Enterprise Act 2002 (Mergers Involving Newspaper Enterprises and Foreign Powers) Regulations 2025

Baroness Boycott Excerpts

Tuesday 22nd July 2025 Lords Chamber

[Baroness Stowell of Beeston (Con)]

As my noble friend knows and as I have already described, we are now in a different situation from that which we were facing in March of last year, when there was a real prospect that a foreign Government could be the owner of a British newspaper. That matter has been dealt with. What we are dealing with now is state investment funds and, as I am going to come on to talk about, the question is whether the safeguards in place are sufficient.

I am grateful to Lisa Nandy for meeting me on several occasions over the past few months and I am pleased that, because of pressure from me and other noble Lords, the intolerable prospect of multiple foreign powers each owning 15% of a newspaper will be ruled out in the supplementary regulations that the department published in draft last week. Let us be absolutely clear: the 15% must be an aggregate cap. But how on earth that loophole went unnoticed is hard to understand and, once it was pointed out to them, it is baffling, as well as hugely regrettable, that the Government took two months to find a way to close it and chose to do so via additional regulations, instead of immediately withdrawing the regulations before us today and relaying a comprehensive set, so that we could tie all this up in one go before the Summer Recess. I would be grateful if the Minister could tell us why they could not do that. I know she has told us that they plan to lay the supplementary regs by the end of October, but I would like to know why it was not possible to do what I advised them to do back in May.

This foot-dragging and apparent incompetence have given rise to legitimate questions about who or what has really influenced the Government’s approach to this incredibly important matter. If the Government were acting only in the interests of the press industry, we would have sorted all this and resolved the Telegraph’s ownership long before now.

Although I can accept a 15% aggregate cap for state-owned investment, it will require rigorous government oversight of the boundaries that passive investors must not extend, and Parliament will need to be better equipped and more active in holding Ministers to account. In my view, it was frankly unacceptable for the Government to stay silent for 11 months on the matter of the secondary regulations and on what they were doing to safeguard the Telegraph’s future ownership during that time.

Noble Lords may have seen, and indeed have heard already from the Minister, that the supplementary regulations that are to follow these include a new notification requirement, meaning that any state-owned investor that acquires more than 5% must notify the Secretary of State within 14 days of that acquisition to be eligible for the exemption status. In my view, as a follow-on to that, the Secretary of State should be required to notify Parliament twice yearly about any or nil such notifications, together with information about action taken by her as a result. In future, we are going to need more information. Can the Minister ensure that this additional requirement of accountability to Parliament be added to the supplementary regulations the Government are now consulting on?

Although parliamentarians must respond to any failings by Ministers, when it comes to upholding press freedom, the most important line of defence is the newspaper proprietors. They are who and what must provide a strong shield between newsrooms and illegitimate pressure or demands from investors and advertisers. They know that not doing so undermines public trust in journalism, and that would damage the value of their investment.

It is not for Parliament to dictate how proprietors should discharge their responsibility, but in a media world that includes the presence of state-owned investors, clarity and some transparency about what proprietors are doing to protect their newspapers’ independence and editorial freedom becomes important. This is particularly so where proprietors are new to the newspaper industry or are private equity funds. Can the Minister tell us, therefore, what such demands the Government will make of the new Telegraph owners if and when that transaction is completed? Can she confirm that the Telegraph deal, once finalised, will be subject to detailed scrutiny by the CMA before it is completed?

If the noble Lord, Lord Fox, pushes his amendment to a Division, I will vote against it. Of course, as a former Leader of your Lordships’ House, I have a general aversion to this Chamber seeking to block legislation. Indeed, it was me, as Leader, who was the last Minister at that Dispatch Box defeated by this House on a piece of secondary legislation. But I am not against this amendment for any kind of constitutional-like reasons of convention or tradition, important though they are. Believe me, if I thought that supporting this amendment was the right thing to do, I would. But I do not.

While I respect those who are framing this debate as a battle over the future of press freedom, actually, if it is a battle about anything, it is over the future of a financially viable press. We do not just need our newspapers to be editorially independent; we need them to survive.

When it comes to the Telegraph, of course I would have loved someone serious to have come along with a consortium that could offer investment and honour a cap of 5%. Indeed, I would have loved it if this sorry saga, which has been so destabilising to the editorial team at that newspaper and has gone on for more than two years, could have been avoided altogether. But, as I have already argued, this is not just about the Telegraph; it affects all newspaper titles.

The regulations before us set the cap at 15%. As long as the Government follow through with the supplementary regulations to close that loophole and are prepared to give the necessary undertakings to ensure that that cap will be enforced, I am willing to accept them. Everyone else gets to fight another day; let us make sure the same applies to the Telegraph Group and the wider UK press industry.

Of course, if the noble Lord, Lord Fox, withdraws his amendment and supports mine instead, noble Lords can express their regret and record their dissatisfaction with how the Government have handled this matter by supporting my amendment.

[Baroness Boycott (CB)]

My Lords, I rise to support the Government on this measure. I think that 15% passive ownership is perfectly okay. I very much support a lot of what the noble Baroness, Lady Stowell, said about the roles of proprietors. I have edited three national newspapers, so I know a lot about proprietors. Indeed, my last proprietor sold our newspaper to a man who had made his money out of Big Ones and Asian Babes. If that is considered a good way to pass things on, I would really question this.

A passive investment is perfectly okay and, as the noble Baroness, Lady Stowell, said, the power and influence of a newspaper is absolutely about the proprietor. The proprietor will appoint an editor who is more or less in line with them. If this investment is passive, the Government have done something valuable because we have a lot of problems in our press and with various things. For instance, the Independent is highly linked financially to Saudi Arabia. I declare an interest as Geordie Greig, the editor, is a friend of mine. We have discussed this endlessly. He says that you cannot find any influence of Saudi Arabia within his newspaper, and I agree. The fact that it does a Saudi Arabian issue is its business. I am not saying I like it, but it is making a newspaper, which many of us read, available free at the point of delivery, and all sorts of good things that are otherwise going to disappear.

Rupert Murdoch is a very complicated proprietor. A lot of the stuff to do with phone hacking is still not resolved. It is very rich of the noble Lord, Lord Fox, to say that everything is going to fall apart if we get some investment in the Telegraph. Proprietors have politics and they want things to be done their way. The Government have a right, indeed, a duty, not only to make sure that this passive investment is kept that way, but to look at the whole question of proprietors. Obviously, they are going to want influence, so it is very important that the Government carry on if this is going to be about general press and, indeed, media regulation, which looks also at online regulation. Heaven knows where the money for all of that is coming from.

We need to have very firm standards here. In the meantime, I thoroughly support what the Government are proposing today, and a fatal amendment against it would be a real mistake.

[Lord Black of Brentwood (Con)]

My Lords, it is a pleasure to follow the noble Baroness. She and I probably have not always agreed on everything, but I echo every word that she said today.

I have thought long and hard about whether to take part in this debate, but as it touches on two subjects very close to my heart—the sustainability of an independent free press and, in practical terms, the future of the Telegraph Media Group—I concluded that it would be irresponsible not to do so.

Let me declare my interests—and I mean that in the broadest possible sense. First, I hope that all noble Lords will recognise my unwavering commitment to press and media freedom, a cause that I have championed passionately for three decades. I have stood up consistently and robustly for it in this House, even when it has been deeply unpopular and unfashionable to do so, and I would never support anything that I believed would damage it. I stood almost alone in opposing the imposition of statutory controls in the Crime and Courts Act 2013, and what became Section 40. I campaigned for 11 years for its repeal, in the teeth of opposition from the Liberal Democrat Benches. I note with some irony, given that they have such a track record, that they are putting forward this fatal amendment today in the name of press freedom, and we should not fall for it.

Secondly, I have worked for the Telegraph Media Group for exactly 20 years this September, which is half my working life. I love the Telegraph, and the protection and promotion of its safety, security, editorial independence and freedom, and sustainability are etched into my DNA. I would never do anything to compromise that, and I declare my interest as its deputy chairman. It is for both those reasons, philosophical and practical, that I make these few remarks.

The news publishing industry in the UK does face— I will be the third person to say it—an existential crisis. We all know the reasons: the impact of digital and the voracious appetite of unaccountable, unregulated platforms have put enormous pressure on the revenues of all publishers. Tragically, many titles have closed, particularly in the local press, with thousands of reporters’ jobs lost. The future of many others hangs in the balance, and the analysis put forward by my noble friend Lady Stowell is absolutely spot on. The implications for our democracy are profound.

The situation has been made worse by the decisions of this Parliament; in particular, the data Act, which we have, with some reluctance, just passed. While publishers are fighting hard to remodel their businesses and build new revenues, the exponential growth of AI, unrestrained by effective copyright law, threatens the very future of all news brands, as I have pointed out with perhaps monotonous repetition in this House.