Culture secretary Michelle Donelan has recommended to the Prime Minister that the government drops its plans to privatise Channel 4, according to reports.
Initially, former culture secretary Nadine Dorries oversaw the decision to take the broadcaster out of public ownership. Ms Donelan wrote a letter to Rishi Sunak which has been shared by Global's Lewis Goodall.
In the letter, Ms Donelan said she has "concluded that pursuing a sale at this point is not the right decision and there are better ways to secure C4C’s (Channel 4 Corporation) sustainability and that of the independent production sector”.
Read more: Greater Manchester reacts as Rishi Sunak to make ALL pupils study maths until they are 18
She added that the broadcaster's role in supporting the independent production sector "would be very disrupted by a sale at a time when growth and economic stability are our priorities”. Channel 4 was created in 1982 by the Conservative Thatcher government and was wholly funded by advertising, out of public ownership.
It differs from other broadcasters in that everything it airs is commissioned from external production companies. Ms Donelan highlighted the "view of my predecessor" in the letter, stating that selling C4C was the "right solution" to issues around its long-term sustainability.
However, she stated that she had come to the opposite conclusion after "reviewing the business case". She said she had planned to announce a new package of measures to "help tackle" the challenges C4C will face in the "evolving media sector".
These may include relaxing restrictions on the broadcaster to create some of its own content and diversify revenue "should it wish to do so". It also mentioned a new statutory duty on the board to have "clear focus" on the long-term sustainability of the business.
When the Government announced plans last year to take the channel out of public ownership, it said it was so the broadcaster can better survive in a media landscape dominated by the likes of Netflix and Amazon.
Labour’s shadow culture secretary Lucy Powell said: “The Conservatives’ vendetta against Channel 4 was always wrong for Britain, growth in our creative economy and a complete waste of everyone’s time. Our broadcasting and creative industries lead the world, yet this government has hamstrung them with this total distraction.”
She added: “Labour opposed this sell off, and took a strong stand. Government must now bring forward the Media Bill to protect and promote Britain’s broadcasters in the streaming age. Whilst the Conservatives crash our economy, we have a plan to nurture and grow our creative industries.”
Simon Hoare, Conservative MP for North Dorset, tweeted: “A welcome and excellent decision/recommendation by @michelledonelan: if it ain’t broke; don’t fix it!”
Stephen Hammond, Conservative MP for Wimbledon, added: “I welcome the reports that C4 will not be privatised. I have always thought that its commercial future can be more sustainably secured by a new mandate within the current model.
“This decision will ensure the independent UK production industry will continue to thrive and prosper.”
A spokesman for the Department of Digital, Culture, Media and Sport (DCMS) said: “We do not comment on speculation. The DCMS Secretary of State has been clear that we are looking again at the business case for the sale of Channel 4. We will announce more on our plans in due course.”
Former culture secretary Ms Dorries criticised the move, tweeting: “Three years of a progressive Tory government being washed down the drain. Levelling up, dumped. Social care reform, dumped. Keeping young and vulnerable people safe online, watered down.
“A bonfire of EU leg, not happening. Sale of C4 giving back £2b reversed. Replaced with what?
“A policy at some time in the future to teach maths for longer with teachers we don’t yet even have to do so. Where is the mandate – who voted for this? Will now be almost impossible to face the electorate at a GE and expect voters to believe or trust our manifesto commitments.”
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