OFCOM has risked drawing anger from the devolved nations after confirming plans to allow Channel 4 to spend a disproportionate amount of its budget in England – despite warnings that doing so was “not acceptable”.
On Tuesday, the media regulator announced a new 10-year public service broadcast licence for Channel 4, which it claimed was “supporting its digital growth and securing public service broadcasting on the channel”.
Under a section about “supporting production in Scotland, Wales and Northern Ireland”, Ofcom reported: “The new licence paves the way for a strong and ongoing presence for Channel 4 in each of the nations, and the commissioning of a diverse range of programmes, harnessing local creative talent and skills.
READ MORE: We work in Scotland's screen sector – here's why Channel 4's UK quota needs to change
“Following an additional consultation, we are today confirming our decision to increase, by a third, the annual requirements on Channel 4 for production spend and programme hours made in the UK outside of England – from 9% to 12%.
“The licence demands that Channel 4 must achieve these increased quotas from 2030.”
If the out-of-England quota was to reflect population share across the UK, it would be 16%, not 12%.
Calls for Ofcom to impose the 16% figure were near universal from the devolved nations while the proposals were open for consultation.
In July, a spokesperson from the Welsh Government’s Creative Wales said of the proposed figure: “An increase to 12%, deferred until 2030, is not an acceptable position as far as Wales is concerned.
“We were part of a widespread call for a 16% increase to give substance to the channel’s claim that celebrating regional diversity is a core pillar of its purpose and so the regulator’s suggestion falls far short of our expectations as a nation.”
Richard Williams, the chief executive of Northern Ireland Screen, told The National in July that Ofcom and Channel 4 were showing a “desperate reluctance to see the nations as anything other than a dead weight”.
“There is nothing to give Northern Ireland Screen or Northern Ireland any comfort here,” he added.
Channel 4 said on Tuesday, in a letter published by Ofcom, that they would aim to hit the controversial 12% out-of-England spending quota two years earlier than 2030.
Cristina Nicolotti Squires, Ofcom’s group director for broadcasting and media, said: “This new licence is the best outcome for audiences and for Channel 4.
“The new licence also substantially increases Channel 4’s requirement for production in Northern Ireland, Scotland and Wales. Ofcom will be closely monitoring its performance in this area and holding it to account.”
Alex Mahon, Channel 4’s chief executive, said: "We welcome Ofcom’s renewal of Channel 4’s 10-year licence and support for our strategy to become the first public service streamer.
READ MORE: Ofcom plans for Channel 4 an 'outrage', says Scottish Culture Secretary
“The new licence provides clarity for the next decade as we deliver our unique public service remit – investing in distinctive British content and trusted news for audiences and supporting the growth of the creative economy across the UK.”
She went on: “We also welcome Ofcom’s decision to increase Channel 4’s nations quotas by one-third – from 9% to 12% of our main channel content spend and hours – in Northern Ireland, Scotland and Wales by 2030.
“We believe this strikes the right balance between the commercial flexibility we need as a business and fulfilling our goal to support sustainable production growth across the nations.
“Channel 4 will strive to reach the 12% level by 2028 – two years ahead of target. We look forward to continuing to work closely with Ofcom to strengthen UK public service media and deliver for British audiences in the years ahead."
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