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BBC payoffs 'caused by a culture of cronyism'

The Public Accounts Committee has accused the BBC of "a failure at the highest levels" in handing over excessive payoffs to senior staff.

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BBC Trust 'regrets licence fee payers were let down'

A BBC Trust spokesman said the PAC's work had "helped inform" the corporation's plan to simplify the way it was run which were announced last week.

We greatly regret that licence fee payers were let down by this episode. They are entitled to expect that their money is spent wisely. Since 2009, the trust has worked successfully with the executive to drive down senior manager pay; and we support Tony Hall's speedy action to impose a cap on severance payments in the future.

We have already announced measures that address the committee's call for more rigorous scrutiny of the BBC's performance and clarify the Charter's requirement that the BBC Executive manages the BBC while the trust represents the licence fee payer.

As part of implementing these measures, we will pursue the committee's recommendation that the trust and executive record and communicate decisions properly so that audit concerns raised in the PAC report are addressed.

In addition, the trust's scrutiny role will, in future, be much more transparent, so that licence fee payers themselves can judge how well the BBC is run.

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