Question

To ask the Secretary of State for Culture, Media and Sport, whether her Department is taking steps to provide financial support to local newspapers.

The Government is committed to supporting local and regional newspapers as vital pillars of communities and local democracy. They play an essential role in holding power to account, keeping the public informed of local issues and providing reliable, high-quality information.

However, as the independent Cairncross Review into the future of journalism identified, society is increasingly moving online and local news publishers are facing significant challenges in transitioning to sustainable digital business models.

The Government supported the majority of Cairncross recommendations and has taken them forward through a range of fiscal and regulatory interventions. With regard to financial support, this has included the delivery of the £2 million Future News Fund; the zero rating of VAT on e-newspapers; and the extension of a 2017 business rates relief on local newspaper office space until 2025. The BBC also supports the sector, through the £8m it spends each year on the Local News Partnership, including the Local Democracy Reporting Scheme. The Government was pleased to see the BBC conduct a thorough review of this initiative in 2020, as recommended by the Cairncross Review. As set out in our response to the Review, we would support any efforts by the BBC to grow the scheme.