The Culture Secretary has written to Rishi Sunak to recommend that the Government drop plans to privatize Channel 4, according to reports.
Plans to move the channel to private ownership were first raised by former Culture Secretary Nadine Dorries but have now been criticised by Michelle Donelan.
In a letter shared by journalist Lewis Goodall, she said that 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”.
She added that the role played by Channel 4 is supporting the country's independent media production “would be very disrupted by a sale at a time when growth and economic stability are our priorities”.
The channel was created in 1982 by then-Prime Minister Margret Thatcher and is entirely funded by advertisers.
However, unlike other broadcasters, Channel 4 only commissions external production firms.
In the letter, that is dated January 3, Donelan said that the view of her predecessor that selling off the asset was the "right solution" to its long-term sustainability was the complete opposite of hers after "reviewing the business case”.
She said that she will announce a new package of measures to help Channel 4 navigate an “evolving media sector”.
Such plans would include relaxing restrictions by allowing the broadcaster to make some of its own content.
There would also be a new statutory duty on the board to have a "clear focus" on long-term sustainability.
She notes that it is vital that the channel be provided with "certainty" about the Government's view on privatisation.
Donelan had previously criticised the move to sell Channel 4 after being appointed by former Prime Minister Liz Truss.
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?
— Nadine Dorries (@NadineDorries) January 4, 2023
However, Nadine Dorries took to Twitter to attack the move, saying: "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.”
Labour's Shadow Culture Secretary Lucy Powell commented on the change, saying: “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.”
“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.”
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