BBC 'generates £8.1bn for Britain'

The BBC delivers more than £2 to the British economy for every pound of the £3.6 billion television licence fee, a new report has claimed.

According to a study by accountancy firm Deloitte, the BBC's domestic activities generated £8.1bn for the economy in the last financial year, up from £7.6bn in the previous year.

Despite the BBC's best efforts to boost production and activity around the UK, the corporation remains largely London-centric, reports The Guardian.

The Deloitte report indicated that 69% of the BBC's gross economic contribution comes in the capital, although its benefit in Wales, Scotland and Northern Ireland has increased.

The corporation has committed to making half of its network television programmes and spending 40% of its radio budget outside of London by 2016.

Much of that will come from the transfer of production operations to the new BBC North building at Salford Quays, along with the opening of a new drama village near Cardiff.

Lord Chris Patten, whose appointment as the new chairman of the BBC Trust was approved by MPs last week, will preside over a period of major cutbacks in the BBC's spending.

The corporation has committed to 20% cuts across its entire operation over the next four years, in response to the six-year freeze to the licence fee and new funding obligations, such as BBC World Service.

Last week, Lord Patten told a select committee of MPs that he expects "huge fusses" over the cutbacks, as there will be "all hell let loose".