As Ofcom backs the idea of Channel 4 developing ‘a partnership’ or merge with another commercial organisation, the station has announced that it is to introduce a new £1million fund which will look to develop series from the nations and regions.

Kevin Lygo, director of television and content for C4 has pledged to spend up to £1.5bm outside of London over the next ten years as he looks to maintain the £100m a year it spends on regional production. This will include the £50m 4IP online PSB fund which has offices in Glasgow, Yorkshire and Birmingham.

Meanwhile, Ofcom’s report on the Future of Public Service Broadcasting has stated that C4 should join and become a key part of a new organisation offering PSB alternative to the BBC.

According to the report: "this could be formed by partnerships, joint venture or mergers between C4 and other organizations," and that such a move would help generate cost savings and grow value.  A move to merge or link up with Five or BBC Worldwide is also suggested.

The report has says that it will adopt the proposals to restructure ITV's regional news in England and the Scottish borders and allow programmes that are highly valued by audiences to be prioritised. It also claims that the Government should look to create an alternative for regional news for Scotland, Wales and the English regions after 2011 and that this should be put out to tender and preferably aired on Channel 3.

In other news, the channel is also set to advertise for a new commissioning editor in April to be based in its Glasgow office.