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Select committee: Digital, Culture, Media and Sport Committee

Sustainability of local journalism

Closed Opened 14 Feb 2022 Closed 24 May 2023 7 recommendations 2 conclusions

Digital, Culture, Media and Sport Committee Inquiry on parliament.uk ↗

Inquiry scope (the committee's words)
The DCMS Committee will examine what challenges face local news organisations and what support should be put in place in order to maintain their democratic function. The Sustainability of Local Journalism inquiry will consider the operation of the market for local journalism and how that is affected by increasing competition from social media and public service broadcasters. MPs will assess the impact of the findings of the Cairncross Review which examined how to create a sustainable future for journalism, with particular relevance to ensuring the continued and the long-term supply of local journalism.

Where it stands

The inquiry is closed, opened 14 February 2022.

The committee has published 1 report, most recently Seventh Report - Sustainability of local journalism on 25 January 2023.

The government's response

Published 17 May 2023. The deadline was 9 May 2023.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government welcomes the Committee's report and agrees with its overall assessment of journalism's role and the sector's financial challenges, while setting out varied positions on individual recommendations.

  • On a long-term public interest news fund, it "continue[s] to explore options for additional fiscal measures", while "mindful of the current financial climate". Any further funding would build on the Future News Fund model.
  • On statutory notices, it does "not intend to conduct a review" of rules and practices, citing the risk that intervention could harm an "already fragile industry". It is monitoring the sector's Public Notice Portal.
  • On an audit of public money for local news, it says it "would therefore not be appropriate" to analyse expenditure with a view to redistribution. It describes a Cabinet Office pilot with Nub News to test its value as an advertising channel after the local elections.
  • On fair remuneration for smaller publishers, it points to the Digital Markets, Competition and Consumers Bill, under which the DMU "could" set conduct requirements, including on "fair and reasonable payment terms". These would vary case by case.

Read the government's response ↗ Report an error

Recommendations and conclusions

All 9 recommendations and conclusions

Reports

All reports

Evidence

  • 4 oral evidence sessionsLatest 18 October 2022
  • 20 witnesses
All evidence

Recent activity

Recommendations and conclusions 9 shown

Conclusion 1

Conclusion · Seventh Report - Sustainability of local journalism · Addressed to Department for Culture, Media and Sport

Concluded (the committee's words)
Despite the collapse in revenues and the immense challenges facing those titles remaining in the market, there are many encouraging examples of innovation by local news publishers. These demonstrate that, provided the right support is given, the sector can be revived and can have a sustainable future.

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Conclusion 2

Conclusion · Seventh Report - Sustainability of local journalism · Addressed to Department for Culture, Media and Sport

Concluded (the committee's words)
The LDRS has had a positive impact on local journalism by enabling important local news stories to get coverage where otherwise they might not. But more could be done to expand the service across different media platforms and to give access to a wider range of news providers. The BBC must also ensure that partner news providers use Local Democracy Reporters for their intended purposes. The LDRS should be protected under forthcoming Charter negotiations, and we encourage the BBC to explore ways to widen the scope of the service.

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Recommendation 3

Recommendation · Seventh Report - Sustainability of local journalism · Addressed to Department for Culture, Media and Sport

Recommended (the committee's words)
The Government’s response to the Cairncross Review recommendation to set up an innovation fund for public interest news was welcome. But the Future News Pilot Fund was neither substantial nor long-term enough to make a significant difference, and there has been no follow up. The Government should build upon the Future News Pilot Fund and create a long-term public interest news fund with a remit to support innovation.

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Recommendation 4

Recommendation · Seventh Report - Sustainability of local journalism · Addressed to Department for Culture, Media and Sport

Recommended (the committee's words)
Statutory notices in local newspapers remain an important means of keeping the public informed and a vital revenue stream for many local news publishers. But the criteria used by some councils to determine where notices are published appear to be outdated. We recommend that the Government review existing rules and practices for placing statutory notices in local newspapers and whether local councils need guidance on how to measure the reach and audience levels of news publications in a digital age. This should include an assessment of how the revenue stream from statutory notices can be made more easily accessible for new entrants to the local news market. The Government should set out the progress of this review in its response to this report.

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Recommendation 5

Recommendation · Seventh Report - Sustainability of local journalism · Addressed to Department for Culture, Media and Sport

Recommended (the committee's words)
We recognise that consolidation within the local news industry has ensured the survival of titles that otherwise would have closed. But we are concerned that some of the approaches of the largest publishers appear to be compromising the quality the local journalism produced by their titles. We are also concerned that the largest publishers take a disproportionate share of the support available for local journalism, to the detriment of smaller publishers and those entering the market. This may be stifling much needed innovation that could benefit the sector as a whole. We recommend that the Government conducts an audit of public money that supports the local news sector. This should be followed by an analysis of whether this money can be more fairly distributed and better used to promote innovation. We also recommend that the Government considers ways to facilitate improved engagement 38 Sustainability of local journalism between smaller local news publishers and private organisations providing support for local journalism. The Government should provide an update on the progress of this work in its response to this report.

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Recommendation 6

Recommendation · Seventh Report - Sustainability of local journalism · Addressed to Department for Culture, Media and Sport

Recommended (the committee's words)
Access to more philanthropic funding could help ensure the sustainability of the local news sector. Many, though not all, local news publishers would benefit from charitable status, but this is currently very difficult for news organisations to achieve. We recommend that the Government, in its response to us, indicates what options it might consider to make it easier for local news organisations to achieve charitable status. We also recommend that the Government assess ways to encourage more philanthropic donations to local news publishers for whom charitable status would not be appropriate.

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Recommendation 7

Recommendation · Seventh Report - Sustainability of local journalism · Addressed to Department for Culture, Media and Sport

Recommended (the committee's words)
We welcome the Government’s indication that there will be support for local TV in the forthcoming Media Bill and are glad that provisions concerning radio now also look to be included. We also welcome the Minister’s indication that the Community Radio Fund (CRF) will be increased to reflect the growth of the sector. We recommend that the Government should explore how the expanded CRF, as well as other existing journalism support schemes, could be used to help community radio conduct more local journalism.

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Recommendation 8

Recommendation · Seventh Report - Sustainability of local journalism · Addressed to Department for Culture, Media and Sport

Recommended (the committee's words)
We echo the concern expressed by colleagues across the House and beyond about the BBC’s proposed changes to local radio provision. Sharing content across larger areas and regions risks undermining the sense of localness that has, until now, made BBC local radio distinct. The BBC’s plans to direct more resources to its online local news services may risk harming commercial news publishers, whose sustainability is already precarious. While we recognise that the latest license fee settlement is difficult for the BBC, we do not consider that the strategy for digital first should come at the expense of local radio and recommend that the Corporation reconsiders its plans.

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Recommendation 9

Recommendation · Seventh Report - Sustainability of local journalism · Addressed to Department for Culture, Media and Sport

Recommended (the committee's words)
We are glad that the Government appears to be expediting the introduction of the Digital Markets, Competition and Consumer Bill, which will be vital to redressing the unbalanced relationship between the large digital platforms and local news publishers (among many others). It is important that any code of conduct and collective bargaining mechanisms provided for by the bill do not lead to the exclusion of smaller news publishers. We recommend that clear and explicit provisions for ensuring smaller publishers are fairly remunerated be included in the Government’s new pro-competition regime.

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Reports

1 report

Oral evidence sessions

4 sessions

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Date Session and witnesses Source
18 Oct 2022
Oral evidence session
Julia Lopez MP · Department for Culture, Media and Sport, Robert Specterman-Green · Department for Culture, Media and Sport 		View ↗
7 Jul 2022
Oral evidence session
David Floyd · Social Spider CIC, George Brock · Charitable Journalism Project, Karl Hancock · Nub News, Maria Breslin · Liverpool Echo, Matt Abbott · Independent Community News Network, Polly Perkins · Burngreave Messenger 		View ↗
28 Jun 2022
Oral evidence session
David Higgerson · Reach plc, John Severinson · Meta, Paul Hutchinson · Bedford Independent, Professor Natalie Fenton · Media Reform Coalition, Rhodri Talfan Davies · BBC, Tom Morrison-Bell · Google 		View ↗
17 May 2022
Oral evidence session
Adam Cantwell-Corn · The Bristol Cable, David Powell · Local TV Network, Jonathan Heawood · Public Interest News Foundation, Martin Steers · UK Community Radio Network, Michelle Stanistreet · National Union of Journalists, Owen Meredith · News Media Association 		View ↗

Who gave evidence

20 witnesses

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WitnessOrganisationSessions
Adam Cantwell-Corn · Co-Founder The Bristol Cable 1
David Floyd · Director Social Spider CIC 1
David Higgerson · Chief Audience Officer Reach plc 1
David Powell · Chair Local TV Network 1
George Brock · Chair Charitable Journalism Project 1
John Severinson · Head of News Partner Development, Europe Meta 1
Jonathan Heawood · Executive Director Public Interest News Foundation 1
Julia Lopez MP · Minister of State Department for Culture, Media and Sport 1
Karl Hancock · Chief Executive Nub News 1
Maria Breslin · Editor Liverpool Echo 1
Martin Steers · Co-founder UK Community Radio Network 1
Matt Abbott · Deputy Director Independent Community News Network 1
Michelle Stanistreet · General Secretary National Union of Journalists 1
Owen Meredith · Chief Executive News Media Association 1
Paul Hutchinson · Co-founder Bedford Independent 1
Polly Perkins · Editor Burngreave Messenger 1
Professor Natalie Fenton · Founder Media Reform Coalition 1
Rhodri Talfan Davies · Director of Nations BBC 1
Robert Specterman-Green · Director, Media and Creative Industries Department for Culture, Media and Sport 1
Tom Morrison-Bell · Government Affairs and Public Policy Manager Google 1

Correspondence

1 letter

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PublishedDirectionLetter
25 Oct 2022 To committee Letter from Julia Lopez MP, Minister of State for Media, Data and Digital Infrastructure, relating to local journalism oral evidence follow up, 24 October 2022