Government study says relocation could bring almost £600m in economic benefits to the region where broadcaster is moved.

Forcing Channel 4 into a full relocation outside of London and making more programmes for the broadcaster outside the capital could create nearly 7,500 jobs and deliver almost £600m in economic benefits, according to a new government report.

A dozen cities and regions across the UK are lobbying to provide a new home to Channel 4, including Birmingham, Liverpool, Sheffield and Leeds.

However, the chief executive, David Abraham, and the chairman, Charles Gurassa, have ferociously rejected a wholesale move of Channel 4 and its 800 staff, saying it would be catastrophic for its business.

The government’s 56-page report examined a range of options – including a full, partial and very limited move from London – as well as the impact of making Channel 4 increase its spend on programmes made by TV producers outside the capital.

The report found that combining a full move of the broadcaster’s headquarters with an £88m-a-year boost in spending on shows made outside of London could create economic benefits of £580m and 7,490 jobs across the country.

Implementing only a wholesale move of Channel 4 staff out of London, with no shift in programming spend, would deliver a £235m benefit and 3,400 jobs.

Choosing only to boost Channel 4’s out-of-London programming spend would create £300m in benefits and create 3,500 jobs.

The report found that combining the two plans would create more impact than either implemented on their own. The models looked at cutting Channel 4’s staff by about 20%, some 160 of its 800 staff.

“Channel 4, as a publicly owned broadcaster, should do more to support economic growth and provide for audiences outside of London,” said the culture secretary, Karen Bradley.

“This independent analysis makes clear the potential benefits of Channel 4 increasing its impact outside the capital, and we hope to agree a way forward so that the broadcaster truly reflects and represents the full diversity of the UK.”

A partial relocation, in which Channel 4’s large ad sales operation would remain in London, would create about £170m in economic benefits and create up to 2,500 jobs.

A limited relocation – excluding the ad sales operation, 120-strong programme commissioning function and other teams with “strong connections” – would generate £95m in economic benefits and 1,400 jobs.

The government – which has also evaluated, but rejected, a £1bn sale of Channel 4 – could benefit by up to £100m by selling off the broadcaster’s headquarters in Horseferry Road, Victoria, in central London.

“We are not the BBC and do not have armies of producers to move to Manchester and Salford,” said Abraham, speaking to a committee of MPs on Tuesday. “We are enthusiasts for the regionalism of our schedule. We are disappointed we are presented as if we are in our palace in London never venturing forth, which is just not true.”

Abraham has said that as much as 60% to 80% of Channel 4’s workforce would leave if they were forced to move out of the capital.

Channel 4 spends £695m a year on programming, with £500m of that on original TV shows. Of the original productions budget, about 40% is spent on shows from TV production companies based outside London. About 55% of the hours of TV shown by Channel 4 is made up of programming made outside London.

The broadcaster has said that it would look to further increase its spending and presence beyond London. Currently only about three or four of its 120 commissioners live outside the capital.