Rishi Sunak is poised to ditch plans to privatise Channel 4 after 40 years of public ownership in another major U-turn.
The Prime Minister vowed to push ahead with moves to sell off the public service broadcaster during the Tory leadership contest in the summer.
But industry insiders are expecting the plan to be dropped from the upcoming Media Bill as Mr Sunak overhauls his policy agenda, according to the FT.
Culture Secretary Michelle Donelan said in September that she would review the privatisation proposal put forward by Boris Johnson's administration.
The privatisation plan, which would have marked the biggest sale of a state-owned asset since Royal Mail in 2013, triggered a backlash from the industry and some parts of the Tory party.
A Government source said the privatisation proposal was being reviewed but no decisions had been made.
It comes as Downing Street signalled that all of Mr Sunak's promises were on the table as the Government scrambles to fix the economic turmoil triggered by Liz Truss's disastrous stint in office.
“We are looking at all the campaign pledges and we are looking at whether it is the right time to take them forward,” the PM's press secretary said.
The Channel 4 plan was not part of the 2019 Tory manifesto but Mr Sunak said he would press on with the plan in July.
At the time, a Sunak campaign spokesperson said: “Rishi will take forward Channel 4’s privatisation. Channel 4 is a crucial part of British broadcasting and supports our brilliant creative industries, but a lot has changed since the 1980s when it was set up to provide viewers with more choice.
“Privatisation will help Channel 4 to thrive in an age where they are also competing with Netflix, Amazon, Apple and many more – standing still is not an option.”
Some senior Tories have publicly opposed the idea, including the now Chancellor Jeremy Hunt who said it would be a "shame" to lose it as a competitor to the BBC earlier this year.
Former Scottish Tory leader Ruth Davidson said the idea was "the opposite of levelling up".
“It’s likely that the government will want to quietly drop privatisation,” one senior Tory told the FT.
“It’s unpopular with some parts of the party, has a huge impact on our creative sector and the media bill can be pushed through without including it.”
Channel 4 is publicly owned but commercially funded, mostly through advertising revenue.
