The UK Government has published the draft BBC Charter and Framework Agreement, outlining reforms that will require the organisation to be more open and transparent about its operations. The Charter confirms that all BBC employees and talent who earn more than GBP 150,000 will have their salary details published. There will also be a fair and open competition for the post of Chairman of the new BBC Board.
Other changes outlined in the draft Charter include the National Audit Office (NAO) becoming the BBC's financial auditor to scrutinise the BBC's value for money record. It also sets out that the BBC will appoint 9 board members, (including 5 Non-Executive Directors), and an additional 5 will be public appointments.
The next stage in the BBC Charter Review process will be parliamentary debates of the draft Charter and Agreement including in Scotland, Northern Ireland and Wales during the autumn. Following these debates, the Government will present the Charter and Agreement to Privy Council, to come into force on 01 January 2017. The Government has allowed for a short period of transition with the new BBC Board and Ofcom fully taking on their new governance and regulatory roles on 03 April 2017.
In a statement, BBC Director-General Tony Hall said the new Charter would deliver the strong and creative BBC the public believes in. Guaranteeing the licence fee for 11 years, Hall said that the Charter endorsed the remit, scale and scope of the BBC. He also welcomed the news that there would be an an equal number of board-appointed Non-Executive Directors alongside the ones appointed by the Government, but expressed concern about proposals to publish salary details over GBP 150,000. He said the BBC operated in a competitive market and this would not make it easier for the BBC to retain talent.
Industry group DTG also responded to the publication of the draft Charter. In a statement, the DTG said it welcomed the obligation for the BBC to consider both the negative and the positive market impacts of their activities, in particular the recognition that 'the BBC is obliged to work closely with others and share its knowledge, research and expertise for the wider public benefit.'
