Falling Pound Stretches BBC Foreign Budget

As millions across the globe tuned in to see history being made with the inauguration of the USA's 44th President, Barack Obama, in mid January, BBC executives were counting the cost.

Even before the huge global event was televised, the BBC's foreign news overspend had climbed to £1.2m - partly because of the struggling pound - with its value falling even more dramatically on the very day of the Obama event - and partly on foot of a continuing spate of major news stories overseas.

Events such as the conflict in Gaza and the plane crash in New York have caused the figure to steadily grow.

It had already leapt above an estimated £1m by the end of 2008, with the situation further exacerbated over Christmas when the start of the Gaza conflict coincided with the pound hitting a then record low on the markets.

Coverage of Barack Obama's inauguration therefore reduced the budget even further, despite strenuous efforts by BBC News to keep the cost of its coverage down.

However, it is anticipated that the BBC will attempt to balance the sizable overspend with savings in other news departments and may yet be on track for the current financial year.

(BMcC)