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BBC Efficiency Review

BBC Efficiency Review An update on the BBC's overheads July 2015. Reviewing the BBC's approach to defining and allocating costs as overheads'. Following the Background The BBC's general overheads ratio All organisations have costs that are has reduced to for FY14/15. release of the BBC's The BBC is targeting a ratio below necessary and useful to support and Efficiency Review1, sustain their operations but which do by the end of the current the BBC asked PwC not directly support the delivery of core Charter period in FY16/17 through activities referred to as overheads'. completing delivery of its current to conduct an PwC was jointly commissioned by the Efficiency programmes objective Review of These results compare favourably BBC Executive and BBC Trust to its approach to provide an independent Review of the with other organisations we Efficiency . This BBC's approach in two specific areas. found the benchmark median Firstly, to assess how the BBC defines overheads ratio for a selection of report focuses on and allocates overheads within its comparable industries was the BBC's overall cost base and secondly, to and for the top quartile, approach to develop benchmarks to understand how Therefore the BBC is forecasting to general overheads, the BBC's spending on overheads be within the top quartile of today's compares with other relevant benchmark by FY16/17.

www.pwc.co.uk BBC Efficiency Review An update on the BBC’s overheads July 2015

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