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Ministers Oust Burns As Channel 4 Chairman

Ministers Oust Burns As Channel 4 Chairman

The chairman of Channel 4 is to step down after ministers overruled a recommendation by the media regulator that he stay on to steer the state-owned broadcaster through next year's crucial BBC Charter Review.

Sky News can exclusively reveal that the Department for Culture, Media and Sport (DCMS) has in recent days rejected a suggestion from Ofcom that Lord Burns should be granted a year-long extension to his tenure.

The news comes just days after a confidential document was photographed outlining preparations for a formal review by the Government of Channel 4's status as a not-for-profit public service broadcaster - with privatisation firmly on ministers' agenda.

Sources said on Monday that Ofcom, which oversees board appointments at Channel 4, would advertise the position shortly, and that Lord Burns was likely to step down at the end of his term in January subject to the availability of a suitable replacement.

A spokesman for the broadcasting regulator told Sky News: "Ofcom is proceeding with the recruitment of the next Channel 4 chairman to succeed Lord Burns when his term ends early next year."

The DCMS's rejection of an extension to Lord Burns' chairmanship is a surprise, not least because of the esteem in which he is generally held in Whitehall.

Some observers speculated that the decision could dent relations between Ofcom and the DCMS during a critical period for media regulation.

One insider said that Lord Burns had been pressing ministers to consider the idea of turning Channel 4 into a charitable trust of some kind, which would shield it from privatisation.

A DCMS spokesman told Sky News: "Lord Burns second term as chairman of Channel 4 expires on 27 January 2016.

"Ofcom is responsible for appointing the C4 chair, and we understand the regulator will shortly announce its plans for recruitment to this important post."

The document photographed last week, which was thought to be for the attention of John Whittingdale, the Culture Secretary, and Sajid Javid, the Business Secretary, referred to work "to examine the options for extracting greater public value from the Channel 4 Corporation, focusing on privatisation options in particular".

One official with knowledge of the document's contents said that it outlined alternatives including privatising Channel with or without the restrictions of its public service broadcasting remit, and pursuing the charitable trust idea.

Reports have suggested that a sale of the channel, whose best-known shows include Made in Chelsea and Hollyoaks, could raise in the region of £1bn and contribute to a privatisation programme outlined by George Osborne that would be the largest in British history.

Ofcom had been keen for Lord Burns to remain as Channel 4's chairman for another 12 months because of the complexity of the BBC Charter Review process.

The review of the BBC's future funding is the subject of heated debate, with questions arising about the future of the BBC Trust amid accusations that it had failed to lobby sufficiently robustly against a deal that will oblige the Corporation to fund TV licences for over-75s.

Charter Review will occupy a significant chunk of the DCMS's attention during the course of 2016, and Ofcom wanted to ensure some degree of continuity as Channel 4 digests its implications.

Lord Burns, a former Treasury mandarin, has impeccable connections in Whitehall.

He is a member of the Office for Budget Responsibility's oversight board, and is assisting with a review of freedom of information laws.

Appointed in January 2010 to serve a three-year term, Lord Burns was given a further three-year extension less than two years later.

Under his stewardship, and that of David Abraham, Channel 4's chief executive, the broadcaster's financial performance has stabilised, with a return to financial surplus last year as revenues rose by £30m to £938m.

During the last parliament, plans to sell Channel 4 were raised by Conservative ministers but were abandoned after Vince Cable, the Liberal Democrat business secretary, blocked the move.

Speaking recently, John Whittingdale, the Culture Secretary, said: "The ownership of Channel 4 is not currently under debate.

"Do I say there are no circumstances in which I would ever consider it? No, I don’t,” he said.

Channel 4 declined to comment on Monday.