BBC Trust approves bbc.co.uk management overhaul plans

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The BBC Trust has paved the way for further expenditure on bbc.co.uk, despite a huge overspend by management in 2007/8.

The plans drawn up by the site's executive include the creation of a group controller for bbc.co.uk, who will have 'overall accountability and responsibility for the service licence'.

In its recent review of bbc.co.uk the Trust said plans for overhauling its management must be submitted and approved before future investment would be considered.

The conditions were set out by the Trust after the review found that £24.9 million spent on the site last year had been 'misallocated'.

The review said the existing management had lost 'effective control' of the website's budgets with a total overspend of £36 million – 48 per cent above its original budget of £74.2 million set by the Trust.

"We acknowledge that, given the fast-changing nature of online activities, some blurring of boundaries is inevitable and that this presents a challenge to financial accountability. However, we believe that this problem should have been identified sooner and appropriate action taken," it said.

The timetable for applications to the Trust for new investment in the site is also being reconsidered in light of the review, the BBC Executive said in its plans.

The management changes will be reviewed by the Trust after a year, a release from the body said.