Controversial Privatization of U.K.’s Channel 4 Now Off, According to Leaked Government Letter

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Controversial Privatization of U.K.’s Channel 4 Now Off, According to Leaked Government Letter
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In a major reversal from her predecessor, culture secretary Michelle Donelan says she has concluded that the hugely contentious sale would be disruptive to the U.K.'s independent production sector.

“Last year’s consultation on C4C’s future ownership model identified risks to the corporation’s long-term sustainability. The view of my predecessor, and the government of the time, was that selling C4C was the right solution to meet these challenges. However, after reviewing the business case, I have concluded that pursuing a sale at this point is not the right decision and there are better ways to secure C4C’s sustainability and that of the U.K. independent production sector,” wrote Donelan.

The leaked letter revealed plans for the “sustainability package” that would see Channel 4 given the opportunity to produce its own content for the first time, with Donelan claiming this would take place in consultation with the U.K.’s independent production sector, which would be hit hard by any moves by the network to shift production in-house.

“The government will work closely with the independent production sector to consider what steps are necessary to ensure that Channel 4’s important role in driving investment into the sector especially in the newest, smallest and most innovative producers – is safeguarded,” the letter said.

Donelan also said she’d look to increase Channel 4’s borrowing limit beyond the current limit of £200 million . The decision by Donelan marks a 180 degree shift from her predecessor Nadine Dorries, who had made the privatization of Channel 4 one of her top priorities, going against public and expert opinion in her pursuit of the goal and gaining the support of her then prime minister Boris Johnson.

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