Plans to privatise Channel 4 have been dropped, it was revealed today, sparking a furious political row,.
Culture Secretary Michelle Donelan has written to Prime Minister Rishi Sunak, recommending the Government drops a plan to sell off the broadcaster devised under his predecessor Boris Johnson.
She said that the sale was ‘not the right decision’ and would adversely affect independent production firms at a time when the economy is under pressure.
But the revelation by Global’s The News Agents podcast was slammed by Ms Donelan’s predecessor Nadine Dorries, who led the drive for privatisation.
In a series of stringing tweets she castigated the change and Mr Sunak’s wider political direction, accusing him of spurning changes made under Mr Johnson, her close friend and ally.
‘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,’ she said.
‘A bonfire of EU leg, not happening. Sale of C4 giving back £2b reversed. Replaced with what?
Culture Secretary Michelle Donelan has written to Prime Minister Rishi Sunak, recommending the Government drops a plan to sell off the broadcaster. But the reverse was slammed by Ms Donelan’s predecessor Nadine Dorries, who led the drive for privatisation.
Channel 4 was created in 1982 by the Conservative government of Margaret Thatcher and is entirely funded by advertising, out of public ownership.
In a series of stringing tweets Ms Dorries castigated the change and Mr Sunak’s wider political direction, accusing him of spurning changes made under Mr Johnson, her close friend and ally.
‘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.’
However, the privatisation was not in the last Conservative election manifesto in 2019.
Channel 4 was created in 1982 by the Conservative government of Margaret Thatcher and is entirely funded by advertising, out of public ownership.
Unlike other broadcasters, everything it airs is commissioned from external production companies.
Ms Dorries announced plans to privatise it last April arguing public ownership was ‘holding it back’ from competing with streaming giants such as Netflix, Amazon Prime Video and Disney+.
But Labour and C4 stars accused the Johnson government of deciding to sell the broadcaster for £1billion because of a ‘petty vendetta’ against its news bulletins and alleged personal attacks on the Prime Minister.
In her letter, Ms Donelan noted the ‘view of my predecessor’ was that selling C4C (Channel 4 Corporation) was the ‘right solution’ to issues around its long-term sustainability, but that she had come to the opposite conclusion after ‘reviewing the business case’.
She said she plans to announce a new package of measures to ‘help tackle’ the challenges C4C will face in the ‘evolving media sector’.
These include relaxing restrictions on the broadcaster to allow it to create some of its own content and diversify its revenue ‘should it wish to do so’.
Also included is a new statutory duty on the board to have a ‘clear focus’ on the long-term sustainability of the business.
A section notes that it is ‘important’ to provide the corporation with ‘certainty’ about the Government’s intention to scrap privatisation ‘as soon as possible’.
Ms Donelan, who was appointed by Liz Truss and remained in the role after Mr Sunak took over as PM, had previously cast doubt on plans to privatise the broadcaster.
She said she is re-examining the ‘business case’ to make sure ‘we still agree with that decision’.
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.
Then Culture Secretary Nadine Dorries tweeted last April: ‘Channel 4 rightly holds a cherished place in British life and I want that to remain the case’
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, said: ‘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.’