S4C funding cut reversed by UK ministers pending review

S4C has been promised an extra £400,000 by the UK government, reversing the first year of proposed grant cuts.

Culture Secretary John Whittingdale also announced a "comprehensive review" of S4C's remit, governance and funding.

"The UK government remains committed to supporting the valuable service S4C provides to Welsh speaking audiences," he said.

S4C gets £6.7m a year from the UK government, with most of its £80m funding coming from the licence fee.

The chancellor's autumn statement had said S4C's grant would be cut from £6.7m to £5m by 2020, prompting concern from its managers and politicians in Wales.

Tory MP David Davies, who chairs the Commons Welsh Affairs committee, wrote to Chancellor George Osborne on Tuesday urging him to consider a review of the channel's "remit and scope" after hearing evidence from S4C bosses on Monday.

Mr Davies said S4C had warned that "further reduction in funding could significantly impact its services".

Supporting producers

Announcing the reversal of the first year's grant cut, Mr Whittingdale said: "S4C was created by a Conservative Government, and this UK Government remains committed to supporting the valuable service S4C provides to Welsh speaking audiences.

"I'm very pleased the UK Government has been able to continue its level of funding for S4C who are a huge supporter of independent producers from across Wales and the only Welsh language television channel in the world."

Crime drama Y Gwyll (Hinterland) is one of S4C's most praised programmes

S4C chairman Huw Jones said he welcomed the announcement.

"The principle of holding a review of the service, before the funding is finally decided, is a decision that we and members of parliament across every party have called for," he said.

"In the meantime, freezing our current level of funding is a clear and important sign of support from the Government and we welcome this very much.

"We look forward in time to receiving more detail about the scale and scope and timing of the review and to contribute fully to it."

Plaid Cymru MP Liz Saville Roberts said: "When the chancellor announced in his autumn statement that S4C's grant would be cut from £6.7m to £5m by 2020, Plaid Cymru warned that this jeopardised the channel's future.

"We stand firmly by that view and urge the UK government to give serious consideration to reversing the full cut - not just the first year."

Liberal Democrat MP Mark Williams said: "S4C deserves and needs financial stability, as does the independent production sector in Wales."

Analysis by Huw Thomas, BBC Wales arts and media correspondent

Today's announcement is a victory for S4C's management, who have been lobbying for months for an independent review of the channel's finances in the face of further cuts to its budget.

It also saves face for the Welsh Conservatives, whose general election manifesto last year promised to "safeguard the funding" of S4C.

That was before the Chancellor's autumn spending review announced S4C's budget would be cut by a further £1.7m by 2020.

While the Department for Culture, Media and Sport reminded journalists today that the proposed cuts may yet be implemented after the review, many of those who have pushed for an inquiry are confident that further cuts won't be part of its conclusions.