BBC agrees to open books for spending watchdog

From November 2011, the National Audit Office(NAO) will have routine access to BBC management information, as well as the right to look at any papers it needs to carry out its inquiries - including confidential contracts with outside companies and performers.

However, it is not thought that the move will lift the veil of secrecy over payments to on-screen stars, because the NAO will not include "commercially sensitive" details in its reports for publication.

Until now, the NAO has conducted inquiries only at the invitation of the BBC Trust, the corporation's governing body, as part of its own value-for-money studies.

Yesterday's agreement will allow the NAO to decide which aspects of the broadcaster's operations it wants to scrutinise, bringing the BBC more closely in line with other public bodies.

In an arrangement designed to safeguard BBC editorial independence, NAO reports will not be submitted directly to Parliament but to the Trust, which will then submit them to MPs via the Culture Secretary.

The deal follows negotiations over the summer between the BBC Trust and the Department for Culture, Media and Sport.

Liberal Democrat culture spokesman Don Foster said it would help ensure transparency and value for money.

"However strong our support for the BBC, we can't allow it to waste licence fee-payers' money. We want it to provide value for money and focus on playing its part in investing in high quality UK content," said Mr Foster.

"So I welcomed the announcement last week that the BBC intends to find additional efficiency savings – without significant impact on the quality of services – to enable it to freeze the licence fee for next year.

"But the coalition wants this focus on value for money to go further.

"To help achieve this we said we would seek ways of giving the National Audit Office full access to the BBC's accounts so that – working with the BBC Trust – we could ensure even greater transparency and value for money.

"I am pleased to announce today that agreement has been reached and the NAO will have full access to the BBC's accounts. It will see BBC management information and confidential BBC contracts with third

parties.

"In all, it will be able to get a hold of any information it needs to carry out its studies. But it will happen in a way that always ensures the editorial independence of the Beeb. Another coalition promise delivered."

A spokesman for the BBC Trust said: "The NAO already scrutinises the BBC's books as part of regular reviews it carries out for the Trust and it is an important ally in our push to deliver transparency and better value for money for licence fee-payers.

"Over the past year, we've taken significant steps to open up the NAO's access to BBC information further, in particular by ensuring they have a right of access to confidential contracts, including talent pay.

"And, following discussions with Government, we can now confirm we have reached agreement with the Government to bolster these arrangements.

"We support a move to allow the NAO to choose which areas of BBC operations it will review on an annual basis.

"In our view, this does not threaten the BBC's independence from Government or Parliament, provided that the NAO continues to report to the Trust and does not question editorial decision-making. Subject to further discussion between the Trust and the DCMS, we are confident that this change can be made through amendments to the BBC Agreement within the terms of the existing Charter."