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Publishing the Trust’s Strategy Review initial conclusions alongside the Â鶹Éç’s Annual Report, he said that the Â鶹Éç needed to meet its twin obligations to the public – to provide distinctive high quality public service content and to use their money wisely.

And he stressed that the Â鶹Éç needed to accelerate changes in its behaviour, leading to greater clarity about the boundaries it operates within.

Today’s announcement follows the publication by the Â鶹Éç Executive last March of an initial set of proposals for the future of the Â鶹Éç, which the Trust has since consulted on.

Specific points in the Trust’s interim conclusions for the Â鶹Éç’s three platforms include:

Radio - The Trust concludes that, as things stand, the case has not been made for the closure of 6 Music. The Executive should draw up an overarching strategy for digital radio. If the Director General wanted to propose a different shape for the Â鶹Éç’s music radio stations as part of a new strategy, the Trust would consider it. The Trust would consider a formal proposal for the closure of the Asian Network, although this must include a proposition for meeting the needs of the station’s audience in different ways.

Online - The Trust endorses the Executive’s proposed 25 per cent budget reduction, although it will want to understand and approve the editorial changes involved. In line with the Executive’s proposals, the Â鶹Éç should sharpen online’s focus so that it is truly distinctive and has clearer editorial vision and control.

Television - At this stage there is no need for radical changes to the current portfolio, but the Â鶹Éç needs to identify future tipping points where reassessment of the structure will become necessary, such as full digital switchover in 2012 and 50 per cent of viewing on a non-linear basis. The Â鶹Éç has more to do to ensure programmes are truly high quality and distinctive.

The Trust has also announced that it supports the Director General’s proposals to close Blast! and that the decision on Â鶹Éç Switch is for the Executive to make.

The conclusions have been published against the backdrop of an Annual Report that shows a confident Â鶹Éç that is delivering for audiences on many fronts - 82 per cent of people say they would miss the Â鶹Éç if it wasn’t there and the corporation is moving in the right direction on the key indicators against which the Trust measures performance. However the Trust identifies that there is more work to be done in a range of areas.

Sir Michael said:

"The Director General presented us with a thoughtful set of proposals earlier this year in support of a clear future vision for the Â鶹Éç – a vision the Trust supports because it is rooted in the Â鶹Éç’s enduring mission to inform, educate and entertain audiences with programmes and services of high quality, originality and value.

"In order to deliver that vision we have concluded that the Â鶹Éç must accelerate changes to its behaviour, leading to a clearer definition of the boundaries within which it operates as it makes the transition to the digital future.

"The end result will be a Â鶹Éç that focuses on its two main obligations to the public - to provide distinctive public service content and to use their money wisely."

In particular, Sir Michael stressed that on the question of the appropriate size and scope of the Â鶹Éç, the message the Trust had taken from its consultation and analysis was that the Â鶹Éç should accelerate changes to its behaviour in order to prove resources are being used effectively and that it has got its priorities right. To this end the Trust would focus on ensuring the Â鶹Éç operated within clear boundaries, although the corporation must continue to serve all audiences.

The interim conclusions also include a package of measures to boost value for money and transparency, which were revealed by Sir Michael in a speech last week. These included plans to release more information about senior management and talent pay and to speed up the drive to cut the overall senior manager pay bill.

Today’s publication marks the conclusion of the first stage in the Trust’s strategy review work. The Trust will publish final conclusions in the autumn following further consideration of issues including what specific steps should be taken to promote both greater openness and further clarity about boundaries, alongside what further measures are needed to increase efficiency and to make sure licence fee payers are asked for no more money than the Â鶹Éç needs.

The Trust’s section of the Annual Report notes that the Â鶹Éç has had a good year, with some excellent examples of creative risk taking.

It also notes that following challenge from the Trust, the Â鶹Éç has made progress in other areas, including cutting the senior manager pay bill, boosting transparency in salaries and expenses and operating within clearer commercial boundaries.

The Â鶹Éç Trust has also today published interim conclusions from a service licence review of Â鶹Éç One, Â鶹Éç Two and Â鶹Éç Four. The review concludes that on the whole the services are performing well. However it highlights a need for more creative risk taking and ambition on Â鶹Éç One, more depth and ambition in factual, drama and comedy on Â鶹Éç Two, a sharper remit for Â鶹Éç Four and a move away from long-running factual daytime TV programmes that audiences tell the Trust lack quality and originality.

Note to editors

1. The Â鶹Éç's accounting year is 1 April 2009 to 31 March 2010.

2. In line with Charter requirements, the Annual Report is in two parts, with the Trust's commentary on the Â鶹Éç's performance and the detailed analysis and financial accounts prepared by the Â鶹Éç Executive Board. The full document can be accessed here.

3. In addition to the Annual Report and Accounts the Â鶹Éç Trust is today also publishing the following documents:

• Trust observations on Â鶹Éç Executive employment diversity
• Â鶹Éç Annual Report and Accounts licence fee payers' leaflet: 'Putting Quality First - the Â鶹Éç's year 2009-2010'
• World Service Research Report
• Purpose remit reports
• Media literacy research
• Trust's oversight of staff training
• Equality Impact Assessment

4. The Â鶹Éç World Service and have published their Annual Reviews today

5. The Trust challenged the Director General to undertake a review of the Â鶹Éç’s overall strategy in July 2009 to address questions about the scope of the Â鶹Éç's activities, focusing on how the Â鶹Éç can most effectively deliver its public service mission and meet audience needs and deliver value for money.

6. The Director General was asked to focus on five distinct areas -

• How can the Â鶹Éç maintain maintain best quality and distinctiveness?
• Where if necessary could the Â鶹Éç's focus be narrowed and its scale reduced?
• What will a fully digital Â鶹Éç look like?
• Can the Â鶹Éç better define the "public space" it provides?
• How can the Â鶹Éç create most value from its scale?

7. By the autumn, at the end of this process, The Trust will be in a position to set out a final strategy for the Â鶹Éç for the rest of this Charter period up to 2016, incorporating:

• The commitments, changes and further work we will require from the Â鶹Éç; and
• The measures we will use to determine whether those changes are being made.

8. Sir Michael Lyon's speech to the Voice of the Listener and Viewer from last week can be accessed here.