THE Scottish and Welsh governments have spoken out against Ofcom’s decision to allow Channel 4 to disproportionately focus its budget in England.
On Tuesday, the media regulator laid out the new 10-year licence for Channel 4 which would require it to spend at least 12% of its budget outwith England by 2030.
If it were to reflect the UK’s demographics, 16% of the publicly owned broadcaster’s budget for its main channel content would be spent in Scotland, Wales, and Northern Ireland.
Channel 4’s annual report for 2023 said it spent £663 million on content, £520m of which was for original productions. As such, the 4% gap likely represents a figure in the £20-30m bracket.
Previously, Channel 4 was only obliged to spend 9% of its Budget outside of England, and the increase to 12% has been touted by Ofcom and the broadcaster.
However, devolved governments view it as a four-percentage-point underspend, which has drawn criticism from both the SNP and Labour devolved governments in Scotland and Wales.
A Scottish Government spokesperson told The National: “Scottish ministers are deeply disappointed with the decision on the Made Outside England quotas for Channel 4’s next licence.
“We strongly believe this decision does not recognise the need for a publicly-owned public service broadcaster to represent and support all parts of the United Kingdom that it serves on a fair basis.
“As we previously set out to Ofcom, we are clear that Channel 4’s Made Outside England quotas should fairly reflect the populations of the nations, and the size and growth potential of their creative industries.”
And a Welsh Government spokesperson said: “Creative Wales were part of a widespread call for a more equitable increase to give substance to the channel’s claim that celebrating regional diversity is a core pillar of its purpose, so the increase to 12% deferred until 2030 falls far short of our expectations.”
On Wednesday, Channel 4 said it was unveiling “its biggest-ever intervention in the UK creative industries, with a package of measures focused on three core areas – skills, content, and people – to serve and reflect the whole of the UK”.
The channel further said it had appointed a “new director of commissioning, nations and regions, to boost commissioning outside London”. Jo Street, the appointee, will also continue as the broadcaster’s head of lifestyle and its head of hub in Glasgow.
Channel 4 has also said it will aim to hit the 12% out-of-England quota by 2028, rather than the 2030 date Ofcom has set.
On Monday, the broadcaster said it aimed “to reach 600 roles in the nations and regions and double the size of its Manchester office”.
Ian Katz, the chief content officer at Channel 4, said: “We are determined to work with indies and screen agencies in the nations and regions to help producers build capacity and adapt to changing commissioning priorities.
“This will ensure we do not end up with a two-tier sector which sees London-based indies scooping up higher tariff shows and producers in the Nations and Regions left with only lower tariff production.”
Cristina Nicolotti Squires, Ofcom’s group director for broadcasting and media, said of Channel 4’s new licence: “It strikes the right balance between giving Channel 4 the flexibility to support its digital transformation, while safeguarding highly-valued distinctive programming on its traditional channel for the long term.
“The new licence also substantially increases Channel 4’s requirement for production in Northern Ireland, Scotland and Wales. Ofcom will be closely monitoring its performance in this area and holding it to account.”
