BBC Accounts and Trust Statement 2024-25

Public Accounts Committee Open Inquiry
Opened: 10 Jul 2025 Parliament page
An average 85% of UK adults use the BBC each week, spending 6hr26min watching BBC TV/iPlayer. In 2023-24, there were 23.9 million TV licences in force at the end of the year, around 775,000 of which were free licences for those aged over 75. In 2023, the value of the … Read more
6 Recommendations
26 Conclusions
1 Report
1 Oral session
3 Letters
1 Event
Activity timeline 7 events
14 May
2026
Correspondence
27 Apr
2026
Correspondence
16 Mar
2026
Correspondence
19 Jan
2026
Report published
21 Nov
2025
Report published
15 Sep
2025
Oral evidence
15 Sep
2025
Formal meeting (oral evidence session) · The Grimond Room, Portcullis House
Oral evidence sessions 1 session
15 Sep 2025
View on parliament.uk
Leigh Tavaziva · BBC Shirley Cameron · BBC Tim Davie CBE · BBC
Title HC No. Published Items Response
56th Report - BBC Accounts and Trust Statement 2024–25 HC 1230 21 Nov 2025 32 Responded
Recommendations & Conclusions
32 results
2 Conclusion Deferred
56th Report - BBC Accounts and Tru…
Set timeframe for digital licences and outline plans to enhance customer engagement and reduce evasion.
The BBC has not adopted opportunities to digitise the licence fee, resulting in missed opportunities for cost efficiency and more customer engagement. The cost of collecting the licence fee is rising, partly because of the BBC’s reliance on postal correspondence … Read more
Government Response
The BBC partially agreed, explaining its existing processes for Capita contract management and rejecting the use of incentives for income or evasion reduction as inappropriate. It did not commit to setting a timeframe for digital licences or outlining plans to capture customer email addresses.
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3 Conclusion Accepted
56th Report - BBC Accounts and Tru…
Report annually on commercial investment returns and optimisation of debt limits and cash reserves.
The BBC does not provide clear information about its commercial investments, or targets and actual returns from its commercial activities. The BBC has sought to offset real-terms reductions in licence fee income by increasing savings and boosting returns from its … Read more
Government Response
The BBC partially agreed, committing to publish BBC Commercial’s overall returns, including dividends, annually in its Annual Report and Accounts. It also noted existing reporting to Ofcom but did not explicitly commit to reporting on the optimisation of debt limits and cash reserves.
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4 Conclusion Accepted
56th Report - BBC Accounts and Tru…
Prioritise generation of new intellectual property and report clearly on progress against its targets.
Progress in developing new IP remains behind target, which in turn will limit sustainable long-term revenue streams. The BBC told us that it has achieved 31% of income for 2024–25 from its most profitable streams through new intellectual property (IP), … Read more
Government Response
The BBC agreed that generating new IP is important, describing its ongoing activities in content creation, brand nurturing, and investment in third-party IP. It stated it already reports on Owned IP success but will not split out a specific IP target in its Annual Report and Accounts.
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5 Recommendation Accepted
56th Report - BBC Accounts and Tru…
Set out plans to ensure access and engagement with all audiences, including digital innovation.
The BBC’s mission to ‘serve all audiences’ is at risk as younger audiences choose other media providers, while the BBC’s digital- first strategy could risk alienating non digital audiences. As younger viewers turn to other platforms and older or less … Read more
Government Response
The BBC agreed and stated the recommendation is implemented, detailing its existing digital-first strategy, initiatives for engaging younger and unconnected audiences, and current reach statistics across various platforms.
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6 Conclusion Accepted
56th Report - BBC Accounts and Tru…
Communicate clearly how 'Across the UK' initiatives will enhance local community representation and sustain trust.
The BBC is a trusted institution but its relevance across the UK is under pressure. While the economic benefits of the “Across the UK” programme moving production outside of London are now clearly quantified, in response to this Committee’s past … Read more
Government Response
The BBC agreed, explaining that its 'Across the UK' programme has already moved significant network programming and commissioning outside London to improve audience portrayal and diversity of voice, and it intends to build on these existing plans.
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1 Conclusion Rejected
56th Report - BBC Accounts and Tru…
Committee took evidence on BBC Group Annual Report and Licence Fee Trust Statement.
On the basis of reports by the Comptroller and Auditor General (C&AG), we took evidence on the British Broadcasting Corporation (BBC) Group Annual Report and Accounts 2024–25 and the Television Licence Fee Trust Statement 2024–25. We heard from Tim Davie … Read more
Government Response
The BBC explicitly disagreed with the committee's recommendation (even though the provided text is an introduction), explaining its statutory duty and current methods for licence fee collection. It committed to provide an update on the practicalities of making an e-licence the default position in its 2025/26 Licence Fee Trust Statement.
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7 Conclusion Deferred
56th Report - BBC Accounts and Tru…
BBC faces over £1.1 billion in lost income from licence fee evasion and declarations.
Potential lost income for the BBC in 2024–25 is estimated to exceed £1.1 billion. Licence fee evasion increased to 12.52%, up from 12.04% in 2023–24, representing up to £550 million in lost revenue. The BBC did not set a target … Read more
Government Response
The government responded by discussing measures related to 'Britain’s illegal meat crisis,' biosecurity at the border, and animal vaccine development, entirely unrelated to the BBC or licence fee evasion.
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8 Conclusion Deferred
56th Report - BBC Accounts and Tru…
Increased licence fee enforcement visits yield disproportionately low licence purchases and court cases.
The BBC increased enforcement of the licence fee system by carrying out nearly 2 million visits to unlicensed households in 2024–25, about 50% more than in 2023–24, driven by a rise in visiting officers (from 172 to 229) and visits … Read more
Government Response
The government responded by outlining strategies and actions related to animal vaccine availability and development, entirely unrelated to BBC licence fee enforcement.
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9 Conclusion Deferred
56th Report - BBC Accounts and Tru…
BBC's digital account data cannot directly support licence fee enforcement activities.
We queried why digital audience engagement through the accounts necessary to use iPlayer cannot support more digital licence fee enforcement activities. The BBC told us that its household-address based licensing system does not match individual based BBC account data, so … Read more
Government Response
The government responded by outlining work related to a Sanitary and Phytosanitary (SPS) agreement with the EU and strengthening resilience to animal disease, entirely unrelated to BBC iPlayer or licence fee enforcement.
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10 Conclusion Accepted
56th Report - BBC Accounts and Tru…
BBC lacks public evasion targets, prioritising internal revenue goals and customer service incentives.
The BBC did not set an evasion target for 2024–25, and we asked whether there were any internal targets that had not been publicly disclosed.16 The BBC told us that it had clear internal revenue targets and a target for … Read more
Government Response
TVL focuses on Licences in Force and implicit in that is minimising evasion. The BBC carries out trend modelling to forecast changes in licensable consumption and trends in evasion. The BBC’s activities on collection and enforcement focus on availability of service and fair and proportionate treatment of customers.
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11 Conclusion Acknowledged
56th Report - BBC Accounts and Tru…
Licence fee collection costs increased significantly, driven by postal expenses.
In 2024–25, the BBC spent £166 million on collection of the licence fee, (equivalent to 4.3% of licence fee income), up from £143 million (4.0%) in 2023–24. It issued 60.2% of licences electronically, and around 40% paper licences.19 The BBC … Read more
Government Response
The BBC will consider the regulatory aspects and practicalities of making an e-licence the default position and will give an update on this in the Licence Fee Trust Statement for 2025/26.
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12 Conclusion Deferred
56th Report - BBC Accounts and Tru…
Many households still receive paper licences; BBC lacks specific target for electronic issuance.
We asked the BBC why a large minority of households still received a paper licence and what the BBC was doing to accelerate the shift online. The BBC explained that physical licences were issued by default unless customers opted into … Read more
Government Response
The BBC will consider the regulatory aspects and practicalities of making an e-licence the default position and will give an update on this in the Licence Fee Trust Statement for 2025/26.
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13 Conclusion Accepted in Part
56th Report - BBC Accounts and Tru…
Capita's IT system upgrade for digital licence fee engagement significantly delayed.
Capita, the BBC’s main contractor for TV licensing, has experienced significant delays in upgrading its IT systems, designed to improve the website and customer journey to support digital engagement.24 The BBC told us that delivery had been challenging and delayed … Read more
Government Response
The Committee reported on delays in Capita upgrading its IT systems for TV licensing. Lessons learned from the Capita contract are shared across TVL and the wider BBC through a joined up strategic approach to procurement and contract management.
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14 Conclusion Accepted in Part
56th Report - BBC Accounts and Tru…
BBC's delayed adoption of milestone payments and Capita's lack of sales incentives.
To address these challenges, the BBC escalated issues directly with Capita’s CEO and co-located supply-chain technologists to improve coordination. The BBC told us it switched to payment by milestone part- way through the programme, after delays had already occurred, and … Read more
Government Response
Lessons learned from the Capita contract are shared across TVL and the wider BBC through a joined up strategic approach to procurement and contract management, but the BBC does not believe that incentives on income or evasion reduction would be appropriate.
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15 Conclusion
56th Report - BBC Accounts and Tru…
BBC faces sustained financial pressures from real-terms licence fee reductions, requiring significant PSB savings.
The BBC faced sustained financial pressures due to real-terms reductions in licence fee income, which rose only modestly to £3.8 billion in 2024–25, compared to £3.7 billion in 2023–24. The rise was due to an increase in the cost of … Read more
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16 Recommendation Accepted in Part
56th Report - BBC Accounts and Tru…
BBC's commercial returns reporting lacks transparency, hindering parliamentary assessment of strategic objectives.
Alongside PSB savings, the BBC sought to increase returns from its commercial arm. BBC Commercial achieved record sales of £2.2 billion in 2024–25, up from £1.9 billion the previous year, and the NAO concluded that BBC Studios had succeeded in … Read more
Government Response
The BBC will ensure that BBC Commercial’s overall returns including dividends to the BBC Group are published annually in its Annual Report and Accounts, aligned with the 2026 publication date; they already report to Ofcom.
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17 Conclusion Accepted in Part
56th Report - BBC Accounts and Tru…
BBC uses increased borrowing capacity for commercial growth and supporting public service broadcasting.
The BBC explained that its commercial strategy involved balancing reinvestment for growth with delivering returns to support PSB.34 It told us that it is using its increased borrowing capacity, within an overall debt limit of £3 billion, to fund acquisitions … Read more
Government Response
The Committee reported on the BBC's commercial strategy, including reinvestment for growth and using borrowing capacity to fund acquisitions. The BBC will ensure that BBC Commercial’s overall returns including dividends to the BBC Group are published annually in its Annual Report and Accounts.
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18 Recommendation Accepted in Part
56th Report - BBC Accounts and Tru…
BBC's investment decisions lack transparent reporting on assessments and returns, limiting parliamentary scrutiny.
The acquisition of BritBox International in March 2024 illustrated the BBC’s strategy of investing to monetise content and secure longer-term returns.39 The BBC told us that this acquisition, alongside other initiatives, was intended to strengthen its ability to distribute content … Read more
Government Response
The BBC will publish BBC Commercial’s overall returns including dividends to the BBC Group annually in its Annual Report and Accounts, aligned with the 2026 publication date; they already report to Ofcom.
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19 Conclusion Accepted in Part
56th Report - BBC Accounts and Tru…
BBC's commercial activities and intellectual property ownership are vital for revenue growth.
The BBC’s commercial activities provide a way to offset declining licence fee income, with BBC Commercial through BBC Studios, reporting turnover growth that it attributes to its ability to generate and monetise intellectual property.43 The BBC told us that commercial … Read more
Government Response
The BBC will ensure that BBC Commercial’s overall returns including dividends to the BBC Group are published annually in its Annual Report and Accounts, while reporting what is required under accounting regulations.
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20 Conclusion Accepted in Part
56th Report - BBC Accounts and Tru…
BBC aims to significantly increase the proportion of its owned productions and intellectual property.
On the specific balance between existing franchises and newly created IP, the BBC told us that in 2024–25, three of the top ten most profitable titles were IP generated from BBC Studios. The BBC explained that it tracked the proportion … Read more
Government Response
The Committee reported on the balance between existing franchises and newly created IP, including the BBC's plan to increase BBC-owned productions and IP. The BBC will ensure that BBC Commercial’s overall returns including dividends to the BBC Group are published annually in its Annual Report and Accounts.
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21 Conclusion Accepted in Part
56th Report - BBC Accounts and Tru…
Strong BBC brand and international appeal underpin successful monetisation of intellectual property.
The BBC pointed to specific examples to illustrate the commercial value that successful IP could generate, highlighting its global rights to ‘Bluey’ as having created “enormous value,” alongside other diversified commercial assets such as BritBox International.46 The BBC also stressed … Read more
Government Response
The Committee highlighted the commercial value that successful IP could generate for the BBC, including global rights to ‘Bluey’. The BBC will ensure that BBC Commercial’s overall returns including dividends to the BBC Group are published annually in its Annual Report and Accounts.
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22 Conclusion Accepted in Part
56th Report - BBC Accounts and Tru…
Creating new intellectual property is inherently uncertain, necessitating early engagement with UK talent.
At the same time, the BBC was clear that creating new IP was inherently uncertain and high-stakes: it told us that success was unpredictable, describing commissioning as a “spread-betting game” in which some developments would fail even when strategic bets … Read more
Government Response
The BBC will ensure that BBC Commercial’s overall returns including dividends to the BBC Group are published annually in its Annual Report and Accounts, while reporting what is required under accounting regulations.
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23 Conclusion Accepted
56th Report - BBC Accounts and Tru…
BBC actively increasing UK intellectual property ownership amidst capital allocation and risk management.
We asked the BBC, given it was not meeting its ambitions for new IP, what steps it would take to increase this. The BBC told us it had appointed a new CEO for BBC Studios production, was bringing in new … Read more
Government Response
BBC Studios makes and distributes content, nurturing well-known brands and formats. BBC Studios is committed to developing long-term Intellectual Property (IP), which remains central to its strategy for growing the Global Content Studio. Alongside BBC Studios-created IP, it also invests in and exploits third-party IP.
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24 Conclusion Accepted
56th Report - BBC Accounts and Tru…
BBC struggles to maintain relevance and appeal among younger audiences aged 16-34.
The BBC faces a significant challenge in maintaining relevance among younger audiences. In 2024–25, only 67% of those aged 16–34 used BBC services weekly, compared with 96% of those aged 55 and over, and below the BBC’s own target of … Read more
Government Response
The BBC is committed to delivering outstanding value to all audiences as a universal public service, and to serving younger digital-first audiences and making services available to unconnected audiences; they cite usage stats and initiatives.
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25 Conclusion Acknowledged
56th Report - BBC Accounts and Tru…
Fierce competition and fragmented media habits challenge BBC's engagement with younger audiences.
The BBC told us that it operated in an environment of “phenomenal competition” from global streaming platforms and social media, which had transformed audience behaviour.55 The BBC noted that younger audiences were increasingly fragmented in their media habits, with almost … Read more
Government Response
The BBC is committed to delivering outstanding value to all audiences as a universal public service, and to serving younger digital-first audiences and making services available to unconnected audiences.
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26 Recommendation Acknowledged
56th Report - BBC Accounts and Tru…
Universal broadband availability is crucial for the BBC's equitable transition to online services.
The inability to maintain “universal, easy-to-access distribution” is one of the BBC’s principal risks.59 When we asked about how the BBC is preparing for the transition to online, the BBC told us that any move towards it must ensure “no … Read more
Government Response
The BBC is committed to delivering outstanding value to all audiences as a universal public service, and to serving younger digital-first audiences and making services available to unconnected audiences. The BBC’s digital-first strategy aims to serve all audiences, while keeping in line with its commitment to universality; they cite usage stats and initiatives.
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27 Recommendation Acknowledged
56th Report - BBC Accounts and Tru…
Digital transition requires sequenced improvements in broadband availability to protect audience access.
The BBC cautioned that without universal provision of affordable broadband, a switchover would be “a self-inflicted wound” and reiterated the BBC’s commitment to maintaining significant broadcast services during the transition.62 It noted that, during the analogue switch off, it introduced … Read more
Government Response
The BBC is committed to delivering outstanding value to all audiences as a universal public service, and to serving younger digital-first audiences and making services available to unconnected audiences. The BBC’s digital-first strategy aims to serve all audiences, while keeping in line with its commitment to universality; they cite usage stats and initiatives.
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28 Conclusion Acknowledged
56th Report - BBC Accounts and Tru…
BBC’s 'Across the UK' programme aims to strengthen connections with regional audiences.
We heard that the BBC is widely trusted, with the Chair highlighting the World Service as a clear illustration of the BBC’s global reach and reputation.65 At the same time, the BBC is also focused on strengthening its connection with … Read more
Government Response
The BBC agrees to communicate how its Across the UK programmes and other initiatives will lead to better representation of the UK’s local communities as part of its Annual Report and Accounts.
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29 Recommendation Accepted
56th Report - BBC Accounts and Tru…
BBC demonstrates progress in relocating spend and staff through its \
On Across the UK, we drew attention to a prior Public Accounts Committee finding in 2024 that the BBC had “begun implementing its programme without a clear plan and could not readily explain the expected impact and benefits for licence … Read more
Government Response
BBC will share information on an annual basis as part of the BBC Annual Report and Accounts which identifies the level of investment in its content from the Nations and Regions of the UK as well as audience data; target date 2026.
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30 Conclusion Acknowledged
56th Report - BBC Accounts and Tru…
BBC needs to articulate clear outcomes for licence fee payers beyond staff relocation.
We asked the BBC how the Across the UK programme and other initiatives would lead to better representation and connection for communities, beyond relocating staff and spend. The BBC told us it would measure change through audience perception within regions … Read more
Government Response
The BBC agrees to communicate how its Across the UK programmes and other initiatives will lead to better representation of the UK’s local communities as part of its Annual Report and Accounts.
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31 Conclusion Acknowledged
56th Report - BBC Accounts and Tru…
BBC struggles to demonstrate clear pathway from structural changes to improved audience outcomes.
The BBC highlighted its ongoing audience research and engagement, aiming to avoid institutions feeling “distant” from the people.75 The BBC also told us about persistent differences in engagement and the extent to which people across geographies and socio-economic backgrounds feel … Read more
Government Response
The BBC agrees to communicate how its Across the UK programmes and other initiatives will lead to better representation of the UK’s local communities as part of its Annual Report and Accounts.
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32 Conclusion Acknowledged
56th Report - BBC Accounts and Tru…
Concerns remain that \
We asked whether choices labelled “local” are genuinely relevant to smaller communities, particularly in radio and local news. We underlined that local radio remains a “lifeline” for older audiences, and emphasised that, for example, “in Sheffield, local means Sheffield” rather … Read more
Government Response
BBC will share information on an annual basis as part of the BBC Annual Report and Accounts which identifies the level of investment in its content from the Nations and Regions of the UK as well as audience data; target date 2026.
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Government Response AI assessment · 31 of 6 classified
Accepted 8
Accepted in Part 9
Acknowledged 8
Deferred 5
Rejected 1
Total 6 recs + 26 conclusions
Correspondence 3 letters
14 May 2026 To committee Letter from the Director, Across the UK at the BBC relating to BBC’s Implementation of Across the UK, 25 March 2026
Parliament page
27 Apr 2026 To committee Letter from the Chief Operating Officer at the BBC relating to BBC accounts and trust statement, 16 April 2026
Parliament page
16 Mar 2026 From committee Letter to the Director General of the BBC relating to Treasury Minute response: BBC Accounts and Trust Statement 2024-25, 16 March 2025
Parliament page