80 cities may get their own TV stations

By JON REES
Updated: 17:17 EST, 18 September 2010

British cities will move a step closer to launching their own television stations with the publication of a Government report this week.

The report commissioned by Media Secretary Jeremy Hunt looks at the future of local television services and is being compiled by a panel headed by Nicholas Shott of investment bank Lazard.

The panel is focusing on proposals drawn up for the Tories by YouGov chairman Roger Parry, who suggested it might be possible to set up 80 local television stations in cities across the UK after 2012, when the rollout of digital television will be complete.

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Claire Enders, a member of Shott's panel, said investigations were continuing, but it appeared the scheme could be feasible.

'There is an awful lot of experience of failure when it comes to launching local television services, but we are inching away from this and heading towards the view that it might work under the right conditions,' she said.

The panel is investigating how such services would be funded, since British cities are not regarded as large enough to supply enough advertising revenue.

The proposals for a commercially funded local TV service replaces the previous Government's commitment to using a proportion of the BBC licence fee to fund local news.

Separately, ITV chief executive Adam Crozier has begun briefing staff on the details of his and chairman Archie Norman's plan to turn round the business.

ITV sources deny suggestions that major jobs losses will be announced, though the firm has said that it aims to become 'lean'.