Sell-off plan for C4 ‘could bring legal challenges’
‘Levelling up’ alert over TV privatisation
THE GOVERNMENT has been warned its controversial plan to privatise Channel 4 could face legal challenges, as it contradicts Boris Johnson’s commitment to levelling up the UK.
Two separate bills, one which propose the sale of the broadcaster and another which would ensure all Government policies must align with the ‘levelling up agenda’, were announced in the Queen’s Speech yesterday.
Henri Murison, Director of the Northern Powerhouse Partnership, said there is a clear contradiction, as Channel 4 drives investment and supports thousands of jobs outside London, and a number of TV production companies are “considering legal action” as the Government may put that all at risk by selling the broadcaster.
He said: “The Government can ignore public opinion but because of these new ‘levelling of tests’ there is the option for leIt
gal challenge. That may very well mean the Government isn’t able to sell it if they want to.
“There’s a number of legislative and legal hurdles that they face. A lot of the independent TV companies currently rely on Channel 4 and have a strong incentive to take legal action. My guess is some of them will.”
comes as Ministers are facing calls from members of their own party to reconsider the plan for privatisation, which was not in its General Election manifesto.
Last month, Yorkshire-based MPs Kevin Hollinrake, Jason McCartney and Alec Shelbrooke, warned the Prime Minister it “could threaten jobs” and is “contrary to the goals of our levelling up agenda”.
The broadcaster, which was set up by Margaret Thatcher’s government, does not make its own programming and instead commissions from more than 300 production companies around the country to produce shows.
Channel 4 also set up a new national headquarters in Leeds, as well as hubs in Bristol and Glasgow, after Ministers fulfilled a promise outlined in the Conservatives’ 2017 manifesto by urging the broadcaster to relocate outside of the capital.
A report from EY stated Channel 4 generated £274m for the economy and supported almost 3,000 jobs outside London in 2019.