Ofcom announces budget reduction and savings

31 March 2011

Ofcom today announced a significant reduction in its budget for 2011/12.

The cut follows an Ofcom programme launched in early 2010 to identify significant expenditure savings in response to the challenge facing the public sector more generally. It also builds on Ofcom's track record of reducing its budget year-on-year to reduce its burden on taxpayers and stakeholders.

Four year spending reduction

Over four years to 2014/15 Ofcom will reduce its total budget by 28.2 per cent in real terms. In a drive to reshape and refocus the organisation, the majority of the cuts will be made in year one.

Budget reduction for 2011/12

In 2011/12 Ofcom's total budget will be £115.8m. This is a 22.5 per cent real terms year-on-year reduction, some £26.7m. Savings will be made across a wide range of Ofcom's expenditure while maintaining Ofcom's capability and effectiveness.

Savings against Ofcom's 2010/11 budget

Ofcom began a significant review of its spending in early 2010, some months ahead of the Government's spending review which concluded in October. By planning early Ofcom identified and made a number of efficiency savings within the financial year ending 31 March 2011.

This has contributed to a £14.9m saving against Ofcom's budget for 2010/11. Other savings result from the change in responsibilities for the delivery of Digital Participation and delays to the implementation of measures in the Digital Economy act.

Lower fees and government grants

Ofcom is funded by a mixture of government grants for specific activities and fees from the stakeholders that it regulates. The saving against budget, along with Ofcom'slower budget for 2011/12, will contribute to lower regulatory fees for Ofcom's stakeholders and a reduced cost to taxpayers through lower government grant payments. Ofcom will publish its Annual Plan, setting out its priorities for 2011/12, shortly.

Further details of Ofcom's budget for 2011/12 can be found here: http://www.ofcom.org.uk/about/annual-reports-and-plans/tariff-tables/tariff-table-2011-12/

ENDS

NOTES FOR EDITORS

1.Ofcom is the independent regulator and competition authority for the UK communications industries, with responsibilities across television, radio, telecommunications and wireless communications services.

2.For further information about Ofcom please visit: www.ofcom.org.uk. Ofcom's news releases can be found at: http://www.ofcom.org.uk/media/