[comradio-l] Ofcom announces budget reduction and savings

[CMA-L]

Ofcom has 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.

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.

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.

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.

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/

Source: http://media.ofcom.org.uk/2011/03/31/ofcom-announces-budget-reduction-and-savings/

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