BBC ‘too close to Peel’ say MPs

THE BBC is at risk of becoming “overly dependent” on its MediaCityUK landlord, the Peel Group.

That’s according to the Public Accounts Committee’s report into the BBC’s move to Salford.

As well as criticising the cost of relocating staff, which topped £100,000 in 11 cases and £150,000 in one, the committee said the BBC risked becoming too dependent on Peel, and repeated its concerns about the Manchester-based group’s tax affairs.

The committee also said the BBC had taken little account of the pace of change in broadcasting by signing a 10-year contract for studio space.

Committee chair Margaret Hodge MP, said: “The BBC risks becoming overly dependent on the Peel Group, which not only owns the BBC’s buildings at Salford but also the studio facilities and surrounding property.

“As an organization funded by the licence fee, the BBC should set clearly defined expectations for its relationships with its commercial partners. It must make clear that it expects the companies with which it contracts to pay their fair share of tax.

“The BBC’s decision to enter into a 10-year contract for studio space at Salford seems to take little account the fast pace of change in the broadcasting industry. The BBC could end up having to pay for studio services it no longer needs.”

The Peel Group has previously refuted the committee’s claims about its tax arrangements, saying all operating companies are based in the UK and pay the appropriate level of corporation tax. Founder and majority shareholder John Whittaker is based on the Isle of Man.