Channel 4 privatisation goes against levelling up promises, Tory MPs warn Boris Johnson

A letter from Kevin Hollinrake, Jason McCartney and Alec Shelbrooke to the Prime Minister has warned a new ownership model for the channel, which has its regional headquarters in Leeds, “could threaten jobs in our region and demote Yorkshire’s status as a cultural hub”.

It is part of a growing backlash to the plan, with other senior Conservatives such as Jeremy Hunt and Ruth Davidson speaking out against it. Parliamentary approval is required for the sale to go ahead.

The letter from the three MPs states: “If privatised, there is no guarantee that Channel 4’s headquarters will remain in Leeds and any change in the status quo could severely damage the progress that has been made in the region.”

It notes that the West Yorkshire Combined Authority has estimated having Channel 4 based in Leeds was set to contribute to the creation of more than 1,200 jobs over the next decade and be worth over £1bn to the region.

The Government has argued privatising Channel 4, which is currently state-owned but funded largely through advertising revenue, would help secure its future. Culture Secretary Nadine Dorries suggested it could allow it to better compete against global streaming giants like Amazon Prime and Netflix. She said any money raised from the sale - which has been mooted as having the potential to raise over £1bn - would be put back into “levelling up the creative sector”.

But the letter from the three Yorkshire MPs argues the decision would have the opposite effect in Yorkshire.

It states: “We believe that any change in the ownership model, as seems to be the direction Government is heading in, would be contrary to the goals of our levelling up agenda.

“Creating skilled jobs and opportunities and revitalising communities are central to levelling up, and each could be compromised in Yorkshire by privatisation of Channel 4.

“The Government has recognised the unique contribution that Channel 4 makes to Leeds and Yorkshire and it has been suggested that certain conditions may be placed on the sale of Channel 4, including retaining the Leeds headquarters. While we welcome this, we are concerned that it will be difficult to ensure that a future private owner maintains the Leeds HQ in perpetuity, or continues to base its operations there rather than using it as a ‘branch office’.”

Channel 4’s move to Leeds followed a promise in the 2017 Conservative manifesto that it would be relocated out of London and a nationwide competition to find a suitable new base.

The letter from the three MPs says the station’s presence in the city has contributed to an “emerging creative cluster” in Leeds with new production companies opening and Sky Studios setting up a new base in the city.

It urges Mr Johnson to “carefully consider Yorkshire’s interests” before going ahead with privatisation.

“In our view, there is no urgent need for Channel 4 to change its ownership structure.

“It is self-sufficient and successful, making no drain on the public purse and has – in the short time it has had a presence in Yorkshire – made a significant difference to the lives and opportunities for our constituents.

“We hope that you and the Government will carefully consider Yorkshire’s interests before making a decision that risks reversing a positive change made only recently by a Conservative Government.”

Global interest expected in sale, says Minister

The Government is expecting global interest in purchasing Channel 4, a minister has said.

In the House of Lords, Labour peer Lord Dubs asked: “If the Government insists on pursing this policy, what safeguards will there be against a foreign company buying Channel 4 and there will be yet another of our major media owned by people outside this country?”

Culture minister Lord Parkinson of Whitley Bay replied: “Like the sale of any Government asset, the sale of Channel 4 would need to meet a careful assessment process to ensure value for money for the taxpayer.”

He added: “We expect a lot of interest from around the world in Channel 4.”

Lord Parkinson told a debate on the plans that the Government was attempting to make Channel 4 “fit for the future”.

He said: “The risks of doing nothing are to leave Channel 4 reliant on linear advertising, currently 74 per cent of its income comes from linear advertising which is a part of the broadcasting landscape which is changing rapidly, trying to compete with the likes of Netflix which spent £9.2 billion on original content in 2019 compared to £2.1 billion from all of the UJK’s public service broadcasters. We want to make sure that Channel 4 is fit for the future so it can continue to thrive and flourish.”

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