Government scraps Channel 4 privatisation

Channel 4 has announced it will remain in public ownership following the government’s decision to abandon its plans to privatise the broadcaster.

The news follows culture secretary Michelle Donelan's review of the business case for Channel 4’s sale and her conclusion that it is not the best way to ensure its long-term sustainability.

In a statement, Channel 4 said: “[The] 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.”

Although the government has decided against privatisation, it has also said it believes “change is necessary” in order to support Channel 4’s future.

Channel 4 will therefore be doubling both its investment in 4Skills, to £10m by 2025, and its number of roles outside London, from the original target of 300 positions to 600 across the UK in 2025.

The government has also announced it will remove the publisher-broadcaster requirement that currently applies to Channel 4. This restriction means that currently all of Channel 4's content is commissioned or acquired from independent producers or other broadcasters.

In a statement, the government said this had resulted in Channel 4 being “more limited than other public service broadcasters in its ability to make and own its own content”.

The government added that, in addition, it makes Channel 4 “more reliant on advertising revenue than many of its competitors” and that it wants to give the broadcaster more commercial flexibility while also supporting the independent production sector.

It is set to introduce reforms via the Media Bill, allowing Channel 4 to make and own some of its content.

The government also committed to consulting with the sector on how this relaxation should be designed and implemented.

Alex Mahon, chief executive of Channel 4, said: “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."

She continued: “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.”

Donelan said that the announcement would bring huge opportunities across the UK and that it will safeguard the future of the independent production sector.

She said: “We will work closely with them to add new protections such as increasing the amount of content C4C [Channel 4 Corporation] must commission from independent producers.”

On 4 January, Campaign reported that Donelan had urged the prime minister Rishi Sunak to scrap plans to sell the broadcaster, a proposal initially developed under the Johnson government and Donelan’s predecessor, Nadine Dorries.

The plans to privatise the broadcaster caused controversy across adland with industry leaders signing a letter, organised by Campaign, calling on the government to keep Channel 4 in public ownership.

In addition, 70% of Campaign readers thought the privatisation plan should be ditched according to a poll on Campaign’s website in October last year.