The Government has officially abandoned its attempt to privatise Channel 4, a day after a leaked letter confirmed the move was coming.
A leaked letter from the Culture Secretary to the Prime Minister published on Wednesday recommended the proposed privatisation of Channel 4 should not go ahead.
Culture Secretary Michelle Donelan said that “after reviewing the business case”, she had come to the conclusion that “pursuing a sale at this point is not the right decision and there are better ways to secure Channel 4’s sustainability and that of the UK independent production sector.”
The letter was leaked to LBC’s The News Agents podcast.
Under the revised plans for Channel 4, the broadcaster will be allowed to make its own programmes for the first time. During the channel’s first decade on air, many of its programmes were delivered by local ITV companies. Since then, a broader range of production companies have supplied programmes to Channel 4 and its sister services. News is produced by ITN.
Channel 4 has responded to the official Government announcement saying:
We welcome the Government’s decision that Channel 4 will remain in public ownership. This decision provides a firm basis on which to establish the sustainable direction of Channel 4, safely in the hands of the British people.
DCMS having thoroughly examined the business case concluded that the privatisation of Channel 4 is not the best way to ensure its long term sustainability. Furthermore, its decision allows us to do even more to support creative jobs and skills across the UK, to inspire and develop the UK’s world-leading creative industries, and to continue opening up the sector for those aspiring to a career in TV and film.
Alex Mahon, Chief Executive of Channel 4 added:
The principle of public ownership for Channel 4 is now set for the foreseeable future, a decision which allows us to be even more of a power in the digital world.
I am personally delighted that we will be able to do more, making positive change for the people that others don’t fight for. We will move faster, invest more, take more risks, break down barriers and push boundaries; getting up to do that every day is an utter privilege for those of us lucky enough to work at Channel 4.
Changes to Channel 4 and its governance still on the agenda.
The Culture Secretary’s letter proposes the following changes:
- Introducing a new statutory duty on the Channel 4 board to have a clear focus on the long-term sustainability of the business.
- Working with Channel 4 to agree updated governance structures that assure the Government of Channel 4’s sustainability.
- Giving Channel 4 more commercial flexibility to help it meet its new statutory obligation [this includes allowing Channel 4 to make some of its own programmes for its main channel.]
- To increase Channel 4’s investment and skills and the nations and regions: the number of roles outside of the London will be doubled by 2025.
The privatisation of Channel 4 was previously championed by former Culture Secretary Nadine Dorries. She came under criticism for claims that Channel 4 faked a show she was a participant in. In a select committee hearing, she claimed the broadcaster was in receipt of public money, when in fact it is funded by advertising.