London Daily

Focus on the big picture.
Wednesday, Jan 07, 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
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
Maduro’s Arrest Without The Hague Tests International Law—and Trump’s Willingness to Break It
German Intelligence Secretly Intercepted Obama’s Air Force One Communications
The U.S. State Department’s account in Persian: “President Trump is a man of action. If you didn’t know it until now, now you do—do not play games with President Trump.”
Fake Mainstream Media Double Standard: Elon Musk Versus Mamdani
HSBC Leads 2026 Mortgage Rate Cuts as UK Lending Costs Ease
US Joint Chiefs Chairman Outlines How Operation Absolute Resolve Was Carried Out in Venezuela
Starmer Welcomes End of Maduro Era While Stressing International Law and UK Non-Involvement
Korean Beauty Turns Viral Skincare Into a Global Export Engine
UK Confirms Non-Involvement in U.S. Military Action Against Venezuela
UK Terror Watchdog Calls for Australian-Style Social Media Ban to Protect Teenagers
Iranian Protests Intensify as Another Revolutionary Guard Member Is Killed and Khamenei Blames the West
Delta Force Identified as Unit Behind U.S. Operation That Captured Venezuela’s President
Europe’s Luxury Sanctions Punish Russian Consumers While a Sanctions-Circumvention Industry Thrives
Berkshire’s Buffett-to-Abel Transition Tests Whether a One-Man Trust Model Can Survive as a System
Fraud in European Central Bank: Lagarde’s Hidden Pay Premium Exposes a Transparency Crisis at the European Central Bank
Trump Announces U.S. Large-Scale Strike on Venezuela, Declares President Maduro and Wife Captured
Tesla Loses EV Crown to China’s BYD After Annual Deliveries Decline in 2025
UK Manufacturing Growth Reaches 15-Month Peak as Output and Orders Improve in December
Beijing Threatened to Scrap UK–China Trade Talks After British Minister’s Taiwan Visit
Newly Released Files Reveal Tony Blair Pressured Officials Over Iraq Death Case Involving UK Soldiers
Top Stocks and Themes to Watch in 2026 as Markets Enter New Year with Fresh Momentum
No UK Curfew Ordered as Deepfake TikTok Falsely Attributes Decree to Prime Minister Starmer
Europe’s Largest Defence Groups Set to Return Nearly Five Billion Dollars to Shareholders in Twenty Twenty-Five
Abu Dhabi ‘Capital of Capital’: How Abu Dhabi Rose as a Sovereign Wealth Power
Diamonds Are Powering a New Quantum Revolution
Trump Threatens Strikes Against Iran if Nuclear Programme Is Restarted
Apple Escalates Legal Fight by Appealing £1.5 Billion UK Ruling Over App Store Fees
UK Debt Levels Sit Mid-Range Among Advanced Economies Despite Rising Pressures
UK Plans Royal Diplomacy with King Charles and Prince William to Reinvigorate Trade Talks with US
King Charles and Prince William Poised for Separate 2026 US Visits to Reinforce UK-US Trade and Diplomatic Ties
Apple Moves to Appeal UK Ruling Ordering £1.5 Billion in Customer Overcharge Damages
King Charles’s 2025 Christmas Message Tops UK Television Ratings on Christmas Day
The Battle Over the Internet Explodes: The United States Bars European Officials and Ignites a Diplomatic Crisis
Princesses Beatrice and Eugenie Join Royal Family at Sandringham Christmas Service
Fine Wine Investors Find Little Cheer in Third Year of Falls
UK Mortgage Rates Edge Lower as Bank of England Base Rate Cut Filters Through Lending Market
U.S. Supermarket Gives Customers Free Groceries for Christmas After Computer Glitch
Air India ‘Finds’ a Plane That Vanished 13 Years Ago
Caviar and Foie Gras? China Is Becoming a Luxury Food Powerhouse
Hong Kong Climbs to Second Globally in 2025 Tourism Rankings Behind Bangkok
From Sunniest Year on Record to Terror Plots and Sports Triumphs: The UK’s Defining Stories of 2025
Greta Thunberg Released on Bail After Arrest at London Pro-Palestinian Demonstration
Banksy Unveils New Winter Mural in London Amid Festive Season Excitement
×