By Ben Kerrigan-
Culture Secretary Michelle Donelan(pictured) has confirmed the Government has scrapped plans to privatise Channel 4 but has agreed c4 must make specific reforms to help it compete with streaming culture.
The Department for Digital, Culture, Media and Sport (DCMS) said the decision was made following discussions with Channel 4 and the independent production sector and an “ambitious package of measures” would serve as an alternative to the s
Ms Donelan announced that Channel 4 will remain in public ownership following talks with bosses and other industry figures.
She added that an ‘ambitious package of measures’ would serve as an alternative to a sale, which – it has previously been claimed – could have raised more than £1billion.
The package includes reforms through the Media Bill which will allow Channel 4 the flexibility to make and own some of its content and a new statutory duty on the board to “protect” the long-term financial sustainability of the business.
The broadcaster has also committed to increasing roles outside London and providing more opportunities for people from across the UK to gain experience in the sector as part of the package, the DCMS announced.
It is hoped the reforms will help Channel 4 grow and better compete in the age of streaming giants.
Reforms introduced via the Government’s Media Bill will eventually allow Channel 4 to make and own some of its content, the Department for Digital, Culture, Media and Sport said.
There will also be a new statutory duty on Channel 4’s board members to protect the broadcaster’s long-term financial sustainability.
Plans to privatise Channel 4 were pursued under Boris Johnson’s Government, which repeatedly with the broadcaster over its news output.
And Channel 4 has promised to increase the number of roles outside London
In a statement, Ms Donelan said: “Channel 4 is a British success story and a linchpin of our booming creative industries. After reviewing the business case and engaging with the relevant sectors, I have decided that Channel 4 should not be sold.
“This announcement will bring huge opportunities across the UK with Channel 4’s commitment to double their skills investment to £10 million and double the number of jobs outside of London.
“The package will also safeguard the future of our world leading independent production sector. We will work closely with them to add new protections such as increasing the amount of content C4C must commission from independent producers.”
The decision to take the broadcaster out of public ownership was announced under the tenure of her predecessor, Nadine Dorries, who led the move during Boris Johnson’s premiership.
It comes days after Ms Donelan reportedly wrote to the Prime Minister recommending the Government drops its plans to privatise Channel 4.
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.
‘Channel 4 is innovative, editorially brilliant and loved by audiences that others don’t reach, most of all the young and underrepresented.
‘In the analogue world, we did this spectacularly. Now, in the digital era, we are doing it again.
‘Working with the world-leading TV and film producers of the UK, we continue to give birth to ideas that thrill audiences and change perspectives globally.’
Channel 4 was created in 1982 by the Conservative government of Baroness Thatcher and is entirely funded by advertising, out of public ownership