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MPs say BBC can do more to cut its spending

The BBC is on course to meet savings targets but could do much more to cut its spending, an influential group of MPs has said.

The corporation was on target to slash £75 million from its annual procurement bill of more than £500 million over three years to April 2008, the Committee of Public Accounts reported.

But close analysis revealed that the savings were smallest in the areas where the BBC spent the most, MPs said.

Spending in one area - people and resources - doubled to £53 million in 2006-07 because of the costs of taking on temporary staff for one-off projects like the iPlayer.

The committee recommended that the BBC should remind staff that central contracts could save money, use more electronic auctions and ensure that its suppliers also employed good procurement practice.

Chairman Edward Leigh said: "There is a lot more that the BBC can do to trim its procurement bill."

A BBC spokeswoman said: "The Trust welcomed the National Audit Office's positive findings about the BBC's procurement practices when we published their report in December last year.

"We have already accepted the NAO's specific recommendations to improve processes further in order to deliver even more savings and will review carefully the additional recommendations made by the Committee."