BBC: 'We bring real economic value'

BBC chief operating officer Caroline Thomson has pledged to "nail the myth" that the corporation does not provide value to the UK economy.

During a speech today at the Oxford Media Convention, Thomson will claim that every £1 of the £3.6 billion licence fee actually generates £2 for Britain.

Her comments will embellish a recent report by accountancy firm Deloitte, which said that the BBC generates £7.6bn per year for the UK, while £4bn would be lost if it were privatised.

The report claimed that the BBC's radio stations contribute £1bn in economic value, its online operation generates £300m and commercial arm BBC Worldwide brings in £866m.

Writing on a BBC blog this morning, Thomson said that the BBC's mission is to provide programming and content that delivers "real value and quality to licence fee payers".

However, she accepted that the expansion into emerging digital and creative industries means that the BBC often "spills over into the wider economy".

Despite persistent criticism, Thomson said that it is "important to nail the myth the BBC only has a negative market impact - in fact, it is very often an important force for good in the economy".

She added: "This new evidence shows the licence fee is a force for good. It provides us with more than just quality programmes - it also boosts UK plc supporting thousands of jobs and businesses, many of which are in the private sector.

"This evidence will ensure that as we focus on creating quality programming we can also think about how best to spread the knock-on economic benefits to local and regional economies, including through our strategy review."

The Deloitte report will play a central role in BBC director general Mark Thompson's strategic review of the corporation. It particularly praised the BBC's support for independent production firms, with 40% of its television programmes being produced by the sector.

Thomson pledged that the review will consider more ways to spend money on quality content to provide a "further shot in the arm for our creative industries".

However, she also accepted that the BBC needs to make more strides towards efficiency to secure greater value for the licence fee investment.

"We are driving down spend on both senior manager pay and talent as the market changes. Whilst we operate in a competitive market and the public tell they do expect top artists on the BBC, we are already getting the best for less," she said.

"In a tough economic climate, we need to be more conscious of our market 'footprint'. Our strategy review will consider issues of the BBC's size and scope carefully.

"It will define the boundaries. At the same time, it is important to nail the myth the BBC only has a negative market impact - in fact, it is very often an important force for good in the economy."