Channel 4: Culture Secretary Michelle Donelan confirms U-turn on privatisation

The government has confirmed it will not go ahead with a controversial plan to privatise Channel 4.

Former Culture Secretary Nadine Dorries had said government ownership was "holding Channel 4 back".

But her successor Michelle Donelan has now said the broadcaster "should not be sold", instead proposing other reforms because "change is necessary".

Channel 4 welcomed the news, saying the decision "allows us to be even more of a power in the digital world".

The plan to sell the broadcaster for a possible £1.5bn had faced opposition from Channel 4 executives and much of the TV industry.

Ms Donelan said she had reached her decision "after reviewing the business case and engaging with the relevant sectors".

Her alternative reforms include allowing the broadcaster to make and own the rights to some of its own programmes - which are currently made by independent production companies - and moving more jobs outside London.

"This announcement will bring huge opportunities across the UK with Channel 4's commitment to double their skills investment to £10m and double the number of jobs outside of London," Ms Donelan said.

"The package will also safeguard the future of our world leading independent production sector. We will work closely with them to add new protections such as increasing the amount of content C4C [Channel 4 Corporation] must commission from independent producers."