大象传媒

The 大象传媒 relocated to Salford on time and maintained broadcast continuity, by the National Audit Office for the 大象传媒 Trust. Moreover, the latest estimates show that the final cost of the move phase should be below the 拢233 million budget approved by the 大象传媒 Trust. However, it is too early to judge the long-term impact and value for money of the move for licence fee payers.

The NAO's findings include the following:

• The 大象传媒 successfully completed the complex challenge of relocating to Salford, by using the right skills and processes, developing clear delivery plans and maintaining good communications. The 大象传媒 recruited staff with expertise in managing relocations and set up a project team that developed and implemented plans for the move.
• The 大象传媒 exceeded its target to relocate 30 per cent of staff from the 1,500 roles transferring from London to Salford (38 per cent relocated).
• To encourage sufficient staff to move, some of the allowances the 大象传媒 offered to incentivise and compensate relocating staff and minimise redundancy costs were more generous than it normally offers. For example, the remote location allowance covered the cost of renting property in Salford and travelling to and from London for two years. This allowed staff who were unable or unwilling to commit to moving permanently to keep their homes in the southeast. The 大象传媒 benchmarked some allowances, but controls over exceptions to its relocation policy for Salford were inadequate.
• The 大象传媒 estimates that the final cost of fitting out the buildings at Salford and moving people in will be 拢224 million, 拢9 million less than the revised budget approved by the 大象传媒 Trust in February 2011. The lifetime budgeted cost of relocation and operating costs up to 2030 is 拢942 million (or 拢573 million after discounting future costs to their present values). This cost does not take into account reduced spend on the 大象传媒's estate in London and Manchester as a result of the move.
• Whether the move delivers value for money will depend on the 大象传媒's ability to achieve a sustained improvement in audience approval in the north, embed new ways of working to achieve efficiencies of 拢151 million and provide sustainable economic benefits for the region.

Among the NAO's recommendations are that the 大象传媒 Trust should periodically review progress against the aims in the original business case for the move; that the 大象传媒 should establish robust systems and maintain clear records when paying allowances, so that it can demonstrate they are appropriate in all cases; and that it should continue to seek recovery of all allowance payments repayable by staff who leave the 大象传媒.

The 大象传媒 Trust accepts these recommendations and will ensure that they are implemented.聽 In its published response to the NAO's report the Trust has said that:

• It welcomes the NAO's overall conclusion that the 大象传媒 managed the relocation to Salford on time and within budget, while successfully maintaining broadcast continuity for audiences.聽
• The 大象传媒 was able to maintain continuity for audiences and minimise redundancy costs by establishing a Salford relocation allowances policy that encouraged staff to move. The Trust accepts that such a policy was justified but, having established it, it considers that any exceptions should have been rare, clearly justified and supported by well-documented business cases. It is unacceptable, therefore, that the NAO found 大象传媒 management did not adequately document the reasons for all exceptions to the standard policy.
• There are encouraging signs that the anticipated benefits of the move are beginning to be realised. The 大象传媒's relative share of overall television viewing and reach to 大象传媒 radio in the north-west has increased when compared to the UK average, more collaborative and flexible ways of working have been introduced, some efficiency savings have been delivered and there has been significant economic investment in the region. However, the Trust agrees that it is too early to conclude that the move has met its long-term objectives and it will continue to periodically review progress against the aims for the move, including efficiency savings, at the appropriate points.

Anthony Fry, Chair of the Trust's Finance Committee, said:

"The 大象传媒 has struck a sound balance in its handling of this move, part of a commitment agreed during the last Charter to better serve all audiences across the UK. Relocation allowances have helped to ensure continuity for audiences by encouraging a sufficient proportion of London staff to move, while over 250 new staff were recruited from the Greater Manchester area.聽 Now a solid and thriving production base with major live programming broadcast 24 hours a day, Salford has a strong working culture that should deliver long-term improvements in both creativity and efficiency, as long as the 大象传媒 keeps focused on these objectives.聽 Given that the move was well-managed and within budget, however, it is disappointing that some of the controls on relocation payments proved inadequate and we would not expect a repeat of this with any future moves."

Amyas Morse, head of the National Audit Office, said today:

"The 大象传媒 relocated to Salford on time and without disruption to broadcast services, and the final cost of moving should be within budget. Skills were maintained and redundancy costs reduced by offering London-based staff more generous relocation packages than it usually offers to encourage them to move, though the 大象传媒 could have controlled these better.

"However, it is too early to judge whether the move will achieve value for money for licence fee payers. It is welcome that the 大象传媒 has developed an appropriate approach to measuring the future impacts of the move but it still needs to explain how it is going to make all of its planned efficiency savings."

Notes for Editors

1. Most of the 大象传媒's decision-making and spending has been historically concentrated in London. To help address this imbalance, the 大象传媒 developed plans to relocate a number of its departments to a new regional centre in Salford.
2. The Trust-approved objectives for the relocation to Salford were to serve audiences in the north of England better, improve quality of content for all audiences, improve efficiency and provide economic and other benefits to the region.
3. Press notices and reports are available from the date of publication on the NAO website, which is at . Hard copies can be obtained from The Stationery Office on 0845 702 3474.
4. The National Audit Office scrutinises public spending for Parliament and is independent of government. The Comptroller and Auditor General (C&AG), Amyas Morse, is an Officer of the House of Commons and leads the NAO, which employs some 860 staff. The C&AG certifies the accounts of all government departments and many other public sector bodies. He has statutory authority to examine and report to Parliament on whether departments and the bodies they fund have used their resources efficiently, effectively, and with economy. The NAO's studies evaluate the value for money of public spending, nationally and locally. Its recommendations and reports on good practice help government improve public services, and our work led to audited savings of more than 拢1 billion in 2011.