The Foreign State Influence (FSI) media merger regime prevents foreign powers controlling, influencing or owning UK newspapers. It includes a mechanism for the DCMS Secretary of State to block or unwind transactions which would enable a foreign power to influence or control a UK newspaper.

The regime is not intended to prevent any and all inward investment in the sector from overseas, which would be disproportionate. However, it is proportionate to have specific protections for newspapers, due to the unique role they play in our democracy and society. The accurate provision of news is essential to inform debate and opinion and support social cohesion.

The Government recognises challenges to the sustainability of the local news sector, including smaller independent publishers, and is taking steps to support it through the Local Media Action Plan. A key pillar of the Plan is a Local News Fund, worth up to £12million in the next 2 years, which will help local media outlets digitally innovate and revive a local news presence in local news deserts.

A social media levy is not currently under consideration as a mechanism for funding distribution of media ownership. The existing Digital Services Tax (DST) is a 2 percent tax to ensure that providers of search engines, social media platforms, and online marketplaces pay UK tax on digital services that reflects the value they derive from UK user-related activities. DST was introduced as an interim solution to the challenges posed by the digitalisation of the economy to the international corporate tax framework.

There are currently no plans to introduce a statutory regulator for the UK press. In the UK there is a self-regulatory system for the press, which is independent from Government. Having a free and fair press is vital to ensure the public has access to accurate and trustworthy information from a range of different sources. To protect this freedom, the Government does not intervene in or oversee the work of the press or the independent press regulators.

We are also clear that with this freedom comes responsibility, and publishers must operate within the bounds of the law and set and uphold high professional and ethical standards. This includes ensuring access to clear, timely and effective routes to redress.

Regarding think tanks, it is for each individual think tank to determine whether to declare its sources of funding. Think tanks with charitable status must follow Charity Commission guidance, ensuring political activity remains subsidiary and exclusively furthers their charitable purposes. Electoral law already covers think tanks that donate or spend during regulated election periods.

The Government welcomes Philip Rycroft’s comprehensive and thoughtful report on foreign financial interference in our democracy. The review sets out 17 wide-ranging recommendations to tackle foreign financial interference in the UK’s political and electoral systems, and the Government will reflect swiftly on how best to take these forward, given their technical nature. A full written response will be provided in due course.

Department for Culture, Media and Sport