Source · Select Committees · Culture, Media and Sport Committee
Recommendation 5
5
Acknowledged
Paragraph: 56
We recognise that consolidation within the local news industry has ensured the survival of titles...
Recommendation
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.
Government Response Summary
The government discussed the Committee’s recommendation with the Charity Commission and notes that there is limited evidence of widespread appetite among publishers for seeking charitable status. The Charity Commission will continue to monitor this area in line with its usual approach to issues and take action as appropriate.
Paragraph Reference:
56
Government Response
Acknowledged
HM Government
Acknowledged
We have since discussed the Committee’s recommendation with the Charity Commission and note that there is limited evidence of widespread appetite among publishers for seeking charitable status, despite the awareness-raising work that has been done since 2020. Charitable status is unlikely to be a suitable model for many news publishers, given that, for example, they would be prohibited from being ‘for profit’ companies and limited in the types of journalism that they could fund. However, we also note concerns raised by the Committee concerning possible obstacles in the process which may be deterring applicants. We would encourage publishers and other interested parties to bring forward any detailed evidence of this issue. Beyond this, the Charity Commission will continue to monitor this area in line with its usual approach to issues and take action as appropriate.