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BBC accused of squandering £100m on severance and marketing bills

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By John Glenday, Reporter

July 22, 2014 | 2 min read

The BBC has come under fire over the scale of its severance pay-outs and marketing budget, again, after it emerged that the bill came close to £100m last year – despite an ongoing austerity drive.

In its annual report the BBC outline how programme budgets had been reduced and audience appreciation dwindled - but the broadcaster still added to its headcount despite pledges to create a more streamlined body.

Mixed success was also reported in senior management costs, with total expenditure falling even though the number of managers earning in excess of £220,000 per year actually increased.

Putting a positive spin on the report BBC director general Lord Hall said it had been a ‘fantastic year’, citing annual savings of £374m and the appointment of Evan Davies as Newsnight host.

A BBC spokesperson said: “The report clearly shows that severance payments have declined since Tony Hall introduced a cap on them in September 2013, but like any organisation when long standing members of staff are made redundant they are contractually entitled to payments. The cap means no longer can anyone receive more than £150,000 in severance.”

“Our spend in this area (marketing) is now lower than two years ago and is used to make audiences aware of new programmes and services.”

Severance pay in 2013 ran to £25.6m, a sharp reduction on the £40.2m figure reported in 2012-13.while the marketing bill came in at £71.9m.

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