BBC deputy DG discusses £500m savings target as pubcaster passes £200m mark

Matt Brittin (left) and Rhodri Talfan Davies

BBC deputy director-general Rhodri Talfan Davies has discussed how the UK pubcaster plans to reach its £500m (US$667m) savings target by 2028, with £200m already saved.

Speaking at a Broadcasting Press Guild lunch in London on Tuesday, Talfan Davies outlined the major cost-cutting drive at the BBC, which has so far axed around 1,200 roles, while the linear services of BBC Three and BBC Scotland will close in spring 2027.

With roughly £300m in savings still to find, Talfan Davies said the BBC’s executive team is considering its options and nothing in the next phase has been confirmed or shared with staff, with no “big savings” announcements planned until early 2027.

Numerous high-profile shows have also been axed, and Talfan Davies was asked how the BBC decides what stays and what goes.

“Look, there’s not an algorithm, you’d be pleased to know,” he said. “They’re looking at which programmes and formats aren’t working or aren’t delivering the same impact as they might have done historically.

“They’re looking at where they need to dial up, so moving more money towards third-party platform services like social media. You’re looking at huge areas where you might be able to drive a little bit more efficiency.

“The other big piece is technology, which is where can you deploy technology responsibly within the BBC that can make a material difference?”

It comes as the BBC continues to negotiate with the UK government on the reform of the current licence fee model, which DG Matt Brittin has labelled a “busted flush.”

With the broadcaster’s Royal Charter up for renewal at the end of 2027, the government is understood to favour an extension of the licence fee to cover digital platforms such as YouTube, Netflix, Amazon and Disney+ via a streaming levy.

Talfan Davies said any funding reform must ensure the BBC can retain its significant scale and ambition, with the BBC expecting a government white paper on Royal Charter renewal before the end of the year.

He added that the priorities remain reducing the impact on audiences and protecting the BBC’s public mission alongside shifting investment as audiences move from broadcast services towards digital platforms such as iPlayer and the BBC News app.

VoD platform iPlayer is going to be “transformed” over the next five years, Talfan Davies said, under the leadership of Brittin, who spoke in late August about his desire to open up iPlayer to user-generated content using a so-called “public service algorithm.”

Talfan Davies said: “Matt has come in and has the right view that we need to accelerate the development of iPlayer. It needs to feel more dynamic and it needs to feel more personalised. There is an opportunity to create a sovereign platform that brings other partners onto iPlayer.”

He confirmed the BBC and Channel 4 are in discussions about further collaboration.

Talfan Davies was appointed deputy DG in June, having previously served as interim DG, a position he had held since Tim Davie’s departure from the corporation’s top job in April.

In his role, Talfan Davies is responsible for shaping and delivering the BBC’s editorial strategy and safeguarding the public’s trust in the organisation.