Channel 4 will get extra funding

Culture secretary Tessa Jowell has confirmed the government will allocate £14 million to Channel 4 to help it meet the costs of digital switchover.

The extra funding, which will come from a portion of the BBC licence fee, will have to be approved by the European commission before the government can proceed. This 'top-slicing' funding option was first raised in the 2005 white paper on BBC charter renewal.

The government's proposed review of funding for public service broadcasting will also now be brought forward so that it begins immediately after Ofcom has completed its review of the provision of public service broadcasting.

Jowell, who announced the move to the Royal Television Society yesterday, said: "Despite the profound changes ahead for the television sector in the coming years, I remain convinced that the case for public service broadcasting will endure."

The minister also warned that Channel 4 would be "closely scrutinised," but said she believed it had important role as a source of PSB competition, and added: The government wants to see that continue."

Andy Duncan, chief executive of Channel 4, said: "This is important transitional help that will underpin our public service contribution while we work with Ofcom and the government to identify the most important forms of medium to long-term intervention."