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The BBC Trust's review of the corporation's bbc.co.uk activities found that in 2007/8 spending totalled £110 million - 48% over budget. Most of this increase was caused by the misallocation of £24.9m in overheads and costs to other budgets within the BBC, representing poor financial accountability, the Trust said. Until the reasons for this are addressed, it has put on the brakes.

"bbc.co.uk should continue to develop to meet changing customer needs, but the Trust will not approve new investments without further scrutiny and until confident that improved management controls are in place to ensure better financial accountability and editorial and managerial oversight," it concluded.

The decision means that £39 million of license fee money will not be invested

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as planned over this year and next. The Trust said that it will not approve this investment without greater scrutiny and in doing so will take account of public value, distinctiveness and competitive impact.

The Trust endorses the management's plans to develop the service further - particularly on areas like search and navigation, which audiences tell us could be improved," said BBC Trustee Dame Patricia Hodgson, who led the review. "But we need to be sure that additional investment of licence fee payers' money will deliver their expectations and - in doing so - does not stifle enterprise from others who seek to offer excellent online services to the public. For the benefit of those who pay, the Trust wants evidence of stronger management controls to improve financial accountability and strategic and editorial oversight before we consider new investment in the service."

On the whole the review found that the public believes - and the evidence suggests - that the BBC's online activities provide good value for money on the whole.

"The purpose of this extensive review is to make sure the public receive the best quality and value for money from bbc.co.uk," Hodgson said. "It is clear that bbc.co.uk has become a central part of what the BBC offers licence fee payers and the evidence shows that the vast numbers who use it love it."