, although there is more to do."

Entertainment programmes increased by 327 hours, while the same genre also went up on radio by 568 hours.

After years being pilloried for the high sums it pays its on-air talent (symbolised by the £6m a year once earned by Jonathan Ross), the BBC can now clearly show that it has responded - albeit belatedly, its critics would say.

The BBC says it spent 25% less last year on paying its biggest stars. The number who earned over half a million pounds a year fell from 19 to 16, and the total they received fell from £21m to £16m.

The BBC doesn't name them, nor does it reveal how many earned more than £1m but it's widely reported that the highest earners include Graham Norton and Gary Lineker. Norton himself told the Daily Mirror last year that he was taking a pay cut and "there should be no special cases".

With the BBC facing a 20%spending cut, the number in the highest salary bracket is unlikely to go up. The same goes for BBC executives - the new director general is to receive £450,000, well down on his predecessor's £622,000 last year.

Factual content on TV increased by 307 hours, while music and arts fell by 90 hours.

Televised sports decreased by 389 hours and there were 602 hours less of sports coverage on BBC radio.

Staff numbers were reduced by 342. There were 470 senior managers in the BBC last year, a reduction of 70.

The BBC also announced that it has exchanged contracts for the sale of Television Centre in west London to property developers Stanhope Plc for a total price of £200m.

The BBC put Television Centre on sale in June 2011 and has operated on the site since 1960.

The iconic building opened on 29 June 1960, as the BBC's first purpose-built centre for television production.

Staff based there are now either based in Salford or are in the process of moving to the newly extended Broadcasting House in central London.

The BBC's financial officer, Zarin Patel, said the BBC had a strong financial foundation.

'Explain better'

The corporation has an underlying surplus of £249m, thanks to changes to the staff's pension scheme, which saved £45m, and the one-off sale of BBC Worldwide's magazines business for £95m.

Television Centre Television Centre has been sold to a property developer

The BBC saved a total of £499m since 2008-09, exceeding the 3% target set by the BBC Trust.

The corporation has a target of 11% in efficiency savings by 2016 as part of its Delivering Quality First strategy.

A survey for the BBC Trust showed that 56% of UK adults agreed that their household received good value from the licence fee.

The annual report stated that this figure had remained stable for the last four years "but suggests that there is a need to better explain how the money is being spent".

The BBC continued to reach almost every household in the UK, with 96% of people consuming BBC content via TV, radio and online every week.


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  • rate this

    Comment number 376.

    There is no point complaining how much TV personalities get paid. If the BBC dont pay the market rate for people they will just go elsewhere. Its like playing for a good football team. The BBC is a business just like any other and people will go where the money is. Id prefer to pay my tv license and get good quality rather than save a bit and get rubbish.

  • rate this

    Comment number 340.

    In most walks of life competition helps to bring prices down but two notable exceptions are sports and entertainment where competition leads to rival clubs and entertainment providers outbidding eavh other for so-called talent. Sadly there is no simple remedy unless we all switch off and play dominoes or go to bed early.

  • rate this

    Comment number 112.

    Doubtless there remains some waste and some over indulgence but around £12 a month is reasonable for all the available tv abd radio content and it does seem odd for the people who think the BBC is a waste to remain camped out on its web pages "having their say"...

  • rate this

    Comment number 108.

    It is great news that the BBC is showing responsibility and delivering a reduction in waste whilst getting better value for money.

    My concern is that, incertain areas, the cost cutting is showing. I feel we are not seeing an organisation as dynamic as our European counterparts, we have a more sedate, lacklustre broadcaster which can seem dull at times.

  • rate this

    Comment number 104.

    How can people in the public sector be paid more than the PM who arguably has far more responsibility? Joke.


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