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The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Michael Ellis)
It is a great honour and pleasure to serve under your chairmanship, Sir Graham. You may be forgiven for thinking that you have been presiding over a constituency candidate selection process, with everybody speaking so eloquently and passionately about their own area, but at least it was not a beauty contest, because that would have been very difficult for you indeed.
The first thing I want to do, of course, is to thank the hon. Member for Glasgow South (Stewart Malcolm McDonald) for introducing this debate on Channel 4’s relocation proposals. He spoke eloquently, as he usually does, and passionately about his constituency and his home town, where he was born and brought up, as did all the other Members who spoke about their own local areas this afternoon.
That includes the hon. Member for Birmingham, Northfield (Richard Burden), who powerfully extolled the virtues of Birmingham and the west midlands, including the impressive transport links, and the hon. Member for Liverpool, Riverside (Mrs Ellman), who is always very persuasive. She asked questions that I will come to in more detail in a moment. However, this is of course a matter for Channel 4; it is Channel 4’s process. It is not a matter for Ministers. It is an ongoing process, it is well-publicised and we will work to ensure that Channel 4 delivers on it.
The Government were very happy to reach an agreement with Channel 4 earlier this year for it to increase its regional impact. As Members from across the House have said, that is very important. We also want to protect and enhance this important public asset, to make sure that it has a bright and sustainable future in a fast-changing broadcasting landscape. We are conscious of that and it is what we want to do—to support Channel 4 in that endeavour.
The Government have long been clear that Channel 4 should have a major presence outside London and should increase out-of-London commissioning. There is an awful lot of talent out there, outside London as well as in it, and as a publicly owned public service broadcaster Channel 4 should do more for the entire nation, and should represent and reflect the voices of those who live outside the capital city. The Government are committed to that aim and to spreading opportunity throughout the United Kingdom, and we want Channel 4 to be a part of achieving it by stimulating creative and economic activity right across the country.
Last year, we ran a public consultation on the future of Channel 4. An overwhelming majority of respondents agreed that Channel 4’s regional impact would be much enhanced if more of its activities took place outside London and more of its staff were based outside London. I think we can all agree that it is not right that at the moment only 3% of Channel 4’s staff are based outside London. Public service broadcasting should mean serving the whole of the United Kingdom, not just those in the capital or indeed those in the bubble of Westminster.
Channel 4 spends around twice as much on programming made in London as it does on programming made in the rest of the United Kingdom combined. Its physical concentration in London is reflective of a wider trend in the broadcasting and production sector, where we have not hitherto seen an even distribution of growth. Although only 20% of the population of this country live in London and the south-east of England, over two thirds of UK producers are based there. It goes without saying that that limits the spread of jobs, prosperity and opportunity outside the capital in all our wonderful geographical locations, and also limits the representation of local views and local interests on television. People seeking to work in the media should not feel that they have to move to London to do so.
Channel 4’s series of proposals, announced in March, will help to reverse that trend. Channel 4 agreed to establish a new national headquarters in the nations and regions, with 300 staff outside London, including key creative decision makers. That number will also rise over time. Moreover, Channel 4 will establish two other smaller creative hubs across the UK. As a consequence, its London footprint will reduce and its headquarters in Horseferry Road will become its London HQ.
Channel 4 will also increase its out-of-London commissioning—this is very important—to more than 50%, stimulating the creative economy across the country. Channel 4 estimates that this will lead to £285 million more in spending out of London than is required by Ofcom. Channel 4 will strengthen its regional impact on screen by becoming the first channel to co-anchor its evening news bulletin from a new regional studio, which is also symbolic and important. It will help to provide a gateway for journalistic talent in the nations and regions to reach “Channel 4 News”. Channel 4’s proposals will mean visibly reflecting the regional diversity of our country, both on and off screen, and according to economic analysis that my Department has commissioned these measures could support an overall redistributive regional impact of close to 2,700 regional jobs.
Channel 4 launched its pitch process, as it is called, in April, inviting bids from cities across the United Kingdom to find the locations for its national HQ and creative hubs. This process is currently ongoing and will allow Channel 4 to carefully consider a range of different cities across the nations and regions. Following the completion of that bidding process, Channel 4 will look to announce its decisions by the autumn of this year and will be moving staff by the end of 2019.
I am sure that Channel 4 is paying close attention to the debate—during it, people have been doing some showreels to get on “Channel 4 News” tonight—and to all the pitches that it receives from across the spectrum, including, of course, from outside this Chamber. I am confident that it will receive impressive bids from across all of the United Kingdom.
This historic deal marks the start of a bright future for Channel 4. Since its establishment over 35 years ago, and I am old enough—just—to remember its opening day, Channel 4 has had an enduring impact on UK culture and UK society. I am sure that we will see it go from strength to strength under the imaginative new leadership of Alex Mahon. Channel 4’s remit includes requirements to be distinctive, to innovate, to promote alternative views and new perspectives, and to appeal to a culturally diverse society. As a result, it has often led the way in areas of diversity and in representing different communities, with groundbreaking shows, including some that have been mentioned today, such as “Queer as Folk”, “The Last Leg” and many others.
Channel 4’s regional proposals show that it is now leading the way in regional representation and that Channel Four Television Corporation is indeed a public service broadcaster that truly provides for the entire country that owns it, which is crucial. This deal will have far-reaching implications for the entire broadcasting sector—it is groundbreaking in that sense—and I hope that others will look to follow Channel 4’s bold lead.