4.  OVERALL PROPERTY STRATEGY

The BBC's announced plans for substantial job reductions are being implemented now and the separate intention to relocate 1,500 staff to Manchester in 2010 has been published.

The precise details of accommodation requirements in the future will be at least partially dependent on the progress of the BBC's own cost saving initiatives and the outcome of the discussions with HM Government on the level of the licence fee in the next Charter period from January 2007. As programme making is essentially a people based process, there will be significant new requirements for accommodation as the cost reductions from the savings initiative are recycled into programming. Other accommodation requirements could arise from additional programming linked to the BBC's licence fee settlement proposals.

In the meantime the London premises are expected to be rationalised further, beyond the position shown in the plan on page 8 of the NAO Report. The revised plan, below, shows the further concentration of activity into three sites of which the White City site is key.