BBC to publish annual report

The BBC was publishing its annual report today after the most tumultuous year in the corporation’s history.

The report will review the performance of all BBC services and detail how British licence payers' money has been spent.

It is also expected to make reference to the Hutton Report and the Dr David Kelly affair.

The corporation is bracing itself for a grilling from MPs.

Executives will go before the select committee on culture, media and sport to answer questions about the content of the report.

Some details of the report, which is produced by the BBC governors, have already been leaked.

They include the news that Greg Dyke received a £456,000 (€683,992) payoff when he left his job as director general in the wake of the Hutton Report.

Another payment of £301,000 (€451,557) was made to Roger Flynn, the former head of the Ventures division.

The corporation is also expected to announce a financial loss of £249m (€373.55m) in the 12 months to March this year.

The BBC’s performance in collecting licence fees has improved, with the evasion rate falling to 5.7%, the lowest figure yet. The BBC will report a deficit in its pension fund for the second year running.

New director-general Mark Thompson has already pledged to cut costs and announced plans for a review aimed at increasing efficiencies, controlling costs and maximising value for money.