Channel 4: Production companies urge next PM to rethink privatisation

A letter to Liz Truss and Rishi Sunak asking them to reconsider plans to privatise Channel 4 has been signed by more than 750 UK production companies.

Organised by trade body Pact, the open letter urges the next prime minister to reconsider privatisation, saying it would have a "devastating impact".

The government announced plans to take it out of public ownership this year.

BBC News has asked the Department for Culture, Media and Sport (DCMS) for a comment.

Ms Truss and Mr Sunak have also been asked for their response.

Following his resignation in July, Prime Minister Boris Johnson's replacement - Ms Truss or Mr Sunak - will be appointed by Conservative Party members on Monday.

The letter said: "As independent TV and film production companies, we are deeply concerned about the plans in their current form.

"We know first-hand how Channel 4's unique commissioning model has helped thousands of independent production companies get off the ground, and contributed to building a thriving sector."

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It added: "Current plans could have a devastating impact not only on these production companies, but also on the country's levelling-up efforts."

Channel 4 recently won nearly one-third of the prizes at the coveted annual Edinburgh TV awards, and the letter suggested that bringing Channel 4 into private ownership would "enable a new buyer to consolidate production in-house and commission far less from the independent companies we represent".

Pact estimated that this would "lead to a loss of £4.2bn to our thriving independent film and TV sector"

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Production companies outside of London would be damaged, it suggested, saying "current plans" would "substantially cut the quota for the level of spend required from Channel 4 in the nations and regions" from 55% to 35%.

In May, Culture Secretary Nadine Dorries defended her decision to privatise Channel 4, arguing it would prevent the network from being too reliant on revenues from advertising.

Channel 4 has objected to the government's privatisation plans, saying it was "disappointing" that ministers had made their decision despite "significant public interest concerns".

Ms Dorries insisted the move would allow Channel 4 to raise investment and that it was "a great time to sell".