STV has applauded the news that product placement is set to be introduced to UK television screens with the Government reported to be willing to relax the rules which have previously prevented it.

Culture Secretary Ben Bradshaw is understood to be ready to propose that broadcasters be allowed to take payments from brands for featuring their products within programmes.

The move is expected to be universally acclaimed by the British broadcast media which is has been badly affected from the downturn in advertising revenue in recent years.

Bradshaw replaced Andy Burnham in June in the role, when Burnham moved to become health secretary. Burnham was heavily opposed to the introduction of product placement and ignored calls, fearing an adverse impact on UK broadcasting standards.

A spokesperson for STV, told The Drum: "STV would welcome the relaxation of rules around product placement.  This would open up a new revenue stream at what is a challenging time for the broadcasting industry and would ultimately deliver better funded content for viewers."

A spokesperson for ITV also welcomed the change in legislation if it does take place, saying: "If the Government does decide to permit product placement, it will be warmly welcomed by the commercial broadcasting industry and advertisers alike."

The Department of Culture Media and Sport said in a statement: “In his new role as culture secretary, Ben Bradshaw has been reviewing policies across the whole of his brief, including on product placement. We will make an announcement as and when a final decision is taken.”

The announcement is expected to be made on Wednesday when Mr Bradshaw addresses the Royal Television’s Society at its convention in Cambridge on Wednesday.