UK govt reverses plan to sell Channel 4
By Frank Prenesti
Date: Thursday 05 Jan 2023
(Sharecast News) - The UK government has performed yet another u-turn and formally abandoned controversial and unpopular plans to privatise the broadcaster Channel 4.
Culture secretary Michelle Donelan said the channel was a "linchpin of our booming creative industries" and should not be sold off, reversing the plans of her hard-right predecessor Nadine Dorries under then prime minister Boris Johnson.
The proposed sale to a private buyer was largely unpopular both within the industry and among many Conservative Party MPs, who felt Dorries and Johnson were pursuing a political vendetta against the channel over perceived bias.
Donelan said the broadcaster will be able to borrow more money and make programmes in-house, which it was not allowed to do under its current structure. In return, Channel 4 promised to move about two-thirds of its staff outside London, invest an extra £5m in skills training, and boost spending in regional bases such as Leeds, Bristol and Glasgow.
Channel 4 is owned by the state but raises funds through television advertising. It is also required to reinvest profits into making distinctive programmes, but must commission from external production companies.
"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," the company said in a statement.
Reporting by Frank Prenesti for Sharecast.com
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