BBC's move doubles to £867m

Steve Hartley

August 07, 2009

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MOVE An artist's impression of Media City

THE BBC's controversial move to Salford's MediaCity could cost a staggering £876m, more than double the original estimate of £403m, it has been revealed.

The corporation is moving five of its divisions - including sport, children's and Radio 5 Live - out of London and hopes to create a `media powerhouse' in the north by 2013.

Document

The BBC expects to spend £170m on rent by 2030, £218m on new TV studio services and £15m on new radio and orchestra studios.

But a leaked document suggests the final costs could in fact be higher than £876m. It warned of `major risks around (the) cost budget'.

The BBC said last night the figures were `early estimates from an internal budget document' that did not take into account the `significant' savings the move would bring.

Nor did they take into account the 15,500 jobs that would be created or the £1bn that would be pumped into the local economy in Salford, said a corporation spokesman.

'Ludicrous'

But the BBC's media rivals hit out at the new figure, with Luke Johnson - chairman of Channel 4 - branding it `ludicrous'.

He said the corporation was `embarking on a grand scheme for political reasons', adding: "Unlike those in the private sector, they are not subject to the commercial realities of a structural and economic recession. This is an Alice in Wonderland approach."

The BBC spokesman said: "The figures are early estimates from an internal budget document.

"They do not include the significant savings that will be made in moving departments out of London after 2013 to the North of England.

'Powerhouse'

"The BBC North project will create a new powerhouse of media production and innovation for the North of England offering new opportunities and local investment.

"The move to BBC North is still in its early stages, however the BBC has committed to achieving a cost-neutral outcome."

The BBC hopes to recoup some of its costs by selling its Manchester HQ in Oxford Road, as well as pocketing a £20m tax-payer funded grant from Salford council.

It will also avoid having to pay MediaCity staff a London Weighting Allowance.

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The Official (07/08/2009 at 08:32)

Well there's a surprise. A publicly owned body who goes way over budget.

It is the same with the Olympics. The government forgot to add VAT! Can you believe it? The administration responsible for VAT forgot to add it. It is no surprise as it is run by ex-teachers and a postman.

ebble, manchester (07/08/2009 at 09:34)

The BBC's move to Salford shows that its supposed independence of government is a myth. No independent broadcaster would have touched Salford with a bargepole, but the BBC had to do it to keep its paymaster happy.

What a mess.

Why do we need a government financed broadcaster anyway, especially when it produces rubbish like Eastenders and hundreds of TV programmes of similar dire quality?

PW, Manchester (07/08/2009 at 10:01)

Do all Government departments and corporations work out their budgets on the back of an envelope? Don't get me wrong, there will always be a variance, but the authorities are always double or treble their original predictions. It doesn't really matter as it's not their money anyway, and they have a well of funds they can draw on, even if they have to pump it dry.

citycentre, manchester (07/08/2009 at 10:36)

PW, Manchester

It wouldn't suprise me to learn that after a sensible plan is made, and cost calculated, the reported price is then halved to try and keep the "do it on the cheap" British public and media happy.

Zimmerman, manchester (07/08/2009 at 11:33)

Get ready for another massive BBC licence hike to pay for the move .its time the great british public got some backbone and started to write to their MPs and demanded the licence fee dropped and they should be protesting to stop this cashcow called the licence fee.

Zimmerman, manchester (07/08/2009 at 11:36)

I would like to know how much does the third world pay for the world service? or how much do other countries pay for listening to "Our" BBC programs Ect. Answer no doubt "NOTHING" so again its the great british public paying for others to get free radio Ect,while we have people living in poverty in britain struggling to pay for a licence.TYPICAL RIP OFF BRITAIN.And we stand for it!

Thomas The Tank, Rusholme (07/08/2009 at 12:44)

No surprise here. Par for the course as they say. Moving swiftly on.............

Knowall, stretford end (07/08/2009 at 12:58)

Why has it doubled, building costs have come down, or are the BBC being riped off because they are a public corporation. A typical example of this is already occuring in Salford, during the regeneration work in Langworthy, the council were quoted £4000 for a job on a particular house, knocking down an internal wall and joining two rooms. The same company offered to do it for £400 if it was a private quote between them and the home owner, 10 times lower. Another example the council thought a project should cost about £0.5m so it went to tender the return prices were £1.2m and £1.3m, when questioned why it was so much more than the estimate by council staff the builders said that the council were using an out of date price book. The price was questioned at local level and a new quote duly came back for £0.7m nearly half what the builders wanted. their excuse brick prices had gone up 600% and timber 1800% in the past year, my reply a rip off.
But back to the BEEB, London based therefore London rules come in work out a proper price for a job double it in the quote and then discover you forgot something and double the quote again.

Mr Manchester (07/08/2009 at 13:03)

Not quite correct, Ebble. Independents Tightrope and Hat Trick Productions will be working from the Broadway in Salford Quays. It will no doubt attract other companies as well as momentum builds.

The BBC still produces a large number of quality shows in my opinion, on radio and tv, not just the standard fare of Eastenders. The Street, for example, was a great series; very well scripted.

wayneold, manc (07/08/2009 at 13:37)

The Street, for example, was a great series; very well scripted.

This was just screened by the BBC, it Jimmy Mcgovern for Granada?

Dave Dave (07/08/2009 at 15:14)

Ebble's comments demonstrate exactly the reason why public corporations and public spending are good - without the government's hand Salford wouldn't be getting this investment. The government's role should be to redistribute wealth from the South East to the remainder of the country. Of course we could always take the Free Market approach like Thatcher - she was good for the North, wasn't she?

sifromlev, lev (07/08/2009 at 16:36)

The cost is a lot less and the article doesnt mention to mention that the current running costs of Sports and Childrens etc are absorbed in those total costs.

citycentre, manchester (07/08/2009 at 17:02)

"I would like to know how much does the third world pay for the world service? or how much do other countries pay for listening to "Our" BBC programs Ect. Answer no doubt "NOTHING" so again its the great british public paying for others to get free radio "

no idea, but since we take so much from the third world to subsidise our life styles here, it seems only fair to give something back

Jonesy1, Lancaster Lancs (07/08/2009 at 18:42)

About time they abolished the t.v licence and went commercial this is coming out of our pockets. But as always they get away with murder.

Mad Welsh Scotsman, Cadishead (08/08/2009 at 21:09)

Is it done deliberately to get approval, once the job is underway, tell the public it will cost more but we have to do it because we've already spent £xm on it already. Or have the poles gone back home so the workforce costs more now.

If it was their own money, the situation would be totally different

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