BBC thinks deficit will rise to £492m

The BBC is projecting that its total deficit will increase to £492 million for the 2024-25 financial year. In the corporation’s annual plan, it outlined that an “exceptional increased spend” will push up the operating deficit to £468m as the BBC covers major supporting events such as the Olympics in Paris and Euro 2024, held in German cities.

According to the National Audit Office (NAO), the BBC had an operating deficit of £220m in 2022-23.

“It is clear that substantial public funding is vital to the BBC’s future to allow us to deliver our public service mission,” the BBC’s annual report says.

“In real terms, the licence fee generated 30% more income in 2010-11 than it does today – a difference of more than £1 billion a year.

“Various costs have been added, followed by two years of a frozen licence fee at a time of high inflation.

“This has also coincided with a reduction across the media sector in the availability of ‘coproduction’ funding to help spread the investment into some of our larger titles and programmes.

“Other wider sector challenges have also increased financial pressure on the BBC’s commercial activities.

“So the BBC’s finances are under significant strain.”

The corporation had a £124m net surplus in 2021-22, the NAO said.

In January 2022, the licence was frozen to £159 for two years, and will increase this year to £169.50 a year.

BBC director-general Tim Davie announced on Tuesday that an additional £200m will have to be saved following the corporation already announcing annual savings of £500m.

The corporation has already cut £400m from its budget.

Mr Davie also said that the corporation will launch research into how the broadcaster could re-approach the licence fee post-2028, which would include “how it could be more progressive”.

The BBC is also set to cover the general election, which is expected this year, look at introducing more artificial intelligence (AI) into its reporting, and celebrate flagship shows’ anniversaries.

EastEnders has its 40th anniversary in early 2025, while Strictly Come Dancing will celebrate its 20th birthday later this year.

Mr Davie said: “This is going to be a significant year for the BBC.”

‘SIGNIFICANT YEAR’: BBC director-general Tim Davie.