BBC cuts in licence fee deal 'brutal but realistic', say corporation executives

John Plunkett and Maggie Brown have covered the BBC response in an article in The Guardian.

Senior BBC executives admitted today that staff would be stunned and baffled by the scale of the cuts in the licence fee settlement, which they described as "clearly very challenging". Peter Salmon, the director of BBC North, said it was "tough, but it is tough all round". "These are pretty difficult times. This is an exceptional settlement and it's going to be difficult for the BBC but it's difficult for everyone in the whole UK economy," he added.  "On the positive side the stuff that we are taking on board are a collection of related responsibilities, a lot of which make sense given what the BBC does and what the BBC cares about – programme-making, content-making, news," said Salmon. "The most important thing for the BBC is the fact that it maintains the BBC's independence. We are very keen on multi-year settlements, on having the kind of financial security we need over a period of time so that we can plan, and also stay at arm's length from the government and government politics. It's really important to us, it's important to licence payers, it's what's kept the BBC brave and independent all these years. It's a tough day. The staff are going to be stunned and probably quite baffled by the news. You get a sense on lots of fronts you are not immune from all the big and difficult things happening in the world. The pension gap was another difficult part of the story. These are tough times."

The BBC Radio 5 Live controller, Adrian van Klaveren, also speaking in Salford today, said the corporation had been surprised at the speed of the licence fee settlement and described the cuts as "clearly very challenging". But Van Klaveren added that there was a positive side to the deal, which guarantees the future of the licence fee for the next six years. "Clearly these numbers are very challenging and will need a lot of work," There's a process that is going to take time. It's complicated and there are a lot of options. Changes need to be made over a period of years. I think all of us have been surprised at the pace of things over the last week. Numbers have moved around and each number clearly has different consequences. It will be felt more and more as years go by. We are not talking about something that has to be achieved by April 2011. There is time to work it through sensibly."

 Go to the Guardian web site to read the rest of the story.