BBC Group Annual Reportand Accounts 2021/22

BBC Group Annual Reportand Accounts 2021/22

Presented to Parliament by the Secretary of State for Digital,
Culture, Media and Sport by Command of Her Majesty

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In this report
About the BBC
2
The BBC at 100
4
Inform, Educate, Entertain
6
The BBC in 2021/22
Strategic report
8
A strategy to deliver value for all
10 Statement from the Chairman
12 Director-General’s review
16 Delivering our public purposes– Impartial news and information– Learning for people of all ages
– Creative, distinctive, quality output– Reflecting the UK’s diverse communities– Reflecting the UK to the world
48 Delivering value for audiences
50 Engaging with audiences
51 Operational report– Chief Operating Officer’s review– Our finances– PSB expenditure– Our people working at the BBC– Equality Information report– BBC Pay Gap report– Consultations– Environmental sustainability– Charitable work
– Partnerships and collaboration
75 Commercial operations– Chief Executive Officer’s review– BBC Studios– BBC Studioworks
Governance
84 BBC Board
85 Corporate compliance report
86 Executive Committee
86 Next Generation Committee
87 Remuneration report
96 Pay disclosures
103 C&AG’s opinion on pay disclosures
104 Nominations Committee report
105 Audit and Risk Committee report
110 Our principal risks
127 Viability statement
128 Commercial Holdings Board report
129 Editorial Guidelines and Standards
Committee report
131 Nations Committee reports
133 Fair Trading Committee report
135 Independent Fair Trading Assurance report
136 Statement of Board responsibilities
137 Performance against public commitments
168 Performance data packs
202 C&AG’s opinion on nations performance data

P8
Strategic report

P83
Governance

P203
Financial statements

Financial statements
204 C&AG’s Certificate and Report on the BBCGroup Financial Statements
214 Consolidated income statement
214 Consolidated statement ofcomprehensive income
215 Consolidated balance sheet
216 Consolidated statement of changes in equity
217 Consolidated cash flow statement
219 Notes to the accounts
Additional information
273 Index
274 Image credits
275 Contact information and feedback

About the BBC

1

Centenary year

1922

The British Broadcasting
Company formed on
18 October 1922, and amonth later it made its firsttransmission, beginningwith its famous call sign:
2LO calling… Over the
next ten decades, BBC
broadcasting would transformall of our lives, defining us
personally and as a nation.

For 100 years the BBC has
been informing, educatingand entertaining the nation.
Here we look at some of ourmilestone moments…

1932
1927
BBC Empire Service
Launched by King George V,
it will become one of theworld’s largest newsgathering
operations as the World
Service, setting the standard for
impartial news around the globe.

BBC Proms
The BBC made classical musicaccessible to all, diversifying overtime to celebrate music of every
genre, from classical and country
to folk and jazz.

100
years ofour BBC

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Annual Report and Accounts 21/22

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1936

BBC Television begins at
Alexandra Palace
A pioneering moment, thiswas the world’s first regular“high-definition TV service”,
creating the grammar of
television as we still know ittoday. Prior to 1936 a lowdefinition experimental 30-line
system was in operation.

1963
1985
1939

World War II, the firstbroadcast war
On BBC radio, NevilleChamberlain announced theoutbreak of war, Churchill
motivated the nation with his
speeches and trusted news
was disseminated to theoccupied world.

1958

Doctor Who
The Doctor arrived in the Tardis,
regenerating every few years andin the process becoming the starof the longest running sci-fi TV
series in the world.

1979

EastEnders
The nation’s favourite
soap began, drawing hugeaudiences weekly with its
cliff-hanger moments andresonantly topical storylines.

2007

BBC iPlayer
BBC iPlayer launched as adownload-only 7-day catch-up
service – before going on
to become one of the UK’s
best-loved and most-usedstreaming platforms.

1997
2020

Life on EarthDavid Attenborough opened
up the world of natural history
in this spell-binding milestoneseries, which set the standard
for documentary making inthis genre.

BBC Online
Broadcasting – and our lives– changed forever, as the BBC
became part of the worldwide
web, followed in 2007 by thegame-changing iPlayer.
BBC Bitesize
Lockdown Learning
The hugely successful BBC
Bitesize expanded to offer
a comprehensive homeschooling service, supportingchildren and their parents
during the pandemic.

Blue Peter
The famous ship set sail, tobecome the world’s longest
running children’s programme,
inspiring generations ofchildren to be creative andmake a difference.

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About the BBC3

At a glance
Inform, Educate, Entertain

InformThe BBC provides an unrivalled level of local,
regional, national and international news andcurrent affairs. We remain the most trusted sourceof news in this country and the most trusted
international news broadcaster. We play animportant role in helping to counter themisinformation and confusion that now sooften proliferate.

EducateEducation and learning has been at the core of
the BBC’s public purposes for almost 100 years,
starting with School Radio in 1924. Today, ourprogrammes on CBeebies and CBBC, plus services
and initiatives such as BBC Teach, BBC Bitesize and
BBC Young Reporter are loved and valued by
students, teachers and parents across the UK.

Entertain

Over 27 million people come to the BBC forevening entertainment on an average day. We
provide much needed escapism and when asked,
our audience value us entertaining them the most.

8 10/

Pan-BBC News reach
Number of UK adults(16+) who use BBC News
services each week –making BBC News the UK’s
most used news provider
by far.
Source Compass by
Ipsos MORI 16+

75%

of secondary school
pupils used BBC
Bitesize in 2021/22.
Source DJS

6.6

bn

programmes streamed on
BBC iPlayer, a new record andup 8% on the previous year.
Source AT Internet

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70

%

492

m

% of UK adults who think
BBC News/Current Affairs
is effective at helping
them understand what ishappening in the UK/world
today (ineffective: 15%).

Record global weekly
audience
The BBC now reaches arecord global audienceof 492 million people.
Source Global Audience Measure

Source Ipsos MORI 16+

Steve Rosenberg reporting from Moscow

72%

of primary school
teachers surveyed said
they show Newsround inclass at least once a week.

400k
Students visited as partof BBC 100 Share Your
Story project.

Source Teacher Tracker

Newsround, 1982

1.54

bn

UK plays of radio,
music and podcasts on
BBC Sounds in 2021/22,
a new record and up 23%
on the previous year.

13mviewers of Vigil – the UK’s
most watched drama launchin three years.
Source BARB

Source AT Internet

BBC One’s Vigil
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About the BBC

5

The BBCin 2021/22
Over the past year we have continued to deliver ourvalue for all strategy. We have strengthened ourcommitment to impartiality; provided high-impact
content; and improved our digital offer, whilst
increasing the BBC’s commercial income and creating
a modern and efficient organisation fit for the future.

The BBC is at
the heart of
UK life

1

No.

The UK’s number one
brand for media.
Source Compass by Ipsos MORI 16+

260m

The UK public chooses the BBC
260 million times per day
Source Compass (16+) and Kids
Cross-Media Insight by Ipsos MORI

90%of UK adults used BBC services
on average per week in 2021/22.
Over a month almost all UK
adults – 97% – use the BBC.
Source Compass by Ipsos MORI

81%

The world’s mosttrusted international
news broadcasterof 16-34s used BBC services on
average per week in 2021/22,
with a monthly figure of 94%.

The BBC is a crucial part of the UK’s soft
power. It is the UK’s best-known cultural
export, with 60% awareness across theworld – higher than other UK cultural
exports such as British sports, universities
and technology.

Source Compass by Ipsos MORI

73%

Among under 16s – with anaverage weekly reach of 73% –the BBC is the only UK provider
used by the majority of this age
group per week and ahead ofboth Netflix and Disney.

Reaching 492 million
people each week
across the world
This is more than both Netflix and Disney’s
global subscribers combined and gives the
UK an extraordinary platform to champion
British culture, democracy and values
across the world.

Source Kids Cross-Media Insight by
Ipsos MORI

Bringing a positive
influence on global
perceptions of the UK

Across 2021/22 the people of
the UK spent 53 billion hours
consuming BBC content.

53bn

Source BARB, AT Internet, RAJAR,
Ipsos MORI, ONS

Over 50% of global users say consuming
the BBC makes them perceive the UK morepositively.
Left top to bottom
Lyse Doucet reporting from Kyiv,
Ukraine / BBC One s Time / BBC One’s
The Green Planet.
Right top to bottom
Filming BBC One’s The Responder /The Zoe Ball Breakfast Show, BBCRadio 2 / BBC One’s The Tourist.
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Annual Report and Accounts 21/22

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Providing significant
positive economic
impact across the UK

There is strong
support for the BBC’srole and mission£1>£2.63

86%

The BBC has wide ranging economic
impacts on the UK economy. For every£1 of the BBC’s economic activity, £2.63
is generated in the economy.

Commercial income£1,718m

2021/22: £1,384 million.

Cumulative savings£1bn

Delivered since 2016/17.

Industry leading
overheads
within5%of the public service cost base.

In this, the BBC’s centenary year, there
is considerable public recognition of therole that the BBC has played in UK life.
86% of the UK public say that the BBC
has been important to the people of the
UK over this period, and 75% think the
BBC has provided a necessary service
over this time.
Source Ipsos MORI 18+

78%

Today – with the vast choice available –the BBC continues to be a treasured
source of information, education andentertainment with strong public support
that this should stay the mission of theBBC. Overall, 78% of UK adults believe in
the BBC’s overall mission, with a clear
majority across all audience groups
regardless of age, gender, socio-economic
group, ethnic origin and location.
Source ICM Unlimited 18+

75%

Three-quarters of the UK public says the
BBC provides a valuable public service forpeople in the UK today
Source Ipsos MORI 16+

1

No.

Across a range of stories, BBC News isoverwhelmingly the first place the UK
public turns for impartial news coverage.
Source Yonder 18+

A leader in video,
audio and news
In video, 73% of people in the UK watch
BBC TV in a week on average – more thanany other TV or SVOD provider.
In audio, 62% of adults listen to BBC Radioon average per week – ahead of any
broadcast radio company or audio
on-demand providers.
In news, the BBC is the UK’s go-to source– chosen more than any other provider.
Source Compass by Ipsos MORI, BARB, RAJAR, Yonder

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About the BBC

7

Delivering our strategy in 2021/22

A strategy todeliver value for all
Renewing ourcommitment to
impartiality

Focusing on
unique highimpact content

Impartiality is fundamental
to the trust that audiences
have in the BBC. It is thecornerstone of who we are
and what we do, and thereason we are valued as anindependent voice throughout
the world.

The BBC must deliver greatvalue for everyone, whoever
and wherever they are. Thatmeans focusing our resources
on producing the unique,high-impact work that
resonates most strongly
with our audiences.

Impartiality has never been easy, but
our audiences are right to expect thehighest possible standards. At the
BBC we know that we need to earn
our reputation for impartiality every
day, in everything we do.

To offer great value we need tomake outstanding content inevery genre, but we cannot afford
to spread ourselves too thinly.
Today’s BBC needs to do lessthan in the past, but we mustnever compromise on quality.

This year we have strengthened ourcommitment to impartiality by:— responding to the Dyson report bylaunching the Serota Review which
examined the BBC’s editorial
processes, governance and culture— publishing a comprehensive
ten-point plan to further raise
standards across the organisation,
including regular thematic
reviews of our output in key
areas of debate— continuing to roll out impartiality
training across the BBC anduphold new staff guidelines andrules on social media anddeclaring external engagements— providing trusted coverageof the Ukraine invasion which
has been relied upon byaudiences in their millions athome and around the world

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Annual Report and Accounts 21/22

This year we have been focusing on
high-impact content by:— reallocating funds to where theygenerate most value and make our
output utterly distinctive— continuing to produce landmark
distinctive hits – these pages arefull of examples, from The Tourist
to Time, The Green Planet to The
House of Maxwell, MasterChef toMotherland, Forgotten Composers
on Radio 3 to Things Fall Apart on
Radio 4— investing £112 million of our video
and audio commissioning budget
over three years into diverse andinclusive content, like Uprising and
Then Barbara Met Alan
— bringing back BBC Three as abroadcast channel – backing
success, brave ideas and newtalent, like Sally Rooney’s
Conversations With Friends andKayleigh Llewellyn’s BAFTAwinning In My Skin

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Extracting
more value
from online

6.6bn

programmes
streamed on
iPlayer in 2021/22.
Source AT Internet

1.54bnUK plays ofradio, music andpodcasts on
BBC Sounds
in 2021/22.
Source AT Internet

A digital-first BBC mustensure that it has world classonline products and services,giving the best possible
experience to audiences in
the UK and globally.
We have made great progress withBBC Online, with News, Sport, iPlayer
and Sounds. But we need to go
further and make sure our offer isjoined up across everything we do.
The more of our distinctive content
audiences can discover, the morevalue they will get from the BBC.
This year we have worked hard todrive more value from online by:— updating our services and apps
for a more coherent and seamless
online experience, and to make iteasier for audiences to discover
everything we offer— breaking new records for iPlayer
with 6.6 billion programmes
streamed in 2021, up 8%
on 2020/21— serving 1.54 billion plays of radio,
music and podcasts on Sounds in
2021, up 23% on 2020/21— reaching one-in-three adults on
average per week with BBC News
Online, above target

Look for these symbols throughout thestrategic report to see how everything we
do is underpinned by these six priorities.

Building ourcommercial
incomeBuilding our commercial
income is critical to ourstrategy in the years ahead.
We are determined to
substantially increasefinancial returns so we canmaximise value for licencefee payers.
BBC Studios is at the heart ofour plans. It is the number one
international TV distributor
outside Hollywood, with exports
valued at £800 million in
2021/22. It continues to create
unmistakably BBC content whilst
generating competitive returns.
This year we have proven our ability
to grow commercial and global
income by:— achieving record sales and profits
for BBC Studios in 2021/22, withprofits of over £200 million for the
first time
— topping £400 million in content
sales for the third consecutive year
— exceeding our target for BBC
Studios to deliver £1.2 billion in
returns over the first five years of
the current Charter— reaching record audience share for
UKTV in 2021, with advertising
significantly boosting revenues— providing the highest-ever returnfrom BBC Studioworks of£3 million back to the BBC£1.2bnexceeding ourtarget for BBC
Studios to deliver£1.2 billion in
returns over the
first five yearsof the current
Charter.

£274

mdelivering£274 million ofsavings in-year.

5%

improving ouroverhead rate towithin 5%, once
again placing the
BBC in the top
quartile ofcomparators.

Creating amodern, highly
efficient BBC

The BBC‘Across the UK’

A modern BBC is more
efficient, more agile and more
representative of the country
we serve. It has simpler ways
of working, with none of thebarriers that can get in theway of delivering the
maximum possible value
to our audiences.

‘Across the UK’ is our plan toradically transform the BBC
by shifting much more of ourpeople, power and decisionmaking to the UK’s nations
and regions.

That is why we are working hard tocreate a stronger and more effective
organisation, and one that is able todeliver the unique value on which our
future success depends.
This year we continued to create amodern BBC by:— delivering a net reduction of 409
public service roles and£274 million of savings in-year— improving our overhead rate towithin 5%, once again placing the
BBC in the top quartile ofcomparators, and setting out
plans to drive organisational
efficiences further— driving our ambition to create a
50:20:12 organisation whichreflects more accurately thesociety we serve, and introducing a
new 25% target for socioeconomic diversity— expanding our 50:50 Equality
Project to help achieve equity ingender, ethnicity and disability
representation across the BBC— setting out our path to reaching
Net Zero by 2030 with sciencebased targets for reducing
our emissions

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It is part of our commitment tomaking sure the BBC reflects thewhole of the UK, with all its views andvoices. But it is also a plan to ensurethat the social, cultural, andeconomic benefits of the BBC are felt
in every community.
This year we have advanced our‘Across the UK’ plans by:— making new and returning shows
across the nations and regions– Shetland, The Pact, Bloodlands,
Gentleman Jack, The Responder,
Peaky Blinders, Waterloo Road— moving major BBC brands
across the UK – MasterChef
to Birmingham, Top Gearto Bristol, Morning Live toGreater Manchester— putting BBC Scotland at theheart of our COP26 coverage,
launching an official partnership
between the BBC and Creative
Wales, and reflecting thecentenary of Partition with a mixof landmark programmes from
Northern Ireland— announcing the BBC’s biggest
investment in North East Englandin decades – £25 million over the
next five years— opening a new Apprentice Hubin Birmingham and doubling
our overall commitment toapprenticeships to have 1,000
by 2025
Strategic Report9Statement from the Chairman

Above:
Jeremy Bowen reporting from Kyiv,
Ukraine / Olympics coverage

100years andbeyondThis year the BBC celebrates its
centenary, and with it one
hundred years at the heart of
the UK’s national life.
When the BBC was founded in 1922,
it was at the dawn of an extraordinary
new era of communication. Many
feared that broadcasting would be so
pervasive, and persuasive, that it
could damage society. Propaganda
from home and abroad might disrupt
democracy. Commercial interests
could distort the national
conversation. The new technology
would foster division and discord.
The BBC’s pioneers believed that thispowerful new tool needed to beharnessed in the public interest.
A number of ideals should bepreserved. Information should betrustworthy. Broadcasting should
benefit everyone. Programmes
should enrich people’s lives. Lord
Reith’s mission “to inform, educate
and entertain” was born.
Today the digital revolution hasplunged us into a whole newcommunication era, and the impacts
on our society are only starting tobecome clear.

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Annual Report and Accounts 21/22

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Commercial media providers now
compete in a landscape in which theymust chase engagement above all.
News providers are increasingly
incentivised by the rewards ofpartisan viewpoints. Social media has
evolved around the principle that
information is less satisfying thanaffirmation, and the endorphin kickwe get from our online behaviour is sopotent that corporations naturally
wish to monetise it, and bad actors
exploit it.
Alarm bells have been ringing
for some time about thedangers to democracy of thisnew information environment;
this year the Russian invasion of
Ukraine laid the stakes bare.
I am immensely proud of how BBC
news teams led the coverage of theinvasion – whether ourcorrespondents on the ground in
Ukraine and Russia, our staff in BBC
Monitoring, or our specialist
disinformation reporters working toanalyse claims from both sides in realtime (see summary on page 19).
I am particularly proud of thoseworking for our language services,and their commitment to serving
audiences in Ukraine and Russia inthe most challenging of professional
and personal circumstances.
The information war in Ukraine
serves as testimony to the growing
assault on truth and democracythat we are witnessing worldwide.
But it also speaks clearly to theunique position the BBC occupies
in the global media landscape.
Today the BBC reaches a weekly
audience of 492 million people
around the world, a figure which has
more than doubled in the past
decade. It is the best-known British
cultural export, with 60% awarenessacross the globe. It is also the world’s
most trusted international
broadcaster, relied on in particularwherever freedom is constrained.
This combination of trust and scale
gives the BBC a unique ability to takeon disinformation and promote
British democratic influence aroundthe world. What that achieves for the
UK abroad has long been recognised.
In order to deliver on thisinternational remit, as well as its
public service mission at home, theBBC is dependent on one thing: its
commitment to, and reputation for,the highest standards of impartiality.
The Board has consistently held up
impartiality as the BBC’s first priority.
It is our critical accountability tomake sure that the BBC’s standards
are underpinned by the correct
systems of governance.

I believe the case for harnessing the power oftechnological change in the public interest is asstrong today as it was one hundred years ago.
In fact, faced with the rapidly-growing threatsof disinformation, malign state influence, andassaults on democracy, it is even stronger.
This year saw the publication ofLord Dyson’s investigation into thecircumstances around the BBC’s 1995
Panorama interview with Diana,
Princess of Wales. It highlighted past
unacceptable failures. The Board
responded by commissioning a
far-reaching review of the BBC’s
editorial processes, governance andculture, led by Sir Nicholas Serota.
The Serota Review was publishedin October and made clear
recommendations which the BBC
accepted in full. The DirectorGeneral and the BBC respondedwith a ten-point plan to embedthe highest standards across theorganisation and address concerns
regarding unconscious bias andgroupthink, including regularthematic reviews of BBC output
in key areas of public debate.
Much has been achieved in this area.
We need a BBC that is beyond
reproach when it comes to standards,
processes and transparency. Our
reputation for impartiality needs tobe earned each and every day.
I believe the case for harnessing thepower of technological change in the
public interest is as strong today as it
was one hundred years ago. In fact,
faced with the rapidly-growing
threats of disinformation, malignstate influence, and assaults on
democracy, it is even stronger.
In this context, it is important thatthe BBC now has the certainty of a
six-year licence fee settlement. The
Board welcome the strategy recently
set out by the Director-General tooperate within that settlement andaccelerate the transformation of the
BBC into a more modern, efficient,and digital-focused organisation. We
also look forward to engaging closelywith the public debate around future
funding of the BBC beyond 2027.

During the year, the Board approved
the creation of a new Commercial
Board which, under the chairmanshipof Damon Buffini, will focus on
growing the BBC’s commercial
income as a key pillar of theorganisation’s overall strategy todeliver more value to all. This willbuild on the work of the Commercial
Holdings Board and I want to thank
Elan Closs Stephens for all her workin chairing the Board to the end of
March 2022.
I am proud of the record ofachievement this report outlines.
It demonstrates that the BBC
has a clear vision of how todeliver public service value toeveryone in the digital age, as
well as to the UK as whole.
It also shows a BBC that is highly
focused on delivery – whether it’sorganisational efficiency (see page52), trusted news and information(page 18), world-class British content(page 26), or spreading the economic
benefits of the BBC across the UK(page 34).
I am confident in the future of theBBC. This report shows that we are in
the process of building a digital media
organisation that can continue toinform, educate and entertain all
audiences, and be every bit asimportant to the UK’s national lifeand global influence in its second
century as it was in its first.

Richard Sharp
Chairman
23 June 2022

I want to thank Tom Ilube, Baroness
Tanni Grey-Thompson, Steve
Morrison and Fran Unsworth who allleft the Board this year. I was also
pleased to welcome four new
members – Sir Robbie Gibb, Shumeet
Banerji, Sir Damon Buffini and Muriel
Gray (see page 84).

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Strategic Report11

T

he BBC’s centenary is a very
special landmark. We arecelebrating 100 years at thecore of the UK’s creative and cultural
life. But today’s BBC is not just aboutlooking back. We are focused firmly
on the future, and our goal ofdelivering outstanding value for all
audiences in the digital age.

Director-General’s review

Deliveringvalue for all

This year has been one of major
reform to ensure that we remain
relevant and keep delivering thecritical benefits of public service
broadcasting – social, economic andcultural – for the long term.
This report highlights our progress.
It shows our determination to adapt
and succeed as a digital-firstorganisation in today’s global media
marketplace, while staying faithful tothe values which have underpinned
the BBC for a century.
I am proud of how our teams haveworked tirelessly to deliver foraudiences this year. They once again
showed extraordinary resilience in theface of Covid constraints andchallenges. And whether delivering
trusted news or educational support orworld-class British content, they havedemonstrated the enduring
importance and relevance of the BBC’s
public service mission and values.
It is vital that we now have the clarityof a six-year licence fee settlement.
Of course, it is disappointing to facea two-year freeze on our licence fee
income, meaning that we will haveto absorb the considerable costs ofinflation in this period. This presents
us with significant challenges,
especially given that the BBC’s
income for UK services is already 30%
lower than a decade ago in real terms.
However, we have financial stability
in the UK for the rest of the current
Charter period. Alongside thepotential to grow commercial
revenues, this means the BBC canfocus on the future and on delivering
against our clear priorities.
This is about much more than living
within our financial settlement. It is
about transforming the BBC into anorganisation that can succeed despite
the extraordinary pace and scale ofmarket change, capable of building
relevance to our audiences despite
the fierce competition for time in an
online world.
Our first priority is impartiality
and trust. Here we can point togood progress in rolling out newrules and guidelines across theorganisation. This year we also
responded to the Serota Review
by introducing a comprehensive
ten-point plan which recommits
us to the very highest standards.
Now the challenge for the BBC
is to take an even more assertive
approach to impartiality.

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Left:BBC One’s Peaky Blinders
Above:
Clive Myrie reporting from Kyiv, Ukraine/ The ARIA winning Woman s Hourpresented by Emma Barnett

Now the challenge for the BBC
is to take an even more assertive
approach to impartiality. We need tohold firm against the growing assault
that truth and media freedom arecoming under worldwide.
We need to hold firm against thegrowing assault that truth and media
freedom are coming under worldwide.
Back in February, on the eve of the
Ukraine invasion, a report from
Freedom House in the US found thata total of 60 countries suffereddemocratic decline in 2021, while only
25 improved. Around 20% of people
now live in what are considered to be
free countries – a proportion that has
halved in the past 10 years.
Meanwhile, the latest World Press
Freedom Index finds that journalism
is completely or partially blocked inover 70% of the 180 countries it
ranks. The situation is ranked as “veryserious” in a record 28 countries.
The way audiences at home andabroad responded in record numbers
to our coverage of the Ukraine
invasion showed how much they value
impartial news and analysis (page 18).
It was also a reminder of the role the
BBC can play in standing up for
British democratic values in today’s
disinformation world.

We continue to build our editorial
focus on getting to the truth anddelivering world class analysis – from
Reality Check and viral explainers to
podcasts such as Ukrainecast and The
War on Truth. We also understand theimpact that the BBC’s unique global
network can have when it comes tosupporting media education acrossthe globe. I recently saw this at firsthand in India, where our BBC Young
Reporter media literacy scheme hasreached over 8,000 students in 160
schools across 27 states.
I welcome the fact that the BBC’s rolein helping to combat disinformationand promote British democraticvalues worldwide has once again
been recognised by the Government
in their decision to extend support for
the World Service for a further three
years. This report shows how hard our
global news teams are working to
make that responsibility count acrossthe globe (page 44).

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1stplace audiences
turn to for
impartial news
across a rangeof stories.
Source Yonder 18+

9

BAFTA wins
and 13 ARIA
gold awards.

141m

Total streams for
the Tokyo andBeijing Olympic
games.
Source AT Internet

Our second priority is to deliver
outstanding, distinctive content
across all genres. This year we haveseen broadcast audiences of over
10 million for programmes like Vigil,
Strictly and Line of Duty. We have seen
more than 30 million iPlayer streams
for shows like The Tourist, Peaky
Blinders and The Apprentice.
We have seen the impact of
documentaries like The Green Planet:nearly half of viewers surveyed said it
made them value the environment
more, while over a quarter said it
inspired them to take action. And wehave seen millions flock to the BBC toshare an extraordinary summer ofsport, with 25 million watching theEuro 2020 final on BBC One and 7.8
million tuning in for the Wimbledon
Men’s Final on the same day.
The BBC’s creative excellence was also
widely recognised by the industry.
This year brought nine BAFTA wins,
including for Time, Uprising,
Motherland, In My Skin and Alma’s
Not Normal – as well as the “must-see
moment” award for Rose andGiovanni’s silent dance on Strictly.
It also saw the BBC pick up 31 ARIAs,
with 13 Gold awards including two for
Woman’s Hour and one each for BBC
Radio Merseyside and BBC Radio Kent.
Our job is not to simply compete withthe big global streamers on volume
of content but to maximise ourunique value to audiences by focusing
on distinctive British storytelling ofoutstanding quality. To inform,
educate and entertain. This reportshows how we are doing just that(page 26).
Strategic Report13

third consecutive year and profits
over £200 million for the first time.
We have now exceeded our target for
Studios to deliver £1.2 billion in
returns over the first five years of thecurrent Charter. And we have also
secured agreement from Government
for an increase in our commercial
borrowing limit which gives us more
flexibility to compete internationallyas we need it.

Director-General’s review
continued

Global News and Children’s in-houseproduction have now joined BBC
Studios, which means that all ourinternational commercial activities
are under a single leadership,overseen by the new BBC Commercial
Board (page 79).
Alongside these audience-facing
priorities is the transformation that
we are delivering in where we makeour content and how we run theorganisation. One area where we haveseen perhaps the most obvious
evidence of this is in our plan to shift
the BBC out of London and acrossthe UK.
The goal of the ‘Across the UK’ plan
which we set out last year was tobring us much closer to our audiences
and help us reflect them better. It wasalso to make sure that the BBC could
play its fullest possible role insupporting economic growth in every
corner of the UK. Today, half of theBBC’s economic contribution is
outside of London, over half ouremployees are based outside theM25, and over half of our network TV
production is in the nations andregions. But we can do more.

Of course, offering great value in thedigital age is not just about what weoffer, but how we offer it. That is why
we are doubling down on our strategy
to transform our digital products andensure they are world class. Quite
simply, the success of our online
services will define the success of the
BBC in the years ahead.
This year we can point to considerable
progress (page 32). BBC iPlayer broke
new records, with programmes
streamed 6.6 billion times – up 8% on
last year. BBC Sounds served up 1.54
billion plays of radio, music andpodcasts – up 23% on 2020/21. BBCNews Online reached 34% of UK
adults on average per week – that is
18 million people weekly and aheadof our target.
Audiences will also have noticed that
we have introduced a much more
coherent and seamless experience
across our online offer, making iteasier for them to discover everything
we do. The more of our distinctive
content they can find, the more value
they will get from the BBC.
Lastly, a major priority continues tobe boosting our commercial income.
It is vital that the BBC can secure theinvestment and the partners to makethe best programmes possible in ahighly competitive marketplace, andalso that we can generate maximum
returns for licence fee payers.
BBC Studios has seen record sales
and profits this year, with content
sales topping £400 million for the14

Annual Report and Accounts 21/22

Return to contents

53k

jobs across the UK
supported by ourinvestment in thecreative economy
Source KPMG,
Economic Impact of
the BBC Report

700m

Hours of content
played throughSounds across2021/21
Source AT Internet/
BBC Account data

£1.2bnOver £1.2 billion
returns from BBC
Studios in the first
five years of theCharter.

In recent months I have been on
Tyneside to announce a £25 million
investment in the region over the
next 5 years. I have visited the West
Midlands where we launched our new
apprentice hub to help more people
get work in the creative sector. We
have announced that we are doubling
our commitment to apprenticeships
UK-wide, with plans to recruit 1,000
by 2025, 80% based outside London.
This year has brought importantchanges to some of ourbiggest programmes, like theproduction of Top Gear moving
to Bristol, MasterChef moving
to Birmingham, and Morning
Live moving to Manchester.
It has also seen more of our news
teams shift out of London, and moreof our news and current affairs
programmes being broadcast fromaround the UK.
We know how much audiences value
programming from their nation or
region, with shows like Bloodlands,
Shetland, Guilt, The Pact, The
Responder, Sherwood and Gentleman
Jack, and much more to come like
Happy Valley and the return of
Waterloo Road.

We also know how important
it is that the BBC’s output truly
reflects every community in theUK, which is why we committed£112 million of our video and audio
commissioning budget over three
years to diverse and inclusive content,
like Uprising and Then Barbara Met
Alan. We are determined to invest
in people, places, opportunities
and stories from every part of theUK, and this year has proved that
we are delivering (page 34).
A major part of our responsibility to
the whole country is making sure the
BBC is representative of allcommunities, off-screen as well as on.
That is why I set a clear target of a
50:20:12 organisation – meaning
gender balanced, with at least 20%
black, Asian and minority ethnic staff
and at least 12% disabled staff. This
year we also committed ourselves toreaching a new target for lower
socioeconomic diversity of 25%
by 2027.
These are the targets against which
I am holding all BBC leaders toaccount in order to drive change atevery level of our organisation, andour latest progress is set out in thesepages (page 59).
All this is part of our broader effort tomake sure that we are a truly modernBBC. That means a highly-efficientBBC, set up to deliver maximum
possible value for the licence fee.
This year we have reduced ouroverhead rate to within 5% of our
total costs. We have delivered a net
reduction of 409 public service roles,
following the reduction of over 1,200
roles we announced last year. We
have also delivered over £274 millionof savings in-year (page 57). We willsoon set out further plans to reduce
costs and streamline the BBC.
A modern organisation is also one
that seeks to lead the way on
environmental sustainability, and thisyear we set out our path to reaching
Net Zero by 2030. Our science-basedtargets (page 69) commit us toreducing our scope 1 and 2 emissions
by 46% in that timeframe, and to
reducing our scope 3 emissions
by 28%.
There is much work to do in this area,
but I am proud that this year the BBC
also became one of 12 broadcasters
and streamers to sign up to a new
Climate Content Pledge. Together
the signatories represent over 70%of the time UK audiences spend
watching TV and film, and we arecommitted to using all our content– not just our specialist output – toengage and inform audiences on thiscritical issue.
This report demonstrates that there
is a clear opportunity for the BBC in
today’s highly-competitive global
media market. It is an opportunity tosecure something important for the
UK: world-class public service
content and services in a fully digitalage, freely available universally, forthe good of all.
The BBC continues to be the UK’s
number one brand for media, used by
90% of adults on average per week.
We are overwhelmingly the first place
UK audiences turn for impartial news.
We are the world’s most trusted
international broadcaster, and reachalmost half a billion people each week
across the world.

This report demonstrates
that there is a clear
opportunity for the BBC in
today’s highly-competitive
global media market. It isan opportunity to securesomething important for
the UK: world-class public
service content and services
in a fully digital age, freely
available universally, forthe good of all.

£112mof video and audio
commissioning
budget for diverse
and inclusive
content.

1,000
apprenticeships
by 2025, 80%
outside London.

We remain the cornerstone of thecreative industries across the UK.
Every £1 of the BBC’s economic
activity generates a total of £2.63 forthe wider economy. We support over
53,000 jobs, over half outside
London. Our investment in thecreative sector supports 14,000
organisations around the UK, over
8,000 of which are SMEs.
There is much more we must do
to transform the BBC into a truly
modern, digital-first organisation,
but this report shows we havea clear plan in place and we aredelivering against it. Our focus ison building the BBC into a leading
global digital media organisation,
capable of delivering social, economic
and cultural benefits for the UK
well into our second century.

Tim Davie CBE
Director-General
23 June 2022

Opposite page:
BBC Three’s BAFTA award-winning drama In My Skin / BBC podcasts / MasterChef /The Weakest Link
Above:
Filming BBC One’s Gentleman Jack
Return to contents

Strategic Report15

Delivering our
public purposes

Each year Ipsos MORI surveys the UK
public to gauge whether they think
we are delivering our mission andpurposes. With the easing ofrestrictions, this year’s survey was
conducted face-to-face again.
Because of the difference in method,
we cannot compare results with the2020/21 survey (undertaken via
telephone/mobile because of thepandemic) but can compare back to
the 2019/20 face-to-face survey.
This year 68% of UK adults rated
the BBC as effective in delivering
the mission,* broadly steady on
70% in 2019/20, despite themedia changes over the past two
years (14% say ineffective).
Across all audience groups regardlessof age, gender, social grade, ethnic
origin or geography, the largest
16

Annual Report and Accounts 21/22

Our aim is to offer great value for all.
Our mission and public purposes
guide our work at every step and, inthe following pages, we set out detailon what we have done in the last year
to deliver that value.

Source Ipsos MORI 18+

68%% of UK adults who say
the BBC is effective at
informing, educating andentertaining me/people in
the UK (ineffective: 14%).
Source Ipsos MORI 16+

67%% of UK adults who agree
the BBC is a crucial part ofUK culture (disagree: 21%).
Source Ipsos MORI 18+

Return to contents

Netﬂix

Instagram

Channel 5 portfolio

Facebook

Facebook

YouTube81%
BBC

DisneyNetﬂixITV portfolio

Channel 4 portfolio

ITV portfolio

BBC

98%

55+ year olds

Channel 4 portfolio% of UK adults who agree
that people in the UK would
miss the BBC if it wasn’t
there (disagree: 20%).

BBC

73%

69%

YouTubeIpsos MORI, UK adults 16+, February-April
2022 Average score across informing,
educating and entertaining people in the
UK and them

16-34 year olds

35-54 year olds

ITV portfolio*

Under 16s

Facebook

In 2021/22, on average 90% of adults
overall used the BBC per week and
81% of young adults – more than any
other brand for media. Among under
16s – with an average weekly reach of
73% – the BBC was the only UK
provider used by the majority of thisage group per week .

Top five brands most used for media in 2021/22
Average weekly reach89%

Over the coming pages, we set out
our performance in delivering against
our purposes, and more detailed
reporting on our commitments andregulatory quotas can be found on
page 137 and page 168.

number of people continue to feelthat we have delivered the mission
and purposes. The highest scores arefor helping people understand what isgoing on in the UK and world, and forthe quality of content and services.
There are scores we are working to
improve, especially impartiality
perceptions, and differences we wish
to lessen, especially in how well wereflect different people and different
parts of the UK.

BBC

The BBC’s mission, as set out in
our Royal Charter, is “to act in
the public interest, serving all
audiences through the provisionof impartial, high-quality anddistinctive output and services
which inform, educate andentertain.” Also enshrined in ourRoyal Charter are the BBC’s five
public purposes. These outline thevalues we hold when striving toachieve our mission and they
provide a clear framework throughwhich we are held to account.

YouTubeThe BBC’s public purposes are enshrined in the Royal Charter and Agreement.
They are at the core of everything we do.

Source Compass by Ipsos MORI based on 15-min accumulated average
weekly reach (on-platform), Kids Cross-Media Insight by Ipsos MORI

1

To provide impartial news andinformation to help people
understand and engage withthe world around themp.18 for more

2

To support learning forpeople of all ages
p.22 for more3

To show the most creative,
highest quality and distinctive
output and services
p.26 for more

4

To reflect, represent and serve thediverse communities of all of the United
Kingdom’s nations and regions and, in
doing so, support the creative economy
across the United Kingdom
p.34 for more

5

To reflect the United Kingdom,
its culture and values to the world
p.44 for more

Return to contents

Strategic Report17Delivering our creative remit
Public purposes

18

1Annual Report and Accounts 21/22

Return to contents

Purpose 1: To provide impartial
news and information to help
people understand and engage
with the world around them
These pages demonstrate ways in which the
BBC met its obligation to provide impartial news
and information over the last year.

Today, the BBC provides an unrivalled levelof local, regional, national and international
news and current affairs. We remain
the most trusted source of news in thiscountry and we play an important rolein helping to counter the disinformationthat now so often proliferates in our
national and international debate.
BBC News continues to come out way aheadof any other news provider when audiences
are asked to pick the one source they are
most likely to turn to for impartial, trusted
and accurate news.

Reeta Chakrabarti presenting in the
TV news studio, New Broadcasting House

280m
During the week thatthe war in Ukraine
started, anestimated audienceof over 280 million
people came to
the BBC’s online
news output.
Source Ipsos MORI/
Compass; Piano Analytics/
Social Media Analytics

The importance of what we do to ensure thateveryone has access to news and information
they can trust has been repeatedly
highlighted this year, and in particular as
Russia invaded Ukraine. During the week thatthe war in Ukraine started, an estimatedaudience of over 280 million people came to
the BBC’s online news output. We have seen
record use of BBC services in Ukraine andRussia, with our Ukrainian language platforms
reaching 6 million people and our Russian
language platforms reaching 17 million
people before services were blocked.
Meanwhile, our regional news bulletins on
BBC One continue to be collectively themost-watched news programme on TV.
Return to contents

Strategic Report19Delivering our creative remit
Public purposes

Purpose 1: To provide impartial
news and information to help
people understand and engage
with the world around them

8/10

20/21

8/10

Pan-BBC News reach
Number of UK adults
who use BBC News
services each week.
Source Compass by Ipsos
MORI 16+

63%
Ukraine
In times of crisis, people turnto the BBC in their millions for
accurate, impartial information– and this is proving the casewith the war in Ukraine.
Coverage of Russia’s invasion of
Ukraine has utilised the depth andbreadth of the BBC’s expertise – fromthe journalists, producers andoperations staff making powerfulon-the-ground reports to specialist
teams such as BBC Reality Checkpainstakingly fact checking
misinformation.
Clive Myrie has anchored the nightly
news bulletins from Kyiv, at times
from the bunker where he and the
BBC team were sheltering.
In the face of punitive Russian media
laws, newly promoted Russia editor
Steve Rosenberg and his team havecontinued to tell the story from insidethat country.
This expertise was gathered together
on the BBC’s live web pages, whichbecame an essential destination for
hundreds of millions of people
worldwide, as well as on new podcast,
Ukrainecast, launched on the first dayof the invasion.
20

Annual Report and Accounts 21/22% of UK adults who
think the BBC iseffective at providing
news and current
affairs that istrustworthy(ineffective: 20%).

Regional TV news in England
England news bulletins at 6:30pm on
BBC One continue to be collectively
the most watched news programmeon TV. The 15 local editions breaknews stories that matter mostto our audiences. It has been alandmark year with Coventry Cityof Culture, supporting audiences
through a tough news agenda with
Covid still present, the impact of
the war in Ukraine where we live andthe cost of living crisis. Combined
figures for the 6:30pm slot averageout at 3.7 million viewers.

Fighting Disinformation
At a time of international upheaval,disinformation flourishes, making
trusted news more vital than ever.
Throughout the pandemic, the BBC’s
specialist disinformation and social
media reporter, Marianna Spring, hasreported tirelessly on the misleading
information around Covid-19 and the‘anti-vax’ movement. Along with awider team of disinformation
specialists, she has been debunking
conspiracy theories, exposing fakenews, and talking to people who’vebeen affected, notably on her radio
and podcast series Death by
Conspiracy? Her recent focus has
been the information war overUkraine, presenting the podcast
War on Truth.

Source Ipsos MORI 16+

Top to bottom
Former political editor Laura
Kuenssberg’s RTS awardwinning interview with
Dominic Cummings /Ukrainecast / Chris Mason /The Cost of Covid-19

63%% of UK adults who
think the BBC iseffective at providing
news and current
affairs that is accurate(ineffective 18%).
Source Ipsos MORI 16+

51%% of UK adults who
think the BBC iseffective at providing
news and current
affairs that is impartial(ineffective 25%).
Source Ipsos MORI 16+

83%
of adults support theBBC’s mission to
inform (disagree 5%).
Source ICM Unlimited 18+

Return to contents

We remain themost trusted
source of news
in this country
and we play animportant role inhelping to counterthe disinformationthat now so often
proliferates in our
national debate.

Cost of Covid-19
Alongside the continuing expert
analysis of Covid-19 from healthand science reporters came acompassionate exploration of
the human costs of the crisis.
For a year, a BBC team wasembedded with faith leaders in one of
the most deprived parts of Burnley.
The Cost of Covid explored theshocking inequalities exposed by the
pandemic, with extended reports on
the News at Ten and across the BBC.

Of all the news sources (TV, radio, newspaper, magazine, website, app orsocial media) which one source are you most likely to turn to…
… for news you
trust the most… if you want impartial
news coverage

48%

39%

BBC
2020/21 49%

BBC
48%
Sky News 8%
ITV News 6%
Guardian 5%

Other
None
Don’t
know

24%
6%
3%

49%

BBC
2020/21 40%

BBC
39%
Sky News 9%
ITV News 7%
C4 News 4%

Other
None
Don’t
know

The series prompted spontaneousaudience donations of nearly a million
pounds to the community. It won an
RTS award and a Sandford St Martin
Trustees’ award.

… if you want accurate
news coverageBBC2020/21 52%

25%
8%
8%

BBC
49%
Sky News 8%
ITV News 6%
Guardian 5%

Other
None
Don’t
know

22%
6%
4%

Source Ipsos MORI, 928 adults 18+ who follow the news, March 2022

Top three news sources for trust rated bytheir users
To what extent do you trust… as a source of news?
(Scale: 1 = do not trust at all; 10 = trust a greatdeal). Number of users rating 6+/10 (millions)
0m
BBC
News
ITV
News
Sky
News

35m

Top three news sources for impartiality rated
by their users
How biased or impartial do you think this news
source is?
(Scale: 1 = very biased; 10 = very impartial).
Number of users rating 6+/10 (millions)
30m

0m
BBC
News
ITV
News
Sky
News

Source Ipsos MORI, users per provider from a nationally representative sample of 993 UK adults 18+, March 2022 % rating 6+/10
converted into the equivalent population figure Population figures from ONS BBC calculations

Return to contents

COP26
The BBC’s news modernisation
programme was designed to reduce
duplication and make as much impact
as possible with audiences.
The BBC’s coverage of the United
Nations Climate Change Conference– COP26 – exemplified our new way ofworking. TV and digital teams worked
together with the new Climate andScience team on live coverage of theevent, and the digital live pages
attracted 15 million page views. We
offered tailored push alerts throughthe UK news app.
In all, a total of 16 million uniquevisitors came to COP coverage,
reading an above-average numberof stories.

p.169
For the full list of statisticalinformation on Public Purpose 1

Strategic Report21Delivering our creative remit
Public purposes222Annual Report and Accounts 21/22

Return to contents

Purpose 2: To support learningfor people of all ages
The following pages demonstrate the breadthof content that the BBC provides to support
learning for all.

CBBC’s Dodger

1

Education has always been in the DNA of theBBC. This year our education and learning
mission has continued to support students,
teachers and parents still dealing with the
exceptional educational challenges of theCovid pandemic.

No.

Our BBC Bitesize educational service wasused by 64% of primary school pupils thisyear, as well as 75% of those at secondaries.
82% of under 16s who use Bitesize say thatit helps them understand their studies morewhilst 65% of secondary school users say
it helps them to achieve better grades.
Following on from last year’s “Lockdown
Learning” initiative, BBC Education produced
over 80 new hours of Bitesize Daily content
for transmission on CBBC during the 2021
Summer term, whilst 2021/22 was the firstyear of a three-year plan aimed at increasing
Bitesize’s contribution to learner outcomesfor 5-16 year olds.

Source BARBThe UK public
spend more time
viewing factual
programming fromthe BBC than fromany other provider.

The BBC’s education and learning offer
continues to reach far beyond Bitesize
and our focus on those at school. Our
goal is to help people, whatever theirstage of life, to achieve their full potential
through educational content, services andparticipative experiences from the BBC,
from partners and from each other.
Return to contents

Strategic Report23Delivering our creative remit
Public purposes

64%
Purpose 2: To support learningfor people of all ages

20/21

67%

Primary pupils% of primary school
pupils who use Bitesize.
Source DJS

75%

20/21

77%

Secondary pupils% of secondary school
pupils who use Bitesize.
Source DJS

DodgerDodger is a rip-roaring comedy
adventure following a gaggle ofirrepressible Victorian street urchinswith showrunners Rhys Thomas andLucy Montgomery giving new life toa handful of characters from Oliver
Twist and adding a host of their own.
The show premiered on CBBC and
BBC iPlayer, with a further run on
BBC One. A collaboration with BBC
Education also created films for BBC
Teach and Live Lessons on children
and work in the Victorian era. Dodger
was filmed in stunning locations
across northwest England, and hada cast including Christopher
Eccleston, David Threlfall, Alex
Kingston and Danny John Jules.

Newsround
As the BBC turns 100, we are alsocelebrating 50 years of Newsround.
Newsround’s value has perhaps
never been clearer than in recent
times, with record audiences
coming for information during the
pandemic, and now with war in
Ukraine. Newsround delivers childappropriate, impartial and trusted
information about current events
via online bulletins, the Newsroundwebsite, the CBBC channel, and social
media. Over 72% of primary school
teachers surveyed said they show
Newsround in class at least once a
week. (Source: Teacher Tracker)

Tiny Happy People
Education is at the core of the BBC’s
public service output, allowing us to
support children and parents
throughout the UK. Tiny Happy
People helps to address the shortfallin language acquisition that leaves
those in the poorest areas of the UK
playing catch-up from the day they
start school. This forms part of theBBC’s Levelling Up Goals to help
increase equality of opportunity
across the UK. The BBC has
partnered with local authorities andnational governments to place Tiny
Happy People at the heart of local
efforts, with BBC resources used bychildcare professionals, andendorsements from organisations
such as the Royal College of Speechand Language Therapists, whorecommend our work to members
and parents across the UK.

82%

20/21

80%

% of under-16 users
who say Bitesize helps
them understand theirstudies/learning more.
Source DJS

65%

20/21

57%

% of secondary school
users who say Bitesize
helps them to achieve
better grades.
Source DJS

1.8m

20/21

2.7m

Unique browsers
Average number of
unique UK browsers
accessing Bitesize on
average per week.
Source AT Internet

Bitesize Careers
BBC Bitesize Careers provides over
300 high-quality job profiles
featuring contributors from fields
such as crafts, construction,engineering and TV alongside
up-to-date salary, skills and career
pathways from the National CareersService. The site won Best
Employment Advice Website in the2021 NORA Awards, and 2022/23 will
see an expansion of profiles inpartnership with the Open University
and a new series of ‘Careers Panels’
featuring early career professionals
across a host of sectors such as
healthcare and sport from highprofile employers including
AstraZeneca, Electronic Arts, Aston
Villa FC and the BBC itself!
Top to bottom
CBBC’s Newsround / BBC
Young Reporter Q&A event

24

Annual Report and Accounts 21/22

Return to contents

We have continued
to support students,
teachers andparents still dealing
with the exceptional
educational
challenges of theCovid pandemic

04:33

20/21

05:00

Under 16s pan-BBC time
Length of time under 16s spend
with the BBC per head on average
per week (hours:mins).
Source Kids Cross-Media Insight by
Ipsos MORI

Top to bottom
Tiny Happy Peopleambassador Dani Dyer /CBeebies’ Biff & Chip /Radio 1 presenter GregJames speaking at the Share
Your Story schools tour

73%

20/21

77%

Under 16s pan-BBC reach% of under 16s who use BBC TV/
iPlayer, Radio or Online on
average per week.
Source Kids Cross-Media Insight by
Ipsos MORI60%
BBC Young Reporter
BBC Young Reporter continues tosupport young people’s engagementwith and understanding of themedia industry and provides
opportunities for 11-18 year olds
to tell their own stories. This BBC
News, BBC Academy and BBC
Education partnership initiative
works with schools, colleges
and youth groups across the UK,
involving BBC volunteers in sharing
skills in news literacy, content
creation and insights and advice
about careers in broadcasting.

% of parents who think the BBC
is effective at supporting children
and teenagers with their learning(ineffective 17%).

To mark the BBC’s centenary, theShare Your Story schools tour
and annual BBC Young Reporter
Competition will source 100
stories for broadcast across BBC
programmes and platforms in 2022.

62%

p.170

Source Ipsos MORI 16+

61%% of UK adults who think the BBC
is effective at helping them learn
new things (ineffective 18%).
Source Ipsos MORI 16+% of UK adults who think the BBC
is effective at exploring subjects
that they would know less aboutotherwise (ineffective 17%).
Source Ipsos MORI 16+

For the full list of statisticalinformation on Public Purpose 2

Return to contents

Strategic Report25Delivering our creative remit
Public purposes

26

3

Annual Report and Accounts 21/22

Return to contents

Purpose 3: To show the mostcreative, highest quality anddistinctive output and services
These pages provide examples of the rangeof creativity and quality, distinctive content
produced across the BBC last year.

The BBC is here to make great programmes
and services. It is why audiences come to us
and value us. What we have produced thisyear – across factual, arts, drama,
entertainment, comedy, sport and music –once again demonstrates our commitment tooffering outstanding value for everyone bymaintaining the highest production andeditorial standards across the broadest rangeof output.

83%
of UK adults
support the BBC’s
mission to entertain(disagree 5%).
Source ICM Unlimited
18+

A BBC that entertains is the public’s toppriority in return for their licence fee
when they prioritise. We have delivered
across every genre this year, with hugeaudiences for programmes like The
Tourist, Vigil, Peaky Blinders and The
Apprentice, major acclaim for shows like
The Green Planet, Uprising, Ukrainecast,and The House of Maxwell, and nine BAFTA
awards for shows like Time, Motherland,
In My Skin, as well as Rose and Giovanni’s
unforgettable silent dance on Strictly.

BBC One’s The Green Planet presented
by Sir David AttenboroughWe continue to put British creativity, quality
and risk-taking at the heart of the BBC.
This is what helps set us apart in the media
landscape: high-quality output on TV andradio that is unique in its distinctivenessand its focus on British content from acrossthe UK.
Return to contents

Strategic Report

27

90%
Delivering our creative remit
Public purposes

20/21

90%

Pan-BBC reach% of UK adults who
use BBC TV/iPlayer,
Radio or Online on
average per week.
Source Compass by Ipsos
MORI 16+

Purpose 3: To show the most creative,
highest quality and distinctive output
and services

17:30

20/21

18:02

Pan-BBC time
Length of time UK
adults spend with the
BBC per head on
average per week(hours mins).
Source Estimated from
BARB, BARB
Establishment Survey, AT
Internet, RAJAR, ONS 16+

The Green Planet
The Green Planet, presented by Sir
David Attenborough and produced by
BBC Studios’ Natural History Unit
used pioneering new filmmaking
technology and the very latest
science to reveal the strange andwonderful world of plants like neverbefore. It is the most watched factual
series of the year so far, with episodeone attracting 8.7 million viewers in
its first 30 days. With overwhelming
critical acclaim, it was called a‘glorious visual spectacle’ by The
Guardian and ‘a miracle of filmmaking’ by The i.

Uprising
From Academy Award winner Steve
McQueen, Uprising is a vivid andvisceral three-part series which
examines three key events from 1981
and how they affected race relationsin Britain. It was hailed as ‘a fierce,
urgent and eloquent document of
racial history’ in the Daily Telegraphand ‘brilliant and furious and human’in The Guardian. Uprising won the
RTS Programme Award for BestHistory Programme and a BAFTA
for Best Factual Series.

Return of major sport events
2021 saw the return of coverageof major sports events. The longawaited Euro 2020 Finals involved
three out of the four home nations;
England, Scotland and Wales, andafter a 12-month delay, there wasplenty of excitement and expectation.

28

Annual Report and Accounts 21/22

The BBC provided extensive
coverage across TV, radio andonline, breaking live-streaming
records and delivering a peak TV
audience of 25 million as GarethSouthgate’s England team suffered
more penalty shoot-out heartache.

67%% of UK adults who
think the BBC iseffective at providing
content/services
that set a highstandard for quality(ineffective 14%).
Source Ipsos MORI 16+

BBC Proms
In 2021, the BBC Proms celebrated
the return of live music on a scale notseen since before the pandemic with61 concerts over 44 days, featuring
more than 2,000 musicians. The
Proms overcame the challenges ofthe pandemic and every planned
concert went ahead with live
audiences – and as always, every note
was broadcast on BBC Radio 3 and
BBC Sounds whilst more than 9.7
million people tuned into the 20
Proms on BBC TV and BBC iPlayer.
British orchestras and artists were at
the heart of the festival, showcasing
the breadth of talent across the UK.
Amongst the 50 artists who madetheir Proms debut were a brand new
orchestra, the Proms Festival
Orchestra, consisting exclusively offreelance musicians highlighting thedifficulties faced in the sector due tothe pandemic.

High: Confessions of a Drug Mule
High: Confessions of a Drug Mule,
directed by multi-award winning
director Stuart Bernard, told thestory of Michaella McCollum who
tried to smuggle £1.5 million of
cocaine through Lima airport andfailed. The five-part series averaged
2.6 million viewers, with 58% of its
audience coming via BBC iPlayer,
making it the biggest BBC Three
Factual title in 2021/22.

Return to contents

Top to bottom
BBC One’s Vigil / BBC Proms/ BBC One’s BAFTA
award-winning Uprising

It was also successful in bringing new
and infrequent audiences to iPlayer:
in its week of release over 12,000
people came to BBC iPlayer for the
first time in at least 13 weeks.

Top to bottom
Euro 2020 final / BBCThree’s High: Confessionsof a Drug Mule / BBC One’s
Vigil / BBC Radio 1 DJ
Victoria Jane / Filming BBC
One’s The Green Planet

Vigil
Made and set in Scotland, Vigil had
the UK gripped as DCI Amy Silva
played by Suranne Jones arrived
by helicopter aboard the nuclear
submarine HMS Vigil to investigate
a mysterious death among its crew.
The six-part series for BBC One andiPlayer was the most-watched new
drama launch on UK television inthree years, attracting an audienceof over 13 million viewers, with a fullseries average of 12.6 million viewers(30-day consolidated figures).
A second series has been confirmed.

We continue to put
British creativity, quality
and risk-taking at theheart of the BBC: TV andradio that is unique in its
distinctiveness and its
focus on British content
from across the UK

New talent on BBC Radio 1
Radio 1 has continued to support anddevelop new talent on its airwaves.
Six promising new presenters havelanded their own shows on the
network after taking part in Radio 1’s
Christmas Takeover, where new DJs
and presenters are given a once-in-alifetime opportunity to broadcast on
the UK’s biggest youth radio station
during the festive period. Sian Eleri,
Dean McCullough, Sarah Story andVictoria Jane permanently joinedRadio 1 in 2021, and in September
2022, Alyx Holcombe and Charlie Teewill also join the station.

61%% of UK adults who think the
BBC is effective at providing
content/services that set ahigh standard for creativity(ineffective 17%).
Source Ipsos MORI 16+

61%% of UK adults who think the
BBC is effective at providing
content/services that are
distinctive (ineffective 15%).
Source Ipsos MORI 16+

70%
Approximately 70% of the
16+ UK population consumed
at least 15 mins of BBC radioor TV content outside ofNews bulletins reflecting
environmental themes
Source Compass 16+

Return to contents

Strategic Report29Delivering our creative remit
Public purposes

Alma’s Not Normal
The Caroline Aherne Bursary wasestablished in 2017 and was designed
to find, develop and support great
new comedy talent, with Sophie
Willan winning the inaugural award
and going on to develop a script for a
deeply personal comedy, Alma’s Not
Normal, which follows Boltonian
wild-child Alma Nuthall (played by
Sophie) and her family of eccentric,
unruly women.

Purpose 3: To show the mostcreative, highest quality anddistinctive output and services

A pilot episode was commissioned
under the New on Two strand for
BBC Two and a full series followed
in September 2021 which received
critical acclaim. Sophie won the 2022
BAFTA for best Female Performancein a Comedy Programme.

BBC Radio 2’s Big Bee Challenge
Radio 2’s Big Bee Challenge raised
awareness about the plight of bees
through a competition for 6-12 year
olds to design a bee-friendly garden.
The winner’s design was built at an
NHS site for young people withmental health needs. Big Bee
Challenge Weekend encouraged
listeners to do one thing to help bees,
and a BBC Sounds podcast, Bees In
A Pod, had entertaining insights into
bees and how we can help them,presented by Rob Beckett. The
Royal Horticultural Society built
engagement with schools, and othernational organisations and shows
across the BBC joined in.

Survivors: Portraitsof the Holocaust
An incredibly moving film on BBC Two
commissioned by BBC Arts for
Holocaust Memorial Day, thisprogramme followed seven artists
who were commissioned by HRH The
Prince of Wales to paint the portraitsof seven Holocaust survivors, to form
part of the Royal Collection. This film
captured the magical relationshipthat developed between the artists
and sitters, and the extraordinary
stories of the survivors illuminatedthe art as much as the art was
illuminated by their stories.

A richer service for football fans
BBC Sport launched an improved
offer for Premier League teams on
the website and app, bringing
audiences more news and informationon their favourite club from acrossthe BBC. Users now get the best of
network sport and local radio content
in one place. Since launch, theaverage time spent by users on thepages has doubled during thisfootball season, and frequently morethan one million users are now
visiting the pages in a week.
Top to bottom
BBC Radio 4’s Things Fell
Apart / Fieri Consort
performing Maddalena
Casulana for BBC Radio 3 /Rose Ayling-Ellis andGiovanni Pernice performing
their “Must See Moment of
the Year” tribute to theDeaf community on Strictly
Come Dancing

30

Annual Report and Accounts 21/22

Forgotten Composers on BBC
Radio 3
BBC Radio 3 is widening the
traditional classical music canon
and exposing listeners to works
by figures that in the past havebeen overlooked. In addition toan ongoing collaboration with
Arts and Humanities ResearchCouncil, where the station supports
academic research into forgotten
historical composers from diverse
ethnic backgrounds, Radio 3
marked International Women’sDay 2022 with the broadcast of
Renaissance composer Maddalena
Casulana’s 1583 First Book of fivevoice madrigals, with its recently
discovered Alto part, as performed
for the first time in 400 years by
vocal ensemble Fieri Consort.

Return to contents

Sustainable programming
Last financial year saw the BBC growits reach for programming withenvironmental themes. Approximately
70% of the 16+ UK population
consumed at least 15 mins of radio or
TV content outside of News bulletinsreflecting the topic.
A key factor in this was the wide rangeof programming that engaged with
November’s UN Climate Change
Summit, COP26, in Glasgow. There
was content for all audiences; fromThe One Show’s Glasgow residency(with a set made entirely fromrecycled, reused or borrowed
materials) to local radio, Radio 1, theWorld Service and Young Reporter
teaming up for Climate Voices toreflect young people’s hopes andfears. Between July and midNovember claimed knowledge of
COP26 jumped from under 20% toover 80%.

Things Fell Apart
Radio 4’s Things Fell Apart was alandmark series and podcast frominternational bestselling author andpodcaster Jon Ronson. It told eight
unexpected and deeply human stories
from the history of the so-called‘culture wars’. As well as garnering
rave reviews across the board, it was
one of the most popular podcasts
on BBC Sounds with listeners of allages. Each episode was a gripping
listen and across the series theyilluminated one of the most turbulent
dimensions of our recent history.

Top to bottom
BBC Two’s Survivors:
Portraits of the Holocaust /BBC Radio 2’s Big Bee
Challenge / BBC Two’s
BAFTA award-winning
Alma’s Not Normal

p.171

Strictly Come Dancing
Strictly continued to entertain thenation in 2021. One of the stand out
moments from the series featured
Rose Ayling-Ellis, the show’s first everdeaf contestant and winner of the2021 Glitterball Trophy. She defied
stereotypes to prove that deafness
need not be a barrier. Thatelectrifying moment in the middleof primetime TV when she covered
Giovanni’s ears and danced withoutsound – for ten seconds, as ten
million people experienced the world
through Rose’s eyes and ears. It wasmesmerising and an extraordinary
tribute to the deaf community. Roseand Giovanni went on to win the
publicly voted 2022 BAFTA for Must
See Moment of the Year.

COP26 also saw the BBC, along with
11 other broadcasters and streamers,
sign the Climate Content Pledge,
committing us to considering climate
themes, where appropriate, in all ourcontent. This builds on work alreadyunderway to explore the topic in alight-touch, relatable way for thebroadest of audiences, from green
business opportunities in The
Apprentice, to sustainable prizes in
Richard Osman’s House of Games.
Our acclaimed specialist content
continues to inspire, with Sir David
Attenborough’s The Green Planet
peaking at 8.7 million viewers in 30
days for the most watched episode,and almost half of viewers surveyedsaying that it made them value andfeel more connected to nature.
Solutions were the focus of The
Earthshot Prize: Repairing our Planet
and Radio 4’s 39 Ways to Save thePlanet, whilst Shop Well for thePlanet?, Radio 2’s Big Bee Challengeand BBC Education’s The
Regenerators, all showcased practicalsteps for audiences to make adifference. BBC News continues to bea vital place to source impartial
information and the latest updates.

p.69
For more information
on sustainability

For the full list of
statistical information
on Public Purpose 3

Return to contents

Strategic Report31Signed-in reach of BBC iPlayer
Average weekly accounts signing in to iPlayer
Accounts overall

Delivering our creative remit
Public purposes

12.1m

Under 35 year olds’ accounts

3.8m(2020/21: 10.7 million overall; 3.2 million under 35).
Source AT Internet/BBC Account data

BBC iPlayer streaming time

Purpose 3: To show the most creative,
highest quality and distinctive output
and services

44.5m

Average weekly hours played through iPlayer(2020/21: 39.7 million).
Source AT Internet/Sky catch-up data

16-34

All

16%
BBC iPlayer
The growth and transformation of
BBC iPlayer continues to be core to
our strategy as we give audiencesmore choice and more control overtheir viewing experience. The changes
we made to the service in 2021/22
continued to deliver for viewers
building on the strong growth ofrecent years. 2021/22 was iPlayer’s
best ever year with a record 6.6 billion
programmes streamed – up 8% on
the year before.
2022 has started more strongly thanany other year on BBC iPlayer – with
January seeing all-time records forreach and hours of viewing (average
weekly signed-in accounts at 13.3
million and weekly hours at 54
million) – and February breaking
reach records again, up +2% on
January’s record, to 13.5 million.
The year saw BBC iPlayer offer
viewers more than ever before –with more box sets of returningand classic shows to binge on, live
sport – from the Olympics to theEuros and the FA Cup – as well as all
the news, including the latest about
the pandemic and the most recent
updates about the war in Ukraine.
The epic return of Line Of Duty saw
millions of us flock to iPlayer as theidentity of “H” was finally revealed. It
topped the charts as iPlayer’s biggest
box set of 2021 with all of its series
combined streamed 137 million times
and the first episode of the sixth
series on its own was streamed
9.2 million times, making it thebiggest single episode of 2021.
Quality British drama was hugely
popular on iPlayer with many brandnew success stories including Vigil,
Time, The Tourist and The Responder
all watched by millions and all fourcommissioned for another series.

32

Annual Report and Accounts 21/22

Other hugely popular titles included
the postponed Olympics in Tokyo,
which was streamed over 100 million
times, US smash-hit Pretty Little
Liars, which was streamed over
80 million times – as well as all theaction from the Euros, with matches
streamed 68 million times in 2021.
The year also saw iPlayer roll-out abrand new look and feel. On internetconnected TVs, we modernised how
the service looks with a navigation
bar created on the left hand side of
the screen for easy access to a richer
depth of choice in the genre category
areas. We reduced clutter elsewhereon the screen and provided space for
eye-catching thumbnails to help draw
viewers towards something new towatch. We updated the way that thecontent rails work and introduced
many new ones helping viewers tofind the programmes that are most
relevant to them.
For children, we built on the recent
work that enables them to have theirown profiles and we continued torefine how the service works for themas they grow up, ensuring age
appropriate promotions that will bemost relevant to them at the different
stages of life.

20/21

13%

43%

20/21

34%

% of BBC TV viewing that is delivered by iPlayer.
Source BARB/AT Internet/Sky catch-up data 2020/21 restatedbased on changes to calculation method

16+

8/10

16-34

20/21

8/10

8/10

20/21

8/10

Weekly users’ rating of BBC iPlayer (mean score/10).
Source YouGov 16+

16+

81

%

16-34
20/21

81%

77%

20/21

78%

% of weekly users rating iPlayer as effective at helping
the BBC to deliver the mission overall (10% of 16+ and
15% of 16-34 users say ineffective).
Source Ipsos MORI

16+

83%

16-34
20/21

81%

79%

20/21

79%

% of weekly users rating iPlayer as effective at helping
the BBC to deliver the public purposes overall(7% of 16+ and 9% of 16-34 users say ineffective).
Source Ipsos MORI

We also made significant
improvements to the way viewers cancontrol subtitles on iPlayer. The newposition of the subtitles and settings
menu makes it easier than ever toturn subtitles on or off, as well as
making it easier to choose the audio
described and signed versions whereavailable; plus, we also added theability to change and control the sizeof the subtitles.
And we made it easier for people tofind iPlayer from many otherlocations including streaming sticks
and multiple TV platforms, working
with partner organisations so thatviewers can experience easierjourneys into iPlayer from wherever
they start.

Return to contents

p.173
For the full list of
statistical information
on BBC iPlayerWe have had Callum Wilson andMichail Antonio on Footballer’s
Football Podcast, Danny Robins
on The Battersea Poltergeist andUncanny, to Michelle Visage andMarianna Spring on Death by
Conspiracy. We also launched thefirst BBC Sounds Audio Lab creators,
our new initiative to amplify thenext generation of podcasters
from underrepresented groups.

BBC Sounds

8/10This year has seen continued growth,
creative ambition and productdevelopments for BBC Sounds. Morepeople are using BBC Sounds tolisten to all of the BBC’s audio when
and where they want to, which isincreasingly on mobiles, smart
speakers and connected TVs. In
2021/22 there were 1.54 billion UK
plays of radio, music and podcasts on
BBC Sounds, an increase of 23% on
the previous year.

20/21

8/10

Weekly users’ rating of BBC Sounds(mean score/10).
Source YouGov 16+

All

3.8m

16-34
20/21

3.5m

570k

20/21

572k

Average weekly accounts using BBC Sounds.
Source AT Internet/BBC Account data

13.2

m 20/2110.9m

BBC Sounds streaming time
Average weekly hours played through Sounds.
Source AT Internet/BBC Account data

p.174
For the full list of
statistical information
on BBC Sounds

Some of the world’s best podcasters
and the BBC’s expert journalists havegiven listeners extraordinary
podcasts providing in-depth analysisof the most important events andstories of our time, as quick
turnaround podcasts Ukrainecast,Putin, and War on Truth did after
Russia’s invasion of Ukraine. Radio 4’s
Things Fell Apart by Jon Ronson and
The Coming Storm, which explored theculture wars and development of
QAnon, respectively, also proved
hugely popular with listeners.
Over the past 12 months, we have
expanded ways in which fans can
indulge in the BBC’s biggest TV
shows on Sounds, including ourObsessed With… podcast series forshows like Line of Duty and Strictly
Come Dancing, Bad People specials for
The Tourist and A Very British Scandal,
and increasingly popular TV
soundtracks such as The Sound of
Peaky Blinders. We also launched
My Sounds music mixes to mark theBBC’s Centenary with some of theBBC’s most loved names sharing their
top tunes including Louis Theroux,
Stacey Dooley, Ade Adepitan and
Ruth Madeley.
We have brought a range of great
voices to podcasting, from influencers
Mariam and Adeola on Pressed, theex-boxing champ on Tony Bellew isAngry, to Marian Keyes and Tara Flynn
on Now You’re Asking.
Return to contents

Our on-demand music has gone fromstrength to strength, and great series
with Fearne Cotton, Cillian Murphy,
Arlo Parks, Big Narstie, Sophie
Ellis-Bextor and Romesh
Ranganathan have proved popularwith listeners. We’ve continued tofind new ways for people to easily
discover relevant music from acrossthe BBC, and we launched Radio 1
Relax, helping younger listeners to
discover a range of content to help
with wellbeing.
We keep making improvements to
the BBC Sounds website and app
listening experience, including thisyear giving listeners the ability to add,
sort and delete items in the playqueue so they can easily choose whatis played next for them. We improved
the music and podcast pages withnew categories such as Stay in theKnow, True Crime, Life Stories andFeel Good Tunes, better showcasinga huge range of audio across different
genres to help people find what
interests them. We also launched
BBC Sounds in the Sonos app thisyear, giving people another way toenjoy brilliant BBC live and ondemand audio.
How audiences used BBC iPlayer
and BBC Sounds in 2021/22
BBC iPlayer requests by device
and type
Out of 6.6 billion requests:
TV device70%
Tablet12%
Computer9%
Mobile9%Live
On-demand

21%
79%

BBC iPlayer weekly signed-in
accounts% age profile
Under 35s
31%
35-54 year olds
31%
55+ year olds
28%
Unknown age
9%Plays on BBC Sounds split by typeOut of 1.54 billion plays:Live
55%
On-demand
45%
Live speech
Live music
On-demand speech
On-demand music

32%
24%
37%
7%

Due to rounding, figures may not sum to 100%
Source AT Internet

Strategic Report33Delivering our creative remit
Public purposes

34

4

Annual Report and Accounts 21/22

Return to contents

Purpose 4: To reflect,
represent and serve thediverse communities of all of
the United Kingdom’s nations
and regions and support thecreative economy
The following pages demonstrate the BBC’scommitment to serving all audiences acrossthe UK.

The BBC has the privilege of a funding model
which means we must offer great value toeveryone, whoever and wherever they are.
That means making sure we represent thewhole country, portray its diverse
communities authentically across our output
and ensure all its views and voices are heard.
This report details the work we are doing to
make sure the BBC reflects the full diversityof the UK in all we do.
Today, over half of the BBC’s network TV
production is in the nations and regions, andwe have major production centres throughout
the UK. Over half of our employees are basedoutside the M25, and half of the BBC’s total
economic contribution is outside of London
compared to the sector average of 20%.

BBC Two’s Then Barbara Met Alan

54%
Over half of network
television
production is in thenations and regions,with 54% fromoutside London.

53%
We remaincommitted tolocating at least
50% of ouremployees outside
London and some
53% are currently
based outside
the M25.

But we know we can do more. That’s why, atthe start of last year, we set out ambitious
plans for our biggest transformation in
decades: to shift the BBC’s people, power anddecision-making to the UK’s nations andregions. This report shows how those plans
are now translating into concrete delivery inevery part of the UK.
Return to contents

Strategic Report35Delivering our creative remit
Public purposes

Purpose 4: To reflect, represent
and serve the diverse communitiesof all of the United Kingdom’s
nations and regions and support
the creative economy

Network television programming
spend by region as a percentage of
eligible spend
2021

2020

London

46.4%

52.1%

Scotland
Wales
Northern Ireland

8.6%
7.2%
3.9%

6.5%
8.2%
1.7%

Total nations

19.7%

16.4%

Midlands
North of EnglandSouth of EnglandMulti-region*

2.0%
17.4%
10.2%
4.3%

2.5%
17.4%
10.1%
1.5%

Total regions
excl. London

33.9%

31.5%

Total nations andregions

54%

47.9%

Grand total

100%

100%

BBC Local Radio** and nations radio
hours of output
Top to bottom
BBC Three’s Angels of theNorth / The Audio Lab Class
of 202254%% of UK adults who
think the BBC iseffective at reflecting
people like them(ineffective 24%).
Source Ipsos MORI 16+

58%% of UK adults who
think the BBC iseffective at providing
content/services
relevant to them(ineffective 21%).

2021

Dedicated services
The BBC provides a range of
dedicated, cross-genre output
specifically for Scotland, Wales,
Northern Ireland and the English
Regions across television, radio andonline. Each area makes televisionand radio programmes and online
content for their local audience andfor the network.
We have major production centres
in Glasgow, Cardiff, Belfast, Salford,
Bristol, Birmingham and London.
Network supply
Over half of network television
production is in the nations andregions, with 54% from outside
London and 19.8% from Scotland,
Wales and Northern Ireland.

England (excl.
London)LondonScotland
Wales
Northern Ireland

Annual Report and Accounts 21/22

243,251 243,417
7,283
7,789
12,036 11,843
14,771 14,80 6
8,041
7,875

Network television spend based on Ofcom
definitions by calendar year
* Multi-region covers programmes madeoutside London but which cannot be
attributed to any one region or nation** The BBC Local Radio and nations radio hoursof output only includes BBC original
programmes and excludes any repeat
programmes

p.174
For the full list of statisticalinformation on Public Purpose 4

Source Ipsos MORI 16+

36

2020

Return to contents

Above:BBC One drama The
Responder. The character ofChris Carson, played by Martin
Freeman, was developed aspart of the BBC Northern
Voices Writersroom project.
Opposite page:
BBC Scotland’s Disclosure:
Should I Tell You I’m Trans? /BBC Three’s Dreaming
Whilst BlackNo media provider does
more than the BBC toserve the UK’s nations,regions and communities.
Our investment in thecreative economy
supports economic
growth and 53,000 jobs
across the UK.

54%% of UK adults who
think the BBC iseffective at reflecting
the part of the UK they
live in (ineffective 22%).
Source Ipsos MORI 16+

55%% of UK adults who
think the BBC iseffective at catering forthe part of the UK they
live in (ineffective 21%).

UK PSB staff by nation
We also remain committed tolocating at least 50% of ouremployees outside of London andsome 53% are currently basedoutside of the M25.
UK PSB staff by nation (equivalent
full time) % (excl. BBC Studios
in 2021)
NationEngland (excl.
London)LondonScotland
Wales
Northern Ireland

31 March
2022

31 March
2021

34
47
8
7
4

33
48
8
7
4

Source Ipsos MORI 16+

59%% of UK adults who think
the BBC has programmes,
content and services thatraise awareness of thedifferent ways of life andperspectives in UK
society (ineffective 19%).
Source Ipsos MORI 16+

Return to contents

Strategic Report37formats which brought the cultural
highlights to audiences via TV, Radio
Cymru and online platforms.

Delivering our creative remit
Public purposes

As coverage of the pandemic
continued, audiences tuned in forcomprehensive coverage and criticalinformation across our news services
on TV, Radio Cymru, Radio Wales andonline. Our reporters andcorrespondents provided up-to-date,
impartial information and insights as
Wales navigated the public healthcrisis over 12 months.

Purpose 4: To reflect, represent
and serve the diverse communitiesof all of the United Kingdom’s
nations and regions and support
the creative economy

90%

Providing trusted and impartial
coverage of the Welsh Senedd
elections in May for new and existing
voters in Wales and for audiences
across the rest of the UK was also apriority. Our digital news services
provided continuous coverage,
supplemented by political podcasts
such as Walescast along withcoverage on television and radio.
There was also speciallycommissioned content for young
people who were eligible to vote forthe first time. With the counting
taking place during the daytime,
our programmes attracted larger
audiences than usual, tuning in to see
democracy in action. Over 1.1 million
tuned in to our programmes about
the election which is almost half of
the adult population in Wales.

20/21

92%

Pan-BBC reach% of adults in Wales
who use the BBC TV/
iPlayer, radio or online
on average per week.
Source Compass by Ipsos
MORI 16+71%% of adults in Wales
who think the BBC
informs, educates andentertains people in
the UK/them(ineffective 14%)
Source Ipsos MORI 16+

50%% of adults in Wales
who think the BBC iseffective at reflecting
people like them(ineffective 26%)
Source Ipsos MORI 16+

The BBC in
Wales
Authentic, homegrown and highimpact drama continued to be a big
part of our story this year. The Pact
was enjoyed by millions across the UK
over the summer months and thereturn of the popular BBC Wales andS4C co-commission, Hidden delighted
audiences. Hard-hitting documentary
A Killing in Tiger Bay was broadcast
across the UK to critical acclaim,
retelling the story of one of thebiggest miscarriages of justice in the
UK whilst Slammed told the story ofWelsh rugby during a tumultuous
decade in its history.

As part of our slate of content for
network radio, BBC Wales continued
to make the major strand Composerof the Week for Radio 3, and produced
several documentary series forRadio 4 including Young Farmers andPast Forward: a Century of Sound,marking the BBC100 celebrations.
Our drama team worked withBBC Scotland to produce United
Kingdoms, a major series of micro
dramas from writers and producers
across the nations. Other drama
highlights included The Miser forRadio 3 starring Toby Jones to mark400 years since Molière’s birth.

Comedy continued to be a priority forRadio Wales and TV with A Festivalof Funny season on TV and as acollection of stand-out laugh out
loud programmes on BBC iPlayer
followed by the second series of
The Tuckers broadcast in January.
We followed the Wales football teamacross all platforms during therescheduled UEFA European FootballChampionship finals, with coverage,commentaries and highlights as wellas additional content for fansincluding the transfer of Elis James’
Feast of Football from podcast to TV.

p.177
For the full list of statisticalinformation on Wales

p.131
Top to bottom
A Killing in Tiger Bay /The Pact / Slammed

September saw the launch of an
official partnership between the BBC
and Creative Wales, which has
resulted in effective collaborationand commissions. And as the
pandemic continued to impact Wales’
cultural events across the country,
BBC Wales worked with partners suchas the Urdd and the National
Eisteddfod on new, innovative

38

Annual Report and Accounts 21/22

Return to contents

To read more about how theWales Committee has monitored
and reviewed performancein Wales88%
The BBC in
ScotlandBBC Scotland was at the heart ofglobal climate conference COP26,
adjacent to our Glasgow Pacific
Quay broadcast centre, in autumn
2021. In addition to special news
coverage, other content included:
Our Planet Now – Scotland Climate
Change Special examining how
Scotland’s people, innovators andexperts are tackling the climate
emergency; Radio Scotland’s Climate
Tales enabling young people toexpress hopes, fears, aspirations
and opinions around climatechange; Black Black Oil examining
Scotland’s historical and emotional
entanglement with North Sea oil;and The Hermit of Treig sharing alife of solitude in rural Scotland.
The shadow of the Covid-19
pandemic continued to generateaudience demand for impartial
Scottish news, health information
and analysis, ranging from coverageof Scotland’s varying lockdown
restrictions to two full days of
Scottish Parliament election results,
and analysis of the formation of
Scotland’s first coalition government
since 2007.
As live events returned, BBC Scotland
delivered significant audience value.
BBC ALBA and Radio Scotland
simulcast the final stages of BBC
Radio Scotland Young Traditional
Musician. A scaled-down Edinburgh
International Festival, Fringe andBook Festival were covered on TV,
radio and online; and output from
Glasgow’s TRNSMT Festival andCeltic Connections enabled audiences
to reconnect with live music.
Meanwhile, over one million Scots
brought the 2022 New Year in withBBC One Scotland and the BBC
Scotland channel – over 60% of all
viewing in Scotland at the time – with
Hogmanay fronted by Edith Bowman.
Over the 12 months from April 2021
to March 2022, the BBC Scotland
channel was the largest digitalchannel in Scotland, outside the 5
main channels, with more than one insix watching weekly, and requests via
iPlayer for Scottish content rose by
more than 18%.

20/21

88%

Pan-BBC reach% of adults in Scotland
who use the BBC TV/
iPlayer, radio or online
on average per week.
Source Compass by Ipsos
MORI 16+66%% of adults in Scotland
who think the BBC
informs, educates andentertains people in
the UK/them(ineffective 10%).
Source Ipsos MORI 16+

55%% of adults in Scotland
who think the BBC iseffective at reflecting
people like them(ineffective 25%).
Source Ipsos MORI 16+

The BBC reflected the atmosphere as
Scotland hosted four Euro 2020
matches, and with the Scotland men’s
team at their first international
tournament since 1998, we
commissioned special content in
Gaelic and English. This included theEuros Breakfast Show, a unique mix ofanalysis, football banter, live music
and comedy, not available anywhere
else in Scotland at breakfast.
Our focus on high-impact content
this year also included the second
series of drama Guilt which has hadover 11 million streams on iPlayer
since it began; #CancelKarenDunbar,
with the comedian navigating taste
and offence issues; investigative
journalism strand Disclosure; The
Hunt for Bible John, re-examining
murder cases from 1968; andScotland’s Home of the Year reached aquarter of adults across the country.
Black History Month was marked with
Trusadh Afro-Gàidheil, a powerful
exploration of Gaelic speakers ofAfrican heritage; a special edition ofEòrpa explored gender identity; andchildren’s short-film, Cùm Sùil Orm(Keep an Eye on Me) saw a 10-year-old
Syrian refugee telling the story of ayoung asylum-seeker.

Top to bottom
Float / Guilt / SpeakGaelic

Growing our digital offer, BBC
Scotland drove further value fromonline, including: Float, a 6x10minute drama series for iPlayer;
red button offering more women’sfootball; streaming of live sport
including netball and curling;
and podcasts such as Sacked in
the Morning and Podlitical.
SpeakGaelic, a partnership project,delivered a suite of learning resources
including a website, podcasts, andradio and TV programmes launched
digitally-first, on BBC iPlayer,
Sounds, online and on social media
platforms to engage a worldwide
audience of Gaelic learners andlapsed speakers. Find out more
at: https://speakgaelic.scot/.

p.176
For the full list of statisticalinformation on Scotland

p.131
To read more about how the
Scotland Committee hasmonitored and reviewed
performance in Scotland

Return to contents

Strategic Report39

Shy Man Showman; and viewers wereable to enjoy a virtual caravan holiday
in Ulster By The Sea. Long-running
comedy panel show The Blame Game
took its recordings to regional venues
and a new generation of comedy andperforming talent was showcased in
Dry Your Eyes and Comedy Pilots.

Delivering our creative remit
Public purposes

The centenary of Partition and theestablishment of Northern Ireland
was reflected in a mix of landmark
programmes. These included Patrick
Kielty: One Hundred Years of Union,
The Road to Partition and live
coverage of an inter-denominationalreligious service from Armagh
Cathedral – all of which were shown
on BBC network television. The
complexities and contemporary
resonances of the past were also
explored through a suite of online
and audio resources, some of whichwere developed in partnership with
Queen’s University.

Purpose 4: To reflect, represent
and serve the diverse communitiesof all of the United Kingdom’s
nations and regions and support
the creative economy

91%

20/21

BBC Radio Ulster and Foyle
maintained their reach andpopularity, and locally produced
programmes secured increased
audiences both in Northern Irelandand UK-wide on BBC Sounds.
These programmes included theinnovative podcast series’ Assume
Nothing and Nolan Investigates:
Stonewall. We also delivered a rangeof content for BBC network radio,
including drama, short stories,
documentaries and classical music.

88%

Pan-BBC reach% of adults inNorthern Ireland who
use the BBC TV/
iPlayer, radio or online
on average per week.
Source Compass by Ipsos
MORI 16+67%% of adults inNorthern Ireland who
think the BBC informs,
educates andentertains people
in the UK/them(ineffective 8%).
Source Ipsos MORI 16+

57%% of adults inNorthern Ireland who
think the BBC iseffective at reflecting
people like them(ineffective 16%).
Source Ipsos MORI 16+

The BBC in
Northern
IrelandAcross the year the BBC in Northern
Ireland delivered programmes withbreadth, depth and wide appeal –reflecting diverse needs andproviding points of connection
during difficult times.

The easing of Covid-19 restrictions
allowed us to resume some outside
broadcast activity, including an
extended series of programmes fromthe Balmoral Show. We showcased
diverse musical talent in Where Music
Matters Day, the Young Musician
Platform scheme (which is run inassociation with the Arts Council) anda new initiative, the BBC NI School
Soloist of the Year.

The effects of Covid-19 and its impact
on community life was reflectedacross our news output, providing
BBC audiences with essential
information and a forum for debate.
Our journalists explained difficulties
linked to the Northern Ireland
Protocol, political tensions at
Stormont, and issues affecting thehealth service and economy.
Co-commissions with BBC network
television provided moments of highimpact content, including the popular
daytime soap Hope Street, which wasfilmed in Donaghadee and tractor
driving spectacle from Ballymoney in
The Fast and the Farmer-ish. This wasin addition to local involvement with
BBC network dramas like Bloodlands,
Conversations With Friends andBlue Lights and the benefits
they’ve provided for the creative
industries in Northern Ireland.

Our local sport coverage wasrefreshed and extended, expanding
our use of the BBC’s digital platforms
to do new things and to reach a wider
audience. And we played our part incontributing to the cultural wealth of
the region through joint initiatives
with strategic partner organisations
including Northern Ireland Screen,
the Ulster Orchestra and Libraries NI.
Top to bottom
Patrick Kielty: One Hundred
Years of Union / The Fast andthe Farmer-ish / Hope Street

Television programmes captured thestories of local people and places andthe diversity of contemporary life.
Outdoor and environmental themes
were a feature of Barra’s Wild Days
Out and The Chronicles of Strangford;
True North: Pride of Place told thestory of Cookstown’s first Prideparade; we celebrated playwright
Brian Friel’s genius as part of a special
Arts season in Brian Friel –40

Annual Report and Accounts 21/22

Return to contentsp.178
For the full list of statisticalinformation on Northern Irelandp.132
To read more about how theNorthern Ireland Committee hasmonitored and reviewed
performance in Northern Ireland

90%
The BBC in
EnglandOur services in England continued
to bring our audiences impartial
information and analysis throughout
the pandemic as well as high-impact
content to entertain and support
people through difficult times. We
offered trusted news and familiar
voices right across the country
alongside the latest local news.
As it has throughout the Covid-19
crisis, BBC Local Radio has beendelivering audience value by
connecting communities andproviding vital services such as news,
sport, entertainment, and religious
services. The latest figures show our
39 local stations in England arereaching over six million listeners
each week.
The BBC’s Make A Difference
campaign reached communities
across England – acting as a virtual
notice board in towns and cities
across the country. We’ve launched anumber of initiatives under the Make
A Difference umbrella including a newcommunity awards scheme and Kit
Out the Nation, which saw more than
50,000 sportswear items donated toyoung people in need. At the end of2021, our stations broadcast a highimpact series of programmes called
Christmas Together, which saw key
workers across England honoured.
Stars such as Ed Sheeran helped us
thank people who’ve kept the country
going during the pandemic. Singer
Katie Melua helped us with ahomeless campaign.
Across radio, TV and online, ourlocal services have delivered realvalue by keeping people safe andinformed through challenging
times such as Storm Arwen, whereaudiences in the North East wereleft without power for weeks. As
well as trusted, impartial local news
we also delivered landmark, highimpact coverage of Coventry’s Cityof Culture celebrations. We are now
focused on big issues that matter toour audiences, particularly the costof living crisis that is having suchan impact on household budgets.

20/21

90%

Pan-BBC reach% of adults in England
who use the BBC TV/
iPlayer, radio or online
on average per week.
Source Compass by Ipsos
MORI 16+68%% of adults in England
who think the BBC
informs, educates andentertains people in
the UK/them(ineffective 14%).
Source Ipsos MORI 16+

54%% of adults in England
who think the BBC iseffective at reflecting
people like them(ineffective 24%).
Source Ipsos MORI 16+

We continue to explore new ways toengage audiences and are working toensure all regional variants of BBC
One in England will be available in
HD. We have been trialling newtechnology to make our production
facilities more efficient and resilient.
We have started work refreshinggallery facilities and in Southampton
we are using the first of a newgeneration of automated galleries
to support our production.
Our weekly regional politicalprogramme adds considerable value
as it continues to be the only show of
its kind on TV in England, with 11
regional versions aired each Sunday.
We have 12 political editors working
on regional TV and a further 43
political reporters on local radio all
working to provide impartial coverageof local politics affecting audiences
across England.
We continue to commission
programming across different genres
and working with other parts of the
BBC to make programming thatreflects England. That’s seen the likes
of Yorkshire Firefighters, Villages by
the Sea, Winter Walks, and Chris
Packham: The Walk That Made Me
broadcast throughout the year. At
the beginning of this year, We Are
England, a series looking at social
issues through the eyes ofcommunities across England, madefrom hubs in Leeds, Newcastle,
Birmingham, Bristol, London andNorwich, went out on BBC One. The
England commissioning team hasannounced creative partnerships in
the West Midlands and in the North
East working with indie production
companies to produce compelling
network programmes rooted inregionality for BBC Three.

Top to bottom
Yorkshire Firefighters /Villages by the Sea /BBC Radio Devon

p.179
For the full list of statisticalinformation on Englandp.132
To read more about how the
England Committee hasmonitored and reviewed
performance in England

Providing value for all of ouraudiences across England, ourregional news bulletins at 6:30pm
on BBC One continue to becollectively the most-watchednews programme on TV. Combined
figures for the 6:30pm slot averageout at 3.7 million viewers.

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Strategic Report

41

The Audio Lab Class of 2022 is madeup of seven podcasters from a rangeof diverse backgrounds who aretransforming their ideas into
podcasts and the scheme has also
created opportunities for 14
Production Mentors and 12 Technical
Producers. Radio 3 has continued ispartnership with the Arts andHumanities Research Council infunding seven researchers to expand
the breadth and diversity of what is
accepted as belonging to the classicalmusic canon.

Delivering our creative remit
Public purposes

Purpose 4: To reflect, represent
and serve the diverse communitiesof all of the United Kingdom’s
nations and regions and support
the creative economy

Delivering
representationand portrayal
For the BBC to deliver value for all,it is essential that it represents andauthentically portrays the diverse
communities across the UK. The
voices we hear on-air and the people
we see on-screen should reflect thebreadth of the UK, whilst thediversity of the production talentbehind-the-scenes is vital todelivering content which resonateswith and authentically portrays thediverse communities right acrossthe nations and regions.
On-screen and on-air
representation
The BBC’s Diversity Commissioning
Code of Practice sets out fiveprinciples that are key to ensuringthat all of the UK’s diverse
communities are represented
in our content, and that theirexperiences and perspectives
are authentically portrayed. The
diversity commissioning annual
report monitors the progress madeby the BBC and its suppliers.
The BBC’s TV Supply Report
2022 will track how much of ourCreative Diversity Commitment –to prioritise £100 million of existingcommissioning budgets for diverse
content which authentically portrays
our audiences – has been spent so far.
The BBC’s 50:50 Equality Project isthe biggest collective action on
increasing representation in BBC
content that there’s ever been.

42

Annual Report and Accounts 21/22

750 teams across the BBC’s platforms
have chosen to measure and increase
the representation of women in theircontent. 61% of teams featured 50%
women contributors during 50:50
Challenge Month in March – up from
34% when they first joined the project.
For the first time, the BBC has also
published its progress on disability andethnicity representation.
There have been many stand out
examples of diversity on-air this year,
including Extraordinary Portraits
which paired artists and subjects fromacross the UK. The sitters included
those with disabilities, both seen andunseen, and paired subjects and artists
who had experiences in common –including those who been through thecare system, those who are LGBTQ
and those that shared a similar
cultural heritage. In Scotland, theinvestigative project Disclosure –Should I Say I’m Trans? was led by thetrans presenter Jax Sinclair on
BBC One.
In comedy too we have worked
hard to portray communities ina knowledgeable way – includingin The Scotts, which stars blind
comedian Jamie MacDonald in
the role of Uncle Ronnie, andin the award-winning Dreaming Whilst
Black with Adjani Salmon.
Authentic portrayal of the UK’s
diverse communities
The diversity of the BBC’s behind-thescenes talent, and telling of stories
from a wide range of perspectives, is
key to the delivery of content thatfeels authentic in
its portrayal of the UK’s diverse
communities.
The BBC Sounds Audio Lab aims
to amplify the next-generationof diverse UK podcasters andaudio creatives.

Return to contents

Telling our nations’ and ourcommunities’ stories involves
identifying a range of voices.
For example, Angels of the North
followed professionals in thebeauty industry in the North Eastof England as they adapted during
the pandemic. And in drama, Then
Barbara Met Alan told the story of
two disability rights activists who
led an unprecedented direct action
campaign – and was written bydisabled writers and featured a large
ensemble disabled cast. We havealso commissioned new programmes
from Theresa Ikoko and Candice
Carty-Williams, amongst others.
BBC Elevate is a scheme that aims
to progress the careers of mid-leveldeaf, disabled and neurodivergent
talent in the TV industry. In the lastyear, the scheme has supported
placements including an Assistant
Producer role on Two Doors Down anda Casting Producer on Eating WithMy Ex. BBC Three’s New Directors
Scheme is focused on developing
emerging talent, with successes
including the observational
documentary Defending Digga D.
Local representation
Throughout the BBC’s offering, we’ve
represented local communities all
across the UK. The drama Three
Families told the compelling real
stories of the families behind thecontroversial 2013 campaign against
Northern Ireland’s abortion law.
Villages By The Sea looked at theimportant historical roles villages
have played around the coast of
England. The latest series of Our Livesfeatured an episode entitled ‘The Cityof Horses’ which followed membersof the longstanding horsecommunities in Swansea.
Network portrayal – nations
and regions
The BBC is proud of its deep creative
connections that spread right acrossthe nations and regions of the UK. We
have made strong progress on ourcommitment to commission 100
portrayal titles that represent
communities in the nations andregions by 2024. This year they haveincluded Peaky Blinders – the launchof which brought a record audience –and Vigil which became the UK’s
most successful new drama launchin three years.

This year also saw a series of prime
time dramas from the North ofEngland that reflected a range ofreal-life experiences – from the thrills
and heartache of The Syndicate,to the workplace conspiracies
and tragedies of Rules of theGame. Martin Freeman’s morallycompromised role in The Responder
was a product of the BBC’s Northern
Voices Writersroom project.

The Outlaws

Elsewhere, the BBC has
recommissioned a second seriesof Hope Street, a daytime drama
series set in Northern Ireland, which
follows the ups and downs of thoseworking in the fictional seaside townof Port Devine police department,
and of the Welsh workplace drama
The Pact. We also broadcast threeseries set in the south west: Chloe,
Showtrial and The Offenders.

Actual on and off-screen diversity
Data provided from contributions by individuals who have a role in eligible programmes.

FemaleBlack, Asian and minority ethnic
Disabled
LGB
Transgender
Number of contributions*

Sector support
The strength of the creative economyof the UK is of central importance tothe BBC. In 2021, the BBC entered apartnership with the North East
Screen Industries Partnership (NESIP)with a commitment to invest at least£25 million of network televisioncommissioning spend in the region
over the next five years. NESIP has
committed £11.4 million to develop
skills, support new and growing
independent production companies
and establish a production fund forthe region.

*

Actualoff-screen
2021/22

Actualon-screen
2021/22

Actualoff-screen
2020/21

Actualon-screen
2020/21

54.5%
10.5%
7.4%
12.6%
0.2%
260,254

53.6%
27.9%
8.9%
12.9%
0.5%
78,493

55.0%
10.4%
7.0 %
11.9%
0.3%
230,582

54.8%
26.5%
8.2%
12.0 %
0.5%
73,878An individual may make multiple contributions to a programme or programmes

Perceived on-screen diversity
Data input by production companies taking a viewer’s perspective of what they see and hear.

FemaleBlack, Asian and minority ethnic
Disabled
LGB
Transgender
Number of contributions*% for whom diversity characteristics were determined*

Perceived
on-screen
2021/22

Perceived
on-screen
2020/2147.0 %
26.5%
5.4%
7.8%
0.1%
424,393
91.2%

46.7%
23.5%
5.9%
6.8%
0.1%
431,255
89.3%

An individual may make multiple contributions to a programme or programmes

Pan-BBC reach% of each audience group who use BBC TV/iPlayer, Radio or Online on average per week

Male 16+

Female 16+

ABC1 16+

C2DE 16+

16-34

35-54

55+

White 16+

Black, Asianand minority
ethnic 16+

Not Disabled
Disabled 16+ 16+

2021/22

90%

90%

92%

88%

81%

89%

98%

92%

77%

91%

90%

2020/21

91%

89%

92%

87%

80%

90%

98%

92%

77%

91%

90%

Not Disabled
Disabled 16+ 16+% of each audience group who think the BBC informs, educates and entertains people in the UK/themMale 16+

Female 16+

ABC1 16+

C2DE 16+

16-34

35-54

55+

White 16+

Black, Asianand minority
ethnic 16+

2021/22
Effective

66%

70%

75%

59%

64%

67%

72%

69%

62%

64%

69%

2021/22
Ineffective

16%

12%

12%

16%

13%

16%

13%

14%

17%

17%

14%

Not Disabled
Disabled 16+ 16+% of each audience group who think the BBC is effective at reflecting people like them

Male 16+

Female 16+

ABC1 16+

C2DE 16+

16-34

35-54

55+

White 16+

Black, Asianand minority
ethnic 16+

2021/22
Effective

51%

57%

58%

48%

50%

51%

59%

54%

47%

46%

55%

2021/22
Ineffective

26%

22%

23%

25%

24%

26%

22%

24%

27%

28%

24%

Source Compass by Ipsos MORI 16+ Ipsos MORI 16+

Return to contents

Strategic Report

43Delivering our creative remit
Public purposes

44

5

Annual Report and Accounts 21/22

Return to contents

Purpose 5: To reflect theUnited Kingdom, its culture
and values to the world
The following pages demonstrate how the BBC
works to inform, educate and entertain people
across the globe.

The BBC’s global services are a pricelessasset for the UK. Each week they carry thedistinctive culture, voice and values of thiscountry to an audience of 492 million
worldwide. The BBC remains the UK’s bestknown cultural export, with 60% awarenessacross the world, whilst over 50% of global
users say consuming the BBC makes themperceive the UK more positively.
The past year has repeatedly highlighted
the growing danger that disinformationand constraints on media freedom pose tosocieties and democracies worldwide – from
Covid vaccine conspiracy theories to theinformation war in Russia and Ukraine. The
latest World Press Freedom Index shows thatjournalism is completely or partially blocked
in 73% of the 180 countries it ranks, and thesituation is ranked as “very serious” in a record
28 countries. With our coverage of the
Ukraine invasion in particular, the BBC has
shown how much we can do to stand up for
integrity in news and promote democraticvalues worldwide.

Yalda Hakim reporting from Afghanistan

60%
The BBC remains
the UK’s best-known
cultural export, with
60% awarenessacross the world.
Source Tapestry Research

51%
51% of global users
say consuming the
BBC makes themperceive the UK
more positively.
Source Tapestry Research

The BBC’s position as one of the world’s mosttrusted and recognised media brands has
always had a vital role to play for the UK, ourcultural strength and our broader influenceabroad. It has become even more vital in the
global disinformation age.
Return to contents

Strategic Report45Delivering our creative remit
Public purposes

Ukraine and Russian services
As the Russian invasion of Ukraine
began, millions of people turned to
BBC News in Russian and Ukrainian
for independent, accurate
information. Audiences to the Russian
website more than tripled at the startof the war.

Purpose 5: To reflect the United Kingdom,
its culture and values to the world

In the face of Russian attempts toblock international news content, theBBC stepped up its efforts to reachaudiences however it could. The BBC
launched new TikTok channels, issued
advice on circumvention tools
enabling people to reach news
websites, offered BBC TV news
programmes free of charge to other
European TV networks, and launched
two new shortwave frequencies ofWorld Service English programmes.

492m

Up

1%

Global weekly reach
Including BBC Newsand BBC Studios.
Source BBC Global
Audience Measure

458m

1

No.

Afghanistan
BBC journalists have borne witness to
extraordinary and shocking times in
Afghanistan. Alongside tireless andbrave reporting from all of the teams
as Kabul fell to the Taliban camewider analysis about the country andits future, drawing on both expertiseand personal experience.

Ranked No.1 for Trustand Reliability
amongst international
news providers.
Source BBC Brand Tracker
2021 (ex UK)

Up

0.3%

130 m

Down

In her podcast A Wish for Afghanistan
Lyse Doucet interviewed Afghans,from presidents to poets, on how thelast 20 years shaped them and theircountry. BBC Pashto’s Sana Safi
presented Afghanistan and Me – adocumentary about how her own life
has been intertwined with the fate ofher country. Yalda Hakim carried out
some eye-opening interviews withsenior Taliban figures.

1%

BBC World Service
television weekly
reach
Non-English
languages.

BBC News
Total international
weekly audience.
Source BBC Global
Audience Measure

Source BBC Global
Audience Measure

365m

Up

0.3%

BBC World Service
weekly reach
Includes TV, radio,
online and social
media in English andother languages.

159m

Up

1%

BBC World Service
radio weekly reachEnglish and otherlanguages.
Source BBC Global
Audience Measure

Source BBC Global
Audience Measure

148m

Up

4%

BBC World Service
total digital reachEnglish and otherlanguages.
Source BBC Global
Audience Measure63%% of UK adults who
think that the BBC iseffective at reflecting
the UK to the world(ineffective 14%).
Source Ipsos MORI (UK)
16+

Above
BBC Pashto s Sana Safi,
presenter of Afghanistan
and Me / Ros Atkins On...
video explainers
Opposite page
A Wish for Afghanistan
podcast presented by
Lyse Doucet
46

Annual Report and Accounts 21/22

Return to contents

The BBC’s global
services are apriceless asset for
the UK. Each week
they carry thedistinctive culture,voice and valuesof this country to
an audience of 492
million worldwide

BBC World Service weekly reach across all platforms, by service
Ros Atkins
A series of explainer videos from Ros
Atkins outlining the background to
newsworthy topics was hailed for its
innovative approach to impartiality.
The videos became viral successes onsocial media, with millions of views.
Ros, the presenter of Outside Sourceon the BBC News Channel and
BBC World News, drew on video,
newspaper articles, and social media
posts to illustrate his succinct andscrupulously impartial explanationsof topics ranging from health topolitics to economics.

Covid-19
The Covid-19 pandemic continued
to dominate global headlines
throughout the year. BBC World
Service used all of its platforms,
across its 41 language services,
to educate and inform its global
audiences on subjects from the latest
scientific research to the very humancost of the pandemic.
Tackling disinformation about Covid
has also been a huge part of theBBC’s journalism, with expert teams
like BBC Reality Check and BBC
Monitoring exploring conspiracy
theories about the virus which tookhold around the world.

p.180
For the full list of statisticalinformation on Purpose 5

2021/22
Millions

Year-onyear change%

2021/22
Millions

Year-onyear change
%

92.5

1%

Russian4.7-13%

Afaan Oromoo

1.7

1%

Serbian1.0

19%

Afrique

20.9

10%Sinhala**

0.3

-65%

Amharic

2.0-2%Somali

5.7

0%Arabic39.2-6%

Swahili

27.6

11%

Azeri

0.4

25%

Tamil*

13.0-4%

Bengali

12.6

4%

Telugu9.5

2%

Brasil

9.2

-12%

Thai

1.4

-23%

World Service English

Burmese

7.1

1%

Tigrinya

0.4-6%Chinese2.2-18%

Turkish

3.0

-14%

Dari

4.8

8%

UK China

0.1

-18%

Gahuza2.0-0.4%

Ukrainian

4.2

4%

Gujarati

3.7

-17%

Urdu***

5.3

-42%

Hausa

16.8

-1%

Uzbek

3.5

19%

Hindi*

32.3

31%

Vietnamese

1.5

14%

Yoruba

6.3

9%

Igbo

1.8

-48%

Indonesian

5.6

-5%

Korean0.7

13%

Kyrgyz3.1-1%

Learning English

2.4

-20%

Marathi

5.4

12%

Mundo

12.6

-11%

Nepali

4.9

18%

Pashto10.6

2%

Persian

18.9

2%

Pidgin7.9-15%

Punjabi

1.7

7%

Return to contents

The Global Audience Measure is a measure of how many people
are consuming the BBC weekly for all services in all countries
across all platforms (television, radio, website and social
media) Key to this is de-duplication i e ensuring that a person
who consumes multiple BBC services or platforms or on
multiple devices is not counted many times in the top level
totals For example, BBC World Service television, radio andonline audience is less than the sum of its parts to ensure we do
not count people more than once when looking at the total
World Service audience* Adjusted figures in 2021 account for shortwave closure forthese services at the time Hindi 2021 reported 28 million,
2021 adjusted 25 million Tamil 2021 reported 13 6 million,
2021 adjusted 13 5 million Urdu 2021 reported 9 25
million, 2021 adjusted 9 24 million** Sinhala reach decline driven by radio closure for the service*** Urdu reach decline driven by loss of syndicated TV
distribution

Strategic Report47

Delivering our creative remit

Delivering value
for audiences

The BBC has continued to deliver high levels of audience value this year
in a rapidly changing media market.
This has been a year of strong
performance against our core audiencetargets, with 90% of UK adults using ourservices in 2021/22 on average per week.
Our targets were also exceeded for each of
the elements that contribute to the BBC
being a valued part of people’s media lives:
the regularity of interaction, the timespent and the number of BBC modes
that people use in an average week.

In the second year and focus of this report– 2021/22 – the impact on media continues.
Some pre-pandemic trends have re-emerged– overall broadcast TV viewing, for example,
is well down on both last year and preCovid times. As the pandemic accelerated
existing trends, SVOD viewing and news
online usage dropped versus locked down
2020/21 – but are still up on pre-Covid 2019.
Radio listening has increased year-on-year
as commutes and routines are restored.
The recent propositions of Disney+ and
TikTok are now among the top five video
providers for under 25s by time spent.

The media market over the past two years
As with every part of life over the past two
years, media usage has been substantially
impacted by the Covid-19 pandemic.

Now – in 2022/23 – with the cost of living
rising, new influences are emerging. Analysts
are predicting households will reduce thenumber of subscriptions they can pay for.

In the first year of the outbreak – 2020/21 –the lockdowns meant that overall broadcast
television viewing including the BBC – which
had been dropping since 2013/14 – was up.
Viewing of subscription video on-demand(SVOD) services such as Netflix, Amazon
Prime Video and Disney+ was super-charged.
Staying up-to-date amidst a global crisis
meant news consumption, especially online,
spiked. At the same time, disrupted daily
routines and fewer journeys led to a dip inradio listening.

How do we assess the performance of the
BBC within this evolving media landscape?
Looking at our performance in 2021/22 in
the wake of Covid, we continue to feel theeffects, like the rest of the market.
BBC viewing is down year-on-year, but lessthan the broadcast TV market overall. The
number of people using BBC News Online
weekly is down on Covid news-heavy

Media over the Charter period so far
-2%

72%

23%

41%
2017/18
2021/22
Have access to
SVOD services:% population

Use online
news:% adults

Use audio on-demand
services weekly:% adults

Use BBC
weekly:% adults 16+

Use BBC
weekly:% 16-34

The role of the BBC endures considering the extent of media change in the past five years
Source BARB Establishment Survey; Ofcom; RAJAR/MIDAS; Compass by Ipsos MORI

48

Annual Report and Accounts 21/22

Looking at our performance in 2021/22
by the targets we set, all but one havebeen achieved.
As part of our targets to ensure delivery ofvalue for all, 90% of UK adults used the BBC
on average per week during 2021/22 – in linewith our goal. This is similar to the 92%
weekly reach at the start of this Charter in
2017/18 despite the striking changes inmedia behaviour over this time. Adoption of
SVOD and audio on-demand services haveboth almost doubled since 2017 – thatmeans 26 million more people with access to
SVOD now and 12 million more adults using
audio on-demand products like Spotify.
As part of our focus on key audiencechallenges, an above-target 81% of 16-34s
used the BBC on average per week in
2021/22. This is steady over the past three
years despite the ferocity of competition.
This age group is very positive about ourdelivery of the mission and their rating of thepersonal relevance of the BBC is in line withthe target but they score us lower on thesethan older audiences.
Among under-16s, 73% used the BBC
overall and 53% used our children’s andeducation services on average per week in
2021/22 – both in line with targets. Our
performance is trending down though,especially among 7-12s, amidst the focus of
global media companies on under-16s.

45%

62%

79%

-7%

81%

+96%

87%

+16%

90%

+93%

92%

% change
2021/22 v 2017/18

2021/22 but up on pre-pandemic times.
Weekly usage of BBC Bitesize is now backto 2019/20 levels after the home-schoolingpeaks of 2020/21, and as examinations
return, more secondary school users are
crediting the service with helping themachieve better grades. BBC Radio listening
is up on Covid times but not over the longer
term while Commercial Radio is steadier,
aided by its expanded number of services
in recent years.

Return to contents

The BBC is the only UK provider to contend
with YouTube and Netflix among under 16s
and 16-34s. Our recently announced plans
re-invest £300 million towards a digital-led
approach, including shifting significant
amounts of money into new programmes
for iPlayer. We are focused on helping tomaintain the impact of UK content and PSB
for all ages, especially when an estimatedthree-quarters of the time UK audiences
spend with SVOD comprises watching US
titles, rising to near 80% for UK 16-24s.

Performance against 2021/22 audience targets
Ensure delivery of value to audiences overall

Among our online products, targets wereachieved for iPlayer, up on the year, andexceeded for BBC News Online. Sounds
achieved the ambition set for the number ofaccounts overall accessing the service weekly
but was shy of the target for accounts
belonging to 16-34 year olds. It has since
been meeting this goal in the early weeks of2022/23 though. To reflect our digital-firststrategy, from our next Annual Report we
will enhance performance reporting of BBC
digital services and their contribution to themission and purposes.

Source Compass by Ipsos MORI

Looking at the public’s assessment of ourperformance in 2021/22, this is theopinion that matters to us most.

Young adults

In 2021/22, 58 million people in the UKcontinued to use the BBC on average per
week. With the choices available today,
adults spent 17½ hours with us on average
per week. This compares with the lockdownboosted 18 hours of 2020/21 and 17¾ hoursof 2019/20. The creative draw and ability of
the BBC to bring us together endures: in
2021, 15 of the 18 broadcast TV dramatransmissions with an audience over ten
million were from the BBC, up from 2019
when eight dramas were over ten million,(all BBC). Adults’ average rating of value formoney stayed at five out of ten and general
impression at seven out of ten.

Source Compass by Ipsos MORI

Overall, 75% of UK adults rate the BBC as
providing a valuable public service for thepeople in the UK. The BBC is named mostoften when the public is asked to select theone provider that sets the standard for
media in the UK – well ahead of the next
nearest. But we are not complacent.

Signed-in reach of BBC iPlayer
Average weekly accounts signing into BBC iPlayer
Accounts overall

Every interaction will be increasingly
hard-won, with the strength of choice
available to all; fast-moving media trends,
now especially among older audiences;and the cost of living. We need to work
continuously to ensure we deliver somethingfor everyone. There are differences in how
well we serve different audience groups that
we seek to narrow. This is especially the caseamong those who are more likely to be fromless well-off backgrounds, people belonging
to ethnic minorities, people who are disabled
and younger people relative to theircomparative groups. There is also too muchvariation in performance in different parts of
the UK. We remain focused on improving
perceptions of impartiality.
As our recent commitments show, we haveset out our ambitions to build a digital-firstpublic service media organisation. This
Annual Report sets out how our Across theUK plans are already underway to reflect allparts of the country better as well as torepresent different voices and perspectives
more effectively. The implementation of our
ten-point action plan on impartiality is alsoin progress.
In the year ahead, we will build on successes
from 2021/22 and keep striving to serve thepublic better.

The reach of the BBC% of UK adults 16+ who use BBC TV/iPlayer, Radio or Online on average
per week
A valued habit with the BBC% of UK adults 16+ who use the BBC for 5+ days on average per week
Source Compass by Ipsos MORI

% of UK adults 16+ who use the BBC for 5+ hours on average per week
Source Compass by Ipsos MORI

90%
Target 85-90%

72%
62%
71%
Target 65-70%

Target 55-60%% of UK adults 16+ who use two or more BBC modes on average
per week
Source Compass by Ipsos MORI

Target 65-70%

Maintain focus on key audience challenges
The reach of the BBC% of UK 16-34s who use BBC TV/iPlayer, Radio or Online on average
per week
Personal relevance
UK 16-34s’ rating of ‘the BBC is for me’ (mean score out of 10)
Source Kantar Media

Under 16s

The reach of the BBC% of UK under 16s who use BBC TV/iPlayer, Radio or Online on average
per week
Source Kids Cross-Media Insight by Ipsos MORI

The reach of BBC Children’s/Education services% of UK under 16s who use BBC Children’s/Education services on
average per week
Source Kids Cross-Media Insight by Ipsos MORI

81%

Target 75-80%

6/10
Target 6/10

73%
Target 70-75%

53%Target 50-55%

Accelerate activity central to continued and future delivery of value to audiences

Source AT Internet/BBC Account data

Under 35 accounts
Source AT Internet/BBC Account data

12.1m

Target 12-12.5m

3.8m
01:00h:m
8 out of 10
Target 3.5-4m

BBC iPlayer time spent per head per week
Average weekly time spent per head per week
Source Deduplicated viewer mins modelled from BARB/AT Internet

Rating of BBC iPlayer
Weekly users’ rating of BBC iPlayer (mean score out of 10)
UK adults 16+ weekly users
Source YouGov

UK 16-34 weekly users
Source YouGov

Target 1 hour

Target 8 out of 10

8 out of 10
3.8m
Target 8 out of 10

Signed-in reach of BBC Sounds
Average weekly accounts signing into BBC Sounds
Accounts overall
Source AT Internet/BBC Account data

16-34 accounts
Source AT Internet/BBC Account data

Target 3.8-4.1m

0.57m
34%
Target 0.6m+

Reach of BBC News Online% who use BBC News Online on average per week
UK adults 16+
Source Compass by Ipsos MORI

UK 16-34s
Source Compass by Ipsos MORI

Target 30%+

33%
Target 30%+

p.168
For more information on the BBC’s performance please see the performance data packs

Return to contents

Strategic Report49Delivering our creative remit
Engaging with audiences

It’s never been more important for
the BBC to deliver value for all – andour strategy is underpinned by a
deep understanding of audiences
across the UK.
The BBC has many ways to gather
audience insight and feedback– and it uses this intelligence toinform decision making acrossthe organisation; through content
commissioning, journalism,
digital product development,
marketing and beyond.
The sources we draw on range fromthe observational – through media
measurement and digital analytics, tomore reflective insight – where we ask
the UK for their considered view ofwhat they value from the BBC. Thesesources include:— industry-leading measurement of
the UK’s media choices across all
platforms (TV, Radio, Online)— continued investment in the UK’s
media measurement currencies— deep digital analytics: witha comprehensive digital data
set helping us to understandhow people are using ourdigital products— regular surveying and polling tounderstand UK attitudes andresponses to our offer— daily contacts from our audience– with more than 630,000
webforms, emails, letters and calls
to our contact centres each yearof television content they enjoy, plus
topic-specific sessions including
climate change, the cost of living andauthentic on-screen portrayal.

Collectively, this data helps us tobuild a rich understanding of life
across the UK; but we also know that
nothing beats meeting our audience
in real-life – and for this reason we’vedeveloped an organisation wide
programme of audience engagement(‘BBC Virtual In Person’) – whichallows us to regularly connect our
staff with members of the public.

The VIP sessions enable us to talk to
people in their own homes, meaning
they are more comfortable andconfident about voicing their honest
opinions about BBC content,
products and services. Furthermore,
we are able to talk to audiences fromall four corners of the UK, fromdifferent ethnicities and social
backgrounds and both young and old,much more easily than in the past.

Before Covid this type of activity wasdelivered face-to-face, however, after
delivering sessions online throughout
the pandemic, it became clear thatworking ‘virtually’ was a very
impactful and cost effective way oftalking to audiences from across theUK. BBC Virtual In Person (VIP) was
created at the start of the firstnational lockdown – and offers a
programme of live, video discussions
between audience members and BBC
staff, that are observed by content
makers, journalists, senior leaders
and board members.

Sessions have been attended bymembers of the BBC Board, the BBC
Executive Committee, the BBC
Nation’s Committees and the Senior
Executive Group, along with decision
makers from News, Content, Nations
and other corporate areas.

Over the past 12 months we have run
122 individual Virtual In Person
sessions where 3,192 BBC attendees
have met 738 audience members.
We have talked to them about a wide
variety of subjects, from local andnational news stories, local andnational radio, podcasts, the types

Virtual in Person
participants
50

Annual Report and Accounts 21/22

Return to contents

OPERATIONALREPORT
p.52

p.59

p.65

p.68

Chief Operating
Officer’s review

Our people

Pay Gap Report

Consultations

p.69

p.73

p.74

Sustainability

Charitable work

Partnerships andcollaboration
Return to contents

Strategic Report51

Operational report

Chief Operating
Officer’s review
As this reportdemonstrates our key
focus is to provide value
for all audiences. We
continue to build adigital-first BBC in orderto deliver this ambition
in a changing world.

Key Headlines for 2021/22
Licence fee income£3,800m
2021/22: £3,750m

Commercial income£1,718m
2021/22: £1,384 million
Cumulative savings£1bn

delivered since 2016/17
Industry leading overheads
Within5%of the public service cost base52

Annual Report and Accounts 21/22

Ensuring the licence fee remains value foraudiences is our key priority – at just 44p
per day we continue to deliver world-classcontent and services to our audiences.
We end the year in a financially strong
position with a group surplus of £206
million. As a result of careful control of our
finances and operations and the delivery ofsavings initiatives and inflation mitigations,our public service cash reserves at 31 March2022 are £573 million. Licence fee income
reached £3.8 billion, demonstrating thecommitment of audiences to pay the licencefee. We invested £3 billion in content anddigital services, delivering high-quality
programming and services to audiences
including coverage of major sports events
including the 2020 Tokyo Summer Olympics
and the European Football Championships.
Increasing commercial income is one of ourfour key priorities, alongside a renewed
commitment to impartiality, a focus on
unique, high-impact content and extracting
more value from online. This year we saw
record performance in our commercial
subsidiaries with BBC Studios exceeding
their target of £1.2 billion returns to the BBCGroup with their highest-ever in-year returns
totalling £353 million. The Commercial
Group achieved 24% growth in income to£1,718 million and 57% growth in EBITDA
to £226 million.

Return to contents

We plan to build on the successes of ourcommercial operations, taking advantageof the growing demand for high-quality
content. The reformed Commercial Board
will assist by increasing our attention on
growth and long-term value.
In January 2022, the Secretary of State for
Digital, Culture, Media and Sport announced
the licence fee settlement until the end of
the Charter. The licence fee will be frozen for
two years from 2022/23 and then rise in linewith CPI inflation for the following four
years. As a result, we anticipate annual
savings of £285 million will be required by
2027/28 to mitigate the loss of inflationary
increases to the licence fee over the next
two years. This comes at a time of highgeneral economic inflation and industry
super-inflation (where competition for
limited production resources is driving up
content prices at a faster rate than in the
broader economy) in the extremelycompetitive media landscape, which we
continue to monitor closely.
However, we have a proven track record forsavings delivery and will continue to identify
mitigating savings as risks materialise. In
2016, in response to the 2015 licence fee
settlement, the BBC started a programmeof savings and reform targeting £800
million ongoing savings by 2021/22. This
year we successfully delivered an additional£274 million of in-year savings bringing

total savings at the end of the plan to£1,029 million, including £38 million of
one-off savings. The NAO’s review of savings
and reform in December 2021 concluded
that we have consistently delivered savings
over the past decade. This recognition ofsavings delivery to date is welcomed and wewill continue to seek further opportunities
to deliver efficiencies in the future. We
continue to maintain our industry-leading
overhead rates, within 5% of the public
service cost base, putting us in the top
quartile for comparable organisations.
We are committed to a leaner, more
efficient BBC. The pandemic presented
an opportunity to reshape and simplify
the structure of the BBC as we initiateda voluntary redundancy programme
and recruitment pause for non-businesscritical roles. We continued to see theimpact of these actions this year and,along with savings initiatives, our public
service full time equivalents at 31 March2022 reduced by 409 year-on-year to
17,781. As part of the BBC’s plans to
support levelling up across the UK, wehave committed to growing the number ofapprentices to 1,000 by 2025. In February
2022 we opened our first apprentice hub,a new initiative creating a wide range ofcreative and digital opportunities basedin and around the West Midlands.
We successfully dealt with the challenges
presented by the Covid-19 pandemic
with the safety of our colleagues being
paramount. Along with the rest of the
UK creative industry, Covid significantly
disrupted our operations and materially
impacted our plans and finances in
2020/21. Government lockdowns led to
production delays and postponement oflive and sports events. We continued tosee an impact in 2021/22 as strict healthand safety protocols and social distancing
requirements remained in place, resulting in
additional costs. We also incurred additional
spend for delayed major sports eventsand production spend from 2020/21.

On behalf of the whole Executive
Committee, I want to thank all of our staff
for the extraordinary flexibility, dedication,and resilience they have shown. I am
enormously proud of the outstanding
content, creativity and innovation that
our teams both deliver and enable everyday. I would also like to add my personal
thanks to our suppliers and contractors who
have continued to support our operations
and output throughout this period.
This report provides detail on BBC Group
performance over the past year and specificmatters such as pension contributions, tax
and the continued delivery of efficiencies.
We also set out detail on the support weoffer to our people; our core staffing metrics;
a summary of our equality information
reporting; and our pay gap reporting.
Information on our support for charitablegiving can be found on page 73, along withhow we have engaged with audiences (page50) and partners (page 74). We report on
our progress against environmental
sustainability targets on page 69.
Looking ahead, we are in a financially strong
position to withstand continued financialpressures and mitigations are in place tomanage the first year of the licence fee
settlement and increasing inflation in themarket. Over the coming year we must
continue to carefully manage our operations
and finances to ensure long-term financial
sustainability. We will continue to look for
new ways to transform the organisation andbecome more efficient. Our focus remains
to fulfil our strategic ambitions, whilstdelivering value for all audiences.

Leigh Tavaziva
Chief Operating Officer
23 June 2022

After experiencing a second full year of the
response to the Covid-19 pandemic, the BBC
has started to move to new innovative ways
of working; this has been done in conjunction
with responding to several international
crises. We have carefully withdrawn the
majority of our people from Afghanistan
and Ukraine and have set out further
contingencies to support our colleagues
in our Moscow Bureau. Throughout these
events, we have managed to continue toreport independent and impartial coverage
to millions of people safely and securely.

Return to contents

Strategic Report53

Operational report
Our finances
Through careful management of our
finances, we end the year in a strong
financial position to help to mitigate thefinancial challenges presented by the
recent licence fee settlement in 2022/23.
IncomeWe continue to see a strong commitment
from audiences to pay the licence fee.
Paid-for licences in force have increased
year-on-year. However, following the
expiry of the general notice, put in placeas part of the transition to the new over 75
policy, overall total licences in force havedeclined. The annual licence fee increased
by CPI inflation from £157.50 to £159.00
in April 2021. We collected £3.8 billion
of licence fee income during the year, an
increase of 1% compared to 2020/21. The
recent licence fee settlement determinedthat the licence fee will remain at £159.00
until March 2024, rising by inflation for
the following four years. Further detailon licence fee income can be found innote B2 of the financial statements.
Other income includes the contribution of
our commercial operations and third-party
sales income. Other income increased
year-on-year by 16% to £1,530 million,
driven by a year of significant commercial
growth despite Covid causing ongoing
disruption and uncertainty, and intensecompetition in the market for talent andcustomers. BBC Studios achieved record

sales as a result of increased production
revenues, content sales topping £400 million
for the third consecutive year, UKTV
experiencing record audience share in 2021,
and significant advertising revenues as themarket recovered from Covid.
In light of the escalating situation in Ukraine
and increasing demand for fact-based
impartial journalism, the BBC World Service
received additional funding of £4 million
from HM Government. The funding is
helping to create content to counter
disinformation and to continue delivering
impartial and accurate news coverage in
Ukraine and Russia via a range of channels.
Licence fee collection
Effective financial management is a key partof the BBC’s unique relationship with ouraudiences. This includes spending thelicence fee efficiently and collecting a
television licence fee from everyone who isrequired to purchase one. The collection of
the licence fee is underpinned by a legal
requirement to buy a licence if watching or
recording programmes as they’re being
shown on TV; viewing live streams via an
online TV service; or by downloading or
watching BBC programmes on iPlayer (live,
catch up or on-demand).
The BBC has a number of contractual
arrangements covering the collection,
administration and enforcement of the

1% increase in licence fee income
24% commercial income growth£3 billion investment in high-quality
content and expansion of digital services
Over 95% of public service spend
directed to content and its delivery£1 billion of savings delivered since
2016/17
Cash reserves help manage the first yearof the licence fee settlement

licence fee, marketing, payment channel
management and retail networks.
The majority of the administration iscontracted to Capita Business Services Ltd.
We are now in the tenth year of the current
collection contract, which has been
extended by a further 5 years from
July 2022.
The current collection method remains fair,effective and good value for money. We offer
a variety of payment methods including
instore, by telephone and online. We
continue to support those in financial
difficulty by offering the Simple Payment
Plan, a flexible payment scheme thatspreads the cost of the licence fee over

Income Statement
Income statement

What is it?

2021/22£m

2020/21£m

Licence fee income

The total of licence fees collected

3,800

3,750

Other income

Commercial income and grant income

1,530

1,314

5,330

5,064

(5,231)(4,799)

25

25

124

290

Total income
Operating costs

The cost of producing all content and of
running the BBC

Share of results of associates andjoint ventures

Our share of the profit of businesses
where we control 50% or less

Operating surplus
Gains on disposal

Profit/loss on disposal of operations
and fixed assets

28

(1)

Other losses

Net loss on movements in financial
instruments

(13)

(2)

Net financing income/costs

The net interest on the BBC’s pension
assets and liabilities, interest on loans
and fair value movements onderivatives
The net tax credit for the year

47

(74)

20

14

206

227

TaxationGroup surplus for the year

54

Annual Report and Accounts 21/22

Return to contents

What has happened?

1% increase due to CPI increase
and commitment of audiences to
pay the licence fee
Record commercial performance
has led to a 16% increase inincomeIncrease in spend due to a strong
year of content delivery andcommercial growth
Results include BritBox
International and BBC America

Includes Llandaff property sale anddeemed disposal of House
Productions Ltd
Reflects changes in the fair valueof derivatives and exercised put
options
Net gain on financial instruments
as a result of favourable market
movements.
Includes high-end television tax
credits, partially offset bycorporation tax charges

reserves to accommodate the timing of
cash flow for day-to-day operations.

How your monthly licence fee is spent
2021/22 £13.25 per household (2020/21: £13.13)

TelevisionRadio

2021/222020/21

£7.29
£2.09

£6 42
£2 29

Online

£1.27

£1 32

BBC World Service
Other services andproduction costs

£1.30

£1 28

£0.72

£1 10

£0.58

£0 72

Licence fee collection
and pension deﬁcit cost

12 months. In August 2020, we successfully
began collecting the licence fee from eligible
over-75s. Free licences were previously
provided by the Government, however, theprovision passed to the BBC as part of thelast licence fee settlement. Free TV licences,
funded by the BBC, remain available toanyone aged over 75 who is in receipt ofPension Credit*.

This statement sets out the amounts
collected and paid over to HM Government
during the year. Alongside their audit work,
the National Audit Office examines ourcollection arrangements and reports onthem to Parliament. More on the licence feerevenue statement can be found at:
tvlicensing.co.uk/about/bbc-truststatement-AB21.

A fire at a TV transmitter in the North Eastof England in August 2021 impacted TV andradio services for a number of viewers in thearea. Licence fee payers who were unable toreceive Freeview TV coverage for more than
one month were able to claim a partial
refund or an extension to their TV licence.

Content spend
We invested £2,956 million in content spend
in 2021/22, an increase of 17% year-on-year.
Production activity was severely disrupted by
Covid in 2020/21 with productions paused
for a number of months and additional healthand safety protocols in place to ensure
the safety of our teams. As a result somespend intended for 2020/21 was delayed
to 2021/22. We also incurred costs for the
postponed 2020 Tokyo Summer Olympics
and European Football Championships.
Although Covid restrictions were relaxedduring the year, we continue to see an impact
on productions as we operate within strict
guidelines, which increases costs. During
the year we made significant investment in
new content for audiences, funded by cash
conserved in the early years of the licencefee settlement and by ongoing savings plans.

Licence fee statement
We prepare an annual licence fee revenue
statement which is audited by theComptroller and Auditor General.
*

Licence holders who are over 75 and resident in an ARC
scheme with Preserved Rights are also eligible for a freelicence For the Crown Dependencies, equivalentarrangements were put in place, starting from
1 January 2021, based on local benefits

How we use the licence fee
The way in which the BBC is funded
places significant responsibilities on
the organisation:— to ensure effective and efficientcollection of the licence fee;— to maximise funding from othersources in a manner consistent
with the terms of its Charter andother obligations;— to provide value for money byfocusing expenditure on the
programmes and services the public
most want from the BBC; and— to ensure that the output isthen delivered as cost efficiently
as possible.

We continue to carefully manage our spend
to ensure that we invest available resources
into high-quality content and services. Our
overhead rate continues to be within 5% of
the public service cost base and therefore
over 95% of our spend is directed to content
and its delivery.
Cash and net debt
The public service cash balance at
31 March 2022 was £573 million. Thisis an increase of £308 million on theprior year driven by delivery of savings
initiatives, including one-off savings, andthe timing of spend. Our cash reserves put
us in a strong financial position to manage
through the first year of the licence fee
settlement, whilst retaining sufficient cash

Return to contents

Our borrowing limits are set by the
Department for Digital, Culture, Media andSport (DCMS). At 31 March 2022, our net
debt was £1,199 million, which was wellwithin our borrowing limits of £2,750 million,
which includes £2,200 million specifically forleases. The BBC Group is finalisingarrangements with HM Government toincrease the borrowing limit for the BBC’scommercial arm to £750 million (excluding
leases) over time. This will allow BBC
Studios, as the BBC’s principal commercial
subsidiary, to invest in growth initiatives tobuild commercial income. Further detail on
our borrowings can be found in notes G2 andG3 of the financial statements.
Commercial subsidiaries
One of our four key strategic priorities
is to build our commercial income. Ourcommercial activity will become increasingly
important in the future as we expand ouroperations to achieve the highest possible
returns to the BBC Group. Effective from
1 April 2022, our newly formed BBC
Commercial Board (formerly BBC
Commercial Holdings Board) will oversee
the delivery of our ambitions with a focus
on driving growth by bringing together
additional commercial, financial and digital
experience from the newly appointed board
members. The BBC Commercial Group
achieved an EBITDA (earnings before
interest, tax, depreciation and amortisation)of £226 million, compared to £144 million
in 2020/21.
BBC Studios, the BBC’s main commercial
subsidiary, experienced strong growth overthe past year as the business recovered fromthe pandemic. BBC Studios recorded incomeof £1,630 million, an increase of 30%
year-on-year, resulting in a 50% increase in
EBITDA to £226 million. BBC Studios
became responsible for the management of
BBC Global News on 1 July 2021, aligninginternational commercial activities undersingle leadership, enabling a holistic
approach to international audiences. To
capitalise on our UK production model, BBC
Three in-house activity transferred to BBC
Studios on 1 April 2021, and BBC Children’s
Productions Limited transferred to theStudios Group on 1 April 2022. BBC Studios
continues to drive value for money to licencefee payers through high quality programme
production and distribution and its financial
contribution to the BBC Group.
BBC Studioworks provides studio and edit
facilities to the BBC and a large number ofexternal clients. BBC Studioworks delivered
EBITDA of £8 million, a £2 million increaseyear-on-year. Covid impacted the utilisationof studio space in the first half of 2020/21.

Strategic Report55

Operational report
Our finances continued
By creating Covid safe working
environments, activity increased in thesecond half of the year and this continued
in 2021/22. Additionally, further easing ofsocial distancing and lockdown measures
helped to drive growth.
More information on our commercial
performance this year can be found on
pages 75 – 82.
Dividends
During the year BBC Commercial Limited
declared and paid a dividend of £144 million
to the public service (2020/21: £73 million),as a result of the strong performance of
BBC Studios.
BBC Studios achieved their highest-everlevel of returns to the BBC at £353 million,
more than doubling that of the previous
year (2020/21: £137 million). As a result, thebusiness has exceeded its target of £1.2
billion in returns to the BBC over the first
five years of the current Charter, deliveringsignificant investment in programming. BBC
Studios has committed to grow this total
by a further 30% to a new target of £1.5
billion in the five years from 2022/23. BBC
Studioworks also provided their highestever returns to the BBC of £3 million.
Pension costs
We are currently reviewing our future
pension provision, with the aim tounderstand how we might reform ourpensions to ensure that the BBC provides
a fair and consistent pension provision
to all employees, whilst offering value
to licence fee payers. Spending on
pensions has increased significantly inrecent years and this trend is expected
to continue, putting increasing pressure
on the licence fee. We will work closelywith employees and unions in shaping our
future pension provision. Any changes
proposed will not be implemented before
2024 at the earliest and will only impact
future benefits from that date onwards.

The most recent triennial actuarial
valuation, as required by law, wascompleted in June 2020 and showed afunding shortfall of £1,138 million as of
1 April 2019. A repayment plan was agreed
between the BBC and the Pension Scheme
Trustees which runs until 31 December
2028. In 2021/22 the BBC paid £173
million into the Pension Schemes. The
next formal actuarial valuation, performed
as at 1 April 2022, is currently underway
and will appraise the pension fund’s
assets and liabilities based on a range offinancial and demographic assumptions toensure the scheme is adequately funded
to meet its liabilities going forward.
Accounting standards (IAS 19 Employee
Benefits) require an annual accounting
valuation to be performed, which at
31 March 2022 resulted in a surplus of£1,241 million (2020/21: £190 million). Thisvaluation does not impact the actual cash
cost of recovering the actuarial pension
scheme deficit and therefore does not
impact the repayment plan currently
in place. The accounting valuation only
provides an accounting ‘snapshot’ at
the year end and is sensitive to shortterm market fluctuations, which is why itdoes not impact the repayment plan or
the pension benefits for members. The
accounting valuation often presents a morefavourable funding position due to thediscount rates that are required to be used.
Tax strategy
We are committed to paying the rightamount of tax at the right time in all
the jurisdictions in which we operate,
including but not limited to employment
tax, VAT and corporation tax. We
recognise the importance of paying theright amount of tax for the communities
in which we operate and take our tax
compliance obligations seriously.
We manage our tax affairs within theframework of the taxes legislation for the
UK and the other jurisdictions in which we

Commercial subsidiaries
BBC Studios EBITDA

BBC Studioworks EBITDA

2020/21: £151 million

2020/21: £6 million

£226m

£8m

EBITDA is derived from reported operating profit, adding back production tax credits (following market practice for
production companies), depreciation and amortisation (with the exception of amortisation relating to distribution rights orprogramming) The depreciation and amortisation that is added back includes any impairments or write-downs of assets
We believe that ‘EBITDA’ is the non-statutory measure of financial performance that best provides guidance to help
understand performance on a comparable basis year on year The intention of this is to illustrate an underlying profitability
that can be benchmarked relatively easily and gives a reasonable base from which to link through to cash flow measures

56

Annual Report and Accounts 21/22

Return to contents

operate. The BBC has a low tolerance to tax
risk, as demonstrated by our attitude to tax
planning and governance. Our assessmentof tax risk considers not only the financial
amount at stake, but also the reputational
consequences of the matter in question.
In 2021/22 we recognised a net tax credit of£20 million (2020/21: £14 million) as a resultof high-end television tax credits, which vary
year on year, partially offset by corporation
tax charges. We publish our tax strategy inaccordance with the Finance Act 2016, which
can be found on our website: bbc.co.uk/
aboutthebbc/documents/
bbctaxstrategy 2022.pdf
Delivering efficiencies
Our goal is to ensure that the organisation isrun efficiently and effectively in order todirect as much funding as possible towards
content for our audiences. As identified in
the NAO’s review of savings and reform in
December 2021, we have already madesignificant progress in reforming the BBC. In
2021/22 we delivered £274 million of in-yearsavings. This takes our total savings delivered
since 2016/17 to £1,029 million, including£38 million of one-off savings, exceeding ouroriginal target of £800 million.
In the early years of the plan, savings werefocused on productivity efficiencies, tomaximise our spend on content. As a result
we reduced our overheads to industry
leading levels at just 5% of the PSB costbase, placing us in the top quartile forcomparable benchmarked organisations.
Savings have been delivered throughproduction and operational efficiencies,
restructuring and careful management ofcontracts. In response to the pandemic we
identified new efficiencies including changes
to our ways of working and making betteruse of technology allowing us to reduce ourproperty footprint and create a more
dynamic workplace.
Content
As demand for high-quality content grows,
the media industry is experiencing increasing
competition causing the cost of talent andcontent to rise faster than inflation. Thisputs intense pressure on our commissioning
budgets. In order to continue delivering
impactful content and value for audiences,
we strive to make content delivery savings
through careful management of production
pipelines and reprioritisation of spend awayfrom low performing programmes into newoffers to the audience. Super-inflation todate has been addressed by managing costs,
increasing third party investment andsecuring more favourable cash flow termswith producers.

Property
We remain intent on creating modern andefficient working environments for our staff.
Reducing our property estate is an
important aspect of our business strategy.
In the last five years we exited a number ofproperties, reducing the size of the portfolio
by more than 22,000m2 . Additionally we areconsolidating existing London sites, which is
expected to reduce our footprint by afurther 16,000m2 in 2022/23. This will beachieved as part of the Across the UK
strategy with the goal to balance BBC
activity in each of the UK’s nations andregions to represent the diversity of ouraudiences. The strategy includes
transferring News and Radio teams to newbases in Salford, Leeds, Glasgow and Cardiff,launching new TV commissions andproductions in the UK regions, andsupporting regional initiatives to growkey skills and talent.
Reducing the estate also helps us to achieve
our net zero commitments. Fewer, more
efficient, buildings will reduce our emissions.
Investment is targeted at making ourbuildings more sustainable and reducing
energy consumption such as initiatives toreduce our carbon footprint with newchillers, LED lighting and Photovoltaic
power generation where appropriate.
Procurement
Global events continued to place astrain on supply chains during the year,
increasing the risk of supplier failure.
We closely monitored the stability andcapacity of our key suppliers and, where
necessary, responded quickly to ensure
there was no interrupted supply.

Whilst there was a recovery in third-party
expenditure, especially in content-relatedareas, the demand for goods and services
continued to be depressed, ending the year
0.3% down. Despite this, savings of £54
million were secured on the purchase ofgoods and services in 2021/22, and suppliers
played a key role in operationally supporting
the events in Afghanistan and Ukraine.
Technology
We delivered £45 million of savings acrossthe technology portfolio in 2021/22. The
ongoing pandemic resulted in continued useof remote working solutions, along withassociated benefits, by reducing technology
consumables such as telephony and printing.
We also kept working on rationalising theconnected network, which offered additionalsavings this year.
The transformation of our technology andengineering operations started towards theend of the year, with opportunities identified
to streamline our services whilst keeping the
BBC on-air and online 24/7 and adaptableto new technologies. It also allows us tocontinue re-prioritising funding andworkloads to support the digital strategy of
the BBC. In the year ahead we will continue
to invest in and develop our digital services,
including improvements in personalisation
and user experience, and building criticalcapabilities such as data science andmachine learning.

Efficiency savings

Eﬃciency savings (£m)

In-year savings

1,029

£274m

890

2020/21: £272m

Cumulative savings

618£1,029m
2020/21: £890m

419

Savings delivered in 2021/22:— Production efficiencies, remixing and reprioritisationof programmes— Renegotiation of contracts

2021/222020/212019/20— Operational efficiencies

2018/19— Headcount savings and staff efficiencies

2017/18— Flat pricing and third-party investment

254— Better cash flow terms with producers

Cumulative savings delivered
Cumulative savings reflect both ongoing and one-off savings delivered in year

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Strategic Report57

Operational report
Public Service Broadcasting expenditure
The table below illustrates how licence fee funds have been spent during the current and prior year, including the Charter requirement for the
BBC to report on expenditure on the UK Public Television Services by genre (as defined in accordance with industry standards). Total content
spend represents the cost of making content across the BBC’s services. The total service spend represents the full cost of producing,supporting and delivering BBC content to audiences.
World Service Operating Licence
The BBC committed to protect its annual spend on the World Service for a period of five years from 1 April 2017 to ensure it remains a valued
public broadcaster for the future. Including content, distribution, general support costs and spend incurred on World News TV, £277 million(2021: £251 million) was spent on the BBC World Service Operating Licence.
World Service grant funding
In 2016/17 the Foreign, Commonwealth & Development Office (FCDO) awarded a grant to the BBC of £291 million, to be spent over thefollowing four years, to assist in the expansion of the World Service. In April 2022, following the conclusion of the 2021 Government spending
review, the FCDO confirmed further investment in the World Service of £283 million for the three years to March 2025. In response to theinvasion of Ukraine, the FCDO provided additional funding of £4 million to help deliver independent and impartial news coverage in Ukraine
and Russia, countering disinformation.
PSB expenditure2021/22£m

2020/21
£m

314
235
31
376
214
94
90
431

310
216
30
289
182
49
74
251

1,785

1,401

Radio

477

474

BBC Online and Red Button

247

236

Content spend on services by platform

2,509

2,111

Orchestras and performing groups
S4C (service spend)
Development spend
BBC World Service grant
BBC World Service Operating Licence*

25
24
58
97
243

23
21
61
88
214

Other service spend

447

407

Total content spend

2,956

2,518

185
395
158

191
404
161

3,694

3,274

122
75
4
50
183
13

136
75
4
63
159
102

4,141

3,813

(70)

(54)

4,071

3,759

News and Current Affairs
Factual and Learning
Arts and Music
Film and Drama
Entertainment and Comedy
Sport Production
Children’s
Other television content spend
Television services by genre

Distribution costs
Content and distribution support
General support
Total service spend
Licence fee collection costs
Other obligations (S4C)
Monitoring
PSB Group pension deficit reduction payment
Costs incurred by PSB to generate non-licence fee income
Restructuring costs
Total PSB Group expenditure
Items reported outside of operating expenditure**
PSB Group expenditure* The BBC World Service Operating Licence includes distribution spend of £30 million (2021 £33 million)** In order to reflect the full cost of the PSB Group expenditure by service certain costs are included above which are reported outside of operating expenditure For example, financelease interest is included to reflect the full cost of property, although it is not included in the Group operating expenditure

58

Annual Report and Accounts 21/22

Return to contentsOur people: working at the BBC
Whilst the challenge of coronavirus
remained ever-present in 2021/22, wehave nonetheless made significant
progress in delivering changes to our
workforce, our ways of working and our
culture in line with our Value for All
strategy. We continue to support all
Divisions and the organisation as a wholeto build a modern, inclusive BBC. All of
this has been delivered while supporting
staff through critical news coverage in
Afghanistan, Ukraine and Russia.
Reshaping our workforce
Throughout 2021/22 we have worked withall Divisions on workforce planning tosupport their change and restructuring
programmes and their plans to achieve their
50:20:12 targets. Those targets are to createa gender balanced organisation, with at least
20% black, Asian and ethnic minority staff
and at least 12% disabled staff.
All Divisional workforce plans are based on
three BBC Group principles:— transforming our approach to recruiting;— a more robust approach to succession
planning;— a commitment to increase apprentices(internal and external) to 1,000 by 2025
We set out our new Talent Acquisition
strategy in March 2022, centred aroundproactive talent sourcing, greater
consistency and improved capability within
our resourcing team.
We have agreed a long-term talent andsuccession strategy and completed the firstphase, including building succession plansfor critical roles. We are working with the
Executive Committee as a group andindividual Divisional and HR Directors toreview our talent pipelines. Our approach isfounded on the principle of inclusivity and isdesigned to improve the diversity of our
succession plans through a number ofactivities including developing specific andtailored development plans. The approach isaligned to the Accelerator programmedetailed below.
We have achieved our first year target togrow our apprentices to 1,000 by 2025,
contributing to the BBC’s ambitions toincrease equality of opportunity across the
UK. We have worked with each Division tocreate space for apprentices, refreshing theDivisional workforce and addressing key
skills gaps. This year our Early Careers teamare managing over 30 different
apprenticeship standard schemes and over
260 Early Careers apprentices across theorganisation. The 21/22 Early Careers
Apprenticeship cohort has a diversity profile
of 61% female, 23% black, Asian andminority ethnic and 15% disabled staff.

Our application to the Education and Skills
Funding Agency (ESFA) to set up an
Apprentice Hub in the West Midlands wasapproved in January 2022. The BBC
Apprentice Hub is a brand-new initiative
creating apprenticeship opportunities in awide range of creative, gaming, cultural anddigital businesses based in and around theWest Midlands. In February 2022 we signed
our first employer contracts and our Hubsite went live, advertising for 20 apprentice
roles on six different apprenticeshipstandards: bbc.co.uk/apprenticehub.
Our apprenticeship opportunities are also
open to BBC staff, and in February 2022 werelaunched our internal staff apprenticeshipprogramme, as part of our comprehensive
career and leadership development
strategy. Staff were offered the chance
to gain qualifications in many areas, suchas Business Administration, Broadcast
Systems Engineering, Data Science,
Digital Products, Finance and Production
Management (designed either by the BBCor with other commercial and governmentorganisations). Successful applicants
spend at least 20% of their working timein training, either in an academic setting,or using guided virtual e-learning.
We are committed to reducing the public
service headcount to create a leaner more
efficient organisation. In response to thepandemic in the prior year we paused
recruitment for non-business critical roles
and initiated a voluntary redundancy
programme with the intention to deliver
savings quickly in the face of the growing
financial challenge. This created an
opportunity to reshape and simplify the
structure of the BBC, and this strategy
continued into 2021/22.
The BBC group average full-time
equivalents decreased to 21,125 in
2021/22, a year-on-year reduction of156. When comparing the number of
employees at 31 March, the group full-time
equivalents reduced by 241 to 21,252.
There were further leavers in 2021/22
through the voluntary redundancy schemeand other savings initiatives, resulting in a
total decrease of 409 full-time equivalents
year-on-year with the public service
headcount at 17,781 at 31 March 2022.
More detail about our people and headcountcan be found on page 62.
Career development and leadership
Through our learning and development
team, the BBC Academy, we continue tosupport the BBC’s workforce in acquiring theskills they need to develop their careers
through a wide range of formal and informal
learning interventions (see page 6 for moredetail). As well as supporting BBC staff andfreelancers the Academy has provided

Return to contents

learning opportunities for the wider creative
sector through a variety of events,
conferences and partnerships.
This year we have significantly enhanced our
career development offer for staff. We
launched the myCareer site, which provides
a one-stop shop for all support, resourcesand opportunities to enable staff to thrive at
the BBC and to develop broad and fulfilling
careers. There have been over 70,000 viewsof this site since it launched in September
2021, making it the most viewed site on thelearning platform. We also formallylaunched our 80/20 initiative after asuccessful pilot in 2020/21. This scheme
helps staff gain experience working in otherareas across the whole organisation, offering
placements where 20% of their normal
working time is spent in another role,for up to six months.
Our Hot Shoes scheme was refreshed in
2021/22, with 300 placements on offer. This
scheme offers a mix of in-person, virtual andhybrid placements across the BBC, giving
staff an opportunity to spend between twodays and two weeks in another part of theorganisation. More than 1,150 people
applied for one of the 120 placements
on offer in Round 1.
Across the year, we’ve run a series of Careers
Live events. These events have combined
the magic of BBC brands – Strictly,
Glastonbury, Line of Duty, BBC Three and
The Apprentice – with practical advice on
careers from industry experts and careerdevelopment professionals. All events areavailable to view on the myCareer site.
In recent months, we’ve sought to bringour Career Path Framework to life withthe launch of the Living Library (thetable on page 62 gives details of the
Career Path Framework). The library ismade up of 120 (and growing) job roleambassadors from the main job families.
These ambassadors are available for
informal chats about their role, a day intheir life and to give an insight into the skills
and experience needed to do their job.
For the next generation of senior leaders welaunched the Accelerator programme – anambitious programme to identify up to 30
BBC leaders with the potential to move into
more senior roles in the organisation andbring a greater diversity of thinking,approach and experience into those roles.
903 people applied to join this programme,and 25 colleagues were selected to form thefirst Accelerator cohort in February 2022.
We successfully introduced the Senior
Leader Index in June 2021, enabling
leadership impact to be measured alongsideother performance metrics. Every Senior
Leader received an individual report,
measuring their leadership against

Strategic Report59

Operational report
Our people continued
engagement, performance anddevelopment, and diversity and inclusion,and comparing their score with the averagein their Division and across the BBC.
In January 2022 we introduced anannual 360° feedback process for
Senior Leaders and will now extend
this to all B and F leaders.
Our commitment to creating a highperformance and development culture isunderpinned by myConversation. This gives
all employees the opportunity to have ahigh-quality discussion with their line
manager twice a year about theirperformance, goals and career development.
It was initially introduced in March 2021,
with 85% of employees completing theprocess, and this increased to over 90% in
October 2021.
Our commitment to impartiality
Throughout 2021/22 the BBC Academy,
working closely with Divisions and Editorial
Policy, has delivered impartiality training
across the whole of the BBC. The
programme of training – based around realcase studies and a culture of discussion –focused first on editorial staff andpresenters and was then expanded to all
staff. By March 31 2022, 92.6% of all staff
had completed one of the suite of the
Safeguarding Impartiality courses. In the2022 staff survey, 94% of employees said
they understood why impartiality isimportant for the BBC.
As part of the ten-point plan on impartiality
and editorial standards announced in
October 2021, the Academy will support theroll-out of this training more widely to
independent producers and freelancers.
We have added impartiality as a measure to
our Senior Leader Index. The ‘Impartiality
Index’ involves using ratings linked to four
specific questions in our twice-yearly
employee survey to assess how effectively
our leaders champion impartiality.
Refreshing our values
We refreshed the BBC’s Values for ourcentenary year, strengthening ourcommitment to them and aligning eachwith a set of agreed behaviours:— AUDIENCES are at the heart ofeverything we do;— CREATIVITY is the lifeblood of ourorganisation;— TRUST is the foundation of the BBC –we’re independent, impartial and truthful;— We RESPECT each other – we’re kind, andwe champion inclusivity;— We are ACCOUNTABLE and deliver workof the highest quality;— We are ONE BBC – we collaborate, learn
and grow together
60

Annual Report and Accounts 21/22

Divisional Senior Teams took part in‘Leading and Living the Values’ sessions
and are developing their own actionplans and interventions based on staff
survey feedback.
In the last year we have begun to transformthe way we communicate and engage with
BBC colleagues. We have introduced a newmonthly BBC-wide broadcast to share ourstrategic priorities and have enhanced theeffectiveness of our communications
channels. Throughout the year we havedelivered a series of sessions and campaigns
to bring our strategy to life for colleagues, topromote our values and our new enhanced
careers proposition, and to inform and equip
our senior leaders.
We carried out our BBC-wide employee
engagement survey in February 2022. Ourparticipation rate rose by 18 percentage
points to 75%. 83% of our staff said they
feel proud to work for the BBC and 70%
would recommend the BBC as a greatplace to work. Accessing support during
difficult times, team collaboration, open
and honest communication and an inclusive
team environment all scored highly, andmore favourably than in the previous
2021 survey. Although there has been arise of seven percentage points since theprevious survey in staff feeling they haveopportunities to develop their career (upto 45%), they feel less clear about how
to go about this (a drop of five points to33%). Areas for future focus are to develop
a more comprehensive action plan andunderstand how we can improve confidence
in those areas of the business that haveundergone recent significant changes.
International support
Since the change of regime in Afghanistanin August 2021 we have offered extensive
support for BBC colleagues (170 staff andfreelancers) who were based in Afghanistan.
The BBC worked closely with the UK FCDO
to help staff and their immediate families
move to the UK over the following months,
providing transport costs, accommodation,
food and other assistance.
Since the war in Ukraine started in February
2022 we have given substantial relocation,
employment, mental health and wellbeing
support to BBC colleagues based in Ukraine
and Russia. We have supported somecolleagues and their families in moving tosafer locations and in relocating to Poland,
Serbia and Latvia. As a result of the ongoing
political situation within Russia we havestopped output from Moscow and haverelocated the Russian language service
permanently to Riga, Latvia.
Employee relations and remuneration
Working closely with all our colleagues, ourrecognised Unions and our staff networks
remains a core priority. By working in
partnership and reviewing feedback throughReturn to contents

Non-Financial Reporting Information(NRI) Statement
We acknowledge the non-financial
reporting requirements of theCompanies Act 2006 and have disclosed
relevant associated information
throughout the strategic report. For easeof reference, information relating to thefive matters covered by the regulation
can be found on the following pages:
environmental sustainability (pages 69 to72); our people (pages 59 to 63); humanrights, modern slavery, anti-bribery(below). Further information can also befound in our business model (page 84),
our principal risks (pages 110 to 126) andour non-financial performance(throughout the strategic report).

Human rights, modern slavery,anti‑bribery
We are committed to respecting thehuman rights of all those who work for orwith us. Our Terms of Trade require any
suppliers we work with, and any subcontractors they use, to adhere to thecodes of practice published by the
Equality and Human Rights Commission
and the Equality Commission Northern
Ireland. In addition, suppliers, andsub-contractors, are required to abide by
our Code of Ethical Policy. The full code
can be found here: downloads.bbc.co.uk/
supplying/pdf/BBC Ethical Policy.pdf
We recognise the need to prioritise
tackling the most severe human rights
abuses, including modern slavery. We
abide by the Modern Slavery Act 2015
and publish our Modern Slavery
Statement in accordance with this.
The full statement is available at:downloads.bbc.co.uk/aboutthebbc/
reports/reports/modern-slaverystatement-2021.pdf
We are committed to a zero-tolerance
approach to bribery and corruption. We
expect all of those representing the BBC
to abide by the BBC’s Anti-Bribery Codeof Conduct. The full code can be foundhere: downloads.bbc.co.uk/aboutthebbc/
insidethebbc/howwework/
policiesandguidelines/pdf/bbc_anti_
bribery.pdf

employee surveys, we have built a strong
employee proposition under a single headingof Working at the BBC.
In 2022/23 our work will build on all the key
elements of the Working at the BBC
framework including implementing our new
approach to pay progression and focussing
on how we can help support the BBC’s net

zero ambitions by reflecting the importanceof sustainability in goal setting,development reviews and in the employee
benefits that we can provide to staff.

the BBC. Over the next year we look toembed these changes and continue to build
a high-performance culture, and deliver anindustry-leading employee proposition.

Looking forward
We have faced a significant number ofchallenges over the past year and have madesome big changes as we look to the future of

Data tables
On the following pages, we provide further
data to support the information reported inthis section.

Case study:
Apprentices at
the BBCOn the scheme she went from strength
to strength, finding new stories for all
News platforms, that connected to herbackground. She went on to receive theApprentice of the Year Award in the QSAAwards 2021 and in September 2021
secured a permanent Journalist role with
BBC Wales News and Current Affairs.

This year the BBC increased its intake
of apprentices by over 200 as part ofits commitment to deliver 1000
apprentices into the BBC each year by 2025.
Miriam, a former BBC apprentice, waspassionate about journalism from a young
age but never felt the BBC was for someone
like her – mixed-race, gay, and from a low
socio-economic background.

Miriam said, “The apprenticeshipchanged my life. I thought my chosen
career in journalism was a write off, but I
can honestly say, that if it wasn’t for theapprenticeship I wouldn’t be sat here
today – working on content across BBC
platforms and having the privilege ofgetting peoples stories heard.”

In 2019, Miriam decided to follow her
passion and apply for the BBC Digital
Journalism Apprenticeship scheme.

Return to contents

Strategic Report61

Operational report
Our people continued
Total average headcount 2021/22 (equivalent full time)2022

Spend on on-air roles*

Staff
excludingapprentices

Apprentices

Total

Total*PSB Group
BBC Studios
Other commercial
businesses

17,738
3,155

152
4

17,8903,159

18,977
2,723

232

0

232

519

Group total

21,125

156

21,281

22,219Within the averages above 2,606 (2021 2,998) part-time employees have been included
at their full-time equivalent of 1,683 (2021 1,923) In addition to the above, the Group
employed an average full time equivalent of 1,521 (2021 1,067) persons on acasual contract* Apprentices data is not separable for the whole of the prior year to calculate
the average

Career Path Framework
Employee roles are mapped across 27 job families and seven career
bands (ranging from Band A to senior leaders).
BBC Group EFT/Headcount by CPF Band (excluding PerformingGroups, Trainees and Apprentices and Non-CPF).
EFT

Headcount

EFT

EFT
(%)

Headcount

Headcount
(%)

A
B
C
D
E
F
FP
SL

231
2,089
5,921
6,403
2,131
875
94
306

1%
11%
33%
35%
12%
5%
1%
2%

294
2,235
6,356
6,784
2,227
888
105
309

1%
11%
33%
35%
12%
5%
1%
2%

Total

18,050100%

19,198100%

CPF Band

2021/222021

UK senior leader headcount by salary band (PSB only)
Salary band

£50,000 – £99,999£100,000 – £149,999£150,000 – £199,999£200,000 – £249,999£250,000 – £299,999£300,000 – £349,999£350,000+
Total** Total excludes BBC Board members and pension directors** Represents 1 3% of the total workforce

2021/22
Actual2020/21
Actual

28
102
74
21
3
5
1

42
100
70
22
4
1
2

234**

241

Spend
£000s

Less than £40,000
33,222£40,000 – £100,000
61,963£100,000 – £150,000 14,412£150,000 – £500,000 17,878£500,000 – £1m
982£1m – £5m
1,350
Total
*

2020/21

Volumes

Spend
£000s

Volumes

Variance£000s

19,163
1,030
118
72
1
1

33,50364,73912,371
17,0 45–
2,497

21,538
1,092
100
70
–
2

281
2,776
(2,0 41)
(833)
(982)
1,147

129,807 20,385 130,155 22,802

348

An individual is deemed to have an on-air role where they have significant (i e 80% ormore) on-air responsibilities During 2021/22, spend on on-air roles represented 8% of
total internal creative content spend (2020/21 9%)

Severance payments
Our redundancy policy is one month’s pay for each year of service
up to a maximum of 12 months’ pay (for those who joined before
January 2013 it is a maximum of 24 months’ pay). Employees musthave two or more years’ continuous employment on cessation to beeligible for payment. We have maintained a cap on redundancy andseverance payments of £150,000. Where redundancy pay is paid,
notice is served. If an individual wishes to leave earlier than the end of
their notice period, they must waive the remaining notice period andthey do not receive payment in lieu.
In 2021/22, exceptionally we paid one payment in lieu of notice(PILON) with severance pay for health-related reasons.
2021/22
Spend
£000s

Under £10,000£10,000 – £50,000£50,000 – £75,000£75,000 – £100,000£100,000 – £150,000

402
5,733
8,369
11,502
26,473

Total

52,479Payment band

2020/21
Volumes

Spend
£000s

Volumes

70
200
134
131
210

364
10,381
15,31021,807
26,649

56
336
245
251
218

745

74,5111106

BBC Academy and BBC Studios learning and development
Reach2021/22

Total training completions*
BBC staff who completed one or more course

107,452
92%

Total learning and development hours

175,663

Number of learning and development days per EFT

1.2

Value for money

2021/22

Training delivery spend (£m)**
Learning and development cost per EFT***£11.68£556

Training data and EFT figures are BBC-wide, including PSB, BBC Studios and othercommercial subsidiaries* Total individual face-to-face, virtual classroom and online completions In 2020/21,
due to Covid-19, the majority of completions were virtual classroom or online** Total BBC Academy and BBC Studios training delivery spend excluding major projects*** Total BBC Academy and BBC Studios training delivery spend divided by total EFT

62

Annual Report and Accounts 21/22

Return to contents

Information provided in line with the Trade Union (Facility Time
Publication Requirements) Regulations 2017 – schedule 2(1 April 2021 – 31 March 2022)
We have continued to work closely with our recognised trade unions
in the last 12 months, managing the ongoing challenges posed by
the pandemic and the strategic, transformational programmes
detailed in this section. We continue to value and build on our
positive and constructive relationships with our unions. No strikeaction was taken in 2021/22.
As part of the Trade Union (Facility Time Publication Requirements)
Regulations 2017, public authorities are required to report
information about facility time taken by trade union officials fora 12-month period. (Facility time refers to the time taken for ourrecognised trade unions to represent members both individuallyand collectively in a range of issues across the BBC.) This is detailed
in the table.

Relevant union officials
2021/22340(EFT: 323)

Number of union officials

Number of
employees

Percentage of time spent on facility time

0%
1% – 50%
51% – 99%
100%
Total cost of facility time
Total eligible PSB paybill
Percentage of total paybill spent on facility time

0
331*
7*
2*
£783,308£1,205.7m
0.06%

Paid trade union activities

Time spent on paid trade union activities as apercentage of total paid facility time hours*

20%

There were 10 union representatives seconded to represent their union, of which
two worked full time for the union, eight were job shares working both for BBC andrepresenting their union with 1 of the job shares working less than 50% of their time
on facility duties

Volume of internal complaints
Complaints made and investigated2021/222020/21

Bullying and harassment
Grievance complaints notified either
direct to HR, via a grievance being raised,or via the confidential bullying andharassment helpline.

53 formal cases— 1 sexual harassment— 52 bullying and harassment— 30 closed— 21 ongoing— 2 withdrawn
Average time to close case: 103 days

62 formal cases— 4 sexual harassment— 58 bullying and harassment— 48 closed— 9 ongoing— 5 withdrawn
Average time to close case: 84 days

Whistleblowing cases
Whistleblowing allegations are received
either via Expolink, who manage an
independent whistleblowing hotline on ourbehalf, via senior management including adesignated non-executive director, or
directly to the Investigations teams.

33 cases in total (a range of issues
covering safety, theft, fraud):— 1 upheld— 1 partially upheld— 3 unsupported— 17 not upheld— 11 ongoing

22 cases in total (a range of issues coveringsafety, theft, fraud):— 5 upheld— 16 unsupported— 1 ongoing— Actions to cover up any of these

Whistleblowing
A Protected Disclosure policy is in place,
supported by a whistleblowing’ hotline,
administered by an independent external
company to ensure anonymity This is available
in 43 languages Other whistleblowing
reporting routes include the Corporate
Investigations Team (where a dedicatedHead of Whistleblowing was introducedin February 2022) – the Director of Safety,
Security and Resilience – the Director of
Quality, Risk and Assurance, and – thenominated non-executive Director

Raising a concern at the BBC
The majority of concerns raised by staff will
be addressed by the BBC Grievance Policyor the BBC Bullying and Harassment Policy
Concerns should be raised, where possible,
directly to line management, however support
to take things further can also be provided
directly by an HR Business Partner, or via
the Bullying and Harassment helpline andthe Care First support line and website
Whistleblowing – Whistleblowing allegations,also known as Protected Disclosures’, can bemade by anyone with genuine concerns about
serious malpractice at the BBC, which are
believed to be in the public interest to disclose
Whistleblowing is governed by the Public
Interest Disclosure Act and covers matters thatfall under the following six specific strands— Criminal offence(s)— Failure to comply with legal obligations— A miscarriage of justice— Endangering the health and safety of
an individual

The BBC Protected Disclosure (Whistleblowing)
Policy enables the anonymous reporting ofserious allegations in an appropriate andeffective way, including— via the Corporate Investigations Team;— via the Director of Safety, Security and
Resilience;— via the Divisional Director of Quality,
Risk and Assurance;— via our external independent third party
provider Navex Global, either online or
through their dedicated reporting line
available in 43 different languages
If an allegation relates to a member of the
BBC Board or Executive Committee, it canalso be reported directly to the nominatednon-executive director responsible for thisarea, Nicholas Serota Concerns relating
to breaches of BBC Editorial Policy should
be reported directly to the Directorof Editorial Policy and Standards— Damage to the environment
Return to contents

Following the recommendations of the Serota
Review, in 2021/22 the BBC has worked to
update its Whistleblowing policy and framework
The updated policy, which will be introduced in
2022/23, expands the scope of concerns thatcan reported through the BBC’s whistleblowing
mechanisms to a cover a broader range ofserious misconduct Among other things, thiswill include misconduct issues likely to cause, or
expose a risk of, significant harm to the BBC(i e reputational, legal, or financial), and serious
breaches of editorial guidelines
Strategic Report63

Operational report
Equality information report
Each year, we set out in detail information
about the diversity of our staff, across a
range of different characteristics andbroken down by a range of categories.
The full information can be found online
alongside this annual report, and on thispage we set out our overall performance
this year and some of the steps we havetaken to improve our workforce diversity
and inclusion.
Overall, we continue to make significant
progress against the strategic commitments
set out in our three-year Workforce Diversity
and Inclusion Plan.
This year, we launched our ground-breaking
Inclusion Toolkit, using creative talent within
and outside the organisation; this has
equipped staff and leaders with a broad
range of tools to build an inclusive culture.
Centred around core topics such as curiosity,
self-awareness and action, the Toolkit
curates the best externally available
content, alongside original BBC guides.
Our Disability Allies initiative launched in
March 2022 to help staff become effective
allies to disabled colleagues, building on the
success of the LGBTQ+ Allies initiative.
Nearly 200 colleagues were trained as allies
in the first week.

We have expanded our Accessible First
programme which sets out to ensure thataccessibility for disabled staff and audiences
remains at the forefront of our decisionmaking in all areas. In March 2022 werelaunched our disability passport scheme
for staff. We have also partnered with six
other broadcasters who have adopted
passports following the BBC’s launch,making information about support andadjustments transferable as people movetheir careers around the industry.
We have taken concrete steps to
examine and improve our commitment
to inclusivity in our hiring processes,
looking at specific areas where we canmodernise and improve our assessment
and selection frameworks. We have also
started a pilot of Inclusive Hiring training
for recruiters and Interview Champions.
The BBC is committed to increase ourcultural awareness and understanding
to ensure we have an inclusive andreflective organisation.
We delivered a series of training programmes
to achieve that goal including Diverse
leadership training and ‘it’s time to talkabout race’ 90-minute sessions delivered
face to face aimed at senior leaders.

We have also run ‘Mentor up’, a reverse
mentoring programme connecting black andAsian minority ethnic colleagues with oursenior leaders to better understand thebarriers of underrepresented groups.
In September we organised a ‘Leaders ofColour’ Round Table to consider two specificquestions: the BBC’s greatest challenge toachieving racial equity (in terms of both
workforce and output), and what meaningful
and achievable commitments the BBC could
make to better include black, Asian andminority ethnic audiences, creative talentand staff.
In April 2021 we worked with otherbroadcasters and industry partners tocommission the Sir Lenny Henry Centre forMedia Diversity to carry out a research
project reviewing the validity and relevanceof the word ‘BAME’ as a way to describe agroup of individuals from black and Asianethnic minorities. The findings andrecommendations were publishedin December.
In October 2021 we were awarded Large
Employer of year at the B.A.M.E.
Apprenticeship Awards against a field of 25
nominees including Sky, Virgin, Google,
Ernst & Young and Lloyds. We were also
recognised again by the Social Mobility
Foundation in their top 75 employers list.
We have made significant progress towards
achieving our Year 1 50:20:12 targets
towards 50% female, at least 20% black,
Asian and ethnic minority and at least
12% disabled staff. In April this year we
introduced a new target of 25% for socialand economic diversity to ensure ourorganisation better reflects the audiencesthat we serve. The table below shows ourprogress against our core targets in thelast year.

Pan-BBC – All staff and leadership: 31st March 2022
Characteristic

Workforce

March ‘22

March ‘22
targetMarch ‘26
targetWomen

All Staff
Leadership

49.5%
47.5%

48.8%
46.4%

50%

B.A.M.E

All Staff
Leadership

16.4%
13.1%

15.9%
13.0%

20%

Disability

All Staff
Leadership

9.3%
7.9%

9.7%
8.4%

12%

	Detailed data on these and other characteristics, including divisional breakdowns, can beviewed at bbc co uk/aboutthebbc/documents/equality-information-report-2022 pdf

64

Annual Report and Accounts 21/22

Return to contents

BBC Pay Gap Report 2021/22
Introduction
We continue to make pay fairness and transparency a key
principle of our approach to managing pay at the BBC. In 2017 wepublished the first BBC Gender Pay Gap report, setting out thedifference in hourly pay between men and women across BBC
Public Service Broadcasting. Since then, we have continued tolead the market by adding other protected characteristics to ourreporting and publishing data on pay gaps by career band, witha view to ensuring the highest levels of transparency in ourreporting beyond that which is required by the legislation.
What is the difference between the gender pay gap and equal pay?
The gender pay gap is not the same as equal pay. Ever since the Equal
Pay Act of 1970, it has been illegal to pay different amounts to men
and women doing the same work, unless there is a ‘genuine material
factor’ for the difference. Equal pay is the law and we are fullycommitted to it.
The gender pay gap measures the difference in the hourly pay of all
men and women in an organisation, and is expressed as a percentage
of male employees’ hourly pay. It is reported on a mean andmedian basis.
The mean is the overall average of all employees’ salaries and cantherefore be skewed by any extremely high or low salaries. The
median involves listing all salaries in order, from lowest to highest,and picking the salary in the middle.
BBC Public Service Broadcasting gender pay gap
MeanMedian

2022

5.1%

5.9%

2021

5.0%

5.2%

2020

6.3%

6.2%

2019

6.8%

6.7%

2018

8.4%

7.6%

2017

10.7%

9.3%

Since we started reporting, we have seen a steady reduction in our
median and mean gender pay gaps. This year, although our mean
ethnicity pay gap has stayed the same, we have seen slight increases
in our other pay gaps. We expect some small fluctuations in thenumbers each year and this is borne out in the experience of otherorganisations in the industry. We also recognise that our pay gaps
may increase due to variations in attrition, more diverse hiring rates
into entry level positions and as a consequence of initiatives that
support our wider organisational objective to achieve a 50:20:12 BBC
by 2026. We are aiming for a gender balanced organisation, with atleast 20% black, Asian and minority ethnic staff and at least 12%
disabled staff. This strategy also commits us to increasing thenumber of LGBTQ+ staff and the number of staff from more diverse
socio-economic backgrounds. We have seen progress across all thesetargets and this year we have also introduced a target for sociomobility to focus and measure our work in this area.
Pay gaps at the BBC are primarily due to representation at different
levels of the organisation so we also need to pay close attention todiversity by organisational level as well as the overall proportions.
This year we have increased the proportion of females hired into ourmost senior roles. We have also hired a record number of apprentices
with a significant proportion of female and black, Asian and minority
ethnic apprentices joining us; this helps to ensure we have a strong
pipeline of diverse talent coming into the organisation.
We have also invested in pay in a number of critical skill areas where
we are competing for talent with organisations from all industries;
some of these functional areas currently have a higher proportionof men (both in the BBC and externally) and as such these pay*

interventions may have a negative impact on our gender pay
gaps. We are actively working to improve our diversity in thesefunctional areas.
The BBC’s gender pay gap continues to be significantly lower than
the national average median gap of 15.4% * and we compare
favourably with others in the media industry. We’re committed toensuring that we have robust pay governance and structures in place
to manage pay, maintaining the highest level of scrutiny across all
our pay decisions, and supporting managers to manage pay in a fairand consistent way.
What does this report include?
The BBC’s Pay Gap Report sets out the difference in hourly pay
between men and women, on both a mean and median basis. As
before, we have included voluntary disclosures of other pay gaps at
the BBC. Statutory calculations and results have been assured by theBBC’s Internal Audit team.
This report provides both the statutory disclosures required of BBC
Public Service Broadcasting, as well as further context aroundgender pay at the BBC. BBC Public Service Broadcasting for staff
based in England, Scotland and Wales includes the World Service but
excludes our commercial subsidiaries, BBC Studios, BBC Global
News, BBC Studioworks, Children in Need and Media Action.
We have included data for people on staff contracts (both permanentand fixed-term). This includes our on-air presenters who have BBC
staff contracts, but not presenters on freelance contracts.
As in previous years, the BBC also excludes from its pay gap
reporting agency workers who were engaged full-time for the BBC
but employed through third-party agencies. This is because they will
be included in the Pay Gap Report submitted by the agency that
employs them.
Pay gaps
A pay gap is the difference in average gross hourly earnings between
two defined categories of employees – for example, female and male
employees for the gender pay gap or disabled and non-disabled
employees for the disability pay gap. It is based on salaries paid
directly to employees before income tax and social security
contributions are deducted.
The following sections examine the pay gaps for BBC public service
employees in the UK, excluding Northern Ireland, for the following
specific categories:— Female and male employees— Black, Asian and minority ethnic employees— Disabled employees— LGBTQ+ employees
In line with statutory requirements, the gender pay and workforce
figures shown in this report are for BBC Public Service Broadcasting
staff based in England, Scotland and Wales. The gender pay gap
including Northern Ireland is 5.9% (median) and 5.2% (mean).
BBC Studios reports on its gender pay gap separately as it has over
250 employees, and therefore is not included in this report.
Gender pay gap
The median gender pay gap at the BBC has increased this year to
5.9% from 5.2% last year. The mean gender pay gap has increased
to 5.1% from 5.0% last year.
The gaps, when compared on a Career Band basis (i.e. comparing
jobs of a similar size to each other), are smaller and are reviewed aspart of our focus on pay positioning through the Annual Pay Checkand the introduction of data visualisation tools to help informmanagers when making pay decisions.

Office for National Statistics, 2021

Return to contents

Strategic Report65

Operational report
BBC Pay Gap Report 2021/22 continued
This table breaks down the median gender pay gap across our sevencareer bands
A

5.2%

B

-0.9%

C

3.1%

D

1.2%

E

2.2%

F

1.0%

SL

-7.6%

Pay split by quartile
When reviewing our pay gaps, we draw up a list of our employees’
earnings – from the highest to the lowest – and split it into four evengroups, or quartiles. The graph below shows the proportion of
women and men in each group.

Black, Asian and minority ethnic staffing split per quartile
upper

upper
middleupper
middle

81 7%

18 9%

81 1%

17 9%

82 1%

lower
Minority
Majority

The following table breaks down black, Asian and minority ethnic
staff into four specific categories of ethnicity. This breakdown shows
the pay gap for black employees is still noticeably higher than for theother categories of ethnicity at 8.6%.
MeanMedian

Asian

0.2%

0.3%

Black

10.4%

8.6%

57 4%

Mixed

5.1%

3.7%

42 3%

57 7%

Other

-2.5%

-6.8%

46 5%

53 5%

Disability pay gap
Our median Disability pay gap at the BBC is 5.9% and the mean is
7.4%. Both have increased since last year’s report.

56 0%

44 0%

lower

Black, Asian and Minority Ethnic pay gap
The median pay gap at the BBC for black, Asian and minority ethnic
staff is has increased to 1.6% from 0.0% last year. The mean pay gap
remains 3.3%.

2022

5.9%

2021

5.6%

4.0%

2020

4.9%

3.6%

2019

4.8%

3.1%

2018

4.9%

4.0%

5.2%

3.3%

3.3%

1.6%

2017

The following table shows our median Disability pay gap by BBC pay
band where we have more than 20 employees with a disability inthe band.

3.3%

0.0%

3.0%

-0.3%

2019

3.2%

-1.1%

2018

4.0%

-1.1%

5.7%

0.4%

The table below shows the median pay gaps for our black, Asian andminority ethnic employees for career band.
A

-2.7%

B

-4.1%

C

-4.2%

D

-3.2%

E

-4.1%

F

0.4%

SL

-8.8%

Annual Report and Accounts 21/22

Median7.4%

Median

2020

2017

Mean

2022

Mean

2021

66

18 3%

42 6%

lower
middleFemale
Male

84 0%

lower
middleGender staffing split by quartile
upper

16 0%

A

1.4%

B

1.5%

C

2.3%

D

0.2%

E

-1.8%

F

7.8%

SL

–

As with the previous categories, we have used the four even pay
quartiles to show the proportion of disabled employees ineach group.

Return to contentsOverviewPay gaps 2021/22 for all five categories
This table summarises the headline pay gap figures for the fivecategories covered in detail in the report as well as the category
for part-time employees.

Disability staffing split per quartile
upper

upper
middle

8 2%

91 8%

8 8%

91 2%

lower
middle
9 1%

90 9%

13 1%

86 9%

lower
Minority
Majority

LGBTQ+ pay gap
Both the median and the mean pay gaps for our LGBTQ+ employees
have increased this year, to 4.9% and 4.2%, respectively.

2022

Mean

Median

4.2%

4.9%

2021

2.5%

2.7%

2020

-0.3%

0.8%

2019

-0.7%

0.7%

2018

–

–

2017

–

–

The following table shows our median LGBTQ+ pay gap by BBC pay
band where we have more than 20 LGBTQ+ employees in the band.
A

1.6%

B

5.5%

C

3.7%

D

-0.4%

E

-2.3%

F

2.8%

SL

-9.0%

Using the four even pay quartiles, this table shows the proportion of
employees identifying as LGBTQ+ and those who do not.
LGBTQ+ staffing split per quartile

Median2021/22Mean
2020/21Median2020/21

Gender

5.1%

5.9%

5.0%

5.2%

Black, Asian andminority ethnic

3.3%

1.6%

3.3%

0.0%

Disability

7.4%

5.9%

5.6%

4.0%

LGBTQ+

4.2%

4.9%

2.5%

2.7%

Part-time

2.6%

2.6%

2.3%

1.6%

Additional payments at the BBC
BBC Public Service Broadcasting does not pay bonuses. Licencefee-funded discretionary bonuses for senior management andexecutives stopped in 2009.
The statutory requirements for reporting on gender pay include a“bonus gender pay gap”. In line with that guidance, we calculate thefigures below on our voucher recognition scheme and long-service
awards although we do not consider these to be bonus payments.
The voucher-based recognition scheme allows staff in bands A to F
to be rewarded for exceptional performance. During the year 3,054
staff received vouchers, with the median amount being £200.
154 staff received long-service awards and the average payment
was £4,614.
This year we are again voluntarily publishing details of black,
Asian and minority ethnic staff in receipt of the voucher
recognition scheme.
The proportion of female staff receiving a payment was 51%, whilst
the proportion of men was 49%. The proportion of black, Asian andminority ethnic staff receiving a payment was 18%. We expect thisnumber to vary year-on-year, depending on the recipients, but we
continue to monitor it to ensure staff are being rewarded fairly.

Gender bonus gap
Black, Asian, minority ethnic
bonus gap
Disability bonus gap
LGBTQ+ bonus gap

upper

upper
middleMean
2021/22

10 4%

89 6%

10 6%

89 4%

10 9%

89 1%

14 3%

85 7%

Mean

Median

13.3%
20.0%
13.1%
34.2%

0.0%
0.0%
0.0%
0.0%

lower
middlelower
Minority
Majority

Return to contents

Strategic Report67Operational report
Consultations
The BBC’s Charter requires the
BBC Board “to have regard to thebenefits of consultation withinterested persons” as part ofour commitment to openness,transparency and accountability
and is a key element in our
engagement with stakeholders
Public Interest Test consultationon the return of BBC Three tolinear TV
We reported last year that the BBC,as part of a Public Interest Test,
had consulted on proposals for the
return of BBC Three as a broadcast
TV channel as well as an online
destination. This move was partof the BBC’s drive to deliver morevalue to audiences – a broadcast
channel and BBC iPlayer in tandem
would help grow our offer and deliver
more value to younger audiences.
It would also deliver greater public
value by further increasing thediversity and creativity of our output
and build on the strengths of BBC
Three’s online performance.
The consultation asked for viewson the potential public value of the
proposals and their potential
competitive impact. In June 2021
the BBC Board concluded that the
proposals had met the Public Interest
Test and would be referred to Ofcom
for a final determination.
At the end of November 2021,
following a Competition Assessment
which included further consultations,
Ofcom decided that the BBC could
proceed with the launch of thechannel, concluding that it would
deliver additional public value to akey, underserved audience by offering
them increased access to BBC Threecontent, including a high proportionof original content with a UK focus
across a range of genres including
news, current affairs and factual
content, as well as drama,
entertainment and comedy. Ofcom
set several conditions around theirdecision which included Operating
Licence conditions on the newchannel for news and first-run
content and to require 75% of all
broadcast hours be UK originations.

68

Annual Report and Accounts 21/22

Public Interest Test consultation
on changes to BBC iPlayer
In May 2022, we unveiled plans thatwill see content and services
reshaped to build a digital-first BBC.
As part of this the BBC proposes toexpand boxsets and archive, to havemore BBC series available on BBC
iPlayer on-demand. As a potential
material change to a BBC public
service the Board has required a
Public Interest Test to assess its
public value and market impact.
This plan is part of our drive to deliver
more value to audiences. We believethat the Public Interest Test will findthat these changes will better enable
the BBC to deliver its mission andpromote its public purposes, serving
all audiences including those with astrong on-demand viewing habits.
The ability to publish more archive
content will enable the BBC to
introduce audiences to a wider rangeof highly distinctive programmes
across a broad range of genres andbetter serve all demographic groups.

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We believe that it will also promoteindustry value – publishing more BBC
commissioned content on BBC iPlayer
will be done under the previous orexisting terms of trade and as such
will be beneficial for the production
and talent sector.
To give stakeholders an opportunity
to comment, the BBC opened aconsultation in June 2022. The resultsof the consultation, together withother research and analysis, will help
inform the BBC’s final proposals,
expected in the Autumn of 2022.
Should the BBC Board decide thatthe proposals meet the Public
Interest Test, they will be submitted
to Ofcom for a Competition
Assessment and final determination,in line with our requirements under
the Charter and Agreement.

BBC Three returned
to linear TV(L-R) RuPaul’s Drag Race /The Catch Up / Mood /The Fast and the Farmer-ish

Environmental sustainability
The BBC Group has approved sciencebased targets to reduce its greenhousegas emissions to Net Zero and iscommitted to producing content in acleaner and greener way. Our long-termgoal is to be a Net Positive organization,
giving back more to the planet than
we take out. We continue to play a
prominent role within our industry,
promoting sustainable productionin the UK and around the world.

Buildings& Operations• Fuel & Electricity

8%

Licenses, Franchises• BBC Studios licenses• Merchandise

ION

Supply Chain

TP

ISS

• Corporate services• Transport & Logistics• Independent Production

SM

Companies

N

O

Audiences accessing
BBC Content estimate:
FY2019/20 – 495t CO2e

81%

• Post-production• Technology and

A

IENC

E

UD

Total Emissions: 1.3 million tCO2e
Baseline FY 19/20

FO

We are currently calculating the BBC Group’s
GHG emissions for 2020/21 and 2021/22
to assess trends and identify challenges.
We are also implementing a sustainability
reporting system to collate the BBC’s
environmental data, to allow consistent
performance tracking across all of the BBCGroup and to simplify external reporting.

Scope 1 &2 Emissions: 26K tCO2e2%

Equipment,
Capital GoodsON

The BBC Group’s GHG emissions for
2019/20 were 1.3 million tonnes CO2e,
aggregated from the areas over which wehave control and influence. This is thebaseline from which reductions will be madeto reach our NZ targets.

Business
TravelCARB

These challenging goals are the appropriate
approach for a global media organisation
but external factors from third parties will
always impact our ability to deliver against
these targets. Investment will be focusedon deep decarbonisation and emission
elimination rather than a heavy reliance on
offsetting, as outlined on our Environmental
Sustainability website: bbc.co.uk/
sustainability/our-plan. We are, however,committed to offsetting our TV production
emissions as required by the BAFTA albert
industry standard.

4%

A

Net Zero strategy and targets
Our Net Zero (NZ) strategy and targets wereannounced in October 2021, to reduce, by
2030, the greenhouse gas (GHG) emissions
from our direct operations (Scopes 1 and 2)
by 46% and in our value chain (Scope 3) by
28%. These near-term targets wereapproved by the Science Based Targets
initiative (SBTi) sciencebasedtargets.org
and are aligned with the UN’s 2015 Paris
Agreement to limit global warming to well
below 2°C above pre-industrial levels andpursuing efforts to limit the temperature
increase to 1.5°C above pre-industrial levels.
In February 2022, the BBC also committed
to calculate long-term NZ emission
reduction targets within two years, meeting
the SBTi’s standard to nullify our climate
impact from GHG emissions by 2050.

3%

RI

NT

– PL A NNINGTO

TR

Cloud services• Content Transmission
and Distribution

Total Scope 3 Emissions: 1.27 million tCO2ea. Target boundary exclus ons Use of sold products and employee commuting
b. Categories with < 2% of emissions are omitted in this diagram but are included in the target boundary and cover fuel and energy related activities upstream transport and distribution
downstream leased assets investments and waste in operations. They add up to 100% of the total footprint of 1.3M tCO2e

Greener Broadcasting strategy and targets
Our Greener Broadcasting strategy, launched in 2018, committed the BBC to environmental
targets for 2022 set against our 2015/16 baseline, as shown in the table below. This is the lasttime we will be reporting our performance against these targets, having now replaced themwith our NZ targets outlined here: bbc.co.uk/sustainability/
Greener Broadcasting BBC Targets
and Measures

Targets/Measures by 2022(baseline 2015/16)

Progress 2021/22

Greenhouse gas emissions

Reduce 24%

Reduced 77%

Energy2

Reduce 10%

Increased 3%

Waste

Reduce 10%

Reduced 51%

Recycle 75%

Recycled 38%

Zero waste to landfill

Waste to landfill 1%

No single-use plastic by 2020

See footnote 3

100% albert footprint calculation

93%

25% output albert certified

53%

1

3

Programmes

4

1 CO 2e reduction target follows a science-based methodology addressing scope 1 and 2 emissions and uses a sectoral
decarbonisation approach
2 UK electricity consumption in 2021/22 is in accordance with the SECR reporting guidelines 162,604 MWh UK gas
consumption in 2021/22 is in accordance with the SECR reporting guidelines 80,425 MWh Fuel consumption fortransport in 2021/22 is in accordance with SECR reporting guidelines Diesel and petrol used in fleet cars operated
for business and company cars on business 583,120 litres Data on fuel used in personal/hire cars on business is notavailable Operational changes introduced during Covid-19 have had both positive and negative impacts on ourenvironmental targets Remote working and reduced travel significantly cut carbon emissions from production andbusiness travel The results presented do not capture emissions arising from home working Our gas usage across theUK estate rose because of extra heating needed to keep ambient building temperatures comfortable while air
circulation was increased to reduce Covid infection risk amongst staff Despite more staff working from home during
lockdown, our buildings remained open to deliver essential broadcasting services which prevented significant
reductions in electricity use Many older buildings also lack effective insulation but our ongoing strategy of closing more
inefficient buildings and moving to newer properties built to a higher environmental specification, as well as targeting
energy efficiency opportunities, will drive down our Scope 1 and 2 emissions Energy usage has also risen partly as aresult of greater and more complete data collection from international offices and BBC Group subsidiary companies
3 Waste data is for UK only Covid-19 increased the volume of non-recyclable hygiene waste and many of these products
were plastic, which hampered efforts to reach our single use plastic (SUP) target As Covid-19 restrictions have now
been lifted, we will be actively removing SUP going forward

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Strategic Report69Operational report
Environmental sustainability continued
4 BBC Content commissions only, consistent with methodology for 2020/21 The 100% albert footprint target was not
met because of exceptional circumstances in a live production environment as well as engagement challenges withsome BBC Divisions and suppliers, which are being addressed
Greenhouse gas emissions 2021/22

Gross emissions

Net emissions

Greenhouse gas emissions (tonnes CO 2 e emissions, Scopes 1 and 2)

54,181

22,230Carbon intensity (tonnes of CO 2 e emissions/total group income £m)

10 1

42

Greenhouse gas data is for UK sites and managed international bureaux ‘Gross’ emissions use location-based grid
average factor ‘Net’ accounts for renewable electricity purchased in the UK Data has been produced in accordancewith the GHG Protocol Corporate Accounting and Reporting Standard

Engaging our supply chain
We are working with suppliers and partners
to reduce our supply chain emissions, which
equate to 85% of our carbon footprint
baseline including capital goods andequipment. We have asked significant
suppliers to participate in the Carbon
Disclosure Project (CDP), a global disclosuresystem for organisations to manage theirenvironmental impacts. We will support
them through this process as they
accompany us on the transition to Net Zero.
We continue our focus on responsible
procurement by choosing suppliers whoshare the BBC’s objective of putting social,environmental and economic sustainability
at the heart of their operations. Our
Sustainable Procurement Strategy:
downloads.bbc.co.uk/supplying/pdf/
Responsible Procurement Strategy 2021.
pdf, focuses on the three P’s – Planet, People
and Pound – to emphasise our sustainability

and social value goals and to deliver value
for licence fee payers.
TCFD
The Task Force on Climate-related Financial
Disclosures (TCFD) Framework was adopted
by the BBC in 2021 for reporting on futureclimate-related risks and opportunities that
could impact the organisation. The projectworkstream is explained below:
Governance: The role of the Audit andRisk Committee is to assist the Board inproviding oversight of corporate governancewithin the BBC, particularly with respect
to financial reporting, internal control
and risk management which includes
sustainability risk and our alignment to the
TCFD recommendations. The Sustainability
Steering Group, comprised of senior
BBC divisional leaders, is responsible forreviewing progress against the BBC’s
sustainability strategy and performance“Projecting a Greener Future” throughout
COP26 at Pacific Quay, Glasgow
70

Annual Report and Accounts 21/22

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using key metrics and targets, while also
developing climate-related opportunities.
BBC divisions are taking responsibility
for their own environmental actions, led
by their senior management teams, anddeveloping bespoke sustainability anddecarbonisation plans. Once our panBBC sustainability reporting platform
is active, each division will be able tomonitor their own progress against BBC
emissions and environmental targets.
Strategy: Building on our work last year to
identify and quantify physical and transition
risks and opportunities for the BBC, we havefurther refined our list of priority risks andopportunities and undertaken climate
scenario analysis to understand theirpotential impact under two futuretemperature scenarios: “Net Zero” (1.5°C
warming equivalent) and “Business as Usual”(3.5-4.5°C warming equivalent) in order totest the resilience of our current businessplan. We have considered short (2022 to2029), medium (2030 to 2039) and longterm (2040 to 2059) time horizons, alignedwith our business planning and asset life
cycles, and assessed when each risk is likely
to materialise and the relative financial
impact. Multiple sources of scenarios wereconsidered to achieve this that included theInternational Energy Agency (IEA), theInternational Renewable Energy Agency(IRENA), the United Nations Principles for
Responsible Investment (UN PRI), as well as
local information from different BBC
departments and functions.

Climate-related risks

Climate-related opportunities

Transition risks

Increased costs associated with carbon pricing, offsets
and taxation
UK and international net zero commitments will likely result in theacceleration and implementation of carbon pricing mechanisms
including emission caps with offsetting requirements andcarbon taxes
Reduced talent attraction and retention
The BBC’s decarbonisation strategy and reputation on climaterelated matters will affect attraction and retention of BBC
employees and contractors
Limited access to capital
Providers of capital increasingly have their own net zerocommitments resulting in a higher cost of capital for organisations
that are perceived to not be taking sufficient climate action
Reputation risk from greenwashing
Public perception of mismatch between strong content messaging
and poor performance against targets or suppliers/employees
misaligned with BBC’s climate strategy.

Savings from energy efficiency
Opportunity to roll out energy efficiency improvements to BBC
buildings, operations and behaviours will likely enable energy
and cost savings
Decarbonisation of BBC products and services
Shifting consumer preferences and demands for lower carbon
services provide an opportunity for BBC to meet audience needs
and add brand value by evolving our product and service offering.
Reputation of climate leadership
BBC has the opportunity to demonstrate climate leadership in
the media industry, both through climate strategy and targets,
as well as by engaging, informing and inspiring audiences throughour content
Please note Some of our risks and opportunities were revised as part of this TCFD activity
from our previous disclosures in our 2020/21 Annual Report

Physical risks

Flood risk causing damage and service disruption
Increased precipitation and event intensity will likely increase therisk of flooding, thereby increasing the risk of both damage to assets
and infrastructure, as well as disruptions to service provision

We have accessed the relative quantitative
impact of potential material risks andopportunities under Net Zero scenario,
equivalent to 1.5 degrees. This involves
identifying the underlying financial factors
and drivers which could have a material
impact for the BBC, such as impacts on costand revenue, regulatory requirements suchas carbon pricing and taxation, or changes
to the accessibility of capital. The outcomesof this analysis are helping us identify
climate-related risks and opportunities
which could have the most damaging
impacts over the short to long term, such as
physical damage and service disruption
attributed to extreme weather events, andreputational damages from real or perceived
inaction on climate change. This process isaligned to BBC’s existing risk management
framework, and the outcomes from thisanalysis are used to inform our internal
strategic decision-making.
We have also identified a potential strategic
response and risk mitigation activities foreach material climate-related risk andopportunity. These include measures such as
accelerating decarbonisation activities
through increased resources and innovation,aligning to industry and market
expectations, and strengthened monitoring
and governance. We intend on providing
financial disclosures in the next reporting
round to enhance transparency once thesehave been internally validated.

Risk Management: Environmental
sustainability and climate change isidentified as operational risk by the BBCGroup, as described in the Principal Risks
section of this report on page 125. Please
note that this excludes some more recently
identified risks in the table on page 71.
Metrics and Targets: Our ambitious targets
to reduce GHG emissions and otherenvironmental impacts are outlined on page
69 together with our progress against thosetargets. Following our scenario analysis andunderstanding of the potential financial
impact of the risks and opportunities, we willdevelop metrics to monitor the developmentof risks and our progress to capture
climate-related opportunities.
Future plans: We recognise that thepotential impacts of climate-related risks
and opportunities are likely to change overtime. Therefore, our strategy and risk
management framework will also evolve toaddress these changes and to improve theresilience of our operations and strategy as
well as remaining aligned with current
guidance and leading practice.
Sustainable production and operations
The BBC continues to play an active andprominent role in the collaborative panindustry BAFTA albert consortium andDirectorate, which originated from theBBC’s carbon foot-printing activities for

Return to contents

productions in 2011. The Consortium
continues to promote positive action to
tackle climate change in film and TV
production across all genres, both on
and off screen.
The BBC has mandated the use of the
BAFTA albert sustainable production
certification tools for all new TV content
commissions, recommissions and continuing
series from January 2022, with the
exceptions of very low budget productions
or content acquired as completed
productions. The BBC continues to holdpreviously commissioned TV productions toaccount with the mandatory completion of
the BAFTA albert carbon foot-printing tool.
BBC production teams across all genrescontinue to make content with concern for
the environment, employing low carbon
working methods. Travel often creates highcarbon emissions and our NZ emissions
targets reflect that. Covid-19 travel
restrictions showed that remote filming andemploying local crews significantly cut
emissions and was often more feasible than
had previously been assumed.
Production teams also learnt that this wasoften more feasible than had previously been
assumed and that, in addition to this, it could
also save them money.

Strategic Report71Operational report
Environmental sustainability continued
Domestic travel patterns are also changing:
BBC staff going to Glasgow for the COP26
climate conference were strongly
discouraged from flying, apart from in
exceptional circumstances, and almost all
News teams and all senior leadershiptravelled by train. As a result, the BBC
deployment’s travel emissions were only
29.5 tonnes, just over half that would havebeen expected if staff had been able to fly.
Greater use of low-carbon energy is also
critical to our operational NZ aims. BBC
Workplace installed solar photo-voltaic (PV)systems and charging points for electricvehicles (EVs) at the Glasgow Pacific Quay
building and BBC Scotland also installed
charging points at four other BBC Scotland
sites to cater for the new operational EV
fleet. Work is in progress to install chargers
at key bases around the UK which will enable
the wider BBC operational fleet to begin
decarbonising. Transitioning to full EVs
across the BBC estate could achieve an 8%
cut in the BBC’s Scope 1 emissions.
BBC News has developed a satellite news
gathering (SNG) vehicle with battery
powered, on-board broadcast systems to
avoid using diesel generators. All-day news
events with up to three cameras and two
uplink paths can be mixed on location using
only battery power for 16 hours without theneed to re-charge.

The Natural History Unit’s Watches series
from BBC Studios continue to use hydrogenand battery powered generators for theirlive outside broadcasts which is a significant
innovation for the TV industry.
Look East, BBC Cambridge’s 18.30 news
programme on 5th July 2021, was the firstcarbon neutral BBC regional news show,
broadcast outdoors with studio lights
swapped for sunlight and using solar andhydrogen to power their equipment.
Waste is the third key pillar of oursustainable productions. Most productions
continue to cut back significantly on
single-use plastic and some productions
have been piloting exciting newopportunities to remove waste, working withorganisations who can reuse this within acircular economy. Many productions which
use location catering have opted for more
plant-based meals to reduce GHG emissions.
Sustainable technology
Across both television and radio, audience
consumption of content is still the biggest
driver of energy use. BBC Research andDevelopment has repeated their modellingof the energy footprint of BBC televisionand radio services for 2019/20 and2020/21. This showed a small decreasein television’s energy footprint, and early
indications that a move to internet-

only distribution in the future may havea positive environmental impact.
The BBC is a member of the DIMPACT
project, which commissioned the Carbon
Trust to publish a paper on the carbon
impact of video streaming. Comparisonswith BBC Research and Development’s
own work have emphasised how
important industry collaboration is on
this topic. A sustainability audit of ourtechnology innovations, conducted
to embed sustainability principles
within them, resulted in a much moregranular approach to assessing theimpact of cloud-based solutions.
Sustainable culture
Our BBC HR division continues to prioritisecolleagues’ engagement with oursustainability and NZ strategies, working toembed the principles of respect for people
and planet in our BBC Values. Staff training
in sustainability has been a priority this year.
BBC Content has set a target for all editorial
staff to attend workshops explaining climate
and sustainability themes. BBC News also
has sustainability training targets for staff
and ensured that both UK based andinternational journalists received training
ahead of the COP26 climate conference.
Internal briefing sessions are held to supportand inform BBC editorial staff from all
genres in this fast-moving space. BBC
Content, in partnership with the BBC
Academy, delivered a Climate Creatives
Festival for both BBC staff and wider
industry colleagues ahead of COP26.
The BBC partners with Cranfield University,
which delivers a Business MSc CPD course
for our staff that includes a ‘Leading
Corporate Sustainability’ module. This
project has produced very effective
engagement with more than 150 senior
BBC leaders.

In July 2021, Look East
broadcasted the BBC’s firstcarbon neutral regional
news show episode72

Annual Report and Accounts 21/22

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Charitable work
Children in
Need’s Great
Rickshaw Relay
Challenge
Rider Olivia andpresenter Matt
Baker inLiverpool, taking
the Rickshaw on
a ferry across the
Mersey. Five
young riders
travelled throughtheir hometowns
in England andScotland toraise money forthe charity

The charity appeals broadcast on
the BBC this year have seen
exceedingly generous audience
responses with millions of pounds
being raised to benefit individuals,
communities and organisations
across the UK and around the world.
The BBC’s Access Appeals on Radio 4
and BBC One gave airtime to 60
charities, selected through a rigorous
quarterly application process. These
appeals told a wide range of diverse
stories from across the UK andinternationally. Audiences can readabout these appeals and their impact
here: bbc.com/charityappeals/
what-your-money-does.
In Northern Ireland there were ten
appeals on BBC Radio Ulster/Foyle
and four Community Life appeals on
BBC Northern Ireland television.
Applications were also invited fromlocal charities for upcoming appeal
slots and all of this activity was
supported by a dedicated website anddeveloping social media presence.
In December, the annual Radio 4
Christmas Appeal with St Martin-inthe-Fields Charity was broadcast. It
has raised £4.7 million to date,helping people across the UK to finda safe place to call home and accessto the support they need.
The BBC broadcast two appeals forthe Disasters Emergency Committee(DEC). The first, in December 2021,
raised funds to bring aid to people in
Afghanistan at risk of starvation andmalnutrition. The second Appeal in
March 2022 was for the Ukraine
Humanitarian crisis.

The DEC reported that this appeal
was one of its most successful, raising£200 million in the first fortnight
and continuing to grow over thefollowing weeks.
BBC Children in Need
The BBC’s UK charity currently funds
over 2,400 local charities andprojects across the four nations,
helping to improve the lives of
460,000 children and young people in
the past year alone. Colleagues
across the BBC supported the 2021
Appeal, sharing these powerfulstories and inspiring the British public
to respond with extraordinary
generosity yet again. Special
programming included: Countryfile
Ramble; The Great Rickshaw Relay
Challenge; DIY SOS: The Big Build; TheOne Show’s Surprise Squad; Dr Alex:
Our Young Mental Health Crisis; BBC
Breakfast’s Drumathon and Radio 2’s
Kitchen Disco Danceathon. An
incredible fundraising total of £40
million was announced at the end of
the Appeal campaign, a figure thathas continued to rise. For more
information, visit: bbc.co.uk/Pudsey.
BBC Media Action
BBC Media Action, the BBC’sinternational charity, worked withmore than 100 local media partners
to reach more than 118 million people
around the world last year, throughradio, television, digital and social
media and community outreach insome of the world’s poorest and mostfragile countries. Alongside a second
full year of global pandemic response,
Media Action’s programmes focusedon health, media development andmedia freedom, governance, equality
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and inclusion, resilience and climate
action. Our international charity wasproud to play a significant role
alongside the BBC at COP26 in
Glasgow. Media Action has continued
to work under challenging conditions
in Myanmar, Ethiopia, Afghanistan
and Ukraine, delivering health andhumanitarian information andsupporting local media partners.
For more information, please see
bbcmediaaction.org.
Comic Relief
Red Nose Day 2022 raised anamazing £42.7 million and had strong
support across the corporation
including The One Show, BBC
Breakfast, Countryfile, and Glow Up.
There were two epic challenges
covering many parts of the UK withBBC Radio 1’s Jordan North’s
100-mile row and Olympic Champion
Tom Daley’s unbelievable 290-mile
cycling, rowing, swimming andrunning feat from London to
Plymouth. Both challenges featured
in special BBC documentaries.
The fun-filled night of TV saw a hostof celebrity presenters, spoofs andtop musical performances. The Great
Comic Relief Prizeathon gave viewers
the chance to win extraordinary
prizes. Powerful appeal films
reminded viewers of how their
donations are changing lives in the
UK and around the world. Read more
at: comicrelief. com
comicrelief.com/rednoseday.

Strategic Report73Operational report
Partnerships and collaboration
The BBC has a rich and diverse portfolio oforganisations with whom we partner todeliver value to audiences across the UK
and beyond. Over the past year we havestrengthened our focus on thecontribution these partnerships make tothe national interest and to the delivery of
our strategy, with a small central teambuilding on the work of the existing
Partnership Group, to ensure that partners
gain optimal value whilst collaboratingwith the BBC. We are unifying the BBC’s
approach to delivering and evaluating
partnerships by identifying andsupporting best-practice methods, and wehave laid out a clear strategy to further
strengthen the BBC’s partnerships
portfolio’s contribution to Value For All.
Across the UK
As part of our Across the UK initiative, wehave developed two key regional production
and skills partnerships across England in theWest Midlands and North East. The BBC isalready delivering the West Midlands
partnership in collaboration with Create
Central and the West Midlands Growth
Company including two BBC Three Factual
commissions, a pipeline of Scripted
commissions, and most recently, theannouncement in February 2022 that
Masterchef would relocate to Birmingham.

Tyne and North East Combined Authorities.
As part of this, the BBC will commit at least£25 million of network televisioncommissioning spend across the region overthe next five years. This will be supported bya further £11 million of funding fromregional partners to support the sustainablegrowth of production, skills andinfrastructure. Within the first nine monthsof the partnership, we announced six
commissions for the North East. We also
partnered with Creative Wales to build on
the success of the Welsh creative industries
and our partnership with Creative Scotland
was also extended to December 2024.
Digital and online partnerships
In January 2022, we expanded a previous
partnership with Learning on Screen,
Planet eStream and ClickView, enabling
students, teachers and academics tofreely request any programme fromthe BBC digitised broadcast archives.
Over 800,000 BBC programmes wereviewed in the last year by students informal education under this scheme.

Alongside this, the BBC has partnered with
Google to set up The BBC Apprentice Hub, apilot flexi-job apprentice agency that will see
the BBC act as a host employer drawing on
the diverse talent in the region, addressing
the skills gaps in local creative, cultural anddigital businesses.

BBC History is collaborating with the
Science Museum Group, a major museum
partner, which has started its year of
public engagement by showcasing a
digital release of 1,000 programmerelated objects and items of technology
from the BBC Collection. BBC Historyis also supporting ‘Story of Us’ projects
with key museums across the UK, and arefreshed BBC History website also offers
a new interactive timeline with three newcollections: Objects of the BBC, Facesof the BBC and Voices of the BBC.

In September 2021, the BBC agreed aMemorandum of Understanding (MOU) to
set up the North East Screen Industries
Partnership (NESIP), with Tees Valley, North

High impact creative partnerships
Our partnership with the National Filmand Television School allows us to further
contribute to the development of new

Case study:
Share Your StoryTo mark the BBC’s 100th year, inearly 2022 we launched Share
Your Story, an ambitious
storytelling initiative across 700 UK
schools, to empower year 7-9 students
with the confidence and creative tools totell their life story. Delivered via a suiteof resources on BBC Teach with training
led by our partners, National Literacy
Trust, Voice 21 and the BFI, Phase 1 ofShare Your Story ran from February –March 2022, reaching 60,000 students,
with a goal to engage with 400,000
students and 4,000 teachers face-toface by the end of 2022.

74

Annual Report and Accounts 21/22

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talent. The partnership is primarily
designed to develop a talent pipeline into
the BBC by offering support to diverse
students (black, Asian and minority
ethnic, low socio-economic background,or disabled) and those from Across the
UK. Throughout 2021/22, the BBC is
supporting 24 students and offering the
NFTS production space in BBC Scotland
and BBC Wales. NFTS graduates haveplayed key roles in the delivery of uniqueand high-impact BBC content in the lastyear, including Alice Seabright, Writer/
Director of Chloe; Annetta Laufer, Robin
Whenary and Segun Akinola, who the shotand composed New Year’s Day Doctor
Who episode; and finally, the documentaryBlack Power: A British History of Resistancewas directed by George Amponsah.
We partnered with Coventry to shine a lighton the UK City of Culture 2021 which kicked
off in the midst of the pandemic. BBC
coverage meant the opening event could beshared with audiences across the UK andglobally. The opening was featured on anumber of BBC programmes including The
One Show, BBC News at Ten, BBC World News,and across local radio and regional TV
programmes. Other highlights include three
bespoke BBC Arts documentaries, coproductions involving Coventry City of
Culture Trust, and Coventry will round off its
year by hosting Radio 1’s Big Weekend in
May 2022.
Supporting impartiality
To support our renewed commitment to
impartiality, we retendered the contracts
that underpin our partnership with UK
regional news providers as part of the
Local Democracy Reporting Service.
There are now 18 different companies
employing Local Democracy Reporters
in 165 posts across the UK. Reporters
have created 275,000 stories in the
public interest since January 2018.
Partnerships and collaborations across the
BBC in 2021/22
BBC Area

Number ofPartnerships

AcademyArchive
ArtsCentenaryChildren’s and Education
Content TV
Creative Diversity
Media Action
News
Research and Development
Sport
England
Northern IrelandRadio & Music
Scotland
Wales

4
23
20
15
76
25
13
7
19
14
3
135
3
119
9
9

Total

494

COMMERCIALOPERATIONSThe BBC’s commercial subsidiaries support the BBC
public service mission and generate income for the
BBC Group. These companies maximise the value ofthe BBC’s intellectual property, funding high-quality,
distinctive content for the licence fee payer, whilst
supporting the UK’s television industry on theworld stage.
BBC One’s award-winning Strictly Come Dancing made by BBC Studios
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Strategic Report75Commercial operations

Commercial activities
The BBC has two wholly owned commercial subsidiaries which complement the BBC’s public
service remit:
BBC Studios operates two lines of business: Production andDistribution, and Channels and Streaming. It creates, invests,
develops, produces, commercialises and distributes content whichsits at the heart of the BBC schedule, as well as across multiple
platforms and around the world, delivering better value back to thelicence fee payer through support for programme funding and cash
dividends.
For more on BBC Studios activities, see pages 77 to 81.

The commercial criteria:
The BBC’s commercial subsidiaries deliver
quality creative content for audiences andincrease the value of BBC intellectual
property (IP), as well as providing criticalsupport for the wider creative industry, bothin the UK and around the world. They do thiswhilst promoting and protecting the BBCbrand and reputation worldwide, according
to the commercial criteria as set out in theCharter and Agreement:
1. the activities must fit with the Mission
and the Public Purposes;
2. the activities must exhibit commercial
efficiency;
3. the activities must not jeopardise thegood reputation of the BBC or the valueof the BBC brand; and4. the activities must not, as a result of therelationship of the activity with the UK
Public Services, trading activities or
non-service activities, distort the market
or create an unfair competitive
advantage.

The BAFTA awardwinning The
Earthshot Prizeceremony produced
by BBC Studios

BBC Studioworks provides TV studio facilities, equipment, crew andpost-production services from locations in the UK. It supports UK
public service broadcasting through annual cash dividends. See moreon what Studioworks delivers for the BBC on page 82.

Developing talent at
BBC Studioworks

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Annual Report and Accounts 21/22

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During 2021/22, the BBC’s commercial
subsidiaries were overseen by theCommercial Holdings Board, which was
responsible for setting strategy in line withoverall BBC Group company goals, agreeing
business plans and ensuring compliance inregulatory and legal matters. A report fromthe Chair of the Commercial Holdings Board
is on page 128. From 1 April 2022, the new
BBC Commercial Board was put in place,with a new Chair and a majority of external
non-executive directors, bringing additional
insight and expertise to drive commercial
growth for the BBC.

BBC Studios: Chief
Executive Officer’s Review

I am very proud tosay that BBC Studios
achieved record sales
and profits in 2021/22,
despite the ongoing
disruption anduncertainty causedby the Covid-19
pandemic and intensecompetition for talentand customers.

Sales for our production business increasedby 56%, whilst UKTV gave a very strong
performance, with a record audience share in
2021 combining with a buoyant advertisingmarket, to boost its sales significantly.
Our content sales topped £400 million for
the third consecutive year, reflecting
continued success with key brands, including
the Planet series, Doctor Who and Top Gear,as well as the benefits of increased
investment in new titles, which included The
Outlaws, Pursuit of Love, This is Going to Hurt
and The Mating Game. Programmes like
Strictly, Jimmy McGovern’s award-winning
Time and the launch of the Earthshot Prize
got audiences talking.
Overall sales were £1,630 million (2020/21:£1,255 million). EBITDA (earnings
before interest, taxes, depreciation andamortisation: the preferred measureof profit) was £226 million (2020/21:£151 million), 50% higher than 2020/21
and the first time we have achieved
EBITDA of over £200 million.
Our cash generation remained strong
with free cash flow of £198 million(2020/21: £201 million), resulting in acash dividend of £135 million to theGroup. This, combined with investmentin programming, meant we exceeded ourtarget of £1.2 billion in returns over the
first five years of the current Charter.
Year-on-year, our returns figure more thandoubled to the highest-ever level of £353
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million (2020/21: £137 million), deliveringsignificant investment in programming.
With a focus on putting people first, which
has intensified to support our employees
throughout the pandemic, the culture of thebusiness continued to transform. Global
News joined in July 2021, with Children’s
in-house production to join in the next
financial year, and production moves
bolstering existing bases in Salford, Bristol
and Glasgow. Having served on an interim
basis, I was honoured to be confirmed aspermanent CEO in October, with Lorraine
Burgess joining as CFO to create a new
permanent leadership team for the business.
As part of its Autumn Budget, theGovernment announced an increase in the
net borrowing limit for the BBC’s commercial
arm, subject to confirmation of oversightarrangements. Consistent with the BBC’s
overall aim of building commercial income,this increase will allow us, as the BBC’s
principal commercial subsidiary, to invest
in growth initiatives.

Tom Fussell
CEO, BBC Studios
23 June 2022

Strategic Report77Commercial operations
BBC Studios continued
Production and Distribution
Production and Distribution covers all of
BBC Studios’ production activity in the UK
and globally, and its labels – along with
content sales, co-production, consumer
products and licensing.
Creative health
BBC Studios production businesses aroundthe world delivered over 2,400 hours ofcontent and a 56% increase in sales on lastyear. BBC Studios is the UK’s mostcommissioned maker of new content andmost awarded producer, winning 55 awards
for creativity and craft in the year from 288
nominations. 104 new commissions were
won during the year, of which 26 were forthird parties, including series two of Good
Omens for Amazon.
In entertainment, Strictly Come Dancing,
was the number one entertainment show
across all TV in the UK for 2021, with Rose
Ayling-Ellis’s moving dance tribute to thedeaf community voted TV moment of theyear and winning a BAFTA after year end.
There were unmissable real life stories
from BBC Studios Documentary Unit: Lifein Ten Pictures, which took a fresh look at
famous faces from Elizabeth Taylor to Tupac
Shakur, whilst feature-length documentary
Grenfell: The Untold Story for Channel 4,highlighted residents’ safety concerns,
filmed in the years before the devastating
fire in a tower block in west London.
BBC Studios’ Natural History Unit launched
its five-part landmark series The Green
Planet, taking a closer look at five distinct
habitats on Planet Earth, whilst the Science
Unit made Universe with Brian Cox, whichgave a new perspective on time and space.
Despite Covid-19 restrictions, nearly 70
hours of premium drama were made, in
addition to hundreds of hours of continuing
drama. Titles included Time by Jimmy
McGovern, Irish thriller Smother, which has
been recommissioned for a second season,
the 100th episode of Father Brown, and the25th anniversary for Silent Witness, as
Amanda Burton returned to reprise her roleas Sam Ryan. Casualty won Best Soap at theBroadcast Awards, EastEnders moved on to
its new set, enabling HD production, and thebusiness said farewell to Holby City after 23
years on screen.
In comedy, BBC Studios delivered a second
series of Trying for Apple TV+, series two of
Ladhood and Diane Morgan’s Mandy for BBC
Three and series six of the four-times BAFTA
award-winning Inside No. 9 for BBC Two.

Case study:
Making programmes across the UK

B

creating new editorial and production jobs
in each region. In addition to this, Dragons’
Den production will transfer to Glasgow
later in 2022.

Children in Need, Sports Relief, Comic Relief(with Sir Lenny Henry, pictured above) andEurovision moved from the capital to
Salford and Top Gear moved to Bristol,

BBC Studios has also invested in a newhome for the world-leading Natural
History Unit and Factual Entertainment
production in Bristol, which will open in
2022. With cutting-edge production
technologies, electricity from sustainablesources and a new central location, these
new offices will support and grow theteam as they continue to compete
successfully in the global market.

BC Studios has vibrant production
hubs in the nations and regionsof the UK, including Aberdeen,
Birmingham, Bristol, Cardiff, Glasgow
and Salford. During 2021-22, thebusiness relocated some key shows
and brands, to help increase creative
spend and decision-making outsideof London and build skills across theUK, as part of BBC Group strategy.

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Annual Report and Accounts 21/22

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Elsewhere, the Digital Originals teammade new format Gassed Up for BBC
Three, where rapper and self-confessed
petrolhead Mist subjected celebrity guests
to a series of ambitious challenges, and
Hot Property saw young singletons checkout the homes and friends of potential
suitors as part of a strong pipeline ofcontent aimed at younger audiences.
BBC Studios’ scripted labels (wholly, or
majority owned) had a successful year.
Short-form comedy drama Cheaters from
Clerkenwell Films aired on BBC One and The
Witchfinder with Daisy May Cooper, made byBaby Cow for BBC Two was its biggest new
comedy launch in seven years. Lookout Point
made the second series of fan favourite
Gentleman Jack with Suranne Jones, which
aired on BBC One and HBO shortly after
year end. BBC Studios increased its stake inHouse Productions, maker of Sherwood andthe Kate Atkinson adaptation Life After Life,
to 100%. The business sold its equity
holdings in Mighty and 72 Films in the year.

For indies where BBC Studios holds aminority stake, Moonage’s adaptation ofNancy Mitford’s The Pursuit of Love went out
on Sunday nights for BBC One and acrossthe rest of the world on Amazon.
Expectation’s Alma’s Not Normal, made for
BBC Two, won Broadcast and BAFTA TV
Craft Awards.
In unscripted, BBC Studios’ first look indie
partners had a good year, with Steve
McQueen’s three-parter Uprising, a Rogan,
Turbine and Lammas Park production,
winning an RTS award. Rogan also madeFreddie Mercury: The Final Act for BBC Two,
which garnered RTS, BAFTA and Rockie
nominations and achieved the highest
ratings in its slot across the whole year. The
Earthshot Prize inaugural live event, hosted
by Sir David Attenborough and Prince
William, produced by BBC Studios alongside
Silverback Films who made the series for
BBC One, picked up an RTS award.
Reaching international audiences
Content sales of £402 million were in excessof £400m for the third straight year, but
down 7% due to the impact of pauses in
production activity in 2020.
The international success of Dancing with theStars continues, with the format winning its
timeslot in eight countries around the world.
The US edition shone with an average
audience of 6 million viewers and 7.6%
share, putting it into ABC’s top fiveentertainment shows in 2021.
Series 13 of Doctor Who: Flux is the number
one show on BBC America, with continued
strong appeal for younger audiences. Top
Gear’s 31st series was in the top five shows
on BBC-branded channels in North America.
Global hit animation Bluey from Ludo Studio
was Disney Junior’s top ratings driver of2021 with kids aged two to five in the US and
wowed audiences in more than 60 countries.
As well as picking up awards and a number
one album in Australia, a tie-in with Airbnb
saw the Heeler’s house recreated for real
life. The brand’s success drove consumer
products sales up 9%. A sales anddistribution deal to outsource themanagement of BBC Studios’ physicalcatalogue was signed with SpiritEntertainment just before year end.
The business had some successful coproduction deals, including the biggest new
UK comedy of 2021, The Outlaws, written by
and starring Stephen Merchant, with series
two already shot. Channel 4’s Stath Lets
Flats with Jamie Demetriou made it onto
HBO Max and a reformat is in the pipeline
with Fox in the US. HBO also came on board
to co-produce Cash Carraway’s Rain Dogs,
starring Daisy May Cooper.

Internationally, BBC Studios Productions’scripted formats have proved popular. The
partnership with Lionsgate in the US has
resulted in successful remakes of British
comedies – Ghosts for CBS and Paramount+which was the year’s biggest comedy launchand Welcome to Flatch, inspired by ThisCountry which aired on Hulu in March.
Elsewhere, local versions of popular dramas
enjoyed success across many markets
including Luther (Rudra – The Edge ofDarkness) in India on Hotstar, which was its
most-watched drama ever in the first monthof launch; The Split in Turkey and Italy; Uncle
in South Korea and Doctor Foster (The Broken
Marriage Vow) in the Philippines.
Channels and Streaming (formerly
Branded Services)
Channels and Streaming includes
UK broadcaster UKTV, international
BBC-branded channels operated by
BBC Studios, the BritBox International
joint venture with ITV plc, BBC.com
and other streaming activities.
The UKTV channel network had an excellent
year, with its record share of commercial
impacts (SOCI) ensuring that it
outperformed the market, driving audienceshare and record levels of profit (up 105%)
as the advertising market made a quicker
than expected pandemic recovery. The
network’s channels performed very well,with Drama, Gold and Alibi increasing theirshare by 11%, 7% and 5%, respectively, inthe 2021 calendar year, and Dave upping its
share of 16-34 year olds by 14%.
Audiences responded enthusiastically to
an investment in new programmes, withsix out of the top ten network shows being
original content. Annika, starring Nicola
Walker, was UKTV’s most successful showof 2021 and Alibi’s top-performing titleof all time. Other original titles included
Meet the Richardsons (Dave), Secrets of
the London Underground (Yesterday) andHornby: A Model World (Yesterday).
Streaming service UKTV Play added one
million registered users in 2021 as thebusiness invested in its video on demand(VOD) strategy, upgrading technology,
adding staff and carrying out audience
research. Just before year end, theW channel went free to air, offering an
immediate boost to its audience, and the
network acquired a new Freeview
programme guide slot, enabling Drama+1
to move to a more prominent position.

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BBC Studios has deep and reciprocal
partnerships with its global customers,
supporting their businesses and audiences
around the world. Global channels
had a good year, with the renewal of
the StarHub contract, a new deal with
Singtel and Astro for BBC-branded
channels in south-east Asia and a longterm renewal with Canal+ in Poland.
Direct-to-consumer streaming services BBC
Select and BBC Podcasts Premium launchedin the US, and BritBox International (theglobal British streaming service owned by
BBC Studios in partnership with ITV)
continued to grow, with 2.4 million
subscribers in four countries.
BBC America is a branded linear channel in
the US, jointly owned with AMC Networks as
the operating partner. As well as airing thelatest seasons of Doctor Who and Top Gear, ahighlight for the year was the launch of the
final season of BBC America original KillingEve. As in the UK, linear viewership continues
to decline across the US market, but a very
good ad sales performance means thechannel continues to deliver strong profits.
As part of the Group strategy to build
commercial income, in July 2021 BBC Global
News (GN) joined the business, bringing theBBC’s commercial news operations into BBC
Studios and opening up further
opportunities to develop its news services
for international audiences. Editorial control
and operation of the BBC World News
channel became part of the public service
news operation, with its international
advertising and distribution provided by GN.
The BBC.com website and brand madea strong recovery back to pre-Covid-19
levels, as advertising sales bounced backquickly in many regions – particularly
Europe, Middle East, Africa and North
America, and the team signed a major
licensing deal with Meta for news andsports content outside the UK. Major
news events in Afghanistan and Ukraine
resulted in record breaking engagementwith the BBC News website, as audiencessought trusted, impartial and authoritative
journalism. Audiences continue to increase
for the premium video destination BBC
Reel, with growth of 9% on last year.
BBC.com invested in talent in the year,
reflecting the increased appetite for digitalnews content. Jennie Baird was appointed
into the newly created role of MD and EVPof Digital News and Streaming, Katty Kay
returned to the BBC as Presenter-at-Large,
BBC Studios, and US Special Correspondentfor BBC News, and the BBC announcedplans to double the size of its digitaljournalism team in the US and Canada.

Strategic Report79Commercial operations
BBC Studios continued
CultureAlready a key focus, putting people
first became the business’s overriding
priority in the pandemic. Alongsideprotecting wellbeing, BBC Studios
worked on building leadership, developing
talent and increasing both diversityof voices and a culture of inclusion, as
well as operating more sustainably.
Talent development across the businessstepped up a gear to help people learn andthrive in their roles, with a review identifying
over 50 future leaders with high potential
who could benefit from career fast-tracking
over the coming year. The popular
ScriptWorks and TalentWorks programmes(see case study) focused on scripted anddigital talent, respectively, whilst theAssistant Producer Accelerator Programme
was extended in January, now providing
work placements in factual entertainment,
natural history, entertainment and music,
documentaries and science for nearly 30
young people.
Over the last year BBC Studios has elevateddiverse voices and ensured a strong network
for the recruitment of new talent into every
area of the business through its three-year
Diversity and Inclusion strategy, ‘Valuing
Difference’. The business has made progressagainst its workforce diversity targets, andhas formed a Diversity and Inclusion Council
chaired by Production CEO Ralph Lee tocheck and challenge inclusion work.
A team of nine Global Inclusion Advocateswere appointed across BBC Studios
internationally to set up staff affinity
networks across all diverse communities.
New employment-based partnerships havebeen formed with Evenbreak, Leonard
Cheshire, the National Autistic Society, andBlack Young Professionals around improving
ethnic diversity, and inclusive leadershipworkshops have been delivered to over 600
managers across the globe.
Sustainability continues to be at the heart ofoperations. The business remains committed
to reducing its carbon emissions and hasaligned to the BBC-wide Net Zero sciencebased targets. Productions continue tomeasure and reduce their emissions, with
99% albert footprinted and 98% creating
an albert carbon action plan and achieving
albert certification in 2021/22. Teams alsoinnovate, such as for the Earthshot Prizeceremony, which delivered an outstanding
RTS award-winning global event for lessthan five tonnes of carbon emissions.

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Case study:
Nurturing the best emerging
creative talentAcreative business is only as goodas its creative people, andnurturing the next generation is
key. The TalentWorks team actively looks
for emerging talent. Its Creator
Residencies pair promising recruits withexperienced producers from the BBC
Studios family for a paid placement ofaround six months, to develop newcontent and ideas. TalentWorks coproduced Mariam Musa and Adeola
Patronne’s weekly entertainment podcast
Pressed (pictured above), which recently
secured over one million downloads andthe highest proportion of young listeners
on BBC Sounds.

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ScriptWorks works directly with budding
writers. Its prestigious Writers Academy
has a track record for training the mostsuccessful TV writers, with nearly 5,000
episodes of TV created. In the last year
alone, 13 of its alumni have securedcommissions or had episodes broadcast.
The Thousand Stories competition helps
writers from under-represented groups
start a TV writing career: in 2021, it hadover 500 entries to win a package ofmentoring, development and networking
opportunities. The new Writers’ Workshop
Scheme develops showrunners of the
future, creating original pilot scripts forthe wider BBC Studios family.

BBC Studios also signed the Climate Content
Pledge at COP26, along with the BBC Group,committing to responsible onscreen
portrayal of sustainability across all of its
content, as illustrated by sustainability soap
storylines run across EastEnders, Casualty
and Doctors during COP26. Programmessuch as The Green Planet, Dynasties, Greta
Thunberg: A Year to Change the World, Climate
Change: The Facts and Cook Clever Waste Less
raised awareness of important climate issues,and sustainable behaviour is portrayed inother programming, with storylines andsegments across high-rating BBC One
properties including Doctor Who and
The One Show.
Summary of financial performance
Financially, both sales and EBITDA reachedrecord levels this year. Sales were up £375
million on 2020/21, driven by an increase of
56% in production sales, after production
activity resumed following the shutdowns of2020. EBITDA was up £75 million, throughstrong margins on production sales and thehighest-ever profits for UKTV, up £49 million
on the prior year.
Content investment increased by 67% torecord levels and the cash position remained
strong with the business well positioned for
future growth. Net debt at year end,
excluding leases, was £135 million (2020/21:£15 million) and free cash flow £198 million(2020/21: £201 million).

Performance by operating segment
Sales
2021/22

EBITDA
2020/212021/222020/21

Production and Distribution
Channels and Streaming
Eliminations

1,150
536
(56)

929
383
(57)

93
135
(2)

66
85
0

Total

1,630

1,255

226

151

Note The Studios Executive Committee tracks its performance across two lines of business, Production and Distribution
and Channels and Streaming (formerly Branded Services)

Internationally, BBC Studios is distributing
Steven Moffat’s four-part drama Inside
Man, made by Hartswood Films for the
BBC and Netflix, and James Graham’s
six‑part drama Sherwood, made for BBC One
by BBC Studios scripted label House
Productions, about a series of murders
in a Nottinghamshire mining village, andfeaturing an all-star cast including Joanne
Froggatt and Stephen Tompkinson.
2022/23 will also be the first year for BBC
Studios Kids and Family, formerly Children’s
In-House Production, as a commercial
production unit, and the first full year of BBC
Global News as an integrated part of BBC
Studios Global Distribution.

It is a stated BBC priority to build
commercial income, and BBC Studios’ future
creative and financial success will be vitalto the BBC’s continuing impact in the years
ahead. With this new level of commercial
ambition, new governance arrangements
through the BBC Commercial Board, andadditional borrowing capacity, the businesshas a stretching target for international
growth over the next five years. To drive longterm revenue and profit growth, BBC Studios
expects to significantly increase investment
in content and services, which in may insome cases depress short-term profitability.

Looking ahead
BBC Studios has begun the 2022/23
financial year in a favourable position: amidst
continuing demand for high-quality content,a large proportion of sales from long-term
multi-year carriage deals and a robust
production slate, the business has solid cash
reserves and balance sheet. Whilst not
immune from wider geo-political and market
dynamics, where audience habits continue toshift and competition increases, BBC Studios
is a business in good shape with strong
prospects for growth.
In addition to coverage of the Queen’s
Platinum Jubilee in June 2022, major
content deliveries in the current year are
expected to include Prehistoric Planet forApple TV+, series two of Good Omens withMichael Sheen and David Tennant on
Amazon Prime Video and BBC One’s Here
We Go, produced by BBC Studios Comedy,
with an all-star cast including Alison
Steadman, following a successful pilot under
the title Pandemonium in 2020. BBC Studios’
scripted labels have a busy year ahead, withseries three of Happy Valley for the BBC
coming from Lookout Point, and dark
comedy The Birth Of Daniel F Harris for
Channel 4, made by Clerkenwell Films.

A tie-up with Airbnb saw the house from Ludo Studio s global hit animation Bluey recreated forreal life. Photo by Hannah Puechmarin

Return to contents

Strategic Report81Commercial operations
BBC Studioworks
Overview
BBC Studioworks is a wholly owned
commercial subsidiary of the BBC, providing
television studios and post production
services to all the major UK broadcasters
and production companies. The past 12
months (2021/22) were an extraordinary
year which saw the business achieve its bestcommercial performance of the past decade.
Sales exceeded expectations at £44 million,
an increase of 18.3% year-on-year,
delivering EBITDA of £8 million. This robust
financial performance means BBC
Studioworks is providing its highest-everreturn back to the BBC of £3 million.
Strategy
Whilst attention was naturally placedon the Covid-19 recovery, with emphasison the welfare of its employees andclients, BBC Studioworks made solid
progress against its strategic priorities
with a multi-million-pound investment
across its footprint and its people.
The business announced its expansion
across the UK, becoming the operator ofa new multi-camera TV studio in KelvinHall, Glasgow, opening in autumn 2022.
This marks stage one of its ambitions toopen additional studios across the country
and further drive commercial income.
Kelvin Hall will support the developmentof a skilled and diverse Scottish workforce,

boosting local jobs, and is in direct
response to growing industry demand
to make more TV shows in Scotland.

reducing carbon footprint by 80% over the
next three years and using 100% renewableenergy across the footprint by 2024.

Significant focus was placed on evolving
the company’s workforce and skillset, with
substantial investment in learning anddevelopment to enable progression,
enhance culture and create a modern andefficient business. To inspire and develop thenext generation of talent, BBC Studioworks
invested in local communities via outreachto schools. It worked in partnership with Rise
and The Prince’s Trust to deliver live
broadcasting workshops to help make theTV production industry more accessible, anda mentoring scheme in collaboration with
ScreenSkills and Elstree Screen Arts
provided much-needed support for schoolleavers from underrepresented groups.

Bringing ideas to life
Over the past year the company continued
to facilitate unique, high-impact content for
BBC Studios and multiple independent
production companies. Returning
productions included Strictly Come Dancing
and The Graham Norton Show for BBC One,
Saturday Night Takeaway, Good Morning
Britain, This Morning and The Jonathan Ross
Show for ITV, The Last Leg for Channel 4 andA League of Their Own for Sky Max.

The company also invested heavily in its corefootprint via new equipment purchases anda refresh of its facilities to enhance its
employee and customer experience.
Acute attention was paid as to how it can
provide solutions to reduce the negativeenvironmental impacts arising from TV
production. As a result, the business has
increased its ambition and action bylaunching its sustainability strategy
outlining its aim to be net zero by 2030.
Good progress has been made against its
core sustainability goals which include

The business won a host of new productions
including Ant and Dec’s Limitless Win
for ITV, Would I Lie to You? for BBC
One, Never Mind The Buzzcocks for Sky
Max and Question Team for Dave, andcontinued to provide services to BBC’s
EastEnders, Holby City, ProgrammeAcquisitions and Persian Television.
The post-production team edited a numberof productions including Strictly Come
Dancing, It Takes Two and The Goes WrongShow for the BBC, The Martin Lewis MoneyShow and Saturday Night Takeaway for ITV
and The Russell Howard Hour for Sky Max.
Forward view
BBC Studioworks begins the new financial
year in a solid position, but the industry isfacing a skills crisis which is a real andlong-term threat. To deliver its growthambitions and continued operational
excellence, the business requires new skills
and talent. Strengthening its talent pipeline
to ensure a diverse and inclusive workforce
fit for the future will be a core priority into
2022/23 and beyond.
With the inexorable rise in streaming still
driving demand for UK studio space, thecompany continues to operate in an
increasingly competitive market. This
backdrop will shape future plans as thebusiness assesses where additional growth
will come from and focuses on driving
commercial income through best-in-classcustomer service and further expansion
across the UK.

BBC Studioworks’ new multi-camera
TV Studio at Kelvin Hall, Glasgow
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Annual Report and Accounts 21/22

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BBC One’s Doctor Who

GOVERNANCE
This section looks in detail at the role of the BBC Board andincludes reports from the Board’s delegated sub-committees.
The section also includes detail on our overall approach tocorporate governance, our regulatory position and affirmationof the Board’s duties in relation to the Annual Report.

p.84

p.87

p.96

BBC Board

Remuneration report

Pay disclosures

p.105

p.128

p.129

Audit and Risk Committee
reportCommercial Holdings
Board report

Editorial Guidelines andStandards report
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Governance Report83Introducing our Board
The Board is constituted under theterms of the BBC’s Royal Charter andAgreement. It is responsible for ensuring
the BBC fulfils its mission and public
purposes, as set out in the Charterand Agreement.
The Charter sets out the Board’s
responsibilities, its membership and therequirement for a number of Committees tosupport its work. The Board is responsible
for the proper, effective and independent
exercise of all the functions of the BBC.
It sets the strategic direction for the
corporation and approves the creative remit
and the budgets for the BBC’s services.
The Board is chaired by Richard Sharpand consists of up to ten non-executive
directors – including the Chairman – andfour executive directors, including the
Director-General. The Chairman and thefour nations’ non-executive directors
are appointed by HM The Queen, on therecommendation of Ministers acrossthe UK. The remainder of the Board
are appointed by the BBC, through theBoard’s Nominations Committee.

Richard Sharp
Chairman

Tim Davie CBE
Director-General and
Editor-in-Chief

Shumeet BanerjiNon-executive director

Sir Damon Buffini
Non-executive director

Dame Elan Closs Stephens DBE
Non-executive director
Member for Wales

Shirley Garrood
Non-executive director

Sir Robbie Gibb
Non-executive director
Member for England

Muriel Gray
Non-executive director
Member for Scotland

Ian Hargreaves CBE
Non-executive director

Charlotte Moore
Chief Content Officer

Sir Nicholas Serota CH
Senior Independent Director

Leigh Tavaziva
Chief Operating Officer

Full biographies of all Board members,
including their other roles, can be found on
the BBC’s website: bbc.com/aboutthebbc/
whoweare/bbcboard.
The Board delegates some of its
responsibilities to a number of subcommittees. It is required to have a
Remuneration Committee, a Nominations
Committee and an Audit and Risk
Committee. The work of these committees iscomplemented by the work of a number ofother committees, established by the Board– these include the Fair Trading Committee,
the Editorial Guidelines and Standards
Committee, and committees for each of thefour nations of the UK. The Commercial
Board oversees the BBC’s commercial
subsidiaries on behalf of the Board.
This section includes reports from thosecommittees, which are chaired by andpredominantly made up of non-executive
directors, as required by the Charter.
These pages show the membership of theBoard as at June 2022.
During the year, there have been a numberof changes to Board membership. Tom
Ilube stepped down from the Board at
the end of June 2021. Baroness Tanni
Grey-Thompson and Steve Morrison leftthe Board in December 2021 and January2022 respectively, at the end of their terms
of appointment. Fran Unsworth also left
her role as Director, News and Current
Affairs in January 2022 and stepped
down from the Board on her departure.

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Annual Report and Accounts 21/22

Robbie Gibb joined as the member for
England in May 2021 and the Board wasjoined by three new members in January
2022. Muriel Gray replaced Steve Morrisonas the member for Scotland. Shumeet
Banerji and Damon Buffini joined in placeof Tanni Grey-Thompson and Tom Ilube.
Deborah Turness will join the Board laterin 2022, when she takes up her role as CEO,BBC News. There is currently no Board
member for Northern Ireland. Thisappointment is the responsibility of DCMS
and requires the involvement of theNorthern Ireland Executive. A recruitment
process for the role is currently underway.

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Detail on members’ attendance at Boardand sub-committee meetings is set out on
page 104.

Corporate compliance report
We comply with corporate governancebest practice
The BBC’s corporate governance framework
is defined in its Charter and theaccompanying Framework Agreement. The
Charter and Agreement can be found on the
BBC website at: https://www.bbc.com/
aboutthebbc/governance/charter.

Cost of compliance
In order to ensure that we complied with all
relevant legislation that the BBC is subject
to as a broadcaster and a public body, in
2021/22 we incurred compliance costs
estimated at £19 million (20/21: £15 million).
This figure includes the BBC’s £12 million fee
to Ofcom.

The Charter requires the BBC to have regard
to generally accepted principles of good
corporate governance. Although the BBC is
not a listed company, it has opted to apply
best practice and follow the provisions of the
Financial Conduct Authority’s Listing Rules
and the UK Corporate Governance Code2018 (“the Code”), where appropriate. Thisdelivers the governance standards
applicable to companies quoted on an
EU-regulated stock market.

Regularity
The management of all of the BBC’s
resources must accord with the provisionsof the Charter, Framework Agreement andother agreements the BBC enters into with
Government Ministers. Transactions thatmeet the intended purposes and are in linewith relevant authorities are considered tobe ‘regular’; those that do not meet thesecriteria are considered ‘irregular’. Fraudulent
transactions and fines or penalties aretreated as ‘irregular’. In addition to the
NAO’s review of regularity, Internal Audit
conducted a review of the BBC’s regularity
compliance framework, including theprocesses, controls and assurance
mechanisms in place to manage theregularity risk in areas assessed as being
at greatest risk of irregularity. The scopeof the review considered the appropriate
use of licence fee money, the assessmentof material changes, operating withinborrowing limits and the risk of fraud.
No material exceptions were identified asa result of this review and management
are not aware of any transactions that
could be considered as irregular.

During the year, an external Board
Effectiveness Review was conducted,
which included an assessment of the
Chairman’s performance.
There are a number of components of theCode that are either not appropriate to thecircumstances of the BBC or are overridden
by compliance with the BBC’s Charteror Agreement.
This relates to:— provision 3, 4, 36 and 37, relating toengagement with shareholders andalignment to their interests which, giventhat the BBC does not have shareholders
in the same way as a company, does not
apply. However, the BBC does have a wide
range of measures in place to ensure
engagement with external stakeholders.
— provision 5, matters set out in section
172 of the Companies Act 2006, which isrelevant to companies only and overriden
by the Public Purposes of the BBC as
described in the Charter.
— provision 18, membership of the Board,which is governed by the articles of
the Charter ​— provision 25 and 26, approach taken
to the appointment or reappointmentof the external auditor, whichis governed and determined byclause 55 of the Agreement.
However, the BBC has fully complied withthe corporate governance requirements of
the Charter and Agreement and has also
fully complied with the Code.

Return to contents

Governance Report85Governance
Executive Committee
The Director-General chairs an Executive
Committee, which is responsible for the
day-to-day running of the BBC.
The Executive Committee is responsible fordelivering the BBC’s services, in accordancewith the strategy agreed by the Board, andfor all aspects of operational management.
The Executive Committee meets regularly
and oversees key strategic projects andproposals of importance to the wholeorganisation. It takes regular reports on

audience and financial performance, as wellas maintaining oversight of pan-BBC policy
and operational issues. Information on the
remuneration arrangements of the
Executive Committee in 2021/22 can befound in the Remuneration report on pages
87 to 95.
In January 2022, Fran Unsworth stepped
down from her role as Director, News andCurrent Affairs and was replaced on the
Executive Committee by Jonathan Munro as

the interim Director, pending the arrival of
Deborah Turness as CEO, News. Bob
Shennan also stepped down from the
Executive Committee at the end of March2022 and the role of Managing Director was
closed. Full details on the membership ofthe Executive Committee can be found at:bbc.com/aboutthebbc/whoweare/exco.
These pages show the membership of the
Executive Committee as at June 2022.

Tim Davie CBE
Director-General and
Editor-in-Chief

Kerris BrightChief Customer Officer

Tom Fussell
CEO, BBC Studios

Charlotte Moore
Chief Content Officer

Gautam Rangarajan
Group Director of Strategy
and Performance

June Sarpong
Director, Creative Diversity

Rhodri Talfan Davies
Director, Nations

Leigh Tavaziva
Chief Operating Officer

Next Generation Committee
The BBC Next Generation Committee(NGC) was established by the DirectorGeneral in late 2017 with the purpose ofadvising senior leaders and ensuring
younger people’s voices and ideas areheard at executive level. The NGC is
composed of approximately 15-16 younger
members of staff from across theorganisation, usually for a period of 12-15
months. In last year’s Annual Report we
noted that the Committee’s work had beensignificantly impacted by the Covid-19
pandemic. We extended their term until
July 2021 and we reported on their work inlast year’s Annual Report.
The new cohort of Committee members
started in January 2022 and their work
focusses on advising the Executive
Committee around recruitment andretention; how to build networks tomaximise internal resources; supporting
disabled staff; and strategies for improving
local representation in content.

Committee members in 2020/21

Committee members in 2022

Becca Bryers (chair)

Georgina Pearce (co-chair)

Freya Bronwin

Sam Ripman (co-chair)

Malachi Butt-Mukete

Emma Arbuckle

Aaron Cooper

Becky Bailey

Beth Dinnall

Myles Bonnar

Jordan Dunbar

Jemma Clarke

Simone Eubanks (joined October 2020)

Adam Clarkson

Emmanuella Kwenortey

Liz Clements

Lina Mar

Ryan Dobney

Shannon McGowan

Adam ElandDrew Miller Hyndman (joined November
2020)

Simone Eubanks

Louise Ogunnaike (retired from theCommittee in November 2020)
Madusha Pallawela
Ahmed Razek (retired from the Committeein October 2020)

Ben Tattersall Smith
Keely Watson

Annual Report and Accounts 21/22

Rachel Griffith
Drew Hyndman
Daniel Kassim
Euan Sime
Dillon Wilson
Julie Yoonnyung Lee

Jacob Rickard

86

Jonathan Munro
Interim Director, BBC Newsand Current Affairs

Return to contents

Remuneration report
It has been a pleasure to Chair the Remuneration Committee
during the last year, as the BBC continued to adapt to postpandemic ways of working whilst also continuing the work toembed clear and consistent pay processes and principles acrossthe organisation. As a Committee, we noted the huge changes inworking patterns across the nation, which have also been
replicated in the BBC. The commitment and effort of employees
across the organisation has been remarkable during this period
and confirms that the enduring mission of the BBC remains a key
driver for those working here.
During the year, we met formally as a Committee five times, withother business conducted offline as necessary. We were joined, mosthelpfully, by Dame Elan Closs Stephens as Chair of the Commercial
Holdings Board for discussion of commercial matters. Steve Morrison
and Tanni Grey-Thompson continued as members of the Committee
until both departed the Board at the end of 2021. I want to thankthem for their work and support over the past four years. They haveboth made such a positive contribution to remuneration matters in
the BBC. I was then joined on the Committee by Richard Sharp andMuriel Gray, both of whom will remain as members in the coming
year, when Sir Robbie Gibb will take on the Chair. Sir Damon Buffini,as Chair of Commercial Board will also join the Committee fordiscussion of commercial issues.

As part of our regular business, we monitored data and reports on
the BBC’s headcount, pay gaps and overall pay bill. As this annual
report shows, the BBC has reduced headcount overall by 938 thisyear, with a reduction in senior leaders of seven. We also discussed indetail the data behind the BBC’s black, Asian and ethnic minority pay
gap as well as the disability pay gap. Detail on all the BBC’s pay gaps
can be found on pages 65 to 67. Generally, gaps at the BBC are
significantly smaller than those in the wider media world, but there
is still room for improvement. Lastly, we also undertook our annual
review of the BBC’s disclosures of those paid over £150k from licencefee funds and the list can be seen on pages 96 to 103.
It has been a privilege to chair the Committee during the past few
years. I am confident that my successor, Sir Robbie Gibb, and the
new members of the Committee are well placed to guide policy on
remuneration during what will be a critical phase for the BBC. Witha new licence fee deal in place, it will be crucial that the BBC – bothpublic service and commercial – continues to be able to attract andretain the best creative talent, to ensure that the greatest value isdelivered to audiences in the UK and around the world.
Nicholas Serota
Chair, Remuneration Committee
23 June 2022

During the past year, our focus as a Committee was largely on thosecommercial matters. The Remuneration Committee has oversight of
all incentive schemes in the BBC, and we must approve thearrangements for any scheme that includes a member of the
Executive. Over the year, we have worked with the Executive to
conduct a strategic review of incentive schemes in BBC Studios. Aftermuch positive debate, we reached agreement on a new structure thatwill seek to incentivise those eligible for the company bonus scheme
to focus on long-term commercial growth and which will reward
those who perform exceptionally in driving success against robust
and stretching overall targets. I know the Remuneration Committee
will continue to work closely with the new Commercial Board onthese issues and will ensure a clear and consistent process for rewardin Studios.

Return to contents

Governance Report87Governance
Remuneration report continued
This report sets out the BBC’s remuneration policy for executive
directors and senior leaders and details the annual remuneration
received by the members of the BBC Board and Executive
Committee for the 2021/22 financial year. This includes ourannual disclosure of pay as required by the BBC’s Charter.
It has been prepared on the basis that the requirements of the Large
and Medium- sized Companies and Groups (Accounts and Reports)
Regulations 2013 and Listing Rules apply to the BBC wherever these
disclosure provisions are relevant. The sections on pensions andremuneration received by this group have been audited by the BBC’s
external auditors.
The Remuneration Committee’s constitution and operation
The Board’s Remuneration Committee, since 1 April 2017, has been
responsible for setting the remuneration strategy for the BBC Groupand for all aspects of the remuneration of the Executive Committee
and Board executive directors. Its members are non-executive
directors: Robbie Gibb and Muriel Gray, and BBC Chairman Richard
Sharp. Robbie Gibb has chaired the Committee since May 2022.
The Remuneration Committee takes specialist advice from external
professional advisers on some matters, particularly those relating tomarket practice. During the year, independent advice was received
from Willis Towers Watson on matters related to executive
remuneration and periodically in the form of market assessments,and from PricewaterhouseCoopers LLP on broader incentive designin relation to our commercial subsidiaries.

Senior Leadership Remuneration Policy
The Remuneration Committee is committed to setting appropriate
levels of pay for executive directors that attract, motivate and retain
the best people to lead the BBC and provide value for the licence fee
payer. The Committee agreed that the BBC’s pay principles should
apply to all staff, executive directors and senior leaders across the
BBC Group. The pay principles will apply as set out in the table on
page 62.
The BBC has extended its union-negotiated Career Path Framework
to include an additional non-union negotiated career level band
called SL (senior leader). This includes job pay ranges for the mostsenior jobs. In framing the BBC’s pay policy the Committee gives fullconsideration to the best practice provisions of the UK Corporate
Governance Code.
Executive directors and senior leaders are not entitled to the annual
pay increase agreed with the Joint Unions and are not automaticallyentitled to any form of annual increment or progression payment.
Pay decisions for executive directors can only be taken by the
Remuneration Committee and pay decisions for senior leaders by
the Exceptions Committee, to ensure consistency and fairness.
A summary of the remuneration policy for Senior Leaders is provided
on the following page.

The Committee makes sure that executive remuneration is aligned to
the BBC’s purpose and values. It ensures our arrangements aretransparent and easily understood, and that remuneration levels areproportionate to contribution.
The Committee has oversight of pay trends via regularly quarterly
reports from management on Reward activity, key annual metrics
and data relating to the monitoring of senior leader pay andseverance approvals.
BBC pay principles
There has been a continued focus on pay at all levels of the BBC
allied to an increased focus on fair pay. Several initiatives havebeen undertaken to ensure our Fair Pay Principles are embedded
throughout the organisation and to provide a framework inwhich fair and consistent pay decisions are taken.
1. Fair
2. Consistent
3. Transparent
4. Competitive
5. Clear
The BBC operates within a fast-changing market with intensecompetition for talent, and dramatic growth among some new
media, streaming and digital technology companies offering highly
attractive packages. We therefore continue to balance marketcompetitive pay with the need to demonstrate value for money tothe license fee payer. This balance is reflected in our market informed
job pay ranges which continue to be discounted against the market,
where external analysis support this.
We believe that these Pay Principles ensure the BBC continues to beable to appeal to all those who are excited about the opportunities
of working in public service broadcasting.
More detail on this can be found in the Our People section on pages
59 to 63.

88

Annual Report and Accounts 21/22

Return to contentsComponent

Purpose and link to strategy

Operation

Maximum opportunity

Base pay

For executive directors, base pay isdefined by reference to the market
median for total direct remuneration(salary, annual bonus and annualised
long-term incentive). It is expectedthat this will result in remuneration
being significantly discounted tomarket as no long term incentives areoffered at the BBC.

The following factors are used todetermine the level of base pay set foran executive director or senior leader:

No prescribed maximum salary or
maximum increase for executive
directors.

— scale and complexity of role

Senior leaders have job pay ranges witha minimum and maximum; where an
individual is above the maximum of
their pay range owing to legacy orcommercial reasons their pay will
not increase further.

For senior leaders, job pay ranges are
informed by market median total
target cash (base salary, allowances
and target bonus) which guide
pay decisions.

Salaries are reviewed annually, withincreases taking effect from 1 August.
A budget is agreed and distributed
according to the above factors.

No senior leader is paid below thejob pay range minimum for their roleand pay ranges are transparent toboth senior leaders and the wider
BBC workforce.
Variable Pay

Benefits– Pension— performance and contribution— market factors and affordability

Pay ranges for senior leaders arereviewed annually and updated
as required.

Executive directors and some seniorleaders employed in the BBC’scommercial businesses are eligible fora performance-related annual bonus.
Such bonuses are wholly funded by
the commercial businesses and not
the licence fee. It is reward for theachievement of short-term strategic
goals and profit growth.

Executive directors and senior leadersin the Public Service are not entitled
to receive a performance bonus.

No executive director in the PublicService has received a bonus since
2008.

Payments of a bonus in the BBC’scommercial businesses are subject tothe achievement of an overall target
based on a mix of headline profit andcash flow for their business.

For 2021/22, one executive director –CEO, BBC Studios – participated in abonus scheme. The incentive scheme
has a target bonus of 40% and amaximum of 50%.

Pensions are offered in accordancewith the pension arrangements
offered to all BBC employees.

Executive directors and senior leaders
can elect to join the BBC’s defined
contribution scheme LifePlan.

In addition to pensions, life assurance
is provided in line with arrangements
provided to all BBC employees.

The BBC’s defined benefit scheme isclosed for new joiners.

Current policy provides a defined
contribution scheme with no salary cap
and a maximum employer contributionof 10% of salary.

Benefits –In April 2012, the BBC removed the car
Transport/travel allowance benefit for all new executive
directors to ensure that future policyaligns with arrangements for all BBC
employees.
Car allowance benefit for Senior
Leaders was removed in 2012 for all
new starters.
Benefits –Private Medical
Insurance (PMI)— knowledge, skills and experiences

In April 2011, the BBC removed theprivate health care benefit for all new
executive directors and senior
managers and aligned toarrangements for all BBC employees.

Existing members of a defined benefit
pension scheme are capped at the
Executive directors are provided withmaximum salary for their pension
death in service life assurance cover ofscheme or are subject to a cap infour times their basic salary.
pensionable salary growth.
Some senior leaders are still in receipt
of a legacy car allowance.
The Director-General is entitled tothe use of a car and driver but has
no entitlement to a personal car
allowance or fuel allowance. The
Chairman is subject to the samearrangements.
All executive directors now receivea legacy allowance in lieu of PMI.

There is no prescribed maximum as thisis an historic benefit which has not beenoffered to new starters since 2012.

The maximum level of cover offered isfamily cover.
This is an historic benefit.

Following consultation, it was agreed
to remove the PMI benefit for
executive directors and senior leadersfrom 1 April 2019.
Employment
contracts andseverance

Employment contracts of executive
directors have a maximum notice
period of six months, but are subject
to earlier termination for cause.

There is no contractual entitlement
to any additional remuneration in theevent of early termination other thanin the case of termination for reasonof redundancy.

Return to contents

In the event of redundancy, all executive
directors are entitled to payments equal
to one month per year served up to
maximum payment of £150,000.

Governance Report89Governance
Remuneration report continued
Component

Purpose and link to strategy

Operation

Maximum opportunity

Other
remuneration

There is no entitlement to any other
remuneration, so no such payments
were made in the year.

Should any additional remuneration
be proposed, full consideration is
given to the reputational risk to the
BBC and any such payment would
require the approval of theRemuneration Committee, prior
to implementing.

There is no prescribed maximum.

PensionExecutive directors who joined the BBC before 1 December 2010 are eligible to continue to participate in the BBC Pension Scheme (‘theScheme’), which provides for pension benefits on a defined benefit basis. Executive directors who joined the BBC on or after 1 December 2010
are eligible to join LifePlan, which is the BBC’s defined contribution arrangement. The BBC pays matching contributions to LifePlan for
employee contributions at 5%. Employee contributions between 6% and 7% are matched plus an additional 1%.
Employee contributions of 8% or more receive the maximum employer contribution of 10%. There is no maximum pensionable salary forcontributions to LifePlan.
Executive directors who decide not to join LifePlan or are not already an existing member of the Scheme are, subject to meeting the relevant
criteria, automatically enrolled into the National Employment Savings Trust (NEST). The BBC paid 3% and employees paid 5% of qualifying
earnings to NEST in 2021/22 in line with statutory requirements. Individuals can choose to opt out of this.
Executive directors’ pension arrangements may be reviewed and amended in response to changes in legislation or similar developments.
Features of the BBC’s pension arrangements that our executive directors participate in alongside other BBC employees are provided in thetable below.
Details of the BBC Pension Scheme are available at www.bbc.co.uk/mypension/.

BBC Pension Scheme defined benefit

LifePlan defined
contribution

Old benefits

New benefits

CAB 2006

Date closed

30 September
1996

31 October
2006

30 November
2010

Accrual60ths accrual

60ths accrual

1.67% accrual
Adjusted in linewith inflation

1.67% accrual
Adjusted in linewith CPI

SalaryFinal pensionable

Final pensionable

Career averagerevalued earnings

Career averagerevalued earnings

60

60

65

65

Earnings cap

Joined before
1 June 1989
uncapped, capped
otherwise£172,80 0

Capped at£172,80 0

Capped at£172,80 0

Capped at£159,0 0 0

Pensionablesalary growth
before theearnings cap
is applied

Limited at 1% p.a.

Limited at 1% p.a.

Limited at 1% p.a.

No restriction

N/A

N/A

7.50 %

7.50 %

4%

6%

Minimum
employeecontribution
is 5%

5% of
qualifying
earnings(2021/22)

SchemeNormalpensionable age

Employeecontribution(% of pensionablesalary)CAB 2011

National Employment
Savings Trust (NEST)
defined contribution(auto enrolment
arrangement)

1 January
Open to all
Open to all2012 eligible employees eligible employees
BBC will
contributea maximum of
10% of salary
if employee
contributes
8% with lower
sliding scale

BBC will
contribute 3%of qualifying
earnings(2021/22)

N/A

N/A

Uncapped Minimum earnings£6,240p.a.
Maximum
earnings£50,270p.a.
(2021/22)

Annual remuneration of the BBC Board and Executive Committee – detail of remuneration received
The table on the following page provides full details of the remuneration received by all BBC Board members for 2021/22.
Details of the chairs of each of the various BBC committees can be found on page 84. Each Chair receives £5,000 per annum in addition
to their base fees. These fees are included in the table below. All fees are shown pro-rata where appropriate.

90

Annual Report and Accounts 21/22

Return to contents

BBC Board (audited)
Details of remuneration received (values in £000s)
Year

Base pay1

Taxablebenefits2

Pensionrelated single
figurePerformance
relatedTotal

15/02/2025

2021/222020/21

£160
£20

£7
£1

£0
£0

£0
£0

£167
£21

16/02/2017

15/02/2021

2021/222020/21

£0
£88

£0
£5

£0
£0

£0
£0

£0
£93

Shumeet Banerji 5

07/01/2022

31/12/2025

2021/222020/21

£8
£0

£0
£0

£0
£0

£0
£0

£8
£0

Damon Buffini 5

01/01/2022

31/12/2025

2021/222020/21

£8
£0

£0
£0

£0
£0

£0
£0

£8
£0

Shirley Garrood

03/07/2019

02/07/2023

2021/222020/21

£38
£38

£0
£0

£0
£0

£0
£0

£38
£38

Robbie Gibb 607/05/2021

06/05/2024

2021/222020/21

£38
£0

£0
£0

£0
£0

£0
£0

£38
£0

Muriel Gray5

03/01/2022

02/01/2026

2021/222020/21

£9
£0

£0
£0

£0
£0

£0
£0

£9
£0

Tanni Grey-Thompson7

03/04/2021

31/12/2021

2021/222020/21

£25
£33

£0
£0

£0
£0

£0
£0

£25
£33

Ian Hargreaves

03/04/2020

02/04/2023

2021/222020/21

£38
£38

£0
£0

£0
£0

£0
£0

£38
£38

Tom Ilube 7

03/04/2020

30/06/2021

2021/222020/21

£10
£38

£0
£0

£0
£0

£0
£0

£10
£38

Steve Morrison7

03/04/2021

02/01/2022

2021/222020/21

£29
£38

£0
£0

£0
£0

£0
£0

£29
£38

Nicholas Serota 8

03/04/2021

02/04/2024

2021/222020/21

£38
£38

£0
£0

£0
£0

£0
£0

£38
£38

Ashley Steel10

03/04/2017

01/12/2020

2021/222020/21

£0
£25

£0
£0

£0
£0

£0
£0

£0
£25

Elan Closs Stephens9

20/01/2021

20/07/2023

2021/222020/21

£43
£43

£0
£0

£0
£0

£0
£0

£43
£43

2021/222020/21

£444
£399

£7
£6

£0
£0

£0
£0

£451
£405

Appointment
term start dateAppointment
term end dateNon-executive directors
Richard Sharp 3

16/02/2021

David Clementi4

Total non-executive directors
Executive directors
Tim Davie11

01/09/2020

n/a

2021/222020/21

£494
£429

£2
£1

£26
£41

£0
£0

£522
£471

Tony Hall12

03/04/2017

30/09/2020

2021/222020/21

£0
£188

£0
£2

£0
£0

£0
£0

£0
£190

Ken MacQuarrie12

03/04/2017

31/12/2020

2021/222020/21

£0
£244

£0
£2

£0
£0

£0
£0

£0
£246

Charlotte Moore

01/09/2020

31/08/2022

2021/222020/21

£425
£402

£2
£2

£39
£34

£0
£0

£466
£438

Leigh Tavaziva13

01/02/2021

31/01/2023

2021/222020/21

£400
£67

£0
£0

£0
£0

£0
£0

£400
£67

Fran Unsworth14

01/04/2019

27/01/2022

2021/222020/21

£280
£340

£2
£2

£0
£0

£0
£0

£282
£342

Total executive directors

2021/222020/21£1,599£1,670

£6
£9

£65
£75

£0
£0

£1,670£1,754

Total Board

2021/222020/21£2,043£2,069

£13
£15

£65
£75

£0
£0

£2,121£2,159Return to contents

Governance Report91Governance
Remuneration report continued
1 Fees are shown pro-rata where members left or joined during the year
2 Taxable benefits car allowance, private medical insurance/legacy allowance and other taxable expenses The Chairman and the Director-General are entitled to the use of a car anddriver but have no entitlement to a personal car allowance or fuel allowance In 2021/22, the current Director-General has used the services of car and driver for business purposes only
3 Richard Sharp receives a fee of £160,000 per annum, set by the DCMS, as Chairman of the BBC Board This is donated to charity by the BBC, paid after National Insurance Contributions,and is administered through the BBC payroll giving scheme
4 David Clementi stepped down from the Board and as Chairman on 15 February 2021 and therefore received no remuneration in 2021/22
5 Damon Buffini, Muriel Gray and Shumeet Banerji joined the Board on 1, 3 and 7 January 2022 respectively No remuneration was therefore received in 2020/21
6 Robbie Gibb joined the Board on 7 May 2021 and therefore no remuneration was received in 2020/21
7 Tom Ilube stepped down from the board on 30 June 2021 Tanni Grey-Thompson stepped down from the Board on 31 December 2021 after her initial term had been extended Steve
Morrison stepped down on 2 January 2022 after his initial term was extended
8 Nicholas Serota’s original term on the board was extended to 2 April 2024
9 Elan Closs Stephen’s original term on the board was extended to 20 July 2023
10 Ashley Steel stepped down from the Board on 1 December 2020 and therefore received no remuneration in 2021/22
11 The role of Director-General is a permanent position on the Board Tim Davie was appointed as Director-General on 1 September 2020 His salary for 2020/21 reflects the proportionof his time spent as CEO, BBC Studios and as Director-General His salary for 2021/22 is pro-rated to reflect an increase in September 2021
12 Tony Hall stepped down from the Board and as Director-General on 30 September 2020 Ken MacQuarrie stepped down from the Board on 31 December 2020, and in September 2021
received a contractual severance payment of £150,000 redundancy
13 Leigh Tavaziva was appointed to the Board on 1 February 2021
14 Fran Unsworth stepped down from the Board on 27 January 2022

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The table below provides full details of the remuneration received by all BBC Executive Committee members for 2021/22, compared to theprevious year. Remuneration for members shown below relates solely to the period of time when they served on the Executive Committee.
For full annual amounts, please refer to the Disclosures section on page 100.
BBC Executive Committee members (audited)
Details of remuneration received (values in £000s)
Date appointed toCommittee

Year

Base pay

Taxablebenefits

Pensionrelated single
figure1

Performance
relatedTotal

Tim Davie 2

01/11/2012

2021/222020/21

£494
£429

£2
£1

£26
£41

£0
£0

£522
£471

Charlotte Moore 3

06/07/2016

2021/222020/21

£425
£402

£2
£2

£39
£34

£0
£0

£466
£438

Leigh Tavaziva 401/02/2021

2021/222020/21

£400
£67

£0
£0

£0
£0

£0
£0

£400
£67

Fran Unsworth 5

01/01/2018

2021/222020/21

£280
£340

£2
£2

£0
£0

£0
£0

£282
£342

Wendy Aslett 601/11/2019

2021/222020/21

£0
£63

£0
£1

£0
£15

£0
£0

£0
£79

Kerris Bright

18/06/2018

2021/222020/21

£360
£360

£0
£0

£0
£0

£0
£0

£360
£360

Rachel Currie 6

01/11/2019

2021/222020/21

£0
£63

£0
£1

£0
£3

£0
£0

£0
£67

Tom Fussell 8

01/09/2020

2021/222020/21

£421
£230

£1
£1

£0
£0

£210
£27

£632
£258

Tony Hall 9

02/04/2013

2021/222020/21

£0
£188

£0
£2

£0
£0

£0
£0

£0
£190

Glyn Isherwood 6

09/04/2018

2021/222020/21

£0
£294

£0
£0

£0
£0

£0
£0

£0
£294

Sarah Jones 6

01/05/2019

2021/222020/21

£0
£116

£0
£1

£0
£0

£0
£0

£0
£117

David Jordan 6

01/04/2018

2021/222020/21

£0
£76

£0
£0

£0
£0

£0
£0

£0
£76

Ken MacQuarrie 7

22/09/2016

2021/222020/21

£0
£244

£0
£2

£0
£0

£0
£0

£0
£246

Jonathan Munro10

28/01/2022

2021/222020/21

£60
£0

£0
£0

£6
£0

£0
£0

£66
£0

Matthew Postgate 601/04/2016

2021/222020/21

£0
£133

£0
£0

£0
£6

£0
£0

£0
£139

James Purnell 6

19/03/2013

2021/222020/21

£0
£131

£0
£0

£0
£13

£0
£0

£0
£144

Gautam Rangarajan

01/06/2018

2021/222020/21

£210
£199

£0
£0

£44
£41

£0
£0

£254
£240

June Sarpong11

01/11/2019

2021/222020/21

£225
£267

£0
£0

£0
£0

£0
£0

£225
£267

Bob Shennan 6

08/04/2019

2021/222020/21

£310
£310

£2
£2

£44
£41

£0
£0

£356
£353

John Shield 6

01/04/2018

2021/222020/21

£0
£92

£0
£0

£0
£5

£0
£0

£0
£97

Clare Sumner6

01/04/2018

2021/222020/21

£0
£74

£0
£0

£0
£6

£0
£0

£0
£80

Rhodri Talfan Davies 401/01/2021

2021/222020/21

£263
£65

£0
£0

£44
£3

£0
£0

£307
£68

2021/222020/21£3,448£4,143

£9
£15

£203
£208

£210
£27

£3,870£4,393

Total Executive Committee

Return to contents

Governance Report93Governance
Remuneration report continued
1 Employee pension contributions are ordinarily made via a salary sacrifice arrangement as an employer contribution, with a corresponding reduction in salary Base salaries for executive
directors have not been adjusted to reflect the impact of salary sacrifice to enable like-for-like comparison with prior years before salary sacrifice was introduced The pension-related
single figure is generally calculated at 20 times the increase in the accrued pension over the year net of inflation, less the directors’ defined benefit contributions, plus the employer’s
defined contributions This is also shown in detail in the defined benefits pension prospective entitlements table
2 Tim Davie’s salary for 2020/21 reflects the proportion of his time spent as CEO, BBC Studios and as Director-General His salary for 2021/22 is pro-rated to reflect an increasein September 2021
3 Charlotte Moore received a pay increase on her promotion to Chief Content Officer and appointment to the Board in September 2020
4 Leigh Tavaziva joined the BBC and was appointed to the Board and Executive Committee on 1 February 2021 Rhodri Talfan Davies was appointed to the Executive Committee
on 1 February 2021
5 Fran Unsworth stepped down from the Executive Committee on 27 January 2022
6 Wendy Aslett, Rachel Currie, Sarah Jones, David Jordan, Matthew Postgate, James Purnell, John Shield and Clare Sumner stepped down from the Executive Committee on 1 September
2020 Glyn Isherwood and Bob Shennan stepped down on 31 January 2021 and 31 March 2022, respectively
7 Ken MacQuarrie stepped down from the Board on 31 December 2020 and in September 2021 received a contractual severance payment of £150,000 arising from redundancy
8 Tom Fussell was appointed interim CEO, BBC Studios and joined the Executive Committee on 1 September 2020 and was confirmed permanently in role in October 2021 His roleis funded entirely by the BBC’s commercial revenues and not paid for, or subsidised by, the licence fee Payment of any bonus is subject to the achievement of performance targets
9 Tony Hall stepped down as Director-General and from the Executive Committee on 30 September 2020
10 Jonathan Munro was appointed interim Director of BBC News and Current Affairs and joined the Executive Committee on 28 January 2022 and so the pay shown here covers that
period only Details on full pay can be found in the Disclosure report on page 100
11 June Sarpong is engaged on a PAYE freelance basis until 31 October 2022 with a 1 month notice period by either party There are no further provisions for additional remunerationin the event of early termination of the contract Reported earnings include £6,000 funded and paid by BBC Studios

Total remuneration – Board and Executive Committee (audited)
There has been a decrease in the overall total annual remuneration for the Board and Executive Committee in 2021/22, predominantly
as a result of the decrease in membership of the Executive Committee in 2020/21 to ten members (previously 18 in 2019/20).
Total remuneration (values in £000s)

2021/222020/21

Total Executive Committee (including Board executive directors)
Board non-executive directors£3,870£451£4,393£405

Total annual remuneration£4,321£4,798

Defined benefit pension prospective entitlements (values in £000s)

Tim Davie
Charlotte Moore
Gautam Rangarajan
Bob Shennan
Rhodri Talfan Davies

Age at31 March
2022

SectionAccruedpension
31 March2022 (orretirement/leaving theBoard ifearlier)

54
53
50
60
51

CAB 2011
New benefits
CAB 2011
CAB 2011
CAB 2011

25
39
25
27
26

Accruedpension1 April
2021 (orjoining theBoard if after)

Director DB
contributions(via salarysacrifice)2021/22Pensionrelatedsingle figure

24
37
23
24
24

6
12
10
10
10

26
39
44
44
44

Notes
Tim Davie was an active member of the CAB 2011 section from January 2012 to 31 October 2021 and retains a deferred benefit in the New Benefits section for service up to that date
The accrued pension shown relates to CAB 2011 only
Charlotte Moore joined the BBC on 1 May 2006 The pension figures shown include the period before she was appointed as an executive director
Gautam Rangarajan is an active member of the CAB 2011 section from January 2012 and retains a deferred benefit in the Old Benefits section for service up to that date The accrued
pension shown relates to CAB 2011 only
Bob Shennan re-joined the BBC in February 2009 and was appointed as an executive director on 8 April 2019 The pension figures shown include the period before he was appointed as an
executive director He is an active member of the CAB 2011 section from December 2011 and transferred out his previous benefits The accrued pension shown relates to CAB 2011 only
Rhodri Talfan Davies is an active member of the CAB 2011 section from January 2012 and retains a deferred benefit in the New Benefits section for service up to that date The accrued
pension shown relates to CAB 2011 only

Comparative pay across the BBC
The Committee agreed that from 2020/21, the ratio of the Director-General’s pay to the lower quartile, median and upper quartile pay of UK
employees would be voluntarily disclosed annually. This replaces the previous voluntary disclosure using the Hutton multiple and brings the
BBC disclosure in line with listed companies who report their CEO pay ratio compared to UK employees under the Large and medium-sizedCompanies and Groups (Accounts and Reports) Regulations 2008 (‘Regulations’).
Director-General ratio
Financial year

Method used

25thpercentile
pay ratio

2021/22

Option A

12.8

Medianpay ratio

75th
percentile
pay ratio

9.7

7.3

Under the Regulations, companies are required to identify the employee pay and benefits at the 25th, 50th and 75th percentiles of all UK
Public Service Broadcasting employees for the relevant financial year and compare to the total remuneration of the Director-General. The
company has chosen Option A to identify the employees at the 25th, 50th and 75th percentile and their respective pay and benefits, as it isrecognised that this is the most accurate approach. All UK Public Service Broadcasting employees as at the financial year end, have been
included in the reporting, with employees ranked based on their remuneration for the 2021/22 financial year.

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The table below sets out the total pay and benefits value received by employees identified at the 25th, 50th and 75th percentile during the2021/22 financial year.
2021/2225th
Percentile

50thPercentile

75thPercentile

Total Pay and Benefits£40,924£54,373£71,854

The data assumptions included in our reporting are as follows:
Element

Description

Base salary

The Regulations require that full-time equivalent salaries are used to identify the P25, P50 and P75 in order toensure comparability across the organisation. At the BBC, over 2,200 employees or c.12% work part-time so
we have, therefore, used the full-time equivalent, as at year end, as the salary figure to rank our employees.
Basic salary amounts also include any increased, temporary, allowances for attachments within otherdepartments/roles within the organisation.

Allowances and benefits

This includes a range of location, role-based, allowances and employee benefits included on a pro-rata basis
for part-time colleagues.

The table below provides a summary of the changes to the Director-General’s cash earnings for 2021/22 versus the change in pan-BBC
median earnings over the same period. The Director-General’s remuneration had remained at £450,000 since 2012 and was increased to£525,000 when Tim Davie was appointed in September 2020. However, as all senior managers at the BBC were on a salary freeze in 2020
this increase was not actioned until September 2021.

Director-General earnings
Pan-BBC median earnings

2021/22(values in£000s)

Change from2020/21

525
46.4

17%
1%

Severance
No severance was paid to executive directors during the year ended 31 March 2022.
Outside interests
With the prior agreement of the Director-General, executive members of the BBC Board may hold remunerated external directorships.
The prime purpose of the external directorship should be to support personal and career development and thereby give back to the BBC.
Remuneration which arises from external directorships may be retained by the individual, but is subject to formal approval. Executive directors
may also hold non-remunerated posts outside the BBC. No more than one to two days per month are permitted to fulfil all external duties.
The BBC’s commercial businesses
During 2021/22, the BBC had staff employed with four main commercial subsidiaries:— BBC Studios— BBC Studioworks— BBC Global News (transferred into BBC Studios in July 2021)— UKTV Media Ltd
Remuneration within the commercial subsidiaries is subject to the BBC’s governance and approval processes. The remuneration policy forthe subsidiaries includes the contractual provision of an annual bonus available to eligible staff, including directors, and it varies between
commercial entities. The full cost of base pay and annual bonus are self-funded by the commercial revenues of each subsidiary company
and are not subsidised by the licence fee.
BBC Studios Company Bonus Scheme
The Remuneration Committee has oversight of the design and outturn of the BBC Studios Company Bonus Scheme. The 2021/22 scheme wasbroadly similar to previous years with two key financial measures (EBITDA and free cash flow) and non-financial/ personal objectives.
2021/22 results
For 2021/22, both financial measures exceeded the targets set for stretch performance, resulting in a maximum payment for this element of
the bonus. The Remuneration Committee reviewed the performance of the CEO, Studios against his personal objectives, and he was assessed
as having performed at the highest level. The combination of financial results and personal performance resulted in a bonus payment of 50%(£210,000) to the CEO, BBC Studios in respect of the year’s performance.

Return to contents

Governance Report95GovernancePay disclosures
Report from the BBC Remuneration Committee of people
paid more than £150,000 from licence fee revenue during2021/22 for services provided in the year.
In the following pages, we set out details of those individuals who
received more than £150,000 from licence fee revenue in the year.
The Charter requires us only to publish amounts paid during theyear for these individuals, set out in bands. We go beyond that
requirement by publishing more detail of the work that individuals
appearing on-air carried out for the remuneration they received.
The on-air environment is returning to stability after the delays to
productions and the cancellation of live events, especially sport,
caused by the coronavirus pandemic. The gender split for the year in
on-air talent has improved once again to 55:45 and it is expected that
we will improve this further in the forthcoming year as we movetowards a 50:50 balance on a gender basis.

On-air talent pay tables
Individuals on this list are shown by category: News, Radio, Sport,
and presenters who work regularly across multiple parts of the BBC
including Television. These figures include payments from licence feerevenue during the year ended 31 March 2022 for services provided
in the year. These figures exclude any recharges, amounts paid, andinvestments into programmes made by our commercial entities – forexample BBC Studios. Payments made by independent producers,
royalties, repeat fees, contractual and other recoverables andexpenses are also excluded. Programme commitments have beendrawn from contractual commitments or other patterns of work, andhave generally been stated to the nearest ten. These have been
consistently disclosed for each principal programme or genre. Single
episodes have been excluded, unless this represents a significant partof an individual’s work.

It is also worth noting that, both on-air and off, we continue tooperate in extremely competitive markets for talent, with inflationlevels for pay often well above the average for the UK economy.
This pressure, taken with the fixed £150,000 entry point to the list,
suggests that more individuals will appear on these lists over time.
Nevertheless, we continue to monitor the total cost of the individuals
earning over £150,000 working in on-air roles.

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On-air talent
Principal programme

Name

Programme commitmentsPayc.140 presentation daysc.20 presentation days for BBC One£275,000-£279,999

Nick Robinsonc.140 presentation daysc.25 episodes of Political Thinking£270,000-£274,999

Justin Webbc.135 programmes£255,000-£259,999

Martha Kearneyc.140 programmes£255,000-£259,999

World at One

Sarah Montaguec.180 presentation days

£245,000-£249,999

PM

Evan Davisc.200 programmes
The Bottom Line on Radio 4£270,000–£274,999

BBC News at Six and
BBC News at Ten

Huw Edwardsc.180 presentation days for BBC One and News Channel
News Specials£410,000-£414,999

George Alagiahc.180 presentation days for BBC One£325,000-£329,999

Sophie Raworthc.180 presentation days for BBC One
Sunday Morning show (from January 2022)£305,000-£309,999

Fiona Brucec.40 episodes of Question Timec.50 presentation days for BBC One£410,000-£414,999

The Andrew Marr Show Andrew Marrc.30 programmes
c.15 editions of Start the Week (until January 2022)£265,000-£269,999

Newsnight

Emily Maitlisc.140 presentation days for Newsnight£325,000-£329,999

Kirsty Warkc.90 presentation days for Newsnight
Cover for Start the Week and Election programming£245,000-£249,999

Clive Myrie

BBC News Channel, BBC One and location and filming work
Panorama£255,000-£259,999

Reeta Chakrabarti

BBC News Channel, BBC One and location work

£200,000-£204,999

Victoria Derbyshire BBC News Channel, BBC One and location work
Panorama
Radio 2 Jeremy Vine cover£240,000-£244,999

Ben Brown

BBC News Channel, BBC One and location work

£170,000-£174,999

Joanna Gosling

BBC News Channel and BBC One£155,000-£159,999

Naga Munchettyc.180 programmesc.140 5 live Naga Munchetty shows
Panorama£365,000-£369,999

Dan Walkerc.180 programmes
BBC Sport presentation£220,000-£224,999

Charlie Stayt

c.180 programmes£190,000-£194,999

Laura Kuenssberg

Political Editor£260,000-£264,999

Amol Rajan

Media Editor
Amol Rajan interviews
BBC Television documentaries
c.40 editions of Today on Radio 4
Radio 4 Rethink£325,000-£329,999

Faisal Islam

Economics Editor
c.30 editions of Newsnight£240,000-£244,999

Jeremy Bowen

Middle East Editor£230,000-£234,999

Jon Sopel

North America Editor£225,000-£229,999

Katya Adler

Europe Editor£215,000-£219,999

Fergal Keane

Special Correspondent£210,000-£214,999

Simon Jack

Business Editor and Radio 4 Today cover£205,000-£209,999

News and Current Affairs
Today
Mishal Husain

Question TimeBBC News Channel

BBC Breakfast

On-air editors andcorrespondents

Return to contents

Governance Report97GovernancePay disclosures continued
Principal programme

Name

Programme commitments

Pay

Sarah Smith

Scotland Editor
c.30 editions of Today on Radio 4
North America Editor (from February 2022)£190,000-£194,999

Mark Easton

Home Editor£190,000-£194,999

Orla Guerin

International Correspondent£160,000-£164,999

Lyse Doucet

Chief International Correspondent£150,000-£154,999*

Westminster Hour

Carolyn Quinn

Lead presenter on Westminster Hour and cover for PM£150,000-£154,999

HARDtalk

Stephen Sackur

HARDtalk interviews and BBC World News presentation£175,000-£179,999

Principal programme

Name

Programme commitments

Pay

Radio
BBC Radio 1

Scott Millsc.230 editions of The Scott Mills Showc.45 editions of Scott Mills and Chris Stark Show on Radio 5 live
Cover on Radio 1 and Radio 2
Radio 1’s Pop 101£400,000-£404,999

Greg Jamesc.220 Radio 1 Breakfast Show
Rewinder on Radio 4
Radio 1’s Big Weekend
Radio 1’s Out Out! LiveBBC Sports Personality of the Year£390,000-£394,999

Clara Amfoc.180 editions of Radio 1 Mid Morning Show

£155,000-£159,999

Zoe Ballc.210 editions of The Zoe Ball Breakfast Show

£980,000-£984,999

Steve Wrightc.220 editions of Steve Wright in the Afternoon
c.50 editions of Sunday Love Songs£450,000-£454,999

Ken Bruce

Radio 2 Mid Morning ShowRadio 2 Eurovision and PopMaster Special£385,000-£389,999

Jeremy Vine

Daily show on Radio 2£290,000-£294,999

Jo Whileyc.150 editions of Radio 2 Evening Show
Cover on Radio 2£265,000-£269,999

Sara Coxc.230 editions of Radio 2 Drivetime Show

£275,000-£279,999

BBC Radio 2

Claudia Winkleman Weekly show on Radio 2£155,000-£159,999

Trevor Nelsonc.180 editions of Rhythm Nationc.50 Weekend Shows on Radio 1Xtra£210,000-£214,999

BBC Radio 4

Emma Barnett

c.180 editions of Woman’s Hourc.20 editions of Newsnight£215,0000-£219,999

BBC Radio 5 live

Nicky Campbell

c.110 editions of 5 live Breakfast Showc.110 editions of Your Callc.90 editions of 5 live Nicky Campbell Show

£295,000-£299,999

Rachel Burdenc.200 editions of 5 live Breakfast Showc.15 editions of BBC Breakfast
Cover for Your Call

£180,000-£184,999

Colin Murrayc.150 editions of 5 live Colin Murray Showc.40 editions of 5 live Fighting Talk

£160,000-£164,999

Nihal Arthanayakec.180 editions of 5 live Early Afternoon Show
Summer Olympics£150,000-£154,999

Tony Liveseyc.230 5 live Drive programmes£150,000-£154,999

Lauren Laverne

c.205 editions of 6 Music Breakfast Showc.40 6 Music Recommends
c.40 Desert Island Discs on Radio 4£380,000-£384,999

Steve Lamacq

c.230 editions of 6 Music Afternoon Showc.50 6 Music Recommends£150,000-£154,999

Harpreet Bhullar

c.190 editions of Asian Network Breakfast Showc.40 editions of Saturday Mash-Up! on CBBC

£160,000-£164,999

BBC 6 MusicBBC Asian Network

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Principal programme

Name

Programme commitments

Pay

Multiple stations

Vanessa Feltz

c.190 editions of Radio 2 Early Breakfast Showc.220 editions of Radio London Breakfast ShowRadio 2 cover£400,000-£404,999

Stephen Nolan

The Nolan Show on Radio Ulster
Nolan Live on BBC 1 (NI)
5 live Stephen Nolan Show
Nolan Investigates Stonewall£415,000-£419,999

Principal programme

Name

Programme commitments

Pay

Sport
Men’s football

Gary Lineker

Match of the Day: Premier League, FA Cup andEuropean Football ChampionshipSports Personality of the Year

£1,350,000-£1,354,999

Alan Shearer

Match of the Day: Premier League, FA Cup andEuropean Football Championship£450,000-£454,999

Jermaine Jenas

Match of the Day: Premier League, FA Cup andEuropean Football Championship
MOTDx£220,000-£224,999

Micah Richards

Match of the Day: Premier League, FA Cup andEuropean Football Championship
5 live Sport£200,000-£204,999

Chris Sutton

5 live Sport, Monday Night Club, and 606 Podcast
European Football Championship£155,000-£159,999

Men’s and Women’sfootballAlex Scott

Football Focus, Women’s Super League, European FootballChampionship, Olympics, Sports Personality of the Year

£195,000-£199,999

CricketMichael Vaughan

TV and Radio cricket (Test, one-day and Twenty20 series)
Tuffers and Vaughan Podcast£225,000-£229,999

Jonathan Agnew

International test, one-day and Twenty20 series
BBC Cricket Correspondent£175,000-£179,999

Isa Guha

TV and Radio cricket (Test, one-day, Twenty20, The Hundred)£155,000-£159,999

Sue Barker

Wimbledon, Queens, Australian Open

£185,000-£189,999

John McEnroe

Wimbledon£180,000-£184,999

Mark Chapmanc.105 editions of 5 live sport
Weekly Premier League highlights
European Football Championship
Rugby League£250,000-£254,999

Clare Balding

Boat Race
Cycling
Eastbourne and Wimbledon
Summer Olympics and Winter Olympics
Sports Personality of the Year

£205,000-£209,999

Gabby Logan

Athletics
Football and European Football Championship
Six Nations
Olympics
Sports Personality of the Year£200,000-£204,999

TennisMultiple sports*

On 1 July 2021 BBC Global News Ltd was transferred into BBC Studios Group At the same time the editorial operations of the BBC World News Channel were transferred into
BBC Public Service The disclosure above represents payments made since that date, i e for the period 1 July 2021 to 31 March 2022

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Governance Report99GovernancePay disclosures continued
Multiple genres and television
There are a small number of individuals who have pre-existing multi-year relationships with BBC commissioning. Payments from BBC Studios
have been removed from the disclosure, and they may also receive payments from independent producers. We also include in this section
presenters who spend close to 50% of their time in more than one of TV, Radio, News and Sport.
Principal programme

Name

Programme commitments

Pay

Radio and Sport

Jason Mohammad

BBC Radio Wales (Monday-Wednesday)/MOTD Wales
Final Score
UK/Masters Snooker 2021/22
BBC Radio 2 (Good Morning Sunday)£285,000-£289,999

Television

Mary Berry

BBC fee for a range of programmes and series£215,000-£219,999

Television

Louis Theroux

BBC fee for a range of programmes and series£200,000-£204,999

Senior executives
We already publish on our website the pay and expenses for all senior leaders earning over £150,000 in the BBC’s public services. Under theterms of our Charter, we are required to publish a report from the Remuneration Committee listing all senior executives of the BBC paid morethan £150,000 from licence fee revenue for services in the financial year, set out in pay bands. These figures exclude any recharges or amounts
paid from our commercial entities.
Pay

Name

Role

Director-General£490,000-£494,999

Tim Davie

Director-General

Executive Committee£425,000-£429,999
Charlotte Moore

Chief Content Officer£400,000-£404,999

Leigh Tavaziva

Group Chief Operating Officer£360,000-£364,999

Kerris BrightChief Customer Officer£310,000-£314,999

Bob Shennan

Group Managing Director*£260,000-£264,999

Rhodri Talfan Davies

Director, Nations£230,000-£234,999

Jonathan Munro

Interim Director, News and Current Affairs£215,000-£219,999

June Sarpong

Director, Creative Diversity£210,000-£214,999

Gautam Rangarajan

Group Director, Strategy and Performance

Corporate Functions£340,000-£344,999

Glyn Isherwood

Chief Financial Officer£310,000-£314,999

Sarah JonesGroup Legal Counsel£220,000-£224,999

John Shield

Director of CommunicationsPeter Ranyard

Director, Corporate Legal£215,000-£219,999

Balram Veliath

Director, Quality, Risk and Assurance£210,000-£214,999

Shirley CameronGroup Financial Controller

Andy Baker

Director, Technology Operations

Robin Pembrooke

Director, Content Production, Product and Systems

Stuart Page

Director, Corporate and Commercial, Product and Systems

Jatin Aythora

Director, Research and Development

Kieran Clifton

Director, Distribution and Business Development

Ellie Runcie

Chief Design Officer

David CurleyGroup Corporate Finance Director

Clare Sumner

Director, Policy

Richard Cooper

Controller, Digital Distribution

David Jordan

Director, Editorial Policy and Standards

Sophie Garnham

Director, Commercial Rights and Business Affairs

Phil Harrold

Company Secretary and Chief of Staff

Sarah Gregory

HR Director£205,000-£209,999£190,000-£194,999£185,000-£189,999£180,000-£184,999*

Bob Shennan stepped down from the Executive Committee at the end of March 2022 and the role of Managing Director was closed

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Pay

Name

Role

£175,000-£179,999

Sarah Burns

HR Director

Rhona Burns

Divisional Finance Director

Alan Bainbridge

Director of Workplace

Storm Fagan

Chief Product Officer

Chris Rowsell

Controller, Regulation

Andrew Kaczor

Finance and Operations Director

Simon Morrissey

Legal Director

Sarb Nijjer

Divisional Finance Director

Natasha Wojciechowski

HR Director

Isabel Begg

Director, Commercial Rights and Business Affairs

Claudia Giles

Legal Director

Jo Korn

Director, Commercial Rights and Business Affairs

David Attfield

Legal Director

Nick Wilcox

Legal Director

David Andrade

Director, Product Engineering

Deborah Copeland

Director of International Communication and Engagement

Zoe Baker

HR Director

Ben Thornton

Chief Information Security Officer

Claire Hetherington

Head of Product

Noreen Adams

Director, Archives and Technology

Simon Adair

Director, Safety, Security and Resilience

Jim Hemmington

Director, Procurement

Stephen Wheatcroft

Senior Head of Finance

Wendy Aslett

Group HR Director

Rachel CurrieGroup HR Director

Mike Griffiths

Director, Commercial Rights and Business Affairs

Matthew Percy

Head of Architecture£170,000-£174,999£165,000-£169,999£160,000-£164,999£155,000-£159,999£150,000-£154,999

Marketing and Audiences£185,000-£189,999
Paul Davies

Director, Marketing and Audiences£175,000-£179,999

Justin Bairamian

Director, BBC Creative

Nick North

Director, Audiences£155,000-£159,999

Holly Goodier

Director, Marketing and Audiences£150,000-£154,999

Nicki Brown

Director, Marketing and Audiences

Nations£195,000-£199,999

Peter Johnston

Director, Nations£165,000-£169,999

Helen Thomas

Director, Nations

Steve Carson

Director. Nations£155,000-£159,999

Chris Burns

Senior Head of Local Radio Commissioning

Content£285,000-£289,999

Piers Wenger

Director, Drama Commissioning£240,000-£244,999

Patrick Holland

Commissioning Director, Factual, Arts and Classical Music£235,000-£239,999

Kate Phillips

Director, Entertainment Commissioning£230,000-£234,999

Dan McGolpin

Director, iPlayer and Channels£225,000-£229,999

Barbara Slater

Director, Sport

Fiona Campbell

Channel Controller

Patricia Hidalgo

Director, Children’s and Education

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Governance Report101GovernancePay disclosures continued
Pay

Name

Role

£220,000-£224,999

Rose Garnett

Commissioning Director, BBC Film

£215,000-£219,999

Graham Ellis

Controller, Radio Production£205,000-£209,999

Lucy Richer

Senior Commissioning Editor (Drama)£185,000-£189,999

Jonathan WallController, Radio

Mohit Bakaya

Controller, Radio

Clare Sillery

Senior Head of Factual Commissioning

Alan DaveyController, Radio

Lorna Clarke

Controller, Radio

Helen Bullough

Head of Children’s Production

Philip Bernie

Head of SportBen Irving

Commissioning Editor Drama

Manda Levin

Senior Commissioning Editor, Drama

Lindsay Currie

Head of Portfolio SchedulingDavid Pembrey

Chief Operating Officer

Heidi Dawson

Controller, Radio

Carla-Maria Lawson

Channel Editor

Mona Qureshi

Commissioning Editor Drama

Tommy Bulfin

Commissioning Editor Drama

Jo McClellan

Commissioning Editor Drama

Catherine Catton

Senior Head of Factual Commissioning

Jo Wallace

Senior Commissioning Editor, Entertainment

Ben Gallop

Head of Sport, Digital and radio

Gaynor Holmes

Commissioning Editor Drama

Simon Young

Commissioning Editor Factual£180,000-£184,999£175,000-£179,999£160,000-£164,999£155,000-£159,999£150,000-£154,999

News and Current Affairs£205,000-£209,999
Jamie Angus

Senior News Controller£200,000-£204,999

Alan Dickson

Chief Financial and Operating Officer£180,000-£184,999

Naja Nielsen

Senior News Controller£175,000-£179,999

Joanna Carr

News Controller£160,000-£164,999

Jon Zilkha

News Controller£155,000-£159,999

James Gray

Head of Journalism

Tarik Kafala

Controller, NewsSam Taylor

Senior News Controller

Former Staff£340,000-£344,999

Francesca Unsworth

Director, News and Current Affairs£155,000-£159,999

Ian Haythornthwaite

Chief Financial and Operating Officer

Richard Sharp receives a fee as Chairman of the BBC Board, which is donated to charity by the BBC Further details are available in the Remuneration Report on pages 87 to 95

102

Annual Report and Accounts 21/22

Return to contentsComptroller and Auditor General’s opinion on pay disclosures
Independent Assurance Report to the Board of the British Broadcasting
Corporation, acknowledging that Parliament also places reliance on theGroup Accounts and Report
I have conducted independent assurance procedures on thedisclosures included in the British Broadcasting Corporation (BBC)Annual Report arising from the requirement under the Royal Charterfor the continuance of the BBC (the Royal Charter) to publish thenames of all senior executives of the BBC paid more than £150,000
from licence fee revenue in that financial year; and the names of allother staff of the BBC paid more than £150,000 from licence feerevenue in that financial year set out in pay bands for the year-ended
31 March 2022. These disclosures comprise the Pay Disclosures as
set out on pages 96 to 102 of the BBC’s Annual Report (the subject
matter) (the “Pay Disclosures”).
My work is conducted in accordance with International Standards on
Assurance Engagements (ISAE) 3000 Assurance Engagements Other
Than Audits or Reviews of Historic Financial Information.
Respective responsibilities of the BBC Board and the Comptroller
and Auditor General
For the reporting year covered by this report, the BBC Board was
responsible for publishing information required by the Royal Charteras follows:

My work consisted of:— Understanding the process adopted by the BBC to derive the
Pay Disclosures, in particular the completeness and accuracy of
information used;— Testing the completeness of disclosures, including:– Cross-reference to my BBC Group audit procedures relating
to payroll and expenditure;– Comparison to the prior year and my understanding of
the BBC;– Review of individuals paid in the subsequent month who havebeen paid close to the disclosure threshold in 2021/22;— Agreement of staff disclosure to payslips or, where staff are notpaid via BBC payroll, agreement of spend back to other evidence
such as contracts;— Agreement of the spend per individual paid more than £150,000
of Licence Fee revenue into the appropriate salary banding;— the names of all senior executives of the BBC paid more than£150,000 from licence fee revenue in that financial year; and— Recalculation of the volume of individuals included within each
£5,000 band; and— the names of all other staff of the BBC paid more than £150,000
from licence fee revenue in that financial year set out in pay bands
for the year-ended 31 March 2022.

— Review of the accompanying commentary for reasonableness andclarity around the basis of disclosure.

I am responsible for providing an opinion on whether, in all material
respects, the subject matter is complete and accurate and has been
properly prepared in accordance with the basis set out therein.
In conducting this work, my staff and I have complied with the
Financial Reporting Council’s Revised Ethical Standard 2019. I am
independent of the BBC in accordance with the ethical requirementsthat are relevant to my procedures. My staff and I have fulfilled ourother ethical responsibilities in accordance with these requirements.
My staff and I have applied International Standard on Quality Control
1 and accordingly maintain a comprehensive system of quality
control including documented policies and procedures regarding
compliance with ethical requirements, professional standards andapplicable legal and regulatory requirements.
My approach
I have performed a reasonable assurance engagement as defined in
ISAE 3000. A reasonable assurance engagement is to perform suchprocedures as to obtain information and explanations which I
consider necessary to express an opinion on whether, in all material
respects, the Pay Disclosures (the subject matter) are complete andaccurate and have been properly prepared in accordance with thebasis set out therein.

Inherent limitations
My assurance procedures have been designed to provide reasonableassurance. The objective of a reasonable assurance engagement
is to reduce engagement risk to an acceptably low level in thecircumstances of the engagement as the basis for a positive form of
expression of my conclusion. It does not, however, eliminate this risk
entirely. In particular, in preparing the disclosures, the BBC Board isrequired to make a number of judgements which inherently
introduces an element of risk.
My work has been undertaken so that I might state to the BBC Board
and Parliament those matters I am required to in this report and forno other purpose.
OpinionBased on the results of my procedures, in my opinion, in all material
respects the Pay Disclosures included on pages 96 to 102 arecomplete and accurate and have been properly prepared inaccordance with the basis set out therein. This opinion has been
formed on the basis of the matters outlined elsewhere in thisindependent assurance report.
Gareth Davies
Comptroller and Auditor General
National Audit Office157-197 Buckingham Palace Road
LondonSW1W 9SP
28 June 2022

Return to contents

Governance Report103GovernanceNominations Committee report
Board appointments
The Board Nominations Committee is responsible for making
recommendations on appointments to the Board (with the exceptionof the Chairman and the nations’ members) and Board Committees.
I took on the Chair of the Committee when I joined the Board and themembers during the year were the Director-General, Tim Davie,
Nicholas Serota, the senior independent director; and, non-executive
directors Elan Closs Stephens and Shirley Garrood.
In addition to its responsibility for nominating appointments to theBoard, the Committee is also responsible for nominating members
to the sub-committees of the Board, and its main commercial
subsidiaries. The Committee considers and reviews the independenceof Board members, including any conflicts of interest, which this year
we did in November. It also ensures compliance with the Board’s
Code of Practice, which the Committee recommended for review
and re-adoption by the Board this year. The Code of Practice was
re-affirmed by the Board with no changes at its January meeting.
The Committee also assesses the composition of the Board and its
associated committees in terms of the balance of skills andexperience required, and to develop a succession planning strategy.
This year the Nominations Committee met five times. The continuing
Covid pandemic restrictions meant that our meetings took place byvideo conference rather than in person. The Committee’s work on
appointments focussed on the appointment of two new nonexecutive directors to the Board, Damon Buffini and Shumeet
Banerji, who were formally appointed at the Board’s November
meeting. The Committee also recommended the appointment of
the new CEO, News and Current Affairs, Deborah Turness, as an
executive member of the Board and the reappointment of the Chief
Content Officer, Charlotte Moore as an executive member of theBoard for a further two years.

Board. A number of changes to the composition and membershipof the new Board were also approved, which included transferring
the newly appointed non-executive directors to the Commercial
Holdings Board – Gunjan Bhow and Bhav Singh – to the new
Commercial Board along with its existing non-executives andappointing Damon Buffini, non-executive director on the main
Board as its Chair. These changes came into effect on 1 April 2022.
Following the appointment of two new Nations members by the
DCMS, Robbie Gibb as the Board member for England, and Muriel
Gray, as the Scotland member, by the DCMS, the Committee
reviewed the membership of the Board’s sub-committees. This
resulted in a number of changes designed to make effective use of
the range of skills and expertise across the Board’s membership.
The membership of the Board’s sub-committees will be reassessedon the appointment of the Board member for Northern Ireland.
The Nominations Committee supported the implementation of
the recommendations of the Serota Review by considering the roledescription and recruitment of two external editorial advisers to
the Editorial Guidelines and Standards Committee, for approvalby the Board.
In fulfilling our responsibility for evaluating the performance of theBoard and its associated sub-committees, we commissioned a fullsurvey, which was undertaken by an independent reviewer this year.
The Committee also commissioned a Governance Assessment which
would review the overall performance of the new unitary governancestructure implemented by the 2016 Charter. The findings from both
reviews will go forward to the full Board in the next financial year.
Richard Sharp
Chairman
23 June 2022

During the year we also considered the governance of the BBC’scommercial businesses, and recommended the transfer ofgovernance, assurance and oversight responsibilities from the BBC’s
Commercial Holdings Board to a new non-executive led Commercial
Board and Committee attendance
Board

Audit and Risk Fair Trading
Committee
Committee

Editorial
Nominations Remuneration Guidelines &Committee
Committee
Standards

Nations
Committee– England

Nations
Committee– Scotland

Nations
Committee– WalesNations
Committee– N Ireland

Ordinary

MemberMemberMemberMemberMemberMemberMemberMemberMemberNumber of meetings
for the period

10

6

3

4

4

7

2

4

3

2

Non-executives
Richard Sharp
Shumeet Banerji*Damon Buffini*
Shirley Garrood
Robbie Gibb*
Muriel Gray*
Tanni Grey-Thompson*
Ian Hargreaves
Tom Ilube*
Steve Morrison*
Nick Serota
Elan Closs Stephens10
2 of 22 of 2109 of 92 of 28 of 810
3 of 38 of 810
10

4 of 4
1 of 14

1 of 1

Executives
Tim Davie
Leigh Tavaziva
Charlotte Moore
Fran Unsworth*

10
10
10
9 of 96

32 of 2
1 of 13 of 32 of 22 of 23
1 of 1
2 of 24
4

3 of 34

4

5 of 62

4 of 47

1 of 17

1 of 1

1 of 13
3 of 33

2

7

4 of 4

1 of 1This table does not include extraordinary meetings or business conducted offline* Shumeet Banerji and Damon Buffini joined the Board on 1 January 2022, Robbie Gibb joined the Board on 7 May 2021, Muriel Gray joined the Board on 3 January 2022, Tanni
Grey-Thompson left the Board on 31 December 2021, Tom Ilube left the Board on 30 June 2021, Steve Morrison left the Board on 2 January 2022, and Fran Unsworth left the Board
on 27 January 2022

104

Annual Report and Accounts 21/22

Return to contents

Audit and Risk Committee report
I am pleased to introduce the annual report of the BBC Audit andRisk Committee (ARC) for 2021/22.
The role of the Committee is to assist the Board in providing
oversight of corporate governance within the BBC, particularly withrespect to financial reporting, internal control and risk management.
During the year the Committee has sought to fulfil this responsibility
by ensuring a wide and relevant Committee agenda, applying
thorough review and scrutiny to agenda topics and, whereappropriate, seeking the advice of subject matter experts.
I have continued to work with very experienced committee members
who have provided valuable insight and support: Tom Ilube (whostepped down from his role in June 2021), the BBC Chairman, Richard
Sharp, and Shumeet Banerji who joined the Committee in January
2022. Elan Closs Stephens also joined as a member, from April 2022.
The Committee has received effective advice from BBC teams,
notably the Company Secretariat, Finance, and the Quality, Risk andAssurance function as well as from the NAO as the BBC’s external
auditor. I am satisfied, as a result, that the Committee has had thenecessary skills and support in place to discharge its duties properly.

The Committee has continued to provide scrutiny over the BBC’scommercial operations. Whilst all Committee meetings have a Groupremit, one meeting was dedicated to Commercial matters. The
Committee reviewed items relating to BBC Studios’ risks andcontrols, the performance of key investment decisions and therelevant internal and external audit work. The BBC Studios Chief
Executive and other senior members of the Studios leadership teamattended the meeting.
A formal review of the effectiveness of the external audit process
was conducted by the Committee. A questionnaire was sent toselected members of the Committee, the Board, and staff involvedin the audit. The NAO were found to be professional, providing
appropriate challenge and advice. The overall conclusion was thatthe external audit process had been effective. With regard to the
NAO’s value for money studies, the Committee has ensured thatsuitable management responses are in place and monitored forcompletion. During the year, their report on the BBC’s Savings andReform was published.

— reviewing and assuring the basis for the BBC Group’s statementsof going concern and viability;

Last year I commented on the Committee’s role in monitoring theimpact of the pandemic on the control and operating environment.
The committee’s agendas, items for discussion and priorities of theassurance teams have ensured that this monitoring has been fulfilled.
This focus for the Committee will continue, particularly as the BBC
moves to an established pattern of hybrid working and adjusts toworking in a post-pandemic environment.

— overseeing our relationship with the NAO, including approving
their audit plan, reviewing their assessment of risk and accounting
judgements, receiving updates on progress with their work at
every meeting and monitoring the implementation of actions
arising from work;

Looking forward, the outcome of the licence fee settlement and wider
economic and political challenges, including the crisis in Ukraine, will
be important considerations for the Committee. The Committee will
be seeking to ensure that the BBC remains well governed and well run
whilst dealing effectively with these challenges.

— providing oversight on the BBC’s strategic and operational risks
and the effectiveness of the risk management framework. The
framework was further enhanced this year with papers on horizon
scanning and the introduction of a dashboard for compliance withregulatory and legal obligations;

Having completed my second full year as the Chair of the Committee,
I am pleased to report again that it has fulfilled its remit effectively,
and has supported the BBC in delivering value for licence fee payers.

The Committee met six times during the year. Our work-plan for thisyear has included:— conducting deep dives into risk areas, including risks relating totechnology, sustainability, operational security, international
operations and people and culture;

Shirley Garrood
Chair, Audit and Risk Committee
23 June 2022

— undertaking reviews of key change and transformation activity,
this has included: E20 (the EastEnders’ set re-development),
Across the UK (the BBC’s initiative to move creative functions outof London), Diversity and Inclusion, Net Zero and the Technology
Strategy. As a standing item, the Committee received updates
from the BBC Project Management Office on all of the BBC’s
critical projects;— ensuring the effectiveness of the BBC’s whistleblowing policy
including receiving reports on disclosures and investigations;— monitoring the work of the Internal Audit team and thecompletion of actions from their work. 38 audits and assurance
reviews were completed, as part of a risk-based plan, with 95
improvement actions raised (improvement actions are tracked tocompletion by the Committee). It was pleasing to note that there
were no overdue actions at the end of the year.

Return to contents

Governance Report105Governance
Audit and Risk Committee report continued
Role
The Audit and Risk Committee’s Terms of Reference set out theCommittee’s responsibilities in more detail. These were approvedby the BBC Board in September 2018 and were reviewed by theCommittee in September 2021. They can be read on our website:
downloads.bbc.co.uk/aboutthebbc/whoweare/bbcboard/
auditandrisk/arc-tor-sep-2020.pdf.
The remit of the Committee is to review and maintain oversight of
the BBC’s corporate governance, particularly with respect tofinancial reporting, internal control and risk management. In orderto gain this assurance, the ARC has responsibility for reviewing andoverseeing:— the effectiveness of the BBC Group’s internal control and risk
management processes;— the BBC’s systems for the detection and prevention of fraud andcorruption;— key risks facing the BBC Group and the actions being taken to
mitigate those risks to an acceptable level;— the activities and risks of the BBC’s commercial subsidiaries,
ensuring that risks are acceptably managed, and that assurance
is independent and sufficient;— the actions and judgements of management in relation to theBBC’s Annual Report and Accounts and related formal
statements;— the work of the BBC’s Internal Audit function and its
effectiveness, meeting with Internal Audit senior management
privately to discuss issues as necessary;— the BBC’s critical projects, including the composition of thecritical projects’ portfolio;— BBC responses to the Public Accounts Committee and Valuefor Money reports by the National Audit Office, giving due
consideration to Parliament’s expectations of the managementof BBC resources;— the external auditor's proposed audit scope, ensuring no
unjustified restrictions or limitations are made, meeting
separately with the external auditor to discuss any matters theCommittee or the auditor believe should be discussed privately;— the external auditor's independence, quality control procedures
and steps taken by the auditor to respond to changes inregulatory and other requirements; and— arrangements by which staff may, in confidence, raise concerns
about possible improprieties in matters of financial reporting,illegality or other matters.
Membership
The ARC comprises three non-executive members, of whom one
must have recent and relevant financial experience. The members
who served during the past year are:
— Shirley Garrood (Committee Chair)— Richard Sharp (BBC Chairman, appointed July 2021)— Tom Ilube (resigned from the Board 30 June 2021)— Shumeet Banerji (appointed January 2022)
Shirley Garrood, the Committee chair, has significant, recent andrelevant financial experience. In addition, all of the members who
served on the Committee during the year are individuals who hold or
have held senior positions in similar sized organisations and have theexperience and skills to fulfil their responsibilities. When appropriate,
the skills and experiences of members are augmented with advice
from internal and external professionals – for example on matterssuch as developments in financial reporting.
106

Annual Report and Accounts 21/22

Committee meetings are also attended by the Director-General, theChief Operating Officer, the Chief Financial Officer, the Director of
Quality, Risk and Assurance and senior representatives from Internal
Audit, Risk Management and the National Audit Office, as the BBC’s
external auditor.
The Committee also meets privately, without any member ofmanagement present, with Internal Audit and the external auditor,
on a regular basis.
The Committee regularly assesses its own effectiveness. In 2021/22
the work of the Committee was part of the external review of BBC
Board effectiveness, conducted by Chris Saul. The findings andrecommendations from that review will be considered by theCommittee.
Meetings
The Committee met six times during 2021/22, at key times in thereporting and audit calendar.
Minutes from the meetings are made available to the Board andsummary minutes are published on the BBC website: bbc.co.uk/
aboutthebbc/whoweare/bbcboard/auditandrisk. Additionally, theChair of the Committee reports back to the Board after each meetingon any issues where action or improvement is required. The
Committee also provides views on the integrity of the financial
statements before the Annual Report is approved by the Board
as a whole.
Integrity of financial reporting
The Committee reviewed the integrity of the financial statementsof the BBC. In doing so it:— identified, through discussion with both management and theexternal auditor, the key risks of misstatement within the BBC’s
financial statements, including those areas where significant
financial judgements were required, and which have influenced
the financial statements;— discussed these risks with the auditor as part of the agreement of
the external auditor's audit plan and at the conclusion of the auditof the financial statements; and— reviewed and challenged detailed papers received frommanagement on those areas requiring significant financial
judgement, taking account of the views of the auditor.
Set out below are the key areas of judgement and how theCommittee has addressed them:
Revenue recognition
There is a risk that income is not recognised correctly in line withfinancial reporting standards. The nature of the risk varies between
licence fee revenue in the public service and commercial income.
Licence fee revenue is treated as grant-in-aid due from DCMS on
the basis that amounts receivable from licence fee payers will be
paid across.
Commercial revenue is more complex, with a number of different
revenue streams including sale of content to global broadcasters,
subscription income and revenue from the sale of physical and digitalproducts. The complexity of contractual terms may require
judgements in assessing when revenue can be recognised, which isbased on the delivery of performance obligations and when control
is transferred to the customer.
Committee response – The Committee receives reports frommanagement on any material or particularly complex judgements.
The Committee considers that the BBC’s existing financial control
systems should ensure that income is properly treated in the financial
statements and has confidence that management understands therisks in this area and has suitable controls in place.

Return to contents

Property
The BBC holds a significant property portfolio, which continues to berationalised in order to reduce costs. The estate includes properties
held under freehold and those held under leases. Buildings whichhave been sub-let or which are available for sub-let may be classified
as investment properties. Judgements relate to the future intentions
for any vacant buildings and the related timescales. This can change
the appropriate accounting treatment and affect the carrying valueon the balance sheet.
During the year, the following changes took place:Part of the Broadcast Centre within the White City complex in
London was sublet to ITV during the year resulting in thereclassification of this element of the leased asset from right-of-use
to lease receivable.
Two further properties (Crowsley Park and Leeds Unit 2) were also
reclassified to investment properties in the year.
Caversham and Swains Lane were recognised as assets held for sale
as at 31 March 2022 and the completion of these property sales is
expected during 2022/23.
The derivative assets and liabilities connected to the underlying
Broadcasting House lease structure are subject to sensitivities inmarket data in addition to an adjustment to the discount rate to takeaccount of risk. As a result, net liabilities of £168 million have beenrecognised in relation to this arrangement. The transaction was
implemented in a manner that limited any increase in the BBC’s
credit exposure to the derivative counterparties involved. The special
purpose vehicle established to redevelop Broadcasting House,
Daunus Limited, is accounted for as a joint venture following anassessment of control. The BBC’s interest in the entity is at costand no indicators of impairment have been identified.
Committee response – The Committee reviewed reports frommanagement, which explained the treatment for the most significant
buildings, including the projected timescales for future activity andrationale for treatment. The Committee was satisfied that thetreatment of properties within the financial statements wasconsistent with management intention and in line with international
financial reporting standards.
Programme assets
The BBC holds a significant amount of assets within inventories andintangibles (programme rights for future sale), including programmes
under production, payments made in advance to acquire future rights
to broadcast/sell and completed programmes that are ready to bemade available to audiences. These assets are recognised at cost but
assessed at each year end for their recoverability. Judgement isrequired in determining both the recoverability of these assets andtheir period over which, programme rights in particular, should
be amortised.
An annual expenditure recognition review (given iPlayer and Sounds
popularity and content being available for longer periods) concluded,
based upon audience data, that it remains appropriate to continue torecognise costs when content is first made available to audiences on
the main/linear channel for 2021/22.
Committee response – The Committee was satisfied thatmanagement’s assessment of programme assets, including theimpairment assessments performed, is in line with international
financial reporting standards.
BBC Defined Benefit Pension Scheme
The financial statements include a surplus on the balance sheet of£1,241 million for the BBC’s defined benefit pension scheme. Criticaljudgements are required regarding the assumptions used in
calculating this position. Changes in these assumptions can result inlarge swings in the final numbers disclosed. The assumptions used
for the latest accounting valuation are based upon therecommendations of independent actuaries and are within an
acceptable range according to the NAO.
Committee response – The Committee was satisfied that theassumptions used in the financial statements relating to the pension
scheme were reasonable, appropriate to the BBC and supported byindependent actuarial specialists. The Committee noted theimprovement in the pension scheme valuation and was satisfied withthe explanations and analysis provided by management and thescheme advisers.
Employment and taxation provisions
A number of employment and taxation-related provisions exist
where the BBC has a present obligation as a result of a past eventthat is probable and can be reliably measured. Related provisions of£15 million are within the financial statements, including an amountfor payments to, or on behalf of, presenters concerning the use of
Personal Service Companies (PSCs).
Committee response – The Committee received reports on matterswhich could result in the recognition of potential liabilities anddiscussed the level of provisions with management. Management
confirmed that they have applied a consistent approach to theidentification, recognition and release of provisions across the BBCGroup. The Committee is satisfied with the level of provisions carried
and the disclosure in respect of those provisions.
Capital projects
The BBC undertakes multiple capital projects at any one time, which
contribute to the overall strategy of the BBC. An assessment over
the appropriateness of capitalisation, along with the valuation of any
capitalised asset, is required. If a material capital project cannot becompleted on time, or will not derive future benefit to the BBC, this
could trigger an impairment charge. Reports from management werereviewed, which explained the status of major capital projects andthe approach taken to assess whether any impairment charge was
required.
Committee response – The Committee was satisfied thatmanagement’s assessment of capital projects, including whether
any impairment is appropriate, is in line with international financial
reporting standards.
Ukraine and Russia
A review by Finance of all assets and liabilities associated with
Ukraine and Russia has been undertaken, along with an assessmentof the commercial impact to BBC Studios. The BBC holds two leased
Bureau sites in Kyiv (Ukraine) and Moscow (Russia) which may
become onerous depending on how the situation in those countries
evolves. No financially material impact has been identified.
The risk of payments to sanctioned banks has been reviewed. Since
30 May 2022, news media services including the BBC have beenauthorised, through a UK Government licence issued by Office ofFinancial Sanctions Implementation (OFSI), to continue business
operations in Russia involving provision of news media services which
may otherwise breach sanctions. In the initial stages of the conflictand introduction of sanctions, continuing to operate safely andresponsibly was very challenging. During this period, the BBC had apriority to continue to serve global audience demand for coverage ofthis story. Consequently, some contractual salary payments to staff
and freelancers with Russian bank accounts and a small payment toa Russian service media provider were made between the start of theconflict and the grant of the OFSI licence. These have been notified
to the UK Government.
Committee response – The Committee acknowledges that this is asensitive and evolving area. It is satisfied that the BBC’s approach todate has been well considered and proportionate.
Management confirmed to the Committee that they were not awareof any material misstatements or immaterial misstatements madeintentionally to achieve a particular presentation. The auditor

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Governance Report107Governance
Audit and Risk Committee report continued
reported any misstatements that they had found in the course of
their work and confirmed that no material amounts remain
unadjusted. The Committee can confirm that it is satisfied that theexternal auditor has fulfilled its responsibility with diligence andprofessional scepticism.

— the findings and progress of actions from the audits of BBC
commercial subsidiaries. The Chief Executive and Chief Financial
Officer of BBC Studios attend annually to provide assurance
on the control environment and management of risk inthis subsidiary;

After reviewing the presentations and reports from management andconsulting where necessary with the external auditor, the Committee
is satisfied that the financial statements appropriately address thecritical judgements and key estimates (both in respect to theamounts reported and the disclosures). The Committee is alsosatisfied that the significant assumptions used for determining thevalue of assets and liabilities have been appropriately scrutinised,challenged and are sufficiently robust.

— review and approval of the BBC’s Modern Slavery statement andreview of the approach for ensuring compliance; andThe Committee reviewed the group financial statements and how
these are positioned within the wider Annual Report. To assist thisreview, reports from management and from Internal Audit and theand external auditor were considered, covering:— the quality and acceptability of accounting policies, including theircompliance with accounting standards;— compliance with legal and regulatory requirements;— the clarity of disclosures and their compliance with relevant
reporting requirements; and— whether the Annual Report as a whole is fair, balanced andunderstandable and provides the information necessary to assess
the BBC’s performance and strategy.
Effectiveness of internal controls and risk management
framework
Internal controls assurance
The Committee reviewed the effectiveness of the BBC’s system ofinternal controls, on behalf of the Board. To make this assessment
the Committee relied primarily on the findings from independent
assurance activity across the Group. Specific areas that were also
considered during the year included:— attestations from Executive Team members on controls within
their business areas. For 2021/22 this process has been enhancedwith the introduction of a controls self-assessment;— the themes from internal audit activity, questioning
representatives of Internal Audit on the outcomes andobservations from their work. A summary of internal audit activity
is presented annually that highlights trends and root causes. Key
findings from every audit, including assurance ratings andcorrective actions, are reviewed by the Committee;— progress on the completion of actions from independent
assurance activity, including internal and external audits and NAO
value for money reviews. This is an area followed up at every
meeting to ensure that agreed actions in respect of any
weaknesses found are being properly addressed;— further follow-up and scrutiny over the completion of any
improvement plans or agreed actions for areas which areconsidered high profile or have received critical assurance
findings;— in anticipation of potential changes to the UK’s corporate
governance and financial reporting requirements, the Committee
also received an assessment of the BBC’s financial control
framework.
The Committee is satisfied that the information presented bymanagement, and the responses received to questions and further
enquiries, is sufficient for the Board to take a view on theeffectiveness of internal controls and risk management.
Risk management
The Committee considered the processes for managing significant
risks within the BBC.
In particular, the Committee reviewed reports and challenged
management on the BBC’s major strategic and operational risks;reviewed the governance arrangements for risk reporting andoversight; and considered areas of emerging risk with potential toimpact the BBC.
‘Deeper dives’ into selected risk topics were also conducted, as noted
within this report.
The approach to risk management in the BBC continues to develop
and the Committee was actively involved in reviewing progress.
During this year the risk team undertook a risk appetite assessment
for technology risk; conducted risk deep dives for targeted risk areasand critical projects; supported risk register development; andpresented papers on risk horizon scanning and compliance metrics
For further detail please see page 110.
Effectiveness of Internal Audit
The work of Internal Audit is overseen by the Committee. This is aregular item at each meeting which the Director of Internal Audit
also attends. During the year the Committee has:— approved the plan of work for the coming year, ensuring that it isrisk based and strikes a balance between providing assurance overcore business processes and areas of emerging strategic risk;— considered the findings from audit activity, focusing on audits
with unsatisfactory outcomes and management’s plans toaddress these;— considered the resource requirements for Internal Audit and its
capability; and— assessed the impact of the pandemic on the internal audit plan
and approved changes to the plan to ensure it remains relevant
and proportionate.
In addition, the Committee Chair meets with the Director of Internal
Audit and the Director of Quality, Risk and Assurance on a regularbasis outside of formal Committee meetings.

— reviews of topical or high priority risk areas; for 2021/22 thisincluded technology, operational security, people and culture,sustainability and international operations;— regular progress reviews of critical projects provided by the BBC
Project Management Office. The Committee also reviewed
selected projects in more depth, with relevant senior
management in attendance;

The Committee continues to monitor the structure of the Internal
Audit function and the operation of the current resourcing model, witha proportion of audits provided by an external partner. The Committee
is satisfied that this arrangement continues to function well.
In line with good practice, an independent assessment of the Internal
Audit function’s effectiveness has been conducted within the last five
years. The recommendations of this review have been implemented.

— reports on whistleblowing along with the mechanisms in place tominimise and prevent these;108

Annual Report and Accounts 21/22

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Independence and effectiveness of our external auditor
Under the 2016 Charter and Agreement, the Comptroller and
Auditor General, and thereby the NAO of which he is head, isappointed the BBC's statutory auditor for the duration of theCharter period.
The Committee oversaw the relationship with the NAO, including thescope of and approach to their work. Specific areas of focus this year
have included:— the external audit process, including the reporting requirementsof regularity and propriety;— the NAO’s assessment of areas of audit risk or judgement. For
2021/22 this included, but was not limited to, the pension scheme
valuation; complex property transactions; programme assets;commercial revenue recognition and new accounting standards;— with regard to Covid, the impact of remote working on the control
environment as well as changes in fraud risk were considered;— private discussions with the external auditor without management
present; and— a formal review of the effectiveness of the external audit process
was conducted by the Committee.
Non-audit services
As one of the safeguards over the independence of the external
auditor, the Committee has developed, and oversees, the BBC’s
policy on the commissioning of the external auditor to provide
non-audit services.
This policy defines the types of services which the external auditor
can and cannot provide. Additionally, it includes thresholds above
which any proposed non-audit work to be carried out by the external
auditor must be approved in advance by the ARC. It also defines
when work must be submitted for competitive tender.
The NAO has stated that it does not provide non-audit services.
Irrespective of this, the NAO would not be considered for work whichmight compromise its ability to give independent opinion on the
BBC’s financial statements. Recruitment from the NAO into any
senior management position in the BBC would require the priorapproval of the ARC.

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Governance Report109GovernanceOur principal risks
Risks affect the ability of the BBC to fulfil its Charter
obligations and deliver our public purposes. Our
approach to risk management needs to support thedelivery of our strategic ambitions and operational
objectives.
Our approach to risk management
The BBC continues to operate in a volatile and uncertain world as thechallenge of a global pandemic was followed by geo-political crises
including the fall of Afghanistan in August 2021 and the Russian
invasion of Ukraine in February 2022.
Audiences both in the UK and across the world rely on the BBC for
independent and impartial coverage of global events as we deliver
our public purposes and provide value to all audiences. The BBC’s
services have had significant demand as people seek to be informed
about such situations. An estimated audience of over 280 million
people came to the BBC’s online news output during the week thatthe war in Ukraine started.
Both the pandemic and the geo-political crises have broughtsignificant challenges and risks to the safety and security of ourpeople, our buildings, and our finances which are managed on a realtime basis by specialist teams.
The UK and global media landscape continues to be shaped by along-term shift from linear broadcast to online services. Consumers
have never had so much choice and media providers are intensifying
the competition for talent and high-end content.
Given these challenges, it is critical that risk management isembedded across the BBC. This means that careful consideration ofrisks contributes to both our creative ambition and desire to serve
our audiences, in the UK and internationally, and to how we run
the BBC.
Transforming the BBC into an organisation that can succeed despite
the extraordinary pace and scale of market change, capable ofbuilding relevance to our audiences despite the fierce competition
for screen time in an online world is a priority.
Risk governance – The Board, both directly and via the Audit andRisk Committee (ARC), reviews the BBC’s principal risks and conducts
regular deep dives into specific risk areas in the year. The BBC's
Operations Committee which is a sub-committee of the Executive
Committee has now been in operation for 12 months. The Operations
Committee supports the Executive Committee in the delivery andexecution of key strategic and operational priorities and pan-BBC
projects.
Risk management – 2021/22 updates
Risk management at the BBC continues to evolve and develop.
In 2021/22, we made the following improvements to our risk
framework:
Enhanced risk governance – The creation of the Operations
Committee has strengthened management accountability andresponsibility over critical projects, operational and professional
service areas and matters relating to compliance with financial,
regulatory and operational obligations as reported to the Board
and/or its Committees.

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Annual Report and Accounts 21/22

Risk Deep Dives – The Operations Committee has conducted deep
dives in the year including into child protection and safeguarding;health and safety; technology and cyber risk; sustainability; bullying
and harassment; and mandatory training. From a project perspective,
the Operations Committee has conducted deep-dives into the East
Bank programme, (relocation from the BBC’s current live musicstudios in Maida Vale to a facility being constructed by the London
Legacy Development Corporation (LLDC) within the new cultural
quarter at Stratford, East London); Diversity and Inclusion baseliningof position; Across the UK governance; and the BBC’s Business
Process Outsource (BPO) re-procurement.
The ARC has conducted deep dives in the year including technology
risk; UK and international Security; sustainability and climate risk and
BBC Studios commercial risks. From a project perspective, the ARC
has conducted a deep dive on Across The UK; Diversity and Inclusion;
Strategic Technology Review; E20 (re-development of the EastEnderssite) as well as regular discussions on the critical project portfolio.
Risk reporting – Our regular Board risk report and the quarterly ARC
risk report are discussed at the Executive Committee prior to theBoard and ARC respectively. We have set the risk appetite of our key
operational risk areas and undertook a risk appetite assessment fortechnology risk. Our risk reporting includes a focus on significant
movements in the quarter, operational risk areas outside of appetiteand provides a view on emerging risk and watchlist items.
Risk registers – In addition to the current set of registers for News,
Nations and Content there has been further development on the risk
registers for Technology, Cyber Security, Health, Wellbeing and
Safety. Key risks are discussed at Divisional meetings and top-levelrisks are reported to the BBC Operations Committee.
Emerging risks – The Corporate Risk team, in collaboration withspecialist teams scan the internal and external environment in order
to identify emerging risks for the BBC. We consider such risks to be
unknown or known threats but whose impact on our operation is
unclear. The BBC’s Strategy team continuously horizon scans forupcoming areas of interest, threats and opportunities. Such risks arealso identified via working closely with the Divisions, embedding theconsideration of risk into Board and Operations Committee and
ARC papers.
Our emerging risks are broadly categorised as external/market
facing, political, legal and regulatory, operational and technological.
The timeframes considered for emerging risks are within the next
three to six months, in the next 12 months and in greater than 12
months. The types of emerging risks we have considered include: therisks associated with the Government’s Vision for the Broadcasting
Sector; the impact of the Online Safety Bill on the BBC; the potential
reforms of the UK’s data protection regime; the impact of climatechange on our audience behaviours as well as the impacts on ouroperations as we transition to a low-carbon economy.
Risk management – 2022/23 plans
In 2022/23, key improvement initiatives include refreshing ourapproach to monitor and report Strategic Risk; embedding riskownership for our priority corporate risks in order to enhance risk
oversight; identifying trends and themes from Divisional risk registerand driving action.
Our principal strategic and operational risks are set out overleaf.

Return to contentsKey to risk movement:
Movement in risk during 2021/22
Risk has increased in year

Public purposes

1

To provide impartial news andinformation to help people
understand and engage with the world
around them.

4

To reflect, represent and serve thediverse communities of all of the UK’s
nations and regions and, in doing so,
support the creative economy acrossthe UK.

2

To support learning for people of
all ages.

5

To reflect the UK, its culture
and values to the world.

3

To show the most creative,
highest quality and distinctive
output and services.

Risk has remained static in year
Risk has decreased in year

Strategic risks
1. Structural change in audience’s behaviour and the external landscape
What is the risk?
There is a risk that the BBC does not adapt quickly enough as thetransition from broadcast TV to online and from radio to digital
streaming (Subscription Video on Demand SVOD) across all age
demographics accelerates. As the UK creative industry emerges
from the pandemic and its associated effects, the long-term
effects of this structural shift may become permanent.

What is the impact?
Audience levels are not maintained across all BBC platforms. The
BBC is not valued by all audiences and/or society and we do notmeet the needs of underserved audiences, including younger
audiences, nations and regions, and black, Asian and minority
ethnic viewers.

How is this risk managed (current and planned mitigations)?
Pan BBC— Our Across the UK strategy is aimed at ensuring the BBC
reflects, represents, and serves all parts of the country.

How has this risk changed during 2021/22?
The transition of audiences from broadcast media to online media
has been a key trend for a decade. Whilst this adoption was initiallyassociated with younger audiences, this is no longer the case, withincreasing consumption for all audiences including older audiences.

Content— The BBC continues to deliver high-impact content in line with
our strategy of delivering value for all audiences. Over the next
12 months, key audience driving events include the Queen’s
Platinum Jubilee celebrations, the 2022 UEFA European
Women’s Football Championship in England, the Birmingham
2022 Commonwealth Games, the 2022 FIFA Men’s World Cup
in Qatar, and the return of Radio 1’s Big Weekend.

Video: SVOD adoption for over 65s nearly doubled during the
pandemic; homes that subscribe to two or more SVOD services
are rising (up to 65% of SVOD homes in 2021 up from 55%)
although early signs indicate that subscription rates may belevelling off. New SVOD services continue to launch.
Audio: Continued shift in listening towards online services withmusic streaming and podcasts growing rapidly.

— We will deliver a significant increase in editorial content in
Bitesize including content for Key Stage 3 pupils and brandnew Reception content in English and Maths.
— The return of BBC Three as a broadcast channel with
programmes aimed specifically at younger audiences.
News— Our news coverage of critical events has continued to bring inhuge audiences across the Six and Ten news bulletins – bothreach more than 12 million adults a week on average.
— We will continue in-depth coverage of the Russian invasionof Ukraine, helping audiences to understand events as they
unfold. We will continue to find ways to inform UK andinternational audiences about the conflict, such as therecently launched podcast Ukrainecast.

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Governance Report111GovernanceOur principal risks continued
1. Structural change in audience’s behaviour and the external landscape continued
Digital (including iPlayer, BBC Sounds, apps)— We have a refreshed and updated user experience andfunctionality across BBC iPlayer, BBC News Online,
BBC Sounds and BBC Sport Online.
— We have made a series of announcements relating to a digitalfirst BBC outlining our plans and ambitions to increase
investment into digital product and content development.
— We have put in place a new digital product operating model
under the leadership of a new Chief Product Officer.
— We will focus this year on investing into platform capabilities
that are shared across our product portfolio, such as
personalisation, metadata, and content production tooling,
as well as investing in specific skills such as data science andmachine learning.
— We will continue to improve iPlayer, which is our top priority forthe year ahead, by giving every user a relevant and rewarding
experience on every visit, using our expertise in editorial
curation and recommendations to improve content discovery,
and making further improvements to the user interface.
— We will continue to ensure BBC Sounds is available where ouraudiences want to listen, whether it is at home via smart
speakers, on the go via mobile devices, or via connected devices
in the car.
— We will also continue to improve BBC Sounds with more
effective personalisation, curation and search functionality.
We will also trial making some BBC radio programme podcasts
available for on-demand listening first on BBC Sounds.
— We will make local content more accessible on both the BBC
News and BBC Sounds apps. We will complete the rollout of
the redesigned and rebranded BBC News app, including a more
personalised service.
How is this risk monitored?
— Audience metrics including reach, use, breadth, and time spent
with the BBC by demographics including younger audiences,
black, Asian and minority ethnic, nations and regions.

Residual risk
There is a residual risk that the BBC is not able to adapt andaccelerate its response to the long-term trend of audiences
moving from linear TV to SVOD and radio to digital streaming
services.

— Unmatched viewing (consumption of non-broadcast content
e.g. SVOD, gaming content on TV sets).

Specifically, we have identified the following to consider
and/or address:— Metrics measured across TV, Radio, Sounds and iPlayer.

— Delivery of accelerated response to the digital needsof audiences.

— Performance and trends discussed at Executive Committee and
Board meetings.

— Harnessing and driving value from data e.g., personalisation.
— Making targeted investments into attracting and retaining
digital skills to enhance our product portfolio.
— Enhancing our content proposition for TV, iPlayer, BBC Sounds
and other digital services.

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2. Creativity and content
What is the risk?
The BBC does not maintain the quality and breadth of its content
offerings, for example in high-end drama due to operatingboundaries. This is against a backdrop where our verticallyintegrated competitors are investing heavily in content,
generating their own intellectual property (IP) and prising away
talent. Further, there is a risk that the BBC does not retain
ownership and/or control of its IP in order to maximise audience,
attribution and commercial value.

What is the impact?
Heightened competition from larger players results in being
priced out of acquiring content that represents the UK, which
impacts our ability to retain audiences in a highly competitiveenvironment.
Loss of value across the Group if BBC Studios is unable to respondto market changes, win profitable new business and grow new IP
for commercial exploitation.

There is a risk that BBC Studios fails to develop and grow new IP
for exploitation or loses rights to existing IP. Many global
customers commission on a work for hire basis. This means thatthey take ownership of most or all the rights to the content
produced. Customer budgets are also increasingly shifting fromacquiring content, to creating their own content/IP, bypassing
traditional producers.
How is this risk managed (current and planned mitigations)?
BBC Studios— The BBC Studios business is restructuring this year and willbring together creative and commercial decision making into
four distinct production genres. This creates one content
portfolio and strategy designed to support the business’s
ambitions and growth plans and will see all creative andcontent investment decisions taken with a single strategic
view across wholly and partly owned labels, BBC Studios
Productions, and the independent producers which BBC
Studios partners with for Content Sales.
— BBC Studios has investments in several independent
producers. This enables the business to partner with key
creative talent, whilst allowing them the freedom to focus ondelivering priority content in key/underserved genre areas.
— BBC Studios has commenced its own global direct-toconsumer strategy focussing on British TV and film content.
Services have successfully launched in North America,
Australia and South Africa (with further launches planned).
Ambitious plans are also in place for growing audio and digital
global news services.
— The business continues to recruit into key roles, demonstratingthat it remains an attractive proposition for talent. Incentives
have been independently reviewed to establish what is required
to support the commercial growth plans. The production
management strategy has been refreshed to address
recruitment and retention challenges in production withaction being taken to implement recommendations.
— BBC Studios will continue to promote BBC and other British
content to the world, through the selling of content, doing
deals and making programmes with international partners.
— The transition of Children’s production to BBC Studios will allow
this critical genre to grow and generate additional income.

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Governance Report113GovernanceOur principal risks continued
2. Creativity and content continued
BBC Public Service— We will continue our commitment to ensure diversity behindthe camera across three protected characteristics: Ethnic
Minority Groups, Disability and Socio-Economic Diversity (SED)
in all new commissions, to drive change in off-screen
representation.
— Our highly successful 50:50 gender equality programme
designed to equalise female and male representation on screen
and on-air will continue. We are ensuring representation also
includes Disability and those from Ethnic minority groups.
— By establishing partnerships with Northern Ireland Screen,
Screen Scotland, Creative Wales and Create Central in the
Midlands, BBC Three will fund opportunities for regional
independent production companies to develop and produce
locally based content.

How has this risk changed during 2021/22?
As global media giants increase their dominant positions in theindustry, they bring significant investment and funding into themarketplace and lock in key talent into lucrative exclusive deals.
Consolidation of the market continues, with mega mergers taking
place e.g., the merger between Warner Brothers and Discovery
and Amazon’s acquisition of MGM. Such deals strengthen thecontent pipelines across a range of genres.
From a BBC perspective, such activity significantly increases thecompetition for talent and continues to drive up the cost ofcontent and erode margins for our commercial businesses.

— We will continue to evolve BBC Four in line with the plans we
set out this time last year to move BBC Four to being the homeof both the BBC’s rich archive and arts and music
performances.
— We will work with multiple independent producers to mentor
and grow their capabilities, with a particular focus on diverse
and regional talent and producers.
— We are investing in high-impact content for children, including
extracting more value from Newsround, growing ourprogramme brands to deliver audiences to iPlayer and value tothe BBC Group, and future proofing our bitesize online offer.
We are also boosting performance and engagement including
developing iPlayer as a viable destination for children, boostinguse of online products and making the BBC a destination forfamilies with children.
— In 2022/23 we will commission our first three pilots from the
Ignite initiative, which is supporting the creative economy bydeveloping new UK animation talent from across the UK.
Residual risk
The residual risk reflects intense competition for talent andcontinuing trend in the rising cost of creating content, that is
unlikely to reset to pre pandemic levels.

How is this risk monitored?
— Results of annual commissioning surveys.
— Value and volume of BBC commissions across high-end
productions.

Specifically, we have identified the following to consider
and/or address:— Third-party investment in BBC commissions.

— The licence fee settlement, particularly at a time of highinflation and media super-inflation will mean a reduction in thereal-term investment we can make in the wider UK creative
sector.
— Challenges on delivering value from investments, as costs rise,
and the global market is dominated by a few large players who
can heavily influence prices and rights positions.
— Vertical integration and market consolidation (e.g., Discovery/
Warner merger) is likely to continue as more companies seek toestablish power and create their own content and IP. This locks
the BBC out of acquiring content and risks disintermediationfor BBC Studios Production and Distribution businesses.
— The programme supply for sporting events is heavily reliant on
the listed events regime.
— Retention of key creative talent in the BBC, in a highly
competitive market.

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Annual Report and Accounts 21/22— Measures of perceived and actual diversity on screen.
— Audience metrics for BBC programming.
— People/talent metrics are being tracked and are reported withthe business working closely with HR to flag issues and takeaction.
— Quarterly Performance Review process looking at financial andstrategic performance and interventions taken.
— Investment process and approvals set financial thresholds forinvestment and monitor performance and ROIs.
— Health of pipeline monitored against key content priority areas.
— Formats performance monitored across titles.
— Independent producer performance closely monitored acrossportfolio.
— Commissions won (BBC and third parties).

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3. Impartiality, trust and accuracy
What is the risk?
The BBC does not provide impartial, accurate and trusted news
content in the current environment, thereby not maintaining
audience trust in the BBC. A risk that our editorial processes andprocedures are not followed correctly on individual stories orwithin teams.

What is the impact?
Failure to deliver impartial, trusted and accurate news erodes
trust in the BBC and leads to audience dissatisfaction and loss.

Further, there is a risk that we do not reflect the views, opinions
and identities from across the UK.
How is this risk managed (current and planned mitigations)?
— Our ten-point plan on impartiality and editorial standards
incorporates our response to the Serota review and represents
our most significant push to ensure BBC content, not just inNews but across all our output is fair, accurate and impartial,
and reflects a broader set of viewpoints and perspectives fromacross the UK.
— The BBC’s Editorial Guidelines set the editorial values andstandards for the BBC. The Guidelines reinforce the Charter
requirement to act in the public interest, serving all audiences
through the provision of impartial, high-quality and distinctive
output and services which inform, educate and entertain.
— Our impartiality and social media guidance support the BBC’s
Editorial Guidelines; together, these set the highest standards
in the industry.

How has this risk changed during 2021/22?
Our impartiality scores are still under pressure across the political
spectrum. Polarised public opinion on national matters continues
to remain a challenge.
However, this risk has decreased from last year based on audience
research data, and a 92%+ Safeguarding Impartiality training
completion rate for BBC staff. The staff survey results support thisimprovement with high scores for staff understanding of why
impartiality is important for the BBC and how frequently
managers champion impartiality. The implementation of our
ten-point plan is designed to mitigate this risk further but is not
fully in place yet, and some initiatives will take time to have effect.
The Board and Executive Committee are prioritising andmonitoring this more systematically than ever before.

— We will publish new BBC Board-led thematic reviews ofcontent, the first of which will focus on the BBC’s coverageof UK public spending and taxation.
— We will begin the new programme of internal content reviews,
assessing the extent to which news and factual content meets
editorial standards; these reviews will cover other areas inaddition to news and factual content.
— Our new Safeguarding Impartiality training has been rolled out
to all staff and we will now roll it out more widely to include
independent producers.
— Dedicated focus on impartiality training for new joiners,
to ensure that a strong understanding of the essentials of
impartiality is built into all BBC careers from the outset.
— We have included impartiality questions for the first time in thestaff survey, and this is already incorporated into the Senior
Leader Index for discussion with senior leaders when
performance is reviewed.
— We have allocated more resource to Editorial Policy andincluded various measures to increase their profile and impact.
— We have updated the terms of reference for the Editorial
Guidelines and Standards Committee (EGSC) to enhance theirrole in monitoring editorial risk, and two external editorial
experts are being recruited.
— We are updating the Complaints Framework to include
fast-track complaints handling and we will publish a process for
self-initiated investigations into editorial breaches.
— Rules on external engagements have been in place since 2021,
with an external event register requiring all journalists andsenior leaders across the BBC to seek written permission for
external speaking engagements and other public events. A
register of paid external events is published each quarter.
— We will tackle misinformation, propaganda and the rise ofstate-backed narratives by continuing to play a leading role in
the Trusted News Initiative, an industry collaboration of major
news and global tech organisations.
— BBC Monitoring will continue to track misinformation and false
narratives around the elections, the pandemic, and vaccines
globally, investigating who is spreading online disinformation.

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Governance Report115GovernanceOur principal risks continued
3. Impartiality, trust and accuracy
Residual risk
We have identified the following to consider and/or address:

How is this risk monitored?
— Audience surveys and metrics measuring value and impartiality.

— Continuing risk around providing impartial, trusted andunbiased news and content across BBC platforms.

— Impartiality training statistics.
— External events register.

— Continuing risk with misinformation in the UK and globally.

— A new public register of paid-for engagements, publishedquarterly.

— Developing the next generation of on- and off-air talent andworkforce who embody the BBC’s values on impartiality.

— Enhanced roles of the Editorial Policy team and Editorial.

— Challenges relating to depth of understanding and skills acrossthe BBC in the increasingly complex and challenging external
environment.

— Guidelines and Standards Committee.
— Staff survey results.

— Strong use of social media particularly for younger people
leading to increased concerns regarding the spread of false or
misleading information.
4. Global reach
What is the risk?
a) Global reach
There is a risk that our global reach ambition to reach 500 million
people by the end of 2022 is impacted by global market conditions,with more choice for users and consumption turning to social
media, and by constraints to our distribution in key territories.
b) BBC attribution
The high proportion of World Service reach delivered throughsyndication creates a risk that audiences in some parts of theworld do not attribute content to the BBC.

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What is the impact?
a) Would result in an inability to meet the global audience targets
set for the World Service.
b) Audiences not correctly attributing content to the BBC could
result in lower levels of recorded reach, as well as greaterpressure on levels of trust in the content and/or service inlocal markets.

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4. Global reach
How is this risk managed (current and planned mitigations)?
— Output continues to be monitored and supported by primaryresearch, to develop our local and global proposition and tounderstand how we can continue to reach a wider global
audience, including a target for younger and female
demographics.

How has this risk changed during 2021/22?
There has been a strong increase in audience numbers, reaching
493 million. Much of this increase has been driven by growing ourdigital reach – both on our own platforms and across social sites.

— Research projects on drivers of audience impact, and the needs
and behaviours of key demographics, have recently been
implemented and will inform future content and product decisions.
— The performance of all platforms is tracked across all markets
to ensure that editorial and strategic investment decisions
locally are made within the wider global context and reach andimpact goals.
— Syndication contracts are carefully managed to ensure that we
can continue to reach the broadest audience through trusted andreliable partners, whilst maintaining strong, clear BBC branding.

Negotiations with Government over World Service investment
have led to an extension of FCDO funding to 31 March 2023, witha continuation of the one-year uplift of £8 million to support the
expansion of digital services and key initiatives tackling global
disinformation – e.g., investigations such as Africa Eye, which help
to build brand, reach and impact.
BBC World Service will receive an additional £4.1 million in
emergency funding to help it continue to bring independent,
impartial and accurate news to people in Ukraine and Russia andcreate content to counter disinformation about the war in Ukraine.

— Having the right platform mix in different markets is key todelivering reach, influence and impact – distribution patterns
are continually monitored to ensure there is the right balancein each market.
— We will accelerate the digital transformation of the World
Service, improving our digital products, enhancing core live
pages and video performance to provide a better experiencealigned to audience needs.
— The BBC World Service, in English and more than 40 otherlanguages, will continue to explore global themes such as how
countries are attempting to move beyond the Covid-19
pandemic, how they are dealing with the challenge of climatechange, and continue our coverage of critical world events,
including the Russian invasion of Ukraine.
— We will deliver new investment in our digital news output in key
global markets, and BBC Studios will continue to develop andgrow direct-to-consumer digital subscription services, buildingon the North American launch of factual video streaming
service BBC Select and BBC Podcasts Premium.
Residual risk
The residual risk reflects the growing ambition to build on strong
global performance to deliver greater audience impact throughcontent and services.
Specifically, we have identified the following to consider:— Increasing the focus on strengthening engagement with key
audience groups and building a more habitual relationship in
key markets around the world – may place pressure on futurereach growth (in outer years beyond 2022).

How is this risk monitored?
— Global reach vs target.
— Quality indicators of audience impression.
— Impact indicators of BBC on audience.
— Audience mix (syndication, online).
— Composition of global audiences (younger audiences, female).

— Whilst World Service funding has been secured for 2022/23,
longer-term funding remains uncertain.

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Governance Report117GovernanceOur principal risks continued
5. Our finances
What is the risk?
The risk that we do not effectively manage and/or offset the risingcost of producing and broadcasting the high-quality and creative
output that our audiences expect and continuously invest toenhance our digital services.

What is the impact?
Reduction in licence fee income or returns from commercial
entities or failing to mitigate inflationary pressures on the costbase will have a negative impact on services and the scope of what
the BBC will be able to offer its audiences, staff and contributors.

On the licence fee, the risks include licence fee decline e.g., a risein licence fee evasion or increased cost of collection or a reduction
in household growth. There is also a risk that the BBC does notcontinue to drive efficiencies in its operations and thereby does
not deliver even greater value for money.
There is a further risk that the BBC’s commercial entities fail to
respond to market challenges, therefore reducing financial returns.
Future adverse changes to the actuarial valuation of the pension
scheme represent a risk to financial stability, as would any further
increase in the future service costs for the defined benefit pension
scheme – further details are provided on page 56. A reduction in
the BBC’s credit rating would increase the cost of funding.
How is this risk managed (current and planned mitigations)?
— Close monitoring of licence fee collection, evasion, including
reduction in household growth rates.

How has this risk changed during 2021/22?
The financial challenges remain an elevated risk for the BBC.
The licence fee will be frozen at its current price for two years from
22/23 and then rise in line with inflation for the following four
years, at a time of high inflation, including in the energy markets
and super inflation in the content and talent market.

— Additional borrowing capacity granted to the commercialgroup, enabling greater investment and growth opportunities
that will deliver additional financial returns.
— Scrutiny of the BBC’s financial position at the Board, Audit andRisk Committee, Commercial Board and Executive Committee,
which has been further enhanced by the Operations Committee.
— We continue to ensure our overheads remain low and havebeen externally benchmarked to be in the upper quartile.
— A recovery plan has been agreed between the BBC and pension
scheme trustees with a deficit payment plan agreed.
— Finance team undertake longer-term planning and forecasting
to aid spend decision making.

Viewing habits and falling audience share pose a financial risk as
people are less likely to pay the licence fee if they do not view
licensable content.
There has been continued focus throughout the year to deliver
efficiencies and savings plans. Additional savings and mitigations
are planned going forward considering increased inflationarypressures to ensure continued delivery of high-quality outputs
to the licence fee payer. This year we successfully delivered an
additional £274 million of annual savings bringing total savingsat the end of the plan to £1,029 million, including £38 million of
one-off savings.

— Annual going concern and viability reviews to assess ongoing
financial stability.
— Maintenance of a stable credit rating with no significant change
Residual risk
The residual risk reflects ongoing potential adverse impacts
on licence fee revenues and the financial returns targets forcommercial subsidiaries.
Specifically, we have identified the following to consider
and/or address:— Current high levels of inflation which will have a significant
impact on our staff and our suppliers as key contracts are
re-negotiated as well as media super-inflation.
— The recent licence fee settlement will require the BBC to find£285 million extra in annual savings by 2027/28.
— Increased contributions from commercial activity.
— Successful delivery of a revised operating model including
delivery of savings to meet the reduced licence fee income.

How is this risk monitored?
— Collection rates for licence fee revenue.
— Regular reporting to external stakeholders e.g., Ofcom, DCMS,
pension trustees etc.
— External benchmarking of activities and use of procurement
processes to deliver value.
— Metrics on commercial entities performance including sales,
EBITDA and free cash flow.
— BBC credit rating.
— Performance of BBC defined benefit pension scheme.
— Regular reviews and reporting to the Executive Committee,
Board, Audit and Risk Committee and Commercial Board.

— Risks relating to post-2027 funding model.

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6. Our people
What is the risk?
The extent of organisational and culture change in progresscreates a risk that the organisation is placed under significant
operational strain.

What is the impact?
Inability to retain and hire talent and disengaged staff impacting
on productivity and increasing the potential of industrial action.

There is a risk that we are not able to retain employees in key areas
due to the increased level of change and disruption, difficulties
implementing hybrid working, or disengagement from failure tomeet our diversity and inclusion (D&I) targets.
How is this risk managed (current and planned mitigations)?
— Placing utmost importance on the wellbeing of BBC staff bycreating a safe environment, committed to hybrid working.

How has this risk changed during 2021/22?
Our people risk has increased due to several reasons as outlined
below.

— Clear diversity targets as set out in our new Workforce
Diversity and Inclusion Plan 2021-23 including increasing the
proportion of women, those from an ethnic and minority
background and those with a disability. This plan will deliver
an inclusive culture and supports our commitment to create
a 50:20:12 BBC.

The organisation continuing to adopt a hybrid way of working
remains challenging, as we are transitioning the workforce backinto the workplace environment.
There is a high volume of organisational change, particularly with
implementation of the Across the UK strategy, and changes are
ongoing in News, Technology and Product groups.

— Plans to change the socio-economic mix of our staff to betterreflect UK society. By 2027/28 we want 25% of our staff tocome from a lower socio-economic background.

The level of culture change is underpinned by a radical process oftransformation within each of the BBC’s Divisions, introducing
bold, long-lasting initiatives and structural innovation, creating aleaner and simpler organisation and ensuring every area meets the
50:20:12 targets.

— Continue the myConversation approach to staff performanceand development focusing on goals, career and development.
— Continued focus on the Senior Leadership Index Programme;a consistent way of measuring, valuing and supporting ourleaders and ensuring they are held accountable for theirperformance.
— Deliver the BBC’s core apprenticeship programme with plans to
introduce 1,000 apprenticeships by 2025, and the enrolment of
the first cohort into the Apprenticeship Hub in the West Midlands.
— Enhanced package of benefits to staff, which now include
workplace savings products to support financial wellbeing.
— Launch of the BBC Values Programme with a renewed focus
on workplace culture to support colleagues.
— Whistleblowing hotline in place and investigations conducted
where appropriate.
— Open and effective way of working with the unions.
— Extensive staff communications, with engagement monitored
via staff surveys.

How is this risk monitored?
— Employee satisfaction survey results.

Residual risk
The residual risk relates to the impact of significant change
across the organisation.

— Employee retention, turnover and ‘reason for leaving’.

Specifically, we have identified the following to consider
and/or address:— Black, Asian and minority ethnic, disability, gender, LGBTQ+
representation in leadership roles and all staff.

— Retention of key staff in the BBC.

— D&I targets monitored as part of the Senior Leadership Index.

— Higher staff turnover in recent months following the pandemic.
— Long-term impacts on organisational strain for a simplified BBC.
— Level of change and the risk of industrial action as new
initiatives and savings plans continue.

— Monitoring of whistleblowing hotline.
— Completion rates of training courses.
— Uptake of wellbeing resources.

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Governance Report119GovernanceOur principal risks continued
Operational risks
1. Health, safety and security
What is the risk?
The risk that we fail to protect the health, safety, security andwellbeing of our employees and members of the public with whom
we interact. This includes ensuring that those with whom we havea duty of care over are not put at harm from a significant single
event or over a period. Risk that we fail to provide a Covid-secureenvironment within our workplace and sites.

What is the impact?
Inability to look after the physical and/or mental health of ourpeople, contributors and visitors. Failure in this regard may also
have a reputational, legal or regulatory and financial consequenceon the BBC.

How is this risk managed (current and planned mitigations)?
Health and safety:— Covid-19 Risk Assessment and Covid Secure measurescontinually reviewed and updated throughout the pandemic toenable people to work safely in BBC workplaces.

How has this risk changed during 2021/22?
The pandemic provided a continuous challenge for businesses
and short notice changes in response to new variants, new
Government rules and an evolving risk profile. The BBC continues
to risk assess to ensure that its measures were suitable andsufficient, and adapted to the changing risk profile.

— Senior Managers and Safety Advisors undertook a series of
Assurance Monitoring Activity across the organisation
specifically focussed on Covid-19 risk management to ensure
controls were being adhered to and risks were suitably assessed.
— Health (physical and mental) and wellbeing support wasincreased to provide a range of services relevant to thechallenges people were facing as a result of the pandemic.
— The BBC collaborated with other broadcasters to publish theProduction Industry Covid-19 Guidance to enable productions(BBC and independent) to work safely through the pandemic.
— The reporting platform for incidents, risk assessments,
assurance and inspections were improved to increase
accessibility for the business and to mature the safety
performance measurement capabilities.
— Mandatory training in Safety re-designed and made available
online to ensure everyone can attend training in a way thatworks best for them and their ways of working.
Safeguarding:— Safeguarding has successfully transitioned into its new
Governance and Assurance model, focusing on assurance
gathering of safeguarding mitigations both internally andacross third-party engagements, ensuring risks are
effectively managed.

With the introduction of the Government vaccination programmes
and community controls, the severity of the virus has reduced toa level where controls can be reviewed and adjusted to facilitatea move to ‘Living with Covid’.
BBC Safety has worked towards continual improvement of the
Safety Management Systems making the ability to own andmanage safety risks more user-friendly and thereby increasing
capability in risk ownership.
Increased Criminal Records Checks at enhanced level for relevant
talent and staff has provided greater scrutiny and as such is
reducing risk. Safeguarding awareness training being embedded
within new group wide mandatory training modules raises
awareness of safeguarding and how to raise concerns across theorganisation, broadening the culture of transparency and trust.
A focus on Safeguarding assurance has improved the complianceculture across the business, with control measures and theirsuccessful implementation being further embedded across all
divisions, which in turn pushes the risk trend down.
The pandemic limited international travel to hostile environments
and where required, online training was delivered. Face-to-facetraining restarted in December 2020.

— Safeguarding awareness training has been approved for
expansion into all staff mandatory modules to be launched inJune 2022, with higher level training already fully updated andrelaunched to reflect safeguarding best practice within the
broadcasting sector.
— Criminal records checking (CRC) guidance has been updated
to broaden applicable regulated activity roles across theorganisation thereby further strengthening current CRC
provision across the BBC Group.
— Working with Children advisor network has been re-scoped andre-launched thereby enhancing provision of higher levelsafeguarding trained staff throughout the business.
Security/high-risk deployments:— Specialised training in place for staff on high-risk deployments(and their managers) and each deployment subject to thoroughrisk assessment. Additional support provided on the ground tostaff working in Afghanistan, Ukraine and Russia by specialist
teams including the extraction of BBC staff.
— Scenario planning and simulation exercises conducted with key
management teams.
— Ongoing security reviews for BBC premises and outside
broadcasts, and close links in place with UK security authorities
and cross-sector security forums.
— All reported incidents investigated to identify any corrective
action.

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1. Health, safety and security continued
How is this risk monitored?
— Formal approach to reporting of Injuries, Diseases andDangerous Occurrences Regulations (RIDDOR).

Residual risk
The residual risk reflects the continued need to safeguard ourpeople, our journalists and reporters as they report from the UK
and internationally.

— Performance on health and safety risk assessments.

Specifically, we have identified the following to consider and/or address:— Risks to our journalists physically and online, both in the UK andinternationally.

— Completion rates of mandatory training.
— Timeliness of CRC checks and completion rates.

— Impact on mental health, wellbeing issues and occupational healthlonger-term impact.
— Formal training and background checks on talent appliedconsistently.
2. Business management and change
What is the risk?
The risk that we do not effectively manage our business operations
and change programmes impacting the delivery of strategic or
operational goals. This includes the critical project portfolio,
business continuity plans and third party suppliers.

What is the impact?
The BBC is subjected to unexpected financial cost, a detrimental
impact upon our reputation and/or regulatory intervention. Delays
to critical change initiatives impacts the BBC’s ability to deliver
against key strategic and operational objectives as well as
impacting financial sustainability and staff morale.

How is this risk managed (current and planned mitigations)?
— Major projects receive monthly oversight from Operations
Committee (OC) ensuring management accountability. For the
Critical Projects Portfolio, additional quarterly scrutiny isprovided by the Audit and Risk Committee (ARC).

How has this risk changed during 2021/22?
Major projects have weathered the impacts of the pandemic
and are largely operating with greater certainty than this time
last year.

— Executive champions have responsibility for all criticalprogrammes on the Operations Committee portfolio.
— The Corporate Project Management Office (PMO) assured thebusiness benefits and outcomes of critical projects through its
assurance framework and ongoing engagement until
December 2021. A new Transformation Office and separate
project Assurance function took over from 2022.

However, volatility in the macro-economic environment createspressures on project budgets and contingencies, so close
management attention is being maintained through the
Operations Committee and ARC.

— The Project Assurance function focuses on assuring bothdelivery risk and providing value to audiences. Assurance isevidence based and includes both point in time reviews andongoing structured assurance across the BBC change portfolio.
— Dedicated, skilled project teams applying project management
disciplines (backed by a Project and Change job family).
— Procurement monitors spend to ensure that supplier contracts
are in place, and to assess the adequacy of suppliermanagement to deliver value for money.
— For the East Bank project, we are implementing a programme
which explores commercial opportunities to utilise studio space
to realise greater value from the facility.
Residual risk
The residual risk relates to the ongoing challenges in delivering
the Critical Projects Portfolio (CPP).

How is this risk monitored?
— Monthly status reporting of critical projects to the Operations
Committee and BBC Board.

Specifically, we have identified the following to consider
and/or address:— Operations Committee oversight of strategic change.

— Inflation and increasingly volatile external environment andthe impact on the high number of change initiatives withinterdependencies. This is particularly evident in construction
projects (E20 and East Bank) where the market volatility formaterials and services remains a risk.

— Independent assurance of CPP to Executive Committee,
Board and ARC.
— Formation of Transformation Office reporting into theChief Operating Officer.

— Risk of organisational strain and change fatigue is high.

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Governance Report121GovernanceOur principal risks continued
3. Compliance
What is the risk?
The risk that we fail to comply with legal, regulatory and otherstandards/obligations (including counter fraud and internalrequirements e.g., editorial compliance) pertaining to the BBC.

What is the impact?
Inadequately managed compliance risk may result in reputational
damage, loss of trust, legal action, fines or other penalties.

How is this risk managed (current and planned mitigations)?
— Policies in place, aligned with legal and regulatory
requirements, supported by advice from subject matter
experts, and detailed monitoring and reporting.

How has this risk changed during 2021/22?
There continues to be a high level of scrutiny in the regulatoryenvironment and external interest in editorial judgements.

— Mandatory training modules covering key compliancerequirements (e.g., anti-bribery, bullying and harassment,
disability confident, fair selection, fair trading). The mandatory
training offering has been reviewed to streamline and relaunch the offer in 2022/23.

The Serota review was completed in year and maderecommendations on the BBC’s editorial processes, governanceand culture.
The trend of complaints volumes has continued due to polarised
public opinion, the political landscape and the role of social media.
Internal Audit have continued with a rolling programme ofcounter-fraud assurance activity, covering areas such as supplier
payments, banking controls and IT asset usage. Development of aControl Self-Assessment (CSA) process for overseas bureaux has
been completed.

— Established editorial policy in place with clear process tohandle and respond to complaints within the BBC.
— Process in place to ensure compliance with Ofcom regulatory
requirements, also supported by reporting and monitoring.
— Ofcom complaints monitored with regular reporting to the
Director-General and Executive Committee, and monthly
Board reporting.
— Specialist teams in place to support compliance with tax, legal,
employment, litigation, and other regulatory compliancerequirements.
— Timely completion of staff onboarding and renewals of relevant
checks including eligibility/right-to-work and disclosure andCriminal Records Checks.
— Due diligence and vetting checks on key suppliers and third
parties to manage third-party risk, including those pertaining
to modern slavery.
— In October 2021 we published our ten-point plan on
impartiality and editorial standards. This incorporates our
response to the Serota review and represents our mostsignificant push to ensure BBC content, not just in News but
across all our output is fair, accurate and impartial.
— A counter fraud awareness toolkit with supporting resources toreport suspected fraud launched on the corporate intranet.

How is this risk monitored?
— Compliance against Ofcom requirements.

Residual risk
The risk of non-compliance with legal, regulatory requirements
and other obligations remains and may increase as the focus of
regulatory bodies returns to business-as-usual matters.

— Complaints (volume and management).
— Legal cases and outcomes.

Specifically, we have identified the following to consider
and/or address:— Tax proceedings and ongoing cases.

— Ofcom’s approach to regulating the BBC.

— Grievance and disciplinary case numbers and trends.

— Management of the overall trend of increasing complaints levels.

— Whistleblowing process.

— Risk of fraud likely heightened e.g., with wider economic factors.

— Rolling Internal Audit fraud assurance plan.

— Divisional process level controls framework.

— ARC deep dives are conducted.

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4. Technology
What is the risk?
The risk that we fail to provide a resilient broadcasting service
across all distribution channels and/or protect the confidentiality,
integrity or availability of the BBC’s data through a cyber-attack.

What is the impact?
Potential to compromise our output to our audience as a result oflack of availability or quality.
Potential to compromise the availability, integrity and accessibilityof information, which could result in reputational and financial
damage and non-compliance with legal and regulatory
requirements.
Potential to compromise the ability of our technology and services
to enable us to perform effectively as an organisation.

How is this risk managed (current and planned mitigations)?
Broadcast and online technology:— Resilience is designed into the BBC’s systems and services, forexample ensuring no single points of failure in critical systems.
This multi-layered approach is a core component of the BBC’s
business continuity capability.
— Operational performance for both broadcast and online
services is continuously monitored using a range of metrics,
including service availability, outages and incidents. Targets forour critical services form part of our contractual agreementswith our key partners.
— Well-rehearsed business continuity and disaster recovery plansin place. This year we took the opportunity to further refine andimprove these plans, incorporating learning points from theCovid-19 pandemic and scenario planning and preparedness in
response to UK National Risk Register risks. As part of thiswork we provided, in partnership with Arqiva, assurance to the
DCMS of our ability to maintain resilient broadcasting systems.
Cyber security:— The BBC’s cyber risk profile is continuously evolving, and amulti-layered approach is used to reduce the likelihood of
exploitation and impact to protect the BBC, its staff, itsaudiences and suppliers as far as practically possible.

How has this risk changed during 2021/22?
The risk that the BBC will continue to be targeted by malicious andsophisticated cyber-attacks remains high, within a continuously
changing landscape.
In response to the current situation in the Ukraine and Russia andin line with recent guidance from the National Cyber Security
Centre, we have adopted a heightened state of awareness andpreparedness.
The performance of our output critical services has continued
with no change in the availability of critical broadcasting and no
deterioration in our output areas throughout the pandemic.
Our broadcast continuity plans have been updated, tested
and assured.
In August 2021 a major incident occurred at the Bilsdaletransmitting station, with a fire rendering the mast inoperable
and the damage caused ultimately requiring it to be felled.
The BBC has worked closely with the transmission on theimplementation of temporary alternative arrangements to restore
services to affected viewers and listeners pending rebuild of apermanent structure at the site.

— Our Information Security framework covers a range ofmeasures, including identification and protection of assets;
detection, response and recovery from cyber threats; ensuringsoftware is licensed and supported; backing up business critical
data, ensuring compliance with Information Security standards
and procedures; training and awareness campaigns;
operational controls such as patching and vulnerability
management, combined with threat intelligence.
— We have strengthened our cyber resilience in line with recent
guidance from the DCMS and the National Cyber Security
Centre (NCSC) through a combination of enhanced planningand preparedness, proactive threat hunting and by further
reducing our exposure to vulnerabilities. This work has includeda ‘Gold’ rehearsal exercise based on a Ransomware attack
scenario to test the effectiveness of our corporate incident
management framework, the implementation of additional
measures to mitigate risks associated with human factors andcyber behaviour and continued engagement with the NCSC.

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Governance Report123GovernanceOur principal risks continued
4. Technology continued
Residual risk
Key residual risks which are being addressed:— Legacy broadcast infrastructure: The BBC balances the need tomaintain the operational integrity and resilience of ourtechnology infrastructure and services with strategic
investment in digital capability, new functionality for audiencefacing services and the increasing move of enterprise anddigital services to the cloud.
— Human factors: risks associated with human error and behaviour.

How is this risk monitored?
— Outages and adherence to recovery time objectives are closely
monitored to ensure minimal disruption to broadcast services.
— Ongoing monitoring of a range of indicators, including
completion of mandatory cyber security training; the level andseverity of cyber-attacks; policy dispensations and risk
acceptance points; and the level of disruption to content output.
— Ongoing liaison with the National Cyber Security Centre toprovide cyber risk intelligence.
— Our Cyber Security Dashboard is used to track ourorganisational cyber security maturity against the National
Institute of Standards and Technology framework, to provide
a strategic view of the BBC’s residual risk.

5. Data protection
What is the risk?
The risk that we fail to comply with the UK and EU GDPR and dataprotection legislation and fail to adequately protect the personal
data we process and handle.

What is the impact?
Inadequately managed data protection risk may result in
reputational damage, loss of trust, legal action, the payment ofdamages to individuals, customers and/or suppliers, fines or otherpenalties from the regulator (ICO).

How is this risk managed (current and planned mitigations)?
— UK GDPR-compliant policies and processes on data protection
and privacy, including data subject rights, data protection
impact assessments and public-facing privacy policies.

How has this risk changed during 2020/21?
The risk profile remains static due to the stable number of
personal data breaches, and those that were reported to the ICO.

— Data protection training and awareness for staff, including the
introduction of an advanced module and a refresh of themandatory training module.
— Resilience of IT systems.
— Access to in-house and external data protection legal advice.

We continue to see an increased awareness of individuals’ rights
under the GDPR, with an ongoing upward trend in the number ofdata subject requests especially data erasure requests.
We have seen an increase in ICO complaints, although we continue
to experience a limited number of cases where further action orfollow-up is required from the BBC.

— Oversight by the Data Protection Officer.
Residual risk
The residual risk relates to increased processing of special
category personal data, the shift to hybrid working, the growingrole and use of personal data in BBC product development andpersonalisation, and the impact of geo-political events. This isalongside an increasing awareness of individuals’ rights under UK
GDPR, which has been evidenced through the volume of data
subject rights requests.
Specifically, we have identified the following to consider
and/or address:— New technologies and products having a data protection impact.

— Increase in Data Subject Erasure Requests.

— Monitoring the number of complaints received by the BBC and/or the ICO.
— KPI metrics/dashboards for several data protection areas
including number of data incidents and breaches; number of
DSARs and timeliness of response; number of other data
subject rights requests and complaints metrics.
— Data Protection Forum (Data Protection Officer, Chief
Information Security Officer, Director of Legal – Information
Rights, and BBC Studios’ Chief Privacy Officer).

— Consistency of application of data protection complianceacross the BBC.

— Increased Data Subject Access Requests (DSARs).

How is this risk monitored?
— Monitoring the level of situations necessitating a report to the
ICO, including timeliness and results.

— BBC Group Data Protection Forum (BBC Public Service,
BBC Studios, Children in Need, BBC Media Action and
BBC Pension Trust).

— Ongoing timeliness of DSARs.

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6. Environment sustainability and climate change
What is the risk?
The risk that we do not manage our impact on the environment
from our productions and operations in line with our 2030 Net
Zero ambition as defined by our Science Based Targets, which
cover decarbonisation of our direct operations, Scopes 1 and 2, as
well as our total Scope 3 including our supply chain. Additionally,
there is a risk that we don’t consider the physical and transition
risks posed by climate change on our business operations.
Having committed to the Climate Content Pledge (to integrate
the latest climate science into our programmes, excluding News),
there is a risk that we do not evidence change in our editorial
content to better inform audiences of climate change risk
and mitigation.

What is the impact?
Negative public and audience perception in three areas:
1. For not meeting our Net Zero and Climate Content
commitments
2. For failing to match the levels of environmental action shownby other broadcasters
3. For insufficiently impartial coverage of climate related matters.
Negative employee perception can also result in challenges withtalent and employee recruitment and retention.

How is this risk managed (current and planned mitigations)?
— Sustainability Director appointed with Sustainability Team now
in place with technical and engagement skills.
— Adoption of the TCFD framework with financial impact
analysis included.
— Science Based Targets for Scope 1 and 2 and Scope 3 are now
approved and in place.
— Enhanced the governance arrangements over sustainability
with a Sustainability Steering Group of Divisional senior leaders
now in place, with upward reporting to Audit and Risk
Committee and the BBC Board.

How has this risk changed during 2021/22?
The risk profile is increasing due to heightened expectations anddemands being placed on businesses to tackle climate change andsustainability matters.
The BBC has made a public commitment to become Net Zeroby 2030 and has developed a strategy that is underpinned with
Science Based Targets. The BBC is now in its second year of
implementing TCFD and is undertaking scenario analysis ofmaterial risks.

— Sustainability data reporting platform selected to enable
sustainability performance management and tracking.
— Mandatory Albert certification for in-house productions
with a potential for this to expand to independent production
companies.
— Sustainable production training in place for production staff.
— Editorial training in place e.g., for commissioning editors,
producers and programme makers. We delivered training
to News staff ahead of COP26.
— Targets and commitments for 2022-2030 set to manage
our energy consumption, carbon emissions and waste
management.
— Continued provision of specialist content for TV, radio,
podcasts on environment sustainability and climate change.
— Regular mode of internal communication campaigns andactivities on environmental matters.
How is this risk monitored?
— Board oversight and support.

Residual risk
The residual risk relates to the mid to long-term delivery,
execution and operationalisation of our Net Zero strategy.

— Regular reporting and metrics relating to energy consumption,
waste management and carbon emissions.

Specifically, we have identified the following to consider
and/or address:— Monthly oversight provided by the Sustainability Steering Group.

— Approval of the Net Zero business case with sufficient funding
allocated for investment required to meet our Scope 1, 2 and 3
Science Based Targets.

— Implementation of the TCFD roadmap.

— The level of innovation and change required to deliver our
Net Zero strategy.
— Ability to influence suppliers and partners in sustainability andclimate-related decisions.
Note The risks listed do not compromise all those associated with the BBC and the numerical referencing does not denote an order of priority Additional risks and uncertainties notpresently known to management, or currently deemed to be less material, may also have an adverse effect on the BBC These less material risks are kept in view in case their likelihood
or impact should show signs of increasing

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Governance Report125GovernanceOur principal risks continued
Risk management and internal control framework
The BBC’s process for identifying, evaluating and managing
significant risks remains aligned with the Financial Reporting
Council’s Guidance on Risk Management, Internal Control and
Related Financial and Business Reporting. Risk management
mechanisms are embedded within each division, with central
co-ordination to identify, escalate and manage pan-BBC risks.
Assessing the effectiveness of risk management andinternal control
The Board continues to use several mechanisms to help it assess theeffectiveness of the system of risk management and internal control
across the BBC in order to make its assessment that the overall levelis adequate.
Risk oversight: The Board delegated responsibility for the detailed
review of risk and control processes to the Audit and Risk Committee(ARC). The ARC met six times during 2021/22 to provide scrutiny andoversight over the effectiveness of controls and the management ofrisks (further information is provided on page x). A regular risk reportis also presented to the BBC Board.
Internal Audit: The Internal Audit function maintained its
independent reporting line into the Chair of the ARC and conducteda programme of audits aligned to the principal risks facing the BBC.
Findings from these audits have been reported to senior
management and the ARC, with remediating actions tracked
to completion.

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External audit and assurance: The findings of external audit work
performed by the National Audit Office (NAO) have been reviewed by
the ARC, and any recommended actions are tracked to completion.
In addition, the National Audit Office continued its programme of
Value for Money audits. There is also external assurance provided on
our Fair Trading arrangements for ensuring that our processes andpractices, when we undertake commercial and trading activities,
does not risk distorting the market. These arrangements areoverseen by the BBC’s Fair Trading Committee. In 2021/22, the NAO
completed a Value for Money review of BBC savings and reform. The
study recognised that BBC had consistently made savings over the
past decade, was forecast to exceed its original target of £800m in
annual savings and was largely on track to meet an increased savings
target of £1 billion which reflected the estimated financial impact ofthe pandemic. Recommendations to increase the informationcollected on savings and implement lessons learned from thepandemic are in progress.
Whistleblowing: A protected disclosure policy is in place, supported
by a ‘whistleblowing’ hot line, administered by an independent
external company to ensure anonymity. This has been extended andis now available in 43 languages. A non-executive director has been
named on the policy as the contact for the raising of the mostserious concerns.

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Viability statement
In accordance with the UK Corporate Governance Code, theBBC Board has assessed the prospects of the Corporation overa longer period than the minimum 12 months required by the‘Going Concern’ provision.
The three-year plan covering the period to 31 March 2025 has been
considered by the BBC Board. A three-year horizon is consideredappropriate as this is in line with the BBC’s budgeting and planning
process. The three-year plan considers cash flows as well as thefinancial covenants and credit facilities.
Key assumptions underpinning the three-year plan, and theassociated cash flow forecast, are the licence fee settlement that set
the financial parameters for the BBC from 2022/23 to 2027/28 and
the Charter and Agreement that protects a licence fee until 2027
along with the delivery of additional savings identified. In light of theuncertainty of the economic recovery following the Covid-19
pandemic, it has been assumed that some increased production
costs continue in the short term.
A robust assessment of the principal risks facing the Corporation,
as described in the Annual Report and Accounts from page 110, hasbeen undertaken, including those that would threaten its businessmodel, future performance, solvency or liquidity. For 2022/23, therecovery following the Covid-19 pandemic and wider economic
uncertainties require stringent management to deliver the BBC's
purposes within the funding available. Consequently, we conducted
additional financial stress testing and sensitivity analysis, considering
income at risk as well as our response to the recent Licence Fee
settlement. The Government has recently released a white paper
looking at the Charter renewal in 2027/28, which is being considered,but is beyond the period of this review.
Sensitivity analysis has been undertaken in relation to cash flow tomodel the potential effects should principal risks actually occur,
individually or in combination. The peak borrowing requirement wascalculated by modelling a combination of severe but plausible risks,
however, with the inclusion of mitigations, the cash flows remained
within the borrowing limit throughout the three-year period.
Taking account of the BBC Group’s current cash position, principal
risks and the aforementioned sensitivity analysis, the Board has areasonable expectation that the Corporation will be able to continue
in operation and meet its liabilities as they fall due over the threeyear period of the assessment.

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Governance Report127GovernanceCommercial Holdings Board report
It was a pleasure to be able to chair the Commercial Holdings
Board this year, as the BBC continued to move through thecurrent exciting transition to a world in which global reach andcommercial growth will be more critical than ever. The DirectorGeneral has been clear that the need to support the licence feewith greater commercial revenue is more important now thanever before and it has been the Board’s role to look closely at
the ambitious plans for transformation being developed by theBBC’s commercial arm.
The Board met eight times during the year, and we also conductedbusiness offline as necessary. During the course of the year
Dharmash Mistry stepped down from his position as a non-executive
director, having spent many years acting as a critical friend andsupporter of the BBC, in many different ways. We were delighted
that, during the year, Tom Fussell was confirmed in his role as CEO of
BBC Studios, and we also welcomed the appointment of Lorraine
Burgess as CFO. In January, Damon Buffini joined the Board and we
also appointed two new non-executives, in Gunjan Bhow and Bhav
Singh, with both taking up their post in April 2022. I am alsodelighted that both Mai Fyfield and Steve Morrison are remaining on
the Board and would like to thank them both for all their support andinput in the past year.
These new appointments were part of a move that saw the end of theCommercial Holdings Board as an entity at the end of the reportingyear. The BBC has now put in place a new Commercial Board which
will oversee the growth of the BBC’s commercial arm, with expanded
non-executive expertise and oversight of the plans, performance andbalance sheet of the BBC’s commercial arm. The new Board will bechaired by Damon Buffini and I am delighted to stay on as a member,
as we continue to scrutinise and develop the plans from Tom andthe team.
In our meetings during the year we considered regular updates on
financial and business performance, as well as reviewing forecast
results and debating the budget and targets for the coming year. We
received the audit planning and completion reports from the NAO, as
the external auditor, and focused on control and governance issues in
our annual joint session with the Audit and Risk Committee. We havebeen incredibly pleased to see the level of performance against
targets that has been achieved this year, in both BBC Studios andStudioworks. In both areas we have seen high levels of revenue andrecord levels of EBITDA and returns to the BBC.

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In a production environment still recovering from Covid-19, theseresults reflect the quality and dedication of all those working for, as
well as the first-class management of, both companies. As a Board,
we congratulate all those involved in the results, with more detail on
performance set out from page 75.
We also spent significant time this year on key strategic issues andhave had a focus on reviewing and challenging the developing growthplans for BBC Studios. This included interrogating the developing
plans for the expansion of BritBox International – our successful joint
venture with ITV outside of the UK – and reviewing the business planfor the development of a global approach to our news and current
affairs output. Both of these plans will develop further in the coming
year and will provide terrific opportunity for commercial and global
growth. Similarly, we have spent time reviewing the growth andsuccess of the Studioworks business, including the expansion of theirstudio provision at Kelvin Hall in Glasgow, considering options forways in which the business can grow further over time.
During the year we monitored the transfer of teams from Global
News Limited into BBC Studios and also the proposed transfer – now
successfully completed – of Children’s in-house production. These
are important moves that bring more of the UK’s incredible creative
talents into a single organisation. We also paid close attention to the
management of BBC Studios’ creative labels – the owned andoperated creative teams responsible for driving some of thebusiness's biggest hits.
As I step down from the Chair of the Board, I’m proud to have been apart of a period of incredible growth and creative change. With a new
Board in place, under a dynamic new Chair, and with the welcome
news of the agreement we have reached in principle with DCMS toincrease the borrowing limits of the BBC’s commercial arm, this is atime of real opportunity for the BBC. I look forward to continuing tobe part of the ambition to build a truly global commercial businessof scale.
Elan Closs Stephens
Chair, Commercial Holdings Board (to 31 March 2022)
23 June 2022

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Editorial Guidelines and Standards Committee report
Trust is a core BBC value. The way audiences view the BBC’scommitment to achieving the highest editorial standards,
particularly in relation to accuracy, impartiality and fairness, is a
key barometer of trust. It is the role of the Editorial Guidelines
and Standards Committee (EGSC) to ensure the BBC strives toachieve the highest editorial standards and that it is accountablethrough its complaints process. Where an editorial breach occurs,
the EGSC ensures the BBC is as transparent as possible toaudiences and that lessons are communicated to teams.

In last year’s Annual Report, we highlighted concern with the volume
of complaints to the BBC and said that we had asked the Executive toreview the handling of complaints at stage 1 of the complaints
process. The EGSC agreed to a number of proposed changes in theway the BBC responds to complaints at stage 1 and this has helped
operational handling of complaints without compromising thequality of responses. The BBC received 433,572 complaints at stage
1 in 2021/22, a decrease of 28,683 on last year but still considerably
more than the long-term annual average.

Much of the Committee’s work this year has involved dealing withthe aftermath of the publication of Lord Dyson’s report on the 1995
Panorama interview with Diana, Princess of Wales. Three nonexecutive directors from the EGSC (Sir Nicholas Serota, Ian
Hargreaves and Sir Robbie Gibb) were asked by the BBC Board toreview the BBC’s current editorial practices to ensure that the issues
raised by Lord Dyson could not be repeated today. The review was
led by Sir Nicholas Serota.

The KPIs set by Ofcom for answering complaints at stage 1 and 2 ofthe ‘BBC First’ complaints process were met (stage 3 is an appeal to
Ofcom). 95% of complaints at stage 1 were handled within ten
working days against a target of 93%. 87% of complaints at stage 2
were concluded within 20 working days for standard stage 2
complaints and 35 working days for complex stage 2 complaints
against a target of 80%.

The Serota Review was published in October 2021 and its
recommendations were accepted in full by the BBC Board. The
Executive’s response was published in conjunction with animpartiality action plan. The EGSC is overseeing the implementationof both on behalf of the BBC Board. The Committee has met monthly
since the publication of the review to receive updates from the
Executive on progress. Considerable progress has been made andmost of the recommendations have been completed or are nearcompletion. We will continue to monitor progress.
Maintaining the highest editorial standards is critical to thereputation of the BBC. The EGSC’s work seeks to ensure the BBC
maintains the trust of its audiences and that its editorial practices
continue to be gold standard.
Due accuracy and due impartiality come under particular scrutiny
during an election period. May 2021 and May 2022 saw complex
elections taking place in the UK, including the Northern Ireland
Assembly elections. Whilst the May 2022 elections are outside ofthis reporting period, the approval of the Election Guidelines todetermine how the BBC approached these elections, along withapproval of the criteria for allocating party election broadcasts, dofall within this reporting period. The EGSC ensured that the Election
Guidelines reflected the BBC’s commitment to due accuracy and due
impartiality, that all legal and regulatory requirements were fulfilled,
and that the guidelines reflected political circumstances in each of
the devolved nations. The committee also ensured that the criteria
for the allocation of party election broadcasts were fair and fullycompliant with legal and regulatory requirements. We are confident
these guidelines are robust and that they withstand scrutiny andcomplaints from political parties.
In the May 2021 elections, the Alba party and Reform UK’s
complaints were not upheld by Ofcom on appeal: ofcom.org.uk/__
data/assets/pdf_file/0023/218147/decision-election-bbc-albaparty-coverage.pdf and ofcom.org.uk/__data/assets/pdf_
file/0025/218473/decision-election-reform-uk-impartiality.pdf.

Ofcom is currently undertaking a review of the BBC, including
compliance with the Broadcasting Code and complaints handling.
The EGSC will engage with Ofcom to ascertain if amendments are
required to the ‘BBC First’ system of handling complaints.
In the financial year 2021/22, Ofcom found the BBC in breach of the
Broadcasting Code on one occasion. This related to an inaccurate
report regarding Alex Salmond on the BBC News at Six on
26 February 2021. Ofcom found the BBC in breach of Rule 5.1 (News,in whatever form, must be reported with due accuracy and presented
with due impartiality) and 5.2 (Significant mistakes in news should
normally be acknowledged and corrected on air quickly … Corrections
should be appropriately scheduled). Although the BBC acknowledged
the mistake at the time on its Corrections and Clarifications website(bbc.co.uk/helpandfeedback/corrections clarifications/archive 2021/)
and Ms Smith had tweeted on the day clarifying what Alex Salmondhad said, Ofcom ruled that given the significance of the mistake, andthe proximity of the report to the election period in Scotland, theBBC should have issued an on-air correction. Its consequent
recommendations will be implemented.
As required by Ofcom, the BBC continues to publish fortnightly
details of programme complaints which number over 100 and fallwithin the remit of the Ofcom Broadcasting Code. These are
published at bbc.co.uk/contact/complaint-service-reports andinclude fully reasoned versions of the Executive Complaints Unit’s(ECU) upheld and resolved findings. The criteria for publishing some
not upheld findings are currently being reviewed by Ofcom.
Editorial complaints and lessons learned
The vast majority of BBC content complied with the standards set
by the BBC’s Editorial Guidelines. However, the following serious
editorial breaches were identified by the Executive and reported to
the Committee, together with action taken:
BBC Newshour – breach of fairness to contributors and consent
guidelines. A hoaxer, claiming to be US Senator Cory Booker, wasinterviewed live on-air about US-Saudi relations in light of the US
government report on the murder of Jamal Khashoggi.

A core function of the Committee is to oversee the BBC’s complaints
process and to ensure adherence to the BBC’s Editorial Guidelines
and Ofcom’s Broadcasting Code. Transparency and accountability
through the complaints process is important to audience trust andthe reputation of the BBC. The Serota Review identified a number of
amendments to the complaints framework to improve transparency
and audiences’ understanding of how the complaints process works.
These have been discussed with Ofcom and are in the process of
being implemented.

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Governance Report129Governance
Editorial Guidelines and Standards Committee report continued
During the interview, the team realised that something was not quite
right. Senator Booker’s office was contacted after the programmeand his Director of Communications confirmed that he had not
given the interview. The item was removed from BBC Sounds, anapology was published on the Newshour page and an on-air apology
was given.
Further action taken: This was a deliberate hoax. The Newshour team
was briefed on how the error occurred and reminded about steps
which need to be taken to verify the identity of guests and adherence
to section 6.3.12 of the Editorial Guidelines.
BBC Good Food magazine – breach of conflict of interest guidelines.
A freelance food writer had a commercial relationship with acompany mentioned in a published recipe.
Although references to specific brands or retailers are permitted
where there is strong editorial justification, they are not allowed
where there is a conflict of interest.
Further action taken: BBC Good Food magazine is published by
Immediate Media under licence from BBC Studios. The editorial teamfrom Immediate Media was reminded of the Editorial Guidelines andgiven specific training in the BBC’s conflict of interest policy. They
were also required to undertake further online training about BBC
editorial and advertising standards. It was agreed that in future, allreferences to specific brands should be escalated to the Editor-inChief of the magazine for approval.
In addition to these breaches, the BBC’s Executive Complaints Unit
found a total of 41 breaches in editorial standards in this reporting
period. As with the serious editorial breaches, these editorial
breaches are reported to the committee together with action taken.
This is my last year as Chair of the EGSC. It has been a pleasure tolead this Committee for the past four years. I would like to thank theCommittee members (Sir Nicholas Serota, Baroness Tanni GreyThompson, Sir Robbie Gibb, Tim Davie, Fran Unsworth) and David
Jordan as principal adviser to the Committee for their hard work inoverseeing editorial standards. We have sadly said goodbye to Tanni
and Fran this year but we look forward to welcoming Deborah
Turness as CEO News and Current Affairs shortly. I leave the chairof the Committee in the very capable hands of Sir Nicholas Serota.
Ian Hargreaves
Chair of the Editorial Guidelines and Standards Committee
23 June 2022

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Nations Committee reports
The four Nations Committees support the Board in reviewing and monitoring the output and performance of the BBC across the UK.
This section provides a report from the Chair on the work of each Committee during the year.
Wales
This year has been a year of huge change and progress for the BBC
in Wales. I have been proud to chair the Board’s Wales Committee
during this period and to have the chance to see first hand the hard
work that has been done by teams all over the nation to keep
production and services on-air and informing audiences during
the pandemic.
It has also been a privilege this year to see BBC Wales’ newheadquarters in Cardiff Central Square come to life with the building
now operating at full capacity, hosting the 6 and 10 o’clock news on
occasion. I and my Board colleagues had the chance to spend sometime in the building recently for one of our meetings. It was a great
experience for all of us to get to see the quality of the facilities on offer
there and to recognise the ambition of the Wales Executive Team.
As a Committee we met three times during the year and took regular
updates on audience and financial performance in the nation. We
heard regularly from the new Director, BBC Cymru Wales – Rhuanedd
Richards – on her priorities, on key issues and on the implementationof the value for all strategy in Wales. We also looked specifically at
the performance of BBC Wales and took time to discuss the ways inwhich the important Across the UK plans will have an impact in thenation. I was joined on the Committee by Rhuanedd, Ian Hargreaves,
Rhodri Talfan Davies, Rhys Evans and Non Tudur Williams. I would liketo thank them all for their input and insight throughout the year.
Looking at performance more broadly, the BBC provided aninvaluable service to the national life of Wales during thisunprecedented and challenging pandemic period. Its news
programming and content kept audiences aware of a continuously
evolving situation with information about the public healthemergency and its multiple effects. The Senedd election of May 2021
was fought in the shadow of Covid-19 – an event which brought its
own logistical and informational challenges. There were significant
audiences for BBC Wales news programmes on all platforms but
online audiences, in particular, turned to the BBC’s services for thelatest impartial news and analysis in large numbers. We reviewed
these results as a committee and were impressed by what wasoffered and achieved.
The pandemic also disrupted programme supply in Wales whilst
quickening audiences’ expectations for video content portraying thenation on BBC iPlayer. Building on strong foundations, programmemakers in Wales rose to the challenge of providing engaging anddistinctive drama, comedy and factual content. From dramas such as
The Pact to Hidden, as well as comedies such as The Tuckers, the BBC
provided a platform to the nation’s storytellers. It was heartening to
see the high-quality of these programmes reflected in the strong
iPlayer performance figures from Wales.
More detailed information on the BBC’s performance in Wales canbe found at pages 38 and 177.
Looking ahead, as the Corporation celebrates its centenary year,
the role of the BBC in the national life of Wales is arguably more
important than ever. It is clear that the enduring effects of thepandemic on the nation’s cultural and social life are profound.
Audiences and the wider creative sector will rightly turn to the BBC
for inspiration and leadership across the whole country. But the BBC
in Wales finds itself well-placed. With a new Director and a new HQ
it will now be able to act as a home to BBC Wales, to new colleagues
under the Across the UK plans, and to the wider creative sector.

Scotland
It is a real privilege to have been appointed as the BBC’s Board
member for Scotland, and to have taken on the Chair of the Scotland
Committee. I took on the role at the start of 2022 and want to pay
tribute to my predecessor, Steve Morrison, who chaired theCommittee since 2017 and has always been a passionate supporterand advocate for both the BBC in Scotland and Scotland on the BBC.
I look forward to carrying on his work.
The Committee met four times during the year and also held online
audience engagement sessions with Scottish users of the BBC. In our
meetings we have had a regular focus on market issues, performancewith audiences and have taken a report from the Director on key
issues for BBC Scotland. I was pleased to hear how teams at BBC
Scotland continued to juggle multiple challenges to serve audienceswith relevant and outstanding content. News teams provided
up-to-date and impartial coverage of another year of Scottish healthinformation and analysis; the Scottish Parliamentary elections andformation of a coalition government were at the heart of our political
output; and teams across the organisation produced a wealth ofmaterial around the global climate conference, COP26, when it took
place in Glasgow.
The Committee had a good discussion this year on the Scottish
drama slate, both in the nation and on network. We’ve seen BBC
spend in Scotland recover considerably too this year, after the 2020
impact of the pandemic shut-down in production, not least with thetransmission of key Scottish dramas such as Guilt, Vigil and Shetland.
We discussed the revival of Scotland’s music and culture sector,
brought to audiences with coverage of the re-emerging Edinburgh
summer festivals, and of Celtic Connections and TRNSMT in
Glasgow. And I was pleased to be on hand to see the BBC’s Scottish
Symphony Orchestra recently unveil its plans for a full 2022-23
season with concerts planned from Aberdeen to Ayr, a first fullseason in three years.
More detailed information on the BBC’s performance in Scotland
can be found at pages 39 and 176.
During the year, members of the Committee included: mypredecessor, Steve Morrison; the BBC Chairman, Richard Sharp;
Steve Carson, Director, BBC Scotland; Rhodri Talfan Davies, Director,
Nations, and Ian Small. Ian stood down this year, after many year’s
outstanding service as BBC Scotland’s Head of Public Policy andCorporate Affairs, and has been replaced by Luke McCullough.
Over the coming year, I’m looking forward to having the chance tostart getting out and about around the nation, meeting with teams,
audiences and stakeholders to hear about the issues affecting themand the ways in which the BBC can best serve them. I’m also looking
forward to continuing to raise the profile of Scottish matters at the
BBC Board and continuing the excellent work being done to ensure
the licence fee is used to support and enrich audiences acrossScotland.
Muriel Gray
Chair, Scotland Committee
23 June 2022

Elan Closs Stephens
Chair, Wales Committee
23 June 2022

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Governance Report131Governance
Nations Committee reports continued
Northern Ireland
I have been a member of the Northern Ireland Committee since 2017and have now been appointed as its Chair on an interim basis, as theBoard does not yet have a full-time member representing Northern
Ireland. I took on this new role at the start of 2022 following Fran
Unsworth’s departure from the BBC.
As Board members, we fully understand the importance of theNorthern Ireland non-executive role and the concerns that many
people have expressed about the delay in appointing someone to it.
We have been working closely with DCMS on this matter and remain
hopeful that the latest recruitment exercise will reach a successful
conclusion, with all of the benefits that this will provide for the
Board’s work and its relationship with BBC audiences inNorthern Ireland.
Covid-19 restrictions meant that Committee meetings took placevirtually throughout the year. We were joined on the Committee by
Rhodri Talfan Davies, Peter Johnston, Adam Smyth (following his
appointment as interim Director, BBC Northern Ireland in January2022) and Mark Adair. I’m grateful to colleagues for theircontribution to the Committee’s work and our discussions about the
BBC and its services in Northern Ireland and also to the staff who
prepared financial and audience data for us to consider.
We received detailed updates on BBC Northern Ireland’s
performance and key issues affecting its work and development.
And we met a focus group of audience members at our March 2022
meeting, allowing us to hear their views about the BBC’s news
services and the stories that matter most to them.
The Committee noted the continuing strong performance of BBC
Radio Ulster/Foyle and the contribution that local television
programmes make to the appeal of BBC television services inNorthern Ireland. It was encouraged by the impact and popularity of
BBC network programmes from the region and their contribution to
cultural portrayal and the wider creative economy. Much of thisactivity has benefitted from the BBC’s innovative partnership with
Northern Ireland Screen and the Committee welcomed the renewal
and extension of this arrangement for a further period in June 2021.
The Committee took a close interest in the planned refurbishment of
Broadcasting House, Belfast and the impact of reductions in its scale
and funding. It also reflected on how Covid-19 had affected ways ofworking in the BBC, local audience needs and diversity, andopportunities for the future, including as part of the BBC’s Across the
UK commitments. And it discussed coverage linked to the centenaryof Northern Ireland’s establishment and the ambitious broadcast
plans that were being put in place for the Assembly election.

England
I took on the Chair of the Board’s England Committee in May 2021
and a major undertaking for us this year was the implementation of
Nicholas Serota’s Review of BBC Editorial Processes, Governanceand Culture, especially how this would impact on the work of BBC
England. Committee members were keen to explore how to fully
embed our impartiality and editorial values across BBC Englandoutput on all platforms.
During the year we also received progress updates on hybrid working
and the return to work, as well as the delivery of BBC England’s
Transformation planned savings and restructures.
This year saw the launch of a number of initiatives designed to
improve BBC England’s services to audiences, particularly thosecurrently underserved. These included the announcement of HD
upgrades for regional TV programming on BBC Network, theupgrade of regional TV studio galleries, the provision of new mobile
technology for filming, and the reorganisation of our digital teams.
The BBC England local radio Make A Difference campaign built on its
success, demonstrating its importance to our local audiences andcommunities with plans already underway to have a Make a
Difference awards event in every local radio station area in theautumn.
Trusted and impartial local news and information remained criticalto audiences, with the surge of the Omicron variant, bad weather
storms and the invasion of Ukraine, at the top of our news agenda.
We regularly reviewed audience data during the year and werepleased to see that the 1830 regional news programmes retain theirposition as the most watched news programmes in the country.
RAJAR figures for local radio have returned using a new
methodology, showing listening to local radio in England is stable
at 6.7 million listeners. The BBC England website performed well,attaining its highest weekly reach at 20.8 million browsers, reportingon the shootings in Plymouth. This year also saw the launch of BBC
England’s new series We Are England. This current affairs series
explores the issues people care about, and reflects the changing
faces and opinions of the Nation.

The next 12 months will be an important time for the BBC and its
future. As such I hope that my time in the Chair is short and that wewill soon have a Board member for Northern Ireland, helping us toensure that the BBC’s plans have local audience needs at their core.

The Committee continued to work remotely during the pandemic.
I took on the Chair from my predecessor Ashley Steel when I joined
the Board. After the departure of Tom Ilube in June 2021, nonexecutive Board Member Baroness Tanni Grey-Thompson joined theCommittee on a temporary basis until the completion of her term in
December 2021. Executive members of the Committee during theyear were Rhodri Talfan Davies, Director, Nations and Adrian Mills,
Business and Operations Director, BBC England. Jason Horton, Headof South, South East and East was appointed Acting Director, BBC
England, while Helen Thomas was on long term sick leave, and alsojoined the Committee. I would like to thank all my colleagues for theirwork on the Committee during the last year.

More detailed information on the BBC’s performance in Northern
Ireland can be found at pages 40 and 178 of this Annual Report.

More detailed information on the BBC’s performance in England canbe found at pages 41 and 179.

Elan Closs StephensInterim Chair, Northern Ireland Committee
23 June 2022

Robbie Gibb
Chair, England Committee
23 June 2022

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Fair Trading Committee report
I was pleased to be appointed by the Board to take on the Chair of
the Fair Trading Committee, at the start of the 2022/23 financial
year. Having sat on the Committee since its inception, I am keenly
aware of the clear and important role that it plays in ensuring thatthe management of the BBC’s commercial operations is conducted
fully in line with the requirements set in place for trading andseparation by our regulator.
As a group, we have a number of well-established mechanisms andprocesses in place to help us to do this. The Committee’s businessduring the year has included:— taking a quarterly management report from the Executive,
detailing specific engagement with upcoming and ongoing
trading and separation issues across the BBC;— consideration of the BBC’s processes for ensuring compliancewith Ofcom’s rules and reviewing compliance with these;

During 2021/22 the Committee was Chaired first by Tom Ilube andthen, after Tom left the Board in June, by Robbie Gibb who kindly
took on the role whilst wider non-executive appointments andCommittee memberships were being finalised. Steve Morrison also
sat on the Committee until his departure from the Board in Januaryof 2022. I would like to thank Tom, Steve and Robbie for all their help
and support for the work of the Committee. The Committee was also
well supported by the expertise of teams in Policy, Legal, Secretariat
and the commercial parts of the BBC.
As we begin a new year, I have been joined on the Committee by
Muriel Gray and the Board continues to review plans for future
membership. I look forward to undertaking my role as Chair of thisimportant Committee, and ensuring that the BBC’s processes for
trading and separation continue to be robust, well-observed andunderstood throughout the industry.
Ian Hargreaves
Chair of the Fair Trading Committee
23 June 2022

— meeting with Ofcom on an informal basis to discuss particularissues of note;— providing advice to the Board on issues within our remit;— reviewing and monitoring targets for Fair Trading training acrossthe BBC; and— approval of all relevant publications and reports that the
BBC must provide specifically to meet Ofcom’s trading andseparation rules.
Through the year, the Committee also looked in detail at issues
arising from the transfer of two areas of business from the public
service BBC to BBC Studios. We reviewed and approved the changes
to transfer pricing arrangements required by the move of BBC Global
News Limited into BBC Studios. And we also reviewed the plans forthe transfer of Children’s in-house production to Studios, and theprotections being put in place to ensure appropriate separation andsharing of information under the new structure. Along with this, wetake a regular risk and assurance report to the Committee and havecontinued to closely monitor key controls, such as the provision of
Fair Trading training, where compliance rates remain on target.
The Committee is satisfied that the systems and processes for
managing trading and separation continue to work well. That view
is borne out by the work undertaken by Deloitte for their annual,
independent Fair Trading assurance, with their report included below.
We also noted that there were no formal fair trading complaints
received in the year. Additionally Ofcom recently completed its
review of BBC Studios. We welcome their central finding that the
BBC is compliant with its trading and separation obligations and lookforward to working with them regarding their recommendations.

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Governance Report133GovernanceFair Trading Committee report continued
Fair Trading report
What do we mean by Fair Trading?
Fair Trading is the way that we describe our processes and practices,
both within the BBC and in dealing with third parties, to ensure that
our commercial and public services remain appropriately separate
and trade with each other on a market-basis. This means that theparts of the BBC which are funded by the licence fee are not able togive a competitive advantage to the BBC’s commercial operations or
to any other independent production company with which we deal.
These rules are overseen by Ofcom – who set the rules for trading
and separation as part of their overall BBC framework – and by otherparties such as the NAO, who seek to ensure that any use of licencefee funds is regular and in line with our requirement.
What does the Fair Trading Committee do?
The Fair Trading Committee (FTC) was established by the Board as ameans to monitor and assure the appropriate separation between
the BBC’s public service and commercial activities, in line with theframework for commercial activities set by Ofcom. The Committee
was put in place voluntarily by the Board, in recognition of theimportance the BBC places on transparency and commercial
efficiency in the operation of its commercial subsidiaries.
The key function of the FTC is to oversee the BBC’s compliance with
our regulatory obligations for trading and separation between the
public service and the commercial subsidiaries. The core
responsibilities of the FTC include:— considering reports on the extent to which the activities of
the BBC are consistent with Ofcom’s trading and separation
requirements and engaging informally with the regulator on
an annual basis;— keeping under review the BBC’s compliance with Ofcom’s trading
and separation regulatory requirements;— commissioning and receiving the annual independent assuranceof compliance controls;— considering and approving for publication the BBC’s statementof operational separation, annual reporting and group trading
manual; and— ensuring that the BBC’s transfer pricing methodologies arereviewed regularly.
The trading and separation rules were last updated by Ofcom in April
2021 and are part of Ofcom’s framework for the BBC’s commercial
activities, which regulates the BBC’s interaction with the market boththrough its Public Service activities and those of its commercial
subsidiaries.
The framework requires the BBC to ensure that:— all commercial activities are undertaken by commercial subsidiaries;— any subsidiaries must have operational separation from the public
service BBC;To ensure that these rules are complied with, the FTC oversees
and assures the BBC’s processes and procedures to ensure thatawareness and understanding of the framework is high. To do this,the BBC’s Group Policy and Regulation team manages a targetedtraining programme for staff likely to encounter Fair Trading issues.
The past year has seen continued strong performance in Fair Trading
training compliance, since the mapping of mandatory training
requirements to roles within the BBC’s Career Path Framework.
Subsequently, compliance rates have increased steadily, up to 99%
for Advanced level training and 96% for Awareness level training as
at Q4 21/22. This is thanks to a good response to ongoing monitoring
and communications throughout the year, including senior
engagement and reminders, reports and other communications sent
to team leaders, COOs and divisional directors by the BBC Academy.
The Committee is briefed on relevant regulatory and Fair Trading
complaints received and handled by the BBC. Details of these arereported elsewhere in the Annual Report (see page 129), though theCommittee noted that no specific Fair Trading complaints werereceived in the year.
How the Committee works
During 2021/22, Tom Ilube chaired the FTC until he stepped downfrom the Board in June 2021. Robbie Gibb took on the Chair for the
rest of the year, whilst new Board and Committee membership
structures were finalised. Ian Hargreaves sat on the Committee
throughout the year and assumed the Chair from April 2022. Steve
Morrison sat on the Committee until he departed the Board inJanuary 2022. Shirley Garrood stepped down from the Committee
at the end of 2020/21, due to a conflict with her role as Chair of theDeloitte Audit Governance Board. Muriel Gray was appointed as amember of the Committee in April 2022.
The FTC’s meetings were attended, during the year, by the Directorof Policy and the Controller, Regulation, as well as the Group Chief
Operating Officer, Head of Commercial Legal and other advisers asnecessary. Three Committee meetings were held during the year,with papers also approved offline where necessary (see Committee
attendance table on page 104.
To support the framework, and to assure the BBC’s approach toregularity and the use of public funds, the FTC continues tovoluntarily commission annual assurance by an assurance provider
in accordance with ISAE 3000 (Revised). The Fair Trading assurance
provider’s report is on the following page.
The Framework Agreement sets four criteria for the carrying outof the BBC’s commercial activities: fit with the Mission and Public
Purposes; commercial efficiency; not jeopardising the reputationof the BBC or the value of its brand; and not distorting the market.
Having received reports from relevant senior management, andhaving considered the findings of the Fair Trading Assurance, the Fair
Trading Committee is satisfied that all commercial services have met
the above criteria for the period 1 April 2021 to 31 March 2022.

— that it provides goods and services to commercial subsidiaries onarm’s length commercial terms;— that subsidiaries achieve a commercial rate of return; and— that the BBC ensures appropriate transparency, monitoring andreporting on the activities of the subsidiaries.

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Independent Fair Trading Assurance report to the BBC
for the year ended 31 March 2022
Opinion on Fair Trading arrangements
We have assessed, in our role as the BBC’s Fair Trading reasonableassurance provider, the system of internal controls established within
the BBC to comply with the Fair Trading aspects of Ofcom’s Trading
and Separation requirements for the year ended 31 March 2022(‘the Fair Trading Arrangements’).
In our opinion the BBC has established and applied a system ofinternal controls that provide reasonable assurance that it hascomplied with the requirements of the Fair Trading Arrangements
for the year ended 31 March 2022.
Responsibilities of the BBC Board
The Board is charged by Ofcom with establishing and operating asystem of internal controls designed to ensure compliance with theBBC’s Fair Trading Arrangements for the year ended 31 March 2022,
including identifying and assessing risks that could threaten Fair
Trading and designing and implementing responses to such risks.
Our independence and quality control
We have complied with the independence and other ethicalrequirements of the ICAEW Code of Ethics, which is founded on
fundamental principles of integrity, objectivity, professional
competence and due care, confidentiality and professional behaviour.

Inherent limitations
Every internal control system is subject to limitations, andaccordingly the internal controls established by the BBC may notprevent or detect all instances of non-compliance with the Fair
Trading Arrangements. Further, because fair trading issues require
judgements which ultimately might be tested in a court of law,competition authority or elsewhere, there is always a risk ofchallenge even where the system of internal controls has been
followed and decisions have been taken with the greatest care.
Use of our report
This report has been made solely to the BBC in accordance with our
instructions which were agreed with the Fair Trading Committee on
behalf of the BBC. Our work has been undertaken so that we mightstate to the Fair Trading Committee those matters we are required tostate to them in an independent assurance report and for no otherpurpose. To the fullest extent permitted by law, we do not accept orassume responsibility to anyone other than the BBC for our work, forthis report, or for the opinions we have formed.
Deloitte LLP
London, UK
23 June 2022

Our responsibilities
Our responsibility is to express an opinion on the internal controls
established by the BBC to ensure compliance with the Fair Trading
Arrangements, based on our assurance work. We performed areasonable assurance engagement in accordance with International
Standard on Assurance Engagements (ISAE) 3000 (Revised),
Assurance Engagements other than Audits or Reviews of Historical
Financial Information.
We are required to plan and perform our procedures in order toobtain reasonable assurance as to whether the BBC has establishedand applied a system of internal controls that provide reasonableassurance that it has complied with the requirements of the Fair
Trading Arrangements for the year ended 31 March 2022. We
conducted a risk assessment to identify those aspects of the BBC’s
Trading and Separation control regime that were most likely to resultin non-compliance with the Fair Trading Arrangements, and focusedour detailed testing on those areas. Individual cases were selectedfrom the BBC’s fair trading advice correspondence for review and foreach we examined written records and interviewed relevant parties.
Our work included examination of transfer pricing and separation
arrangements, use of and payment for the BBC brand, and theapplication of the Royal Charter requirement that the BBC’scommercial activities do not, as a result of their relationship with the
UK Public Services, non-service activities or trading activities, distort
the market or gain an unfair competitive advantage.

Return to contents

Governance Report135GovernanceStatement of Board responsibilities in respect of theAnnual Report and Accounts
The Charter requires the BBC to prepare an audited annual reportand statement of accounts.
The Board has accepted its responsibility for the preparation of astrategic report, statements of compliance with applicable codes andregulations (including the Board remuneration report) and thestatement of accounts which are intended to give a true and fair viewof the state of affairs of the BBC and its subsidiaries (the ‘Group’) andof the income and expenditure for that period. The Board has
prepared the accounts in accordance with International Financial
Reporting Standards (IFRS) as adopted by the EU. The Board must
not approve the statement of accounts (or ‘financial statements’)unless it is satisfied that they give a true and fair view of the assets,
liabilities and financial position of the Group and of the surplus ordeficit for that period.
In preparing the financial statements, the Board has:— selected suitable accounting policies and applied themconsistently;— made judgements and estimates that are reasonable and prudent;— stated whether they have been prepared in accordance with IFRS
as adopted by the EU; and— prepared the financial statements on the going concern basis as
they believe that the BBC will continue in business.
The Board is responsible for keeping proper accounting records thatare sufficient to show and explain the BBC’s transactions anddisclose with reasonable accuracy at any time the financial positionof the Group and enable them to ensure that the financial
statements and the Board remuneration report comply with theCharter. It also has a general responsibility for taking such steps as
are reasonably open to it to safeguard the assets of the BBC and toprevent and detect fraud and other irregularities.
The responsibilities of the Board for ensuring that the BBC exercises
rigorous stewardship of public money, including responsibility for the
propriety and regularity of management of the BBC’s resources, are
set out in article 16 of the Charter.

The Board members who held office at the date of approval of theAnnual Report and Accounts, whose names and functions are listed
in the Governance section of the Annual Report and Accounts,
confirm that, to the best of each of their knowledge
and belief:— the financial statements, prepared in accordance with IFRS
as adopted by the EU, give a true and fair view of the assets,
liabilities, financial position and deficit of the Group;— the Annual Report includes a fair review of the development andperformance of the business and the position of the Group,
together with a description of the principal risks and uncertainties
that it faces; and— the Annual Report, taken as a whole, is fair, balanced andunderstandable and provides the information necessary forlicence fee payers to assess the Group’s performance, businessmodel and strategy.
Statement of disclosure of information to auditors
The Board members who held office at the date of approval of theAnnual Report and Accounts confirm that, so far as they are eachaware, there is no relevant audit information of which the BBC’s
auditors are unaware; and each Board member has taken all thesteps that they ought to have taken as a Board member to makethemselves aware of any relevant audit information and to establishthat the BBC’s auditors are aware of that information.
Going concern
The directors have prepared cash flow forecasts for a period
in excess of a year from the date of approval of these financial
statements, and have reviewed these forecasts, together withthe sensitivities and mitigating factors in the context ofavailable funds.
The directors are satisfied that the BBC is well placed to manage therisks and has adequate resources to continue in operation for at least
the next 12 months. As a result, the going concern basis has been
adopted in the preparation of the financial statements.
This statement was approved by the Board.

The Board is responsible for the maintenance and integrity of theBBC’s website. Legislation in the UK governing the preparation anddissemination of financial statements may differ from legislation inother jurisdictions.
Richard Sharp
Chairman
23 June 2022

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PERFORMANCEAGAINST PUBLIC
COMMITMENTS
This section sets out our progress towards various public
commitments. These commitments come from the Charter,
the Agreement, our Licence obligations and commitments
we have made to deliver services for our audiences.

BBC One’s The Responder
Return to contents

Governance Report137Performance against public commitments
Regulatory compliance
The table below sets out the BBC’s compliance with the regulatory conditions in Ofcom’s Operating Licence. Compliance is measured acrossthe 2021/22 financial year unless otherwise stated. The requirements below are arranged by public purpose.
The BBC met nearly all of its 151 Operating Licence conditions, with four exceptions, shown below.
We have engaged with Ofcom through the pandemic to make them aware of the impact of Covid-19 on our operations and our ability to deliver
our Operating Licence obligations. We have provided evidence to Ofcom that licence breaches are a result of Covid-19 and that we have taken
reasonable endeavours to continue to deliver the mission and public purposes.
Operating Licence condition

Quota

ActualDifference

2.39.4

New sessions live or recorded in previous three months (excl. repeats)

175 sessions

104 sessions-71 sessions

2.8.1

Daytime weekday news on Radio 1

1 hour/day

Three minutes under thecondition on two days –12 April 2021 and 23 April 2021

2.9.1

Daytime weekday news on Radio 1Stra

1 hour/day

Three minutes under thecondition on two days –12 April 2021 and 20 April 2021

2.67.6

Hours of non-news programming of national or regional interest in peak on
BBC One and BBC Two

557 hours

446 hours-111 hours

For Condition 2.39.4 and 2.67.6, the BBC was unable to meet the quota due to the continued impact of Covid-19. As in 2020/21, the need toensure our work is Covid-19 secure has significantly impacted on our ability to offer dedicated space for performers at the BBC. The need forsocial distancing created restrictions on how our spaces are used and how frequently. The pandemic also had a continued impact on the
production and availability of new programmes, event coverage and at times staff availability; this inevitably led to impacts on our ability todeliver against some of our regulatory quotas.
For conditions 2.8.1 and 2.9.1, the quota was not met on 12 April 2021 due to a schedule change as a result of the death of Prince Philip. Not
meeting the quotas on 20 April 2021 and 23 April 2021 was the result of an error; we have informed Ofcom of this error and we do not expect
Ofcom to take enforcement action.

138

Annual Report and Accounts 21/22

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Purpose One: To provide impartial news and information to help people understand and engage with the world around them
Note

Quota

Achieved

BBC OneNews throughout the day
Hours of news

1

Hours of current affairs in peak

1

1,520
(280 in peak)
45

1,697
(303 in peak)46

BBC One and BBC Two
Hours of current affairs

1,2

450
(106 in peak)

514(117 in peak)

BBC ThreeNews every weekday intended to appeal to 16-34 year-olds

3









CBBC
News throughout the day
Hours of news

35

44

BBC News
More international news than other main continuous news channels in the UK
More local/regional news than other main continuous news channels in the UK







4
4

1

1 (see note 3)

4

1

1 (see note 3)

17 (3 in peak)

17 (3 in peak)







Radio 1
Hours of news in daytime each weekday
Two extended news bulletins (one in peak) each weekday
Regular bulletins in daytime at weekends
Radio 1Xtra
Hours of news in daytime each weekday
Two extended news bulletins each weekday
Regular bulletins in daytime at weekends
Radio 2
Weekly hours of news and current affairs
Regular bulletinsRadio 4
Hours of news and current affairs
Daily reports of Parliamentary proceedings when Parliament is sitting








Radio 3
News throughout the day



2,750





3,249





75

76

BBC 6 Music
Weekly hours of news

6

6

BBC Asian Network
Weekly hours of news and current affairs

24

24







BBC Radio 5 live
% of output that is news and current affairs
Extensive coverage of local and general elections, elections to the devolved chambers,
and regular coverage of European and international politics

BBC Online
Adequate links to material provided by third parties
Daily news and information for children. Provided through content in a range of different
formats, including text-based articles, videos and interactive pieces, which cover a broad
range of subjects and should include in-depth news and analysis.





Notes
1 Measured across the 2021 calendar year
2 Measured across the two services
3 The BBC Three Channel launched in February 2022
4 Radio 1 and Radio 1xtra fulfilled the condition for all but two days of the year, first due to a schedule change and second when it was three minutes under the condition for an hour due
to a scheduling error, as noted above

Return to contents

Governance Report139Performance against public commitments
Regulatory compliance continued
Purpose Two: To support learning for people of all ages
Note

Quota

Achieved

45

54 (16 in peak)

115

141

BBC Two
Hours of arts and music, including some in peak

175

332 (137 inpeak)

BBC FourNew hours of arts and music programmes

175

189

CBeebies
A range of content which supports pre-school children in their learning





CBBC
Hours of drama
Hours of factual programmes

1,000
675

1,252
1,175

BBC ALBA
Original weekly hours for Gaelic language learners

511Radio 1
Number of new documentaries

40

41

Radio 1Xtra
Number of documentaries

40

52

100
130
170

121
136
187

45
440
25
35

52
516
39
42

Radio 4
Hours of original documentaries
Hours of original religious programming covering a broad range of faiths

375
200

418
203

BBC 6 Music
Hours of speech-based features, documentaries and essays

520

520





BBC OneHours of arts and music, including some in peak
BBC One and BBC Two
Hours of religious programmes

1Radio 2
Hours of arts programming
Hours of new documentaries
Hours of religious output covering a broad range of faiths

2Radio 3% of output that is live or specially recorded music
Number of live or specially recorded performances
Number of new musical works commissioned
Number of new documentaries on arts and cultural topics

3

BBC Online
Content which supports children and teenagers in their formal learning in all partsof the UK
Notes
1 Measured across the two services
2 Repeats are excluded

140

Annual Report and Accounts 21/22

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Purpose 3: To show the most creative, highest quality and distinctive output and services
Note

Television% of hours that are originations
BBC OneBBC One in peak
BBC Two
BBC Two in peak
BBC Three
BBC Four
BBC Four in peak
BBC News
BBC Parliament
CBBC
CBeebies
BBC ALBA
BBC Scotland

Quota

Achieved

75
90
75
90
75
75
60
90
90
72
70
75
75

85
99
89
94

4,000
2,200
350
175
100
50

4,323
2,554
384
366
120
120

1,2

3

Hours of first-run originations across daytime and peak
BBC One
BBC Two
CBBC and BBC iPlayer
CBBC
CBeebies and BBC iPlayer
CBeebies

77
74
98
98
72
74
94
97

2,4

BBC One and BBC Two
Hours of comedy programmes, some in peak

5300

305 (195
in peak)

BBC Three
Provides first-run UK originations intended to appeal to 16-34 year olds across a mixof different genres

6





45
50
60
175

60
54 (see note 5)71
104 (see note 6)

2

4

40
20
260
1,100

9



51
24 (see note 9)
260
1,236

12

20

43

Radio
Radio 1% of music in daytime from UK acts
% of new music in daytime, with significant proportion from new and emerging UK artists
Weekly hours of specialist music
Number of new sessions live or recorded within previous three months (excluding repeats)
Broader range of music than comparable providers
Number of major social action campaigns
Radio 2% of music in daytime from UK acts
% of new music in daytime, with significant proportion from new and emerging UK artists
Hours of live music
Hours of specialist music
Broader range of music than comparable providers
BBC Radio 5 live
Number of sports with live commentary

7
8
9
2,10

11







Notes
1 Originations include all BBC-commissioned programmes including repeats
2 Measured across the 2021 calendar year
3 This quota comes into force starting from calendar year 2023
4 First-run originations do not include repeats
5 Measured across the two services
6 This quota comes into force starting from calendar year 2023, however, since the relaunch of the channel in February 2022 it has been broadcasting first-run UK original content for
16-34s across a range of genres
7 33% of additions to the Radio 1 playlist during 2020 came from ‘new and emerging UK artists’
8 Radio 1 broadcasted 104 new sessions across 2021/22, 71 sessions under the condition This is due to being largely unable to record (and therefore broadcast) new live sessions from
BBC’s Maida Vale studios as a result of social distancing rules, as noted above
9 Taking into account both number of plays and size of playlist, in daytime and peak 14% of additions to the Radio 2 playlist during 2020 came from ‘new and emerging UK artists’10 The social action campaigns were Radio 1’s 24-Hour LOL-a-thon with Scot and Chris, raising in the region of half a million pounds for Comic Relief in March 2021; Radio 1’s Big Weekend
Connects, a partnership with the Job Centre to give young people around the UK the opportunity to learn more about working in creative industries in May 2021; Radio 1’s Minute of Me,
featuring listeners talking about environmental issues in November 2021; and Radio 1’s Teen Heroes, shining a spotlight on inspirational young people across the UK in November 2021
11 The complete list of sports is Men’s Football, Women’s Football, Tennis, Men’s Golf, Women’s Golf, Men’s Boxing, Women’s Boxing, UFC, Horse Racing, Men’s Cricket, Women’s Cricket,
Women’s Rugby, Men’s Rugby, Rugby League, Snooker, Athletics, Formula One, Road Cycling, Track Cycling, BMX, Swimming, Triathlon, Equestrian, Rowing, Canoeing, Diving, Hockey,
Gymnastics, Taekwondo, Skateboarding, Mountain Biking, Trampoline, Para Athletics, Para Swimming, Para Judo, Para Cycling, Para Equestrian, Curling, Short-Track Speed, Skeleton,
Snowboard X, Slalom Ski and Ski Park

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Governance Report141Performance against public commitments
Regulatory compliance continued
Purpose Four: To reflect, represent and serve the diverse communities of the United Kingdom’s nations and regions and, in doing so,
support the creative economy across the United Kingdom
Network Television
Suitable range of programmes made outside the M25 area

Note

Quota

Achieved

1





50
30
8
4
2

64
39
15
5
2

50
30
8
5
3

54
32
9
7
4

% of hours made in… at a suitable range of production centres
UK (outside the M25 area)
England (outside the M25 area)
Scotland
Wales
Northern Ireland

1% of expenditure made in… at a suitable range of production centres
UK (outside the M25 area)
England (outside the M25 area)
Scotland
Wales
Northern Ireland

1

BBC OneHours of news of national or regional interest throughout the day

1

4,300
4,589
(2,100 in peak) (2,216 in peak)

BBC One and BBC Two
Hours of programmes of national or regional interest
Suitable range of programmes of national or regional interest% of programmes made in the relevant location
Hours of non-news programming of national or regional interest in peak
Hours of non-news programming of national or regional interest adjacent to peak

1,2
1
1
1,3
1

5,909

5,966

95
557
179

99
446 (see note 5)
293

290
155

424
255

BBC One Wales
Hours of news and current affairs
Hours of non-news programmes

275
65

338
193

BBC Two Wales
Hours of non-news programmes

175

190

BBC One Wales and BBC Two Wales
Range of genres that reflects Wales’ culture

BBC One Northern Ireland
Hours of news and current affairs
Hours of non-news programmes

310
90

355
136

60

216





300

1,556

30
28

39
33













BBC One Scotland
Hours of news and current affairs
Hours of non-news programmes
Range of genres that reflects Scotland’s culture

BBC Two Northern Ireland
Hours of non-news programmes
Irish language programming and Ulster-Scots programming

BBC One Northern Ireland and BBC Two Northern Ireland
Range of genres that reflects Northern Ireland’s culture
BBC Parliament
Hours of proceedings of the Scottish Parliament, Northern Ireland Assemblyand Welsh Parliament
Network Radio% of network radio station expenditure outside the M25 area
% of Radio 3 expenditure outside the M25 area

4

BBC Online
News and information for the English regions
Coverage of sport for the English regions
News and information for Scotland
Content in Gaelic
Coverage of sport in Scotland

142

Annual Report and Accounts 21/22

Return to contents







Note

Quota

Achieved

























6, 7
6
6

60
100

64
100

6
7, 8





60
100
50

87
100
59





40
100

48
100





BBC Radio Wales% of daytime weekday output that is speech content% of peak breakfast output that is speech content
Weekly hours of news and current affairsContent and music of particular relevance to Wales

60
100
32

70
100
43

BBC Radio Cymru% of daytime weekday output that is speech content% of peak breakfast output that is speech content
Weekly hours of news and current affairsContent and music of particular relevance to Wales

60
100
23

65
100
29

BBC Radio Ulster
Weekly hours of news and current affairs

35

37

BBC Radio Foyle
Weekly hours of news and current affairs

20

22

60
100

67
100

240

259

News and information for Wales
Content in Welsh
Coverage of sport for Wales
News and information for Northern Ireland
Content in Irish and Ulster-Scots
Coverage of sport for Northern Ireland
Nations and Regions Services
BBC Scotland
Range of genres that reflects Scotland’s culture
Suitable range of programmes including Scottish news
% of its first-run originations made in Scotland
Hours of news in peak

1
1
1, 5

BBC ALBA
Live news each weekday evening, including in peak, and a longer news review atweekends
BBC Local Radio% of daytime weekday output that is speech content% of peak breakfast output that is speech content
News and information of particular relevance to the area and communities it serves
throughout the day
Non-news content of particular relevance to the area and communities it serves
Weekly hours of original, locally-made programming
BBC Radio Guernsey – Weekly hours of original, locally-made programming
BBC Radio Jersey – Weekly hours of original, locally-made programming
BBC Radio Somerset – Weekly hours of original, locally-made programming
BBC Radio Scotland% of daytime weekday output that is speech content% of peak breakfast output that is speech content
Weekly hours of news and current affairs
Several regional opt-outs each weekday, offering news, sport and information, including
evening community programmingContent and music of particular relevance to Scotland
BBC Radio nan Gàidheal% of daytime weekday output that is speech content% of peak breakfast output that is speech content
News frequently across the day, particularly in breakfast peak and afternoon peak on
weekdays, and peak on weekends
Content and music of particular relevance to Scotland

90
250



95
80
80
70









BBC Radio Ulster and BBC Radio Foyle% of daytime weekday output that is speech content% of peak breakfast output that is speech content
Content and music of particular relevance to Northern Ireland
Hours of indigenous minority language programming, including Irish andUlster-Scots output

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

98
279



118
111
113
104











Governance Report143Performance against public commitments
Regulatory compliance continued
Notes
1 Measured across the 2021 calendar year
2 Measured across the two services
3 The BBC delivered 111 hours less than the condition This is due to the impact of Covid-19 on various elements As noted above, the need for social distancing created restrictions
on how our spaces are used and how frequently, impacted the production and availability of new programmes, event coverage and at times staff availability
4 This includes contributions from Radio 1, Radio 2, Radio 3, Radio 4 and BBC Radio 5 live
5 Measured between 19 00-22 30 given the channel primarily operates from 19 00 in the evening
6 Applies to each BBC Local Radio station Each station was compliant with the licence condition
7 The figure reported is the average figure across relevant stations
8 Applies to each BBC Local Radio station, except BBC Radio Guernsey, BBC Radio Jersey and BBC Radio Somerset

Diversity
The BBC must report on how it has:
Had regard to the range of diverse communitiesof the UK

NoteAchieved

Reported1

See pages 42-43 and the Diversity
Commissioning Code of Practice (DCCOP)
reportSee pages 42-43 /DCCOP report

See pages 42-43 /DCCOP report

See pages 42-43 /DCCOP report

See pages 42-43 /DCCOP report2

See pages 42-43 /DCCOP report2

See pages 42-43 /DCCOP report2

See pages 42-43 /DCCOP report

N/A

N/A

N/A

N/A

1



See Equality Information Report (EIR)

3, 4
3, 5





See EIRSee EIRSee EIR

See pages 42-43 /DCCOP report

See DCCOP reportServed and delivered content for the range of the diverse
communities of the UK
Accurately represented the diverse communitiesof the UK
Authentically portrayed the diverse communitiesof the UK
Raised awareness of the different cultures andalternative viewpoints of the diverse communitiesof the UK
The BBC must report on audience satisfaction:
How the BBC represents, portrays and serves diverse
audiences
How the BBC reflects the whole of the UK population
on-screen and on-air
How the BBC raises awareness of different culturesand viewpoints
Steps it will take to improve audience satisfaction where
specific audience groups are dissatisfied with the BBC’s
performance in these areas
Steps it has taken and the effect of those steps toimprove audience satisfaction where specific audiencegroups were dissatisfied with the BBC’s performance inthese areas in the previous year
The BBC must report on workforce diversity:
The diversity of all staff employed in connection with the
UK Public Services including the number of staff bydifferent diversity characteristics
The job level of such staff
The job type of such staff
The extent to which the BBC has made progress towards
meeting its diversity workforce targets
The BBC must report on:
Its progress towards its on-screen and on-air
representation and portrayal targets
Its compliance with the Diversity Commissioning codeof practiceNotes
1 Including age, disability, gender reassignment, race, religion and belief, sex, sexual orientation and socioeconomic background2 With particular regard to first-run content across all genres
3 We have submitted further reporting to Ofcom specifically on the UK Public Services to satisfy these conditions
4 The BBC is required to report on such staff by the following categories Board members and non-executives, senior managers, middle/junior managers, and non-management There
are too few Board members and non-executives for us to report on their diversity in line with paragraph 2 51 of the Operating Licence We report the job level of our staff in the EIR andthrough further submission to Ofcom by pay band, and map onto Ofcom’s categories as follows A-C – non-management; D-E – middle/junior managers; F-SL – senior managers
5 The BBC is required to report on such staff by the following categories programming, commissioning, technical/engineering, sales/marketing, and support functions/administrative

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Return to contentsOther regulatory matters
Audience satisfaction with the reflection, representation andserving of the diverse communities in the UK
The BBC needs to measure audience satisfaction during the financial
year with the reflection, representation and serving of the diverse
communities of the whole of the United Kingdom. The survey
findings from 2021/22 show that by age band, gender, social grade,area of the UK, and amongst white audiences and black, Asian andminority ethnic audiences and audiences who are disabled and notdisabled, the proportion rating the BBC as effective on thesemeasures outnumbers those saying ineffective. In some audiencegroups, whilst the majority or plurality of people surveyed rated the
BBC as effective, this proportion of people saying the BBC was
effective can be lower than in their comparator group or the
proportion saying ineffective can be higher. This indicates that someaudience groups have less satisfaction with the BBC in this regard
than others. This year this was the case for C2DE compared with
ABC1 audiences and men compared with women; and on somemeasures for black, Asian and minority ethnic audiences comparedwith white audiences; under 55s compared with over 55s; in Scotland
and Wales, and in the Midlands compared with the England average;
and people who are disabled compared with people whoare not disabled. For the first time on some measures LGBTQ+
audiences gave lower scores than heterosexual audiences, andwere split on whether they are reflected on the BBC.

Changes to the BBC’s commercial activities
Under the Charter and Agreement, the BBC has to assess whether
changes to its commercial activities are material. During 2021/22, we
assessed whether the transfer of Children’s in-house production staff
to BBC Studios was a material change to the BBC’s commercial
activities. The BBC decided in November 2021 that this was not amaterial change. Ofcom confirmed the change was not material in
March 2022.
Regulatory complaints
Under the Charter and Agreement, the BBC is responsible forhandling complaints, in a BBC First approach. This year we received
no complaints regarding competition issues. We have also received
no complaints regarding other non-editorial relevant requirements.

Changes to the BBC’s UK Public Services and non-service
activities
Under the Charter and Agreement, the BBC has to assess whether
changes to UK Public Services are material. If the changes arematerial, we are required to carry out a Public Interest Test, whichmust then be approved by Ofcom before the change can be made.
In March 2021, the BBC published a consultation on the proposal
to launch BBC Three as a broadcast channel. In June 2021 the BBC
Board approved the BBC Public Interest Test. In November 2021,
Ofcom issued its final determination providing approval for the
BBC to proceed with its plans to relaunch BBC Three as a broadcast
television channel. The channel was officially relaunched in
February 2022.
During 2021/22, we have conducted one detailed materiality
assessment of a change to UK Public Services or non-service
activities; a trial of four changes to BBC Sounds, including an
expanded podcast acquisition strategy, podcast windowing, newformats for short-form and playable curations on Sounds. The BBC
decided the trial was not material. Ofcom confirmed the trials were
not material in February 2022.

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Governance Report145Performance against public commitments
Annual Plan commitments
Annual Plan commitments
Under the Charter, the BBC is required to publish an Annual Plan. As part of the Annual Plan, we made 106 public commitments to make the
BBC distinctive. These commitments mainly relate to specific events or outcomes on our services that occurred over 2021/22.
Public Purpose 1: To provide impartial news and information to help people understand and engage with the world around them
BBC Service

BBC commitment

ResultBBC OneBBC One will continue its commitment to news with our national news
services on Breakfast, News at One, News at Six and News at Ten. The key
areas of focus over the year will be providing accurate information andanalysis on the pandemic and its impact, climate change, a post-Brexit
UK as well as international news.

YES

BBC One, BBC Two and
BBC iPlayer

We plan to make over 750 hours of current affairs programming available
to audiences across BBC iPlayer and our TV channels, including at least
450 hours broadcast on BBC One and Two.

YES – 790 hours achieved, 490
hours across BBC One and Two

New series planned include programme on school exclusions, Oil, Modi’s
India and the role of women today.

YES – Don’t Exclude Me and
Womanhood series
broadcasted, Oil and Modi’s
India delayed due to Covid-19

Programmes such as Panorama, Newsnight and Analysis will also
investigate, scrutinise and inform our audiences on the major issues.

YES

The BBC News channel will report from around the nations and regionsof the UK, as well as specialist programmes focused on reflecting theinternational news agenda.

YES

BBC News will modernise its digital news offer to better reflect and serve
different audiences across the UK – including changes to the BBC Newsapp with an enhanced user experience.

YES – a beta version of the new
app is currently being tested byaudiences. We have also
introduced mandatory sign-inallowing us to deliver a more
personalised offer, while
ensuring top stories are stillvisible in line with our values on
impartiality and universality.

BBC Parliament will maintain its substantial coverage of the House ofCommons, House of Lords, select committees, the Scottish and Welsh
Parliaments and the Northern Ireland Assembly throughout the year.

YES

We will also consider more ways of focusing on the service’s core purposeof live coverage and highlights of the UK’s Parliaments and Assemblies.

YES – launched new weekly
programme Politics UK

BBC Radio 1

Radio 1 will continue its existing news schedule, including its two
extended Newsbeat programmes, with content focusing on issues ofparticular concern for young audiences.

YES

BBC Radio 1xtra

1Xtra will continue its existing news schedule, including its two extended
Newsbeat programmes.

YES

1Xtra Talks will offer a weekly platform to explore subjects in greater
depth, including a special programme one year on from the death ofGeorge Floyd.

YES

BBC Radio 2

Radio 2 will continue its existing news schedule, and the Jeremy Vineshow will ensure news and current affairs content features prominently
in Radio 2’s daytime output.

YES

BBC Radio 3

Radio 3 will continue its existing news schedule.

YES

BBC Radio 4

Radio 4 will broadcast at least 3,200 hours of news and current affairs
programming, providing the UK’s most extensive and in-depth reportage
and analysis of a fast-changing world.

YES – 3,249 hours

In particular it will offer impartial and critical understanding of policy,
political debate, and economic and social issues, including therepercussions of the pandemic, post-Brexit Britain, the effects of climatechange and debates over the future of the Union.

YES

A major series, 39 Ways to Save the Planet, considers fresh ways to tackle
climate change, and the Rethink project looks at how the world can
improve after the pandemic.

YES

BBC News

BBC Parliament

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BBC Service

BBC commitment

ResultWe will deepen our focus on solutions-focused journalism, through ourregular current affairs output and specially commissioned series.

YES

We will refresh and redefine our consumer affairs programming to better
enable the audience to negotiate contemporary social and economic
challenges.

YES – relaunch of You and Yoursand a commission of a new
consumer affairs podcast

75% of programming on BBC Radio 5 live is news and current affairs,
putting audiences at the centre of debate and discussion through avariety of listener interactions (phone, text, social media conversation).

YES

News summaries on 5 live will deliver relevant engaging news stories
every half hour in mid-week daytime and regularly throughout weekend
sport coverage.

YES

5 live will provide in-depth coverage of 2021’s selections across the UK,
including the Scottish Parliament; Welsh Senedd; local councils and local
and combined authority mayors in England; the Mayor of London andLondon Assembly; and police and crime commissioners in England andWales.

YES

5 live will broadcast at least two current affairs series, on linear radio andavailable as podcast.

YES – series launched include:
Deborah Meaden’s The Big
Green Money Show, Brixton:
Flames on the Frontline and
I’m Not a Monster

BBC Radio 6 Music

6 Music will continue its existing news schedule, with regular Music News
updates which will allow listeners to hear directly from notable artists
and musicians.

YES

BBC Radio Asian Network

Asian Network will continue its existing news schedule.

YES

Asian Network will continue its existing news and current affairscommitment, reflecting the most pressing issues affecting British Asians,
with relevant content shared via social media to reach the widest
possible audience.

YES – recent editions of Ankur
Desai have included coverageon the ban on hijabs in
Karnataka, the introduction ofan Asian family in Bridgeton andcoverage of the IPL

BBC iPlayer & BBC Sounds

BBC News will explore ways to enhance the news offer on BBC iPlayer
and BBC Sounds, experimenting with new ways to deliver news bulletinsand curate news content.

YES – launched news podcasts
5 Mins On, which has nearly one
million listens on Sounds

CBBC

Newsround will continue to provide children with daily news through its
extensive website and via 35 hours or more of TV bulletins annually.

YES – 44 hours delivered

This year Newsround will provide children, their parents and schools withnews and information expressly tailored to young people about the UK’s
recovery from the Covid-19 pandemic. This will include a major UK-wide
survey on children’s views of the effects of the pandemic on them.

YES – published on the BBC
websiteEnglish Regional Services

Our 39 local radio stations, 15 regional TV networks and many online
services will provide an accurate picture of what is happening foraudiences in their local area.

YES

Nations Service

Our six national and language services will provide an accurate picture ofwhat is happening for audiences in their local area.

YES

BBC Radio 5 live & 5 live
Sports Xtra

Public Purpose 2: To support learning for people of all ages
BBC Service

BBC commitment

ResultBBC One, BBC Two,
BBC Four & BBC iPlayer

We plan to make over 150 hours of religious programming available toaudiences across BBC iPlayer and our TV channels, with at least 115
hours broadcast on BBC One and Two.

YES – 221 hours, 141 hours
across BBC One and Two

These will include long-running strands such as Songs of Praise and arange of new films (e.g. Being Christian, Being Muslim, Being Sikh) that will
explore issues of faith in all the major religions.

YES

BBC One and Two will broadcast over 100 hours of informal life-longlearning programmes in the Science, History and Natural History genres,with at least 20 new titles.

YES – 195 hours

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Governance Report147Performance against public commitments
Annual Plan commitments continued
BBC Service

BBC commitment

ResultThis includes BBC One’s I Am Greta, which follows the activist as she
explores what could be done to limit climate change, David Olusoga’s
Union and new natural history programmes The Green Planet andDynasties II presented by Sir David Attenborough.

YES

We plan to make over 1,000 hours of arts and music programming
available to audiences across BBC iPlayer and our channels, with at least
400 hours broadcast on TV.

YES – 2,046 hours, 1,789 hours
broadcast on TV

BBC Two will have a landmark 7-part series on British creativity.

NO – the series Creating Britain
was pushed back to April 2022
due to a scheduling change

BBC Four continues to be the home of classical music performance
showcasing the best of the BBC Proms and covering events such as
Cardiff Singer of the World.

YES

BBC Four will also go further into the BBC archives to reveal its
unparalleled riches, routinely broadcasting classic drama, comedy
and documentary.

YES – 183 hours of drama
broadcasts, 112 hours of
comedy and 432 hours of
documentary

Culture in Quarantine continues to bring arts to audiences at home whilst
helping to support a sector deeply affected by the pandemic, including
Lights Up – a major virtual theatre festival of 18 new productions for TV,
radio and online, produced and presented with theatres across the UK.

YES

2021/22 is the first year of a three-year-plan aimed at increasing
Bitesize’s contribution to levelling up of learner outcomes for 5-16 year
olds. Year one priorities include:– L aunching a refreshed Key Stage 3 service (11-14) across all core
subjects in Autumn 2021.
– Significantly broadening and deepening our Primary (5-11) coverage,
including extending the service to Reception learners in England(these pupils are already served in other Nations).

YES – Bitesize new Key Stage 3
offer launched in September
2021. Primary has been re-cast
to be more engaging to parents
and young learners in thehome. Bitesize Reception isaiming to launch for the new
2022 school year.

BBC Education will produce 50 new hours of Bitesize Daily fortransmission on CBBC during Summer term 2021.

YES – 84 hours

BBC Education’s key education campaign in 2021/22 will be Bitesize –The Regenerators, a sustainability education campaign with the BBC
Natural History Unit and Countryfile, closely aligned to COP 26 in
Glasgow, and the NHU titles The Green Planet and Dynasties II.

YES

We will continue to commission and add new series to our
BBC Teach collections.

YES

We will continue our work to bring greater diversity to our history
content, covering further content that reflects the histories andexperiences of black and Asian communities in the UK.

YES

Tiny Happy People, our long-term early years language campaign with theRoyal Foundation, aimed at 0-4 year olds and their parents will cement
its place as part of our pre-school education offer, working closely withBitesize and CBeebies.

YES

2021-22 will see us commission up to 130 short films, with particularfocus on the 3-4 year old category. On the ground, we will be launchingfour hyperlocal focussed activity initiatives in South Wales, Northern
Ireland, Cornwall and Glasgow.

YES – 165 short films

There will be 50 hours of originated Education content to appear in athree hour zone on CBBC term-time mornings (and the programmes will
also available year-round on BBC iPlayer).

YES – 84 hours

With some commissions for this year still to be confirmed, CBBC plans as
they stand will aim to deliver at least 80 hours of new factual origination.

YES – 159 hours

CBeebies

CBeebies will also create a new Learn & Play zone every weekday on bothon the TV channel and on BBC iPlayer.

YES

BBC Radio 1

Radio 1 will broadcast at least 40 new documentaries, including a
number telling the story of an artist’s career to-date through archive
interviews and live performances.

YES – 41 documentaries

BBC Bitesize

BBC Teach

BBC Tiny Happy People

CBBC

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BBC Service

BBC Radio 1Xtra

BBC Radio 2

BBC Radio 3

BBC commitment

ResultRadio 1 will reflect key concerns of young listeners through campaigns
like Minute of Me; and continue to support mental health with craftedmixes and programmes like Life Hacks providing a wellbeing toolkit.

YES

1Xtra will broadcast at least 40 documentaries, including a series
featuring cross-generational Black artists, actors and cultural figures
discussing tracks that have inspired them.

YES – 52 documentaries

1Xtra will reflect Black History Month in October with a range of special
programmes and feature

YES

The Zoe Ball Breakfast Show is partnering with Tiny Happy People Families.
This provides a unique opportunity to learn in detail how babies develop
their speech and language, and also to show the different rates at whichbabies can develop over time.

YES

Radio 2 will continue to broadcast at least 170 hours of religious output,
including Good Morning Sunday, which will reflect modern spirituality andmark significant dates in the religious calendar. Our daily Pause For
Thought will cover national, global and topical themes.

YES

Arts programming will remain an essential part of Radio 2, with Elaine
Paige’s weekly celebration of musical theatre centre stage.

YES

The Radio 2 Book Club will feature new fiction and non-fiction titles eachmonth in its new home as part of Steve Wright’s afternoon show.

YES

We will also reflect key awards shows which celebrate the arts whenthese again become possible.

YES

Radio 2 will broadcast at least 130 hours of documentaries including
pioneering musician Billy Ocean with a series exploring the sounds of the
Caribbean; and comedian and former battle rapper, Romesh
Ranganathan, sharing his passion for hip-hop.

YES – unfortunately Billy Ocean
was unable to participate, thiswas replaced by a series from
Reggae Superstar Shaggy

Radio 2 will go green with special programming.

NO – due to a schedulingchange, this launched in May
2022 with the Sow Grow Showand a themed week of features.

Radio 3’s BBC Young Composer 2021 will give musically minded people aged
12-18 the opportunity to win places on a tailored development programmeworking with a mentor composer on a project with the BBC Concert
Orchestra, culminating in a performance or broadcast opportunity.

YES

Radio 3 will also launch a new competition for sound designers.

YES

Radio 3’s religious programming includes our annual EBU Music Days
inspired by Easter and Christmas, and a planned series of essays on thehistory of rural churches and the meaning of spiritual ritual in thecontemporary world.

YES

We also plan to regularly tackle religious and ethical issues from acrossthe world in our thrice-weekly discussion programme Free Thinking.

YES

We will also reflect key awards shows which celebrate the arts whenthese again become possible.

YES

Radio 3’s new documentaries will cover a broad range of arts and cultural
topics, which will include Riding the Waves – how Virginia Woolf’s
ground-breaking novel The Waves has influenced writers, artists andcomposers across the creative spectrum; To Thee We Sing – the life andcareer of the African American opera singer Marian Anderson; Fluxus –inside the revolutionary 1960s art movement; 52 Rhythms of
Remembering, a new translation and journey inside one of Wales’ oldest
poems; Then There Was Light – the controversial late works of composer
Karlheinz Stockhausen; Nightingales in Berlin – capturing the sound andmusic of the latest residents of the German capital; and How to Rebuild a
City – the story of the architectural ideas behind Coventry’s
reconstruction after the war.

YES

Radio 3 will broadcast regular strands committed to explaining music,
arts and ideas to new audiences, such as The Listening Service andComposer of the Week.

YES

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Governance Report149Performance against public commitments
Annual Plan commitments continued
BBC Service

BBC commitment

ResultBBC Radio 4 &Radio 4 extra

We will broadcast at least 200 hours of programming which reflects andexplores the religious and ethical dimensions of life, including a newseries in which James MacMiIllan explores the spiritual aspect of greatcomposers’ work.

YES – 203 hours

Radio 4 will refresh and redefine our arts journalism, devoting more
airtime to the arts this year, with linked podcasts, to report, celebrate,critique and promote the artistic life of the UK.

YES

We will launch new regular strands, committed to deeper exploration ofmusic and film.

YES

Radio 4 will broadcast at least 375 hours of documentaries, using
innovative formats to help our audience to a deeper understanding ofpolitics, economics, business, law, history, science, religion and culture.

YES – 418 hours

We will commission prominent programming to explore the implications
for democracy of big data, social media and artificial intelligence. We will
devote significant airtime to exploring practical solutions to thechallenge of climate change.

YES

BBC Radio 5 live &5 live Sports Xtra

Nationally significant religious festivals will be explored in 5 live
news programmes.

YES

BBC Radio 6 Music

6 Music will broadcast at least 520 hours of a range of speech-based
features, documentaries and essays, including programmes such as
Sound & Vision, Journeys in Sound and The First Time.

YES – 531 hours

BBC Radio Asian Network

Asian Network will reflect and celebrate key South Asian religious
festivals such as Diwali and Ramadan.

YES

Beyond Bollywood will bring listeners all the latest movie news and morethrough a weekly show and companion podcast; we will also launch a
new programme focused on the Pakistani entertainment industry.

YES

Asian Network will celebrate the 50th anniversary of the independenceof Bangladesh with a series of programmes across the year.

YES

BBC Alba will broadcast at least ten hours of programmes per week for
Gaelic language learners.

YES – 11 hours

A new language learning initiative, SpeakGaelic, to be launched inautumn 2021, is set to become a focal point for adult learners andspeakers, with a course, a dedicated on-demand learning website
and complementary programming across BBC Gaelic services anddigital platforms.

YES

BBC Local Radio

All 39 local radio stations will provide virtual church services from 8am
each Sunday.

YES

BBC iPlayer

We will expand the volume of content available to children on BBC
iPlayer. Currently there are around 1,500 hours of content available atany one time and we plan to significantly increase this over the next few
years, for all our children’s age groups.

YES – 2,300 hours of content
available currently

BBC Alba

Public Purpose 3: To show the most creative, highest quality and distinctive output and services
BBC Service

BBC commitment

ResultBBC One, BBC Two,
BBC Three & BBC Four

BBC One will broadcast a broader range of genres in peak time than any
comparable channel.

YES

At least 25 new scripted titles will be broadcast across the portfolio.

YES – 30 titles

We plan to make over 1,500 hours of Drama programming available toaudiences across BBC iPlayer and our channels, with at least 500 hours
broadcast on TV.

YES – 3,531 hours, 935 hours
broadcast on TV

BBC One will prioritise distinctive, high-quality drama working with thevery best established and new on- and off-screen talent to reflect lives
across the UK. This includes the timely adaptation of This Is Going To Hurt
by Adam Kay.

YES

BBC Two will partner with BFI on the British Film Premiere season.

YES

BBC Three will broadcast fresh new drama with breakthrough talent foryoung audiences such as Superhoe.

YES – Superhoe was renamed
to Mood

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BBC Service

CBBC

CBeebies

BBC News

BBC commitment

ResultBBC One and Two will broadcast the year’s greatest sporting events –Men’s Euros, Wimbledon, the Tokyo Olympics and Beijing Winter Olympic
Games. We will also cover the Invictus Games from The Hague.

YES

We plan to make over 500 hours of comedy programming available toaudiences across BBC iPlayer and our TV channels, including box sets ofclassic comedy favourites, with at least 300 hours broadcast on BBC One
and BBC Two (of which at least 50 hours will be first-run).

YES – 1,273 hours of comedy,
525 hours broadcast on TV (ofwhich 111 hours were first-run)

BBC Two will continue to be the home of smart and popular comedy withthe return of Guilt and Inside No. 9, as well as new series such as Alma’s
Not Normal. BBC One will broadcast a wide range of comedies with broad
appeal e.g. Mrs Brown’s Boys and family favourites such as Ghosts andWorzel Gummidge.

YES

BBC Three will continue to champion new voices and reflect young
British experience around the UK with a fresh and innovative tone
including a new female-led series Ellie & Natasia.

YES

Across BBC One and Two with at least five new factual landmarks series
during the year including Pandemic, The Green Planet and Universe.

YES – 7 series

BBC Three will offer fresh and innovative formats, at least five newfactual entertainment series and returning hits including RuPaul’s Drag
Race UK.

YES – 16 series

CBBC will broadcast a broader range of genres than other children’s
television channels.

YES

CBBC will continue to serve the 6-12 audience, with an increased focus
towards iPlayer for the older 10-12 age bracket who are increasingly
preferring video on demand.

YES

20% of CBBC commissions this year are aimed at the 10-12 audience,with more of these programmes launching on iPlayer first.

YES – 32% of commissions
aimed for 10-12 audience

60% of commissions are aimed towards the 6-9 audience, with theremaining 20% appealing to the broader 6-12 years range.

NO – see note 1

Both CBBC and CBeebies will interact with children aged 4-12 throughpresenter-led factual entertainment and game shows such as Blue Peter,
Saturday Mash-Up! and Crackerjack!, as well as via the hosted
presentation links on the channels and different day parts featuring
education or entertainment zones.

YES

With some commissions for this year still to be confirmed, CBBC plans as
they stand will aim to deliver at least 80 hours of new factual
originations, 90 hours of new drama, six hours of new commissioned
animation, and 60 hours of new comedy and entertainment.

159 hours achieved for factual,
drama underachieved with 88
hours due to delays in delivery,
100 hours achieved for comedy,
6 hours for animation – seenote 2

CBeebies will broadcast a broader range of genres than other children’s
television channels.

YES

New originated content for CBeebies this year is weighted towards the
4-6 age range, forming 78% of commissions with the remaining 22%
aimed at the 0-3s.

NO – see note 3

Bridging programmes will be created which can span across the 6–8
years range, as these viewers will watch both CBeebies and CBBCand the content can sit comfortably on either channel, along with
BBC iPlayer.

YES

BBC News Channel will commit to coverage of live events combined withreal-time analysis and explanation to help audiences keep up to date andmake sense of significant developments, including key public healthmessages, as they happen.

YES

Reporting from around the nations and regions of the UK, as well as
specialised programmes reflecting the international news agenda.

YES

Focus on putting questions from viewers at the heart of our coverageto help audiences understand the news in the way that is most relevantto them.

YES

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Governance Report151Performance against public commitments
Annual Plan commitments continued
BBC Service

BBC commitment

ResultBBC Radio 1

Radio 1 will ensure it continues to offer a distinct music mix compared tocommercial music radio stations.

YESRadio 1’s Playlist and Brit List will showcase the UK’s most exciting new
music, with particular support for new and emerging acts.

YES

Radio 1 will continue to ensure new music and UK artists takes centre
stage in our daytime programming.

YES – 54% of Radio 1’s daytime
music was new, with 60% fromUK artists

Radio 1 expects to broadcast over 3,500 hours of specialist musicprogramming this year. The flagship Radio 1’s Future Sounds programme
will continue in its new, earlier 6-8pm timeslot on Monday to Thursdays
and we will launch a new Radio 1 Future Soul show in the autumn.

YES – 3,708 hours

1Xtra showcases contemporary black music and acts as a champion for
new and emerging UK acts. In daytime, at least a third of the music will
come from UK artists, with an intention that at least half of this will
be new.

YES – 46% of the daytime
music was by UK artists, ofwhich 75% was new

1Xtra Loves Jamaica, a series of programmes focused on Africa and a
special R&B Weekend will reflect our audience’s shared passion formusic.

YES

Hot for 2022 will first introduce, and then support the acts we are most
excited about for the coming year

YES

Radio 2 will ensure it continues to offer a distinct music mix compared tocommercial music radio stations, with UK artists and new music at theheart of programming.

YES

Radio 2 plans to celebrate the 1960s in a series of special shows during
the summer, together with a series presented by Ricky Wilson of the
Kaiser Chiefs built around his passion for 50s Rock & Roll.

YES

Radio 2 will broadcast at least 1,110 hours of specialist music over theyear, including Trevor Nelson’s Rhythm Nation, regular country, folk, jazzand blues shows, as well as programmes dedicated to rock, reggae andbrass bands.

YES

Radio 2 will showcase live music with at least 260 hours of new andarchive performances across the year, including coverage from key
festivals and events as and when these become possible again.

YES

Radio 3 will offer uniquely authoritative, yet widely accessible
exploration and performance of music from all periods, taking in
the whole classical tradition, together with jazz, world music andcontemporary electronic genres.

YES

Radio 3 will mark seasons of the year and significant anniversaries withspecial clusters of music and speech programming. Amongst the culturalanniversaries we’ll be marking in 2021: the 150th anniversary of theAlbert Hall opening; the 50th anniversary of Igor Stravinsky’s death; the150th anniversary of the premiere of Verdi’s opera Aida; the 400th ofDante’s birth, and the 250th of Walter Scott’s birth.

YESRadio 3 will offer lively and insightful speech programmes and podcaststhat illuminate the world of music and musicians, art and artists, drawing
new audiences into a deeper experience of British, European andglobal culture.

YES

Radio 3 will broadcast distinctive mood and talent-led music showformats building on the success of Tearjerker; Downtime Symphony;commissioned with BBC Sounds, to drive discovery and bring classicalmusic to new and young genre-fluid audiences who otherwise might
never engage with it.

YESRadio 3 will maintain its role in unique and challenging long-form
audio drama and work with theatres that have been closed during
the pandemic.

YES

Radio 3 will commission at least 30 new musical works for performanceand broadcast across the UK.

YES – 39 new musical works

BBC Radio 1Xtra

BBC Radio 2

BBC Radio 3

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BBC Service

BBC commitment

ResultRadio 3 will continue to promote new talent, whether through New
Generation Artists, New Generation Thinkers, BBC Sound First or
BBC Introducing.

YES

Radio 4 will maintain its commitment to drama, broadcasting major
drama series reflecting contemporary Britain as well as adaptations ofmodern and classic novels, including authors such as DH Lawrence,
Thomas Hardy and Rudyard Kipling.

YES

We will also continue to reinvent audio drama for younger audiences witha range of new titles aimed at the podcast generation.

YES

We will launch a new strand of half-hour drama, encouraging new
approaches to writing for radio and making audio drama more accessible
to a wider audience on-air and online.

YES

We will pilot new comedy formats from established comediansand provide opportunities for emerging comic talent to reach anational audience.

YES

Radio 4 Extra will provide a unique platform of entertainment andrefreshment, curating a showcase of the best comedy, drama andfeatures in the BBC archive.

YES

Following big podcast hits such as Grounded with Louis Theroux,
Fortunately with Fi and Jane, You’re Dead to Me and The Battersea
Poltergeist, Radio 4 will commission more digital-first content to reachnew audiences, which will also be enjoyed in the linear schedule.

YES

Building on the international success of Mayday and Tunnel 29, we will
broadcast the next programme and podcast in the Intrigue series,
combining investigative skills and dramatic narrative to powerful effect.

YES

Radio 4 Extra will also explore new and diverse podcasts through its
unique Podcast Radio Hour.

YESRadio 5 live will enhance production of the BBC’s hugely popular
podcast, That Peter Crouch Podcast with a series of specials to cover theEuros football tournament.

YES

Radio 5 live will continue to produce the distinctive You, Me and The Big C
podcast and will continue the station’s legacy of supporting community
podcasts by producing the next winner of The Rachael Bland Podcast
Award for a second year.

YES

Radio 5 live will produce high quality and distinctive coverage of thebiggest sports events of the year including Olympic Games, Euros
football, Wimbledon, Ryder Cup and the Ashes.

YES

Radio 5 live will provide live commentary on a broader range of sports
than any other radio broadcaster, Premier League, Champions League
and Women’s Super League football, international cricket, rugby
and boxing.

YES – 43 sports, see list above

6 Music will champion new and alternative music from the UK andbeyond, in particular artists releasing music on independent labels
and those getting little exposure on mainstream stations.

YES

Strands such as the 6 Music Artist Collection and Artist in Residence will
shine an in-depth spotlight on the unique visions of musicians close to
the hearts of our listeners.

YES

Craig Charles will mark the 50th anniversary of Marvin Gaye’s seminal
album What’s Going On in May.

YES

BBC Radio Asian Network

Asian Network’s Future Sounds will showcase the new artists we are most
excited about for the coming year; with the station’s Playlist continuing
to act as a showcase for the British Asian Sound.

NO – Future Sounds did notlaunch however two new weekly‘new music shows’ werelaunched during the year, and
51% of playlist tracks were fromUK artists or UK producers

BBC iPlayer

BBC iPlayer will be packed with original, high-quality new series, box sets
to binge, classics from the archive and more programmes available on
iPlayer first.

YES

BBC Radio 4 &Radio 4extra

BBC Radio 5 live & Radio 5
live Sports Xtra

BBC Radio 6 Music

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Governance Report153Performance against public commitments
Annual Plan commitments continued
BBC Service

BBC Sounds

BBC News

BBC commitment

ResultA relevant and intuitive experience, tailored to the individual – through aunique blend of human and algorithmic curation.

YES

Distinctive live experiences that reflect what matters to UK audiences –live news, access to big events, and cultural moments that you won’t
want to miss out on.

YES

A service that works for every young person – from our youngest viewers
through to our young adult audience, one service that grows with themat their pace.

YES

Accessible to the audience wherever they are, whatever devices they areusing, finding them at the right moments with the right content.

YES

BBC Sounds will be an experience with live radio at its heart: with newcollaborative approaches to commissioning that deliver exclusive
content, standout events and regular listening moments joined up acrosslinear and on-demand.

YES

A creative engine for the UK: renewing the offer from our amazing radio
stations to deliver value to all audiences, developing new diverse talentthrough the Sounds Lab scheme, exploring new ways of partneringwith community radio, and showcasing the best new and growing
British podcasts.

YES

More local than ever: making it easier to discover nations and local
content on its own or as part of curated experiences.

YES – nations and local stations
were added to the TV app
making them accessible acrossall of our platforms

Simple and relevant to you: more value by unlocking BBC Radio content
from schedules to curate presentations tailored to your tastes andlistening moments both on-demand and through a new scheduled
stream of content to help young audiences in particular to manage stressand wellbeing through music and speech content.

YES – Radio 1 Relax was
launched in April 2021, a brandnew 24 hours stream to help
listeners unwind

Available everywhere: working with others across UK audio to keep radio
evolving, relevant and prominent in-car and on new platforms like voice.

YES

BBC News will begin rolling out an enhanced user experience across an
updated website and BBC News app, including:— New short-form video and interactive experiences.

NO – This work is still inprogress. We have created a
new Digital Formats team thatis working on developing these
new formats and improve
curation of content.

— New story formats for complex long running stories which enableaudiences to determine how long they want to spend on a topic.
— Innovative types of curation which make it easier for audiences to findand understand key stories as they evolve.
— More transparency and personality within our news by providing more
information on our experts and the sources they use.
— Live streaming experiences using contributions from BBC journalists
on the ground as news breaks.
BBC Sport

BBC Sport will have coverage of major sporting events including theEuropean Football Championships, the Tokyo Olympics, Wimbledon and
the Ashes in Australia.

YES

A Premier League service – with a more personalised experience, basedaround our team passions and unlocking the best of the BBC coverageof individual clubs.

YES

Sport Plus content (i.e. the stories of sport in culture and entertainment),
alongside increased online interactivity (user generated content,
ratings, games).

YES – launched with
documentary Ronaldo

Enhanced personalisation, sign-in and topics.

YES

Notes
1 35% of CBBC titles aimed at 6 – 9 delivered, 33% aimed at 6 – 12 Commissions that were delayed due to Covid-19 in the previous years were shown in 2021/22 This backlog meant thatsome 2020/21 titles were not shown in that financial year and so that impacted on 2021/22
2 In the BBC’s Annual Plan for 2021/22, the figure for our commitment to delivering animations hours was erroneously labelled as 30 hours rather than the 6 hours as was intended
This has been corrected in the commitment above
3 58% of CBeebies titles delivered for 4 – 6 ages, 42% for 0 – 3s Delivery of this was affected by Covid-19 related delays, see note 1 above

154

Annual Report and Accounts 21/22

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Public Purpose 4: To reflect, represent and serve the diverse communities of all of the United Kingdom’s Nations and regions and, in
doing so, support the creative economy across the United Kingdom
BBC Service

BBC commitment

ResultBBC One, BBC Two,
BBC Three, BBC Four &BBC iPlayer

Our content plans for 21/22 include a range of output to reflect andrepresent diverse communities including My Name is Leon, Ralph andKatie, Gentleman Jack, Superhoe, Man Like Mobeen, Our international NHS
and Independence Day. From January 2022, Morning Live will bepresented live from Salford. BBC One will be the only channel in the UK
to broadcast all of its live morning output from outside London.

YES

We will launch a new daytime drama, Hope Street, set in rural County
Down, to complement other daytime series from the Midlands.

YES

We will broadcast at least 20 drama and comedy titles that are clearly
set in towns, cities and counties right across the UK.

YES – 30 titles launched

We will broadcast up to ten new factual series from all four nations as aresult of BBC Three and BBC Two’s work to support nations and regions
companies through Covid-19.

YES – 10 series launched

Network TV and Nations and Regions will continue working together
to implement a new co-commissioning model that will see the BBC
deliver more portrayal-led commissions on the main network channels
and iPlayer.

YES

We will move the BBC Writers-room headquarters to Salford and we will
appoint four new Drama commissioning roles, one in each nation, whowill lead on new writer development and support the Commissioning
Editors to build the range and pipeline of new voices across the UK.

YES

BBC Three will build on the success of their Northern Voices scheme, bylaunching a Documentary opportunity for Midlands producers with BBC
England, to champion local companies who want to tell young, authentic
regional stories.

YES

Our £2 million diversity fund will, amongst other things, support a diverse
talent scheme across series 6 and 7 of Shetland focussing on entry level,
mid-level and script editing roles; co-fund two trainee series producers
with Dragonfly North and the next series of Ambulance; and fund three
additional production roles from a working-class background for Series 3of Angels of the North to improve socioeconomic diversity and strengthen
talent development in the Newcastle and Darlington areas.

YES

We will increase the number of Network commissioner roles based in the
North of England to support local ideas and companies in the region.

YES

We will refresh the recipients of our small indie fund to support thegrowth and broaden the range of companies we commission – witha focus on diverse-led and nations and regions producers.

YES

CBBC will reflect the diversity of UK children to ensure everyone sees
themselves and their lives represented on screen.

YES

Animation will play an increased role in our future audience strategy overthe next few years and we are launching a pilot initiative to support thecreative economy in developing new creative animation talent in the UK.

YES – the Ignite pilot initiative
launched in September 2021,
receiving over 1,000 submissions

CBeebies

CBeebies will reflect the diversity of UK children to ensure everyone sees
themselves and their lives represented on screen.

YES

BBC Radio 1

Radio 1 will support the UK’s creative industries across the UK as theylook to reopen from Lockdown, celebrating live music, festivals and clubs
as and when relevant guidelines permit.

YES – including two Essential
Mix programmes from reopened clubs, outside
broadcasts from Reading
Festival and Radio 1’s Out Out!
Live, a free event at Wembley
Arena

BBC Radio 1Xtra

1Xtra’s UK Tour will shine a spotlight on 16 cities in April.

YES

In partnership with BBC Introducing and Children In Need, we will
showcase the talents of local artists and creatives, as well as reflecting
stories from those working as a force for good in local communities.

YES – work with Children in
Need was rescheduled tolaunch in April 2022

CBBC

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Governance Report155Performance against public commitments
Annual Plan commitments continued
BBC Service

BBC commitment

ResultBBC Radio 3

Radio 3 will support the rebuilding of the classical music industry and theculture of live performance as it emerges from the pandemic, by
broadcasting dedicated performances and recordings from a wide rangeof festivals and concert halls around the UK, as and when relevant
guidelines permit.

YES

Radio 3 will continue to unearth and celebrate the work of neglected
women and black, Asian and minority ethnic composers, living and dead.

YES

We will engage with and tell the stories of people across the UK, throughdocumentaries, The Listening Project and the launch of a newconversation strand which explores life-changing situations.

YES

We will explore the history of the British slave trade and its continuing
influence on our lives today.

YES

A new series will explore the UK’s history and self-understanding incollaboration with local museums.

YES

A series of documentaries will examine attitudes to the Union, with four
programmes from each of Scotland, Northern Ireland, Wales and England.

YES

A series of ten dramas, from five different parts of the UK, involving 50
new and established writers with distinctive regional identities, will
create a collage of stories about contemporary life across the country.

YES

5 live will continue to reflect the UK-wide audience as the only UK-wide
speech station based in the North of England.

YES

Radio 5 live will cover more women’s sports than any other radio
broadcaster.

YESRadio 6 Music will mark Pride with an iconic season of artist-led shows,
playlists and mixes.

YES

6 Music will aim to support grassroots live music and performance,
across the UK, highlighting initiatives like Independent Venue Week, andinviting new and emerging artists to perform in session as and whensocial distancing guidelines allow.

YES

Asian Network will begin work to consolidate at a single basein Birmingham.

YES – Asian Network Chill
launched in October 2021
and is being produced by aBirmingham-based indie

Following a ‘new voices’ initiative, Asian Network Represents on Sunday
evenings will showcase a diverse set of new presenters throughout 2021.
The line-up includes a number who are new to radio, with each DJ
enjoying a month to share their passion for British Asian culture.

YES

During this period, iPlayer hits Keeping Faith and Hidden will return for
their final series and crime thriller The Pact launches.

YES

Comedy remains a central pillar of content with a ‘Festival of Funny’pencilled for the autumn and the welcome return of sitcom The Tuckers
and the award-winning In My Skin.

YES

Landmark factual shows continue to punctuate the year including
The Celtic Deep and Snowdonia Farmers.

YES

Political coverage of the Senedd elections on key programmes, includingRadio Wales Breakfast, Drive and Sunday Supplement. Also delivering
additional content through podcasts such as Walescast.

YES

We will provide extensive coverage, including live commentary of every
Wales game, of the 2021 European Football Championships. We will also
provide coverage of Welsh athletes at the Olympics, the Lions Tour andthe Women’s Rugby World Cup.

YES

We will continue to support Welsh culture, including the Machynlleth
Comedy Festival and The Hay Digital Festival.

YES

We will attract younger audiences by creating bespoke podcasts andcontent for BBC Sounds – including The Hayley Pearce Podcast.

YES

BBC Radio 4 &Radio 4extra

BBC Radio 5 live &5 live Sports extra

BBC Radio 6 MusicBBC Asian Network

BBC One Wales &BBC Two Wales

BBC Radio Wales

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Annual Report and Accounts 21/22

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BBC Service

BBC commitment

ResultComedy will also continue to be a priority for BBC Radio Wales, witha range of pilots supporting new talent, alongside the return ofestablished series such as the all-female sketch show, Welcome Strangers.

YES

Radio Cymru’s recently launched morning news programme, Dros
Frecwast, will provide comprehensive and accessible coverage in 2021of the pandemic, the Welsh Parliamentary Elections and major
sporting events.

YES

Plans are in place to provide a creative, on-air response to thecancellation of the major Welsh language cultural festivals, as well
as a series of concerts and sessions with popular Welsh artists.

YES

We’ll continue to expand our Welsh language content produced
exclusively for BBC Sounds and will create more space for diverse
voices and strengthen our offer for young audiences.

YES

Drama will be a mainstay of our network offer to audiences, with thereturn of Shetland (for its sixth series) and new two new six-part thrillers– Vigil and The Control Room. In comedy, there will be a welcome returnfor the residents of Latimer Crescent in Two Doors Down and, for younger
viewers, Molly and Mack will be back on CBBC. Tricky will return to Radio
4’s podcasts for a second series of topical discussion.

YES – The Control Room wasrescheduled to 2022/23

News programming will continue to feature prominently on BBC One
Scotland, with coverage of key events across the year, including theHolyrood elections in May, the European Football Championships andthe Olympics in summer 2021 and the world climate conference, COP26
in Glasgow.

YES

Fresh and innovative content, formats and new talent, will continue todefine the BBC Scotland Channel.

YES – 800 hours of originatedcontent broadcasted across awide range of genres

Factual programmes across the year will include the return of Inside
Central Station, Inside the Zoo and Scotland’s Home of the Year. There will
also be new series of Murder Case and David Wilson’s Crime Files and Who
Owns Scotland? will scrutinise urban and rural land ownership.

YES – Murder Case wasrescheduled to 2022/23

The multi-award winning Guilt will return to the BBC Scotland Channel
and BBC Two for a second series.

YES

Burnistoun’s Iain Connell and Robert Florence will bring a new comedy
series to screens with The Scotts.

YES

TUNE and Loop will highlight the best stories in music and arts fromacross Scotland.

YES

BBC Alba

BBC Alba will broadcast the eighth and concluding series of theHebridean-set drama Bannan and an ambitious new co-funded drama
series for children, Na h-Òstairean will be produced.

YES

BBC Radio Scotland

Political coverage of the Holyrood elections in May will feature acrossour news output, including the recently introduced Sunday Show.

YES

BBC Radio Scotland will be the ‘Home of the Euros’ in summer 2021,
with extra programming and special events.

YES

We will launch our own COP26 children’s writing competition – Climate
Tales – culminating in a simulcast finale with the BBC Scotland channel.

YES

BBC Radio Nan Gàidheal

BBC Radio nan Gàidheal will continue to provide its unique mix of speech
and music programmes for Gaelic speakers and new talent development
will be a priority.

YES

BBC One Northern Ireland& BBC Two Northern
Ireland

Deliver impactful television drama for BBC network audiences, includingLine of Duty and Hope Street.

YES

Work collaboratively with BBC Three on locally produced programmes
for younger audiences and across a range of genres.

YES

Maintain the breadth and appeal of our local television schedule witha mix of returning strands and new commissions.

YES

Deliver landmark documentaries on major historical issues and themes,
including Road to Partition.

YES

BBC Radio Cymru & Radio
Cymru 2BBC One Scotland

BBC Scotland

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Governance Report157

Performance against public commitments
Annual Plan commitments continued
BBC Service

BBC Radio Ulster &Radio Foyle

BBC Local Radio &BBC England TV

158

BBC commitment

ResultReflect community diversity and contemporary life through strands
including True North, Home Ground and our minority language output.

YES

Work to make locally produced/relevant television programmes easier
to find on BBC iPlayer.

YES – BBC Northern
Ireland programmes were
promoted beyond theNorthern Ireland category
and recommended to viewers
through various methods

Commission A Season of Arts, a cross-platform celebration of artsand creativity.

YES

Maintain the breadth, impact and distinctiveness of our journalism in
BBC Newsline, Spotlight and The View.

YES

Consolidate schedule and other changes on BBC Radio Ulster/Foyle,maintaining distinctiveness and developing opportunities for new talentand more diverse voices.

YES

Showcase musical talent through our BBC Radio Ulster School Soloist of
the Year competition and Young Musicians’ Platform initiative.

YES

Describe, explain and facilitate debate about the centenary of partition
and the establishment of Northern Ireland.

YES

Develop our documentary strand, Assume Nothing, and showcase
emerging comedy talent and writing.

YES – over two million listeners
since launch

Provide audiences with news, information and analysis about Covid-19
and post-Brexit issues.

YES

Work collaboratively with other organisations in delivering programme
initiatives, including Book Week with Libraries NI.

YES

Develop the profile, reach and impact of locally produced output on
BBC Sounds, including podcasts such as Year 21.

YES

Broaden listener engagement with BBC programmes, reflecting diverse
voices and experiences from across the region.

YES

Provide a forum for the sharing of listeners’ stories, views and concerns
on programmes including The Nolan Show.

YES

Our 15 regional TV news programmes will continue to be fundamental
to the BBC’s news offer in England.

YES

39 local radio stations and online services will provide an accurate
picture of what is happening for audiences in their local area.

YES

We will launch a new flagship current affairs series across England,
reflecting the big stories affecting people who live right acrossthe country.

YES

We will bring audiences impartial coverage of the local andmayoral elections.

YES

Our local and regional services continue to provide a front door to the
BBC for new talent, placing authentic local voices and a wider arrayof ideas.

YES

Our new commissioning model will ensure audiences right across thecountry see and hear themselves represented on the BBC including
partnerships with BBC channels (e.g. Angels of The North on BBC Three).

YES

We will find innovative ways to expand local and national campaigns likeour successful Make A Difference initiative.

YES

Annual Report and Accounts 21/22

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Public Purpose 5: To reflect the United Kingdom, its culture and values to the world
BBC Service

BBC Commitment

Result

BBC World Service

BBC World Service will continue to bring the best journalism in English
and more than 40 languages.

YES

Its key editorial focus will be to cover the Covid-19 around the world;
climate change (Life at 50 Degrees); learning and education, and tackle
disinformation.

YES

Editorial control and operation of the BBC World News channel will moveto the public service news operation.

YES

BBC Studios will continue to promote BBC and other British content
to the world, through the selling of content, doing deals, making
programmes like next year’s The Green Planet with international
partners, making Dancing with the Stars, and launching D2C services
such as BBC Select.

YES

With BBC Studios we will look to create new opportunities for UK
independent producers to exploit the growing global commercial
opportunity for UK audio.

YES

BritBox

BritBox will continue to showcase the very best of British content
to audiences in key markets globally.

YES

BBC Radio 3

Radio 3 will continue to support and promote live music across Europe
and more widely, through its participation in the EBU music exchange.

YES

BBC Studios

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Governance Report159Performance against public commitments
General Duties
The Charter sets out a number of General Duties that apply to the BBC. This section sets out the BBC’s performance against these Duties –the measure for reporting were set out in the BBC Annual Plan for 2022/22.
1. Acting in the public interest
The BBC must act in the public interest, aiming to serve its audiences not just as consumers, but as members of a wider society, with
programmes and services which, whilst seeking to inform, educate and entertain audiences, also serve wider public purposes. As a result,the BBC must ensure that the benefits (whether direct or indirect) of decisions relating to the mission or purposes outweigh the costs(whether direct or indirect); and have regard to economic, social and cultural benefits and costs.
MeasureAchieved

We will publish an Annual Plan and an Annual Report

YES

We will publish the number of complaints upheld where we have failed to comply with the BBC’s
obligations under the Charter and Agreement or with the Ofcom Operating Framework or
World Service Licence

YES – see Other Regulatory
Matters

We will publish the number of complaints upheld on BBC editorial matters and overall volumesof complaints madeYES – see Editorial Guidelines
and Standards report

We will publish performance measurement data, including data on the fulfilment of the public purposes

YES

2. Engagement with the public
The BBC must assess the views and interests of the public and audiences, including licence fee payers, across the whole of the United
Kingdom. The BBC must make arrangements to ensure that the diverse perspectives and interests of the public and audiences, including
licence fee payers, across the whole of the United Kingdom are taken into account in its decision-making.
MeasureAchieved

We will publish annually data on audiences’ views about the BBC as part of the Annual Report

YES

We will hold around six face-to-face events with audiences and report on the findings in the BBC’s Annual
Report, four of which will be delivered by the Board’s Nations Committees

YES – see Engaging withaudiences and the BBC Virtual
In Person (VIP) programme

3. Market impact
The BBC plays a crucial role in the UK media and broadcasting market. In addition to serving audiences directly by providing content andservices, it can contribute to the market more broadly, for example by promoting competition, supporting supply chains and encouraging
sector-wide innovation. The BBC must have particular regard to the effects of its activities on competition in the UK. In complying with thisduty the BBC must (a) seek to avoid unnecessary adverse effects on competition and (b) promote positive market impact.
MeasureAchieved

We will publish and consult on any planned material changes

YES – see Other Regulatory
Matters

We will publish annually the number of regulatory complaints upheld and actions taken in response

YES – see Other Regulatory
Matters

We will publish the number of Ofcom enforcement actions in relation to compliance with the Ofcom
Operating Framework in this area

YES – none

We will publish the outcomes of any Public Interest Tests

YES – see bbc.com/
aboutthebbc/reports/
consultation

160

Annual Report and Accounts 21/22

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4. Openness, transparency and accountability
The BBC must observe high standards of openness and seek to maximise transparency and accountability. It must publish Board minutes,
important decisions concerning changes to remit/services, and minutes of Committee meetings. The Board also needs to have regard to thebenefits of consultation with interested persons.
MeasureAchieved

We will publish an Annual Plan that sets out the BBC’s strategic priorities, creative plans, budget and any
planned material changes to services

YES – see bbc.com/
aboutthebbc

We will publish the following after the relevant event:– Minutes of the meetings of the Board– Important decisions concerning changes to the creative remit, work plan and material changes to the
UK Public Services, non-service activities and commercial activities– Summary minutes of the meetings of committees of the Board

YES – see bbc.com/
aboutthebbc

We will publish an Annual Report and Accounts, containing a detailed summary of performance against
our regulatory quotas; full financial details and accounts; and information required as part of ourEquality Information Report

YES

We will continue to publish the salary disclosures required under the Charter relating to pay over £150k,
along with our voluntary regime of quarterly salary and expenses disclosure for senior managers

YES – see Remuneration report

5. Partnership
The BBC will work collaboratively and in partnership, especially in the creative economy, in the public interest. It should partner with a wide
range of organisations of all sizes, including commercial and non-commercial, throughout the UK. Partnerships should be fair and beneficial
to all with due attribution and recognition for partners.
MeasureAchieved

We will collect and publish performance data on key partnership output and activities, including on the
BBC’s range of partnerships, range of partners, geographical breadth, and impact

YES – see Partnerships andcollaboration

6. Diversity
The BBC must ensure it reflects the diverse communities of the whole of the United Kingdom through its output, the means by which its
output and services are delivered, and in the organisation and management of the BBC. This includes support for the regional and minority
languages of the UK.
MeasureAchieved

We will publish detailed diversity data for all our staff, including on socio-economic background, as partof our annual Equality Information Report

YES – see Equality Information
ReportWe will continue to publish gender pay gap information, and analysis of our pay gaps for other groups

YES – see Gender Pay Gap
reportWe will also publish performance measurement data collected on the fulfilment of our fourth
public purpose

YES

7. Technology
The BBC must promote technological innovation, and maintain a leading role in research and development. To do this, it needs to seek to workin partnership with other organisations and share, as far as is reasonable, its research and development knowledge and technologies.
MeasureAchieved

We will continue to invest in the BBC’s Research and Development (R&D) department in line with theBBC’s long-term objectives

YES

We will continue to share our insights from R&D, for example using industry white papers and relevant
professional gatherings, including standards bodies. We will use our web and social presence to highlight
key messages to a wider audience

YES

8. Stewardship of public money
The BBC exercises rigorous stewardship of public money in accordance with the following principles:— Regularity – Management of all of the BBC’s resources must accord with the provisions of the Charter, Framework Agreement and otheragreements the BBC enters into with Government Ministers— Propriety – Management of all of the BBC’s resources must meet high standards of public conduct, robust governance and duly consider
the expectations of Parliament (including those of the Public Accounts Committee), which have been formally communicated to the BBC— Value for money – Procurement, projects and processes must be systematically evaluated and assessed to provide confidence about theeconomy, effectiveness and efficiency of the project, taking into account the wider public interest, not just that of the BBC itself— Feasibility – Proposals using public funds should be implemented accurately, sustainably and to the intended timetable

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Governance Report161Performance against public commitments
General Duties continued
MeasureAchieved

True and Fair audit opinion from the BBC’s external auditors

YES

We will report on our mechanisms for provision of information to the Board and the Audit and Risk
Committee on compliance with the Charter, to ensure that the transactions reflected in the BBC’s
financial statements have been applied to the purposes as intended and conform to the relevant
frameworks governing them

YES

We will comply with funding conditions as part of a separate funding agreement, e.g. grant funding
for the BBC World Service

YES

We will publish our response to Value for Money reviews conducted by the NAO or othercommissioned parties

YES

9. Guidance and best practice
The BBC has to have regard to general guidance concerning the management of the affairs of public bodies and generally accepted principles
of good corporate governance, where applicable and appropriate.
MeasureAchieved

We will audit our voluntary compliance with the UK Corporate Governance Code and principles of good
corporate governance based on a general aim of compliance with the Code wherever possible

YES – see Governance

Our Annual Report will set out the BBC’s performance against the Code; areas where the Code does not
apply to the BBC; areas where the Charter overrides the Code; and areas where the BBC does not comply

YES – see Governance

We will also publish an annual Equality Information Report, in compliance with the Public Sector
Equality Duty

YES – see Equality Information
ReportAn annual statement on licence fee collection will be audited by the NAO and laid before Parliament

YES

We will continue to comply with best practice in offering training on a range of issues such as antibribery, data protection and child protection

YES

10. General duties in relation to commercial activities.
The BBC’s commercial activities need to act in the public interest, engage with the public, and ensure openness and transparency. They must
not distort the market nor gain an unfair competitive advantage.
MeasureAchieved

The Fair Trading Committee will continue to: keep under review the BBC’s compliance with Ofcom’s
trading and separation requirements; commission an annual independent audit; review, consider andapprove the BBC’s transfer pricing methodologies; report progress in the BBC’s Annual Report; andreview the ongoing compliance of the commercial activities with the Four Commercial Criteria

YES – see Fair Trading report

We will abide by our published policy on material changes to Commercial Activities

YES – see Other Regulatory
Matters

Our complaints framework includes a procedure for complaints about a failure to meet any commercial
activities requirements

YES

We will publish forthcoming potential material changes to commercial services in the BBC’s Annual Plan,
subject to issues of commercial confidentiality

YES

We will carry out the commercial test for any proposed material change to our commercial activities,
and publish the proposed change once we have done so

YES – None

We will continue to train key staff on compliance with the Fair Trading rules

YES – see Fair Trading Report

We will continue to meet our publication and information provision obligations to Ofcom, detailing thefinancial performance of our commercial subsidiaries and setting out detailed methodologies for transfer
pricing within our group

YES – see Commercial Holdings
Annual Report and Group
Trading Manual

We will publish the number of upheld complaints about compliance with the commercial activities
requirements under the Charter and Agreement or in the Ofcom Operating Framework, and our
response to such complaints

YES – None

We will publish the number of Ofcom enforcement actions in relation to compliance with the Ofcom
Operating Framework in this area

YES – None

The Fair Trading Committee will report annually on its work in the Annual Report and Accounts

YES – see Fair Trading Report

162

Annual Report and Accounts 21/22

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Access services
Audio described
Audio described hours

Total hours

Actual for year (%)

Target for year (%)

2021/222020/212021/222021/222020/212021/222020/21

BBC One
BBC Two
BBC Three
BBC Four
CBBC
CBeebies
BBC Scotland

1,847
2,097
162
1,020
1,805
1,114
510

1,921
2,480

21.1%
24.0%
30.4%
33.2%
36.7%
22.8%
28.1%

22.0%
28.4%
36.3%
32.2%
26.8%
27.5%

20.0%
20.0%
20.0%
20.0%
20.0%
20.0%
20.0%

20.0%
20.0%

1,135
1,638
1,277
501

8,736
8,736
533
3,077
4,919
4,883
1,817

Linear total

8,556

8,952

32,702

Audio described programmes

BBC iPlayer*

Total programmes

Actual for year (%)

20.0%
20.0%
20.0%
20.0%

Target for year (%)

2021/222020/212021/222021/222020/212021/222020/21

12,124

9,772

72,661**

16.7%

17.1%

N/A

N/A

Sign interpreted
Sign interpreted hours

Total hours

Actual for year (%)

Target for year (%)

2021/222020/212021/222021/222020/212021/222020/21

BBC One
BBC Two
BBC Three
BBC Four
CBBC
CBeebies
BBC Scotland
BBC News

488
462
30
196
286
262
103
527

492
455

5.6%
5.3%
5.7%
6.4%
5.8%
5.4%
5.7%
6.0%

5.6%
5.2%
6.5%
5.1%
5.7%
5.5%
6.4%

5.0%
5.0%
5.0%
5.0%
5.0%
5.0%
5.0%
5.0%

5.0%
5.0%

204
261
271
101
556

8,736
8,736
533
3,077
4,919
4,883
1,817
8,736

Linear total

2,353

2,340

41,438Sign interpreted programmes

BBC iPlayer*

Total programmes

Actual for year (%)

5.0%
5.0%
5.0%
5.0%
5.0%

Target for year (%)

2021/222020/212021/222021/222020/212021/222020/21

6,219

3,376

72,661**

8.6%

5.9%

N/A

N/A

Subtitled
Subtitled hours

Total hours

Actual for year (%)

Target for year (%)

2021/222020/212021/222021/222020/212021/222020/21

BBC One
BBC Two
BBC Three
BBC Four
CBBC
CBeebies
BBC Scotland
BBC News
BBC Parliament

14,130
9,189
533
3,077
4,919
4,882
1,914
8,732
2,404

13,863
9,103

99.9%
100%
100%
100%
100%
100%
99.9%
100%
27.5%

99.9%
99.9%

100%
100%

100%
100%

3,124
5,083
4,771
2,457
8,732
1,780

14,146
9,191
533
3,077
4,919
4,883
1,916
8,736
8,736

100%
100%
100%
100%
100%
20.4%

100%
100%
100%
100%
100%
N/A

100%
100%
100%
100%
100%
N/A

Linear total

49,77948,91356,139Subtitled programmes

BBC iPlayer*

Total programmes

Actual for year (%)

Target for year (%)

2021/222020/212021/222021/222020/212021/222020/2167,87957,06991,004

74.6%

75.5%

N/A

N/A

Notes
* Figures are for the total number of programmes available on BBC iPlayer excluding S4C and World Service content For the five main broadcast channels, including nations and regionalvariants, 100% of content is subtitled, 20% audio-described and 5% signed This content including subtitles, audio description and signed versions is all made available on BBC iPlayer,
and we achieve the same levels for BBC Three programming BBC iPlayer aggregates those main broadcast channels and other channels for which lower levels of access services areprovided, so the overall figures for BBC iPlayer are at a lower level than the main broadcast channels** The total number of programmes here excludes audio described and signed versions of programmes These versions are included in the subtitled figures
Due to rounding, some totals may not correspond with the sum of the separate figures

Return to contents

Governance Report163Performance against public commitments
Contestability
Under the Charter and Agreement, the BBC must secure competition between BBC producers and external producers, whether independent
producers or not, for production of television, radio and online content. More information on contestability in television can be found in the TV
Supply Report, published alongside this report: downloads.bbc.co.uk/commissioning/site/bbc-commissioning-supply-report-202122.pdf.
Platform

Target to contest

Contested to dateCompletion date

Achieved

TV

100% of relevant hours

62%

31 December 2027

In progress

*

Radio

**

Online ***60% of relevant hours

55%

31 December 2022

In progress

100% of relevant spend

72%

31 December 2027

In progress

Notes* The Agreement requires the BBC to ensure that it secures competition for 100% of relevant television programmes by 31 December 2027 Our outturn is based on the number of hours
broadcast or provided on BBC iPlayer in 2021, taking into account commissioning decisions made up to 31 December 2021 The proportion contested to date has fallen when compared
to last year, this is due to major sporting events moving from 2020 to 2021 (e g the Olympics and Euros which are not contested) This meant last year’s figures were greater because of
their absence and balanced through to this year’s figures** The Agreement requires the BBC to ensure that for relevant radio programmes it secures competition for at least 60% of relevant broadcasting time by 31 December 2022 Our outturnis based on the number of hours broadcast in 2021/22, taking into account commissioning decisions made up to 31 March 2022*** The Agreement requires the BBC to secure competition for 100% of relevant online material by 31 December 2027 The BBC has defined relevant online material in a way that adheresto the provisions of the Agreement and has discussed this definition with Ofcom We measure online contestability by expenditure on content production of relevant online material
Our outturn is based on expenditure in 2021/22

Network radio supply
The following table shows the levels of all BBC Network radio hours from different suppliers.
Proportion of all eligible hours
produced by independent producers
for BBC Network Radio (%)

Radio 1

Proportion of all eligible hours
produced by BBC producers for
BBC Network Radio (%)

2021/222020/212021/222020/21

25.5

28.6

74.5

71.4

Radio 1Xtra

20.1

18.9

79.9

81.1

Radio 2

50.9

48.2

49.1

51.8

Radio 3

11.8

12.8

88.2

87.2

Radio 4

15.2

15.0

84.8

85.0

BBC 4 Extra

0.0

8.6

100

91.4

BBC Radio 5 live and 5 live sports extra

20.5

21.3

79.5

78.7

BBC 6 Music

36.5

30.4

63.5

69: .6

BBC Asian Network

25.2

14.0

74.8

86.0

28

25.9

72

74.1

Total

Notes
Eligible hours excludes Repeats, Simulcasts, Core News, Education/Social Action, Presentation, EBU Output, World Service
Information on our network television supply in 2021/22 is available in the TV Supply Report, published alongside this report downloads bbc co uk/commissioning/site/bbccommissioning-supply-report-202122 pdf

164

Annual Report and Accounts 21/22

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Distribution
Distribution of BBC content is key to delivering our mission and public purposes. The Charter requires the BBC to report on how it has madeits output and services available to the public. This section sets out our progress this year.

98.5%

99%

BBC iPlayer is available on

BBC Sounds is available on

Digital Terrestrial Television(DTT) coverage of
UK households

97.5%

AM/FM coverageof UK household

DAB coverage of UK households

98%

satellite availability
to UK households

20,000 >20,000>

types of device overalltypes of device overall

Note
The figures quoted for DTT and DAB relate to coverage for services carried on the BBC’s
multiplexes In addition nations and regions radio stations and a small number of HD
channels are made available via commercial multiplexes BBC iPlayer is available on over
420 platforms (groups of devices) and BBC Sounds is available on over 250 platforms(groups of devices)
The BBC distributes its content with the goal of providing its audiences with full andconvenient access to the services that are relevant to them In 2021/22 we have continued
to ensure that
– we provide effectively universal broadcast coverage of our TV and radio services,maintaining availability at normal levels throughout the Covid-19 pandemic;– the BBC’s video-on-demand (VOD) service, iPlayer, is available on more consumer
devices (from Smart TVs to games consoles and tablets) than any other VOD service
in the UK;– live and on-demand audio is widely available for audiences to access across anincreasing number of devices; and– we create innovative content that promotes our services, brands and talent withaudiences on popular social media platforms, such as Facebook, TikTok, Instagramand YouTube
During the year we completed the merger of two of our joint ventures, Freesat and Digital
UK, bringing together the management of terrestrial and satellite free-to-air platforms
and delivering both strategical alignment and savings

In August 2021 a major incident occurred at the Bilsdale transmitting station, with a fire
rendering the mast inoperable and the damage caused ultimately requiring it to be felled
Coverage of DTT (and to a lesser extent FM and DAB) in Teesside, North Yorkshire andCounty Durham was badly affected The BBC has worked closely with the transmission
network operator, Arqiva, and other broadcasters through Digital UK, on the planning andimplementation of temporary alternative arrangements to restore services to affectedviewers and listeners pending rebuild of a permanent 300m structure at the site
In Radio, in 2021 we added BBC Radio Cumbria, Guernsey and Jersey to the DAB platform,
and managed the closure of a number of medium wave transmitters for local and nations
radio services where these provided largely duplicative coverage
As well as widespread availability and maximising value for the licence fee payer, it iscritical that the ways in which BBC services and content are distributed support andprotect our public service mission The BBC’s Distribution Policy, published in June 2018
following a public consultation, set out seven conditions that form the basis under which
the BBC will distribute its UK public services It continues to guide our distributionagreements to ensure UK public service and creativity remains prominent and relevant in
an increasingly competitive and global market, and to ensure vital insights are fed back to
the BBC to help the organisation continue to improve its offer
2021 marked the roll-out of BBC One English Regions services in HD, arriving first to IP
platforms The BBC supported the launch of Sky’s new all IP TV and brought iPlayer toa host of new devices including Sony’s Playstation 5 The BBC was able to refresh its
branding and the iPlayer user interface across the entire TV landscape due to thecontinued support of the CE industry for BBC technical specifications In 2021 the BBC
has also been able to bring BBC Sounds to new audiences, such as Sonos, and offer more
pioneering news content built for voice assistants

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Governance Report165Performance against public commitments
BBC Public Service promotions
The Agreement between the BBC and the Secretary of State sets out that the BBC must ensure that the promotion of any output of a UK
Public Service or any such service in the UK Public Services focuses on output contributing substantially to the fulfilment of the mission andpromotion of the public purposes. The BBC must publish information on such promotion, including:a) The number of minutes of promotions in each UK Public Service;b) The time of day of such promotions; andc) Such other information it consider would be in the public interest to publish.
This table sets out the total minutes of promotional material broadcast on each UK Public Service by time period in 2021/22:
Morning

Daytime

Evening

Overnight

Total

BBC One

482

3,940

3,265

1,590

9,277

BBC Two

1,735

2,432

2,796

1,629

8,595

BBC Three (from Feb 2022)

N/A

N/A

229

190

420

BBC Four

N/A

N/A

2,244

1,222

3,466

CBBC

1,366

3,475

1,135

N/A

6,000

CBeebies

1,525

3,033

3

N/A

4,561

BBC News

552

2,382

1,744

3,793

8,440

3

239

2,559

9

2,810

Radio 1

1,688

3,277

1,324

331

6,620

Radio 1Xtra

1,037

2,495

1,457

198

5,187

Radio 2

1,383

2,766

1,383

1,235

6,768

BBC Scotland

Radio 3

684

1,814

1,108

0

3,605

Radio 4

1,529

3,008

2,430

312

7,279

BBC 4 Extra

1,801

2,414

1,736

1,776

7,727

BBC Radio 5 live

1,383

2,593

1,878

1,853

7,707

BBC 6 Music

1,284

2,618

642

247

4,792

BBC Asian Network

1,037

2,519

1,334

0

4,891

BBC Radio Scotland

1,560

2,739

832

0

5,131

BBC Radio Wales

1,456

3,796

2,080

468

7,800

BBC Radio Cymru

1,976

4,056

2,964

156

9,152

BBC Radio Ulster and BBC Radio Foyle

546

1248

1092 1,285 (as 5 live)

4,171

BBC Local Radio

N/A

N/A

N/A

6,498

N/A

Notes
Time periods are defined as morning, 6am – 11 59am; daytime, 12pm – 5 59pm; evening, 6pm – 10 59pm; overnight, 11pm – 5 59am Minutes of promotions on radio here do not include theservice trails for the programmes themselves; these figures are included in the following table The figure for BBC Local Radio is an average figure across all local radio stations in England
Promotions on BBC Parliament, BBC ALBA, BBC Radio 5 live sports extra and BBC Radio nan Gàidheal are not measured due to very low volume and frequency Quantitative data is notavailable for promotions on BBC Red Button or BBC Online

166

Annual Report and Accounts 21/22

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This table sets out the total minutes of promotion of each platform (i.e. TV, radio or online) promoted on each UK Public Service. ‘On Service’refers to minutes of self-promotional material, e.g. BBC One promoting BBC One, ‘TV and iPlayer’ refers to minutes of TV and iPlayer promoson the channel/service, and ‘Radio and Sounds’ refers to the minutes of promo for any radio station or BBC Sounds on that channel/service.
Radio &BBC Sounds

Other (brand,
corporate, PublicInformation Films)

On Service

TV &BBC iPlayer

BBC One

4,333

3,916

541

487

BBC Two

2,854

4,826

470

445

BBC Three

406

9

5

0

BBC Four

2,069

1,199

96

102

CBBC

5,744

250

0

0

CBeebies

4,375

186

0

0

BBC News

1,995

4,856

1,589

0

BBC Scotland

1,238

1,455

22

N/A

Radio 1

5,462

683

475

N/A

Radio 1Xtra

3,825

631

731

N/A

Radio 2

4,230

1,261

1,277

N/A

Radio 3

3,137

158

310

N/A

Radio 4

5,603

738

938

N/A

BBC 4 Extra

6,799

302

626

N/A

BBC Radio 5 live

5,213

1,012

1,482

N/A

BBC 6 Music

3,473

467

852

N/A

BBC Asian Network

3,887

430

574

N/A

BBC Radio Scotland

3,068

1,103

1,050

N/A

BBC Radio Wales

6,318

546

936

N/A

BBC Radio Cymru

7,321

0

1,830

N/A

BBC Radio Ulster and BBC Radio Foyle

1,443

923

520

N/A

BBC iPlayer

95%

0%

5%

N/A

Notes
Promotions on BBC Parliament, BBC ALBA, BBC Radio 5 live sports extra and BBC Radio nan Gàidheal are not measured due to very low volume and frequency Quantitative data is notavailable for promotions on BBC Local Radio or BBC Red Button BBC Radio Ulster and BBC Radio Foyle does not include 5 Live overnight figures
This year we have added an Other column for the total minutes of promotion on each platform promoted on each public service This includes trails such as the Our BBC brand film, theCovid-19 public information films, and corporate messages Also included is BBC Three from when it launched in February 2022 and BBC iPlayer which shows a proportion of pre rolls
impressions given to each service
Some BBC podcasts available through BBC Sounds and third-party platforms carry promotional material for other BBC podcast content Around eight podcasts per month are agreed
as priorities which we promote on other podcasts We select content which represents a range of and styles to promote the breadth of BBC audio output Promotional trails, each witha duration of 15-45 seconds, for these podcasts are produced and inserted into other podcasts, at the start, middle and/or end of the audio file The choice and placement of these trails
is at the discretion of the podcast producers, though it is predominantly pre or post-roll Some stations also trail their own content (e g Radio 4 promotes its content on Radio 4 podcasts)

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Governance Report

167

PERFORMANCEDATA PACKS
This section sets out audience performance this year,
including full statistical information for the Public
Purposes, plus detailed performance data by service
in Wales, Scotland, Northern Ireland and England.

BBC One’s Universe
168

Annual Report and Accounts 21/22

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Audience performance
1. To provide impartial news and information to help people to understand and engage with the world around them
Experience
SourceOverall BBC News reach
Number of UK adults (16+) who use BBC News services each week
BBC News reach by platform
BBC TV Network News and Current Affairs% of UK adults who watch BBC TV Network News and Current Affairs on average
per week
BBC Radio Network News and Current Affairs programmes% of UK adults who listen to news and current affairs programmes on BBC Network Radioon average per week
BBC News Online% of UK adults who use BBC News Online on average per week

Number of unique UK browsers accessing BBC News Online on average per week

2021/22

8 out of 10

2020/21

8 out of 10

2021/2256%

2020/2163%2021/2252%

2021/2234%

2020/2136%

2021/22

38 million

2020/2150 million

Compass by Ipsos
MORI 16+

BARB 16+ Reachbased on 3+ mins

RAJAR 16+, reachbased on15+mins~

Compass by Ipsos
MORI 16+
AT Internet~ Industry radio audience data is not available for 2020/21 owing to the suspension of RAJAR face-to-face fieldwork because of Covid-19 restrictions Fieldwork resumed in April 2021
with an updated methodology, meaning no direct comparison can be made with pre-pandemic figures

Perception% Effective% Ineffective

Source2021/2270%

15%Ipsos MORI 16+ *% of UK adults who think BBC News and Current Affairs is effective at
helping them understand what is happening in their part of the UK

2021/2260%

19%% of UK adults who think BBC News and Current Affairs is effective at
informing them about the day’s issues so they can make up their minds

2021/2263%

17%% of UK adults who think the BBC is effective at providing news andcurrent affairs that is impartial

2021/22

51%

25%% of UK adults who think the BBC is effective at providing news andcurrent affairs that is accurate

2021/2263%

18%% of UK adults who think the BBC is effective at providing news andcurrent affairs that is trustworthy

2021/2263%20%2021/2276%8%2021/2282%7%2021/2277%

7%

Delivery of the purpose% of UK adults who think BBC News and Current Affairs is effective at
helping them understand what is happening in the UK/world today

Quality of BBC News by platform% of weekly users who say BBC News on TV sets a high standard
for quality% of weekly users who say BBC News on Radio sets a high standard
for quality% of weekly users who say BBC News Online sets a high standard
for quality*

With the easing of Covid-19 restrictions, this survey was conducted face-to-face in 2021/22 The previous year’s survey in 2020/21 had to be undertaken via telephone/mobile becauseof the pandemic Because of the difference in method, the 2020/21 results are not directly comparable so are not repeated here

Weekly users’ rating of BBC News Online (mean score/10)
16+ UK weekly users

2021/22

8 out of 10

2020/21

8 out of 10

YouGov 16+

Delivery of the News purpose via iPlayer% of weekly users rating iPlayer as effective at helping the BBC todeliver the public purposes
News purpose: 16+ UK weekly users

News purpose: 16-34 UK weekly users% Effective% Ineffective

Source2021/2282%

7%

Ipsos MORI 16+

2020/2180%

9%2021/2279%

9%

2020/2178%

11%

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Governance Report169Performance data packs
Audience performance continued

BBC News in market context
Of all the news sources (TV, radio, newspaper, magazine, website, app orsocial media) which one source are you most likely to turn to
if you want impartial news coveragefor news you trust the mostif you want accurate news coverage% BBC% Next Nearest
Named

Source2021/2239%

9% (Sky News)

2020/2140%(ITV/Sky News
= 7% each)

Ipsos MORI 928
adults 18+ who
follow the news,
March 2022

2021/2248%

8% (Sky News)

2020/2149%(ITV/Sky News
= 7% each)2021/2249%

8% (Sky News)

2020/2152%(ITV/Sky News
= 7% each)

2. To support learning for people of all ages
Experience
SourceUsage of the BBC overall among under 16s
Under 16s pan-BBC reach% of under 16s who use BBC TV/iPlayer, Radio or Online on average per week
Under 16s pan-BBC time
Length of time under 16s spend with the BBC per head on average per week (hours:mins)
0-6 pan-BBC reach% of 0-6s who use BBC TV/iPlayer, radio or online on average per week
7-12 pan-BBC reach% of 7-12s who use BBC TV/iPlayer, radio or online on average per week
Usage of BBC Children’s/Education services among under 16s
Under 16s
% of under 16s who use BBC Children’s and Education content across TV/iPlayer or online
on average per week

2021/2273%

2020/2177%2021/22

04:33

2020/2105:00

2021/2277%

2020/2179%

2021/2267%

2020/2177%2021/2253%

2020/2159%

0-6s% of 0-6s who use BBC Children’s and Education content across TV/iPlayer or online
on average per week

2021/2272%

2020/2173%

7-12% of 7-12s who use BBC Children’s and Education content across TV/iPlayer or online
on average per week

2021/2246%

2020/2156%

Kids Cross-Media
Insight by Ipsos
MORI

Kids Cross-Media
Insight by Ipsos
MORI

Perception
Mean score/10

Source2021/22

7 out of 10

Ipsos MORI

2020/21

7 out of 10% Effective% Ineffective

Source2021/2260%

17%Ipsos MORI 16+*% of UK adults who think the BBC is effective at helping them learn newthings2021/2261%

18%% of UK adults who think the BBC is effective at exploring subjects thatthey would know less about otherwise

2021/2262%

17%

View of the BBC among under 16s
Perception of BBC by under 16s

Delivery of the purpose% of parents who think the BBC is effective at supporting children andteenagers with their learning*

With the easing of Covid-19 restrictions, this survey was conducted face-to-face in 2021/22 The previous year’s survey in 2020/21 had to be undertaken via telephone/mobile becauseof the pandemic Because of the difference in method, the 2020/21 results are not directly comparable so are not repeated here

170

Annual Report and Accounts 21/22

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BBC learning by content
Source% of responses rating BBC TV programmes they have watched as helping them to learnsomething new

Pulse by GfK 16+*2021/2272%

2020/2174%% of responses rating non-BBC TV programmes they have watched as helping them tolearn something new

2021/2258%

2020/2159%% of responses rating BBC radio programmes they have listened to as helping them tolearn something new

2021/2269%

2020/2170%% of responses rating non-BBC radio programmes they have listened to as helping themto learn something new

2021/2252%

2020/21

52%*

Pulse is a panel of c 20,000 UK nationally representative respondents Panellists take a daily survey rating BBC and non-BBC broadcast content they consumed yesterday
Figures shown are the average over the financial year across all content they have rated

BBC Bitesize
SourceExperience
Primary pupils% of primary school pupils who use Bitesize

DJS

2021/2264%

2020/2167%2021/2275%

2020/2177%2021/22

1.8 million

2020/212.7 million

2021/2282%

2020/2180%2021/2265%

2020/2157%% Effective% Ineffective% of weekly users rating iPlayer as effective at helping the BBC to deliver the
public purposes
Learning purpose: 16+ UK weekly users
2021/2282%

6%

2020/2180%

7%2021/2278%

10%

2020/2179%

11%

Secondary pupils% of secondary school pupils who use Bitesize

Number of unique UK browsers accessing Bitesize on average per week
Perception% of under 16 users who say Bitesize helps them understand their studies/learning more

% of secondary school users who say Bitesize helps them to achieve better grades

AT Internet

DJS

SourceDelivery of the Learning purpose via iPlayer

Learning purpose: 16-34 UK weekly users

Ipsos MORI 16+

3. To show the most creative, highest quality and distinctive output and services
Experience
SourceUsage of the BBC overall among adults
Pan-BBC reach% of UK adults who use BBC TV/iPlayer, Radio or Online on average per week
Pan-BBC time
Length of time UK adults spend with the BBC per head on average per week (hours:mins)

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2021/2290%

2020/2190%2021/22

17:30

2020/21

18:02

Compass by Ipsos
MORI 16+

Estimated from
BARB, BARB
Establishment
Survey, AT
Internet, RAJAR,
ONS 16+

Governance Report171Performance data packs
Audience performance continued
SourceUsage of the BBC by platform among adults
BBC TV% of UK adults in TV homes who watch BBC TV on average per week

2021/2273%

2020/2176%2021/2207:12

2020/2108:11

BBC Radio% of UK adults who listen to BBC Radio on average per week

2021/2262%

Length of time UK adults spend with BBC Radio on average per week (hours:mins)

2021/22

09:09

BBC Online% of UK adults who use BBC Online on average per week

2021/2261%

2020/2163%

Length of time UK adults in TV homes spend with BBC TV per head on average per week(hours:mins)

BARB 28-days asviewed 16+ Reachbased on 15+ mins

RAJAR 16+ Reachbased on 15+
mins~

Compass by Ipsos
MORI 16+~ Industry radio audience data is not available for 2020/21 owing to the suspension of RAJAR face-to-face fieldwork because of Covid-19 restrictions Fieldwork resumed in April 2021
with an updated methodology, meaning no direct comparison can be made with pre-pandemic figures

Perception% Effective% Ineffective

Source2021/2267%

14%

Ipsos MORI 16+*% of UK adults who think the BBC is effective at providing content/
services that set a high standard for creativity

2021/2261%

17%% of UK adults who think the BBC is effective at providing content/
services that are distinctive

2021/2261%

15%% of UK adults who think the BBC is effective at providing content/
services that set a high standard for originality

2021/2259%

17%% of UK adults who think the BBC is effective at providing content/
services that cater for a wide range of tastes

2021/2263%

16%

BBC quality and distinctiveness by platform
BBC TV/iPlayer programmes% of users who say BBC TV/iPlayer sets a high standard for quality

2021/2273%

10%% of users who say BBC TV/iPlayer is distinctive

2021/2269%

10%% of users who say BBC TV/iPlayer sets a high standard for originality

2021/2268%

12%

BBC Radio/podcasts% of users who say BBC Radio/podcasts sets a high standard for quality

2021/2271%

8%% of users who say BBC Radio/podcasts is distinctive

2021/2268%

9%% of users who say BBC Radio/podcasts sets a high standard fororiginality

2021/22

67%

10%

BBC Online% of users who say BBC Online sets a high standard for quality

2021/2267%

10%% of users who say BBC Online is distinctive

2021/2263%

11%% of users who say BBC Online sets a high standard for originality

2021/2262%

11%

Delivery of the purpose% of UK adults who think the BBC is effective at providing content/
services that set a high standard for quality*

With the easing of Covid-19 restrictions, this survey was conducted face-to-face in 2021/22 The previous year’s survey in 2020/21 had to be undertaken via telephone/mobile becauseof the pandemic Because of the difference in method, the 2020/21 results are not directly comparable so are not repeated here

172

Annual Report and Accounts 21/22

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BBC distinctiveness by content
Source% of responses rating BBC TV programmes as different% of responses rating non-BBC TV programmes as different

2021/2277%

2020/2178%2021/2274%

2020/2175%% of responses rating BBC radio programmes as content they wouldn’t hear anywhereelse

2021/2278%

2020/2179%% of responses rating non-BBC radio programmes as content they wouldn’t hear
anywhere else

2021/2263%

2020/21

64%*

Pulse by GfK 16+*

Pulse is a panel of c 20,000 UK nationally representative respondents Panellists take a daily survey rating BBC and non-BBC content they consumed yesterday Figures shown are theaverage over the financial year across all content they have rated

BBC iPlayer
SourceExperience
Average weekly accounts signing into BBC iPlayer
Accounts overall

2021/2212.1 million

2020/2110.7 million

Under 35 year olds’ accounts

2021/22

3.8 million

2020/21

3.2 million

2021/2244.5 million

2020/2139.7 million

2021/2201:00

2020/2100:53

2021/22

01:04

2020/2100:59

2021/2216%

2020/2113%2021/2243%

2020/2134%

BBC iPlayer streaming time
Average weekly hours played through iPlayer
BBC iPlayer time per population head
Length of time UK population spends with iPlayer on average per week per population
head (hours:mins)
Length of time UK 16-34s spend with iPlayer on average per week per 16-34 population
head (hours:mins)% of all BBC TV viewing that is delivered by BBC iPlayer
All

16-34

AT Internet/BBC
Account data

AT Internet/Sky
catch up data

Deduplicatedviewer mins
modelled from
BARB/AT Internet

BARB/AT Internet/
Sky catch-up data
2020/21 restatedbased on changes
to calculation
methodSourcePerception
Weekly users’ rating of BBC iPlayer (mean score/10)
16+ UK weekly users

YouGov 16+

16-34 UK weekly users

Return to contents

2021/22

8 out of 10

2020/21

8 out of 10

2021/22

8 out of 10

2020/21

8 out of 10

Governance Report173Performance data packs
Audience performance continued% Effective% Ineffective

2021/2281%

10%% of weekly users rating iPlayer as effective at helping the BBC todeliver the mission
Mission overall: 16+ UK weekly users

2020/2181%

10%Mission overall: 16-34 UK weekly users

2021/2277%

15%

2020/2178%

14%% of weekly users rating iPlayer as effective at helping the BBC todeliver the public purposes
Purposes overall: 16+ UK weekly users

2021/2283%

7%

2020/2181%

9%

Purposes overall: 16-34 UK weekly users

2021/2279%

9%

2020/2179%12%2021/2284%

6%

2020/2182%7%2021/2280%

9%2020/2180%

10%Delivery of the mission, purposes overall and Creativity purpose via
iPlayer

Creativity purpose: 16+ UK weekly users

Creativity purpose: 16-34 UK weekly users

SourceIpsos MORI 16+

Ipsos MORI 16+

BBC Sounds
Experience
SourceAverage weekly accounts using BBC Sounds
All

16-34
BBC Sounds streaming time
Average weekly hours played through Sounds

2021/22

3.8m

2020/213.5m

2021/22570k

2020/21572k

2021/2213.2m

2020/2110.9m

AT Internet/BBC
Account data

AT Internet/BBC
Account data

Perception
SourceWeekly users’ rating of BBC Sounds (mean score/10)
16+ UK weekly users

2021/22

8 out of 10

2020/21

8 out of 10

YouGov 16+

4. To reflect, represent and serve the diverse communities of all the United Kingdom’s nations and regions and support the creative
economyPerception: UK adults% Effective% Ineffective

Source2021/2254%

24%

Ipsos MORI 16+*% of UK adults who think the BBC is effective at providing content/
services relevant to them2021/2258%

21%% of UK adults who think the BBC is effective at reflecting the part of the
UK they live in

2021/2254%

22%% of UK adults who think the BBC is effective at catering for the part of
the UK they live in

2021/2255%

21%% of UK adults who think the BBC has programmes, content and services
that raise awareness of the different ways of life and perspectives in UK
society2021/2259%

19%

Delivery of the purpose% of UK adults who think the BBC is effective at reflecting people likethem*With the easing of Covid-19 restrictions, this survey was conducted face-to-face in 2021/22 The previous year’s survey in 2020/21 had to be undertaken via telephone/mobile becauseof the pandemic Because of the difference in method, the 2020/21 results are not directly comparable so are not repeated here

174

Annual Report and Accounts 21/22

Return to contents

Delivery of the Reflect/represent/serve purpose via iPlayer% of weekly users rating iPlayer as effective at helping the BBC todeliver the public purposes
Reflect/represent/serve purpose: 16+ UK weekly users

2021/2277%

8%

2020/2175%

8%

Reflect/represent/serve purpose: 16-34 UK weekly users

2021/2274%

10%

2020/2175%

10%Ipsos MORI 16+

By audience group
Experience

Pan-BBC reach% of each audiencegroup who use BBC
TV/iPlayer, radio or
online on average
per week
BBC TV% of each audiencegroup in TV homes
who watch BBC TV
per head on average
per week
Length of time eachaudience group in
TV homes spends
with BBC TV per
head on average per
week (hours:mins)
BBC Radio% of each audiencegroup who listen to
BBC Radio on
average per week
Length of time eachaudience groupspend with BBC
Radio on average
per week(hours:mins)
BBC Online% of each audiencegroup who use BBC
Online on average
per week

Male
16+

Female
16+

16-34

35-54

55+

ABC1
16+

C2DE
16+

White
16+

Black, Asianandminority
Disabled
ethnic 16+ 16+

2021/22

90%

90%

81%

89%

98%

92%

88%

92%

77%

91%

90%

2020/21

91%

89%

80%

90%

98%

92%

87%

92%

77%

91%

90%

2021/22

71%

75%

46%

74%

91%

74%

71%

75%

57%

81%

72%

2020/21

74%

78%

51%

77%

92%

76%

75%

78%

61%

85%

74%

2021/22

06:48

07:35

02:00

05:17

12:21

07:01

07:27

07:43

03:35

11:09

06:41

2020/21

07:41

08:39

02:27

06:01

13:57

08:02

08:22

08:46

03:57

12:34

07:35

2021/22

64%

60%

47%

60%

75%

68%

55%

65%

45%

62%

65%

2021/22

09:22

08:58

03:38

07:34

14:44

09:56

08:12

09:57

04:02

09:53

09:41

2021/22

68%

53%

62%

64%

56%

69%

49%

61%

58%

53%

63%

2020/21

69%

56%

64%

70%

56%

72%

52%

63%

62%

57%

64%

Not
Disabled
16+

SourceCompassby Ipsos
MORI
16+

BARB
28-daysas viewed
16+
Reachbased on15+ mins

RAJAR
16+
Reach
based on15+
mins~

Compassby Ipsos
MORI
16+~ Industry radio audience data is not available for 2020/21 owing to the suspension of RAJAR face-to-face fieldwork because of Covid-19 restrictions Fieldwork resumed in April 2021
with an updated methodology, meaning no direct comparison can be made with pre-pandemic figures

Return to contents

Governance Report

175Performance data packs
Audience performance continued
Perception
Male
16+

Female
16+

16-34

35-54

55+

ABC1
16+

C2DE
16+

White
16+

Black, Asianandminority
Disabled
ethnic 16+ 16+

66%

70%

64%

67%

72%

75%

59%

69%

62%

64%

69%

2021/22
16%
Ineffective

12%

13%

16%

13%

12%

16%

14%

17%

17%

14%

% of each audience 2021/22 51%
group who think the Effective
BBC is effective at
2021/2226%
reflecting people like Ineffective
them

57%

50%

51%

59%

58%

48%

54%

47%

46%

55%

22%

24%

26%

22%

23%

25%

24%

27%

28%

24%

65%

69%

64%

63%

72%

75%

57%

68%

57%

63%

68%

2021/22
16%
Ineffective

12%

14%

16%

13%

11%

17%

14%

16%

16%

14%

% of each audiencegroup who think the
BBC informs,
educates andentertains people in
the UK/them% of each audiencegroup who think the
BBC is effective at
providing content/
services that set ahigh standard for
quality*2021/22
Effective

2021/22
Effective

Not
Disabled
16+

Source
Ipsos
MORI
16+*

With the easing of Covid-19 restrictions, this survey was conducted face-to-face in 2021/22 The previous year’s survey in 2020/21 had to be undertaken via telephone/mobile becauseof the pandemic Because of the difference in method, the 2020/21 results are not directly comparable so are not repeated here

By nation and region
Scotland adults 16+
Experience
SourcePan-BBC reach% of adults in Scotland who use BBC TV/iPlayer, radio or online on average per week
BBC TV% of adults in TV homes in Scotland who watch BBC TV on average per week

Length of time adults in TV homes in Scotland spend with BBC TV per head on average
per week (hours:mins)
BBC Radio% of adults in Scotland who listen to BBC Radio on average per week
Length of time adults in Scotland spent with BBC Radio per head on average per week(hours:mins)
BBC Online% of adults in Scotland who use BBC Online on average per week
BBC TV News for Scotland% of adults in TV homes in Scotland who view dedicated news services on BBC TV on
average per week

2021/2288%

2020/2188%2021/2275%

2020/2177%2021/2208:15

2020/2108:442021/2258%2021/2207:57

2021/2261%

2020/2166%

2021/2244%

2020/2148%

Compass by Ipsos
MORI 16+

BARB 28-days asviewed 16+ Basedon 15+ mins

RAJAR 16+ Reachbased on 15+
mins~

Compass by Ipsos
MORI 16+

BARB 28-days as
broadcast 16+
Reach based on 3+mins~ Industry radio audience data is not available for 2020/21 owing to the suspension of RAJAR face-to-face fieldwork because of Covid-19 restrictions Fieldwork resumed in April 2021
with an updated methodology, meaning no direct comparison can be made with pre-pandemic figures

176

Annual Report and Accounts 21/22

Return to contentsPerception% Effective% Ineffective

SourceIpsos MORI 16+*% of adults in Scotland who think the BBC informs, educates andentertains people in the UK/them2021/2266%

10%% of adults in Scotland who think the BBC is effective at reflecting people
like them2021/2255%

25%% of adults in Scotland who think the BBC is effective at providing
content/services that set a high standard for quality

2021/22

66%

15%

*

With the easing of Covid-19 restrictions, this survey was conducted face-to-face in 2021/22 The previous year’s survey in 2020/21 had to be undertaken via telephone/mobile becauseof the pandemic Because of the difference in method, the 2020/21 results are not directly comparable so are not repeated here

Wales adults 16+
Experience
SourcePan-BBC reach% of adults in Wales who use BBC TV/iPlayer, radio or online on average per week
BBC TV% of adults in TV homes in Wales who watch BBC TV on average per week

Length of time adults in TV homes in Wales spend with BBC TV per head on average per
week (hours:mins)
BBC Radio% of adults in Wales who listen to BBC Radio on average per week
Length of time adults in Wales spend with BBC Radio per head on average per week(hours:mins)
BBC Online% of adults in Wales who use BBC Online on average per week
BBC TV News for Wales% of adults in TV homes in Wales who view dedicated news services on BBC TV on
average per week

Compass by Ipsos
MORI 16+2021/2290%

2020/2192%2021/2272%

2020/2176%2021/2207:45

2020/21

0 9:152021/2270%2021/2212:11

2021/2266%

2020/2168%

2021/2237%

2020/2145%% Effective% Ineffective

SourceIpsos MORI 16+*

BARB 28-days asviewed 16+ Reachbased on 15+ mins

RAJAR 16+ Reachbased on 15+
mins~

Compass by Ipsos
MORI 16+

BARB 28-days as
broadcast 16+
Reach based on 3+
mins

Perception% of adults in Wales who think the BBC informs, educates and entertains
people in the UK/them2021/2271%

14%% of adults in Wales who think the BBC is effective at reflecting people
like them2021/2250%

26%% of adults in Wales who think the BBC is effective at providing content/
services that set a high standard for quality

2021/2268%

12%~ Industry radio audience data is not available for 2020/21 owing to the suspension of RAJAR face-to-face fieldwork because of Covid-19 restrictions Fieldwork resumed in April 2021
with an updated methodology, meaning no direct comparison can be made with pre-pandemic figures* With the easing of Covid-19 restrictions, this survey was conducted face-to-face in 2021/22 The previous year’s survey in 2020/21 had to be undertaken via telephone/mobile becauseof the pandemic Because of the difference in method, the 2020/21 results are not directly comparable so are not repeated here

Return to contents

Governance Report177Performance data packs
Audience performance continued
Northern Ireland adults 16+
Experience
SourcePan-BBC reach% of adults in Northern Ireland who use BBC TV/iPlayer, radio or online on average per
week
BBC TV% of adults in TV homes in Northern Ireland who watch BBC TV on average per week

Length of time adults in TV homes in Northern Ireland spend with BBC TV per head on
average per week (hours:mins)
BBC Radio% of adults in Northern Ireland who listen to BBC Radio on average per week
Length of time adults in Northern Ireland spend with BBC Radio per head on average per
week (hours:mins)
BBC Online% of adults in Northern Ireland who use BBC Online on average per week
BBC TV News for Northern Ireland% of adults in TV homes in Northern Ireland who view dedicated news services on BBC TV
on average per week

2021/2291%

2020/2188%2021/2273%

2020/2176%2021/22

06:37

2020/2107:33

2021/2258%2021/2207:07

2021/2259%

2020/2156%2021/2248%

2020/2153%% Effective% Ineffective

SourceIpsos MORI 16+*

Compass by Ipsos
MORI 16+

BARB 28-days asviewed 16+ Reachbased on 15+ mins

RAJAR 16+ Reachbased on 15+
mins~

Compass by Ipsos
MORI 16+

BARB 28-days as
broadcast, 16+
Reach based on 3+
mins

Perception% of adults in Northern Ireland who think the BBC informs, educates andentertains people in the UK/them2021/2267%

8%% of adults in Northern Ireland who think the BBC is effective atreflecting people like them2021/2257%

16%% of adults in Northern Ireland who think the BBC is effective at providing
content/services that set a high standard for quality

2021/2267%

10%~ Industry radio audience data is not available for 2020/21 owing to the suspension of RAJAR face-to-face fieldwork because of Covid-19 restrictions Fieldwork resumed in April 2021
with an updated methodology, meaning no direct comparison can be made with pre-pandemic figures

178

Annual Report and Accounts 21/22

Return to contents

England adults 16+
Experience

Pan-BBC reach% who use BBC TV/
iPlayer, radio or online on
average per week
BBC TV% in TV homes who
watch BBC TV on average
per week
Length of time those inTV homes spend with
BBC TV per head on
average per week(hours:mins)
BBC Radio% who listen to BBC
Radio on average per
week
Length of time spent withBBC Radio per head on
average per week(hours:mins)
BBC Online% who use BBC Online on
average per week
BBC TV News forEnglish regions% in TV homes who view
dedicated news services
for the Nation/region on
BBC TV on average perweek

England 16+

North of England
16+

Midlands 16+

South of England
16+

London 16+

2021/22

90%

91%

90%

94%

86%

2020/21

90%

90%

89%

95%

87%

2021/22

73%

72%

73%

77%

69%

2020/21

76%

76%

76%

79%

71%

2021/22

07:05

07:12

07:09

08:00

05:58

2020/21

08:05

08:27

07:56

09:03

06:47

2021/22

62%

59%

65%

72%

54%

2021/22

09:10

08:28

09:47

11:43

07:02

2021/22

60%

58%

55%

63%

67%

2020/21

62%

58%

59%

64%

70%

2021/22

35%

37%

35%

39%

29%

2020/21

41%

44%

41%

46%

34%

SourceCompass by Ipsos
MORI 16+

BARB 28-days asviewed 16+
Reach based on
15+ mins

RAJAR 16+
Reach based on
15+ mins~

Compass by Ipsos
MORI 16+

BARB 28-days as
broadcast 16+
Reach based on
3+ mins~ Industry radio audience data is not available for 2020/21 owing to the suspension of RAJAR face-to-face fieldwork because of Covid-19 restrictions Fieldwork resumed in April 2021
with an updated methodology, meaning no direct comparison can be made with pre-pandemic figures

Perception
England 16+

North of England
16+

Midlands 16+

South of England
16+

London 16+

Source2021/22
Effective

68%

65%

69%

68%

72%

Ipsos MORI 16+*2021/22
Ineffective

14%

16%

15%

13%

12%

% who think the BBC iseffective at reflecting
people like them2021/22
Effective

54%

54%

52%

54%

55%

2021/22
Ineffective

24%

23%

25%

23%

24%

% who think the BBC iseffective at providing
content/services that set
a high standard for
quality2021/22
Effective

67%

65%

65%

69%

72%

2021/22
Ineffective

14%

14%

16%

13%

12%

% who think the BBC
informs, educates andentertains people in theUK/them*With the easing of Covid-19 restrictions, this survey was conducted face-to-face in 2021/22 The previous year’s survey in 2020/21 had to be undertaken via telephone/mobile becauseof the pandemic Because of the difference in method, the 2020/21 results are not directly comparable so are not repeated here

Return to contents

Governance Report179Performance data packs
Audience performance continued
5. To reflect the United Kingdom, its culture and values to the world
Perception
Delivery of the purpose% of UK adults who think that the BBC is effective at reflecting the UK to
the world*

2021/22% Effective% Ineffective

Source63%

14%

Ipsos MORI 16+*

With the easing of Covid-19 restrictions, this survey was conducted face-to-face in 2021/22 The previous year’s survey in 2020/21 had to be undertaken via telephone/mobile becauseof the pandemic Because of the difference in method, the 2020/21 results are not directly comparable so are not repeated here

180

Annual Report and Accounts 21/22

Return to contentsPerformance against 2021/22 audience targets
Performance against 2021/22 audience targets
Ensure delivery of value to audiences overall

Accelerate activity central to continued and future delivery ofvalue to audiences

The reach of the BBC% of UK adults 16+ who use BBC TV/iPlayer,
Radio or Online on average per week

Signed-in reach of BBC iPlayer
Average weekly accounts signing into
BBC iPlayer
Accounts overall

Source Compass by Ipsos MORI

A valued habit with the BBC% of UK adults 16+ who use the BBC for 5+days on average per week
Source Compass by Ipsos MORI

% of UK adults 16+ who use the BBC for 5+hours on average per week
Source Compass by Ipsos MORI

% of UK adults 16+ who use two or more
BBC modes on average per week
Source Compass by Ipsos MORI

90%
Target 85-90%

72%
Target 65-70%

62
71%

%

Target 55-60%

Target 65-70%

Maintain focus on key audience challenges
Young adults

The reach of the BBC% of UK 16-34s who use BBC TV/iPlayer,
Radio or Online on average per week
Source Compass by Ipsos MORI

Personal relevance
UK 16-34s’ rating of ‘the BBC is for me’ (meanscore out of 10)
Source Kantar Media

Under 16s

The reach of the BBC% of UK under 16s who use BBC TV/iPlayer,
Radio or Online on average per week
Source Kids Cross-Media Insight by Ipsos MORI

The reach of BBC Children’s/Education
services% of UK under 16s who use BBC Children’s/
Education services on average per week
Source Kids Cross-Media Insight by Ipsos MORI

Source AT Internet/BBC Account data

Under 35 accounts
Source AT Internet/BBC Account data

81

Source Deduplicated viewer mins modelled from
BARB/AT Internet

Rating of BBC iPlayer
Weekly users’ rating of BBC iPlayer(mean score out of 10)
UK adults 16+ weekly users
UK 16-34 weekly users
Source YouGov

Target 6/10

73%

Target 70-75%

53%Target 50-55%

3.8m
01:00h:mTarget 1 hour

8 out of 10
Target 8 out of 10

8 out of 10
3.8m
Target 8 out of 10

Target 75-80%

6/10

Target 12-12.5m

Target 3.5-4m

BBC iPlayer time spent per head per week
Average weekly time spent per head per week

Source YouGov

%

12.1m

Signed-in reach of BBC Sounds
Average weekly accounts signing into
BBC Sounds
Accounts overall
Source AT Internet/BBC Account data

Under 35 accounts
Source AT Internet/BBC Account data

Target 3.8-4.1m

0.57m
34%
Target 0.6m+

Reach of BBC News Online% who use BBC News Online on average
per week
UK adults 16+
Source Compass by Ipsos MORI

UK 16-34s
Source Compass by Ipsos MORI

Target 30%+

33%
Target 30%+

BARB-only data quoted on pages 169 to 181 covers the entirety of 2021/22 and is therefore based on audiences in TV-owning households and covers TV set viewing only, meaning that
iPlayer viewing on other devices or pre- or post-28 days of the linear broadcast is not included

Return to contents

Governance Report181Performance data packs
Performance by service
Television performance by service
Network television

Content (£m)
We spent a total of£1,717 million on these
services in 2021/22*

Reach (%)
UK population
who use the service
on average per week

Time spent
watching a channel
each week (hh:mm)
Length of time theaverage viewer spenteach week with theserviceCosts per user hour
How much it costs todeliver each service
for each hour used

07:13

8p

BBC One is our flagship service and the UK’s
most popular television channel. It unites andinspires the nation with high-quality
programmes across a range of genres that
includes news and current affairs, drama,
comedy, entertainment and factual.

£1,212m 61%
2020/21: £924m

2020/21: 63%

2020/21: 07:43

BBC Two is a mixed-genre channel with
programmes of depth and substance. It
includes the greatest amount and range ofknowledge-building programming on theBBC, complemented by distinctive comedy,
drama and arts programming.

£327m

38%

03:02

9p

2020/21: £261m

2020/21: 42%

2020/21: 03:10

2020/21: 6p

BBC Four aims to be British television’s mostintellectually and culturally enriching channel,
offering an ambitious range of UK andinternational arts, music, culture and factual
programmes.

£22m

10%

01:41

4p

2020/21: £29m

2020/21: 12%

2020/21: 01:49

2020/21: 4p

The CBBC channel offers a distinctive mixedschedule for 6-12 year olds, with mainly UK
programmes served in a stimulating, creativeand enjoyable environment.

£68m

2%

02:16

33p

2020/21: £58m

2020/21: 3%

2020/21: 02:15

2020/21: 22p

CBeebies provides a mix of high-quality,
mostly UK-produced, programmes designed
to encourage learning through play in aconsistently safe environment for children
under six.

£30m

5%

03:35

5p

2020/21: £25m

2020/21: 5%

2020/21: 04:15

2020/21: 3p

The BBC News Channel is a 24-hour impartial
and independent news service offering
breaking news, analysis and insight. It provides
fast and comprehensive coverage of local, UK
and international events as they unfold.

£57m

10%

03:14

5p

2020/21: £59m

2020/21: 12%

2020/21: 03:26

2020/21: 4p

BBC Parliament is the UK’s only channel
dedicated to politics. It shows debates andcommittees from Westminster, Holyrood,
Stormont, Cardiff Bay and Strasbourg as wellas political programmes from across the UK.

£1m

1%

01:32

3p

2020/21: £2m

2020/21: 1%

2020/21: 01:38

2020/21: 5p

2020/21: 6p* BBC Three moved from online to a linear channel in February 2022, and has incurred £22m of television spend up to 31 March 2022
Reach definition 15+ minutes consecutive for all services and audiences in TV-owning households aged 4+
Sources BARB (28 days as viewed) (TV reach and time per viewer – all channels include their simulcast HD channel where applicable)
N B This BARB data is for the entirety of 2021/22 and therefore measures TV set viewing only within 28 days of the linear broadcast, meaning that iPlayer viewing on other devices or
pre-broadcast or post-28 days is not as yet included in any of the reach and time figures iPlayer viewing is growing
Cost per user hour data includes viewing on the TV set and other devices
CBBC among its target audience of 6-12 year olds reach was 8% and time spent per viewer was 02 26 (based on 15+ min reach) Based on 3+ minute reach, reach was 12% of 6-12 year olds
and time spent per viewer was 01 46
CBeebies among its target audience of 0 -6 year olds (measured as children aged 4-6 and housepersons with children aged 0 -3) reach was 28% and time spent per viewer was 03 59 (basedon 15+ min reach) Based on 3+ minute reach, reach was 37% of 0-6 year olds and time spent per viewer was 02 59
As noted above these BARB figures for CBBC and CBeebies measures TV set viewing only within 28 days of the linear broadcast, meaning that iPlayer viewing on other devices or
pre-broadcast or post-28 days is not as yet included in any of the reach and time figures iPlayer viewing is sizable for children’s services
Three-minute reach for BBC News Channel and BBC Parliament – in line with industry standards – would be 13% and 1%, respectively (15% and 2% among 16+ population)

182

Annual Report and Accounts 21/22

Return to contents

Radio performance by service
Network radio

Content (£m)
We spent a total of£287 million onthese services in
2021/22

Reach (%)
UK population
who use the service
on average per week

Time spent listening
to a service eachweek (hh:mm)
Length of time theaverage listenerspent each weekwith the service

Costs per user hour
How much it costs todeliver each service
for each hour used

BBC Radio 1 broadcasts a distinctive mix of newmusic and entertainment for 15-29 year olds, aswell as providing tailored news, documentaries
and advice campaigns for young adults.

£36m

15%

06:29

1p

BBC Radio 1Xtra plays the best in contemporary
black music, with a strong emphasis ondelivering high-quality live music and supporting
new artists.

£9m

1%

04:05

5p

BBC Radio 2 broadcasts a unique mix of music
and speech programmes covering a diverse mixof live pop and rock, comedy, documentaries andreligious output, as well as running social action
campaigns to over 14 million listeners.

£47m

26%

11:10

1p

BBC Radio 3 centres on classical music, aroundwhich it provides a broad spectrum of jazz, worldmusic, arts programmes, religion and drama.
There is a strong emphasis on musicalperformance across the UK.

£35m

4%

07:34

4p

BBC Radio 4 is a mixed-speech radio station,offering in-depth news and current affairs and awide range of other speech programmes
including drama, readings, comedy, factual andmagazine programmes.

£85m

19%

11:21

1p

The digital-only network is the principal outlet
for the BBC’s archive of speech entertainment,
including comedy, drama and readings.

£3m

4%

07:23

0.4p

BBC Radio 5 live broadcasts continuous news
and live sports coverage, bringing major news
stories and sports events to its listeners as they
happen, and providing context throughwide-ranging analysis and discussion.

£50m

10%

05:53

3p

BBC Radio 5 live sports extra brings a greater
choice of live action to sports fans by extending
live coverage of various sporting events.

£3m

2%

02:53

1p

BBC 6 Music is a digital radio station thatentertains lovers of popular music with a service
that celebrates the alternative spirit of popular
music from the 60s to the present day,complemented by music news anddocumentaries.

£12m

5%

09:56

1p

BBC Asian Network offers speech and music
appealing to British Asians, with a focus on news
and current affairs. It broadcasts mainly inEnglish, but does offer some programmes inother languages.

£7m

1%

05:03

6p

2020/21: £36m

2020/21: £8m

2020/21: £47m

2020/21: £34m

2020/21: £83m

2020/21: £3m

2020/21: £44m

2020/21: £3m

2020/21: £12m

2020/21: £7m

Reach definition 15+ minutes for all services and audiences aged 15+
Sources RAJAR (Radio reach and time per listener)
Radio 1 among 15-29 year olds reach was 24% and time spent per listener was 06 12
Radio 1Xtra among 15-24 year olds reach was 3% and time spent per listener was 03 48
Radio 2 among 35+ year olds reach was 32% and time spent per listener was 12 02
Asian Network among Asians under 35 reach was 8% and time spent per listener was 03 27 Ethnicity definitions in RAJAR Asian = White and Asian, Indian, Pakistani,
Bangladeshi, any other Asian backgroundIndustry radio audience data is not available for 2020/21 owing to the suspension of RAJAR face-to-face fieldwork because of Covid-19 restrictions Fieldwork resumed in April 2021
with an updated methodology, meaning no direct comparison can be made with pre-pandemic figures

Return to contents

Governance Report183Performance data packs
Performance by service continued
Online performance by service

BBC Online comprises the BBC’s portfolio of
online products on desktop, connected TV,
mobile and tablet, including news, sport andweather; our children’s services CBBC and
CBeebies; and Knowledge and Learning – as well
as IP-delivered TV and radio services, with bothlive and on-demand programmes available on
BBC iPlayer.

Content (£m)
We spent a total of£247 million onthese services in
2021/22

Reach (%)
UK population who
use the service on
average per week

£247m

61%

2020/21: £236m

2020/21: 63%

Consumption
Average weekly
minutes viewed by
16-34sReach (%)
UK 16-34s who use
the service on
average per week

Time spent using
the service eachweek (hh:mm)
Length of time theaverage 16-34
viewer spent per
week with theservice

112,151,179*

6%

02:11

2020/21: 121,062,446

2020/21: 6%

2020/21: 02:07

Source Ipsos MORI UK adults 16+

BBC Three is constantly innovating to provoke
thought and to entertain audiences from 16 year
olds to 30-somethings with original comedy,
drama and factual programming that celebrates
new British talent.

BBC Three linear channel launched towards the end of the financial year and will be reported in next year’s Annual Report
Source BARB, Ipsos MORI On-platform consumption 2020/21 restated based on changes to calculation method* Deduplicated viewer minutes based on BARB/AT Internet

184

Annual Report and Accounts 21/22

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The BBC in Wales
Estimated income from each nation
These numbers are estimated as figures for each nation have been calculated by applying the proportion of licenced premises to the total
number of licences in force. The exact number of licences in force varies on a daily basis. The number of licenced premises are different to thenumber of licences in force as, in some cases, a premises may need more than one licence. Figures exclude concessionary licences for thoseliving in residential care.

Estimated income
UK
Wales

2022
£m

2021
£m

3,800
190

3,750
187

The fee for a standard household TV licence is £159.00. The licence fee income received contributes towards programmes made across thewhole of the UK and the world. These programmes are consumed in each nation in addition to the nation’s local services outlined below.
Expenditure by service
Direct and indirect spend relating to programmes produced in the nation.
2022
£m

2021
£m

Network content
TV (inc. Sport and Children’s)Radio
Online

57
3
4

52
3
1

Total network spend

64

56

Local content
TV – BBC One
TV – BBC Two
Radio WalesRadio Cymru
Online & Red Button

30
5
14
13
11

20
3
14
14
12

Total local spend

73

63

National Orchestra of Wales
S4C
Development

5
24
1

5
21
1

Distribution

21

22

Total

188

168

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Governance Report185

Performance data packs
The BBC in Wales continued
Performance by Service
Network Television

Content (£m)
We spent a total of£91m on these
services in 2021/22^

Reach (%)
Wales population
who use the service
on average per week

Time spent
watching a channel
each week (h:m)
Length of time theaverage viewer spenteach week with thechannelBBC One is our flagship service and the UK’s most popular
television channel. It unites and inspires the nation with highquality programmes across a range of genres which includes news
and current affairs, drama, comedy, entertainment and factual.

£76m

61%

07:54

2020/21: £60m

2020/21: 65%

2020/21: 08:47

BBC Two is a mixed-genre channel with programmes of depth andsubstance. It includes the greatest amount and range ofknowledge-building programming on the BBC, complemented by
distinctive comedy, drama and arts programming.

£10m

39%

03:22

2020/21: £11m

2020/21: 43%

2020/21: 03:30

BBC Four aims to be British television’s most intellectually andculturally enriching channel, offering an ambitious range of UK
and international arts, music, culture and factual programmes.

£1m

10%

~01:372020/21: £2m

2020/21: 12%

2020/21: ~01:42

The CBBC channel offers a distinctive mixed schedule for 6-12
year-olds, with mainly UK programmes served in a stimulating,creative and enjoyable environment.

£3m

2%

*

2020/21: £2m

2020/21: 3%

2020/21: *CBeebies provides a mix of high-quality, mostly UK-produced,
programmes designed to encourage learning through play in aconsistently safe environment for children under six.

£1m

3%

*

2020/21: –2020/21: 4%

2020/21: *^ BBC Three linear channel launched in February 2022, and has incurred £1m of television spend in Wales up to 31 March 2022
Reach definition 15+ minutes consecutive for all services and audiences in TV-owning households aged 4+
Sources BARB (28 days as viewed) (TV reach and time per viewer – all channels include their simulcast HD channel where applicable)
N B This BARB data is for the entirety of 2021/22 and therefore measures TV set viewing only within 28 days of the linear broadcast, meaning that iPlayer viewing on other devices or
pre-broadcast or post-28 days is not as yet included in any of the reach and time figures iPlayer viewing is growing* Sample size for time per user too low to report~ Lower sample size may be responsible for greater variability in the data
News

Content (£m)
We spent a total of£0m on these
services in 2021/22

Reach (%)
Wales population
who use the service
on average per week

Time spent
watching a channel
each week (h:m)
Length of time theaverage viewer spenteach week with thechannelThe BBC News Channel is a 24-hour impartial and independent
news service offering breaking news, analysis and insight. It
provides fast and comprehensive coverage of local, UK andinternational events as they unfold.

–10%~03:302020/21: –2020/21: 12%

2020/21: ~03:35

BBC Parliament is the UK’s only channel dedicated to politics. It
shows debates and committees from Westminster, Holyrood,
Stormont, Cardiff Bay and Strasbourg as well as politicalprogrammes from across the UK.

–

1%

*

2020/21: –2020/21: 1%

2020/21: *Reach definition 15+ minutes for all services and audiences in TV-owning households aged 4+
Source BARB (28 days as viewed) (TV reach and time per viewer)
Three-minute reach for BBC News Channel and BBC Parliament – in line with industry standards – would be 13% and 2%, respectively (15% and 2% among 16+ population)* Sample size for time per user too low to report~ Lower sample size may be responsible for greater variability in the data

186

Annual Report and Accounts 21/22

Return to contents

Network Radio

Content (£m)
We spent a total of£3m on these
services in 2021/22

Reach (%)
Wales population
who use the service
on average per week

Time spent listening
to a service eachweek (h:m)
Length of time theaverage user spenteach week with theservice

BBC Radio 1 broadcasts a distinctive mix of new music andentertainment for 15-29 year olds as well as providing tailored
news, documentaries and advice campaigns for young adults.

–

20%

07:39

BBC Radio 1Xtra plays the best in contemporary black music, witha strong emphasis on delivering high-quality live music andsupporting new artists.

–

1%~05:07

BBC Radio 2 broadcasts a unique mix of music and speechprogrammes covering a diverse mix of live pop and rock, comedy,
documentaries and religious output, as well as running social
action campaigns to over 14 million listeners.

–

36%

12:02

BBC Radio 3 centres on classical music, around which it provides abroad spectrum of jazz, world music, arts programmes, religion
and drama. There is a strong emphasis on musical performanceacross the UK.

£2m

4%

07:28

BBC Radio 4 is a mixed-speech radio station, offering in-depth
news and current affairs and a wide range of other speechprogrammes including drama, readings, comedy, factual andmagazine programmes.

£1m

18%

13:18

The digital-only network is the principal outlet for the BBC’sarchive of speech entertainment, including comedy, drama andreadings.

–

4%

09:49

BBC Radio 5 live broadcasts continuous news and live sports
coverage, bringing major news stories and sports events to its
listeners as they happen, and providing context through wideranging analysis and discussion.

–

8%

05:39

BBC Radio 5 live sports extra brings a greater choice of live action
to sports fans by extending live coverage of various sporting
events.

–

2%

12:13

BBC 6 Music is a digital radio station that entertains lovers of
popular music with a service that celebrates the alternative spiritof popular music from the 60s to the present day, complemented
by music news and documentaries.

–

5%

12:30

BBC Asian Network offers speech and music appealing to British
Asians, with a focus on news and current affairs. It broadcasts
mainly in English, but does offer some programmes in otherlanguages.

–

0.2%

*

2020/21: –2020/21: –2020/21: –2020/21: £2m

2020/21: £1m

2020/21: –2020/21: –2020/21: –2020/21: –2020/21: –Reach definition 15+ minutes for all services and audiences aged 15+
Source RAJAR (Radio reach and time per listener; data based on total survey area – TSA)Radio 1 among 15-29 year olds reach was 34% and time spent was 05 43
Radio 1Xtra among 15-24 year olds reach was 2% and time spent per user too low to report
Radio 2 among 35+ year olds reach was 42% and time spent was 13 00* Sample size for time per user too low to report~ Lower sample size may be responsible for greater variability in the data
Industry radio audience data is not available for 2020/21 owing to the suspension of RAJAR face-to-face fieldwork because of Covid-19 restrictions Fieldwork resumed in April 2021
with an updated methodology, meaning no direct comparison can be made with pre-pandemic figures
OnlineBBC Online comprises the BBC’s portfolio of online products on
desktop, connected TV, mobile and tablet, including news, sport
and weather; our children’s services CBBC and CBeebies; andKnowledge & Learning – as well as IP delivered TV and radio
services, with both live and on-demand programmes available on
BBC iPlayer.

Content (£m)
We spent a total of£15m on these
services in 2021/22

Reach (%)
Wales population
who use the service
on average per week

£15m

66%

2020/21: £13m

2020/21: 68%

Source Ipsos MORI Wales adults 16+

Return to contents

Governance Report

187Performance data packs
The BBC in Wales continued
The BBC in Wales

Content (£m)
We spent a total of£27m on these
services in 2021/22

Reach (%)
Wales population
who use the service
on average per week

Time spent watchingor listening to aservice each week(h:m)
Length of time theaverage viewer or
listener spent eachweek with the service

Costs per user hour(p)
How much it costs todeliver each service
to individual users

BBC Radio Wales is a speech-led service for
adults, which offers a wide range of genres andreflects the issues, events, culture and interestsof the people of Wales.

£14m

14%

07:47

9p

BBC Radio Cymru is a speech and music radio
service for Welsh speakers, which offers a wide
range of genres and reflects the issues, events,
culture and interests of the people of Wales.

£13m

22%

16:17

12p

2020/21: £14m

2020/21: £14m

Reach definition 15+ minutes for all services and audiences aged 15+
Sources RAJAR (Radio reach and time per listener; data based on total survey area – TSA)
BBC Radio Cymru RAJAR data (reach and time per listener) based on “Understand Welsh” BBC Radio Cymru reaches 6% of the overall 16+ population in Wales who listen for 12 59 a week
on average
Industry radio audience data is not available for 2020/21 owing to the suspension of RAJAR face-to-face fieldwork because of Covid-19 restrictions Fieldwork resumed in April 2021
with an updated methodology, meaning no direct comparison can be made with pre-pandemic figures

Local opt-out hours^ (including repeats) on BBC One and BBC Two
2022
Hours

2021
Hours

Drama, Comedy, Entertainment, Music & Arts
Daily, Weekly News and Current Affairs
Sport & Leisure
Education, Factual & Religion
Children’s

63
367
155
165
–

46
429
111
212
4

Total

750

802

2022
Hours

2021
Hours

Drama, Comedy, Entertainment, Music & Arts*
Daily, Weekly News and Current Affairs
Sport & Leisure
Education, Factual & Religion

173
295
152
11

154
256
175
5

Total

631

590

^ Television content commissioned specifically for audiences in the nation

S4C*

*

This represents the television programmes commissioned, produced and funded by BBC Wales and supplied to S4C (excluding programmes commissioned directly by S4C from otherproducers) The total of hours for 2022 include 101 hours of repeats (2021 113 hours) This includes repeats where BBC Wales has incurred a charge associated with the transmission of
the programmes

BBC Radio Wales
2022
Hours

2021
Hours

News and Current Affairs
General

2,217
5,022

2,240
5,118

Total

7,239

7,358

2022
Hours

2021
Hours

News and Current Affairs
General

1,515
6,153

1,439
6,258

Total

7,668

7,697

2022
Number

2021
Number

876

936

2022
Number

2021
Number

1,086

1,157

BBC Radio Cymru

Headcount
Average headcount reflects those individuals employed to directly support the service produced in Wales

Average number of persons employed in the year
Average headcount of individuals based in Wales across all services including support functions

Average number of persons employed in the year
188

Annual Report and Accounts 21/22

Return to contents

The BBC in Scotland
Estimated income from each nation
These numbers are estimated as figures for each nation have been calculated by applying the proportion of licenced premises to the total
number of licences in force. The exact number of licences in force varies on a daily basis. The number of licenced premises are different to thenumber of licences in force as, in some cases, a premises may need more than one licence. Figures exclude concessionary licences for thoseliving in residential care.

Estimated income
UK
Scotland

2022
£m

2021
£m

3,800
311

3,750
309

The fee for a standard household TV licence is £159.00. The licence fee income received contributes towards programmes made across thewhole of the UK and the world. These programmes are consumed in each nation in addition to the nation’s local services outlined below.
Expenditure by service
Direct and indirect spend relating to programmes produced in the nation.
2022
£m

2021
£m

Network content
TV (inc. Sport and Children’s)Radio
Online

68
3
4

42
3
5

Total network spend

75

50

Local content
TV – BBC One
TV – BBC ALBA
TV – BBC SCOTLAND
Radio Scotland
Radio nan Gàidheal
Online & Red Button

34
9
37
24
4
10

28
9
34
23
4
10

Total local spend

118

108

National Orchestra
Development

5
8

5
8

Distribution

35

37

Total

241

208

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Governance Report

189Performance data packs
The BBC in Scotland continued
Performance by Service
Network Television

Content (£m)
We spent a total of£102m on these
services in 2021/22^

Reach (%)
Scotland population
who use the service
on average per week

Time spent
watching a channel
each week (h:m)
Length of time theaverage viewer spenteach week with thechannelBBC One is our flagship service and the UK’s most popular
television channel. It unites and inspires the nation with highquality programmes across a range of genres which includes news
and current affairs, drama, comedy, entertainment and factual.

£71m

64%

07:55

2020/21: £51m

2020/21: 65%

2020/21: 07:59

BBC Two is a mixed-genre channel with programmes of depth andsubstance. It includes the greatest amount and range ofknowledge-building programming on the BBC, complemented by
distinctive comedy, drama and arts programming.

£19m

42%

03:04

2020/21: £13m

2020/21: 44%

2020/21: 03:08

BBC Four aims to be British television’s most intellectually andculturally enriching channel, offering an ambitious range of UK
and international arts, music, culture and factual programmes.

£1m

9%

~01:42

2020/21: £3m

2020/21: 10%

2020/21: ~01:44

The CBBC channel offers a distinctive mixed schedule for 6-12
year-olds, with mainly UK programmes served in a stimulating,creative and enjoyable environment.

£5m

1%

*

2020/21: £1m

2020/21: 1%

2020/21: *CBeebies provides a mix of high-quality, mostly UK-produced,
programmes designed to encourage learning through play in aconsistently safe environment for children under six.

£6m

4%

*

2020/21: £2m

2020/21: 4%

2020/21: *^ BBC Three linear channel launched in February 2022, and has incurred £0m of television spend in Scotland up to 31 March 2022
Reach definition 15+ minutes consecutive for all services and audiences in TV-owning households aged 4+
Sources BARB (28 days as viewed) (TV reach and time per viewer – all channels include their simulcast HD channel where applicable)
N B This BARB data is for the entirety of 2021/22 and therefore measures TV set viewing only within 28 days of the linear broadcast, meaning that iPlayer viewing on other devices or
pre-broadcast or post-28 days is not as yet included in any of the reach and time figures iPlayer viewing is growing* Sample size for time per user too low to report~ Lower sample size may be responsible for greater variability in the data
News

Content (£m)
We spent a total of£0m on these
services in 21/22

Reach (%)
Scotland population
who use the service
on average per week

Time spent
watching a channel
each week(h m) Length of time
the average viewer
spent each weekwith the channel

The BBC News Channel is a 24-hour impartial and independent
news service offering breaking news, analysis and insight. It
provides fast and comprehensive coverage of local, UK andinternational events as they unfold.

–

10%

02:54

2020/21: –2020/21: 12%

2020/21: 03:44

BBC Parliament is the UK’s only channel dedicated to politics. It
shows debates and committees from Westminster, Holyrood,
Stormont, Cardiff Bay and Strasbourg as well as politicalprogrammes from across the UK.

–

1%

*

2020/21: –2020/21: 1%

2020/21: *Reach definition 15+ minutes for all services and audiences in TV-owning households aged 4+
Source BARB (28 days as viewed) (TV reach and time per viewer)
Three-minute reach for BBC News Channel and BBC Parliament – in line with industry standards – would be 14% and 2%, respectively (16% and 2% among 16+ population)* Sample size for time per user too low to report

190

Annual Report and Accounts 21/22

Return to contents

Network Radio

Content (£m)
We spent a total of£3m on these
services in 2021/22
in Scotland

Reach (%)
Scotland population
who use the service
on average per week

Time spent listening
to a service eachweek (h:m)
Length of time theaverage user spenteach week with theservice

BBC Radio 1 broadcasts a distinctive mix of new music andentertainment for 15-29 year-olds as well as providing tailored
news, documentaries and advice campaigns for young adults.

–

14%

06:17

BBC Radio 1Xtra plays the best in contemporary black music, witha strong emphasis on delivering high-quality live music andsupporting new artists.

–

1%

*

BBC Radio 2 broadcasts a unique mix of music and speechprogrammes covering a diverse mix of live pop and rock, comedy,
documentaries and religious output, as well as running social
action campaigns to over 14 million listeners.

–

27%

10:37

BBC Radio 3 centres on classical music, around which it provides abroad spectrum of jazz, world music, arts programmes, religion
and drama. There is a strong emphasis on musical performanceacross the UK.

£2m

3%

08:50

BBC Radio 4 is a mixed-speech radio station, offering in-depth
news and current affairs and a wide range of other speechprogrammes including drama, readings, comedy, factual andmagazine programmes.

£1m

13%

10:41

The digital-only network is the principal outlet for the BBC’sarchive of speech entertainment, including comedy, drama andreadings.

–

3%

06:19

BBC Radio 5 live broadcasts continuous news and live sports
coverage, bringing major news stories and sports events to its
listeners as they happen, and providing context through wideranging analysis and discussion.

–

8%

05:34

BBC Radio 5 live sports extra brings a greater choice of live action
to sports fans by extending live coverage of various sporting
events.

–

2%

02:17

BBC 6 Music is a digital radio station that entertains lovers of
popular music with a service that celebrates the alternative spiritof popular music from the 60s to the present day, complemented
by music news and documentaries.

–

5%

09:44

BBC Asian Network offers speech and music appealing to British
Asians, with a focus on news and current affairs. It broadcasts
mainly in English, but does offer some programmes in otherlanguages.

–

1%

*

2020/21: –2020/21: –2020/21: –2020/21: £2m

2020/21: £1m

2020/21: –2020/21: –2020/21: –2020/21: –2020/21: –Reach definition 15+ minutes for all services and audiences aged 15+
Source RAJAR (Radio reach and time per listener; data based on total survey area – TSA)Radio 1 among 15-29 year olds reach was 24% and time spent was 07 19
Radio 1Xtra among 15-24 year olds reach was 2% and time spent per user too low to report
Radio 2 among 35+ year olds reach was 32% and time spent was 11 12* Sample size for time per user too low to reportIndustry radio audience data is not available for 2020/21 owing to the suspension of RAJAR face-to-face fieldwork because of Covid-19 restrictions Fieldwork resumed in April 2021
with an updated methodology, meaning no direct comparison can be made with pre-pandemic figures
OnlineBBC Online comprises the BBC’s portfolio of online products on
desktop, connected TV, mobile and tablet, including news, sport
and weather; our children’s services CBBC and CBeebies; andKnowledge & Learning – as well as IP delivered TV and radio
services, with both live and on-demand programmes available on
BBC iPlayer.

Content (£m)
We spent a total of£14m on these
services in 2021/22

Reach (%)
Scotland population
who use the service on
average per week

£14m

61%

2020/21: £15m

2020/21: 66%

Source Compass by Ipsos MORI Scotland adults 16+

Return to contents

Governance Report191Performance data packs
The BBC in Scotland continued
The BBC in Scotland

Content (£m)
We spent a total of£74m on these
services in 21/22

Reach (%)
Scotland population
who use the service
on average per week

Time spent
watching or
listening to aservice each week(h:m)
Length of time theaverage viewer or
listener spent eachweek with theserviceCosts per user hour(p)
How much it costs todeliver each service
to individual users

The BBC Scotland Channel features a mix of
documentary, popular factual andentertainment, comedy, drama, news andcurrent affairs and sport programming reflecting
Scottish life and culture.

£37m

18%

01:24

21p

2020/21: £34m

2020/21: 21%

2020/21: 01:36

2020/21: 15p**

BBC ALBA offers, to Gaelic speakers andlearners, a distinctive range of originatedprogramming that reflects and supports Gaelic
culture, identity and heritage.

£9m

55%

03:28

25p

2020/21: £9m

2020/21: 59%

2020/21: 03:34

2020/21: ~BBC Radio Scotland is a speech-led service for
adults. Mixed genre programming reflects thediversity of Scottish culture and covers national
and international issues and events relevant tolisteners across the country.

£24m

20%

06:10

8p

2020/21: £23m

2020/21: *2020/21: *2020/21: *BBC Radio nan Gàidheal offers a comprehensive
speech and music radio service for Gaelic
speakers. Mixed genre programming reflects thediversity of Scottish culture and, from a Gaelic
perspective and through the medium of the
Gaelic language, covers national andinternational issues and events relevant tolisteners across the country.

£4m

56%

07:39

23p

2020/21: £4m

2020/21: 58%

2020/21: 07:41

2020/21: 23p

BBC Scotland Reach definition 15+ minutes consecutive and audiences in TV-owning households aged 4+
Source BARB (28 days as viewed) (TV reach and time per viewer – all channels include their simulcast HD channel where applicable)
N B This BARB data is for the entirety of 2021/22 and therefore measures TV set viewing only within 28 days of the linear broadcast, meaning that iPlayer viewing on other devices or
pre-broadcast or post-28 days is not as yet included in any of the reach and time figures iPlayer viewing is growing Cost per user hour data includes viewing on the TV set and otherdevices** The Cost per User Hour figures in the table are based on viewing to the BBC Scotland channel, BBC Scotland content on iPlayer and BBC Scotland channel content shown on other
BBC TV channels For viewing to the BBC Scotland channel and BBC Scotland content on iPlayer only, the Cost per User Hour of the channel is 36p (29p in 2020/21)
BBC ALBA TRP PRAEG Panel based on Gaelic community 16+ in Scotland BBC ALBA reaches 7% of the overall 16+ population in Scotland who use the service for 01 59 a week on
average (source TNS Kantar Scottish Opinion Survey based on adults aged 16+ in Scotland)
BBC nan Gàidheal TRP PRAEG Panel based on Gaelic community 16+ in Scotland
BBC Radio Scotland Reach definition 15+ minutes and audiences aged 15+ RAJAR (Radio reach and time per listener; data based on total survey area – TSA)
* Industry radio audience data is not available for 2020/21 owing to the suspension of RAJAR face-to-face fieldwork because of Covid-19 restrictions Fieldwork resumed in April 2021
with an updated methodology, meaning no direct comparison can be made with pre-pandemic figures~ Suspension of face-to-face fieldwork in 2020/21 due to Covid-19 restrictions means there is incomplete date on usage of BBC ALBA and so cost per user hour is not available for2020/21

Local opt-out hours^ (including repeats) on BBC One
2022
Hours

2021
Hours

Drama, Comedy, Entertainment, Music & Arts
Daily, Weekly News and Current Affairs
Sport & Leisure
Education, Factual & Religion

52
424
130
73

32
408
78
97

Total

679

615

^ Television content commissioned specifically for audiences in the nation

192

Annual Report and Accounts 21/22

Return to contents

BBC Scotland
2022
Hours

2021
Hours

456
397
207
868

481
668
226
1,094

1,928

2,469

2022
Hours

2021
Hours

Drama, Comedy, Entertainment, Music & Arts
Daily, Weekly News and Current Affairs
Sport & Leisure
Education, Factual & Religion
Children’s

592
215
221
1,008
545

664
194
187
998
556

Total

2,581

2,599

2022
Hours

2021
Hours

News and Current Affairs
General

3,084
5,522

3,167
5,369

Total

8,606

8,536

2022
Hours

2021
Hours

News and Current Affairs
General

637
4,303

609
4,329

Total

4,940

4,938

2022
Number

2021
Number

962

1,009

2022
Number

2021
Number

1,225

1,306

Drama, Comedy, Entertainment, Music & Arts
Daily, Weekly News and Current Affairs
Sport & Leisure
Education, Factual & Religion
Total
BBC ALBA

Radio Scotland

Radio nan Gàidheal

Headcount
Average headcount reflects those individuals employed to directly support the service produced in Scotland

Average number of persons employed in the year
Average headcount of individuals based in Scotland across all services including support functions

Average number of persons employed in the year

Return to contents

Governance Report193Performance data packs
The BBC in Northern Ireland
Estimated income from each nation
These numbers are estimated as figures for each nation have been calculated by applying the proportion of licenced premises to the total
number of licences in force. The exact number of licences in force varies on a daily basis. The number of licenced premises are different to thenumber of licences in force as, in some cases, a premises may need more than one licence. Figures exclude concessionary licences for thoseliving in residential care.

Estimated income
UK
Northern Ireland

2022
£m

2021
£m

3,800
99

3,750
99

The fee for a standard household TV licence is £159.00. The licence fee income received contributes towards programmes made across thewhole of the UK and the world. These programmes are consumed in each nation in addition to the nation’s local services outlined below.
Expenditure by service
Direct and indirect spend relating to programmes produced in the nation.
2022
£m

2021
£m

Network content
TV (inc. Sport and Children’s)Radio
Online

25
2
2

18
2
1

Total network spend

29

21

Local content
TV – BBC One
TV – BBC Two
Radio Ulster/Foyle
Online & Red Button

25
4
18
8

21
3
18
8

Total local spend

55

50

Distribution

12

12

Total

96

83

194

Annual Report and Accounts 21/22

Return to contentsPerformance by Service
Network Television

Content (£m)
We spent a total of£53m on these
services in 2021/22^

Reach (%)
Northern Ireland
population who use
the service on
average per week

Time spent
watching a channel
each week (h:m)
Length of time theaverage viewer spenteach week with thechannelBBC One is our flagship service and the UK’s most popular
television channel. It unites and inspires the nation with highquality programmes across a range of genres which includes news
and current affairs, drama, comedy, entertainment and factual.

£39m

62%

06:42

2020/21: £33m

2020/21: 65%

2020/21: 07:18

BBC Two is a mixed-genre channel with programmes of depth andsubstance. It includes the greatest amount and range ofknowledge-building programming on the BBC, complemented by
distinctive comedy, drama and arts programming.

£7m

35%

02:39

2020/21: £7m

2020/21: 39%

2020/21: 02:44

BBC Four aims to be British television’s most intellectually andculturally enriching channel, offering an ambitious range of UK
and international arts, music, culture and factual programmes.

£1m

8%

~01:372020/21: £1m

2020/21: 11%

2020/21: ~01:39

The CBBC channel offers a distinctive mixed schedule for 6-12
year-olds, with mainly UK programmes served in a stimulating,creative and enjoyable environment.

£6m

2%

*

2020/21: £1m

2020/21: 2%

2020/21: *CBeebies provides a mix of high-quality, mostly UK-produced,
programmes designed to encourage learning through play in aconsistently safe environment for children under six.

–

5%

*

2020/21: –2020/21: 6%

2020/21: *^ BBC Three linear channel launched in February 2022, and has incurred £1m of television spend in Northern Ireland up to 31 March 2022
Reach definition 15+ minutes consecutive for all services and audiences in TV-owning households aged 4+
Sources BARB (28 days as viewed) (TV reach and time per viewer – all channels include their simulcast HD channel where applicable)
N B This BARB data is for the entirety of 2021/22 and therefore measures TV set viewing only within 28 days of the linear broadcast, meaning that iPlayer viewing on other devices or
pre-broadcast or post-28 days is not as yet included in any of the reach and time figures iPlayer viewing is growing* Sample size for time per user too low to report~ Lower sample size may be responsible for greater variability in the data
News

Content (£m)
We spent a total of£0m on these
services in 2021/22

Reach (%)
Northern Ireland
population who use
the service on
average per week

Time spent
watching a channel
each week (h:m)
Length of time theaverage viewer spenteach week with thechannelThe BBC News Channel is a 24-hour impartial and independent
news service offering breaking news, analysis and insight. It
provides fast and comprehensive coverage of local, UK andinternational events as they unfold.

–

7%

*

2020/21: –2020/21: 8%

2020/21: ~02:17

BBC Parliament is the UK’s only channel dedicated to politics. It
shows debates and committees from Westminster, Holyrood,
Stormont, Cardiff Bay and Strasbourg as well as politicalprogrammes from across the UK.

–

1%

*

2020/21: –2020/21: 1%

2020/21: *Reach definition 15+ minutes for all services and audiences in TV-owning households aged 4+
Source BARB (28 days as viewed) (TV reach and time per viewer)
Three-minute reach for BBC News Channel and BBC Parliament – in line with industry standards – would be 11% and 2%, respectively (13% and 2% among 16+ population)* Sample size for time per user too low to report~ Lower sample size may be responsible for greater variability in the data

Return to contents

Governance Report

195Performance data packs
The BBC in Northern Ireland continued
Network Radio

Content (£m)
We spent a total of£2m on these
services in 2021/22

Reach (%)
Northern Ireland
population who use
the service on
average per week

Time spent listening
to a service eachweek (h:m)
Length of time theaverage user spenteach week with theservice

BBC Radio 1 broadcasts a distinctive mix of new music andentertainment for 15-29 year-olds as well as providing tailored
news, documentaries and advice campaigns for young adults.

–

14%

03:50

BBC Radio 1Xtra plays the best in contemporary black music, witha strong emphasis on delivering high-quality live music andsupporting new artists.

–

0.4%

*

BBC Radio 2 broadcasts a unique mix of music and speechprogrammes covering a diverse mix of live pop and rock, comedy,
documentaries and religious output, as well as running social
action campaigns to over 14 million listeners.

–

15%

07:44

BBC Radio 3 centres on classical music, around which it provides abroad spectrum of jazz, world music, arts programmes, religion
and drama. There is a strong emphasis on musical performanceacross the UK.

£1m

2%

~02:41BBC Radio 4 is a mixed-speech radio station, offering in-depth
news and current affairs and a wide range of other speechprogrammes including drama, readings, comedy, factual andmagazine programmes.

£1m

10%

07:44

The digital-only network is the principal outlet for the BBC’sarchive of speech entertainment, including comedy, drama andreadings.

–

2%~07:26

BBC Radio 5 live broadcasts continuous news and live sports
coverage, bringing major news stories and sports events to its
listeners as they happen, and providing context through wideranging analysis and discussion.

–

10%

05:08

BBC Radio 5 live sports extra brings a greater choice of live action
to sports fans by extending live coverage of various sporting
events.

–2%~02:05

BBC 6 Music is a digital radio station that entertains lovers of
popular music with a service that celebrates the alternative spiritof popular music from the 60s to the present day, complemented
by music news and documentaries.

–

2%~05:56

BBC Asian Network offers speech and music appealing to British
Asians, with a focus on news and current affairs. It broadcasts
mainly in English, but does offer some programmes in otherlanguages.

–

2020/21: –2020/21: –2020/21: –2020/21: £1m

2020/21: £1m

2020/21: –2020/21: –2020/21: –2020/21: –0.04% *

2020/21: –Reach definition 15+ minutes for all services and audiences aged 15+
Source RAJAR (Radio reach and time per listener; data based on total survey area – TSA)Radio 1 among 15-29 year olds reach was 28% and time spent was ~03 14
Radio 1Xtra among 15-24 year olds reach was 0 3% and time spent per user too low to report
Radio 2 among 35+ year olds reach was 17% and time spent was 08 56* Sample size for time per user too low to report~ Lower sample size may be responsible for greater variability in the data
Industry radio audience data is not available for 2020/21 owing to the suspension of RAJAR face-to-face fieldwork because of Covid-19 restrictions Fieldwork resumed in April 2021
with an updated methodology, meaning no direct comparison can be made with pre-pandemic figures
OnlineBBC Online comprises the BBC’s portfolio of online products on
desktop, connected TV, mobile and tablet, including news, sport
and weather; our children’s services CBBC and CBeebies; andKnowledge & Learning – as well as IP delivered TV and radio
services, with both live and on-demand programmes available on
BBC iPlayer.
Source Ipsos MORI Northern Ireland adults 16+

196

Annual Report and Accounts 21/22

Return to contents

Content (£m)
We spent a total of£10m on these
services in 2021/22

Reach (%)
Northern Ireland
population who use
the service on
average per week

£10m

59%

2020/21: £9m

2020/21: 56%

The BBC in Northern Ireland

BBC Radio Ulster is a speech-led service,providing a mix of programmes that reflect
news, events and community life in all its
different aspects and diversity.

Content (£m)
We spent a total of£18m on these
services in 2021/22

Reach (%)
Northern Ireland
population who use
the service on
average per week

Time spent
watching or
listening to aservice each week(h:m)
Length of time theaverage viewer or
listener spent eachweek with theserviceCosts per user hour(p)
How much it costs todeliver each service
to individual users

£18m

34%

10:48

6p

2020/21: £18m

Reach definition 15+ minutes and audiences aged 15+ RAJAR (Radio reach and time per listener; data based on total survey area – TSA)
Industry radio audience data is not available for 2020/21 owing to the suspension of RAJAR face-to-face fieldwork because of Covid-19 restrictions Fieldwork resumed in April 2021
with an updated methodology, meaning no direct comparison can be made with pre-pandemic figures

Local opt-out hours^ (including repeats) on BBC One and BBC Two
2022
Hours

2021
Hours

Drama, Comedy, Entertainment, Music & Arts
Daily, Weekly News and Current Affairs
Sport & Leisure
Education, Factual & Religion

48
382
96
219

39
369
84
204

Total

745

696

2022
Hours

2021
Hours

News and Current Affairs
General

3,316
4,675

3,065
4,721

Total

7,991

7,786

2022
Number

2021
Number

609

628

2022
Number

2021
Number646

665^ Television content commissioned specifically for audiences in the nation

BBC Radio Foyle/Ulster

Headcount
Average headcount reflects those individuals employed to directly support the service produced in Northern Ireland

Average number of persons employed in the year
Average headcount of individuals based in Northern Ireland across all services including support functions

Average number of persons employed in the year

Return to contents

Governance Report197Performance data packs
The BBC in England
Estimated income from each nation
These numbers are estimated as figures for each nation have been calculated by applying the proportion of licenced premises to the total
number of licences in force. The exact number of licences in force varies on a daily basis. The number of licenced premises are different to thenumber of licences in force as, in some cases, a premises may need more than one licence. Figures exclude concessionary licences for thoseliving in residential care.

Estimated income
UK
England

2022
£m

2021
£m

3,800
3,186

3,750
3,142

The fee for a standard household TV licence is £159.00. The licence fee income received contributes towards programmes made across thewhole of the UK and the world. These programmes are consumed in each nation in addition to the nation’s local services outlined below.
Expenditure by service
Direct and indirect spend relating to programmes produced in the nation.
2022
£m

2021
£m

Network content
TV (inc. Sport and Childrens’)Radio
Online

1,327
273
188

1,003
265
173

Total network spend

1,788

1,441

Local content
TV – BBC One
English Regions
Online & Red Button

93
117
15

90
124
17

Total local spend

225

231

National Orchestra
Development

15
49

13
52

Distribution

117

120

2,194

1,857

Total

198

Annual Report and Accounts 21/22

Return to contentsPerformance by Service
Network Television

Content (£m)
We spent a total of£1,349m on these
services in 2021/22^

Reach (%)
England population
who use the service
on average per week

Time spent
watching a channel
each week (h:m)
Length of time theaverage viewer spenteach week with thechannelBBC One is our flagship service and the UK’s most popular
television channel. It unites and inspires the nation with highquality programmes across a range of genres which includes news
and current affairs, drama, comedy, entertainment and factual.

£985m 60%

07:07

2020/21: £733m

2020/21: 07:38

BBC Two is a mixed-genre channel with programmes of depth andsubstance. It includes the greatest amount and range ofknowledge-building programming on the BBC, complemented by
distinctive comedy, drama and arts programming.

£275m 38%

03:01

2020/21: £216m

2020/21: 42%

2020/21: 03:10

BBC Four aims to be British television’s most intellectually andculturally enriching channel, offering an ambitious range of UK
and international arts, music, culture and factual programmes.

£18m

10%

01:41

2020/21: £22m

2020/21: 13%

2020/21: 01:50

The CBBC channel offers a distinctive mixed schedule for 6-12
year-olds, with mainly UK programmes served in a stimulating,creative and enjoyable environment.

£48m

2%

02:14

2020/21: £45m

2020/21: 3%

2020/21: 02:15

CBeebies provides a mix of high-quality, mostly UK-produced,
programmes designed to encourage learning through play in aconsistently safe environment for children under six.

£23m

5%

03:32

2020/21: £23m

2020/21: 6%

2020/21: 04:10

2020/21: 63%^ BBC Three linear channel launched in February 2022, and has incurred £20m of television spend in England up to 31 March 2022
Reach definition 15+ minutes consecutive for all services and audiences in TV-owning households aged 4+
Sources BARB (28 days as viewed) (TV reach and time per viewer – all channels include their simulcast HD channel where applicable)
N B This BARB data is for the entirety of 2021/22 and therefore measures TV set viewing only within 28 days of the linear broadcast, meaning that iPlayer viewing on other devices or
pre-broadcast or post-28 days is not as yet included in any of the reach and time figures iPlayer viewing is growing
News

Content (£m)
We spent a total of£51m on these
services in 2021/22

Reach (%)
England population
who use the service
on average per week

Time spent
watching a channel
each week (h:m)
Length of time theaverage viewer spenteach week with thechannelThe BBC News Channel is a 24-hour impartial and independent
news service offering breaking news, analysis and insight. It
provides fast and comprehensive coverage of local, UK andinternational events as they unfold.

£50m

10%

03:16

2020/21: £52m

2020/21: 12%

2020/21: 03:25

BBC Parliament is the UK’s only channel dedicated to politics. It
shows debates and committees from Westminster, Holyrood,
Stormont, Cardiff Bay and Strasbourg as well as politicalprogrammes from across the UK.

£1m

1%

~01:362020/21: £2m

2020/21: 1%

2020/21: *Reach definition 15+ minutes for all services and audiences in TV-owning households aged 4+
Source BARB (28 days as viewed) (TV reach and time per viewer)
Three-minute reach for BBC News Channel and BBC Parliament – in line with industry standards – would be 13% and 1%, respectively (15% and 1% among 16+ population)* Sample size for time per user too low to report~ Lower sample size may be responsible for greater variability in the data

Return to contents

Governance Report

199

Performance data packs
The BBC in England continued
Network Radio

Content (£m)
We spent a total of£273m on these
services in 2021/22

Reach (%)
England population
who use the service
on average per week

Time spent listening
to a service eachweek (h:m)
Length of time theaverage user spenteach week with theservice

BBC Radio 1 broadcasts a distinctive mix of new music andentertainment for 15-29 year-olds as well as providing tailored
news, documentaries and advice campaigns for young adults.

£36m

14%

06:29

BBC Radio 1Xtra plays the best in contemporary black music,
with a strong emphasis on delivering high-quality live music andsupporting new artists.

£8m

2%

03:56

BBC Radio 2 broadcasts a unique mix of music and speechprogrammes covering a diverse mix of live pop and rock, comedy,
documentaries and religious output, as well as running social
action campaigns to over 14 million listeners.

£45m

26%

11:11

BBC Radio 3 centres on classical music, around which it provides
a broad spectrum of jazz, world music, arts programmes, religion
and drama. There is a strong emphasis on musical performanceacross the UK.

£31m

4%

07:38

BBC Radio 4 is a mixed-speech radio station, offering in-depth
news and current affairs and a wide range of other speechprogrammes including drama, readings, comedy, factual andmagazine programmes.

£79m

20%

11:22

The digital-only network is the principal outlet for the BBC’sarchive of speech entertainment, including comedy, drama andreadings.

£3m

4%

07:16

BBC Radio 5 live broadcasts continuous news and live sports
coverage, bringing major news stories and sports events to its
listeners as they happen, and providing context throughwide-ranging analysis and discussion.

£49m

11%

05:56

BBC Radio 5 live sports extra brings a greater choice of live
action to sports fans by extending live coverage of various
sporting events.

£3m

3%

02:57

BBC 6 Music is a digital radio station that entertains lovers of
popular music with a service that celebrates the alternative spiritof popular music from the 60s to the present day, complemented
by music news and documentaries.

£12m

5%

09:53

BBC Asian Network offers speech and music appealing to British
Asians, with a focus on news and current affairs. It broadcasts
mainly in English, but does offer some programmes in otherlanguages.

£7m

1%

05:15

2020/21: £36m

2020/21: £8m

2020/21: £47m

2020/21: £29m

2020/21: £77m

2020/21: £3m

2020/21: £43m

2020/21: £3m

2020/21: £12m

2020/21: £7m

Reach definition 15+ minutes for all services and audiences aged 15+
Source RAJAR (Radio reach and time per listener; data based on total survey area – TSA)Radio 1 among 15-29 year olds reach was 23% and time spent was 06 15
Radio 1Xtra among 15-24 year olds reach was 3% and time spent per user was 03 41
Radio 2 among 35+ year olds reach was 32% and time spent was 12 05
Industry radio audience data is not available for 2020/21 owing to the suspension of RAJAR face-to-face fieldwork because of Covid-19 restrictions Fieldwork resumed in April 2021 withan updated methodology, meaning no direct comparison can be made with pre-pandemic figures
OnlineContent (£m)
We spent a total of£203m on these
services in 2021/22

BBC Online comprises the BBC’s portfolio of online products on
desktop, connected TV, mobile and tablet, including news, sport
and weather; our children’s services CBBC and CBeebies; andKnowledge & Learning – as well as IP delivered TV and radio
services, with both live and on-demand programmes available on
BBC iPlayer.
Source Ipsos MORI England adults 16+

200

Annual Report and Accounts 21/22

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Reach (%)
England population
who use the service
on average per week

£203m 60%
2020/21: £190m

2020/21: 62%

The BBC in EnglandContent (£m)
We spent a total of£117m on these
services in 2021/22

BBC Local Radio is a primarily speech-based
service of news, information and debate, with astrong emphasis on interactivity.

Reach (%)
England population
who use the service
on average per week

£117m 15%

Time spent
watching or
listening to aservice each week(h:m)
Length of time theaverage viewer or
listener spent eachweek with theserviceCosts per user hour(p)
How much it costs todeliver each service
to individual users

06:36

5p

2020/21: £124m

Reach definition 15+ minutes and audiences aged 15+ RAJAR (Radio reach and time per listener; data based on total survey area – TSA)
Industry radio audience data is not available for 2020/21 owing to the suspension of RAJAR face-to-face fieldwork because of Covid-19 restrictions Fieldwork resumed in April 2021
with an updated methodology, meaning no direct comparison can be made with pre-pandemic figures

Local opt-out hours^ (including repeats) on BBC One
2022
Hours

2021
Hours

Drama, Comedy, Entertainment, Music & Arts
Daily, Weekly News and Current Affairs
Sport & Leisure
Education, Factual & Religion

1
3,707
19
34

–
3,605
11
20

Total

3,761

3,636

2022
Hours

2021
Hours

233,061

234,7202022
Number

2021
Number

2,308

2,550

2022
Number

2021
Number12,994

13,938^ Television content commissioned specifically for audiences in the nation

BBC English Regions

General
Headcount
Average headcount reflects those individuals employed to directly support the service produced in England

Average number of persons employed in the year
Average headcount of individuals based in England across all services including support functions

Average number of persons employed in the year

Return to contents

Governance Report201Performance data packs
Comptroller and Auditor General’s opinion on Nations Performance Data
Independent Assurance Report to the Board of the British Broadcasting
Corporation, acknowledging that Parliament also places reliance on theGroup Accounts and Report
I have conducted independent assurance procedures on thedisclosures included in the British Broadcasting Corporation (BBC)Annual Report arising from the requirement under the Royal Charterfor the continuance of the BBC (the Royal Charter) to publish theprovision for the United Kingdom’s nations and regions, including
how the BBC delivered the creative remit in the nations and regions.
These disclosures comprise performance against the BBC’s public
purpose to reflect, represent and serve the diverse communities of
the United Kingdom’s nations and regions and support the creative
economy, as set out on pages 185 to 201 of the BBC’s Annual Report.
My work is conducted in accordance with International Standards on
Assurance Engagements (ISAE) 3000 Assurance Engagements Other
Than Audits or Reviews of Historic Financial Information.
Respective responsibilities of the BBC Board and theComptroller and Auditor General
For the reporting year covered by this report, the BBC Board was
responsible for publishing information required by the Royal Charteras follows: the provision for the United Kingdom’s nations andregions, including how the BBC delivered the creative remit in thenations and regions for the year-ended 31 March 2022 (the subject
matter) (“Nations Data Packs”).
I am responsible for providing an opinion on whether, in all material
respects, the subject matter is complete and accurate and has been
properly prepared in accordance with the basis set out therein.
In conducting this work, my staff and I have complied with the
Financial Reporting Council’s Revised Ethical Standard 2019. I am
independent of the BBC in accordance with the ethical requirementsthat are relevant to my assurance engagement. My staff and I havefulfilled our other ethical responsibilities in accordance withthese requirements.

Inherent limitations
My assurance procedures have been designed to provide reasonableassurance. The objective of a reasonable assurance engagement
is to reduce engagement risk to an acceptably low level in thecircumstances of the engagement as the basis for a positive form of
expression of my conclusion. It does not, however, eliminate this risk
entirely. In particular, in preparing the disclosures within the Nations
report, the BBC Board is required to make a number of judgements
which inherently introduces an element of risk.
My work has been undertaken so that I might state to the BBC Board
and Parliament those matters I am required to in this report and forno other purpose.
OpinionBased on the results of my procedures, in my opinion, in all material
respects the Nations Data Packs set out on pages 185 to 201 iscomplete and accurate and has been properly prepared inaccordance with the basis set out therein. This opinion has been
formed on the basis of the matters outlined elsewhere in thisindependent assurance report.
Gareth Davies
Comptroller and Auditor General
National Audit Office157-197 Buckingham Palace Road
LondonSW1W 9SP
28 June 2022

My staff and I have applied International Standard on Quality Control
1 and accordingly maintain a comprehensive system of quality
control including documented policies and procedures regarding
compliance with ethical requirements, professional standards andapplicable legal and regulatory requirements.
My approach
I have performed a reasonable assurance engagement as definedin ISAE 3000. A reasonable assurance engagement is to perform
such procedures as to obtain information and explanations which
I consider necessary to express an opinion on whether, in all material
respects, the Nations Data Packs (the subject matter) is complete
and accurate and has been properly prepared in accordance with thebasis set out therein.
My work consisted of understanding the process adopted by the
BBC to derive the disclosures, in particular the completeness andaccuracy of information used. This enabled me to design proceduresin response to risks identified. I performed procedures in relation
to the figures disclosed which included: agreement to third party
evidence such as data issued by the Broadcasters Audience Research
Board (BARB); agreement to scheduling reports; cross-reference
to disclosures made in the BBC Group financial statements;
recalculation and confirmation of mathematical accuracy;
recalculation of restated prior year figures; and agreementof headcount data to payroll reports.

202

Annual Report and Accounts 21/22

Return to contents

FINANCIAL
STATEMENTS
BBC One’s A Very British Scandal
Return to contents

Financial statements

203

Financial statements
Comptroller and Auditor General’s Certificate and Report on theGroup Financial Statements
The Certificate and Report of the Comptroller and Auditor General to the Board of
the British Broadcasting Corporation, acknowledging that Parliament also places
reliance on the Group Accounts and Report
Opinion on financial statements
I certify that I have audited the financial statements of the British
Broadcasting Corporation (BBC) Group for the year ended 31 March
2022, which comprises the BBC Group’s:

Conclusions relating to going concern
In auditing the financial statements, I have concluded that the BBCGroup’s use of the going concern basis of accounting in the
preparation of the financial statements is appropriate.

— Consolidated balance sheet as at 31 March 2022;

My evaluation of the BBC Board’s assessment of the BBC Group’s
ability to continue to adopt the going concern basis of accounting
included understanding and assessing risks to future revenue
streams and the BBC Group’s ability to access borrowings and takeother mitigating actions to manage cash-flows. I also considered mywider understanding of the environment in which the BBC Group
operates which may have implications for the ability to adopt thegoing concern basis of accounting.

— Consolidated income statement;— Consolidated statement of comprehensive income;— Consolidated cash flow statement;— Consolidated statement of changes in equity for the year thenended; and— the related notes including the significant accounting policies.
The financial reporting framework that has been applied in the
preparation of the Group financial statements is applicable law andthe UK adopted International Accounting Standards.
In my opinion the consolidated financial statements:— give a true and fair view of the state of the BBC Group’s affairs as
at 31 March 2022 and of its surplus for the year then ended;— have been properly prepared in accordance with UK adopted
international accounting standards; and— have been prepared in accordance with the Royal Charter for thecontinuance of the British Broadcasting Corporation anddirections issued by the Secretary of State for Digital, Culture,
Media and Sport or the Foreign Secretary thereunder.
Opinion on regularity
In my opinion, in all material respects, the expenditure and income
recorded in the financial statements have been applied to the
purposes intended by Parliament and the financial transactions
recorded in the financial statements conform to the authorities
which govern them.
Basis for opinions
I conducted my audit in accordance with International Standards on
Auditing (ISAs) (UK), applicable law and Practice Note 10 ‘Audit ofFinancial Statements and Regularity of Public Sector Entities in the
United Kingdom’. My responsibilities under those standards arefurther described in the Auditor’s responsibilities for the audit of
the financial statements section of my certificate. Those standards
require me and my staff to comply with the Financial Reporting
Council’s Revised Ethical Standard 2019. I have also elected to apply
the ethical standards relevant to listed entities. I am independent of
the BBC and its Group in accordance with the ethical requirementsthat are relevant to my audit of the financial statements in the UK.
My staff and I have fulfilled our other ethical responsibilities inaccordance with these requirements. I believe that the audit evidence
I have obtained is sufficient and appropriate to provide a basis formy opinion.
The framework of authorities that has been considered in the context
of my opinion on regularity is:— the Royal Charter for the continuance of the British Broadcasting
Corporation;— the Agreement between Her Majesty’s Secretary of State for
Digital, Culture, Media and Sport and the BBC; and— other agreements the BBC has entered into with Government
Ministers.

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Based on the work I have performed, I have not identified any
material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the BBCGroup’s ability to continue as a going concern for a periodof at least twelve months from when the financial statements areauthorised for issue.
In relation to the BBC Board’s reporting on how they have applied
the UK Corporate Governance Code, I have nothing material to add
or draw attention to in relation to the BBC Boards’ statement in thefinancial statements about whether the Board considered it
appropriate to adopt the going concern basis of accounting.
My responsibilities and the responsibilities of the BBC Board withrespect to going concern are described in the relevant sections of
this certificate.
Overview of my audit approach
Key audit matters
Key audit matters are those matters that, in my professional
judgement, were of most significance in my audit of the financial
statements of the current period and include the most significant
assessed risks of material misstatement (whether or not due tofraud) that I identified.
These matters were addressed in the context of the audit of thefinancial statements as a whole, and in forming my opinion thereon.
I do not provide a separate opinion on these matters.
I consider the following areas of particular audit focus to be thoseareas that had the greatest effect on my overall audit strategy, theallocation of resources in my audit and directing the efforts of theaudit team in the current year.
This is not a complete list of all risks identified by my audit but only
those areas that had the greatest effect on my overall audit strategy,
allocation of resources and direction of effort. I have not, for example,
included detailed information relating to the general work I have
performed around the presumed risk of management override ofcontrols, which are areas where my work has not identified any
matters to report. I identified an area of significant risk of material
misstatement relating to accounting for joint ventures and associates.
I have not reported this as a separate key audit matter and haveincorporated into my description of key audit matters below.
During much of 2021/22, in line with government guidance related to
the COVID-19 pandemic, many staff at the BBC, including the financeteam, continued to work remotely and my audit work has been
undertaken largely remotely. I have remained alert to the potential
for impact on the control environment from these working practices.
The areas of focus were discussed with the Audit and Risk
Committee; their report on matters that they considered to besignificant to the financial statements is set out on pages 105 to 109.

Return to contentsKey audit matter description

Complex property transactions (including property-related investments in associates and joint ventures)
Total net book value of Property, Plant and Equipment – £1,985 million(2020/21: £2,054 million). Refer to notes E4 and F1 and the risks set out
in the Audit and Risk Committee report on pages 105 to 109.
The BBC Group has a large and diverse portfolio of properties which
includes owned assets and assets held under leasing arrangements.
In managing its property portfolio and related financing
arrangements, certain past transactions have given rise toaccounting treatments which are not straightforward and require
the application of judgement. This includes sale and leaseback
arrangements where the borrowing limit set by the Secretary ofState for Digital, Culture, Media and Sport has affected the way inwhich the BBC can finance major projects.
The following complex property transactions represent a significant
risk for my audit and have been key areas of focus for my work:

A: Accounting for properties under IFRS 16: Leases— I consider there to be a significant risk relating to the continuing
application of IFRS 16 as the BBC has applied judgement indetermining the appropriate accounting treatment for leased
properties. This includes the valuation of right-of-use assets andassociated liabilities; accounting for repurchase options at the endof the lease term; and the treatment of contingent rent
arrangements.
— The valuation of the BBC Group’s major finance lease assets andliabilities involves the use of complex models to calculate thevaluations, and judgement over the appropriate inputs into
the valuations.
B: New Broadcasting House re-financing and the treatment of
Daunus Ltd— The valuation of the series of significant derivative cash flow
swaps which form the basis of the 2016/17 refinancing of the
New Broadcasting House sale and lease back arrangement.
The valuation of these swaps involves judgement and is highly
sensitive to the assumptions made.
— The BBC holds an investment in Daunus Ltd, which wasestablished to facilitate the redevelopment and refinancing of
New Broadcasting House. The BBC considers that it shares joint
control of Daunus Ltd with other investors and accordingly
recognises a joint venture. This is a significant judgement.
C: Other property transactions— The classification, completeness and valuation of property
available-for-sale which could have a material impact on thefinancial statements.
— The valuation of new properties in the course of construction or
brought into use during the year.

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Key audit matter description

Complex property transactions (including property-related investments in associates and joint ventures)
The scope of my audit work in response
I have carried out work to understand the BBC’s overall property
strategy and any changes that could have a consequent financial
statement impact.
My procedures included making enquiries of management; review ofboard minutes and business plans. Where I could not physically visit
properties, for example, due to Covid-19 restrictions I undertook
alternative audit procedures to verify the existence of assets, such as
photographic evidence or evidence of use of the asset in the BBCGroup’s business.
A: Accounting for properties under IFRS 16: Leases
My procedures included:— Assessing the design and implementation of key controls relating
to the identification and completeness of leases as well as
modifications in lease arrangements;— For a sample of items, testing the calculation of right-of-use
assets and associated liabilities, including those entered into inprior periods to confirm that the ongoing accounting treatment
remained appropriate;— Considering the reasonableness of inputs into management’s
lease calculations and management’s key assumptions andjudgements, checking these for consistency and contradictoryevidence, through inspection of lease documentation;— Testing the completeness of the leases data through a range ofprocedures such as reading the Board and other meeting minutes
to identify major new leases entered into and considering whether
expenditure transactions are indicative of lease arrangements;— Assessing whether disclosures relating to the accounting policies
adopted by management in relation to leases, are sufficient.

B: New Broadcasting House re-financing and the treatment of
Daunus Ltd
I have assessed the reasonableness of the accounting treatment inrelation to the classification and valuation of the cash flow swaps
used in the past re-financing of the New Broadcasting House saleand leaseback. My audit procedures included assessing thereasonableness of management’s key valuation assumptions andjudgements. Using corporate finance specialists, I checked
management’s key assumptions and judgements for consistency with
underlying contracts, published rates and market practice; and I
assessed the sensitivity of management’s valuations to changes in
key assumptions. This has included consideration of the impact thatchanging economic factors have had on market inputs.
I have reviewed evidence supporting management’s judgement torecognise Daunus Ltd as a joint venture, including substantiating andassessing the rights of the other shareholders based on thecontractual documentation. I obtained evidence that control overDaunus Ltd operates jointly in practice.
I have reviewed the transparency of disclosures relating to Daunus
Ltd and assessed whether it is consistent with the relevant financial
reporting framework.
C: Other property transactions
I have considered management’s key judgements in relation to theaccounting treatments adopted for certain planned disposals ofproperty. My audit procedures included reviewing Board minutes andbusiness plans to assess the completeness of property disclosed asheld for sale.
I have reviewed the accounting treatment in relation to newproperties in the course of construction or brought into use during
the year. I have assessed whether costs have been appropriately
capitalised and whether any impairment to the value of these assets
was required.

Key observations and the findings I communicated to the Audit and Risk Committee
On the basis of the procedures performed, I consider that theaccounting treatment adopted for these complex propertytransactions is appropriate, including property-related investments
in associates and joint ventures.

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Return to contentsKey audit matter description

Risk of fraud in revenue recognition
Total revenue recognised – £5,330 million (2020/21: £5,064 million).
Refer to notes B1 to B3 and the risks set out in the Audit and Risk
Committee report on pages 105 to 109.

Licence fee revenue is an area of Parliamentary and public interest,
and the ongoing viability of the BBC is dependent upon thecollection of licence fee revenue.

International Standards on Auditing (UK) require me to consider
whether or not there is a risk of fraud in respect of revenue
recognition. Given the scale and nature of the BBC Group’s income
streams, I have not rebutted this risk. My scoping work has identified
the following transactions streams as areas of specific focus formy audit:

There are two key considerations arising from my audit work:

Licence Fee revenue – £3,800 million (2020/21: £3,750 million).
The BBC’s primary source of funding is derived from the Television
Licence Fee (the “licence fee”). The Telecommunications Act 2003
requires that licence fees must be paid to the BBC which, in turn,
must remit the amounts collected to the Consolidated Fund. The
BBC Licence Fee Unit uses an outsourced service provider, Capita,
to collect licence fees on its behalf.
Licence fees collected are brought to account within the BBC
Television Licence Fee Trust Statement (“the Trust Statement”). Thisis a separate account, which I also audit. The licence fee revenue
recorded in the BBC Group’s consolidated financial statements is a
grant-in-aid funding settlement, paid directly to the BBC from theSecretary of State for Digital, Culture, Media and Sport from sums
drawn down from the Consolidated Fund in respect of licence fees
issued in the year. The funding arrangements are agreed for theduration of the licence fee settlement between the BBC and theSecretary of State. The current licence fee settlement ends in 2027.

— I consider that there may be an incentive to manage and report
licence fee revenue in ways that meet management’s or licencefee payers’ expectations. This might involve the BBC or otherparties involved in the licence fee revenue collection andreporting process. I consider that there is a heightened risk
around the year end of revenue recognition being managed toachieve particular results and this has been a key focus of mytesting in this area.
— The licence fee receivables balances include a material credit loss
impairment estimate reflecting the BBC’s assessment of therecoverability of licence fee receivables which are impacted byfactors affecting the wider economy and customers’ ability to pay.
Management’s assumptions underpinning this estimate could be
adjusted to increase or decrease receivables, to meet
management’s or licence fee payers’ expectations.

The scope of my audit work in response
In relation to the licence fee revenue grant recognised in the BBCGroup’s consolidated financial statements, I have assessed thereasonableness of the BBC’s licence fee revenue recognition policy.
I have substantively tested the amounts and the timing of licence feerevenue funding paid to the BBC by the Secretary of State for Digital,
Culture, Media and Sport as well as its associated disclosures.
Given that the licence fee revenue and balances recorded in the Trust
Statement provide an authoritative expectation as to the related
licence fee grant funding and balances recorded in the consolidated
financial statements, I have carried out audit procedures on the BBC
Licence Fee Unit collection systems and processes and on relatedtransactions and balances reported in the Trust Statement. These
included obtaining assurance on the completeness and occurrence of
licence fee income recorded in the Trust Statement by using IT audit
procedures on key licence fee collection systems and testing asample of in-year transactions and year-end balances.

I have also obtained assurance over the proper operation of cut-off
by examining evidence showing cash receipts and licences issued
around the year end.
I obtained assurance over the recoverability of licence fee revenue
receivables and the credit loss impairment estimate by reviewing
data on licence fee cancellations and debt recovery that informs
the credit loss estimate and management’s judgements andassumptions; assessing the reasonableness of management’s
judgements and assumptions; and challenging those assumptions
where appropriate, considering the sensitivity and impact of differing
judgments and assumptions.

Key observations and the findings I communicated to the Audit and Risk Committee
On the basis of the procedures I have performed I consider licencefee revenue funding and related balances to be appropriately
recognised and reported.

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Key audit matter description

Risk of fraud in revenue recognition
Commercial revenue recognition – £1,530 million (2020/21:£1,314 million) (including commercial investments in associates
and joint ventures).

In addition, management must exercise judgement in the following
areas which could have a material impact on profit:

There are a number of revenue streams from different sources within
the BBC’s commercial subsidiaries, including content and format
sales; production income; advertising revenue; subscription fees;
consumer products (income from the sale of BBC branded goods);
and royalties. Audit risk arises where the revenue recognition iscomplex and involves a high degree of judgement including inrespect of completeness and cut-off. This risk is particularly relevant
within the commercial subsidiaries, where most revenue is earned
from outside of the BBC Group.
Following a reduction in production income due to COVID-19 during
2020-21, an increase in advertising income and other group income
has led to an improved performance in the BBC Commercial Groupfor 2021-22. This could create incentives to delay recognition ofincome or to bring forward costs, impairments or amortisation wheremanagement exercises judgement. One of the largest revenue
streams within BBC Studios relates to the distribution of content.
Commercial distribution rights acquired by the BBC relating to thiscontent are treated as intangible assets within BBC Studios’ financial
statements. When content is distributed, revenue is recognised and,in a number of cases, the contracts underpinning distribution sales
can cover a number of financial years. BBC Studios’ revenue isaffected by judgements in relation to the point at which revenue
relating to the distribution of content arises and the timing andnature of the agreements with third parties represent risks aroundcut-off and completeness of revenue.

— the amortisation and impairment of commercial distribution
rights. Amortisation is based on the expected revenue profile ofthe programme portfolio. As a key area of judgement, risks arise
as changes in assumptions could have a material impact on profit;— revenue associated with productions. Although most production
revenue is generated from within the BBC Group, a material
amount is derived from outside the group. There are risks aroundcompleteness and cut-off in this revenue (accounting in the rightperiod) ; and— impairment of investments. Significant judgement is required indetermining the valuation of investments, including the methodof valuation applied and subsequent decisions to impair them.
There may be an underlying incentive for management tomanipulate the impairment review calculations to bring forward
impairments to offset an increase in revenue recorded in year.

The scope of my audit work in response
I have carried out work to understand the nature of the BBC Group’scommercial profits including reviewing contractual documentationand management reporting, making enquiries of management
responsible for BBC commercial activities (both within the UK and at
significant territories overseas, both by value and by risk). I have also
researched wider market practice in relation to revenue recognitionin the media sector. I used this understanding to assess thereasonableness of revenue recognition policies adopted by the BBC’scommercial subsidiaries, focusing my attention on the highest risk
and most significant revenue streams: channels, distribution, andformat sales.
My testing included: undertaking detailed analysis of key revenue
streams and identifying transactions with the greatest risk forfurther analysis, reviewing significant revenue contracts tounderstand the key features and confirming that they have beentreated appropriately in the financial statements (with particularfocus on the requirements of IFRS 15, Revenue from Contracts with
Customers); and, considering transactions arising around theyear-end, for evidence of delivery and licence period start dates.

I reviewed recoverability by assessing the nature of contractual
arrangements, confirming amounts received after the reporting date,and reviewing management’s assessment of the need to provide for
non-recovery.
I have also assessed the judgements made in respect of amortisationand impairment of commercial distribution rights. I reviewed thebasis on which the amortisation principles were determined,
comparing these to the known and forecast timing of the realisationof the value of these rights. I considered whether any amendments
were required to the policy in light of developments in BBC Studios’
business, and wider market practice, during the reporting period.
I have reviewed judgements made in respect of the impairment ofinvestments and the basis on which any impairment was calculated,
including the completeness of management’s assessment.
I have also reviewed disclosures made to confirm these are inaccordance with accounting standards.

Key observations and the findings I communicated to the Audit and Risk Committee
I have concluded that commercial revenue and profit is appropriately
recognised and reported. In respect of commercial investments inassociates and joint ventures, I have gained appropriate assurances
over the completeness of impairments and the basis of calculation.

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Return to contentsKey audit matter description

Valuation of the defined benefit pension asset
Total value of the defined benefit pension scheme asset – £1,241 million
asset (2020/21: £190 million asset). Refer to note D6 and the risks set
out in the Audit and Risk Committee report on pages 105 to 109.
The valuation of the defined benefit pension scheme assets andliabilities reported in the accounts is highly judgemental, andchanges to assumptions can result in material changes to thevaluation. Given this, I have assessed the valuation of the net pension
asset as a significant risk to my audit.
The scope of my audit work in response
I have understood the BBC’s pension scheme arrangements andassessed the processes and controls used by management toaccount for them.

I have also commissioned experts to consider the assumptions andmethodology used in valuing the assets were reasonable in relation
to the longevity swap contract.

Using actuarial experts, I have assessed the reasonableness of key
assumptions used in determining the scheme liability, benchmarking
them against other schemes; and I have assessed the nature andappropriateness of BBC context-specific assumptions and challenged
these where appropriate. I have also assessed the expertise andindependence of the BBC’s actuaries.

I have tested the accounting entries to the underlying work
performed by the BBC’s actuaries and reviewed disclosures made toconfirm these are in accordance with accounting standards.

To audit the scheme assets, I have taken assurance from the work of
the BBC pension scheme auditors. I have also commissioned
additional work from the scheme auditors to ensure that all assets
material to the BBC Group have been audited, and that where assets
are held in unquoted formats, appropriate benchmarks have beenreviewed to challenge or verify valuations. The totality of this work by
the scheme auditors, with my team’s review of this work, provides
assurance over the valuation of the Scheme assets, which is a key
input to the pension scheme calculation reported by the BBC Group.
Key observations and the findings I communicated to the Audit and Risk Committee
I consider the defined benefit pension scheme to be appropriately
accounted for in the BBC’s consolidated financial statements.
Key audit matter description

Accounting for programme assets
Total value of programme assets – £1,111 million (2020/21:£980 million). Refer to note E1 and the risks set out in the Audit andRisk Committee report on pages 105 to 109.
The BBC Group records the costs associated with making a
programme as work-in-progress during the course of a production,
along with any direct overheads, and releases these assets from theBalance Sheet at the point a programme is delivered (in the case of
BBC Studios Productions Limited) or transmitted (in the case of the
Public Service Broadcaster).
Where the rights to broadcast content are acquired by the Public
Sector Broadcaster, assets and liabilities relating to acquired content
are recognised at the point of payment or commencement of thelicence period, whichever is earlier. The cost of acquired content isexpensed on first transmission except to the extent that the numberof further showings is contractually agreed, when they are expensed
according to the expected transmission profile.

At the point these programme assets are released, revenue and costs
are recognised in the Consolidated Income Statement as appropriate.
Where costs have been recorded and remain as programme assets at
the year-end, management must consider whether there are any
indicators of impairment: for example, where a programme may nolonger be broadcast, or where costs exceed forecast revenue, forinstance, due to additional costs to ensure productions comply with
COVID-19 social-distancing and health and safety requirements.
The valuation of programme assets is a highly material estimate in
the accounts, and there is a significant amount of judgement overboth the initial value and the impairment of these assets.
There is a risk that the approach to valuation will result in material
misstatement of the balance sheet, or that the processes to identify
impairment of programme assets are not sufficient to identify
material overstatement of the balance sheet.

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Key audit matter description

Accounting for programme assets
The scope of my audit work in response
I have assessed the policy adopted by management in respect ofprogramme assets as a key accounting judgement, including anassessment against IFRS and the wider practice within the media
industry. This included undertaking walkthroughs of the process forvaluing programme assets and the end-to-end process following a
programme lifecycle through the various BBC entities, to ensure a
consistent approach to the recognition of costs and revenue and that
this is appropriately addressed on consolidation.
I substantively tested a sample of programme assets to confirm thatthese had been accounted for in accordance with the policy adopted
by management.

I understood and evaluated the approach to managing production
costs and identifying indicators of impairment and consideredpotential indicators of impairment of programme assets through mywider understanding of the business. This included a review of Board
Minutes, considering wider information, and holding discussions withthe programme and production accounting teams to assess thecontrols over programme spend. I also considered whether additionalcosts of complying with COVID-19 related health and safety rules
would lead to impairment of programme assets.

Key observations and the findings I communicated to the Audit and Risk Committee
I consider programme assets to be appropriately accounted for in
the BBC’s consolidated financial statements.

Application of materiality
Materiality
I applied the concept of materiality in both planning and performing
my audit, and in evaluating the effect of misstatements on my audit
and on the financial statements. This approach recognises that
financial statements are rarely absolutely correct, and that an audit
is designed to provide reasonable, rather than absolute, assurance
that the financial statements are free from material misstatement
or irregularity. A matter is material if its omission or misstatement
would, in the judgement of the auditor, reasonably influence thedecisions of users of the financial statements.
Based on my professional judgement, I determined that overallmateriality for the BBC Group’s consolidated financial statements
as follows:

Overallmateriality

Group materiality

Benchmark£50 million(2020/21: £25 million)

1% of Group revenue(2020/21: 0.5% ofGroup revenue)

Performance £37.5 million
75% of overall materiality
materiality(2020/21: £18.75 million) (2020/21: same)
Reportingthreshold£300,000(2020/21: £250,000)

I chose Group revenue as the materiality benchmark because, in
my professional judgement, revenue is the key driver of the BBCGroup’s business; in particular licence fee revenue and commercial
income generated by the BBC Group are key drivers of stakeholderinterest. Parliament and the public have an interest in the way inwhich the BBC Group is funded and how it spends its funds. The levelof licence fee revenue and commercial revenue determines theresources available to the BBC Group and drives strategic decisions
around spending and investment.
Historically, I have set materiality at 0.5% of total Group revenue.
I have increased this to 1% for 2021/22 as I consider this more
appropriately reflects the level of material misstatement that would
affect the decisions of users of the financial statements.
Notwithstanding this increase, the circumstances of any identified
misstatements are evaluated for their impact on the accounts andthe potential to influence the user of the financial statements, andtheir decisions.

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Performance materiality
I set performance materiality at a level lower than materiality
to reduce the probability that, in aggregate, uncorrected andundetected misstatements exceed the materiality for the financial
statements as a whole. In determining performance materiality,
I considered the history of misstatements, risk assessment and theeffectiveness of controls.
Other materiality considerations
As well as quantitative materiality there are certain matters that,by their very nature, would if not corrected influence the decisionsof users, for example:— Remuneration disclosures;— Matters that could result in a modification of the regularity
opinion; and— Any adjustment that would affect the overall position of the
primary statements at the margin; for example, that would resultin the surplus reported in the consolidated income statement
becoming a deficit, or vice-versa.
Assessment of such matters would need to have regard to the natureof the misstatement and the applicable legal and reporting
framework, as well as the size of the misstatement.
In planning and performing audit work in support of my opinion on
regularity and evaluating the impact of any irregular transactions,
I took into account both quantitative and qualitative aspects that
I consider would reasonably influence the decisions of users of thefinancial statements.
Error reporting threshold
I agreed with the Audit and Risk Committee that I would report to it
all uncorrected misstatements identified through my audit in excessof £300,000, as well as differences below this threshold that in myview warranted reporting on qualitative grounds. This threshold has
increased in line with the increase in materiality level noted above.
We also report to the Audit and Risk Committee on disclosure
matters that we identified when assessing the overall presentation of
the financial statements. Total unadjusted audit differences reported
to the Audit and Risk Committee would, if amended, decrease thenet surplus by £10.6m.

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Audit scope
The scope of my Group audit was determined by obtaining an
understanding of the BBC Group and its environment, includingGroup-wide controls, and assessing the risks of material
misstatement at the Group level.
The BBC Group comprises over 100 subsidiaries, along with a numberof associates and joint ventures. There are two levels of consolidation
within the BBC Group:— Level 1: BBC Group, comprising the BBC Public Service
Broadcaster (PSB), PSB subsidiaries, and BBC Commercial Group;— Level 2: BBC Commercial Group, comprising BBC Commercial
Limited and subsidiary companies, including, BBC Studios
Productions Limited, BBC Studios Distribution Limited andsubsidiary companies; BBC Global News companies; BBC
Studioworks Limited; and BBC Children’s Productions Limited.
This audit opinion relates to the BBC Group, at level 1. My Groupaudit approach has been designed to enable me to form an opinion
on these consolidated financial statements, and my assessment ofsignificant components and the nature of the work I have performed
T t
is as follows:
Level 1: BBC Group income
Significant components and auditors— BBC Public Service Broadcaster(NAO)— BBC Commercial Group (NAO)

Sampled non-significant components— BBC Global News Ltd (NAO)— BBC World Distribution Ltd (NAO)— BBC Studioworks Ltd (NAO)— BBC Studios Americas Inc (NAO)*— BBC Children’s Productions
Ltd (NAO)— 2 Entertain Video Ltd (NAO)*— Natural History Factual Productions
Ltd (NAO)*— BBC Studios Productions (Clifton)(NAO)*— Nice and Accurate Productions Ltd(NAO)*— BBC Studios France Sarl (KPMG)— BBC Studios Australia Pty Ltd (Grant
Thornton)— Sid Gentle Films Ltd (Ross Bennet
Smith)

Signiﬁcantcomponents
41%
Sampled, non-signiﬁcantcomponents
52%
Other non-signiﬁcantcomponents
6%

Analytical procedures on
non‑significant components
We performed analytical procedures on
the remaining components.

Sampled non-significant components— None – due to coverage achieved
from significant components
Analytical procedures on
non‑significant components
We performed analytical procedures on
the remaining components.

Level 2: BBC Commercial Group
incomeSignificant components and auditors— BBC Commercial Ltd (NAO)— BBC Studios Distribution Ltd (NAO)— BBC Studios Productions Ltd (NAO)— UKTV Media Ltd (NAO)*

Signiﬁcantcomponents
98%
Other non-signiﬁcantcomponents
2%

Specified procedures are performed onthese entities

I have had direct involvement in the audit strategy of the BBC’ssignificant components, including those significant components
where I have not been appointed as auditor. I have issued Group audit
instructions to all significant components by size and risk and to asample of other components, which enable me to obtain thenecessary assurances required for my audit opinion on the BBC’s
Group’s consolidated financial statements. For significant
components where I have not been appointed as auditor, in somecases I have met with teams virtually due to travel restrictions andassessed the audit strategy, significant audit risks and undertaken aremote review of the work and findings of the component auditors.
For these component audits I have also met with component
management and attended planning and closing meetings, either
virtually or in person. Under the terms of the Group audit
instructions I issued, full statutory audit procedures in accordancewith local adaptations of International Standards on Auditing havebeen conducted and I have satisfied myself that sufficient work has
been undertaken to provide the necessary assurances for my audit
opinion on the BBC’s Group’s consolidated financial statements. The
components subject to these procedures are described as ‘full scope
audit’ components in the table above.
For other components I have undertaken other procedures to gain
the necessary assurances for my audit opinion on the BBC Group’s
consolidated financial statements. This included evaluating andtesting the BBC’s Group wide controls and performing analytical andenquiry procedures to address the risk of residual misstatement.

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Financial statements

Other Information
The other information comprises information included in the
Annual Report, but does not include the financial statements andmy auditor’s certificate thereon. The BBC Board is responsible forthe other information.
My opinion on the financial statements does not cover the otherinformation and except to the extent otherwise explicitly stated in
my certificate, I do not express any form of assurance conclusion
thereon.
In connection with my audit of the financial statements, my
responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent
with the financial statements or my knowledge obtained in the audit
or otherwise appears to be materially misstated,
If I identify such material inconsistencies or apparent material
misstatements, I am required to determine whether this gives rise
to a material misstatement in the financial statements themselves.
If, based on the work I have performed, I conclude that there is amaterial misstatement of this other information, I am required toreport that fact.
I have nothing to report in this regard.
Other matters prescribed by the terms of my engagement
Remuneration
In addition to my audit of the BBC Group’s consolidated financial
statements, the Board has engaged me to audit the information in
the Board remuneration report that is described as having been
audited, which the Board has decided to prepare as if the BBC wererequired to comply with the requirements of Schedule 8 to The Large
and Medium-sized Companies and Groups (Accounts and Reports)
Regulation 2008 (SI 2008 No 410) made under the Companies
Act 2006.
In my opinion the parts of the Board remuneration report which
I have been engaged to audit have been properly prepared inaccordance with Schedule 8 to the Large and Medium-sizedCompanies and Groups (Accounts and Reports) Regulation 2008,
as if those requirements were to apply to the BBC Group.
The strategic and governance reports
In my opinion, based on the work undertaken in the course of theaudit the Strategic and Governance Report for the financial year forwhich the financial statements are prepared is consistent with thefinancial statements and those reports have been prepared inaccordance with applicable legal requirements.

Corporate compliance statement
The terms of my engagement require me to review the BBC Board’s
statement in relation to going concern, longer-term viability and thatpart of the Corporate Compliance Statement relating to the BBC’s
compliance with the provisions of the UK Corporate GovernanceStatement specified for my review.
Based on the work undertaken as part of my audit, I have concluded
that each of the following elements of the Corporate ComplianceStatement is materially consistent with the financial statements or
my knowledge obtained during the audit:— The BBC Board’s statement with regards the appropriateness ofadopting the going concern basis of accounting and any material
uncertainties identified set out on page 219;
— The BBC Board’s explanation as to its assessment of the entity’s
prospects, the period this assessment covers and why they feel
this period is appropriate set out on page 127;
— The BBC Board’s statement on fair, balanced and understandable
set out on page 136;
— The BBC Board’s confirmation that it has carried out a robust
assessment of the emerging and principal risks set out on pages
110 to 126;
— The section of the Annual Report that describes the review ofeffectiveness of risk management and internal control systems
set out on page 126; and— The section describing the work of the Audit and Risk Committee
set out on page 105.
Responsibilities of the BBC Board for the financial statements
As explained more fully in the Statement of the Board’s
Responsibilities, the BBC Board is responsible for:— the preparation of the financial statements in accordance with theapplicable financial reporting framework and for being satisfied
that they give a true and fair view;— internal controls as the BBC Board determines are necessary toenable the preparation of the financial statements to be free frommaterial misstatement, whether due to fraud or error; and— assessing the BBC Group’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern andusing the going concern basis of accounting unless the BBC Board
either intends to liquidate the entity or to cease operations, or has
no realistic alternative but to do so.

Matters on which I report by exception
In the light of the knowledge and understanding of the BBC Groupand its environment obtained in the course of the audit, I have not
identified material misstatements in the Strategic Report or theGovernance Report.

Auditor’s responsibilities for the audit of the financial
statements
My responsibility is to audit, certify and report on the financial
statements in accordance with applicable law and International
Standards on Auditing (ISAs) (UK).

I have nothing to report in respect of the following matters which
I report to you if, in my opinion:

My objectives are to obtain reasonable assurance about whether thefinancial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue a certificate and reportthat includes my opinion. Reasonable assurance is a high level ofassurance but is not a guarantee that an audit conducted inaccordance with ISAs (UK) will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and areconsidered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users
taken on the basis of these financial statements.

— adequate accounting records have not been kept or returns
adequate for my audit have not been received from branches not
visited by my staff; or— the financial statements and the parts of the remuneration report
to be audited are not in agreement with the accounting records
and returns; or certain disclosures of remuneration specified bylaw are not made; or— a corporate compliance statement has not been prepared; or— I have not received all of the information and explanations
I require for my audit.

212

Annual Report and Accounts 21/22

Extent to which the audit was considered capable of detecting
non-compliance with laws and regulations including fraud
I design procedures in line with my responsibilities, outlined above,
to detect material misstatements in respect of non-compliance withlaws and regulation, including fraud. The extent to which my

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procedures are capable of detecting non-compliance with laws andregulations, including fraud is detailed below.

licence fee and commercial revenue as well as the judgement
involved in impairing their associated receivables;

Identifying and assessing potential risks related to noncompliance with laws and regulations, including fraud
In identifying and assessing risks of material misstatement in respectof non-compliance with laws and regulations, including fraud, we
considered the following:— the high degree of judgement applied in valuing the net defined
pension scheme, which is underpinned by a number of judgements
and assumptions which exposes the valuation to a risk ofmanagement manipulation or bias; and— the nature of the sector, control environment and operational
performance including the design of the BBC Group’s accounting
policies.
— inquiring of management, the head of Internal Audit and thosecharged with governance, including obtaining and reviewing
supporting documentation relating to the BBC Group’s policies
and procedures relating to:– identifying, evaluating and complying with laws andregulations and whether they were aware of any instances of
non-compliance;– detecting and responding to the risks of fraud and whether
they have knowledge of any actual, suspected or alleged
fraud; and– the internal controls established to mitigate risks related to
fraud or non-compliance with laws and regulations including
the BBC Group’s controls relating to Royal Charter for thecontinuance of the British Broadcasting Corporation, theCommunications Act 2003 and Communications (Television
Licensing) Regulations 2004, the Companies Act 2006 in so far
as it is applicable to the BBC Group, regulations established by
the Office of Communications and regulations relating tomoney laundering and sanctions.
— discussing among the engagement team, including significant
component audit teams, and involving relevant internal andexternal specialists, including information technology, corporate
finance, actuarial and tax specialists, regarding how and where
fraud might occur in the financial statements and any potential
indicators of fraud.
As a result of these considerations, I considered the opportunities andincentives that may exist within the BBC Group for fraud and identified
the greatest potential for fraud in the following areas: judgements
relating to revenue recognition and profit recognition; posting of
unusual journals; complex transactions; and management overrideof controls including bias in management’s estimation. In common
with all audits under ISAs (UK), I am required to perform specificprocedures to respond to the risk of management override of controls.

— the high degree of management’s judgement applied in thevaluation of programme assets and potential for management
bias in making decisions to impair them.
Audit response to identified risk
As a result of performing the above, my procedures to respond to
identified risks included the following:— reviewing the financial statement disclosures and testing tosupporting documentation to assess compliance with relevantlaws and regulations described above as having direct effect on
the financial statements;— enquiring of management, the Audit and Risk Committee andin-house legal counsel concerning actual and potential litigationand claims;— reading minutes of meetings of those charged with governanceand the Board and internal audit reports; and— in addressing the risk of fraud through management override ofcontrols, testing the appropriateness of journal entries and otheradjustments; assessing whether the judgements made in making
accounting estimates are indicative of a potential bias; andevaluating the business rationale of any significant transactions
that are unusual or outside the normal course of business; and— assessing the reasonableness of the accounting treatment
applied as well as considerations of key inputs, model calculations
and other methods of estimation, judgements and assumptions,relating to complex property transactions, revenue recognition,
valuation of defined benefit pensions and programme assets andwhether these indicate any potential bias or manipulation.
I also communicated relevant identified laws and regulations andpotential fraud risks to all engagement team members includinginternal specialists and significant component audit teams andremained alert to any indications of fraud or non-compliance withlaws and regulations throughout the audit.
A further description of my responsibilities for the audit of thefinancial statements is located on the Financial Reporting Council’s
website at: www.frc.org.uk/auditorsresponsibilities. This description
forms part of my certificate.

I also obtained an understanding of the BBC Group’s framework ofauthority as well as other legal and regulatory frameworks that the
BBC Group operates in, focusing on those laws and regulations that
had a direct effect on the financial statements or that had afundamental effect on the operations of the BBC Group. The key
laws and regulations I considered in this context included the Royal
Charter for the continuance of the British Broadcasting Corporationand the Communications Act 2003 and Communications (Television
Licensing) Regulations 2004, the Companies Act 2006 in so far as it
is applicable to the BBC Group, regulations established by the Officeof Communications, regulations relating to money laundering andsanctions and applicable taxation, health & safety and employment
regulation and legislation.

Other auditor’s responsibilities
In addition, I am required to obtain evidence sufficient to givereasonable assurance that the income and expenditure reported in
the financial statements have been applied to the purposes intended
by Parliament and the financial transactions conform to theauthorities which govern them.

In addition, I considered the following matters:

Gareth Davies
Comptroller and Auditor General— the complex nature of the BBC’s property portfolio and related
financing arrangements including accounting for property under
IFRS 16, which gives rise to significant judgements that may besubject to management bias;— the risk of fraud in revenue recognition with respect to both

I communicate with those charged with governance regarding,among other matters, the planned scope and timing of the audit andsignificant audit findings, including any significant deficiencies ininternal control that I identify during my audit.
ReportI have no matters to report.

National Audit Office157-197 Buckingham Palace Road
London, SW1W 9SP
28 June 2022

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Financial statements

213

Financial statements
Consolidated income statement
Note

2022
£m

2021
£m

Licence fee income
Other income

B1
B1

3,800
1,530

3,750
1,314

Total income

B1

5,330

5,064

Total operating costs
Share of results of associates and joint ventures

B1
E7(5,231)25(4,799)25

Group operating surplus
Gains/(losses) on disposal
Other gains and losses
Net financing income/(costs)

C2
C3
C4

124
28
(13)
47

290
(1)
(2)
(74)

C5.1

186
20

213
14

Surplus for the year

206

227

Attributable to:BBC
Non-controlling interests

202
4

225
2

Surplus for the year

206

227

2022
£m

2021
£m

206

227

1,099

(109)

1,099

(109)

11
(14)
3
3

(19)
14
9
(3)

3

1

Other comprehensive income/(expenditure) net of tax

1,102

(108)

Total comprehensive income for the year

1,308

119

Attributable to:BBC
Non-controlling interests

1,304
4

117
2

Total comprehensive income for the year

1,308

119

Surplus before taxation
Taxation

Consolidated statement of comprehensive income
Note

Surplus for the year
Other comprehensive income:Remeasurement on defined benefit pension schemes

D6.1

Total items that will not be reclassified to the income statement in the future
Currency translation adjustment(Loss)/gain on cash flow hedges
Put-options released/exercised
Deferred tax charge on financial instruments
Total items that may be reclassified to the income statement in the future

214

Annual Report and Accounts 21/22

Return to contentsConsolidated balance sheet
As at 31 March
2022
£m

2021
£m

420
478
1,507
32
210
229
4
417
22
1,241

394
512
1,542
32
187
223
4
358
14
190

4,560

3,456

1,111
1,096
3
6
2
88
717

980
1,185
4
2
8
52
471

3,023

2,702

(1,087)
(312)
(12)
(118)
(94)
(6)
(14)

(1,039)
(159)
(1)
(109)
(109)
(6)
(11)

(1,643)(1,434)

(44)
(21)
(170)
(1,619)
(55)
(589)
(28)

(58)
(32)
(170)
(1,677)
(58)
(590)
(29)

(2,526)(2,614)

3,414

2,110

3,398
(8)
35
(13)

2,099
3
24
(18)

Non-controlling interests

3,412
2

2,108
2

Total capital and reserves

3,414

2,110

Note

Non-current assets
Intangible assets (including goodwill)
Property, plant and equipment
Right-of-use assets
Investment properties
Interests in associates and joint ventures
Trade and other receivables
Investments
Derivative financial instruments
Deferred tax assets
Pension assets

E2
E4
F1
E5, F3
E7
H1.2
G4.2
C5.5
D6.1

Current assets
Programme-related assets and other inventories
Trade and other receivables
Contract assets
Assets classified as held for sale
Derivative financial instruments
Current tax assets
Cash and cash equivalents

E1
H1.3
H1.1
E6
G4.2
C5.4
G1

Current liabilities
Trade and other payables
Contract liabilities
Borrowings
Obligations under leases
Provisions
Derivative financial instruments
Current tax liabilities

H2.3
H2.1
G2.1
F2
H4
G4.2
C5.6

Non-current liabilities
Trade and other payables
Contract liabilities
Borrowings
Obligations under leases
Provisions
Derivative financial instruments
Deferred tax liabilities

H2.2
H2.1
G2.2
F2
H4
G4.2
C5.5

Net assets
Attributable to the BBC:Operating reserve
Hedging reserve
Translation reserve
Other reserves

I2
I2
I2
I2

The financial statements were approved by the Board and authorised for issue on 23 June 2022, and signed on their behalf by:

Tim Davie
Director-General			

Leigh Tavaziva
Group Chief Operating Officer
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Financial statements

215

Financial statements
Consolidated statement of changes in equity

Note

Operatingreserve£m

Hedging
reserve£m

Translation
reserve£m

Otherreserves
£m

Total
£m

1,983

(8)

43

(27)

225

–

–

–

–
–

–
14

(19)
–

–

(3)

–

At 1 April 2020
Surplus for the year
Currency translation
adjustment
I2
Cash flow hedges
I2
Deferred tax onfinancial instruments
Put-options
exercised
Remeasurement ofdefined benefit
pension scheme
D6.1
Total comprehensive
income/(loss) for theyear
Dividends declaredin yearB5

Non-controllinginterests
£m

Total
£m

1,991

2

1,993

225

2

227

–
–

(19)
14

–
–

(19)
14

–

–

(3)

–

(3)

–

–

9

9

–

9

(109)

–

–

–

(109)

–

(109)

116

11

(19)

9

117

2

119

–

–

–

–

–

(2)

(2)

At 31 March 2021

2,099

3

24

(18)

2,10 82

2,110

Surplus for the year
Currency translation
adjustment
Cash flow hedges

202

–

–

–

202

4

206

–
–

–
(14)

11
–

–
–

11
(14)

–
–

11
(14)

–
–

3
–

–
–

–
3

3
3

–
–

3
3

(2)

–

–

2

–

–

–

1,099

–

–

–

1,099

–

1,099

1,299

(11)

11

5

1,304

4

1,308

–

–

–

–

–

(4)

(4)

3,398

(8)

35

(13)

3,412

2

3,414

I2
I2

Deferred tax onfinancial instruments
Put-options released
Unwinding of
discount put options
Remeasurement ofdefined benefit
pension scheme
D6.1
Total comprehensive
income/(loss) for theyear
Dividends declaredin year
At 31 March 2022

216

B5

Annual Report and Accounts 21/22

Return to contentsConsolidated cashflow statement
Note

Operating activities
Group surplus before taxation
Depreciation, amortisation and impairment
Difference between pension charge and cash contribution
Fair value impact of derivatives associated with loans
Fair value impact of other derivatives(Gain)/loss on disposal of tangible and intangible fixed assets(Gain)/loss on disposal/deemed disposal of associates
Gain on other disposals
Other gains
Share of results of associates and joint ventures
Financing income (excluding fair value swaps)
Financing costs (excluding fair value swaps)
Increase in programme-related assets and inventories
Decrease/(increase) in receivables and contract assets
Increase/(decrease) in payables and contract liabilities(Decrease)/increase in provisions

B6

C2
C2
E7

Cash generated from operations

2022
£m

2021
£m

186
361
52
(3)
(77)
(6)
(7)
(1)
10
(25)
(28)
56
(100)
130
180
(24)

213
460
(44)
(1)
44
6
1
–
6
(25)
(17)
58
(143)
(70)
(22)
14

704

480

Tax paid

(23)

(3)

Net cash from operations

681

477

3
12
15
(4)
22
1
2
(4)
(64)
(198)
(56)

3
12
11
(2)
–
–
3
(3)
(55)
(172)
(32)

(271)

(235)

(4)
5
(1)
–
(165)

(8)
171
(205)
33
(161)

Net cash used in financing activities

(165)

(170)

Net increase in cash and cash equivalents

245

72

Investing activities
Interest received
Financing income relating to swap transactions
Dividends received from associates and joint ventures
Dividends paid to non-controlling interests
Proceeds from disposal of property, plant and equipment
Proceeds from disposal of available for sale investments
Proceeds from disposal of associates and joint ventures
Acquisition of interests in associates and joint ventures
Acquisition of subsidiary net of cash acquired
Purchases of other intangible assets
Purchases of property, plant and equipment

C4
E7

Net cash used in investing activities
Financing activities
Interest paid
Proceeds from increase in borrowings
Repayments of borrowings
Proceeds from settlement of interest rate swap
Payment of obligations under leases

C4

Cash and cash equivalents at beginning of the year
Effect of foreign exchange rate changes on cash and cash equivalents

G1

471
1

401
(2)

Cash and cash equivalents at the end of the year

G1

717

471

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Financial statements

217

Financial statements
Contents
The structure of these financial statements has been revised this year to further improve understanding. Accounting risks and judgements
have been clearly highlighted in each section, explanations added to explain complex terms and the policies have been incorporated against
the relevant notes as denoted by the book symbol:
The notes have been re-organised as follows:
Page

Note A: How the BBC’s accounts are prepared
Basis of preparation
Going concern219
New and revised accounting standards adopted/not yet
adoptedNote B: The BBC’s operations, income and expenditure
Income and operating results
Licence fee income
Other income
Income from contracts with customers
Contract costs

Geographical location of non-current assets and income
Contribution from commercial activities
Total operating costs
Analysis of operating costs by commercial activities

Note C: Other profit and loss items
Acquisitions
Gains/(losses) on disposals
Other gains and losses

Net financing costs
Taxation

Note D: What the BBC spends on its people
Persons employed
Employee remuneration
Remuneration of the BBC Board
Key management personnel compensation

Related part transactions with key management personnel
Group pension plans
BBC Pension Scheme

Note E: The assets owned by the BBC
Programme-related assets and other inventories
Intangible assets
Goodwill
Note F: Leasing activities at the BBC
Right-of-use assets
Obligations under leases
Investment properties
Note G: Financing the BBC
Cash and cash equivalents
Borrowings

221

230

234

242
Property, plant and equipment
Assets classified as held for saleInterests in associates and joint ventures
250
Lease income received as a lessor
Lease expenses recognised in the income statement
254
DCMS borrowing limits
Financial instruments

Note H: Receivables and payables
Trade and other receivables and contract assets
Trade and other payables and contract liabilities
Long-term commitments not reflected in the balance sheet

Related party transactions
Provisions and contingent liabilities

Note I: BBC Structure and other disclosures
Interests in associates, joint ventures and subsidiaries
Reserves

Post balance sheet events

218

Annual Report and Accounts 21/22

264

269

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Notes to the accounts
A. How the BBC’s accounts are preparedThis section includes the BBC’s policies on how the financial
statements have been prepared and what standards have been
adopted during the year. Other accounting policies are captured ineach of the following sections alongside the relevant notes.
Incorporation
The BBC is incorporated in the United Kingdom by Royal Charter.
Statement of accounting policies
The BBC is required to select and apply accounting policies for eachtype of transaction entered into throughout the year and in thepreceding year. An accounting policy sets out the framework for how
assets, liabilities, income and expenditure should be accounted for in
the financial statements, in accordance with the applicable standard,
how those items will be measured and where they are presented in
the statement of total income and expenditure, balance sheet andstatement of cash flows.
Basis of preparation
These consolidated financial statements for the BBC have been
prepared in accordance with UK adopted IFRS. Additional analysis isalso presented to meet regulatory requirements including thoseprescribed by DCMS, Ofcom or the Charter.
The financial statements are principally prepared on the historicalcost basis. Exceptions are noted within the relevant section of
the notes.
Where items are sufficiently significant by virtue of their size or
nature, they are disclosed separately in the financial statements
in order to aid the reader’s understanding of the BBC’s financial
position and performance.
Use of estimates and judgements
The preparation of financial statements requires the use of certain
critical accounting estimates that affect the reported performanceand position of the BBC, or areas where assumptions or estimates
are significant to the consolidated financial statements.
It also requires management to exercise judgement in applying theBBC’s accounting policies. These areas involve a higher degree ofjudgement or complexity and are therefore drawn out at the frontof each note.
In summary, the most significant estimates and judgement areas are:
— Income recognition (Note B);— Acquisitions (Note C);— Pension scheme and actuarial assumptions (Note D);— Property, plant and equipment (Note E);— Right-of-use assets (Note F);— Derivative financial assets and liabilities (Note G); and— Provisions and accruals (Note H).
Risks relevant to the disclosures made are also highlighted at thestart of each section and cross-referenced across the Annual Reportand Accounts accordingly.
The significant risk areas identified are:
Income recognition (Note B);
Valuation of defined benefit pension scheme (Note D);
Complex property transactions (Notes E and F);
Programme accounting (Note E);

Going concern
The financial statements are prepared on a going concern basis. The
directors believe this to be appropriate for the reasons set out below.
The directors have prepared and reviewed cash flow forecasts for the
24-month period to 31 March 2024, a period in excess of a year fromthe date of approval of these financial statements.
In the directors’ judgement, the key factors in these forecasts are:— the continuity of the Charter;— the current licence fee settlement;— the BBC Pension Scheme deficit recovery payments agreed withthe pension scheme Trustees; and— the delivery of the BBC’s savings plans in response to the LicenceFee settlement announcements in January 2022 to ensure we
operate within our financial constraints.
The BBC’s response to the coronavirus pandemic and the continuing
recovery has been to focus on the safety of staff and the continuationof operations and output, ensuring value for our audiences. However,the uncertainty over the economic recovery has led BBC
management to continue with the increased financial stress testingand sensitivity analysis in the financial planning that has been used
to support the 2021/22 Going Concern assumption.
See further information in the Viability Statement on page 127 andon page 110 for a robust assessment of the principal risks facing the
Corporation, including those that would threaten its business model,
future performance, solvency or liquidity. In particular, the directors
have applied assumptions relating to the changing risk profile arising
as described under principal risk 5, “Our Finances” to cash flow andbudgetary modelling.
The Charter and licence fee give the BBC a secure source of income,however the timing of cash flows is an important factor in theconsideration of going concern given the borrowing restrictions agreed
with the DCMS for both the PSB Group (£2.2 billion, of which £2 billion
is available to fund leases) and the commercial operations of the BBC(currently £550 million of which £200 million is specifically for leases).
The Board remains satisfied with the BBC’s funding and liquidity
position. The BBC has external funding available, including a £200
million sterling revolving credit facility which expires in March 2025.
This facility is currently unutilised. Including leases, PSB net debt at
March 2022 was £1,055 million, which equates to a headroom of£1,145 million against the borrowing limit available.
There is a separate facility available to the BBC commercial
operations. At the balance sheet date, the primary sources of funding
to the commercial operations was a £210 million facility with a groupof international banks until March 2026 (following two one-year
extension options) and a £170 million facility with UK banks until
June 2024 with a possibility of a one-year extension option (to June2025). As at the year-end the BBC had drawn down £170 million(£167 million net of the impact of foreign exchange swap
transactions) of these two facilities available (2021: £170 million).
We are finalising governance arrangements for BBC Commercial
Limited (BBCC) borrowing limit to increase to £750 million (excluding
leases) over time as set out by HM Government in the Autumn
Budget and Spending Review of October 2021. This will allow us tosecure further debt facilities for the commercial entity.
The directors of the BBC have reviewed the cash flow forecasts andavailable external borrowing facilities. Together with the sensitivities
and mitigating factors in the context of available funds, they expect
the BBC to be able to meet its debts as they fall due for theforeseeable future.
As a result, the directors are satisfied that the going concern basis isappropriate for the preparation of these financial statements.

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Financial statements

219

Financial statements
Notes to the accounts continued
A. How the BBC’s accounts are prepared continued
Basis of consolidation
The BBC’s financial statements include the results of the BBC and allbusinesses controlled by the BBC (subsidiaries) together with theBBC’s share of the results of businesses over which the BBC hassignificant influence but not control (associates) and those which the
BBC jointly controls (joint ventures).
The BBC accounts for its interests in associates and joint venturesusing the equity method. Using the equity method, the BBC presents
its interest in associates or joint ventures as a single line item in thebalance sheet, measured at the cost of the investment plus the shareof the net result, less dividends received. The equity-accounted result
for the year is presented as a single line item in the income statement.
Changes in the BBC’s interests in subsidiaries that do not result in aloss of control are accounted for as equity transactions, being
movements between reserves attributable to the BBC and noncontrolling interests. A non-controlling interest is the interest in a
subsidiary that is not owned, directly or indirectly, by the BBC. The
non-controlling interest reflects the amount of the net result for theyear and the net assets/(liabilities) which are not attributable to theBBC. The carrying amounts of non-controlling interests are adjusted
to reflect any changes in their, and the BBC’s, relative interests in thesubsidiaries. Any difference between the amount by which the
non-controlling interests are adjusted and the fair value of theconsideration paid or received is recognised directly in equity andattributed to the BBC.
When the BBC loses control of a subsidiary, the profit or loss on
disposal is calculated as the difference between (i) the aggregate of
the fair value of the consideration received and the fair value of any
retained interest and (ii) the previous carrying amount of the net
assets of the subsidiary (including attributable goodwill) and any
non-controlling interests. Amounts previously recognised in othercomprehensive income in relation to the subsidiary are reclassified tothe income statement or transferred directly to retained earnings asappropriate. The fair value of any interest retained in the former
subsidiary at the date when control is lost is regarded as the cost on
initial recognition of an investment in an associate or joint venture.
Foreign currency transactions
Transactions in foreign currencies are translated into the functional
currency of each entity of the Group at an average exchange rate.
Monetary assets and liabilities denominated in foreign currencies atthe balance sheet date are translated into sterling at the rate ofexchange ruling at that date. Foreign currency gains or losses arisingfrom the translation of assets and liabilities at these rates of
exchange, together with exchange differences arising fromtransactions settled during the year, are included in the income
statement within operating costs. Non-monetary assets andliabilities measured at historical cost are translated into sterlingat the rate of exchange on the date of initial recognition.
Financial statements of foreign operations
The assets and liabilities of foreign operations are translated into
sterling at the rate of exchange ruling at the balance sheet date.
The income and expenses of foreign operations are translated into
sterling at average rates of exchange ruling during the financial
period, which is a good approximation for the actual rate. Exchange
differences arising on translation are recognised directly in thetranslation reserve.
On disposal of an investment in a foreign operation, the associatedtranslation reserve balance is released to the income statement.
Adoption of new and revised accounting standards
The following new and revised standards and interpretations havebeen adopted for the first time, as they became effective for thisfinancial year:

220

Annual Report and Accounts 21/22— Covid-19—Related Rent Concessions (Amendment to IFRS 16).
The amendment permitted lessees, as a practical expedient, tonot assess whether particular rent concessions occurring as adirect consequence of the Covid-19 pandemic are leasemodifications and instead to account for those rent concessions
as if they are not lease modifications.
— Interest Rate Benchmark Reform—Phase 2 (Amendments to IFRS
9, IAS 39, IFRS 7, IFRS 4 and IFRS 16). The amendment focused on
the effects on financial statements when a company replaces theold interest rate benchmark with an alternative benchmark rate asa result of the reform.
These have been applied since 1 April 2021 and have not had asignificant impact on the results or financial position of the Group.
New standards and interpretations not yet adopted
At the date of authorisation of these financial statements, thefollowing standards and interpretations, which have not been appliedin these financial statements, were in issue but not yet effective (andin some cases had not yet been adopted by the UK).
— Reference to the Conceptual Framework (Amendments to IFRS 3
Business Combinations). The amendment replaced a reference for
the Framework for the Preparation and Presentation of Financial
Statements, issued in 1989 with a reference to the Conceptual
Framework for Financial Reporting, issued in March 2018 without
significantly changing its requirements. In addition, an exception
to the recognition principle of IFRS 3 to identify the liabilities
assumed in a business combination and an explicit statement thatan acquirer does not recognise contingent assets acquired in abusiness combination.
— Property, Plant and Equipment: Proceeds before Intended Use(Amendments to IAS 16). This amendment prohibits a company
from deducting from the cost of an item of property, plant andequipment any proceeds from selling items produced whilst
making that item of property, plant and equipment available for
its intended use, for example during a necessary testing orcommissioning period.
— Onerous Contracts – Cost of Fulfilling a Contract (Amendments
to IAS 37). Clarifying which costs should be considered inassessing whether a contract is onerous.
— Annual Improvements 2018 – 2020. Includes amendments madeto IFRS 1, IFRS 9, IFRS 16 and IAS 41.
— Classification of Liabilities as Current and Disclosure of
Accounting Policies (Amendments to IAS 1). This amendment
clarifies how an entity classifies debt and other financial liabilities
as current or non-current in particular circumstances.
— Definition of Accounting Estimate (Amendments to IAS 8). The
amendment introduces the definition of accounting estimates andhelps entities distinguish changes in accounting estimates fromchanges in accounting policies.
— Deferred Tax Related to Assets and Liabilities Arising from aSingle Transaction (Amendments to IAS 12). This amendment
requires companies to recognise deferred tax on transactions
that, on initial recognition, give rise to equal amounts of taxable
and deductible temporary differences.
— Insurance Contracts (Amendments to IFRS 17). This amendment
sets out the requirements for a company reporting information
about insurance contracts it issues and reinsurance contracts
it holds.
The directors do not expect that the adoption of the standards andinterpretations above would have a material impact on the financial
statements of the Group in future periods.

Return to contents

B. The BBC’s operations, income and expenditure
The BBC Group structure separates its Public Service Broadcasting (PSB) activities from Commercial operations.
The distinction between the various segments is important as the BBC must not cross-subsidise its commercial activities through its PSB
Group or grant-funded activities.
The PSB part of the BBC receives licence fee income for the purpose of making content available for licence fee payers. PSB Group therefore
owns many programme titles which have the potential to generate additional income through a more commercial market, for example airing
across other platforms, merchandising, etc.
BBC

Commercial
Group

PSB Group

Studios Group

Other Commercials

The commercial arm of the BBC Group is used to trade within that commercial market. They are self-funded and operate independently to the
PSB arm of the BBC Group. The profits generated are distributed back to PSB, through dividends and programme investment, thereby
contributing towards the funding of PSB activities.
The notes in this section provide information on the performance in the year for each segment of the BBC Group.
The BBC’s operating segments are reported in a manner consistent with the internal reports provided to the BBC Board, who are responsible
for making strategic decisions, allocating resources and assessing performance of the operating segments. They are noted as:

PSB Group

Studios GroupPSB is responsible for the BBC Public
services activities and provides a wide
range of programmes audiences acrossthe UK on television, radio and digitally.
Examples of some of its well known
services includes:

The Studios Group is the BBC’s
production and distribution business.
It creates, invests in, develops,
produces, commercialises anddistributes content which sits at theheart of the BBC schedule as well as
across multiple platforms and aroundthe world, delivering value back to thelicence fee consumer through support
for programme funding and cash
dividends. Examples of some of its
well known brands include: Top Gear,
Doctor Who and Green Planet.

Return to contents

Other commercials
Aggregated for reporting purposesconsisting of BBC Children’s
Productions Limited and thecommercial holding companies.
BBC Studioworks provides studios andpost production services to all major
UK broadcasters and production
companies.
BBC Children’s Productions Limited
develops and produces content foryoung audiences.

Financial statements

221

Financial statements
Notes to the accounts continued
B. The BBC’s operations, income and expenditure continued
BBC Global News Group operated the BBC’s international news channel and BBC.com, generating income through advertising andsponsorship as well as income from pay TV operators. On 1 July 2021 the BBC Global News Group, with the exception of the international
news channel, transferred into the Studios Group. The international news channel transferred into the PSB group on the same day. The BBC
Global News Group was recognised within the Other Commercials segment historically.
BBC Children’s Productions Limited will move to the Studios Group during 2022/23.
Group adjustments reflect eliminations required for trading activity between the segments detailed above.
Disclosures on the PSB Group expenditure can be found within the Strategic Report. Key policies adhered to are:— Spend by BBC service shows the cost to the licence fee payer of providing the relevant service and therefore excludes any costs funded
by a co-producer.
— For BBC Online, the service spend reflects the incremental costs of getting content to audiences unless the content is specificallycommissioned for this service.
This means the costs reported against individual services are not necessarily equivalent to the costs which would be incurred by such a service
on a stand-alone basis.
The prices charged for the services provided between PSB Group and the commercial activities are determined on an arm’s length basis inaccordance with Ofcom’s Trading and Separation Obligations and the BBC published transfer pricing methodologies.
Also included within this section is additional information to comply with Ofcom’s Commercial and Trading Reporting requirements.
Risk – Income recognition
There is a risk that income is not recognised correctly in line with financial reporting standards. The nature of the risk varies between
licence fee income in the public service and commercial income.
The BBC mitigates this risk by ensuring good financial controls are in place, and regularly reviewing material areas or complex judgementswith regards to income recognition (see page 106).

Judgement – Income recognition
Income recognition in the BBC’s commercial operations can be complex with a number of different income streams including sale ofcontent to global broadcasters, subscription income and income from the sale of physical and digital products. The complexity of individual
contractual terms may require the BBC to make judgements in assessing when the criteria for recognising income have been satisfied,particularly whether the BBC has sufficiently fulfilled its obligations under the contract to allow income to be recognised.

222

Annual Report and Accounts 21/22

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B. The BBC’s operations, income and expenditure continued
B1 Income and operating results
2022

Licence fee income
Total income from contracts with customers
Grant income
Rental and associated income
Other income

Note

PSB Group£mStudios Group
£m

Other
Commercials£mIntra-groupeliminations
£m

Group
£m

B2

3,800

–

–

–

3,800

B3.2

178
98
26
5

1,627
–
1
2

104
–
–
–

(498)
–
(13)
–

1,411
98
14
7

307

1,630

104

(511)

1,530

Total other income
Total income

B3.1

4,107

1,630

104

(511)

5,330

Depreciation and amortisation
Other operating costs

B6

(162)
(3,909)(195)(1,346)

(5)
(111)

3
494

(359)
(4,872)

Total operating costs
Share of results of associates and joint
venturesB7(4,071)(1,541)

(116)

497

(5,231)

Group operating surplus/(deficit)
Gain on disposal
Other gains and losses

E7

–

25

–

–

25

C2
C3

36
20
–

114
8
(13)

(12)
–
–

(14)
–
–

124
28
(13)

56

109

(12)

(14)

139

Operating segment result
Financing income
Financing costs

C4
C4

103
(56)

Net financing costs

C4

47

C5.1

186
20

Surplus before taxation
Taxation
Surplus for the year206

On 1 July 2021 the BBC Global News Group, with the exception of the international news channel, transferred into the Studios Group.
The international news channel transferred into the PSB Group on the same day. The table above therefore includes three months of the
BBC Global News Group within Other Commercials and nine months within the Studios Group and PSB Group. For the comparatives, the
BBC Global News Group are all included within Other Commercials.

Return to contents

Financial statements

223

Financial statements
Notes to the accounts continued
B. The BBC’s operations, income and expenditure continued
B1 Income and operating results continued
The tables in this section demonstrate how each of our different operating segments have performed over the past 12 months and how
we internally monitor and report our results. The Commercial segments (Studios Group and Other Commercials) will be aiming tomaximise their long-term operating profits to provide Commercial returns back to the BBC Group. The PSB operating segment isclosely monitored on its effective use of the licence fee and the public services it provides. Its primary obligation is delivering value for
all audiences.

2021

Licence fee income
Total income from contracts with customers
Grant income
Rental and associated income
Other income

Note

PSB Group£mStudios Group
£m

Other
Commercials£mIntra-groupeliminations
£m

Group
£m

B2

3,750

–

–

–

3,750

B3.2

146
88
30
3

1,255
–
–
–

146
–
–
–

(338)
–
(14)
(2)

1,209
88
16
1

267

1,255

146

(354)

1,314

Total other income
Total income

B3.1

4,017

1,255

146

(354)

5,064

Depreciation and amortisation
Other operating costs

B6

(178)
(3,581)(233)(1,020)

(6)
(158)

4
373

(413)
(4,386)

Total operating costs
Share of results of associates and joint
venturesB7(3,759)(1,253)

(164)

377

(4,799)

E7

–

25

–

–

25

C2
C3

258
–
–

27
(1)
(6)

(18)
–
4

23
–
–

290
(1)
(2)

258

20

(14)

23

287

Group operating surplus/(deficit)
Loss on disposal
Other gains and losses
Operating segment result
Financing income
Financing costs

C4
C4

26
(100)

Net financing costs

C4

(74)

C5.1

213
14

Surplus before taxation
Taxation
Surplus for the year

227

B2 Licence fee income
Income from television licences is treated as an amount due from the DCMS. This represents the value of licences issued in the year, less adeduction for refunds, cancellations and estimated impairment of licence fee sales debt.
The BBC collects the licence fee on behalf of the Government’s consolidated fund. Licence fee income is then drawn down from theconsolidated fund by DCMS and passed back to the BBC as grant in aid.

Licence fee
2022£

Licences in force
as at 31 March
2022
‘000

159.0053.50
7.50

Total income
2022£m

Licence fee
2021£

Licences in force
as at 31 March
2021
‘000

23,740
4
128

3,783
–
1
16

157.5053.00
7.50

23,733
4
112

3,730
–
1
16

Total paid-for licences
BBC funded*
General notice coverage^

23,872
1,034
–

3,800
–
–

23,849
983
376

3,747
–
–

Received from the DWP (over-75s)

24,906–3,800–

25,208–3,747
3

Received from the DCMS
Colour
Monochrome
Concessionary
Quarterly payment scheme premium

Total licence fee income

224

Annual Report and Accounts 21/22

3,800

Return to contents

Total income
2021
£m

3,750

B. The BBC’s operations, income and expenditure continued
B2 Licence fee income continued*

Primarily relates to free licences issued to anyone over 75 who receive Pension Credit Licence holders who are over 75 and resident in an Accommodation for Residential Care (ARC)
scheme or an ARC scheme with Preserved Rights are also eligible for a free licence For the Crown Dependencies, equivalent arrangements were put in place, starting from 1 January
2021, based on local benefits^ The prior year includes coverage provided by the General Notice published in July 2020 as part of the transition to the new over 75 policy arrangements

During the year 3 million (2021: 3 million) colour licences were issued under the quarterly payment scheme at a premium of £5 each (2021: £5).
B3 Other income
Income from contracts with customers
Income is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third
parties. Income recognition is based on the delivery of performance obligations and an assessment of when control is transferred to thecustomer. The complexity of individual contractual terms may require the BBC to make judgements in assessing when the triggers forincome recognition have been met, particularly whether the BBC has sufficiently fulfilled its obligations under the contract to allow income
to be recognised.
Income is recognised either when the performance obligation in the contract has been performed (‘point in time’) or ‘over time’ as controlof the performance obligation is transferred to the customer. A performance obligation must meet one of the three criteria in IFRS 15
Revenue to meet ‘over time’ recognition. The default category, if none of these criteria are met, is ‘point in time’ recognition. Further detailon the category of income recognition for each income stream can be found below.
IFRS 15 provides more comprehensive guidance for contracts to licence intellectual property, or contracts where licence of intellectual
property is a significant component. Each performance obligation is identified and evaluated as to whether it represents a right to accessthe content (income recognised over time) or represents a right to use the content (income recognised at a point in time), and all three ofthe criteria referred to above must be met to meet the definition of a ‘right to access’ licence. The majority of the Group’s contracts tolicence intellectual property have defaulted to a ‘right to use’ licence and recognised at a ‘point in time’.
Content and format sales
Licence fees from programme content and programme formats are recognised on the latter of the start of the licence period (taking into
account any holdback dates) or when the Group’s performance obligations have been satisfied. For content sales the performanceobligation will generally be to deliver the associated programme to the customer, therefore income is recognised ‘episodically’ – on deliveryof each episode. For format sales, there are two performance obligations – to provide the format ‘bible’ and in some cases production
assistance. Income is allocated to each of these performance obligations based on stand-alone selling prices and recognition at the two
separate ‘points in time’. The payment terms are over the term of the contract.
Production income
Production income is recognised on delivery of the related programme or on a stage of completion basis, depending on the nature of thecontract with the customer. Income is recognised either when the performance obligation in the contract has been performed (‘point intime’ recognition) or ‘over time’ as control of the performance obligation is transferred to the customer. The payment terms are over theterm of the contract.
Subscription fees
Subscription fees on pay channel platforms and from subscriptions to print and online publications and services are recognised as earned,
pro-rata over the subscription period. The performance obligation is to provide the subscription service over the period of the contract.
This performance obligation meets the definition of ‘right to access’ as the customer simultaneously receives and consumes the benefits as
the Group provides the service. Therefore, subscription fee income is recognised ‘over time’. Minimum guarantees related to subscription
fee income are recognised pro-rata straight line over the contract life, in line with ‘over time’ recognition. The payment terms are quarterly
in arrears.
Advertising income
Advertising income is recognised on transmission or publication of the advertisement. The performance obligation is satisfied at this ‘point
in time’ – when each advertisement occurs. The payment terms are over the term of the contract.
Consumer products
Income generated from the sale of consumer products (merchandising) is recognised at the time of delivery. Income from the sale of goods
is stated net of deductions for actual and expected returns based on management judgement and historical experience. The performanceobligation is delivery of the products, and therefore income is recognised at a ‘point in time’. The payment terms are over the term of thecontract.
Royalties
Royalty income arising from sales and usage-based royalties are recognised at the later of when the subsequent sales or usage occurs, orthe performance obligation has been satisfied except where there is insufficient data to measure this and then royalty income is measured
on a cash basis. The value of income recognised on a cash basis is immaterial to the accounts. Minimum guarantees related to royalty
income are recognised on delivery of the completed content to the customer, with any subsequent royalties recognised as earned.
Therefore, royalty income is recognised at a ‘point in time’. The payment terms are over the term of the contract.
Grant income
Grants from Government departments are recognised as income in the financial year that they relate to. Grants from other public bodies
are recognised as income consistently with the related costs, provided that there is reasonable assurance that the BBC will comply with any
conditions attached to the grant and that the grant will be received.
Rental income
Rental income is recognised on a straight-line basis over the term of the lease.
Other income
Other income arises from activities such as the sale of goods, provision of services and granting of licences. Income is measured after
deductions for value added tax, any other sales taxes, trade discounts and sales between BBC companies. The recognition point varies
depending on the nature of the revenue stream.

Return to contents

Financial statements

225

Financial statements
Notes to the accounts continued
B. The BBC’s operations, income and expenditure continued
B3 Other income continued
B3.1 PSB Income
2022
External
income£m

2021

Intra-group
income£m

Total
income£mExternal
income£m

Intra-group
income£m

Total
income
£m

3,800

–

3,800

3,750

–

3,750

Content and format sales
Production income
Royalties
Advertising income
Consumer products
Other contract income

8
32
26
2
9
3

10
8
44
–
2
34

18
40
70
2
11
37

7
30
22
1
6
3

23
5
18
–
–
31

30
35
40
1
6
34

Total income from contracts with customers

80

98

178

69

77

146

Grant income
Rental and associated income
Other income

98
13
5

–
13
–

98
26
5

88
16
1

–
14
2

88
30
3

Total other income

116

13

129

105

16

121

Total income

3,996

111

4,107

3,924

93

4,017

Note

PSB Group£mStudios Group
£m

Other
Commercials£mIntra-groupeliminations
£m

Group
£m

18
40
70
2
–
11
37

344
630
60
294
218
81
–

–
84
–
12
8
–
–

(11)
(404)
(44)
(2)
–
(2)
(35)

351
350
86
306
226
90
2

178

1,627

104

(498)

1,411

111
67

1,409
218

60
44

(452)
(46)

1,128
283

178

1,627

104

(498)

1,411

Licence fee income

B3.2 Income from contracts with customers

2022

Income streams
Content and format sales
Production income
Royalties
Advertising income
Subscription fees
Consumer products
Other contract income
B1, B3.1
Timing of transfer of goods and services
At a point in time
Over time
B1

This table details the BBC’s external sources of contract income by operating segment and the timing of how the income is received.
B. The BBC’s operations, income and expenditure continued
B3 Other income continued
2021

Note

Income streams
Content and format sales
Production income
Royalties
Advertising income
Subscription fees
Consumer products
Other contract income
B1, B3.1
Timing of transfer of goods and services
At a point in time
Over timeB1

226

Annual Report and Accounts 21/22

PSB Group£mStudios Group
£m

Other
Commercials£mIntra-groupeliminations
£m

Group
£m

30
35
40
1
–
6
34

358
391
40
171
215
80
–

–
55
–
47
44
–
–

(29)
(257)
(18)
(3)
–
–
(31)

359
224
62
216
259
86
3

146

1,255

146

(338)

1,209

81
65

1,040
215

109
37

(296)
(42)

934
275

146

1,255

146

(338)

1,209

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B. The BBC’s operations, income and expenditure continued
B3 Other income continued
B3.3 Transaction price allocated to the remaining performance obligations
The following table includes income expected to be recognised in the future related to the performance obligations that are unsatisfied (orpartially unsatisfied) at the reporting date.

Content and format sales
Production income
Royalties
Advertising income
Subscription fees
Consumer products

2023
£m

2024
£m

2025
£m

Beyond
£m

108
417
6
233
91
1

34
79
4
220
48
–

22
114
4
217
20
–

27
244
1
623
11
–

856

385

377

906

This table details the amounts still due under contracts that have not yet been fulfilled. This therefore gives an indication of when that
income is expected to be recognised in the future.
The BBC applies the practical expedient allowable by paragraph 121 of IFRS 15 and does not disclose information about the remaining
performance obligations that have original expected durations of one year or less.
B3.4 Contract costs
Costs of obtaining long-term contracts and costs of fulfilling contracts
The costs of fulfilling contracts do not result in the recognition of a separate asset because:— such costs are included in the carrying amount of inventory for contracts involving the sale of goods; and— for service contracts, income is recognised over time by reference to the stage of completion, meaning that control of the asset istransferred to the customer on a continuous basis as work is carried out. Consequently, no asset for work in progress is recognised.
The Group has taken advantage of the practical exemptions:— not to account for significant financing components where the time difference between receiving consideration and transferring control
of goods (or services) to its customer is one year or less; and— to expense the incremental costs of obtaining a contract when the amortisation period of the asset otherwise recognised would havebeen one year or less.
There were no capitalised commission fees or any other material contract costs in the current year or prior year.
B4 Geographical location of non-current assets and income
2022

Non-current assets excluding deferred tax and financial
instruments:
UK
America
Australia
Rest of world

Additions included in non-current assets and investments
External income:UK
America
Australia
Rest of world*

PSB Group£mStudios Group
£m

Other
Commercials£mIntra-groupeliminations
£m

Group
£m

2,345
11
–
41

509
191
13
5

330
–
–
–

676
–
–
–

3,860
202
13
46

2,397

718

330

676

4,121

72

259

4

–

335

4,084
11
1
11

760
374
86
410

84
4
–
16

(511)
–
–
–

4,417
389
87
437

4,107

1,630

104

(511)

5,330

Return to contents

Financial statements

227

Financial statements
Notes to the accounts continued
B. The BBC’s operations, income and expenditure continued
B4 Geographical location of non-current assets and income continued
2021

Non-current assets excluding deferred tax and financial
instruments:
UK
America
Australia
Rest of world

Additions included in non-current assets and investments
External income:UK
America
Australia
Rest of world**

PSB Group£mStudios Group
£m

Other
Commercials£mIntra-groupeliminations
£m

Group
£m

2,409
5
–
51

470
167
14
7

295
–
–
1

(335)
–
–
–

2,839
172
14
59

2,465

658

296

(335)

3,084

54

200

6

(14)

246

3,997
12
1
7

546
275
64
370

55
27
2
62

(354)
–
–
–

4,244
314
67
439

4,017

1,255

146

(354)

5,064

No individual country within the rest of world category is more than 3% of sales

Non-current assets are the Group’s long-term investments where the full value will not be realised within an accounting year.
The allocation of income and non-current assets to geographical segments is based upon the business region in which the income isgenerated/assets reside.
Further analysis of the Group’s income by product or service line is not provided as this information is not routinely reported to the Board.
B5 Contribution from commercial activities
A dividend of £144 million (2021: £73 million) was declared by BBC Commercial Limited to the PSB Group.
In the year ended 31 March 2022, the following dividends were declared to BBC Commercial Limited:— £135 million by BBC Studios (2021: no dividend declared)— £3 million by BBC Studioworks Limited (2021: £1 million)
The dividends above are not identifiable in the consolidated primary statements as they are eliminated upon consolidation.
A dividend of £4 million (2021: £2 million) was paid to non-controlling interests.

228

Annual Report and Accounts 21/22

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B. The BBC’s operations, income and expenditure continued
B6 Total operating costs
The accounting policies for the sections below are detailed within their respective balance sheet notes with the exception of development andresearch costs.
Development spend funds the near-term development of new platforms and services, particularly for BBC Online. This is primarily focusedon new features for existing services and also includes related support and overhead costs.
It is distinct from research department costs which is focused on much longer-term research of new technology and standards that benefit
the whole industry.
Total operating costs have been arrived at after charging the following items:
NoteIntangible fixed assets, property, plant and equipment and other investments
Depreciation– owned assets– leased assets
Amortisation of intangible fixed assets
Impairment of investments in associates and joint ventures
Impairment of investments
Inventories
Write-downs of programme-related assets recognised as an expense
Other operating costs
Staff costs
Online and TV development
Research costs
Net exchange differences on settled transactions
Expenses relating to short-term leases
Audit fees (see below)
Impairment of trade receivables
Expenses relating to leases of low-value assets, excluding short-term leases

E4
F1, F3
E2
E7

D2

F5
H1.4
F5

2022
£m

2021
£m

77
92
190
2
–

92
90
231
45
2

2

2

1,469
44
14
5
17
3
1
–

1,477
45
16
13
5
3
4
1

Research costs are incurred to explore ideas for new programmes or assets, such as BBC iPlayer. Research costs are where the ideas
are generated, some of which are then developed further into a plan or design where the costs are then categorised as development.
The Comptroller and Auditor General is the statutory external auditor for the BBC Group. The National Audit Office provided external audit
services on behalf of the C&AG for the financial years ended 31 March 2022 and 31 March 2021.
The following table presents the aggregate fees for the external audit (including the audit of nations and pay disclosures) undertaken by the
National Audit Office.
No additional services were provided by the Comptroller and Auditor General or National Audit Office during 2021/22 or 2020/21.
2022
£m

2021
£m

For the audit of the BBC’s annual accounts
For the audit of subsidiaries of the BBC

1
2

1
2

Total fees paid

33Non-audit services with other auditors (primarily taxation compliance services) totalled £100,000 (2021: £400,000)
B7 Analysis of total operating costs by commercial activities
Studios Group

Other Commercials

Total Commercials

2022
£m

2021
£m

2022
£m

2021
£m

2022
£m

2021
£m

Cost of sales
Distribution costs
Administration expenses

1,180
162
199

883
100
270

100
–
16

144
–
20

1,280
162
215

1,027
100
290

Total operating costs

1,541

1,253

116

164

1,657

1,417

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Financial statements

229

Financial statements
Notes to the accounts continued
C. Other profit and loss items
This section provides information relating to the following areas of the income statement:
Acquisitions and disposals
The BBC operates within a competitive market, and in order to ensure the BBC remains competitive and innovative within the market place,commercial decisions are made to sometimes acquire other commercial operations or dispose of its existing assets and investments.
Other gains and losses
The BBC generates gains and losses which are unrelated to its normal course of business. These gains and losses are associated with thereclassification of certain financial assets which are separately disclosed.
Net financing costs
The BBC incurs interest and other costs associated with the borrowing of funds which largely relate to our bank borrowings, leases and theunwinding of discount applied to its longer term payables. Financing income is largely generated by the BBC on the cash it holds in the bank,including its investments returns during the year and the unwinding of discounts applied to its longer term receivables. Also included in net
financing costs is the fair value movement of financial instruments used to manage the risk of interest rate fluctuations and fix the payment
profile of lease repayments. Depending on market movements, these fair value changes could be classified as either income or expense in
the year.
Taxation
The BBC Group’s public sector ‘free-to-air’ broadcasting activities are not subject to taxation, and the tax charge therefore is primarily driven
by the results of the commercial businesses. The PSB Group is liable to taxation on activities yielding a taxable profit including rent, royalties
and interest receivable and does not therefore receive taxation relief for all its expenditure. The commercial subsidiaries in the BBC Group are
taxed in accordance with tax legislation.
Judgements – Acquisitions
All identified assets and liabilities included within an acquisition are recognised at fair value as at the acquisition date. Fair value isdetermined by what could be exchanged between knowledgeable, willing parties in an arm’s length transaction. Judgement is required indetermining the valuation method for each identifiable asset and liability, which is specific for each category based on the most appropriate
valuation method – including the cost, income and market approaches. Judgement is also required when assessing the appropriate
economic useful lives for assets acquired.

Judgements – Net finance costs
Net finance costs is the difference between the expected return on assets and the interest liabilities. For long term receivables (where theright to receive consideration exceeds one year) and long term payables (where the obligation to pay consideration exceeds one year) an
effective interest rate is used to discount future cash flows over the life of the contract back to its present value. Judgement is required indetermining the value of the effective interest rate so it reflects current market assessment of the time value of money.
C1 Acquisitions
Business combinations
The acquisition of subsidiaries is accounted for using the acquisition method. The cost of an acquisition is measured at the aggregate of thefair values, at the date of exchange, of assets given by the BBC in exchange for control of the acquiree. The acquiree’s identifiable assets,
liabilities and contingent liabilities that meet the conditions for recognition under IFRS 3 are recognised at their fair value at the acquisition
date. Subsequent adjustments to the fair values of net assets acquired are made within 12 months of the acquisition date where original fairvalues were determined provisionally. These adjustments are accounted for from the date of acquisition. Transaction costs that the BBC
incurs in connection with a business combination, such as legal fees, due diligence fees and other professional and consulting fees, areexpensed as incurred. On acquisition, the BBC recognises any non-controlling interest either at fair value or at the non-controllinginterest’s proportionate share of net assets. When control is obtained in successive share purchases (a ‘step acquisition’) it is accounted forusing the acquisition method at the acquisition date. The previously held interest is remeasured to fair value at the acquisition date and again or loss is recognised in the income statement.
Acquisitions
All identified assets and liabilities included within an acquisition are recognised at fair value as at the acquisition date.
House Production
BBC Studios Distribution Limited previously held a 25% share in House Productions Limited and on 13th December 2021 purchased theremaining stake. This took the shareholding to 100%, thus House Productions Limited became a wholly owned subsidiary of BBC Studios
Distribution Limited. The initial investment was revalued on acquisition at a fair value of £8 million compared to a carrying amount of£2 million. As at 31 March 2022, House Productions Limited is fully consolidated, recognising goodwill of £13 million and removing theamount held as an associate investment of £2 million.

230

Annual Report and Accounts 21/22

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C. Other profit and loss items continued
C2 Gains/(losses) on disposals
Note

Gain on available for sale assets
Gain/(loss) on deemed disposal of associates
Gain on disposal of interests in joint ventures and associates
Other gains

E6
C1

2022
£m

2021
£m

20
6
1
1

–
(2)
1
–

28

(1)

Deemed disposal gains and losses were driven by the BBC increasing its investment leading to the reclassification to that of a
subsidiary. The entity would therefore be consolidated as such and hence a deemed disposal recognised for the equity investment
previously held.
C3 Other gains and losses
The table below provides a summary of the movements in fair value of certain financial instruments of the BBC.

Change in fair value of derivative financial instruments
Change in fair value of put options over non-controlling interests
Change in earn-out payments due in respect of prior acquisitions

2022
£m

2021
£m

(3)
(10)
–

4
(4)
(2)

(13)

(2)

A derivative is an asset or liability that derives its value from another asset or liability and is to be settled at a future date. The
underlying asset/liability can be any other product such as foreign currency, interest rate, share, index or commodity. The BBC
primarily holds forward currency contracts (to fix a future exchange rate) and interest rate swaps (to fix future interest rates charges).
The value of derivatives are derived from fluctuations in the underlying asset/liability.
A put option issued by the BBC provides the holder the rights, but not the obligation, to require the BBC to buy shares at a future dateand price determined by the option agreement.
An earn-out payment is a contractual obligation in which the BBC has agreed future compensation to the relevant party if thebusiness achieves certain financial goals following its acquisition.
C4 Net financing costs
Set out below is an analysis of the financing income and expenses incurred in the year. These amounts include interest relating to leaseliabilities (see Note F2) and defined benefit pension schemes (see Note D6).
Note

Financing income
Interest income
Unwinding of discounted receivables
Fair value gains on financial instruments classified as fair value through surplus/(deficit)

Net interest income on pension plan liabilities

D6.3

Financing costs
Interest expense
Unwinding of discounted payables
Change in fair value of instruments classified as fair value through surplus/(deficit)
Interest on obligations under leases
Net financing income/(costs)

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F5

2022
£m

2021
£m

3
21
75

3
14
1

99

18

4

8

103

26

(4)
–
–
(52)

(9)
(4)
(34)
(53)

(56)

(100)

47

(74)

Financial statements

231

Financial statements
Notes to the accounts continued
C. Other profit and loss items continued
C5 Taxation
The tax charge for the period comprises both tax currently payable and deferred tax. Taxation is recognised in the income statement except
to the extent that it relates to items recognised directly in reserves, in which case it is recognised in reserves.
Current tax is the expected tax payable for the year, using tax rates that are enacted or substantively enacted at the balance sheet date,
and any adjustment to tax payable in respect of previous years. In respect of tax currently payable:— the PSB Group is not liable to corporation tax on any surplus licence fee income or grants received from Government departments;
however, it is fully liable for corporation tax on capital gains and on all its other external income. Expenditure on capital assets is not
eligible for capital allowances giving rise to temporary differences that would lead to deferred tax assets or liabilities. Movements of fairvalue adjustments in the income statement give rise to deferred tax balances; and— the BBC’s commercial subsidiaries are liable for corporation tax based on taxable profit for the year.
Current tax assets and current tax liabilities are offset if, and only if, there is a legally enforceable right to set off the recognised amounts; andthe entity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Deferred tax is provided using the balance sheet liability method on any temporary differences between the carrying amounts of assets andliabilities for financial reporting purposes and the amounts used for taxation purposes. The amount of deferred tax provided is based on the
tax rates expected to apply in the period when the liability is settled or the asset is realised using tax rates enacted or substantively enacted
at the balance sheet date.
Deferred tax assets and deferred tax liabilities are offset only where there is a legally enforceable right to offset current tax assets against
current tax liabilities; and the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority
on either:— the same taxable entity; or— different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle theliabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled
or recovered.
C5.1 Recognised in the income statement
The charge for the year, based on the rate of corporation tax of 19% (2021: 19%) comprised:
2022
£m

2021
£m

Current tax
UK corporation tax
Foreign tax
Adjustments in respect of prior years

30
(25)
11

16
(20)
7

Total current tax

16

3

Deferred tax
Origination and reversal of temporary differences
Changes in tax rate
Adjustments in respect of prior years

(4)
8
–

9
–
2

Note

Total deferred tax
Total taxation in the consolidated income statement

232

Annual Report and Accounts 21/22

C5.2

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4

11

20

14

C. Other profit and loss items continued
C5 Taxation continued
C5.2 Reconciliation of taxation expense
Note

Surplus before tax
Surplus before tax multiplied by standard rate of corporation tax in the UKof 19% (2021: 19%)
Effects of:
Public service activities
Public service taxable external income
Non-taxable public service activities
Commercial activities
Disallowed expenditure (including goodwill impairment)
High-end television tax relief
Tax differential on overseas earnings
Changes in the tax rate
Adjustments in respect of prior years
Total tax for the year

C5.1

2022
£m

2021
£m

186

213

(35)

(40)

(5)
(17)

(6)
30

8
59
(9)
8
11

(4)
30
(5)
–
9

20

14

The tax charge is driven by the results of the commercial businesses, as the Group’s public sector ‘free-to-air’ broadcasting activities are notsubject to taxation.
C5.3 Factors that may affect future tax charges
The UK corporation tax rate is 19%.
The Chancellor announced on 3 March 2021 that the current corporation tax rate of 19% would increase to 25%, with effect from 1 April
2023. This was substantively enacted on 24 May 2021 and therefore the deferred tax liabilities arising have been recognised using a rateof 25%.
There are many future changes to worldwide taxation systems as a result of the potential adoption by the UK and individual territories ofmeasures relating to the OECD Base Erosion and Profit Shifting Actions. The Group continues to actively monitor any developments andevaluate their potential impact. The Group does not expect the future tax rate to be materially impacted by these changes to the international
tax landscape.
C5.4 Current tax asset
The current tax asset totalling £88 million (2021: £52 million) includes £59 million (2021: £30 million) due in respect of industry film and tax
credits outstanding on high-end drama, comedy, natural history and factual productions.
C5.5 Deferred tax assets/(liabilities)
Fixed asset
temporarydifferences£m

Provisions£mFinancial
instruments£m

Associates andjoint ventures£m

Programmerights
£m

Other
£m

Net deferred tax(liability)/asset£m

At 1 April 2021
Credit/(charge) to theincome statement
Charge to reserves
Exchange movements

7

11

(5)

(21)

(7)

–

(15)

2
–
1

7
–
–

(1)
3
–

–
–
–

–
–
–

(4)
–
1

4
3
2

At 31 March 2022

10

18

(3)

(21)

(7)

(3)

(6)

2022
£m

2021
£m

22
(28)

14
(29)

(6)

(15)

Deferred tax asset/(liability) presented within

Non-current assets
Non-current liabilities

Deferred tax is the amount of income tax payable or recoverable in future periods in respect of taxable or deductible temporary
differences, the carry forward of unused losses, and/or the carry forward of unused tax credits.
Temporary differences are differences between the carrying amount of an asset or liability in the statement of financial position andits tax base, where the tax base of an asset or liability is the amount attributed to that asset or liability for tax purposes.
The BBC has unrecognised deferred tax assets arising on capital losses totalling £137 million (2021: £137 million) and trade losses totalling£23 million (2021: £23 million). These assets have not been recognised on the basis that there is insufficient certainty that future gains or
profits will arise against which the BBC can utilise these losses.
The BBC also has unrecognised deferred tax assets on non-trade loan relationship losses totalling £14 million (2021: £14 million). These assets
have not been recognised on the basis that there is insufficient certainty that future gains or profits will arise against which the BBC can utilise
these losses.
There is no time limit for the utilisation of either of these losses and the position is reviewed annually.
C5.6 Current tax liabilities
Current tax liabilities totalling £14 million (2021: £11 million) are due in UK jurisdictions.

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Financial statements

233

Financial statements
Notes to the accounts continued
D. What the BBC spends on its people
The BBC employs a significant number of people. It also provides pension benefits to both current and past employees. This section is broken
into two main parts; the first details employee numbers (excluding freelancers and agency staff), staff costs and transactions with membersof the BBC Board and BBC Executive Committee who served during the year. The second presents the key information relating to the BBCGroup’s pension plans.
The analysis provided in the pension notes is based on the IAS 19 Employee Benefits estimate of the scheme’s assets and liabilities as at
31 March 2022. This accounting valuation provides a snapshot of the scheme at the year-end date and is therefore sensitive to short-term
fluctuations within markets.
To ensure the scheme is adequately funded to meet its liabilities, a statutory triennial actuarial valuation is also performed as an appraisalof the fund’s assets versus liabilities. This will often differ to the IAS 19 accounting valuation due to the difference in discount rates used todetermine the liability. Whilst the actuarial valuation uses discount rates based on gilts, the accounting valuation uses discount rates basedon high credit corporate bonds. Generally therefore, the accounting valuation presents a more favourable funding position than that required
on an actuarial basis.
The triennial actuarial valuation as at 1 April 2022 is currently underway.
Risk – Defined benefit pension scheme
Changes in the assumptions used to calculate the IAS 19 valuation of the BBC’s defined benefit pension scheme can result in large swings
in the final numbers disclosed. The BBC therefore carries a risk of a material misstatement arising on this highly judgemental area if theassumptions used are not appropriate.
Sensitivity analysis on these assumptions (discount, inflation and mortality rates) is presented in note D7.5 to reflect the impact of this risk.
The defined benefit pension scheme exposes the BBC to the following actuarial risks:
Risk

Description

Investment risk

Actual returns may differ from expected returns. Investments are diversified, across and within asset classes, toavoid over-exposure to any one asset class or market.

Currency risk

Scheme assets are subject to currency risk because some of the Scheme’s investments are held in overseas
markets, either as segregated investments or via pooled investment vehicles (PIV). The Trustees limit overseas
currency exposure through a currency hedging policy which seeks to partially hedge the major currency
exposures (Euro and US dollar).

Counterparty risk

A counterparty may default whilst owing money to the scheme. Collateral is posted by the counterparty forlong-term transactions when the valuation of the transaction is favourable to the scheme.

Interest rate risk

A fall in interest rates would cause the present value of liabilities to rise. To mitigate this risk, the scheme’s
Trustees invest in bonds, derivatives and other investments with predictable long-term cash flows that will tend
to rise in price if interest rates fall.

Longevity risk

Longer life expectancy would increase the Scheme’s liabilities. The Scheme’s Trustees regularly assess thepossibility and value of hedging the Scheme’s longevity risk. The scheme has also taken out a longevity hedge tocover approximately one third of the pension liability.

Inflation risk

An increase in expected inflation will cause the present value of liabilities to rise if it is not accompanied by a risein interest rates. To mitigate this risk, the scheme’s Trustees invest in index-linked bonds, derivatives and otherassets where value is likely to increase if inflation rises.

Liquidity risk

The scheme may not have sufficient liquid assets to allow it to meet its liabilities and other obligations as theyfall due. The amount of cash held to pay benefits is assessed well in advance to minimise unforeseen sales andtransaction costs and the large majority of the scheme’s assets are invested in highly liquid assets.

Judgement – defined benefit pension scheme
Judgement is required when determining the assumptions used in calculating the pension costs and obligations of the BBC’s defined
benefit schemes. These include the discount rate, inflation rate and mortality.
The BBC mitigates this risk by using assumptions recommended by independent actuarial specialists and seeking approval of these fromthe Audit and Risk Committee (see page 107).

234

Annual Report and Accounts 21/22

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D. What the BBC spends on its people continued
D1 Persons employed
The average full-time equivalent number of persons employed in the year was:
2022

2021*

Staff excluding
apprentices

Apprentices

Total Number

Total Number

PSB Group
Studios Group^
Other commercials^

17,738
3,155
232

152
4
–

17,8903,159
232

18,9772,723
519

Group total

21,125

156

21,281

22,219Average* Apprentices data is not separable for the whole of the prior year to calculate the average^ Other commercials included only 3 months of Global News Limited in the current year as it moved into the Studios Group on 1 July 2022

Within the averages above 2,606 (2021: 2,998) part-time employees have been included at their full-time equivalent of 1,683 (2021: 1,923).
In addition to the above, the BBC employed an average full-time equivalent of 1,521 (2021: 1,067) persons on a casual contract.
The full-time equivalent number of persons employed at 31 March was:
2022

2021

Staff excluding
apprentices

Apprentices

PSB Group
Studios Group^
Other commercials^

17,5313,315
140Group total

20,986

At 31 March

Total Number

Staff excluding
apprentices

Apprentices

Total Number

250
16
–

17,7813,331
140

18,044
2,780
523

146
–
–

18,190
2,780
523

266

21,252

21,347

146

21,493^ Other commercials included Global News Limited in the prior year It moved into the Studios Group on 1 July 2022

D2 Employee remuneration
Other employee benefits
Other short and long-term employee benefits, including holiday pay and long service leave, are recognised as an expense over the period inwhich they accrue.
Termination benefits
Termination benefits (redundancy costs) are expensed at the earlier of when the BBC can no longer withdraw the offer of those benefits
and when the BBC recognises costs for a restructure.
Note

Salaries and wages
Social security costs
Pension costs
Main scheme (defined benefit)
Other schemes

D6.3
D6.3

2022
£m

2021
£m

1,049
134

1,087
131

216
70

192
67

1,469

1,477

Employee pension contributions made via salary sacrifice are included within pension costs, with a corresponding reduction in salaries
and wages.
D3 Remuneration of the BBC Board
The total emoluments of the members of the BBC Board and BBC Executive Committee are disclosed in the Remuneration Report.
D4 Key management personnel compensation
Key management personnel are those people who have authority and responsibility for planning, directing and controlling the activitiesof the BBC. This includes members of the BBC Board and BBC Executive Committee, including the non-executive directors (see the
BBC Remuneration Report).
At 31 March 2022, 19 individuals were classified as key management personnel (2021: 18).
Information about the BBC’s structure, senior staff salaries and expenses are published on the BBC’s website.

Short-term employee benefits
Post-employment benefits

2022
£m

2021
£m

4.6
0.2

5.2
0.2

4.8

5.4

D5 Related party transactions with key management personnel
Ian Hargreaves’ daughter, Zola Hargreaves, has been contracted as a researcher on a freelance basis by BBC Wales and received a trivial
amount under this contract.
Tanni Grey-Thompson (non-executive director) received a trivial amount as an on-air contributor during the year.

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Financial statements

235

Financial statements
Notes to the accounts continued
D. What the BBC spends on its people continued
D6 Group pension plans
		 Defined contribution plans
		 The BBC Group’s defined contribution pension plans do not give rise to balance sheet pension assets/liabilities as there is no ongoing
liability for the employer from these plans once the contributions due for the year have been settled.
		

The amounts charged as expenditure for the defined contribution plans represent the contributions payable by the BBC for theaccounting period.
Defined benefit plans
The BBC Group has two defined benefit pension schemes, the BBC Pension Scheme and the Unfunded Scheme.
The defined benefit pension schemes give rise to net assets which are included on the BBC Group balance sheet as the BBC bears therisks of investment returns, life expectancies and inflation, which impact the future pension payment amounts. The net position consistsof two parts:— Scheme liabilities: the present value of the future pension payments the BBC is required to pay in respect of employee service
performed up to the balance sheet date; and— Scheme assets: the assets held by the pension fund, into which the BBC pays annual contributions. These assets are used to fund thepayments to retired members and to generate returns to fund future pension payments.
The defined benefit plans, of which a significant minority of staff are members, provide benefits based on pensionable pay. The assets of
the BBC’s Pension Scheme are held separately from those of the BBC.
Pension scheme assets are measured at fair value. Pension scheme liabilities are measured using the projected unit credit method.
The present value of scheme liabilities is calculated by discounting estimated future cash outflows at the current rate of return on ahigh-quality corporate bond of equivalent term and currency to the liabilities.
Should the pension scheme be in a net asset position, under the Pension Scheme rules, the BBC considers that they are entitled to any
surplus on the pension scheme in the event that it is wound up. It is the actuarial valuation, as opposed to the IAS 19 estimate, which
would be used to determine the amount due if the scheme was wound up.
Remeasurement comprising gains and losses and the return on scheme assets (excluding interest) are recognised immediately in thebalance sheet with a charge or credit to the statement of comprehensive income in the period in which they occur.
Remeasurement recorded in the statement of comprehensive income is not recycled through the income statement. When the benefitsof a plan are changed the resulting change in benefit that relates to past service is then recognised immediately in the income
statement. Net interest is calculated by applying a discount rate to the net defined benefit liability or asset. Defined benefit costs are
split into three categories:— Current service cost, part-service cost and gains and losses on settlements and curtailments;— Net interest expense or income; and— Remeasurement.
The current service cost and past-service cost are included within operating costs in the consolidated income statement. Curtailments
gains and losses are accounted for as past-service cost. Net interest expense or income relating to the funded defined benefit pension
plans is included within ‘finance income’ or ‘finance costs’, as relevant, in the consolidated income statement.
Administration costs directly related to the management of plan assets are deducted from the return on plan assets, which arerecorded as remeasurements in the statement of comprehensive income. Other administrative scheme expenses associated withrunning the scheme are recorded within operating expenses when incurred.
The retirement benefit obligation recognised in the consolidated balance sheet represents the deficit or surplus in the BBC’s defined
benefit schemes. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in theform of refunds from the schemes or reductions in future contributions to the schemes.

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Annual Report and Accounts 21/22

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D. What the BBC spends on its people continued
D6 Group pension plans continued
D6.1 Group pension plans
BBC Pension
Scheme2022£mUnfunded
Scheme
2022
£m

Total
2022
£m

BBC Pension
Scheme2021£m

Unfunded
Scheme
2021
£m

Total
2021
£m

Surplus/(deficit) in scheme at the start of
the year
Movement in the year:
Current service cost
Contributions (from employer)
Administration costs incurred
Net finance income
Remeasurement gains/(losses)

198

(8)

190

255

(8)

247

(216)
173
(9)
4
1,099

–
–
–
–
–

(216)
173
(9)
4
1,099

(192)
245
(9)
8
(109)

–
–
–
–
–

(192)
245
(9)
8
(109)

Surplus/(deficit) in scheme at the end of
the year

1,249

(8)

1,241

198

(8)

190

Current service cost is the underlying cost to the BBC of pension rights earned by employees during the year.
Net finance income is the net of the expected return on assets and the interest charged on liabilities.
Remeasurement gains and losses arise when the actual performance of the scheme is different from that predicted.
The assumptions for pension scheme liabilities of the Unfunded Scheme are the same as the main scheme. As the scheme is unfunded there
are no assets.
D6.2 BBC Pension Scheme financial position
IAS 19 valuation

Note

2022
£m

2021
£m

Scheme assets
Scheme liabilities

D7.6
D7.2

19,745(18,496)

18,925(18,727)

Surplus

1,249

198

Percentage by which scheme assets cover liabilities

107%

101%

The IAS 19 Pensions valuation takes assets at their market value and discounts the accrued liabilities by reference to the discount rateof an AA-rated corporate.
A deferred tax asset or liability in relation to the scheme does not arise for the BBC because most of the BBC’s public service activity is not
subject to taxation.
D6.3 Pension charges in the consolidated income statement
Defined benefit schemes

Note

2022
Current service cost
Administration costs

D2

Total operating charge
Net finance income

C4

Net cost in consolidated income statement
2021
Current service cost
Administration costs

D2

Total operating charge
Net finance income

C4

Net cost in consolidated income statement

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BBC Pension
Scheme£m

Unfunded
Scheme£m

Definedcontribution
scheme£m

All schemes
£m

(216)
(9)

–
–

(70)
–

(286)
(9)

(225)

–

(70)

(295)

4

–

–

4

(221)

–

(70)

(291)

(192)
(9)

–
–

(67)
–

(259)
(9)

(201)

–

(67)

(268)

8

–

–

8

(193)

–

(67)

(260)

Financial statements

237

Financial statements
Notes to the accounts continued
D. What the BBC spends on its people continued
D6 Group pension plans continued
D6.4 BBC Pension Scheme gains/(losses) in the consolidated statement of comprehensive income
2022
£m

2021
£m

Return on plan assets (excluding amounts included within interest)
Remeasurement (losses)/gains arising from:– Experience adjustments– Changes in demographic assumptions– Changes in financial assumptions

829

1,637

(523)
–
793

490
10
(2,246)

Net gain/(loss) recognised in the consolidated statement of comprehensive income

1,099

(109)

Remeasurement (losses)/gains arise from actual performance being different from that predicted.
Only defined benefit schemes give rise to gains and losses in the statement of comprehensive income/(loss).
D7 BBC Pension Scheme
The BBC Pension Scheme is closed to new entrants. It provides pensionable salary-related benefits on a defined benefit basis.
The pension scheme is administered by a fund that is legally separated from the BBC Group. The Trustees of the pension fund are required bylaw to act in the interest of the fund and of all relevant stakeholders of the scheme. The pension scheme Trustees manage the plan in the
short, medium and long term. They make funding decisions based on valuations which take a longer-term view of the assets required to fundthe scheme’s liabilities.
D7.1 Funding the BBC Pension Scheme
Accounting valuations of the scheme are performed by Willis Towers Watson, consulting actuaries. Formal actuarial valuations are undertaken
at least every three years. The most recent triennial actuarial valuation as at 1 April 2019 showed a funding shortfall of £1,138 million. The
next formal valuation, performed as at 1 April 2022, is underway.
A recovery plan was agreed between the BBC and the pension scheme Trustees which details the additional contributions to be paid by the
BBC through to December 2028. The deficit recovery payments agreed are as follows:Due date

31 March 2023
31 March 2024
31 March 2025
31 March 2026

Amount
£m

75
87
94
102

31 March 2027
31 March 2028
31 December 2028

Contribution rates

Employer*
Employee (Old and New Benefits)
Employee (Career Average Benefits 2006)
Employee (Career Average Benefits 2011)*

Amount£m

Due date

110
118
83

Projection
2023
%

2022
%

2021
%

42.3
7.5
4.0
6.0

42.3
7.5
4.0
6.0

31.4
7.5
4.0
6.0

Until March 2021 the Employer’s contribution rate applies to all active members From 1 April 2022 the contribution for active members above their Normal Pension Age, excluding
those who took the Flexible Payment option, will be nil

The member contributions to the scheme are mainly paid via a salary sacrifice arrangement. These have been treated as employer
contributions.
On the basis of the pension assumptions above, contributions totalling £236 million are expected to be paid in 2022/23.
Below are the cash flows that have occurred through the BBC Pension Scheme itself. These are recognised in the BBC Pension Scheme’s own
financial statements as opposed to the BBC’s.
2022
£m

2021
£m

Contributions including additional voluntary (employer and employee)
Investment income

175
322

249
280

Cash inflows
Payments of pensions and transfers out
Expenses

497
(561)
(36)

529
(531)
(38)

Net cash outflow

(100)

(40)

238

Annual Report and Accounts 21/22

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D. What the BBC spends on its people continued
D7 BBC Pension Scheme continued
As the scheme is closed to new entrants, the level of contribution from employees will decrease (as members retire, there are no newentrants to replace the reduction in employee contributions).
D7.2 Changes in the fair value of plan liabilities
The key items which affect the movement on plan liabilities are the additional year of pension benefits earned, any gains or losses relating toparticipants leaving the pension scheme, changes in assumptions made and benefits paid out during the year.
2022
£m

2021
£m

Opening present value of plan liabilities
Current service cost
Administration cost
Interest on pension plan liabilities
Remeasurement losses/(gains):– Experience adjustments– Changes in financial assumptions– Changes in demographic assumptions
Contributions by plan participants
Benefits paid and expenses

18,727216
9372

16,948
192
9
364

523
(793)
–
1
(559)

(490)
2,246
(10)
1
(533)

Closing present value of plan liabilities

18,496

18,727

Changes in demographic and financial assumptions change the estimates used to value the future pension asset/liability.
Demographic assumptions include mortality rates, staff turnover and early retirement.
Financial assumptions encompass items such as discount rate and future salary levels.
D7.3 Plan liabilities principal actuarial assumptions madeThe calculation of the scheme liabilities requires a number of financial and demographic assumptions to be made. The principal assumptions
used by the actuaries at the balance sheet date were:Principal financial assumptions

Rate of increase in salaries
Rate of increase in pension payments:
Old Benefits*
New Benefits*
Career Average Benefits (2006)*
Career Average Benefits (2011)*
Inflation assumption (RPI)^
Inflation assumption (CPI)^
Discount rate

2022
%

2021
%

1.0

1.0

3.9
3.7
2.4
3.5
3.9
3.6
2.7

3.5
3.3
2.4
2.9
3.5
3.0
2.0

* For more information on the different pension arrangements, please refer to the Remuneration Report^ RPI and CPI are long-term assumptions

The discount rate for the IAS 19 Pensions valuation has been derived with reference to market yields at the end of the reporting period on
AA-rated sterling-denominated corporate bonds with maturities consistent with the estimated term of the post-employment benefit obligations.
Certain types of bonds are excluded from the calculating model, either because they have unusual features, are relatively small or potential
outliers, in order to remove the distortion that might otherwise occur from including unusual, less liquid or potentially misrated bonds.
Extrapolation is performed when the profile of the scheme’s expected benefit outflow is longer than the cash flows of the available bonds.
The average life expectancy assumptions for members, after retiring at 60 years of age, are as follows:
Principal demographic assumptions

Retiring today:
Male
FemaleRetiring in 20 years:
Male
Female2022
Number of years

2021
Number of years

27
29

27
29

29
31

29
31

The mortality assumptions have been selected to reflect the characteristics and experience of the membership of the scheme. These arebased on the assumptions used for the actuarial valuation which was carried out for funding purposes as at 1 April 2019. The standard ‘S3’
series of tables, published by the Continuous Mortality Investigation (CMI), reflect recent research into mortality experience in the UK.
A subset of these tables has been used for males and females, with a multiplier of 100% for male members and dependants and 100% forfemale members and 102% for female dependants. For the allowance for future improvements, the CMI 2018 core projection has been
adopted with an “initial addition” of 0.5% and a long-term trend of 1.25% for both males and females.

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Financial statements

239

Financial statements
Notes to the accounts continued
D. What the BBC spends on its people continued
D7 BBC Pension Scheme continued
D7.4 Scheme membership analysis and maturity profile
Principal demographic assumptions

Contributors
Pensioners
Dependants
Deferred pensioners

2022
Number

2021
Number

7,215
21,3794,363
26,693

7,926
20,645
4,367
27,507The maturity of a scheme provides an indication of the cash requirements of the scheme and the likely attitude of the Trustees to risk
within their investment policy.
The more mature a scheme, the more likely that Trustees will favour low-risk investments.
As the scheme is now closed to new entrants, the number of contributors will decrease whilst the number of pensioners increaseover time.
The total number of scheme beneficiaries as at 31 March 2022 was 46,267 (2021: 46,983).
Membership numbers in the table above are higher as members can hold more than one record. For example, contributing members who havetransferred to the Career Average Benefits 2011 section from another section of the scheme may have a deferred pensioner record for theirbenefits built up in the Old Benefits, New Benefits or Career Average Benefits 2006 sections and a contributing record for their Career
Average Benefits 2011 benefits.
The average duration of the benefit obligation at the end of the reporting period is 19 years (2021: 21 years). This number can be subdivided
into the duration related to:— Contributors: 24 years (2021: 25 years).
— Pensioners: 12 years (2021: 13 years).
— Deferred pensioners: 23 years (2021: 24 years).
D7.5 Plan liabilities assumption sensitives
The sensitivities of the schemes’ liabilities to changes in the principal assumptions are set out below:

2022

Discount rate
Retail price inflation rate
Mortality rate

2021

Discount rate
Retail price inflation rate
Mortality rate

(Increase)/decrease on
scheme liabilities£m

Assumption used

Movement

Impact on scheme
liabilities
%

2.7%
2.7%
3.9%
3.9%
See Note D7.3
See Note D7.3

decrease 0.5%
increase 0.5%
decrease 0.1%
increase 0.1%
decrease 1 year
increase 1 year

2.0%
1.7%
1.7%
1.8%
4.8%
4.9%

(368)
321
323
(330)
888
(901)

Assumption used

Movement

Impact on scheme
liabilities%(Increase)/decrease on
scheme liabilities
£m

2.0%
2.0%
3.5%
3.5%
See Note D7.3
See Note D7.3

decrease 0.5%
increase 0.5%
decrease 0.1%
increase 0.1%
decrease 1 year
increase 1 year

2.1%
1.8%
1.8%
1.9%
4.9%
5.0%

(391)
340
340
(349)
923
(941)

The discount rate for the IAS 19 Pensions valuation has been derived with reference to market yields at the end of the reporting period
on AA-rated sterling-denominated corporate bonds with maturities consistent with the estimated term of the post-employment
benefit obligations. Certain types of bonds are excluded from the calculating model, either because they have unusual features, arerelatively small or potential outliers, in order to remove the distortion that might otherwise occur from including unusual, less liquid or
potentially misrated bonds. Extrapolation is performed when the profile of the scheme’s expected benefit outflow is longer than the
cash flows of the available bonds.

240

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D. What the BBC spends on its people continued
D7 BBC Pension Scheme continued
The sensitivity analysis presented may not be representative of the actual change in the defined benefit obligation due to the likelihood ofsome linkage between assumptions.
In presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit
credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability
recognised in the balance sheet.
D7.6 Changes in the fair value of plan assets
The key items which affect the movement on plan assets are the additional year of contributions made, changes in the value of the pension
plan assets (including the investment return) and benefits paid during the year.
The employee contributions to the scheme by members are mainly paid through a salary sacrifice arrangement. These have been treated as
employer contributions.
2022
£m

2021
£m

Opening fair value of plan assets
Interest income on assets
Remeasurements on plan assets
Contributions by employer
Contributions by plan participants
Benefits paid and expenses

18,925
376
829
173
1
(559)

17,203
371
1,637
246
1
(533)

Closing fair value of plan assets

19,74518,925Remeasurements on plan assets represent the amount by which the assets held by the scheme (such as equities, bonds and property)
have performed better or worse than the prior year value.
D7.7 Plan assets
The allocation of assets by the pension fund Trustees is governed by the need to manage risk against the desire for high returns and any
liquidity needs.
2022

2021

£m

%

£m

%

1,342
577
(2,753)
4,012
8,680
83

7
3
(14)
20
44
–

1,370
659
(2,612)
4,428
8,137
28

7
4
(14)
23
43
–

1,200
565
5,691
348

6
3
29
2

1,033
529
4,775
578

6
3
25
3

Total assets

19,745100

18,925

100

Actual return on pension plan assets**

1,205Type of asset

Held at quoted market prices:
Equities
Pooled vehicles
Repurchase agreements
Fixed interest bonds
Index-linked bonds
Derivatives
Other assets:
Property– UK– Pooled investment vehicles
Alternatives*
Cash and other current assets

2,008

*

Alternatives are investments in asset classes other than the traditional quoted equities, bonds, property and cash They include investments in private equity, private credit, hedge
funds, infrastructure and renewable energy investments They are generally illiquid investments as some may require sufficient time to find buyers willing to pay full market value
They are useful for managing risk as they enhance portfolio diversification and potentially reduce risk as their cash flows can be well suited to meeting the scheme’s liabilities** This constitutes realised gains from the receipt of investment income (e g dividends and rent), transactions where assets are sold and unrealised fair value changes

A long-term plan of achieving full funding on a discount rate equal to the yield on liability matching gilts plus 0.5% per annum has been
agreed. The scheme’s strategic asset allocation is based on the scheme’s funding ratio, with the intention of not taking more risk thannecessary to return to full funding over the horizon of the plan. Indirect currency risk exposure exists through pooled investment vehicles
held in foreign currencies, valued at £4,425 million (2021: £3,893 million).

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Financial statements

241

Financial statements
Notes to the accounts continued
E. The assets owned by the BBC
In providing the range of services to audiences, the BBC makes use of a significant number of assets in its operations. This section sets out theowned assets the BBC intends to continue to use, those to be disposed of and any disposals made during the year. See section F for leased(right-of-use) assets held.
Owned assets can be broadly split into the following sections:
Programme-related assets
Programme assets can be recognised within either inventories or intangible assets as follows:
Programme

Produced byindependent producer

Produced in-house

Cash spent producing
programme“Programmes Under
Production”

Rights purchased
outright

Payments madeon accountRight to broadcast
purchased“Prepayments toacquire future programmerelated rights”“Rights to broadcast
acquired programmes
and films”

Right to sell programme
rights purchased“Distribution rights”

Intangible
assets

Production
completed/received

Inventories“Completed programmes”

Broadcast to public“Operating expenditure”

Amortised over expectedrecoupment period“Operating expenditure”

Income & Expenditure

242

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E. The assets owned by the BBC continued
Risk – Programme assets
There is a risk the accounting for programme assets held on the balance sheet may result in a misstatement due to the significant amountof judgements used in the accounting valuation methodologies.
The changing approach to the way viewers consume BBC content (iplayer vs linear) also adds risk around the timing of the release of theseassets to the income statement and therefore the carrying value held on the balance sheet at each year end.

Judgement – Carrying value of programme assets
Judgement is required when calculating the carrying value of programme assets (including distribution rights), most significantly
when calculating:— the estimated average marketable life of distribution rights when setting the amortisation profile over these assets.
— the assessment of impairment over the carrying value of all programme assets (inventories and distribution rights).
When programmes are available across multiple platforms judgement is also required to determine when the associated cost should berecognised in the income statement. The BBC’s policy is to recognise transmission spend from inventories on first transmission and a review
is performed at each year-end to verify whether this is still appropriate.
As viewers consume more content across digital platforms, however, it’s likely that the cost of a programmes currently held in inventory
should be released over the period of consumption rather than just first transmission. This is therefore something the BBC is monitoring
very closely to ensure the correct recognition policy is maintained.
Intangible assets
Intangible assets mainly include goodwill, programme rights (see above), software and carrier agreements.
Judgement – Impairment of goodwill
The determination of whether goodwill is impaired requires an estimation of the value in use of the cash-generating units. The value in use
calculation requires the entity to estimate the future cash flows expected to arise from the cash-generating unit and a suitable discountrate that reflects current market assessments of the risks specific to the asset and the time value of money, in order to calculate present
value. The estimation process is complex due to the inherent risks and uncertainties associated with long-term forecasting. If different
estimates of the projected future cash flows or a different selection of an appropriate discount rate or long-term growth rate were made,these changes could materially alter the projected value of the cash flows of the asset, and as a consequence materially different amounts
would be reported in the financial statements.
Property-related assets
Property, plant and equipment, furniture and fittings and assets under construction.
Risk – Complex property transactions
Where there are complex property transactions there is a risk of misstating carrying values due to the valuation methods used, along withexternal factors e.g. Covid impact on valuations, particularly for the areas such as:— Accounting for properties under IFRS 16 Leases— Broadcasting House refinancing and the treatment of Daunus Ltd— Other property transactions

Judgement – Capital projects
The BBC is completing a number of significant capital projects for which amounts have been capitalised on the BBC’s balance sheet. The
capitalised values are based upon estimates regarding the recoverability of these assets, the achievement of project completion, and theassets being used in the manner intended.
Investments
Balances held to represent the BBC’s interest in associates and joint ventures, and the results of any sales of operations that have occurred.
Judgement – Classification of investments
The BBC owns numerous investments in other entities and their classification as either subsidiary, associate or joint ventures requires
judgement over the control held and consequently how they are accounted for and the valuation attributable to them.

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Financial statements

243

Financial statements
Notes to the accounts continued
E. The assets owned by the BBC continued
Impairment: Non-financial assets
At each balance sheet date, the BBC reviews the carrying amount (net amount held on the balance sheet) of those assets that are subject
to amortisation, to determine whether there is an indication that any of those assets has suffered any impairment loss.
If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of any impairment loss.
For goodwill, the recoverable amount is estimated each year at the same time. The recoverable amount of an asset is the higher of fairvalue less costs to sell and value in use. For the purposes of impairment testing, assets are grouped at the lowest level at which theygenerate separately identifiable cash flows (cash-generating units). In assessing value in use, the estimated future cash flows are
discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money andthe risks specific to the asset for which the estimates of future cash flows have not been adjusted. An impairment loss is recognised in theincome statement for the amount by which the asset’s carrying amount exceeds its recoverable amount. Where a cash-generating unit
is impaired, the impairment loss will first be allocated to reduce goodwill and then to the other assets of the cash-generating unit on a
pro-rata basis, except that the carrying amount of any individual asset will not be reduced below its separately identifiable recoverable
amount. Impairment losses in respect of goodwill are not reversed. In respect of assets other than goodwill, an impairment loss is reversed
if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent
that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation oramortisation, if no impairment loss has been recognised.
E1 Programme-related assets and other inventories
Completed originated programmes, programmes in production and prepayments to acquire future programme-related rights
Programme assets reported as inventory effectively represent the BBC’s right to broadcast. The BBC’s right to sell programme rights are,however, recognised within intangible assets.
Completed originated programmes and programmes in production are held at cost. Cost includes all direct costs, production overheads
and a proportion of other attributable overheads. The proportion of programmes necessarily taking a substantial period of time to produce
is small and, as such, no borrowing costs are included in cost.
Where, exceptionally, it becomes certain that a programme is unable to be broadcast, the full value of the programme is written off to theincome statement.
Programme development costs are expensed to the income statement until such time as there is a strong indication that the development
work will result in a commissioned programme, when any further costs are recognised as programme-related assets.
Originated programmes that are still in production at the balance sheet date are recognised as programmes in production, except that
prepayments to acquire future programme-related rights are shown separately where the BBC has made payments to independent
producers, or the holders of certain rights (for example, rights to broadcast sporting events), to receive the programme on completion.
Rights to broadcast acquired programmes and films
The rights to broadcast acquired programmes and films are recognised at cost. The costs of acquired programmes and films are expensed
on first transmission except to the extent that the number of further showings are contractually agreed, when they are expensed according
to the expected transmission profile. Assets and liabilities relating to acquired programmes are recognised at the point of payment orcommencement of the licence period, whichever is earlier. Agreements for the future purchase of rights whose licence period has notcommenced and where there has been no payment by the balance sheet date are disclosed as purchase commitments.
Where the BBC has invested in independent productions, in addition to broadcasting rights, the BBC may obtain rights to future royalties
from the sale of rights associated with the production. These residual interests are recognised initially at cost subject to amortisation as
royalties are received, and impaired if anticipated royalties do not materialise.
The BBC’s main purpose is the provision of services for audiences. As a result the Group’s output primarily includes the production ofprogrammes for broadcast and the sale of rights for others to broadcast. This note discloses the amounts for those programmes that are in
production, completed programmes that are ready for broadcast but not yet aired, and rights secured to broadcast programmes produced
independently of the BBC. Inventory for the BBC’s commercial activities are also contained in this note.
2022
£m

2021
£m

158
497
159
294

152
544
77
203

Total programme-related assets
Other inventories

1,108
3

976
4

Total programme-related assets and other inventories

1,111

980

Programme-related assets
Rights to broadcast acquired programmes and films
Prepayments to acquire future programme-related rights
Completed programmes
Programmes in production

244

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E. The assets owned by the BBC continued
E2 Intangible assets
Programme-related intangible assets
The BBC’s right to sell programme rights is recognised within intangible assets. Programme assets reported as inventory effectively
represent the BBC’s right to broadcast, however. Programme rights acquired by the Group are either purchased, generated internally or
licensed following the payment of an advance on royalties. Where the Group controls the respective assets and the risks and rewards
attached to them, rights are initially recognised at acquisition cost or production cost. The carrying amount is stated at cost lessaccumulated amortisation and provision for impairment. Amortisation including impairment is charged to the income statement to matchthe estimated future economic benefit. This is calculated as the higher of an estimated recoupment profile based on the average historic
performance of the overall distribution rights portfolio or the actual recoupment of the specific initial distribution advance. Where thecarrying value of any individual set of rights exceeds management’s best estimate of future exploitation income, a provision for impairment
is recorded in the income statement immediately. For self-produced content, distribution rights exclude co-production costs borne by third
parties. These costs are deferred within current assets and expensed upon recognition of the associated production income. Production
income is recognised in accordance with the Group’s income recognition policies.
Research and development expenditure – internally generated intangible assets
Expenditure on research activities is written off in the income statement when incurred. Expenditure on development activities is included
on the balance sheet as an asset only if both of the following conditions are met:
— it is probable that the asset will generate future economic benefits; and— the development costs of the asset can be measured reliably.
The assets are measured at cost less accumulated amortisation and any accumulated impairment losses. For the PSB Group it is generally
unlikely that future economic benefits in the form of cash inflows will be received, and as a result, other than assets created for use by thebusiness in delivering its public purposes, development costs are only capitalised by the BBC Group’s commercial businesses.
Other intangible assets
Other intangible assets acquired separately by the BBC are stated at cost less accumulated amortisation and any accumulated impairment
losses. The identifiable intangible assets acquired as part of a business combination are shown at fair value at the date of acquisition (inaccordance with IFRS 3 Business Combinations) less accumulated amortisation and any accumulated impairment losses.
An annual impairment review is conducted using management’s best estimates of future income exploitation.
Amortisation
Amortisation is charged to the income statement on a systematic basis over the estimated useful lives of intangible assets, from the datethat they are available for use, unless such lives are indefinite. Amortisation methods, useful lives and residual values are reviewed at eachbalance sheet date and adjusted if appropriate. The useful lives and amortisation methods of other classes of intangible asset are as follows:
SoftwareStraight-line

2 to 5 years

Customer relationships

Straight-line

Unexpired term of agreement

Other intangibles: Licences and trademarks

Straight-line

30 years or unexpired return

Other intangibles

Straight-line

3 to 8 years

Amortisation of distribution rights is charged to the income statement to match the average income profile over its estimated average
marketable life.
Goodwill£m

Programmerights£m

Software£m

Customer
relationships
£m

Other
intangibles
£m

Total
£m

55
5
–

1,400
136
–

252
27
(16)

65
2
–

152
10
–

1,924
180
(16)

–
–
–

–
–
–

6
–
1

–
–
1

–
16
(1)

6
16
1

At 31 March 2021
Additions
Disposals

60
13
–

1,536
174
(33)

270
20
(4)

68
–
–

177
16
(1)

2,111
223
(38)

At 31 March 2022

73

1,677

286

68

192

2,296

Amortisation and impairment
At 1 April 2020
Charge for the year
Disposals
Prior period reclassification
Exchange movements

26
–
–
–
–

1,275
179
–
–
–

161
28
(16)
–
(1)

16
12
–
–
–

8
12
–
16
1

1,486
231
(16)
16
–

At 31 March 2021
Charge for the year
Disposals

26
–
–

1,454
136
(26)

172
31
(4)

28
12
–

37
11
(1)

1,717
190
(31)

At 31 March 2022

26

1,564

199

40

47

1,876

47

113

87

28

145

420

34

82

98

40

140

394

Cost
At 1 April 2020
Additions
Disposals
Reclassification from property, plant andequipment
Prior period reclassification
Exchange movements

Net book value
At 31 March 2022
At 31 March 2021

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Financial statements

245

Financial statements
Notes to the accounts continued
E. The assets owned by the BBC continued
E2 Intangible assets continued
Amortisation is the reduction reflected in the carrying value of the asset as a consequence of the regular use of that asset by theorganisation.
Customer relationships refers to intangible assets that arise from entity acquisitions (e.g. UKTV), which bring a number of carriage
agreements with channel networks. These agreements can be secured for a fixed amount of time and are therefore amortised over theindividual contract terms on a straight-line basis.
Other intangibles primarily includes intangible assets that arise from entity acquisitions, such as Electronic Programme Guide (EPG)
slots, as well as brands and trademarks.
E3 Goodwill
Goodwill
Goodwill is recorded in the balance sheet as the difference between the fair value of the consideration transferred by the BBC and therecognised amount of non-controlling interests in the acquiree compared to the fair value of the identifiable assets and liabilities acquired.
These are all measured at the date of acquisition. Where the consideration is less than the net assets acquired, the difference is recognised
immediately in the income statement. Goodwill arising on the acquisition of associates and joint ventures is included in the carrying amountof the associate or joint venture and is tested for impairment as part of the overall balance. Goodwill is considered to have an indefinite
useful economic life but is tested annually for impairment and is therefore measured at cost less any accumulated impairment losses. For
the purposes of impairment testing, the goodwill is allocated to cash-generating units on the basis of those expected to benefit from therelevant business combination.
All goodwill is recognised in Studios Group and allocated by cash-generating unit (CGU) as follows:

Independent production company
Australian channels business

2022
£m

2021
£m

38
9

25
9

47

34

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date.
The Group tests goodwill for impairment in the accounting period in which a business combination takes place; thereafter annually, or more
frequently if there are indications that goodwill might be impaired. The recoverable amounts of the CGUs are determined from value in use
calculations. The key assumptions used for these calculations are those regarding discount rates and growth rates. Management estimates
discount rates using pre-tax rates that reflect current market assessments of the time value of money and the risks specific to each CGU.
Independent production company
The goodwill balance arose as a result of the acquisition of House Productions Limited in the current financial year, Clerkenwell Films Limitedin the prior financial year, and Sid Gentle Films Limited and Lookout Point Limited in 2018. The cash flow projections used in determining value
in use for both CGUs are based on the current business plans approved by management, which cover a five-year period, after which cash flows
have been extrapolated using an expected long-term growth rate of 1.0% (2021: 1.0%). A discount rate of 7.2% (2021: 8.3%) has been applied
to the cash flows.
Australian channels business
The goodwill of this CGU arose as a result of the acquisition of UKTV on 1 July 2008. Cash flow projections used in the recoverable amountcalculation are based on financial budgets approved by management covering a period of five years (2021: five years) and a discount rate of
7.4% (2021: 8.4%). Cash flows beyond the forecast period have been extrapolated using an expected growth rate of -3.0% (2021: 1.0%). The
main assumption on which the forecast cash flows are based is licence fee rates. In forming its assumptions about licence fee rates, the Grouphas used a combination of long-term trends and recently contracted terms. Management believes that no reasonable change in the key
assumptions on which the value in use of this CGU is based would result in an impairment.

246

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E. The assets owned by the BBC continued
E4 Property, plant and equipment
Owned assets
Items of property, plant and equipment are stated at cost less accumulated depreciation and any accumulated impairment losses. Cost
includes expenditure that is directly attributable to the acquisition of the asset.
Depreciation
Depreciation is provided to write off the cost of each item of property, plant and equipment, less its estimated residual value, on a straightline basis over its estimated useful life.
Depreciation methods, estimated useful lives and residual values are reviewed at each reporting date.
The major categories of property, plant and equipment are depreciated as follows:
Land and buildings
Freehold landNot depreciatedFreehold buildings

Estimated useful life

50 years

Freehold building improvements

Estimated useful life

10 to 50 years

Leasehold buildings and improvements

Estimated useful life

Shorter of 50 years or life of lease

Plant and machinery
Computer equipment

Straight-line

3 to 5 years

Electrical and mechanical infrastructure

Straight-line

10 to 25 years

Other

Straight-line

3 to 10 years

Furniture and fittings

Straight-line

3 to 10 years
Land andbuildings*£mPlant andmachinery£m

Furniture andfittings£m

Assets underconstruction
£m

Total
£m

Cost
At 1 April 2020
Additions
Reclassification to intangible assets
Brought into service
Disposals

313
–
–
1
(5)

1,075
1
–
72
(27)

140
1
–
3
(4)

127
30
(6)
(76)
–

1,655
32
(6)
–
(36)

At 31 March 2021
Additions
Reclassification to asset held for sale
Brought into service
Disposals
Exchange rates

309
2
(13)
66
(8)
–

1,121
1
(8)
6
(56)
1

140
1
–
–
(8)
–

75
52
–
(72)
(3)
–

1,645
56
(21)
–
(75)
1

At 31 March 2022

356

1,065

133

52

1,606

Depreciation
At 1 April 2020
Charge for the year
Disposals

161
16
(5)

805
67
(21)

105
9
(4)

–
–
–

1,071
92
(30)

At 31 March 2021
Charge for the year
Reclassification to asset held for sale
Disposals
Exchange rates

172
15
(9)
(5)
–

851
56
(6)
(55)
1

110
6
–
(8)
–

–
–
–
–
–

1,133
77
(15)
(68)
1

At 31 March 2022

173

847

108

–

1,128

183

218

25

52

478

137

270

30

75

512

Net book value
At 31 March 2022
At 31 March 2021*

Land and buildings are not separable and therefore reported collectively

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Financial statements

247

Financial statements
Notes to the accounts continued
E. The assets owned by the BBC continued
E5 Investment properties (owned)
The majority of investment properties held by the BBC are right-of-use assets (see note F3 for further details, including the BBC’s accounting
policy). One freehold property, with negligible net book value, was however reclassified from property, plant and equipment to investment
properties in the current year.
At 31 March 2022, this property was valued at £3 million. The valuation of these investment properties was carried out by independent
valuers Lambert Smith Hampton, in accordance with the Royal Institution of Chartered Surveyors (RICS) Valuation Professional Standards.
In estimating the fair value of the properties, the highest and best use of the properties is their current use.
The property, which is leased out under an operating lease, earned an immaterial amount of rental income and incurred an immaterial amountof direct operating expenditure.
E6 Assets classified as held for sale
Assets classified as held for saleNon-current assets are classified as held for sale if their carrying amount will be recovered principally through sale rather than continuinguse. They are available for immediate sale and the sale is highly probably, normally within the next 12 months.

Property, plant and equipment held for sale

2022
£m

2021
£m

6

2

The BBC reclassified its Caversham and Swains Lane sites as held for sale at 31 March 2022. The sale of both these properties is expected tocompleted by March 2023.
The prior year relates to the sale of Broadcasting House, Cardiff which completed in April 2021.
E7 Interests in associates and joint ventures
This note details the BBC’s share of net assets in associates and joint ventures, along with the impact that they have on the income
statement. Details of significant associates and joint ventures along with principal subsidiary undertakings, including their activities,
are provided in Note I1.
2022
£m

2021
£m

Interests in associates
Interests in joint ventures

152
58

149
38

Total interests in associates and joint ventures

210

187

Share of results of associates
Share of results of joint ventures

16
9

13
12

Total share of results of associates and joint ventures

25

25

An associate is an entity that the BBC has significant influence over, but that does not meet the definition of a joint venture or
subsidiary. Significant influence is the power to participate in the financial and operating decisions of an entity but is not control or joint
control over those policies.
A joint venture is where the BBC has joint control over an entity with another partner(s).
The movements in associates and joint ventures during the year were as follows:
Associates
2022£m

Joint ventures
2022
£m

Total
2022
£m

Associates
2021£m

Joint ventures
2021
£m

Total
2021
£m

At 1 April
Additions
Disposals
Share of results
Share of losses reclassified to provisions
Adjustment to provision for unrealised
profits
Dividends receivable
Foreign exchange translation gains
Impairment

149
–
(3)
16
–

38
4
–
9
6

187
4
(3)
25
6

217
–
(8)
13
–

26
3
(1)
12
–

243
3
(9)
25
–

–
(15)
7
(2)

(1)
–
2
–

(1)
(15)
9
(2)

2
(11)
(19)
(45)

–
–
(2)
–

2
(11)
(21)
(45)

At 31 March

152

58

210

149

38

187

The Group tests assets for indicators of impairment annually. An impairment loss is recognised in the income statement for the amount bywhich the asset’s carrying amount exceeds its recoverable amount.

248

Annual Report and Accounts 21/22

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E. The assets owned by the BBC continued
E7 Interests in associates and joint ventures continued
The recoverable amount of the assets are determined from value in use calculations. The key assumptions used for these calculations arethose regarding discount rates and growth rates. Management estimates discount rates using pre-tax rates that reflect current market
assessments of the time value of money and the risks specific to each CGU.
Interests in joint ventures includes £14 million (2021: £14 million) for the Group’s investment in Daunus Limited.
The Group acquired the remaining share capital of House Productions Limited in the year, resulting in the deemed disposal of the associaterecognised in previous years. This investment is now recognised as a 100% owned subsidiary. See note C1 for further details.
New Video Channel America, LLC (“NVCA”)
The investment in this channel arose from the Group retaining 50.1% ownership in the business partially sold to AMC Networks on 23 October
2014. The Group accounts for its retained interest as an associate as AMC Networks retains operational control (see below for further detail).
The cash flow projections used in determining value in use are based on the current business plan approved by management, which covers afive-year period after which cash flows have been extrapolated using an expected long-term growth rate of -5.0% (2021: -5.1%).
A discount rate of 7.5% (2021: 8.5%) has been applied to the cash flows.
As a result of the changes in this market, management made the decision to impair the value of the Group’s share in the channel by £2 million(2021: £44 million) as a result of the annual impairment review. The remaining investment balance of £136 million (2021: £132 million) reflects
confidence in the channel’s future profitability.
The following table presents the Group’s share of material associates during the year:
New Video
Channel America
LLC
2022
£m

YouView
Limited2022£m

New Video
Channel America
LLC
2021
£m

YouView
Limited2021£m

Non-current assets
Current assets
Current liabilities
Non-current liabilities

164
106
(21)
(4)

4
14
(10)
(118)

131
112
(10)
(1)

1
7
(6)
(95)

Net assets/(liabilities) of material associates

245

(110)

232

(93)

Group’s share of net assets
Provision for unrealised profit
Goodwill

123
(3)
18

–
–
–

116
(3)
19

–
–
–

Group’s share of net assets of material associates

138

–

132

–

Material associates income

129

10

138

9

Material associates profit/(loss) after tax
Share attributable to other parties

32
(16)

(17)
17

27
(14)

(18)
18

Share of results of material associates

16

–

13

–

Daunus Limited
2022£m

Daunus Limited
2021£m

Non-current assets
Current assets
Current liabilities
Non-current liabilities

948
75
(69)
(611)

442
76
(67)
(650)

Net assets/(liabilities) of material joint venture

343

(199)

–

–

Material joint venture income

62

12Material joint venture profit after tax
Share attributable to other parties

33
(33)

4
(4)

–

–

The following table presents the Group’s share of material joint ventures during the year:

Group’s share of net assets/(liabilities) of material joint venture

Share of results of material joint venture

Daunus Limited, a company set up to facilitate the redevelopment and subsequent financing arrangements of Broadcasting House, preparesits financial statements to a 30 November accounting reference date and under Financial Reporting Standard 102. Adjustments are therefore
made to align these to the Group, reducing the BBC’s share to nil in the current year. The net asset position shown above for 2021/22 is a
result of Daunus reporting its fixed assets on a fair value basis, as opposed to historic cost in the previous years.
The Group is unable to receive dividends from Daunus Limited until 2033 due to restrictions mandated within this entity.

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Financial statements

249

Financial statements
Notes to the accounts continued
F. Leasing activities at the BBC
In providing the range of services to audiences, the BBC makes use of a significant number of assets in its operations, many of which areleased. This section sets out those leased assets, held for both operating purposes and as investment properties, and their related liabilities
including detail on any additions or disposals to these during the year.
Disclosures have also been made on lease related activity such as income received as a lessor and lease expenses recognised directly within
the income statement.
Lease liabilities held by the BBC are subject to certain limits, as agreed with the DCMS and are explained in detail within note G3. The BBC has
remained in compliance with these throughout the year.
Risks – Leasing
The complex nature of some of the BBC’s properties and the contractual conditions of leases entered may require judgement in thecalculation of the valuation of the related right-of-use assets and lease obligations. Where significant judgements are made, the risk ofpotential misstatement is also present.

Judgement – Leases
Judgement is required when assessing whether a contract contains a lease, the timing of recognition under IFRS 16 Leases for assets underconstruction and the appropriate discount rates, etc to be applied where this is not implicit within the contract.
Leases – initial assessment
At inception of a contract the Group assesses whether a contract contains a lease; defined as a contract that conveys the right to control
the use of an identified asset for a period of time in exchange for consideration. The Group assesses whether:— the contract involves the use of an identified asset – either specified explicitly or implicitly – and should be (or represent substantially all
the capacity of) a physical asset. If the supplier has substantive substitution rights, then the asset is not identified;— the Group has the right to obtain substantially all the economic benefits from use of the asset throughout the period of use; and— the Group has the right to direct the use of the asset, which is when it has the decision-making rights that are most relevant to changing
how and for what purpose the asset is used.
This predominantly includes land and buildings (both in the UK and overseas) as well as a range of specialised broadcast equipment.
At inception or on reassessment of a contract that contains a lease component, the Group allocates the consideration in the contract toeach lease component on the basis of their relevant stand-alone prices as determined by the underlying contract.
The Group has a number of options to extend the lease on a right-of-use asset, or to purchase the underlying asset – typically relating toland and buildings, either in the UK or overseas. An assessment of the location and the availability of suitable alternatives has been
undertaken in determining the likelihood of exercising these options.
When determining the accounting for a finance lease, the BBC has assessed whether it has the right to use the leased asset at the inceptionof the lease, or whether this right passes at a later date (“the commencement date”).
Where a significant site is being redeveloped, occupation may occur in distinct phases; consequently, the leased asset and liabilities arerecognised based on the proportion of the site occupied at each commencement date.
Lease remeasurement
When the lease liability is remeasured a corresponding adjustment is made to the carrying amount of the right-of-use asset. If the carrying
value has been reduced to zero then any further reductions are recorded in the income statement.
Short-term leases
The Group has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months orless and leases of low-value assets, which are expensed. This includes laptops and other items of small IT equipment.

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Annual Report and Accounts 21/22

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F. Leasing activities at the BBC continued
F1 Right-of-use assets
The Group recognises a right-of-use asset upon lease commencement. The right-of-use asset is initially measured at cost, being the initialamount of the lease liability adjusted for any lease payments made before the commencement date, less incentives received.
The right-of-use asset is subsequently depreciated using a straight-line method from the commencement date over the lease term (which isequal to, or shorter than, the asset’s useful life). The right-of-use asset is periodically reduced by impairment losses and adjustments forcertain remeasurement of the lease liability.
Land andbuildings*£mPlant andmachinery£m

Assets underconstruction
£m

Total
£m

Cost
At 1 April 2020
Additions
Disposals
Change in contract

1,934
16
(4)
36

11
2
(1)
–

–
10
–
–

1,945
28
(5)
36

At 31 March 2021
Additions
Disposals
Transfer to investment property
Change in contract
Exchange movements

1,982
40
(25)
(1)
22
1

12
1
(2)
–
–
–

10
11
–
–
–
–

2,004
52
(27)
(1)
22
1

At 31 March 2022

2,019

11

21

2,051

Depreciation
At 1 April 2020
Charge for the year
Disposals

373
85
(3)

4
4
(1)

–
–
–

377
89
(4)

At 31 March 2021
Charge for the year
Disposals

455
88
(7)

7
3
(2)

–
–
–

462
91
(9)

At 31 March 2022

536

8

–

544

1,483

3

21

1,507

1,527

5

10

1,542

Net book value
At 31 March 2022
At 31 March 2021*

Land and buildings are not separable and are therefore reported collectively

F2. Obligations under leases
The Group recognises a lease liability upon lease commencement. The lease liability is initially measured at the present value of unpaid
lease payments at commencement, discounted using the Group’s incremental borrowing rate (unless the interest rate implicit in the leasecan be readily determined).
The incremental borrowing rate is the rate of interest that would hypothetically have to be paid to borrow over a similar term, and witha similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment.
A small change in the rate could have a significant impact on the valuation of respective lease liabilities.
Lease payments included in the measurement of the lease liability comprise the following:— fixed payments;— variable payments dependent on an index or rate, measured using the index or rate at the commencement date;— amounts expected to be payable under a residual value guarantee; and— the exercise price under a purchase option or lease payments in an optional renewal period that the Group is reasonably certain to
exercise, and early termination penalties of a lease unless the Group is reasonably certain not to terminate early.
The lease liability is measured using the effective interest method. It is remeasured when there is a change in future lease payments arisingfrom a change in index or rate, change in estimate of the amount expected to be payable under a residual value guarantee, a change in thelease term or a change in the assessment of an option being exercised.

Leases due within one year
Leases due after more than one year

2022
£m

2021
£m

118
1,619

109
1,677

1,737

1,786

2022
£m

2021
£m

118
456
1,163

109
431
1,246

1,737

1,786

The ageing of obligations under leases is as follows:

Within one year
Between one and five years
Over five years

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Financial statements

251

Financial statements
Notes to the accounts continued
F. Leasing activities at the BBC continued
F3 Investment properties (right-of-use assets)
Investment properties are initially recognised at cost and subsequently carried at cost less accumulated depreciation and accumulated
impairment losses. Depreciation is calculated using a straight-line method to allocate the depreciable amounts over the estimated useful
lives of the properties (see depreciation on land and buildings above).
The residual values, useful lives and depreciation method of investment properties are reviewed, and adjusted as appropriate, at eachbalance sheet date. The effects of any revision are included in the profit and loss when the changes arise.
Right-of-use
assets£m

Cost
At 1 April 2020 and 31 March 2021
Reclassification from right-of-use assets

36
1

At 31 March 2022

37

Depreciation
At 1 April 2020
Charge for the year3
1

At 31 March 2021
Charge for the year41

At 31 March 2022

5

Net book value
At 31 March 2022

32

At 31 March 2021

32

At 31 March 2022, the BBC held right-of-use investment properties valued at £4 million (2021: £5 million). The valuation of these investment
properties was carried out by independent valuers Lambert Smith Hampton, in accordance with the Royal Institution of Chartered Surveyors(RICS) Valuation Professional Standards. In estimating the fair value of the properties, the highest and best use of the properties is theircurrent use. The valuation is lower than the carrying amount as a result of the shorter term these properties are currently let over comparedto the main lease held by the BBC. The BBC is confident that these properties will continue to be sublet for the duration of the main lease andconsequently no impairments have been identified.
The property rental income earned by the BBC from its investment properties, which are leased out under operating leases, amounted to£3 million (2021: £2 million). Direct operating expenses incurred on the investment properties, which generated rental income during the year,
amounted to £3 million (2021: £3 million). There were no direct operating expenses incurred on the investment properties which did not
generate rental income during the year (2021: nil).
See note E5 for owned investment properties.
F4 Lease income received as a lessor
The Group received finance lease income from finance lease contracts in which the Group acts as a lessor through the balance sheet against alease receivable held. The following sets out a maturity analysis of lease payments, showing the undiscounted lease payments to be received
after the reporting date:
2022
£m

2021
£m

Within one year
Between one and five years
Over five years

18
87
199

18
74
185

Total undiscounted finance lease payments

304

277

Unearned finance income

(92)

(87)

Net investment in the lease

212

190

The Group received £13 million (2021: £16 million) of lease income (including service charges) from operating lease contracts in which theGroup acts as a lessor. The following sets out a maturity analysis of lease payments to be received after the reporting date. This excludes
service charges which are dependent on usage.
2022
£m

2021
£m

Within one year
Between one and five years
Over five years

7
26
24

6
24
27

Total lease payments

57

57

252

Annual Report and Accounts 21/22

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F. Leasing activities at the BBC continued
F5 Lease expenses recognised in the income statement
Note

Interest on obligations under leases
Depreciation on leased assets
Expenses relating to short-term leases
Expenses relating to leases of low-value assets, excluding short-term leases
Total lease payments

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C4
F3, F1

2022
£m

2021
£m

52
92
17
–

53
90
5
1

161

149

Financial statements

253

Financial statements
Notes to the accounts continued
G. Financing the BBCThis section contains the notes to the balance sheet that detail the funding of the BBC as well as information on the financial instruments
held.
A financial instrument is a contract that results in one entity recording a financial asset (a contractual right to receive financial assets,
e.g. cash) in their accounts and another entity recording a financial liability (a contractual obligation to deliver financial assets toanother entity).

Judgement – impairment of financial assets
Financial assets are assessed at each balance sheet date to determine whether there is any objective evidence of impairment. Judgement isrequired when determining whether there is objective evidence of impairment, such as significant financial difficulty of the counterparty or
breach of contract.
G1 Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits with maturities of less than three months (short-term deposits). Cashand cash equivalents also include licence fee funds collected on behalf of HM Treasury, which are excluded from the Group’s net funds andin respect of which a separate creditor is recognised.
The Group retains significant cash amounts and cash equivalent balances in instant access accounts in order to manage the variation in
cash flows required for its operations
Cash at bank earns interest at floating rates based on daily bank deposit rates. Short-term deposits earn interest at the respective
short-term deposit rates.
2022
£m

2021
£m

Cash at bank, available on demand
Short-term deposits

154
563

145
326

Total

717

471

Of the total above, £573 million (2021: £265 million) cash and cash equivalents were held by the PSB Group. The remaining balance is held by
the Commercial Group.
G2 Borrowings
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets (those necessarily taking a 		substantial period of time to get ready for their intended use) are added to the cost of those assets, until such time as the assets are readyfor their intended use.
Originated programmes can be qualifying assets, but those necessarily taking a substantial period of time to get ready for broadcast are asmall proportion of overall programme investment. Any borrowing costs that could be attributed to those programmes are not significant
and, therefore, no borrowing costs are capitalised.
All finance income and other borrowing costs are recognised in income and expense in the period in which they are incurred.
G2.1 Borrowings due within one year

Bank loan

2022
£m

2021
£m

12

1

2022
£m

2021
£m

170

170

G2.2 Borrowings due within more than one year

Bank loan

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Annual Report and Accounts 21/22

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G. Financing the BBC continued
G2 Borrowings continued
G2.3 Borrowing facilities
At 31 March 2022

At 31 March 2021

Total available£mDrawn down at£mTotal available£mDrawn down at£mExpiry orreview date

SONIA* plus the agreed credit
adjustment spread of 0.1193%, plus
the relevant margin; 0.225% up to
1/3 utilisation, 0.375% between 1/3
and 2/3 and 0.525% over 2/3

200

–

200

–

Mar 2025

Uncommitted money
market lines (shortterm borrowings)

The interest rates on uncommitted
money market lines are determinedwhen traded with the bank

25

–

25

–

Reviewed
annually

GBP overdraft

Bank base rate plus 1.5%

5

–

5

–

Reviewed
annually

Multicurrency
overdraft

Banks’ short-term offered rates forthe relevant currency plus 1%

–

–

5

–

Reviewed
annually

Overdraft*

Bank base rate plus 1%. Excess
usage at bank base rate plus 2%

1

–

1

–

Reviewed
annually

210

–

210

–

March 2026

Facility

PSB Group
Sterling revolving
credit facility
agreementInterest rate

BBC Commercial Limited
Revolving credit
SONIA* plus agreed credit
facility agreement
adjustment spread of 0.1193% plus
the relevant margin; 0.15% up to 1/3
utilisation, 0.3% between 1/3 and2/3 and 0.45% over 2/3
Overdraft or money
market lines*

Bank base rate plus 1.5%

2

–

2

–

Reviewed
annually

Uncommitted money
market lines

Interest rate determined when
traded with the bank

20

–

–

–

Reviewed
annually

Fixed term loan

SONIA plus 1.25% (tbc)

170

170

170

170

June 2024**

3

–

2

–

Reviewed
annually

BBC Studios Distribution Limited
Overdraft*
Bank base rate plus 1% if drawn
down in sterling. Bank currency
overdraft rate plus a 1% margin if
drawn down in other currencies
Bank loan

Three-month GBP SONIA plus 1.5%

4

4

–

–

September
2022

Bank loan

Three-month GBP SONIA plus 1.5%

4

4

–

–

July 2022

Bank loan

Three-month GBP SONIA plus 1.0%

3

3

–

–

September
2022

Bank loan

Three-month GBP SONIA plus 1.5%

1

1

1

1

September2022* The base rate used varies according to the currency drawn GBP drawings are linked to Sterling Overnight Index Average (SONIA)** The BBC has a one-year extension option which, if exercised, would take the maturity through to June 2025 A series of interest rate swaps have been entered to fix the interest rate on
this facility to 1 49%

There have been no defaults or breaches of covenants on these facilities during the year (2021: none).
G3 DCMS borrowing limits
The BBC forms part of the UK Government’s National debt. The BBC is subject to two specific limits to its borrowings, as agreed with the
DCMS:— the Public Service net borrowing limit of £2,200 million is set by the Secretary of State for the DCMS in accordance with the Framework
Agreement between the BBC and the DCMS. Of this limit, £2,000 million is specifically for leases; and— under a direction granted by the Secretary of State for the DCMS a net borrowing limit of £550 million has been set for the BBC
Commercial Group. Of this limit, £200 million is specifically for leases.
The BBC is finalising governance arrangements for the BBC Commercial Group borrowing limit to increase to £750 million (excluding leases)
over time as set out by HM Government in the Autumn Budget and Spending Review of October 2021.

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Financial statements

255

Financial statements
Notes to the accounts continued
G. Financing the BBC continued
G3 DCMS borrowing limits continued
G3.1 Analysis of net debt for the DCMS borrowing limits
At 1 April 2021£m

Cash flows£m

Non-cash changes£mExchange£m

At 31 March 2022£m

Total cash and cash equivalents
Loans and loan notes
Derivatives associated with borrowings
Obligations under leases

471
(171)
–
(1,786)

245
1
–
165

–
(12)
3
(116)

1
–
–
–

717
(182)
3
(1,737)

Net debt(1,486)

411

(125)

1

(1,199)Made up of:
PSB Group
Studios Group
Other Commercials(1,430)(60)
4(1,055)(85)(59)

Net debt(1,486)(1,199)G3.2 Reconciliation of net funds/(debt) to the DCMS borrowing limits
Public Service GroupNet funds
excluding leases
£m

Lease
borrowings**£m2022
Net funds/(debt)
Net borrowing limit

573
(200)

Headroom
2021
Net funds/(debt)
Net borrowing limit
Headroom

BBC Commercial Group*
Net debt£m

Net debt/(funds)
excluding leases
£m

Lease
borrowings**£m

Net debt£m(1,628)(2,000)(1,055)(2,200)

(35)
(350)

(109)
(200)

(144)
(550)

773

372

1,145

315

91

406

265
(200)

(1,695)(2,000)(1,430)(2,200)

35
(350)

(91)
(200)

(56)
(550)

465

305

770

385

109

494

*

Under the terms of the DCMS agreement, the BBC Commercial Group must satisfy two financial covenants, which need to be satisfied throughout the respective period During boththe current and prior years, the BBC Commercial Group was in compliance with both these covenants** Lease borrowings are net of intra-group lease borrowings as these eliminate on consolidation

G4 Financial instruments
The BBC classifies its financial assets and liabilities into one of the following categories:
Measured at amortised cost
— Trade and other receivables/payables— Contract assets/liabilities— Cash and cash equivalents— Borrowings
They principally arise from the provision of goods and services, but also incorporate other types of financial assets/liabilities where theobjective is to collect or receive contractual cash flows and the contractual cash flows are solely payments of principal and interest.
Measured at fair value through surplus/deficit
For the BBC, this category comprises derivatives. Those in-the-money derivatives are financial assets whilst those out-the-money arefinancial liabilities.
The BBC does not enter into speculative derivative contracts; however, some derivative financial instruments are used to manage the BBC’s
exposure to fluctuations in interest rates (interest rate swaps, caps and collars) and foreign currency exchange rates (foreign currency
forward contracts and currency options).
Derivative financial instruments, excluding derivatives held as qualifying hedges, are initially recognised at fair value and are subsequently
remeasured to fair value at the balance sheet date with movements recorded in the income statement.
— Interest rate swaps, caps and collars: The fair value is the estimated amount that the BBC would receive or pay to terminate the swap,
cap or collar at the balance sheet date, taking into account current interest rates, the current creditworthiness of swap, cap or collar
counterparties and the creditworthiness of the BBC.
— Foreign currency forward contract rates: The fair value of forward foreign exchange contracts is determined by using the difference
between the contract exchange rate and the quoted forward exchange rate at the reporting date from third parties.
— Hybrid contracts: Contains both derivative and non-derivative elements with the effect that some of the cash flows of the combined
instrument vary in a way similar to a stand-alone derivative.

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G. Financing the BBC continued
G4 Financial instruments continued
Derivatives embedded in hybrid contracts with a financial asset host within the scope of IFRS 9 are not separated. The entire hybrid
contract is classified and subsequently measured as either amortised cost or fair value as appropriate.
Derivatives embedded in hybrid contracts with hosts that are not financial assets within the scope of IFRS 9 (e.g. financial liabilities) aretreated as separate derivatives when they meet the definition of a derivative, their risks and characteristics are not closely related to thoseof the host contracts and the host contracts are not measured at fair value through surplus/deficit.
If the hybrid contract is a quoted financial liability, instead of separating the embedded derivatives, the BBC generally designates the wholehybrid contract at fair value through surplus/deficit.
— Other investments: The BBC has strategic investments in listed and unlisted entities which are not accounted for as subsidiaries,
associates or joint ventures. These investments were previously classed as available for sale under IAS 39, and are now held at fair value
through surplus/deficit.
Measured at fair value through other comprehensive income
Certain derivatives designated as cash flow hedges are recognised at fair value through other comprehensive income.
Where hedge accounting is applied, the BBC has elected to adopt the hedge accounting requirements of IFRS 9 Financial Instruments.
The BBC enters into hedge relationships where the critical terms of the hedging instruments and the hedged item match. Hedge
effectiveness is determined at the origination of the hedging relationship. Quantitative effectiveness tests are performed at each period
end to determine the continuing effectiveness of the relationship. In instances where changes occur to the hedged item which results inthe critical terms no longer matching, the hypothetical derivative method is used to assess effectiveness.
The BBC designates certain derivatives as cash flow hedges by documenting the relationship between the hedging instrument and thehedged item, along with the risk management objectives and its strategy for undertaking various hedge transactions. Where the hedge isdeemed to have been effective, the effective portion of any changes in the fair value of the derivatives that are designated in the hedge arerecognised in other comprehensive income. The accumulated amount in the cash flow hedge reserve is reclassified to profit or loss in thesame period as the hedged cash flows affect profit or loss. Any ineffective portion of the hedge is recognised immediately in the income
statement.
Impairment of financial assets
Financial assets are assessed at each balance sheet date to determine whether there is any objective evidence of impairment. Individuallysignificant financial assets are tested for impairment on an individual basis. The remaining financial assets are assessed collectively inGroups that share similar credit risk characteristics. The amount of the loss is measured as the difference between the asset’s carrying
amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate. All
impairment losses are recognised in the income statement.
Derivatives are complex financial instruments that are usually used to manage risk. Derivative contracts are entered into for a fixed
period of time and their value changes during that period in relation to changes in a variable, such as an interest rate, commodity price,
credit rating or foreign exchange rate.
The BBC uses the following derivative contracts:— Forward foreign currency contracts are entered into to fix future currency payments/receipts to a set exchange rate. These could
be to cover expected future payments, receipts or specific contracts.
— Interest rate swaps allow the BBC to fix variable interest rates on borrowings to a fixed rate.
— A cash flow swap was entered into for the financing arrangements of Broadcasting House, exchanging the inflation-linked rent andheadlease repurchase payments for a fixed payment schedule out to 2045.
These instruments allow the BBC to manage its liquidity requirements more effectively as the amounts to be paid/received become
known.

The following terminology is used throughout this section:— Credit risk: the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual
obligation.
— Fair value: The fair value of an asset is the amount for which the asset could be exchanged between knowledgeable, willing parties
in an arm’s length transaction.
Foreign currency transactions: As these financial statements are prepared in sterling, the BBC’s foreign currency transactions andbalances must be translated at appropriate exchange rates, into sterling. This means that variations in exchange rates can cause thevaluation of investments to fluctuate, even when there has been no change in the health of the underlying business.

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Financial statements

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Financial statements
Notes to the accounts continued
G. Financing the BBC continued
G4 Financial instruments continued
Derivatives are all valued at fair value and movements thereof are recognised as follows:

Variable
contracted cash
payments

Fix cashflow profile

Financing income
related to swaps

Interest

Fix loan interest rate

Net financing costs

Trading activity
part of the hedging
programme

Operatingexpenditure

Trading activity notpart of the hedging
programme

Other gains/losses

Specific hedged
contract

Gains/loss on cashflow
hedges income

Currency

Cashflow
Statement

Income Statement

Other Comprehensive
IncomeG4.1 Financial risk management
The BBC’s financial risk management operations are carried out by a BBC Group Treasury function, within parameters defined formally within
the policies and procedures manual agreed by the Treasury Management Group, which has delegated authority from the BBC Board.
The BBC Group Treasury function uses financial instruments to raise finance and to manage financial risk arising from the BBC’s operations inaccordance with its objectives, which are:— to ensure the business of the BBC, both PSB Group and Commercial Group, is funded in the most efficient manner and remains compliant
with borrowing ceilings;— to protect the value of the BBC’s assets, liabilities and cash flows from the effects of adverse interest rates and foreign exchange
fluctuations; and— to maximise the return on surplus funds, whilst ensuring sufficient cash is retained to meet foreseeable liquidity requirements.
The BBC takes a risk averse approach to the management of interest rate fluctuations and foreign currency trading and has implemented aclear economic hedging policy to minimise volatility in the financial results. A small number of the forward foreign currency contracts enteredinto by the BBC were designated as hedging instruments in effective cash flow hedges. Hedge accounting is only applied where there isappropriate designation and documentation.
The BBC is exposed to the following areas of risk arising from financial instruments:
Exposure arising from

Measurement

Management

Market risk – currency risk

Risk

Transactions and balances
denominated in foreign
currencies

Cash flow forecasting

Forward foreign currency
contracts

Market risk – interest riskLong-term borrowings at
variable rates

Projected borrowing
requirements

Interest rate swaps, caps andcollars

Liquidity risk

Borrowings and other financial
liabilities

Rolling cash flow forecasts

Monitoring cash flow forecasts
and covenant compliance

Credit risk

Counterparty default on
contractual obligations

Credit ratings and ageing
analysis

Assessment of financial
reliability, collateral and othercredit enhancements

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G. Financing the BBC continued
G4 Financial instruments continued
Currency risk
Although the BBC is principally a UK-based organisation, some transactions are undertaken in currencies other than sterling.
The BBC’s commercial operations are undertaken in a range of global markets and a significant proportion of Studios Groups’ incomes are
generated outside the UK, with resulting foreign exchange risk – principally to the US dollar, the euro and the Australian dollar. Due tomovements in exchange rates, the amount the BBC expects to receive or pay when it enters into a transaction may differ from the amount thatit actually receives or pays when it settles the transaction.
The BBC takes a risk averse approach to the management of currency risk and has implemented clear policy parameters for the use of forward
foreign currency contracts to minimise volatility in the financial results. A substantial proportion of the BBC’s material net foreign currency
exposures are economically hedged.
The BBC’s main exposure is to US dollars; however, due to the relative size of this exposure in comparison to the BBC’s sterling-denominatedbusiness, the BBC does not consider this to be significant. The BBC generally enters into forward currency contracts to manage, or hedge, thiscurrency risk. This allows the BBC to reduce risk by settling transactions at known exchange rates.
The overall income or expenditure to be recognised in relation to contracts denominated in foreign currencies (and the related hedges) istherefore fixed; however, where these contracts span financial years, the recognition of the fair value of the forward currency contracts resultsin timing gains or losses in each financial year. These timing gains or losses are as a result of market conditions and not variances in underlying
contract value.
As the BBC has mitigated its underlying exposure to currency fluctuations there is no requirement to present sensitivity analysis as any
potential variation is insignificant.
At 31 March 2022, the BBC had entered into a net commitment to sell foreign currencies amounting to £422 million (2021: £100 million) thatmature in the period through to 2025 in order to fix the sterling cost of commitments through this period (mainly euros and US dollars).
The BBC applies hedge accounting for trades taken out by one of its commercial subsidiaries in respect of their forecast foreign currencytransactions. Net losses (before tax and non-controlling interests) recognised in the hedging reserve on forward foreign exchange contracts inhedge relationships at 31 March 2022 were £14 million (2021: £14 million net gains). These amounts are recognised in the income statement in
the period when the hedged forecast transaction impacts the income statement.
The ineffective portion recognised in operating costs arising from such hedges was immaterial in both the current and prior year.
Depending on how exchange rates and interest rates move between the time the BBC enters into the transaction and at the year-end
reporting date, derivatives can either be profitable (‘in the money’) or loss-making in their own right. However, the rationale in entering into
these derivatives is not to profit from currency markets or interest rate fluctuations, but to provide stability to the BBC’s cash flows. Other
than where hedge accounting is applied, the movements relating to these derivatives (i.e. where they are either in profit or loss-making) aretaken to the BBC’s income statement for the year.
Interest rate risk
BBC Commercial Group has borrowed using its revolving credit facilities at floating rates of interest and then used interest rate swaps tomanage the BBC’s exposure to interest rate fluctuations and provide greater certainty of cash flows. Interest rate swaps are entered into
based on projected borrowing requirements, therefore differences will occur between the notional amount of the swaps and the actual
borrowing requirements. By taking out the interest rate swaps the BBC has mitigated underlying exposure to interest rate fluctuations andhence no sensitivity analysis has been presented as any potential variation is insignificant.
Sterling fixed rate borrowings are achieved by entering into interest rate swap transactions; all outstanding swaps mature by the end of June
2024. In total, £170 million (2021: £170 million) of swaps were entered into. The coverage matches (2021: matches) the current level of bankloans of £170 million (2021: £170 million). See Note G2.3 for further details.
Other price risk of financial assets
The BBC invests surplus cash in money market funds and money market deposits, therefore it is not subject to other price risks, such as market
price risk.
Liquidity risk
Liquidity risk is the risk that the BBC will not be able to meet its financial obligations as they fall due. The BBC is subject to limits on its
borrowings set by the Secretary of State in accordance with the Agreement between the BBC and the DCMS (see Note G3). In order to comply
with these limits, together with the terms of any individual debt instruments, the BBC Group Treasury function manages the BBC’s borrowings
by regularly monitoring cash flow forecasts. The BBC holds its surplus liquidity in term deposit accounts with highly rated financial institutions.
The bank loans of the BBC’s commercial operations are subject to debt covenants based on the BBC’s earnings before interest and taxation.
The covenants are in respect of net borrowings and net interest coverage. The BBC is active in the monitoring of its debt covenants, whichhave been met at 31 March 2022.

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Financial statements
Notes to the accounts continued
G. Financing the BBC continued
G4 Financial instruments continued
The following table sets out the contractual undiscounted cash flows (including interest) of financial liabilities:2022

Non-derivative financial liabilities
Trade and other payables
Bank loans and overdrafts
Obligations under leases
Derivative financial liabilities
Forward foreign currency contracts – fair value throughsurplus/deficit
Forward foreign currency contracts – fair value throughother comprehensive income/(loss)
Cash flow swaps

2021

Non-derivative financial liabilities
Trade and other payables
Bank loans and overdrafts
Obligations under finance leases
Derivative financial liabilities
Forward foreign currency contracts – fair value throughsurplus/deficit
Cash flow swaps

Carrying value£m

Total contractual
cash flows£mLess than
one year£m

Between one
and five years£mOver five years
£m

(744)
(182)
(1,737)

(747)
(193)
(2,029)

(681)
(15)
(145)

(66)
(178)
(554)

–
–
(1,330)

(7)

(7)

(7)

–

–

(8)
(580)

(8)
(580)

(8)
–

–
–

–
(580)

Carrying value£m

Total contractual
cash flows£mLess than
one year£m

Between one
and five years£mOver five years
£m

(719)
(171)
(1,786)

(724)
(175)
(2,281)

(644)
(2)
(158)

(76)
(173)
(596)

(4)
–
(1,527)

(11)
(585)

(11)
(585)

(7)
–

(4)
–

–
(585)

Credit risk
Credit loss is the risk of financial loss to the BBC if a counterparty defaults on its contractual obligation. Default arises when it is determinedthat a counterparty is unlikely to pay following the evaluation of objective evidence.
Cash and cash equivalents and derivative financial instruments are held only with banks of A+ to BBB rating. The Group limits its exposure tocredit risk by only investing in liquid securities with counterparties that have a minimum credit rating of A-, with a higher minimum rating up to
AA- required depending upon duration and amount. Given these high credit ratings, the Group considers it has appropriately mitigated the riskof any counterparty failing to meet its obligations.
The BBC’s credit risk management policy in relation to other trade receivables involves regularly assessing the credit quality of customers,
taking into account several factors such as their financial position and historical performance. The carrying amount of financial assets includedin the financial statements represents the BBC’s maximum exposure to credit risk in relation to these assets.
G4.2 Fair value of financial instruments
When calculating the fair value of the BBC’s financial instruments (subsequent to the initial recognition), the technique used is determinedwith reference to the classification in the three-level hierarchy set out below. This disclosure helps to show the level of judgement that the
BBC has used in calculating fair values, subsequent to the initial recognition.
Fair value hierarchy levels 1 to 3 are based upon the degree to which the fair value is observable.
— Level 1 fair value measurements are those derived from quoted market prices (unadjusted) in active markets;— Level 2 fair value measurements are those derived from inputs other than quoted prices included within level 1 that are observable for theasset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and— Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not basedon observable market data (unobservable inputs).
No transfers between these categories have occurred during the period.

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G. Financing the BBC continued
G4 Financial instruments continued
Fair value hierarchy for those carried at fair value
or at amortised cost where fair value differs

Carrying value

Amortisedcost£m

Fair value
throughsurplus/(deficit)£m

Fair value
throughothercomprehensive income/(loss)
£m

Total
£m

717
936

–
–

–
–

717
936

–
–
–
17
32

4
412
3
–
–

–
–
–
–
–

Total financial assets

1,702

419

Trade and other payables
Bank loans and overdrafts
Derivative financial liabilities:– Forward foreign currency contracts– Cash flow swaps
Obligations under leases

(724)
(182)

(19)
–

–
–
(1,737)

Total financial liabilities(2,643)2022

Cash and cash equivalents
Trade and other receivables
Derivative financial assets:– Forward foreign currency contracts– Cash flow swaps– Interest rate swaps
Other investments
Investment properties

Level 1£m

Level 2£m

Level 3
£m

Total
£m

4
412
3
17
32

4
–
–
–
–

–
412
3
–
–

–
–
–
220
7

4
412
3
220
7

–

2,121

4

415

227

646

–
–

(743)
(182)

–

–

(19)

(19)

(7)
(580)
–

(8)
–
–

(15)
(580)
(1,737)

(15)
–
–

–
(580)
–

–
–
(1,737)(15)(580)(1,737)

(606)

(8)

(3,257)

(15)

(580)

(1,756)(2,351)

Fair value hierarchy for those carried at fair value
or at amortised cost where fair value differs

Carrying value

Amortisedcost£m

Fair value
throughsurplus/(deficit)£m

Fair value
throughothercomprehensive income/(loss)
£m

Total
£m

471
983

–
–

–
–

471
983

–
–
17
32

3
357
–
–

6
–
–
–

Total financial assets

1,503

360

Trade and other payables
Bank loans and overdrafts
Derivative financial liabilities:– Forward foreign currency contracts– Cash flow swaps
Obligations under finance leases

(706)
(171)

Total financial liabilities

2021

Cash and cash equivalents
Trade and other receivables
Derivative financial assets:– Forward foreign currency contracts– Cash flow swaps
Other investments
Investment properties

Level 1£m

Level 2£m

Level 3
£m

Total
£m

9
357
17
32

9
–
–
–

–
357
–
–

–
–
216
5

9
357
216
5

6

1,869

9

357

221

587

(13)
–

–
–

(719)
(171)

–

–

(13)

(13)

–
–
(1,786)

(11)
(585)
–

–
–
–

(11)
(585)
(1,786)

(11)
–
–

–
(585)
–

–
–
(1,786)(11)(585)(1,786)(2,663)(609)–(3,272)

(11)

(585)

(1,799)(2,395)Due to their short-term nature, the carrying value of cash and cash equivalents, short-term bank loans, trade and other receivables and tradeand other payables, is approximately equal to their fair value.
Other investments reflect the Group’s £14 million (2021: £14 million) investment in Daunus Limited (joint venture) and other equity
investments held.

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Financial statements

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Financial statements
Notes to the accounts continued
G. Financing the BBC continued
G4 Financial instruments continued
Derivative financial assets/(liabilities) are presented in the balance sheet as follows:
Non-current
assets£m

Current assets£mCurrent liabilities£mNon-current
liabilities
£m

Total
£m

Forward foreign currency contracts
Cash flow swaps
Interest rate swaps

2
412
3

2
–
–

(6)
–
–

(9)
(580)
–

(11)
(168)
3

Total derivative financial assets/(liabilities)

417

2

(6)

(589)

(176)

Non-current
assets£m

Current assets£mCurrent liabilities£mNon-current
liabilities
£m

Total
£m

Forward foreign currency contracts
Cash flow swaps

1
357

8
–

(6)
–

(5)
(585)

(2)
(228)

Total derivative financial assets/(liabilities)

358

8

(6)

(590)

(230)

2022

2021

Level 2 – cash flow swap derivatives
Cash flow swaps represent derivative financial assets of £412 million (2021: £357 million) and derivative financial liabilities of £580 million(2021: £585 million) relating to the financing arrangement of Broadcasting House. These swaps, which expire between 2033 and 2045, arevalued with reference to relevant SONIA yield curves, subject to appropriate credit risk adjustments where necessary. As part of the reform ofinterest rate benchmarks (interbank offered rates – IBORs), an alternative benchmark rate has been applied prospectively to determine a fairvalue under IFRS 9, with subsequent fair value gains or losses immediately recognised in the statement of profit or loss.
An adjustment of 233 basis points is applied to a specific leg of the swaps to reflect credit risk as the arrangement with the counterparty is notcollateralised. These assumptions and inputs are reviewed on an annual basis, along with the completion of sensitivity analysis. If anotheradjustment of 248 basis points had been used to reflect a reasonably possible change based on market movements during the year, then thiswould result in a decrease in the net liability of £9 million.
During 2020/21 an adjustment of 207 basis points was applied to reflect credit risk as the arrangement with the counterparty is notcollateralised. If another adjustment of 209 basis points had been used to reflect a reasonably possible change based on market movements
during that year, this would have resulted in a decrease in the net liability of £1 million.
Level 3 – financial instruments
The change in fair value of level 3 financial instruments is reconciled as follows:
2022

2021

Financial assets£mFinancial liabilities£mFinancial assets£mFinancial liabilities£m

At 1 April
Payments and settlements
Unwinding of discount recorded within finance expense
Additions
Change in fair value recorded in other losses
Change in fair value

221
–
–
–
–
6

(1,799)
169
(52)
(37)
(10)
(27)

234
–
–
2
–
(15)

(1,858)
169
(55)
–
(4)
(51)

At 31 March

227(1,756)221(1,799)262

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G. Financing the BBC continued
G4 Financial instruments continued
Financial assets
Financial assets includes £4 million (2021: £4 million) unquoted equity investments, the fair value amount of the Group’s investment in Daunus
Limited of £216 million (2021: £212 million) and the fair value amount of investment property of £7 million (2021: £5 million).
In order to facilitate the redevelopment and subsequent financing arrangement relating to Broadcasting House, London, the BBC holds aninvestment in Daunus Limited, which is disclosed within level 3 financial instruments with a fair value of £216 million (2021: £212 million). The
BBC holds a 20% (2021: 20%) share of the issued share capital (preferential in nature), due to mature in 2033, at which point the BBC receives
certain rights in respect of Broadcasting House. The BBC’s share in Daunus Limited entitles it to the first £90 million (plus RPI from the startof the lease) of any proceeds on termination of the lease. The fair value has therefore been derived from £90 million, inflated by RPI andsubsequently discounted to 31 March 2022. Following rising interest rates throughout 2021/22, the estimated interest rate used was 9.8%(2021: 2.5%) and the rate used to discount the future cash flows was 1.7% (2021: 1.2%). These assumptions and inputs are reviewed on anannual basis, along with the completion of a sensitivity analysis. A change in the adjustment applied to the respective interest rate of +1.0%
would result in an increase in the net assets by £26 million (2021: £28 million) whilst a reduction in the respective interest rate of -1.0% would
result in a decrease in the net assets of £24 million (2021: £25 million).
The fair value of the investment in Daunus Limited is not included on the balance sheet as it is equity accounted for through the income
statement (see Note E7). This is due to the BBC sharing joint control with other investors, including voting power and right to veto overrelevant activities, along with significant shared exposure to variable returns. The original investment made to acquire this entity (£14 million)
is still held on the balance sheet at 31 March 2022 and the Group does not consider this investment impaired given the structure in place.
The assumptions relating to Daunus Limited are reviewed on an annual basis, along with the completion of a sensitivity analysis. Whilst thereported profit or loss of Daunus Limited is not a significant input, the decision that Daunus Limited is a joint venture is a significant
judgement.
Financial liabilities
Level 3 financial liabilities reflect £19 million (2021: £13 million) put options held with some of the Group’s associates and joint ventures andfinance lease liabilities which primarily relates to the lease of three properties. The vast majority of leases undergo rent reviews on a frequentbasis and consequently book value is deemed to also reflect fair value.

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Financial statements

263

Financial statements
Notes to the accounts continued
H. Receivables and payables
This section contains the receivable and payable related notes to the balance sheet, such as contract balances, trade and other receivables
and payables, any expected credit losses associated with these balances and any provision or contingent liabilities that the BBC may owe in the
future. Also included are details on balances/transactions with related parties and any commitments the BBC is expecting to settle in futureyears.
Judgement – expected credit losses
Judgement is required when determining the recoverability (likelihood of receiving payment) of a contract asset or trade and otherreceivables. Changes in the credit quality of the receivable together with future considerations around the current state of the UK andoverseas economies and any industry-specific issues are all subjective.

Judgement – provisions
Judgements are employed in determining if a past event has given rise to a present obligation that will result in probable payment by the
BBC that can be measured reliably. Estimation techniques are used can be very complex, especially when there is a wide range of possible
outcomes.

Judgement – work in progress accruals
Work in progress accruals arise where a performance obligation has been satisfied but all associated expenditure has yet to be incurred.
Judgement is required in estimating the outstanding expenditure required to fulfil the contract.
H1 Trade and other receivables and contract assets
Trade and other receivables and contract assets are recognised initially at transaction price and subsequently at amounts considered
recoverable (amortised cost). Estimates are used in determining the level of receivables that will not be collected. These estimates include
factors such as historical experience, the current state of the UK and overseas economies and industry specifics. A provision for impairmentof trade and other receivables and contract assets is recognised based on the simplified approach using the lifetime expected credit losses.
During this process the probability of non-payment is assessed.
This probability is then multiplied by the amount of the expected loss arising from default to determine the lifetime expected credit loss forthe trade and other receivables and contract assets. The most significant trade and other receivable is the licence fee receivable, which
represents amounts due from the DCMS for licence fee payments not yet collected but due. The calculation of this balance carries a degreeof estimation, however we do not believe that the estimation uncertainty/difference would be material to the accounts. Changes in the
carrying amount of the allowance are recognised in the income statement within total operating costs.
H1.1 Contract assets
2022
£m

2021
£m

At 1 April
Balance transferred to trade receivables
New contract assets

4
(4)
3

5
(5)
4

At 31 March

3

4

Presented within:
Current
Non-current

3
–

4
–

3

4

Contract assets (accrued income) primarily relate to the BBC’s right to consideration for work completed but not billed at thereporting date.

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H. Receivables and payables continued
H1 Trade and other receivables and contract assets continued
H1.2 Trade and other receivables due after more than one year

Lease receivables
Other receivables

2022
£m

2021
£m

210
19

188
35

229

223

Lease receivables relate to a lease of land and buildings, expiring in 2035. The contract was entered into in 2015 with the BBC
receiving fixed quarterly receipts, subject to inflation.
H1.3 Trade and other receivables due within one year

Licence fee receivables
Accrued income
Trade receivables
Prepayments
VAT recoverable
Amounts owed by associates and joint ventures
Other receivables

2022
£m

2021
£m

480
255
172
72
61
15
41

526
213
183
138
74
6
45

1,096

1,185

Licence fee payers can pay the annual licence fee in several different ways. This can therefore result in a licence fee receivable whereindividual payments run behind usage as well as a licence fee payable where individual payments are running ahead of usage at a given
point in time.
H1.4 Expected credit losses
In determining the recoverability of a contract asset or trade and other receivable the BBC considers any change in the credit quality of thereceivable from the date credit was initially granted up to the reporting date, as well as future considerations around the current state of
the UK and overseas economies and any industry-specific issues. Receivables are provided for based on the probability of expected credit
losses for each receivable.
The Group uses an allowance matrix to measure the expected credit losses of trade receivables from individual customers. Loss rates are
based on actual credit loss experience which are adjusted to reflect differences between customer base during the period over which thehistorical data has been collected, as well as any forward looking information regarding the company’s view of economic and industry-wide
conditions over the expected lives of the receivables.
The Group has further reviewed the amounts provided against receivables for expected credit losses, taking into account the potential forincreased losses due to the uncertainty surrounding the economic recovery. In addition to revisiting historic loss rates, this review assessed
if heightened sectoral exposure and uncertainty impacted certain segments of the receivables balances, resulting in a qualitative
adjustment being required.
The licence fee income grant-in-aid paid by DCMS is based on the recoverable value of TV licences issued in the year. The year-end licencefee receivables expected credit loss is estimated based on the value of licence cancellations in the current year, as adjusted to reflect thecurrent and future economic environment.
Included in the BBC’s contract assets (see Note H1.1) and trade and other receivables at 31 March 2022 are balances of £32 million (2021:£39 million) which are past due at the reporting date but not impaired. The aged analysis Is as shown below:

Up to three months
Three to six months
Over six months

2022
£m

2021
£m

24
3
5

4
1
34

32

39

Movements in the BBC’s provision for impairment of licence fee receivable, trade receivables and contract assets can be shown as follows:
2022
£m

2021
£m

At 1 April
Charge for the year
Amounts written off as unrecoverable
Amounts recovered during the year

36
1
–
(2)

35
4
(2)
(1)

At 31 March

35

36

Amounts charged to the impairment provision are written off when there is no expectation of recovery. Subsequent recoveries of amounts
previously written off are credited to the income statement.

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Financial statements

265

Financial statements
Notes to the accounts continued
H. Receivables and payables continued
H2 Trade and other payables and contract liabilities
Trade and other payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest
method.
A contract liability is recognised when payment is received prior to the associated performance obligation being fulfilled. It is released toincome when the performance obligation is satisfied.
Accruals include work-in-progress accruals, which arise in instances where a performance obligation has been satisfied but all associatedexpenditure has not yet been incurred. The basis of the calculation of such accruals is based upon forecast expenditure required to fulfil
the contract.
H2.1 Contract liabilities
2022
£m

2021
£m

At 1 April
Income recognised in the period
Cash received in advance and not recognised as income during the year

(191)
133
(275)

(173)
118
(136)

At 31 March

(333)

(191)

Presented within:
Current
Non-current

(312)
(21)

(159)
(32)

(333)

(191)

Contract liabilities (deferred income) primarily relate to the consideration received from customers in advance of transferring a goodor service.
H2.2 Trade and other payables due after more than one year

Rights creditors
Other payables

2022
£m

2021
£m

3
41

33
25

44

58

Rights creditors refers to liabilities relating to the rights to broadcast programmes and are expensed in line with the expectedtransmission profile.
H2.3 Trade and other payables due within one year

Licence fee payable
Accruals
Trade payables
Rights creditors
Salaries and wages payables
Licence savings stamp deposits and savings cards
Other taxation and social security
Deferred income
Amounts owed to associates and joint ventures
Other payables

2022
£m

2021
£m

260
237
187
161
99
41
30
16
5
51

257
216
190
104
98
41
31
21
6
75

1,087

1,039

Licence fee payers can pay the annual licence fee in several different ways. This can therefore result in a licence fee receivable whereindividual payments run behind usage as well as a licence fee payable where individual payments are running ahead of usage at a given
point in time.
Licence saving stamp deposits and savings cards are made up of TV Licencing stamps which are slowly being redeemed.

266

Annual Report and Accounts 21/22

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H. Receivables and payables continued
H3 Related party transactions
The following table represents transactions with related parties excluding key management personnel.
Associates, joint venturesand other investments

Rendering of services
Receiving of services
Pension contributions
Dividends received

BBC Pension Scheme

2022
£m

2021
£m

2022
£m

2021
£m

40
(74)
–
15

29
(98)
–
11

–
–
173
–

–
–
245
–

(19)

(58)

173

245

Amounts owed by related parties

BBC Pension Scheme
Associates, joint ventures and other investments

Amounts owed to related parties

2022
£m

2021
£m

2022
£m

2021
£m

1
15

–
6

(1)
(5)

–
(6)

16

6

(6)

(6)

In all transactions, terms were negotiated on an arm’s length basis.
The BBC also enters into various transactions with Government and local authorities on an arm’s length basis. These transactions include
business rates and corporation tax payments.
During the year the BBC received less than £0.1 million of income and incurred less than £0.1 million of expenditure with BBC Children in Need.
No amounts were due at 31 March 2021.
At 31 March 2022, the BBC had a £0.9 million receivable with BBC Media Action UK. In the prior year, the BBC had a £0.3 million prepayment
with this entity.
At 31 March 2022 the BBC was owed £0.6 million and due to pay £0.7 million to the BBC Pension Scheme. No amounts were due/owed at
31 March 2021.
H4 Provisions and contingent liabilities
The BBC recognises a provision if a past event has given rise to a present obligation that will result in a probable payment that can bemeasured reliably. Where a provision is determined to be required and there are a range of possible outcomes, estimation techniques areused to calculate the best estimate of the amount required to settle the obligation.
The BBC recognises decommissioning liabilities as part of the initial cost of the asset, discounted to present value. The BBC reassesses
whether there has been a change in this liability based on the facts and circumstances at each balance sheet date.

Property
Taxation, litigation and insurance
Restructuring
Other

Included in current liabilities
Included in non-current liabilities

At 1 April 2021
£m

Charge forthe year£m

Utilised during
the year£m

Released during
the year£m

At 31 March 2022
£m

48
39
64
16

7
34
21
6

–
(11)
(56)
(6)

(2)
(6)
(4)
(1)

53
56
25
15

167

68

(73)

(13)

149

109
58

94
55

167

149

Property
The BBC has obligations to restore leased properties to their original condition at the end of the lease term. Property provisions are made forthe cost of such restoration works as determined by the properties’ discounted net present value or the market value of the gross square
footage.
Taxation, litigation and insurance
Taxation, litigation and insurance provisions relate to ongoing legal, insurance and compensation claims against the BBC. The BBC makes
specific provision for its best estimate of any damages and costs which may be awarded. A provision is only made to the extent that the BBC
considers it probable that there will be an outflow of economic benefits and the amount can be reliably estimated. There are a number ofprovisions within this balance, including balances connected to payments to Personal Service Companies that may be required. The timing of
cashflows associated with these provisions can sometimes be uncertain where we are awaiting the outcome of HMRC reviews.
Restructuring
Restructuring provisions are determined by the probable costs relating to reorganisations, relocations and redundancies in the BBC. The
restructuring balance predominantly relates to the redundancies required by ongoing savings strategies.
Other
Other provisions include amounts relating to employment matters and other issues arising across the BBC in the normal course of business,none of which are individually material.
Contingent liabilities
There are no contingent liabilities in the current year.

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Financial statements

267

Financial statements
Notes to the accounts continued
H. Receivables and payables continued
H4 Provisions and contingent liabilities continued
Contingent liabilities are liabilities that may occur depending on the outcome of an uncertain future event such as the outcome of apending lawsuit. Contingent liabilities are not accounted for in the financial statements because, unlike provisions, they are notsufficiently certain or cannot be estimated reliably.
H5 Long-term commitments not reflected in the balance sheet – contracts placed for future expenditureThis note shows amounts to which the BBC is contractually committed, but which do not meet the criteria for inclusion in the balance sheet
as we’ve not yet received the goods/services. It includes fixed (but not variable) payments due under outsourcing contracts for the life of
those contracts.
Functions covered by these long-term outsourcing contracts include IT support, content distribution and transmission, facilities management
and elements of finance support.

Fixed asset additions
Programme acquisitions and sports rights
Independent programmes
Other fixed payments on long-term outsourcing arrangements

2022
£m

2021
£m

20
1,233
290
2,300

11
1,103
304
1,838

3,843

3,256

2022
£m

2021
£m

1,129
2,268
446

1,076
1,531
649

3,843

3,256

Long-term commitments not reflected in the balance sheet are payable as follows:

Within one year
Between one and five years
Over five years

268

Annual Report and Accounts 21/22

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I. BBC structure and other disclosures
This section details the BBC’s interests held in associates, joint ventures and subsidiaries, along with the BBC’s reserves and details on postbalance sheet events.
I1 Interests in associates, joint ventures and subsidiaries
The BBC Group holds (directly and indirectly) interests in the associates, joint ventures and subsidiaries listed below which, except whereotherwise stated, are incorporated in Great Britain and registered in England and Wales.
I1.1 Significant associates and their activities
Name of entity

YouView TV Limited
New Video Channel America LLC*
3sixtymedia Limited**

Place of incorporation andprincipal place of businessHolding of issued
ordinary shares%

Activity

England and Wales
United States
England and Wales

16.7%
50 .1%
10.0%

Multiplatform broadcasting
TV channel operator
Production*

Whilst BBC Studios Distribution Limited retains a significant influence over New Video Channel America LLC and has the rights to variable returns, it is not deemed to have control andis therefore recognised as an associate undertaking** The BBC holds 10% of the total share capital of 3sixtymedia Limited but 20% of the Class A ordinary shares, which gives it significant influence

I1.2 Significant joint ventures and their activities
Name of entity

BritBox LLC
Daunus Limited**

Place of incorporation andprincipal place of businessHolding of issued
ordinary shares%

Activity

United States
England and Wales

50%
20%

Digital video subscription
Property

The BBC holds 20% of the total share capital of Daunus Limited but 66% of the voting rights Other shareholders retain certain veto rights and therefore this entity is recognised as a
joint venture

I1.3 Subsidiary undertakings
Name of entity

Registered address

Directly owned commercial subsidiaries: (all 100% owned unless stated)
BBC Commercial Limited
Broadcast Centre Media Village, 201 Wood Lane, London W12 7TP
BBC Property Limited
BBC Property Investment Limited
BBC Property Development Limited
Centre House Productions Limited
BBC News Limited
BBC Free to View (Satellite) Limited
BBC Free to View Limited
BBC Media Applications Technologies Limited
BBC Subscription Television Limited
BBC Investments Limited
DSHS Limited
BBC Digital Programme Services Limited
BBC World Service Trading Limited
BBC World Service Holdings Limited

London Broadcasting House, Portland Place, London W1A 1AA

Indirectly owned commercial subsidiaries: (all 100% owned unless stated)
BBC Studios Limited
1 Television Centre, 101 Wood Lane, London W12 7FA
BBC Studios Distribution Limited
2 entertain Limited
2 entertain Management Limited
2 entertain Video Limited
BBC Video Limited
MCI Music Publishing Limited
Demon Music Group Limited
Crimson Productions Limited
F-Beat Records Limited
Demon Records Limited
Devil’s Peak Distribution Limited (92% owned)
BBC Earth MD (WWD) Limited
BBC Earth Productions (Life) Limited
BBC Earth Productions Limited
BBC Earth Productions (Africa) Limited
BBC Earth Productions (Giant Films) Limited
Earth Film Productions Limited
BBC Magazine Holdings Limited
BBC Studios Corporate Services Limited
BBC Studios Investments Limited
BBC Studios Drama Productions Limited
Tonto Films and Television Limited
BBC Studios Channel Investments Limited
Mortimer Productions Limited
UK Programme Distribution Limited
BEEB Rights Limited (88% owned)
BBC Global News Limited
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Financial statements

269

Financial statements
Notes to the accounts continued
I. BBC structure and other disclosures continued
I1 Interests in associates, joint ventures and subsidiaries continued
Name of entity

Registered address

BBC World Distribution Limited
BBC.com Limited
BBC Studios Productions Limited
BBC Grafton House Productions Limited
BBC Comedy Productions Limited
BBC Natural History and Factual Productions Limited
BBC Natural History Giant Screen Limited
Nice and Accurate Productions Limited
BBC Studios Productions (Clifton) Limited
BBC Children’s Productions Limited
BBC Global News Holdings Limited
Craft Channel Host limited
UKTV Media Holdings Limited
UKTV Media Limited

10 Hammersmith Grove, London W6 7AP

BBC Studioworks Limited

Room N101, Neptune House, BBC Elstree Centre, Clarendon Road,
Borehamwood, Hertfordshire WD6 1JF

Baby Cow Productions Limited (75% owned)
Baby Cow Productions (Chivalry) Limited (75% owned)
Baby Cow Manchester Limited (75% owned)
Baby Cow Productions (Hunderby) Limited (75% owned)
Baby Cow Productions (Partridge) Limited (75% owned)
Baby Cow Productions (Red Dwarf) Limited (75% owned)
Baby Cow Films Limited (75% owned)
Alan Partridge Limited (75% owned)
Baby Cow Animation (Warren) Limited (75% owned)
Baby Cow Animation (Wussywat) Limited (75% owned)
Baby Cow Productions (Witchfinder) Limited (75% owned)
Baby Cow Animation Limited (75% owned)
Clerkenwell Films Limited
House Productions Limited
House Conclave Limited
House LAL Limited
House Pictures Limited
House Ref Limited
House Sherwood Limited
House Six Four Limited
House Trig Limited
Lookout Point (DP) Commissioning Limited
Majorca Productions Limited
Philomena Lee Limited (75% owned)
Quite Funny Films Limited
Quite Persuasive Films Limited
Quite Scary Films Limited
Recall TV Limited
TFW Productions Limited
Two+Two=5 Limited
White Hart Land Productions Limited (92% owned)
Lost Child Limited (75% owned)
Moone Boy (UK) Limited (38% owned)
The Last Holiday Limited

1 Television Centre, 101 Wood Lane, London W12 7FA

Sid Gentle Films Limited (51% owned)
Sid Gentle Films (Corfu) Limited (51% owned)
Sid Gentle Films (Costello Jones) Limited (51% owned)
Sid Gentle Films (Extraordinary) Limited (51% owned)
Sid Gentle Films (Gaiman) Limited (51% owned)
Sid Gentle Films (KE2) Limited (51% owned)
Sid Gentle Films (KE3) Limited (51% owned)
Sid Gentle Films (KE4) Limited (51% owned)
Sid Gentle Films (Killing Eve) Limited (51% owned)
Sid Gentle Films (Ragdoll) Limited (51% owned)
Sid Gentle Films (SS-GB) Limited (51% owned)
Sid Gentle Films (TD4) Limited (51% owned)

Ground Floor Charles House, 5-11 Regent Street, St James’s Way,
London SW1Y 4LR

270

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I. BBC structure and other disclosures continued
I1 Interests in associates, joint ventures and subsidiaries continued
Name of entity

Registered address

Sid Wild Films Limited (51% owned)
Sid Gentle Films (The Durrells) Limited (51% owned)
Lookout Point Limited (92% owned)
A Suitable Company Limited (92% owned)
AMP 1 Limited (92% owned)
Evergreen Television Limited (92% owned)
Off Stone Productions Limited (92% owned)
Lookout Point (DP) Production Limited (92% owned)
Lookout Point (FUMP) Limited (92% owned)
Lookout Point (Management) Limited (92% owned)
Lookout Point (T&T) Limited (92% owned)
Lookout Point (LES MISERABLES) Limited (92% owned)
Lookout Point (SHIBDEN) Limited (92% owned)
Lookout Point (LT5) Limited (92% owned)
Lookout Point Acquisition Limited (92% owned)
Lookout Point (The Collection) Limited (92% owned)

Hammer House, 113-117 Wardour Street, London, United Kingdom
W1F 0UN

BBC Studios Canada Limited

145 King Street West, Suite 740, Toronto ON M5H 1JH, Canada

BBC Studios Singapore PTE. Limited

12-08/08 Shal Tower, 100 Beach Road, Singapore 189702, Singapore

BBC Studios Japan Limited

Tokyo Club Bldg., 10F, 3-2-6 Kasumigaseki, Chiyoda-ku, Tokyo
100-0013, JapanBBC Studios Productions Nordics ApS

Mosedalvej 14, 2500 Valby, DenmarkBBC.com US, Inc

c/o Corporation Trust Centre, 1209 Orange Street, Wilmington
19801, United States

Nine Productions1 Inc

650-699 Howe Street Vancouver, British Columbia, V6 0B4, Canada

BBC Studios France

18-20 Quai du Point du Jour, Bat. A, 92100 Boulogne-Billancourt,
FranceWorldwide Channels Europe B.V.

Worldwide Channels Europe B.V., Weesperplein 4b, 1018 XA
Amsterdam, Netherlands

Consulting Company Limited

Unit 7, Floor 9, West Tower, Genesis Building, 8 Xinyuan South Road,
Chaoyang District, 100027, China

BBC Studios Channel Investments (Ontario) Limited

Toronto Dominion Bank Tower, Toronto Dominion Center, Toronto,
ON M5K 1E6, Canada

2004370 Inc

66 Wellington Street West 470, Toronto Dominion Bank Tower,
Toronto M5K 1EG, Canada

BBC Studios Americas Inc
BBC Studios Americas (401) k Plan Trustees

1120 Avenue of the Americas, 5th Floor, New York, NY 10036-6700,
United States

Adjacent Productions, LLC
Bad Wolf Productions LLC
BBC Studios Reality Productions LLC
Global Hybrid Productions LLC
Lime Grove Productions LLC
Sun Never Sets Productions LLC
WNT Productions LLC
Studios Competition Productions LLC

10351 Santa Monica Boulevard, Los Angeles, CA 90025, UnitedStatesBBC Studios Americas Investments Inc

The Corporation Trust Company, Corporation Trust Centre, 1209
Orange Street, Wilmington 19801, United States

BBC Studios Australia Holdings Pty Limited
BBC Studios Australia Pty Limited
BBC Studios Australia BB Pty Limited
BBC Studios Productions Australia Pty Limited

Level 1, 35-51 Mitchell Street, McMahons Point NSW 2060, Australia

BBC Studios Germany GmbH
Erste Weltweit Medien GmbH

Kaiser-Wilhelm-Ring 17-21, 50672 Köln, Germany

BBC Worldwide Holdings B.V

Prins Bernhardplein 200, 1097 JB Amsterdam, Netherlands

BBC Studios India Private Limited

Construction House A Wing, 401- 4th Floor, Off Linking Road, 24th
Road, Khar (W), Mumbai 400 052, India

BBC Studios Africa (Pty) Limited

Office 003H3 Ground Floor, 10 Melrose Boulevard, Melrose Arch,
Melrose North 2196, SA

BBC Studios Intermediadora de Programadora Estangeira Limited

Rua Ferreira de Araujo, 741, Andar 1, Pinheiros, São Paulo
SP 05.428-002, Brazil

BBC Studios Polska Sp. z o.o.

Pl. Bankowy 1, 00-139 Warszawa, Poland

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Financial statements

271

Financial statements
Notes to the accounts continued
I. BBC structure and other disclosures continued
I1 Interests in associates, joint ventures and subsidiaries continued
Name of entity

Registered address

BBC Worldwide Mexico S.A de C.V
BBC Worldwide Channels Mexico S.A de C.V

Calle Andres Bello 10 Piso 10, Chapultepec Polanco, Delg. MiguelHidalgo, Ciudad de Mexico CP 11560, Mexico

Worldwide Knowledge (Beijing) Business Consulting Company Ltd

Unit 7, Floor 9, West Tower, Genesis Building, 8 Xinyuan South Road,
Chaoyang District, Beijing 100027

BBC Studios Productions (Africa) (Pty) Limited

24 18th Street, Menlo Park 0081, Maxars House, 5 St Davids Place,
Parktown 2193, SA

Canadian AP Ventures Company ULC (50% owned)

800-1959 Upper Water Street, Halifax NS B3J 2N2, Canada

Rapid Blue Africa Limited (70% owned)

7 Sowemimo Street, GRA Ikeja, Lagos, Nigeria

BBC Global News (Japan) Limited (incorporated in Japan)

Tokyo Club Bldg., 3-2-6, Kasumigaseki, Chiyoda-ku, Tokyo, 1000013, JapanBBC Global News (Singapore) Private Limited (incorporated in
Singapore)#12-08/08 Shaw Tower, 100 Beach Road Singapore 189702,
Singapore

BBC Global News (India) Private Limited (incorporated in India)

Unit No. 301, 3rd Floor, D-2, Southern Park, District Centre, Saket,
New Delhi, 110017

BBC Global News US LLC (incorporated in America)

Corporation Service Company, 80 State Street, Albany, New York,
12207-2543

I2 Reserves
Operating reserve
The operating reserve reflects accumulated profits to date.
Hedging reserve
The hedging reserve is used to record the effective portion of cumulative net changes in the fair value of cash flow hedging instruments,
related to hedged transactions that have not yet occurred (net of tax). During the current year, losses of £6 million were removed from thehedging reserve and debited to income in the income statement (2021: £4 million).
Translation reserve
The translation reserve is used to record exchange differences arising from the retranslation of the net assets and results of overseas
subsidiaries. This includes all foreign exchange differences arising since the transition to IFRS, from the translation of the financial statementsof foreign operations, as well as from the translation of liabilities that hedge the BBC’s net investment in foreign subsidiaries.
Other reserves
Other reserves include the fair value of put option liabilities arising on acquisition of subsidiaries and the difference between the cost ofinvestment and net assets of entities acquired which are held under common control.
I3 Post balance sheet events
There have been no significant events affecting the Group since the year end.

272

Annual Report and Accounts 21/22

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Additional information
Index
Subject index

Page number

Access services

163

Across the UK

9, 14, 34

Audience accountability

49

BBC Global News79, 81BBC Studios

77

BBC Studioworks

82

BBC World Service

45

Chairman’s message

10

Charitable work

73

Commercial Operations

75

Committee reports

87

Consultations

68

Content spend by service – by nation

185

Content spend by service – network

182

Corporate compliance85

Developing our people

59

Director-General’s statement

12

Diversity and inclusion

34, 64

Efficiency savings

57

Environmental sustainability

69

Financial statements

203

Human rights

60

Levelling Up

24, 53

Licence fee income and expenditure

52

Market context

48

Nations and regions34, 131, 176, 185

Partnerships

74

Pay disclosures

96

Performance against public commitments

137

Public purposes

16

Reach by service

182

Remuneration – BBC Board

91

Remuneration – BBC senior managers

93, 100

Risks and opportunities

110

Serota Review

8, 11, 63, 115, 122, 129Service performance

182

Severance pay

62

Staff – headcount and location

36, 62Strategy

8

Talent costs

62

Time spent with each service

182

Trading fairly

133

Value for All

12, 48, 52

Viability Statement

127

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Additional information

273

Additional information
Image credits
Front cover
100 years of our BBC – BBCPage 32
BBC iPlayer – BBCPage 83
Doctor Who – BBC Studios/James Pardon

Contents page
BBC journalist Clive Myrie – BBC
Doctor Who – BBC Studios/James Pardon
A Very British Scandal – BBC/Blueprint

Page 33
BBC Sounds – BBCPage 84
Richard Sharp – BBC/Alistair HeapTim Davie – BBC/Alistair Heap
Shumeet Banerji –BBC/Alistair Heap
Sir Damon Buffini – BBC/Alistair Heap
Dame Elan Closs Stephens – BBC/Alistair Heap
Shirley Garrood – BBC/Alistair Heap
Sir Robbie Gibb – Photo courtesy of KekstCNC
Muriel Gray – BBC/Alistair Heap
Ian Hargreaves – BBC/Alistair HeapCharlotte Moore – BBC/Guy Levy
Sir Nicholas Serota – BBC/Alistair Heap
Leigh Tavaziva – BBC/Adam Lawrence

Page 2
1922 Radio variety – BBC1927 Henry Wood conducting – BBC1932 Sourour Effendi arabic service – BBC1936 Adele Dixon – BBCPage 31939 Frank Dixon interviewing – BBC1958 Blue Peter – BBC
1963 Doctor Who – BBC
1979 Life on Earth – ©John Sparks/naturepl com
1985 Eastenders – BBC
1997 BBC Online – BBC2007 BBC iPlayer – BBC2020 Lockdown learning – BBCPage 5
BBC journalist Steve Rosenberg – BBCNewsround – BBC
Vigil – BBC/World Productions/Mark Mainz
Page 6
BBC Newsroom – BBC
BBC journalist Lyse Doucet – BBCTime – BBC/Matt Squire/James Stack
The Green Planet – BBC/Sam Barker
Page 7The Responder – BBC/Dancing Ledge/Rekha Garton
BBC presenter Zoe Ball – BBC/Sarah Jeynes
The Tourist – BBC/Two Brothers Pictures/Ian Routledge
Page 10
BBC journalist Jeremy Bowen – BBCTokyo Olympics – BBC/Nick Eagle
BBC News on iPlayer – BBC
Richard Sharp – BBC/Alistair Heap
Page 12
Tim Davie – BBC/Alistair Heap
Page 13
Peaky Blinders – BBC/Caryn Mandabach Productions Ltd/
Robert Viglasky
BBC journalist Clive Myrie – BBC
BBC journalist Emma Barnett – BBCPage 14In My Skin – Clémentine Schneidermann
BBC Sounds podcasts – BBC
Masterchef – BBC/Shine TV
The Weakest Link – BBC/Alan Peebles
Page 15
Gentleman Jack – BBC/Lookout Point/Aimee Spinks
Page 18-19
BBC Newsroom – BBC/Jeff Overs
Page 20
Ukrainecast on mobile phone – BBC
BBC journalist Chris Mason – BBC
Cost of Covid – BBC
Dominic Cummings – The Interview – BBCPage 22
Dodger – BBCPage 24
Newsround – BBC/Amy Brammall
BBC Young Reporter – BBCPage 25
Tiny Happy People – BBC/Matt Squire
Biff and Chip – BBC
Share Your Story – BBCPage 26
The Green Planet – BBC Studios/Paul Williams
Page 28
Vigil – BBC/World Prodctions/Mark Mainz
BBC Proms – BBC/Chris Christodolou
Uprising – BBC/Rogan Productions/Syd Shelton
Page 29
Euro 2020 – ©Getty Images UK
Confessions of a Drug Mule – BBC/Blast Films
Vigil – BBC/World Prodctions/Mark Mainz
BBC DJ Victoria Jane – BBC
The Green Planet – BBC Studios/Paul Williams
Page 30
Things Fell Apart – BBC Sounds
Forgotten Composers – Ben McKee
Strictly Come Dancing – BBC/Guy Levy
Portraits of the Holocaust – BBC/Tom Hayward
Big Bee Challenge – BBC/Joseph Sinclair
Alma s Not Normal – BBC/Expectation TV/Matt Squire

274

Annual Report and Accounts 21/22

Page 34
Then Barbara Met Alan – BBC/Dragonfly Film & Television
Productions Ltd/Samuel Dore
Page 36
Angels of the North – BBC/Twenty Six 03/Paul Husband
Audio Lab Class of 2022 – BBCThe Responder – BBC/Dancing Ledge/Rekha Garton
Page 37
Disclosure – BBC Scotland/Gavin Hopkins
Dreaming Whilst Black – BBC/Big Deal Films/Anup Bhatt
Page 38
A Killing in Tiger Bay – BBC
The Pact – BBC/Little Door (The Pact)/Warren Orchard
Slammed – BBCPage 39
Float – Black Camel/BBC Scotland
Guilt – BBC/Mark Mainz
SpeakGaelic – BBC Alba/Alan Peebles
Page 40
100 years of Union – BBC/Dragonfly TV/Seamus
McCracken
The Fast and the Farmer-ish – BBC/Alleycats TV/Stephen
Davison/Pacemaker Press
Hope Street – BBC/Long Story TV/Christopher Barr
Page 41
Yorkshire Firefighters – BBC/Wise Owl Films
Villages By The Sea – BBC/Purple Productions/Sarah Lucy
Brown
BBC Radio Devon – BBCPage 43
The Outlaws – BBC/Big Talk/Four Eyes
Page 44
BBC journalist Yalda Hakim – BBC/Gus Palmer
Page 46
BBC Pashto’s Sana Safi – BBC
Ros Atkins On... – BBCPage 47
BBC journalist Lyse Doucet – BBCPage 50
Virtual in Person participants – BBCPage 51
The Outlaws – BBCPage 52
Leigh Tavaziva – BBC/Guy Levy
Page 61
Miriam Barker – BBC/Miriam Barker
Newsnight studio – BBC/Keiron McCarron
Page 64
CBBC studio – BBC/Rachel Joseph
Page 68
RuPaul s Drag Race UK – BBC/World of Wonder/Guy Levy
The Catch Up – Robert Timothy/BBC
Mood – BBC/Bonafide
The Fast and the Farmer-ish – BBC/Alleycats TV/Stephen
Davison
Page 70
COP26 at Pacific Quay – BBC/Double Take Projections
Page 72
Look East – BBC/Ian Kelly
Page 73
Children In Need Rickshaw Challenge – BBCPage 74
Share Your Story – BBCPage 75
Strictly Come Dancing – BBC/Guy Levy
Page 76
The Earthshot Prize image – The Royal Foundation of The
Duke and Duchess of Cambridge
BBC camera operator – BBC Studioworks
Page 77
Tom Fussell – BBC/Adam Lawrence
Page 78
Comic Relief – BBC/Comic Relief/Jake Turney
Page 80Pressed – © BBC Sounds 2021
Page 81
Bluey – © Hannah Puechmarin
Page 82
BBC Studioworks studio at Kelvin Hall – BBC Studioworks/
Andrew Lee

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Page 86
Tim Davie – BBC/Alistair Heap
Kerris Bright – BBC/Guy Levy
Tom Fussell – BBC/Adam LawrenceCharlotte Moore – BBC/Guy Levy
Jonathan Munroe – BBC/Alistair Heap
Gautum Rangarajan – BBC/Guy Levy
June Sarpong – BBC/Adam Lawrence
Rhodri Talfan Davies – BBC/Patrick Olner
Leigh Tavaziva – BBC/Adam Lawrence
Page 203A very British Scandal – BBC/Blueprint
Page 221
Top Gear – BBC Studios/Vincent Dolman
Doctor Who – BBC Studios/James Pardon
Green Planet – BBC Studios/Paul Williams
Strictly Come Dancing – BBC/Guy Levy
The Beaker Girls – BBCBlue Peter – BBC
Back cover
The Tourist – BBC/Two Brothers Pictures/Ian Routledge
BBC journalist Clive Myrie – BBC
Strictly Come Dancing – BBC/Guy Levy

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