London Daily

Focus on the big picture.
Monday, Jan 19, 2026

Ministers snub proposals to fund public-interest reporting

Ministers snub proposals to fund public-interest reporting

Lady Morgan says government cash would damage press freedom
Ministers have rejected proposals that state funding should be used to support public-interest journalism in the UK, saying that intervention by the government would damage a free press.

Last year’s official review into the future of public interest journalism by Dame Frances Cairncross, which painted a dire picture of the financial state of British journalism, suggested it would be necessary for the state to support reporting considered essential to a functioning democracy.

The official response from the culture secretary, Lady Morgan, largely rejected direct intervention. “It is of vital importance that the press remains free and independent of government, and there are therefore areas where intervention by government would be inappropriate,” she said.

Cairncross had suggested the government should found a new Institute for Public Interest News to coordinate between publishers, broadcasters, and online platforms to ensure a future for quality reporting.

But the government’s response – issued almost 12 months after the initial proposals – said it would not be taking forward the idea: “It is not for the government to define what qualifies as ‘public interest’ news. While any institute would be at arm’s length from government, we recognise concerns that even an arm’s length relationship risks perceptions of inappropriate government interference with the press.”

The government also rejected proposals to extend charitable status to many struggling local news outlets, saying it would not be appropriate because they would be banned from supporting political parties, stopped from being for-profit, and much journalism does not work “only for the public benefit”.

However, ministers are looking at whether to extend certain tax breaks to cover aspects of the news business. This could include effectively removing the VAT charged on online news subscriptions to bring it in line with printed newspapers, a move which would benefit the likes of News UK which recently won a long-running legal victory against the taxman on this point.

Ministers have instead limited their financial commitment to giving a £1,500 discount on business rates for office space occupied by local newspapers in England, while also confirming previously-announced plans to award £2m of funding through the arms-length body Nesta to encourage innovation in the news industry. The government cash will be used to “invest in new technological prototypes, start-ups and innovative business models to explore new ways of sustaining the press in a changing landscape”, rather than subsidising existing operators.

Instead, the government is encouraging the BBC to expand its licence-fee funded local democracy reporter scheme, while awaiting the competition regulator’s investigation into the online advertising market.

Henry Faure Walker, chairman of the industry lobby group News Media Association, said he was “disappointed at the lack of clear financial commitment by the government to implement the recommendations”, warning that the new innovation fund appears to be bypassing traditional local news publishers.

“Without swift and significant market intervention now, the flow of independent, high-quality local news and information which is essential for the functioning of our democracy can no longer be guaranteed.”
Newsletter

Related Articles

0:00
0:00
Close
High-Speed Train Collision in Southern Spain Kills at Least Twenty-One and Injures Scores
Meghan Markle May Return to the U.K. This Summer as Security Review Advances
Trump’s Greenland Tariff Threat Sparks EU Response and Risks Deep Transatlantic Rift
Prince Harry’s High Court Battle With Daily Mail Publisher Begins in London
Trump’s Tariff Escalation Presents Complex Challenges for the UK Economy
UK Prime Minister Starmer Rebukes Trump’s Greenland Tariff Strategy as Transatlantic Tensions Rise
Prince Harry’s Last Press Case in UK Court Signals Potential Turning Point in Media and Royal Relations
OpenAI to Begin Advertising in ChatGPT in Strategic Shift to New Revenue Model
GDP Growth Remains the Most Telling Barometer of Britain’s Economic Health
Prince William and Kate Middleton Stay Away as Prince Harry Visits London Amid Lingering Rift
Britain Braces for Colder Weather and Snow Risk as Temperatures Set to Plunge
Mass Protests Erupt as UK Nears Decision on China’s ‘Mega Embassy’ in London
Prince Harry to Return to UK to Testify in High-Profile Media Trial Against Associated Newspapers
Keir Starmer Rejects Trump’s Greenland Tariff Threat as ‘Completely Wrong’
Trump to hit Europe with 10% tariffs until Greenland deal is agreed
Prince Harry Returns to UK High Court as Final Privacy Trial Against Daily Mail Publisher Begins
Britain Confronts a Billion-Pound Wind Energy Paradox Amid Grid Constraints
The graduate 'jobpocalypse': Entry-level jobs are not shrinking. They are disappearing.
Cybercrime, Inc.: When Crime Becomes an Economy. How the World Accidentally Built a Twenty-Trillion-Dollar Criminal Economy
The Return of the Hands: Why the AI Age Is Rewriting the Meaning of “Real Work”
UK PM Kier Scammer Ridicules Tories With "Kamasutra"
Strategic Restraint, Credible Force, and the Discipline of Power
United Kingdom and Norway Endorse NATO’s ‘Arctic Sentry’ Mission Including Greenland
Woman Claiming to Be Freddie Mercury’s Secret Daughter Dies at Forty-Eight After Rare Cancer Battle
UK Launches First-Ever ‘Town of Culture’ Competition to Celebrate Local Stories and Boost Communities
Planned Sale of Shell and Exxon’s UK Gas Assets to Viaro Energy Collapses Amid Regulatory and Market Hurdles
UK Intensifies Arctic Security Engagement as Trump’s Greenland Rhetoric Fuels Allied Concern
Meghan Markle Could Return to the UK for the First Time in Nearly Four Years If Security Is Secured
Meghan Markle Likely to Return to UK Only if Harry Secures Official Security Cover
UAE Restricts Funding for Emiratis to Study in UK Amid Fears Over Muslim Brotherhood Influence
EU Seeks ‘Farage Clause’ in Brexit Reset Talks to Safeguard Long-Term Agreement Stability
Starmer’s Push to Rally Support for Action Against Elon Musk’s X Faces Setback as Canada Shuns Ban
UK Free School Meals Expansion Faces Political and Budgetary Delays
EU Seeks ‘Farage Clause’ in Brexit Reset Talks With Britain
Germany Hit by Major Airport Strikes Disrupting European Travel
Prince Harry Seeks King Charles’ Support to Open Invictus Games on UK Return
Washington Holds Back as Britain and France Signal Willingness to Deploy Troops in Postwar Ukraine
Elon Musk Accuses UK Government of Suppressing Free Speech as X Faces Potential Ban Over AI-Generated Content
Russia Deploys Hypersonic Missile in Strike on Ukraine
OpenAI and SoftBank Commit One Billion Dollars to Energy and Data Centre Supplier
UK Prime Minister Starmer Reaffirms Support for Danish Sovereignty Over Greenland Amid U.S. Pressure
UK Support Bolsters U.S. Seizure of Russian-Flagged Tanker Marinera in Atlantic Strike on Sanctions Evasion
The Claim That Maduro’s Capture and Trial Violate International Law Is Either Legally Illiterate—or Deliberately Deceptive
UK Data Watchdog Probes Elon Musk’s X Over AI-Generated Grok Images Amid Surge in Non-Consensual Outputs
Prince Harry to Return to UK for Court Hearing Without Plans to Meet King Charles III
UK Confirms Support for US Seizure of Russian-Flagged Oil Tanker in North Atlantic
Béla Tarr, Visionary Hungarian Filmmaker, Dies at Seventy After Long Illness
UK and France Pledge Military Hubs Across Ukraine in Post-Ceasefire Security Plan
Prince Harry Poised to Regain UK Security Cover, Clearing Way for Family Visits
UK Junk Food Advertising Ban Faces Major Loophole Allowing Brand-Only Promotions
×