56th Report - BBC Accounts and Trust Statement 2024–25
Select Committee
Public Accounts Committee
HC 1230
21 November 2025
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Fifty-sixth report from Session 2024-26 · published 19 Jan 2026
Recommendations & Conclusions
9 results
13
Conclusion
Accepted in Part
Capita's IT system upgrade for digital licence fee engagement significantly delayed.
Conclusion
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 …
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Government Response Summary
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.
HM Treasury
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14
Conclusion
Accepted in Part
BBC's delayed adoption of milestone payments and Capita's lack of sales incentives.
Conclusion
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 …
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Government Response Summary
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.
HM Treasury
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16
Recommendation
Accepted in Part
BBC's commercial returns reporting lacks transparency, hindering parliamentary assessment of strategic objectives.
Recommendation
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 …
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Government Response Summary
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.
HM Treasury
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17
Conclusion
Accepted in Part
BBC uses increased borrowing capacity for commercial growth and supporting public service broadcasting.
Conclusion
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 …
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Government Response Summary
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.
HM Treasury
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18
Recommendation
Accepted in Part
BBC's investment decisions lack transparent reporting on assessments and returns, limiting parliamentary scrutiny.
Recommendation
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 …
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Government Response Summary
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.
HM Treasury
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19
Conclusion
Accepted in Part
BBC's commercial activities and intellectual property ownership are vital for revenue growth.
Conclusion
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 …
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Government Response Summary
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.
HM Treasury
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20
Conclusion
Accepted in Part
BBC aims to significantly increase the proportion of its owned productions and intellectual property.
Conclusion
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 …
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Government Response Summary
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.
HM Treasury
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21
Conclusion
Accepted in Part
Strong BBC brand and international appeal underpin successful monetisation of intellectual property.
Conclusion
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 …
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Government Response Summary
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.
HM Treasury
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22
Conclusion
Accepted in Part
Creating new intellectual property is inherently uncertain, necessitating early engagement with UK talent.
Conclusion
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 …
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Government Response Summary
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.
HM Treasury
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