Channel 4: No reassurance HQ will stay in Leeds as Rishi Sunak pledges to press ahead with sale

Ministers have insisted that the proposed sell-off will give the publicly-owned broadcaster the tools to “innovate and grow.”

Under plans from the Department for Culture, Media and Sport unveiled earlier this year, the Government have argued that it will struggle to survive in a media landscape increasingly dominated by big streaming giants such as Netflix and has an overreliance on declining TV advertising to support its business.

The channel opened its new Leeds headquarters just last year, with plans originally set to bring thousands of jobs to the city.

In a House of Lords debate on Thursday into the results of Channel 4’s annual report, which showed revenues topped £1bn for the first time in its history, former Leeds North East MP Lord Kirkhope asked if the channel will retain its Leeds base.

Lord Kirkhope said: “The Government very rightly supported the headquarters of Channel 4 moving to Leeds.

“Those of us from Yorkshire are particularly proud that we now have that Channel 4 presence in Leeds. I think some Ministers indicated that it was part of the so-called levelling-up process.

“Can my noble friend confirm that whatever decision the Government might take, they will do their very best to ensure that the headquarters of Channel 4 remains in Yorkshire?”

Responding on behalf of the Government, DCMS Minister Lord Parkinson said: “We are very proud to see the benefits that Yorkshire and other parts of the country have accrued from Channel 4 moving its headquarters

“Under private ownership, we will maintain Channel 4’s existing obligations for regional production across the whole of the UK.

“That is one of the things that is so distinctive about the channel, and which would make it an attractive asset to a buyer.”

Channel 4’s strong results have not changed the Government’s mind on privatisation, Downing Street said, following their announcement earlier this week.

It comes as Rishi Sunak said he will proceed with the sale of Channel 4 if he succeeds Boris Johnson as prime minister, saying privatisation would help the broadcaster compete with streaming giants.

The former chancellor and Richmond MP is locked in a leadership race with Liz Truss to become the next Conservative Party leader and PM.

Plans to take Channel 4 out of public ownership, announced earlier this year, have been criticised by the creative industry and politicians.

The Government said the broadcaster would struggle to survive in a media landscape increasingly dominated by the likes of Netflix and has been overly reliant on declining TV advertising to support its business.

A campaign spokeswoman for Mr Sunak said: “Rishi will take forward Channel 4’s privatisation.

“Channel 4 is a crucial part of British broadcasting and supports our brilliant creative industries but a lot has changed since the 1980s when it was set up to provide viewers with more choice.

“Privatisation will help Channel 4 to thrive in an age where they are also competing with Netflix, Amazon, Apple and many more.

“Standing still is not an option.”

Philippa Childs, head of the broadcasting union Bectu, described the announcement as “incredibly disappointing” and said it suggested Mr Sunak “does not understand why the Channel 4 model is so successful and why there is such unified and vehement industry opposition to the sale”.

She said: “Channel 4 is a hugely successful public-service broadcaster, consistently pushing the boundaries of entertainment and thought-provoking content for British audiences.

“This success is built on the back of the current model, which supports a thriving independent production sector and allows commissioners a degree of risk and creativity, of which the viewing public reap the benefits.

“Make no mistake – privatisation which will have major consequences for the UK broadcasting landscape, for the jobs of UK freelancers and for the UK’s creative economy.”

Liz Truss’ campaign was approached for comment.