Written evidence from BBC World Service
FCO/BBC WORLD SERVICE:
FUNDING AGREEMENT
FOR 2010-11.
In the light of the current challenging financial
circumstances facing the FCO, the FCO and BBC World Service have
examined how best they can make maximum use of the financial resources
granted by Parliament. The following points have been agreed:
1. As is normal practice, BBC World Service's
projected underspend of £4 million for the fiscal year 2009-10
will be offset against the FCO's projected overspend in 2009-10
resulting from the withdrawal of the Overseas Price Mechanism
(OPM).
2. For the financial year 2010-11 only,
the FCO and BBC World Service have also agreed that £3.7
million of the allocated World Service resource be made available
to the FCO with the express understanding that this will not be
a permanent reduction in the BBCWS baseline.
3. The additional assistance in 2010-11
is an exceptional measure arising from pressures on the FCO caused
by the withdrawal of the OPM. The FCO recognises the valuable
contribution of the BBC World Service and will make every effort
in the forthcoming Spending Review to support BBCWS in negotiating
satisfactory funding beyond 2010-11. This support will include
priority backing for any BBCWS bid to access HMG modernisation
funds in line with the scale of contribution made by BBCWS to
help meet the FCO's OPM pressures in 2010-11. The FCO will also
agree greater flexibility for BBCWS working capital.
4. This breach of the ring-fence arrangements
is designed to protect BBCWS budgets within the FCO grant in aid
and is regarded as exceptional to this year.
Peter Horrocks
Director
10 February 2010
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