MPs to discuss plans to privatise Channel 4 this week

The second reading of the Channel 4 (Privatisation) Bill is due to go ahead in the House of Commons on Friday, January 14.

The Government said it proposed privatisation because it is concerned about the broadcaster’s long-term future, due to a decline in TV advertising and competition from streaming giants such as Netflix.

However, Labour politicians have questioned the Government’s motives and raised concerns about the future of the company’s national headquarters in Leeds.

Independent production companies are also concerned Channel 4 could be bought by a major US firm which has little interest in working with them or adhering to the broadcaster’s remit to deliver “innovative, alternative content that challenges the status quo”.

The broadcaster uses money it generates through advertising to commission shows from more than 300 independent production companies across the UK every year and supports nearly 3,000 jobs outside London.

Shadow media secretary Lucy Powell said privatisation could “diminish” the broadcasters “crucial role in levelling up”, when she spoke in Parliament on Thursday.

Culture secretary Nadine Dorries said: “A consultation has taken place, and we have had over 60,000 responses. We have been working hard in the department on the unprecedented number of responses; we have been working our way through.

“We will reach a response very shortly on what we will do with Channel 4, but I give her my assurance that it will be what is best for the sustainability of Channel 4 in the future.”

Channel 4 recorded a record surplus of £74m in 2020, with a 26 per cent growth in views on its All 4 streaming platform and a 11 per cent rise in advertising revenues.