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| Wage bill for BBC's top earners rises by a fifth | Wage bill for BBC's top earners rises by a fifth |
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| The wage bill for BBC television presenters earning more than £1m went up by 22% last year, as spending and staff numbers rose despite years of cost-cutting at the corporation. | The wage bill for BBC television presenters earning more than £1m went up by 22% last year, as spending and staff numbers rose despite years of cost-cutting at the corporation. |
| Three or four of the BBC’s highest-paid stars, likely to include Gary Lineker, Graham Norton and Jeremy Clarkson, shared a total of £5.1m in the year to March 2014. In the previous year, the BBC spent £4.2m on presenters earning between £1m and £5m. | Three or four of the BBC’s highest-paid stars, likely to include Gary Lineker, Graham Norton and Jeremy Clarkson, shared a total of £5.1m in the year to March 2014. In the previous year, the BBC spent £4.2m on presenters earning between £1m and £5m. |
| Chris Evans is now set to join this financial elite after signing a three-year deal to take over from Clarkson at Top Gear. And while the total number of presenters earning between £500,000 and £5m fell from 14 to nine, their average annual wage rose from £828,000 to £989,000. | Chris Evans is now set to join this financial elite after signing a three-year deal to take over from Clarkson at Top Gear. And while the total number of presenters earning between £500,000 and £5m fell from 14 to nine, their average annual wage rose from £828,000 to £989,000. |
| The earnings of the BBC’s highest-paid stars rose by far more than the salaries of its other staff: average pay at the corporation increased just 2%, giving a total bill of £976.5m, up from £955m in 2014. Overall staff numbers rose 1.7%, or by 309 jobs to 18,974, despite a 10-year cost-cutting programming set to deliver cumulative savings of £1.6bn. | The earnings of the BBC’s highest-paid stars rose by far more than the salaries of its other staff: average pay at the corporation increased just 2%, giving a total bill of £976.5m, up from £955m in 2014. Overall staff numbers rose 1.7%, or by 309 jobs to 18,974, despite a 10-year cost-cutting programming set to deliver cumulative savings of £1.6bn. |
| On-screen talent costs overall rose 7% to £208m, in keeping with the BBC’s pledge to spend more on programming and talent and after paying for the World Service, which was funded by the Foreign Office until last year. | On-screen talent costs overall rose 7% to £208m, in keeping with the BBC’s pledge to spend more on programming and talent and after paying for the World Service, which was funded by the Foreign Office until last year. |
| Related: BBC fights back against Tory assault on 'waste' and right to make popular shows | Related: BBC fights back against Tory assault on 'waste' and right to make popular shows |
| Even slightly higher costs overall could prove embarrassing for the BBC as it faces charter renewal negotiations, which kick off in earnest on Thursday when the government’s green paper is published. The culture secretary, John Whittingdale, who is preparing to unveil a root-and-branch review of the corporation, has previously called the BBC “the most wasteful, bloated organisation on the planet”. | Even slightly higher costs overall could prove embarrassing for the BBC as it faces charter renewal negotiations, which kick off in earnest on Thursday when the government’s green paper is published. The culture secretary, John Whittingdale, who is preparing to unveil a root-and-branch review of the corporation, has previously called the BBC “the most wasteful, bloated organisation on the planet”. |
| Ahead of the negotiations, more than two dozen people from the world of arts and entertainment sent an open letter to Downing Street calling on the government to make sure that it does not diminish the BBC and arguing that plans for its reform will damage Britain’s global standing. | Ahead of the negotiations, more than two dozen people from the world of arts and entertainment sent an open letter to Downing Street calling on the government to make sure that it does not diminish the BBC and arguing that plans for its reform will damage Britain’s global standing. |
| Sir David Attenborough, JK Rowling, Annie Nightingale, and Melvyn Bragg are among the signatories who wrote that “a diminished BBC would simply mean a diminished Britain”. | Sir David Attenborough, JK Rowling, Annie Nightingale, and Melvyn Bragg are among the signatories who wrote that “a diminished BBC would simply mean a diminished Britain”. |
| Others who have signed the letter include actors Rachel Weisz, Dame Judi Dench, Daniel Craig, Mark Rylance, and Lenny Henry, writing: “The BBC is a very precious institution. Like all organisations, it has its faults but it is overwhelmingly a creative force for good … We will continue to make the case for a strong BBC at the centre of British life and will be vocal in making the case for the BBC as it approaches its centenary.” | Others who have signed the letter include actors Rachel Weisz, Dame Judi Dench, Daniel Craig, Mark Rylance, and Lenny Henry, writing: “The BBC is a very precious institution. Like all organisations, it has its faults but it is overwhelmingly a creative force for good … We will continue to make the case for a strong BBC at the centre of British life and will be vocal in making the case for the BBC as it approaches its centenary.” |
| The BBC’s director general, Tony Hall, issued a passionate defence of popular entertainment shows in unveiling the BBC’s annual report. “The BBC does not belong to its staff or the government, but it belongs to the people … and what they want is a continually better BBC,” he said. | The BBC’s director general, Tony Hall, issued a passionate defence of popular entertainment shows in unveiling the BBC’s annual report. “The BBC does not belong to its staff or the government, but it belongs to the people … and what they want is a continually better BBC,” he said. |
| Two weeks ago, Hall announced a job cull affecting 1,000 middle managers in a bid to save £50m a year. A week later, he agreed a financial settlement with the government that saw the corporation agree to pay for free licence fees for the over-75s. | Two weeks ago, Hall announced a job cull affecting 1,000 middle managers in a bid to save £50m a year. A week later, he agreed a financial settlement with the government that saw the corporation agree to pay for free licence fees for the over-75s. |
| Hall arrived at the BBC in March 2013 in the wake of the Jimmy Savile scandal and in the midst of allegations of corporate excess with large payoffs for departing executives, such as the almost £1m paid to former deputy director general Mark Byford. Hall introduced a £150,000 cap on severance pay on his arrival, although the 30% reduction in the overall redundancy bill to £18m last year was due to fewer people leaving as well as the payout falling. | Hall arrived at the BBC in March 2013 in the wake of the Jimmy Savile scandal and in the midst of allegations of corporate excess with large payoffs for departing executives, such as the almost £1m paid to former deputy director general Mark Byford. Hall introduced a £150,000 cap on severance pay on his arrival, although the 30% reduction in the overall redundancy bill to £18m last year was due to fewer people leaving as well as the payout falling. |
| Related: The battle for the BBC | Charlotte Higgins | Related: The battle for the BBC | Charlotte Higgins |
| The seven executive directors of the BBC shared £2.5m for the year. The wage bill for senior managers is now £52m, down from £78m in 2009. | The seven executive directors of the BBC shared £2.5m for the year. The wage bill for senior managers is now £52m, down from £78m in 2009. |
| Men dominate those earning more than £500,000 for their on-screen work, with only Fiona Bruce, who combines newsreading with her role presenting BBC1’s Antiques Roadshow, and possibly Clare Balding, who presented the Commonwealth Games last year, likely to earn £500,000 plus. The revelation came on a day when the BBC Trust told the BBC more to put women and black, Asian and minority ethnic presenters on screen. | Men dominate those earning more than £500,000 for their on-screen work, with only Fiona Bruce, who combines newsreading with her role presenting BBC1’s Antiques Roadshow, and possibly Clare Balding, who presented the Commonwealth Games last year, likely to earn £500,000 plus. The revelation came on a day when the BBC Trust told the BBC more to put women and black, Asian and minority ethnic presenters on screen. |
| Almost half of the BBC’s staff are women and 3.8% of staff are disabled, both unchanged on last year. The number of black and minority ethnic staff rose to 13.1%, according to the report. | Almost half of the BBC’s staff are women and 3.8% of staff are disabled, both unchanged on last year. The number of black and minority ethnic staff rose to 13.1%, according to the report. |
| Anne Bulford, the BBC’s finance chief, said the increase in staff and wages was due to digital projects, as well as “cyclical” jobs at major sporting events such as the World Cup and the Scottish referendum last year. | Anne Bulford, the BBC’s finance chief, said the increase in staff and wages was due to digital projects, as well as “cyclical” jobs at major sporting events such as the World Cup and the Scottish referendum last year. |
| Rona Fairhead, chair of the BBC Trust, reiterated her view that there were likely to be further cuts in “scope”, prompting speculation that services such as the BBC News channel would be made online-only. Hall said the BBC was likely to present the trust with his ideas for change in the autumn. | Rona Fairhead, chair of the BBC Trust, reiterated her view that there were likely to be further cuts in “scope”, prompting speculation that services such as the BBC News channel would be made online-only. Hall said the BBC was likely to present the trust with his ideas for change in the autumn. |
| The debate launched by the green paper is already shaping up to be one about whether the BBC should be a universal service or should simply provide those programmes, such as children’s television, unloved by commercial operators. | The debate launched by the green paper is already shaping up to be one about whether the BBC should be a universal service or should simply provide those programmes, such as children’s television, unloved by commercial operators. |
| Ryan Bourne, head of public policy at the Institute of Economic Affairs, a free-market thinktank, said he believed popular entertainment shows such as Match of the Day and the Graham Norton chatshow had no place on the BBC. “There’s no reason why commercial operators such as ITV or Sky cannot provide those shows,” he said. “Then, if you don’t like the vast sums paid to presenters, you can stop subscribing.” Hall and Fairhead insisted that the public loved popular entertainment such as Strictly Come Dancing on the BBC. | Ryan Bourne, head of public policy at the Institute of Economic Affairs, a free-market thinktank, said he believed popular entertainment shows such as Match of the Day and the Graham Norton chatshow had no place on the BBC. “There’s no reason why commercial operators such as ITV or Sky cannot provide those shows,” he said. “Then, if you don’t like the vast sums paid to presenters, you can stop subscribing.” Hall and Fairhead insisted that the public loved popular entertainment such as Strictly Come Dancing on the BBC. |
| While Fairhead admitted there was more work to do, she said: “The BBC continues to demonstrate a strong record in improving its efficiency and productivity … The majority of licence fee payers think that the BBC provides good value for money and the trust’s review of talent costs showed significant progress in this area.” | While Fairhead admitted there was more work to do, she said: “The BBC continues to demonstrate a strong record in improving its efficiency and productivity … The majority of licence fee payers think that the BBC provides good value for money and the trust’s review of talent costs showed significant progress in this area.” |
| Related: Friends of the BBC will oppose the government’s vicious attacks | Letters | |
| Hall defended the BBC’s continued ownership of its commercial arm, BBC Worldwide, which paid the corporation £226.5m last year thanks to the success of shows including Doctor Who and The Great British Bake Off. He said the licence fee paid for less than half the budget of some of the BBC’s biggest dramas last year. | Hall defended the BBC’s continued ownership of its commercial arm, BBC Worldwide, which paid the corporation £226.5m last year thanks to the success of shows including Doctor Who and The Great British Bake Off. He said the licence fee paid for less than half the budget of some of the BBC’s biggest dramas last year. |
| The annual also revealed that the budget for the four main TV channels rose slightly, except for BBC4, which fell by 6%. | The annual also revealed that the budget for the four main TV channels rose slightly, except for BBC4, which fell by 6%. |
| The amount of sport broadcast rose by 13%, boosted by the World Cup and Commonwealth Games, while current affairs also rose 9%. The number of entertainment shows fell, but the amount of drama, current affairs and religious output rose. | The amount of sport broadcast rose by 13%, boosted by the World Cup and Commonwealth Games, while current affairs also rose 9%. The number of entertainment shows fell, but the amount of drama, current affairs and religious output rose. |