The Week: Media news - DG tells BBC to cut £400m

The BBC must make £400 million worth of budget cuts over the next three years or risk breaching its statutory borrowing limit, its director-general, Mark Thompson, has warned.

He said the cuts were needed to balance its books, including an executive pay freeze, and a reduction in the fees paid to top talent. "Given the falling away of household growth, the collapse of the commercial property market and pressure on commercial revenues, without a further reduction in spending we would exceed our statutory borrowing limit," he told a London conference recently.