The Public Value Test 
Christopher Woolard 
Head of Compliance and VFM 
September 2006 
Governance Unit 

The Trust will govern BBC services using a new 
regulatory and performance framework 
Charter & 
Agreement 
Purpose Remits 
Service Licences 
SoPPs 
Public Value 
Test 
Major review 
every 5 years 
Regular service 
monitoring 
Major review 
after 5 years 

Public Value 
Assessment (PVA) 
Market Impact 
Assessment (MIA) 
Public Value Test (PVT) 
• Undertaken by the 
BBC Trust Unit 
• Undertaken by the 
Trust – a judgement 
balancing the results 
of PVA & MIA 
• Undertaken by Ofcom 
– commissioned by a 
Joint Steering Group 
The Public Value Test process comprises three 
parts 

Joint Steering Group 

Ofcom and the BBC Governance Unit 

Kip Meek, Chief Policy Partner Richard Tait, BBC Governor 
Tim Suter, Partner Content and Standards Nicholas Kroll, Director of Governance 
Peter Culham, Chief Economist Christopher Woolard, Head of 

Compliance and Value for Money 

The JSG: 

-Sets the terms of reference for the MIA 
-Agrees the potential relevant markets for the assessment after 
considering advice from Ofcom. 
-Ensures the MIA is conducted in a manner appropriate to the nature of 

the Public Value Test and to a suitable schedule 


Public Value 
Assessment (PVA) 
Market Impact 
Assessment (MIA) 
Public Value Test (PVT) 
Fit with Purposes 
Quality & Distinctiveness 
Impact 
Reach 
Cost and VFM 
Agreed methodology 
BBC Management proposals are considered against 
the key drivers of public value and market impact 

The PVA and MIA 

• The PVA and MIA components of the Public Value 
Test must be:
a) Comparable – the costs and benefits they estimate 
must be considered together in the final balancing act 
of public value and market impact 

b) Comprehensive – all relevant costs and benefits 
should be considered, either in the PVA or MIA


c) Coherent – they should be based on the same core 
data and assumptions (having regard to any overriding 
confidentiality obligations) and they should not “double 
count” the same costs or benefits 


BBC Management submit formal application 
(plus supporting evidence) 
The Trust balances the likely public value created 
against market impact before reaching its decision 
Public Value Assessment 
(BBC Trust Unit) 
Market Impact Assessment 
(Ofcom) 
Public Value Test 
(BBC Trust) 
Trust consults on 
preliminary conclusions (28 days) 
Final decision 6 months 
3 months 
Public Representations Public Representations 

What next? 
• Invitation to make representations 
• More details at bbcgovernors.co.uk 
• Questions?