London, 15 July 2002: The British Government's Spending Review for 2003 - 2006 was announced in Parliament this afternoon. The World Service has won significant real terms growth in its funding. The extra investment comes on the back of an extraordinary year of achievement for the World Service in which it extended key services and won numerous prestigious awards in response to September 11th and the war in Afghanistan.   

The World Service will receive an extra £48 million spread over three years and, importantly, will provide a strong, stable capital baseline. The extra investment will enable programme services to be improved in key areas including Afghanistan and the Arab world, Africa, East Asia and Europe; to expand the service's FM presence; to develop further its successful online capability; and to support the important capital modernisation programme. 

It's a good settlement for BBC World Service and represents an average annual growth in real terms of 3.4% from the current baseline. 

It re-enforces the BBC World Service's current success, and it is a significant endorsement from the Government of the quality and impact of the World Service and recognises its importance as the best known and most respected voice in international broadcasting, bringing benefit to Britain. 

An additional £8 million, £13 million and £27 million respectively in each of the three years has been gained and the capital baseline stands at £31 million per year. It represents more than two thirds of what was originally bid for. As the Chancellor stated in the House of Commons this afternoon, the World Service baseline will rise by £38 million over the period from £201 million this year to £239 million in 2005/6. This also includes the additional £11 million for 2003/4 announced in the 2000 Spending Review. 

Importantly, at the same time as winning the new funding, the World Service must continue to carry out a rigorous programme of efficiency over the three years to help absorb rising costs. 

The Chairman of the BBC, Gavyn Davies, has welcomed today's announcement: "We feel the Government has justifiably recognised the importance and impact of the World Service by providing substantial new investment." 

Greg Dyke commented: "The World Service worked hard on preparing a well focused bid and it's good that the Government has supported it with significant real terms growth in its funding."