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Electronic Communications

I must make progress. More specifically, the cuts that the hon. Member for South-West Surrey is today calling for could have the direct effect of damaging programme making, draining funding from the creative economy at a time when other revenue sources are drying up and undermining the successful delivery of projects of importance to the future of this country. Let me remind the House that, within the funding settlement agreed in 2007, the BBC has already made major efficiencies and is mid-way through a programme to save a total of £1.9 billion during the current licence fee period via an annual efficiency target of 3 per cent. Pay and bonuses for senior managers have been frozen for 18 months. Posts have been reduced by 7,200 since 2005, and there are a further 1,200 to go as part of further savings. Alongside this, the BBC was charged with delivering changes of critical importance. First, out of funds in the six-year settlement, it was asked to play a crucial role in the national digital switchover project by providing practical help, through the help scheme, to ensure that the most vulnerable and disadvantaged in our community can make the switch. Secondly, over the next two years, the BBC is relocating 2,500 staff to MediaCity in Salford, helping to form the first purpose-built media community in the UK, and permanently rebalancing media power in this country away from the capital and into the regions. This will bring huge benefits to the economy in the north-west, estimated at £1.5 billion and 15,500 jobs. Two further asks of the BBC have emerged since the current licence fee was settled. In response to calls from colleagues in this House, the BBC Trust has committed the BBC to making significant increases in its programme making in Scotland and Wales so that, by 2016, 50 per cent. of network productions will be made outside London.