THE BBC is being urged to make further cuts next year, despite being on track to save £1 billion, Whitehall’s spending watchdog said. 

The National Audit Office (NAO) said that the corporation is due to meet its saving target after increasing the number of repeats on its three main television channels and cutting back on new shows. 

The corporation has until recently limited the number of repeats on its channels, but in September it estimated that 41 per cent of its annual savings would come from cuts to content and the scope of services.

The NAO’s forecast, released today, concluded that the BBC has made nearly £1bn in savings over the last five years, surpassing its initial target of £800 million. 

However it adds that “significant further savings” in the coming years will need to be made.

Journalists’ union NUJ has branded the NAO’s report “worrying on many different levels,” and condemned calls for further cuts.  

“It is not a wasteful organisation and has cut a billion pounds from its budget already but to expect yet more cuts on top of those is unrealistic and will slowly destroy the BBC that we all love,” NUJ national broadcasting organiser Paul Siegert said. 

The BBC was warned earlier this year by the NAO that it faced “financial uncertainty” due to its over-reliance on the TV licence fee and falling audience figures. 

The broadcaster is currently in negotiations with the government about settling a new licence fee. 

Mr Seigert added that the imminent cuts make the need for a good licence fee settlement even more important. 

“Anything less than an increase linked to inflation would be potentially disastrous and would mean cuts to services across online, radio and TV,” he warned.