Wednesday, March 30, 2011

UK Regulator to Trims its Budget by 28%

Ofcom, the official telecoms regulator for the U.K., announced plans to reduce its total budget by 28.2 per cent in real terms over four years to 2014/15. The majority of these cuts will be made in year one.

In 2011/12 Ofcom's total budget will be £115.8m. This is a 22.5 per cent real terms year-on-year reduction, some £26.7m. Savings will be made across a wide range of Ofcom's expenditure. Ofcom said it will retain its capability and effectiveness.

Ofcom began a significant review of its spending in early 2010, some months ahead of the Government's spending review which concluded in October. By planning early Ofcom identified and made a number of efficiency savings within the financial year ending 31 March 2011.

This has contributed to a £14.9m saving against Ofcom's budget for 2010/11. Other savings result from the change in responsibilities for the delivery of Digital Participation and delays to the implementation of measures in the Digital Economy act.