New BBC Online licence confirms reduced service

The BBC Trust has published its revised service licence for BBC Online following a strategic review

In January the Trust announced a 25 per cent cut to the BBC Online budget, resulting in the loss of 360 jobs and the closure of almost half of the BBC's 400 websites.

The revised service licence for BBC Online sets its 2011/12 budget at £120m. The report states: "Any planned or actual change in annual expenditure on the service of more than 10 per cent in real value requires approval from the BBC Trust and may entail variation of this service licence.

"This parameter of change is set to allow variations in spending which arise from regular, cyclical factors such as spending on major sports events, a reasonable level of operational flexibility and changes in accounting policy.

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