Select committee: Digital, Culture, Media and Sport Committee

Seventh Report - Sustainability of local journalism

HC 153 Published 25 January 2023

Digital, Culture, Media and Sport Committee Sustainability of local journalism Report on parliament.uk ↗

At a glance7 recommendations and 2 conclusions · Government response published 17 May 2023 (deadline 9 May 2023)

The government's response

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

What the committee recommended 9

1
Despite the collapse in revenues and the immense challenges facing those titles remaining in the... Conclusion · paragraph 24
2
The LDRS has had a positive impact on local journalism by enabling important local news... Conclusion · paragraph 35
3
The Government’s response to the Cairncross Review recommendation to set up an innovation fund for... Recommendation · paragraph 44
4
Statutory notices in local newspapers remain an important means of keeping the public informed and... Recommendation · paragraph 47
5
We recognise that consolidation within the local news industry has ensured the survival of titles... Recommendation · paragraph 56

See all 9 recommendations and conclusions

Sources

Seventh Report - Sustainability of local journalism ↗The committee's report, HC 153, parliament.uk
Ninth Special Report - The sustainability of local journalism: Government Response to the Committee’s Seventh Report ↗The government's response, 17 May 2023, parliament.uk

Recommendations and conclusions 9

1
Despite the collapse in revenues and the immense challenges facing those titles remaining in the... Conclusion · paragraph 24 · addressed to Department for Culture, Media and Sport Conclusion (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.
2
The LDRS has had a positive impact on local journalism by enabling important local news... Conclusion · paragraph 35 · addressed to Department for Culture, Media and Sport Conclusion (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.
3
The Government’s response to the Cairncross Review recommendation to set up an innovation fund for... Recommendation · paragraph 44 · addressed to Department for Culture, Media and Sport Recommendation (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.
4
Statutory notices in local newspapers remain an important means of keeping the public informed and... Recommendation · paragraph 47 · addressed to Department for Culture, Media and Sport Recommendation (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.
5
We recognise that consolidation within the local news industry has ensured the survival of titles... Recommendation · paragraph 56 · addressed to Department for Culture, Media and Sport Recommendation (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.
6
Access to more philanthropic funding could help ensure the sustainability of the local news sector. Recommendation · paragraph 62 · addressed to Department for Culture, Media and Sport Recommendation (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.
7
We welcome the Government’s indication that there will be support for local TV in the... Recommendation · paragraph 70 · addressed to Department for Culture, Media and Sport Recommendation (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.
8
We echo the concern expressed by colleagues across the House and beyond about the BBC’s... Recommendation · paragraph 73 · addressed to Department for Culture, Media and Sport Recommendation (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.
9
We are glad that the Government appears to be expediting the introduction of the Digital... Recommendation · paragraph 81 · addressed to Department for Culture, Media and Sport Recommendation (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.