TV production companies condemn plans to sell off Channel 4

The Government said it is committed to selling off the broadcaster, to secure its long-term future and help it compete against streaming giants like Netflix and Amazon.

But there are concerns potential buyers will have no interest in keeping Channel 4’s new headquarters in Leeds, which opened last year, or continue with the broadcaster’s commitment to creating programming for under-represented audiences.

The broadcaster is publicly-owned but not taxpayer funded. It uses advertising revenue to commission independent programmes, from hundreds of production companies, and has a remit to deliver “innovative, alternative content that challenges the status quo”.

Andrew Sheldon, founder of True North, said Channel 4’s move to Leeds was "a rare but brilliant example of the Government’s levelling up agenda in action” and has already brought millions of pounds of investment to the North.

He also said the benefits were already being felt across the North, both on and off screen, with as a range of opportunities have been created for people looking to work in the industry.

“When Leeds’ bid for their national headquarters was successful, it provided a huge boost to the region, not just culturally but economically as well. That’s now at risk unless Channel 4’s remit is ring fenced for the long term.

‘There’s absolutely no incentive for a commercial buyer from abroad to promote voices from Barnsley, or Halifax, or York. It’s all ‘just outside London’ to them.

“Unless legally binding guarantees are put in place, the terrific progress that’s been made in Yorkshire and beyond will be lost.’’

The move to Leeds came after Ministers urged Channel 4 to relocate outside of the capital, fulfilling a promise outlined in the Conservatives’ 2017 general election manifesto, and cities around the country spent millions on bids to attract the broadcaster.

Matt Richards is the managing director of Leeds-based company Air TV, which has not been commissioned by Channel 4 yet. He said the television industry has been “buoyed” by the broadcaster’s arrival in West Yorkshire and the Government’s plans for privatisation are “really disappointing”.

“There’s been a real vibrancy over the last 18 months with Channel 4’s move to Leeds,” he said.

“Production companies in Yorkshire have had a revitalised energy and passion for making programmes in Yorkshire.

“But there’s a lot of uncertainty now. All of that progress that’s been made could now be in jeopardy.”

Louis Bamber, managing director of York-based production company Button Down, has also criticised the Government’s plans

He said: “I’m saddened but unsurprised that the government continues to open doors to foreign ownership of UK assets and risk its own policy of creating opportunities in the North.”

“I would be concerned about the motivations of any private buyer doing what is good for the levelling-up of the UK’s creative sector.”

Culture Secretary Nadine Dorries said last night she wanted the broadcaster to remain a “cherished place in British life”, but that Government ownership was “holding Channel 4 back from competing against streaming giants”.

She said: “I will seek to reinvest the proceeds of the sale into levelling up the creative sector, putting money into independent production and creative skills in priority parts of the country.”

The Government has also argued that a sale could allow the channel, which has limited ability to borrow money or raise private sector capital.

Plans for the sale will be set out in a White Paper later in April and will be included in a new Media Bill for spring 2023, according to reports.

In a statement, Channel 4 said the Government has decided to press ahead with plans to sell the broadcaster “without formally recognising the significant public interest concerns which have been raised”.

It added: “Channel 4 has engaged in good faith with the Government throughout the consultation process, demonstrating how it can continue to commission much-loved programmes from the independent sector across the UK that represent and celebrate every aspect of British life as well as increase its contribution to society, while maintaining ownership by the public.

“Recently, Channel 4 presented the Department for Culture, Media and Sport with a real alternative to privatisation that would safeguard its future financial stability, allowing it to do significantly more for the British public, the creative industries and the economy, particularly outside London.”