Proposals to privatise Channel 4 are being considered by the UK Government once again in a move that could raise more than £1billion for deficit reduction.

Senior figures said plans to sell the state's 100 per cent shareholding were being 'looked at' but 'have not progressed to a formal stage yet'.

One source told the Financial Times: 'We are sounding people out.'

But critics of the proposals say that this could cut funding for independent programme makers as show budgets would be slashed by £200m a year.

Proposals to privatise Channel 4, the home of award-winning shows such as Gogglebox (pictured), are being considered by the UK Government

Chief executive David Abraham warned that running Channel 4 for profit would mean cutting the money spent on screen from around £600m per year to £400m to deliver returns to shareholders.

Referring to the rival broadcaster, he said: 'For me, the political question then is does Britain need another Channel 5?'

Chief executive David Abraham (pictured) warned that running Channel 4 for profit would mean cutting the money spent on shows

He previously said: 'Bluntly, if I was asked to run this business and deliver a 25pc margin, which I'm used to doing in the commercial sector, I wouldn't be handing over £600m for programmes; I'd be handing over £400m.'

The question of Channel 4 ownership is expected to be considered by George Osborne and the new Culture Secretary John Whittingdale as part of a shake-up of the main channels.

It will include an Ofcom review of public service broadcasting and a tense renegotiation of the BBC licence fee.

The issue was last considered under the coalition but privatisation plans were rejected by the then-Business Secretary Vince Cable and the Liberal Democrats.

Labour and the Lib Dems and the emphasised their support for Channel 4 remaining a public entity in the run-up to the election, but the Tories remained silent on the issue in their manifesto.

The Treasury has announced the sale of its 19 per cent stake in Lloyds Banking Group within 12 months.

The government has also set out plans to sell off its £32billion stake in the Royal Bank of Scotland and its £1.5bn holding in the Royal Mail since winning the election.