Based on an ongoing assessment of the effect of new investments on the market, the BBC Trust has authorised a £30.7 million budget hike over the next three years for BBC Online - £22 million pounds less than requested, Journalism.co.uk reported Friday.

The BBC has been asked to save £1.9 billion from now until march 2012, a decision partly influenced by the economic recession. BBC's reduced budget will likely include a pay freeze for upper level management this year, and, at the most, "modest pay increases for other staff."

Speaking at Thursday's MediaGuardian Changing Media Summit, BBC's Director-General Mark Thompson said that in three years, the BBC must axe £400 million from its budget so it does not not exceed its borrowing allowance, according to Journalism.co.uk.