Paul O’Grady has threatened to leave Channel 4 if the budget for his chat show is drastically reduced.

Bosses are said to be planning to half his £2 million budget and O’Grady has told The Sunday Mirror that if they do, he will walk.

O’Grady said: “Cutting it by half is outrageous. You’re going to end up with the blandest of the bland and I won’t be part of it. I really want to carry on.

“I like Channel 4 and I’m more than happy to stay and take a cut in my own wages, perhaps 20%. But I’m not going to turn around to my staff and say, ‘We’ve got to cut your wages or sack you’. They’ve been with me for six years – they have mortgages to pay and families to feed.

“I would understand if my ratings were down and the show wasn’t performing but it consistently wins its slot and brings in good advertising revenue.”

He added: “If we take a 50% cut, it means we’d only be able to afford a couple of cameras. We can’t do five days a week for half the price. It would be crap.

“Honestly, it would be the bare arse of a show and it would be a compromise too far. I’d be mortified to do a show that’s third rate.

“They said they can do Come Dine With Me for half the price, but we’re not about four people eating a lousy dinner and moaning about it.”

A Channel 4 source said: “We are a commercial company and therefore not immune from the current climate. People have the right to look elsewhere when their deals with us end.”