BBC contributes £6.5bn to UK economy, claims BBC Trust

LONDON - The BBC generates about £6.5bn a year for the UK economy, with nearly £5bn of that going to the country's creative industry, according to a report commissioned by the BBC Trust.

The report, entitled "The economic impact of the BBC on the UK creative and broadcasting sector" was carried out by PriceWaterhouseCoopers. The firm was briefed in January to conduct research into the economic impact of the BBC's publicly funded services.

The report says: "For the most part, the value of the BBC is additive." It also claims that the BBC creates about twice the economic impact of the licence fee invested in it.

"Commercially funded broadcasters would not gain significantly from a BBC funded by commercial means, although a smaller, or commercially-funded BBC would mean lower investment in the production sector," the report argues.

PWC was also briefed to identify any negative impacts, but the document states that there was "limited evidence of these".

However, the BBC Trust said it did recognise that in meeting its PSB remit there is an "inherent potential for the BBC to create negative economic impacts within the creative and broadcasting sector".

It also acknowledges that its investment in new technologies, such as online and digital radio, must be "balanced against the potential for adverse impacts on the wider market".

The BBC hopes that the 196-page document will "provide a base of evidence for the trust on a number of decisions and policy debates" and will strengthen its defence of the current licence fee structure, which is being reviewed by Ofcom in the latters' public service broadcasting review.

"The stable funding of the BBC, through a long-term licence fee, is a privilege for the BBC," the report adds, "but also a vital source of stability for the whole UK broadcasting industry."

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