Commons Sense

House of Commons · Ministerial Statement

Channel 4

09 January 2023 · 30 other contributors

Opened by Michelle Donelan Con Bath

Summarised by AI from the official record, so it can contain mistakes.

At a glance

Michelle Donelan raised concerns about channel 4 in the House of Commons. A government minister responded. Other MPs also contributed.

Key points

  • Channel 4 faces challenges due to technological advancements and new streaming platforms.
  • Michelle Donelan deemed the privatisation of Channel 4 inappropriate after reviewing the business case.
  • An ambitious package to boost Channel 4's sustainability was announced, including doubling job creation outside London and investment in training programmes for young people.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Government Statement

Channel 4, a significant success story in British broadcasting, faces challenges due to technological advancements and the emergence of new streaming platforms. However, selling Channel 4 was deemed inappropriate by Michelle Donelan after reviewing the business case for its privatisation. Instead, she announced an ambitious package to boost the broadcaster's sustainability, including doubling job creation outside London and investment in training programmes for young people through the 4Skills initiative. The government will introduce new commercial flexibilities, such as potentially relaxing the publisher-broadcaster model, increasing independent production quotas, and providing a £75 million credit facility. Additionally, statutory duties and updated governance structures are being developed to support Channel 4's long-term sustainability.

Other contributors (30)
  • Lucy Powell Lab Co-op Manchester Central

    Question

    Powell congratulated Michelle Donelan, thanked Mr Speaker for granting an urgent question, and welcomed the decision against privatising Channel 4. She questioned the financial impact of pursuing this policy, called for guarantees that privatisation is off the agenda, and urged for prompt introduction of reforms to modernise broadcasting regulations.

    Minister reply

    Donelan defended the investment in examining Channel 4's sustainability, highlighting new commitments like doubling job creation outside London and training programme investments. She emphasised safeguarding small, innovative independents while working towards securing Channel 4’s future.

  • Question

    Bottomley congratulated Channel 4 on its success under the current arrangement and suggested maintaining the publisher-producer split to preserve independent producers. He expressed hope for no further proposals regarding Channel 4's ownership.

    Minister reply

    Donelan agreed with preserving the role of independent producers, confirming plans to increase content from the independent sector and providing tools for long-term viability without forcing specific actions on Channel 4.

  • John Nicolson SNP Nairn, Cromarty and Dingwall

    Question

    Congratulates the Secretary of State but expresses disappointment that this is not a new Government but a continuation of the current one. Asks how much public money went into the aborted privatisation attempt.

    Minister reply

    States that £2 million was spent on the privatisation work, including general sustainability initiatives.

  • Damian Green Con Ashford

    Question

    Praises the Secretary of State for her decision and asks about protecting and enhancing the independent sector.

    Minister reply

    Assures that close collaboration with the independent sector will occur to ensure its protection and enhancement.

  • Kevin Brennan Lab Cardiff West

    Question

    Asks when the media Bill will be introduced, which is vital for public service broadcasters' sustainability in the digital age.

    Minister reply

    Commits to bringing forward the media Bill shortly.

  • Simon Jupp Con St Ives

    Question

    Inquires about safeguarding the independent production sector and ensuring Channel 4 remains sustainable.

    Minister reply

    Confirms that the move will give Channel 4 tools to be sustainable in a changing media landscape.

  • Julie Elliott Lab Sunderland Central

    Question

    Asks about steps being taken to ensure digital rights for listed sporting events are implemented quickly.

    Minister reply

    States that the House will be updated on this matter shortly.

  • Karen Bradley Con Staffordshire Moorlands

    Question

    Asks about benefits for small creative companies in north Staffordshire from the announcement.

    Minister reply

    Commits to working closely with independent producers and providing specific safeguards, especially for innovative ones.

  • Valerie Vaz Lab Walsall North

    Question

    Asks why Members only heard about the U-turn on “Channel 4 News” and why a written ministerial statement is being laid.

    Minister reply

    Confirms that a written ministerial statement will be laid.

  • Jeremy Wright Con Kenilworth and Southam

    Question

    Asks if the measures proposed today enhance Channel 4’s distinctive niche in broadcasting compared to privatisation.

    Minister reply

    Explains that the goal is to ensure long-term sustainability, thriving, and flourishing of Channel 4.

  • Jamie Stone Lib Dem Caithness, Sutherland and Easter Ross

    Question

    Asks about special efforts for production companies in provinces outside England.

    Minister reply

    Commits to protecting job creation across the UK.

  • Caroline Dinenage Con Gosport

    Question

    Inquires about Channel 4’s ability to nurture a skilled workforce of the future and respond to media changes.

    Minister reply

    Announces that Channel 4 will double its investment in skills for young people around the UK, from £5 million to £10 million.

  • Barry Sheerman Lab Huddersfield

    Question

    Expresses delight with the Government’s change of course and asks about benefits for Yorkshire and other parts of the north.

    Minister reply

    Announces that jobs outside London will be doubled, including in Glasgow and Bristol.

  • Damian Collins Con Witham

    Question

    Asks whether Channel 4 can have additional investment to go into programme making as requested.

    Minister reply

    Commits to enabling easier access for Channel 4 to draw down on its existing allowance, but new borrowing will be case-by-case.

  • Alex Sobel Lab Co-op Leeds North East and Headingley

    Question

    Asks about additional benefits from the announcements today for Leeds and Yorkshire.

    Minister reply

    Confirms jobs outside London will be doubled, including in Leeds.

  • Michael Fabricant Con Lichfield

    Question

    Inquires about risks of Channel 4 sinking under debt if it uses borrowing for survival.

    Minister reply

    Explains that the amount Channel 4 can borrow will not be increased, but tools will enable commercial freedoms and relaxation of publisher-broadcaster remit.

  • Chris Bryant Lab Rhondda and Ogmore

    Question

    Would it not be nice if a Government Minister apologised when their predecessor's policy was flawed, rather than leaking information to the Prime Minister?

    Minister reply

    The topic has been under review for some time. The leak was not a Government leak, and an investigation is ongoing.

  • Question

    How much revenue does Michelle Donelan expect Channel 4 to generate from non-linear TV advertising in future?

    Minister reply

    Channel 4 will decide based on the tools provided by the Government to ensure sustainability in a changing media landscape.

  • Question

    Does Michelle Donelan agree that giving Channel 4 more freedom is essential for its sustainability?

    Minister reply

    Yes, it is essential and ignoring the problem would be in denial of the media's changing landscape.

  • Toby Perkins Lab Chesterfield

    Question

    How will the relaxation of publisher-broadcaster restrictions work in practice?

    Minister reply

    Details will be provided through a media Bill, and close collaboration with Channel 4 and the independent production sector is planned.

  • Question

    Is Michelle Donelan's announcement good news for Yorkshire?

    Minister reply

    Yes, it is good news for Yorkshire and beneficial to taxpayers who own Channel 4.

  • Andrew Gwynne Ind Gorton and Denton

    Question

    Can Michelle Donelan provide more detail on how the Department will consult to determine how publisher-broadcaster restrictions will be relaxed?

    Minister reply

    Close collaboration with Channel 4, independent producers, and public service broadcasters is planned. Details will follow in a media Bill.

  • Question

    How might the portion of content from independent producers increase to 25%?

    Minister reply

    Measures are being considered to support small and innovative independent producers, building on current commitments such as Channel 4's existing spend supporting supply chain jobs.

  • Question

    What assurances can be given that DCMS will work with the Welsh Government to develop the relationship between Channel 4 and the Welsh independent production sector?

    Minister reply

    Upcoming meetings are planned, including one with the Welsh counterpart, to discuss this and other important agendas.

  • Question

    Is Channel 4 a levelling-up company that supports jobs and production companies across the four nations?

    Minister reply

    Yes, it is essential for Channel 4's sustainability to support its levelling-up agenda, including doubling investment in skills and jobs outside London.

  • Question

    How many jobs will Channel 4 create in Glasgow as part of their expansion?

    Minister reply

    Channel 4 has committed to creating new jobs in several locations, including Glasgow. The exact numbers will be determined by Channel 4.

  • Question

    Can Michelle Donelan meet with the MP to discuss expanding opportunities for Doncaster's creative businesses?

    Minister reply

    Channel 4's sustainability and support of the independent production sector offer opportunities that may be beneficial for Doncaster.

  • Jim Shannon DUP Strangford

    Question

    What discussions has Michelle Donelan had with Channel 4 to ensure Northern Ireland remains a crucial part of TV production in the UK?

    Minister reply

    Channel 4's sentiment is about the importance of the UK, including Northern Ireland. Meetings can be arranged for detailed discussion.

  • Question

    How will changes to Channel 4's annual report affect its cultural bias?

    Minister reply

    While impartiality was not a primary focus, a new section in the annual report will detail reviews of editorial content and impartiality from the previous year.

Shadow Comment

Lucy Powell

Lucy Powell welcomed the decision against privatising Channel 4 but criticised the Government for wasting time and money on a flawed policy, which cost at least £2 million. She questioned how much this initiative has impacted taxpayers and public sector broadcasters in terms of lost opportunities and called for guarantees that privatisation is off the agenda permanently. Powell also expressed concerns about ensuring financial sustainability without harming the independent sector and urged for prompt introduction of reforms to modernise broadcasting regulations.

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