The BBC yesterday defended a decision to spend £1.1 million on an exercise to find out what services it should offer viewers over the next ten years.

More than £11,000 was spent on expenses while consultants were paid £76,000 and £140,000 went on hotels, hospitality and travel.

The BBC said £530,000 went on audience research, £124,000 on staff costs, and another £124,000 on production costs such as seminars.

Creative Future involved 14 months of consultation with staff, licence-fee payers and the broadcast industry.

It looked at what services the BBC should offer over the next decade and how programmes should be made available in the on-demand world.

As a result of the exercise, it was announced that Grandstand would be axed and BBC d epartments would be restructured.

A BBC spokesman said: "Creative Future is looking at the services and programmes we should be spending on over the next ten years.

"We could have done it a lot cheaper by not consulting any staff or the audience but we would have been criticised for that."