We will raise £355m a year by March 2008 to put back into programmes and services.
Overall, the changes are about putting money into programmes and services for audiences, not taking it out. There is a net transfer from spend on support to spend on output.
We will raise the money by closing or outsourcing around 3,780 posts, by making savings in how we buy things, and through better use of new technology.
On average, the job reductions are 13% of staff in Content and Output divisions and 46% in Professional Services divisions. These savings will be phased over three years.
Meeting the deficit from the current Charter
Before we can reinvest the savings, we need to balance the books for the current Charter. This was a planned and known-about deficit. We need to save £155m just to do this. It's why divisional budgets will go down before they go up.
Once this is done, we can save and reinvest for ourselves.
Reinvesting in programmes
There will be a growing fund to reinvest the money between now and 2008/9:
- £25 million in 2005/6
- £100 million in 2006/7
- £225 million in 2007/8
- £355 million in 2008/9 and for each year thereafter
In reinvesting we'll spread roughly 50/50 the need to boost the quality of today's services and putting money into services of the future.
Extra cash will go early on to BBC ONE, as it influences people's opinions of the BBC more than any other channel, network or service.
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