London Daily

Focus on the big picture.
Sunday, Aug 23, 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 Opens National Artificial Intelligence Safety Testing Facility
UK Government Finalizes Plans to Bring Remaining Regional Rail Services Into Public Ownership
Environment Agency Imposes Record Penalties on Water Companies Over Illegal Sewage Discharges
Great British Energy Announces Offshore Wind Partnership in North Sea
UK Government Tightens Planning Rules to Accelerate Housing Development
NHS Launches Digital Overhaul to Cut Elective Care Waiting Lists
Bank of England Signals Interest Rates May Stay Higher for Longer as Inflation Pressures Persist
The rise and fall of Hui Ka Yan, China’s richest man
Woke: Britain Considers Plain Packaging for Cigars as Specialist Shops Warn of Industry Collapse
Britain's Public-Service Productivity Remains Below 2019 as £80 Billion Output Gap Fuels WFH Debate
Mandelson Epstein Case in Jeopardy as U.S. Files Stay Out of Reach
Prince Harry and Six Others Ordered to Pay £9.5 Million After High Court Defeat
Bank of England Holds Interest Rate at 3.75% as Inflation and Energy Risks Persist
UK AI Security Tests Find Autonomous Agent Attempting Malicious Code Injection
UK Economy Grows 0.4% in Second Quarter Amid Global Pressures
UK Joins European Allies in Condemning Israeli Settlement Plans in West Bank E1 Area
Multiple People Killed in A66 Collision Near Middlesbrough Involving Police Vehicle
UK Government Holds First National Day for Victims and Survivors of Terrorism
UK Met Office Warns of Severe Autumn Storms as Strong El Niño Follows Historic Drought
Petrol Bombs Set Luxury Cars Alight Outside Birmingham Wedding as Police Hunt Three Men
Bitcoin Surges Toward $80,000 as Short Squeeze and ETF Inflows Ignite Crypto Rally
Prince Harry and Co-Claimants Ordered to Pay £9.5 Million Toward Daily Mail Publisher’s Legal Costs
Prince Harry and Meghan Markle Reportedly Plan Return to Britain With Their Children
UK Court Ruling Threatens Deportation Plans for Potential Trafficking Victims to Albania
Kemi Badenoch Presses UK Government for Decisions on Rosebank and Jackdaw Oil Fields
UK Foreign Affairs Committee Chair Calls for Ban on Goods from Occupied West Bank
Andy Burnham Government to Place Civil Servants Directly in English Mayoral Offices
Met Office Warns Major El Niño Could Bring Stormier, Wetter Autumn to UK
UK Economy Gains Unexpected Momentum Ahead of Andy Burnham Government’s First Budget
Twenty-Nine US States Take Meta to Trial Over Alleged Child Addiction on Instagram and Facebook
Former Scottish National Party Executive Peter Murrell Jailed for Five Years Over £400,000 Embezzlement
Moderna and Merck's Personalized Cancer Vaccine Succeeds in Historic Late-Stage Melanoma Trial
Prince Harry and Meghan to Move Back to Britain With Their Children
England and Wales Have Fewer Than 1,800 Prison Places Left for Men
Royal Navy to Accelerate DragonFire Laser Deployment Against Growing Drone Threat
Northern Ireland Approves Five Hundred Million Pound Belfast Harbour Expansion
Great British Railways Takes Full Control of Avanti West Coast as Rail Nationalisation Reaches Final Stage
UK AI Safety Institute Calls for Mandatory Security Audits of Advanced AI Models
Scotland Secures Three Billion Pounds for Floating Offshore Wind Hub in Aberdeen
Government Overrides Local Councils to Approve Green Belt Housing Across Southern England
UK and EU Move Toward Mutual Recognition of Food Standards to Ease Cross-Channel Trade
Government Plans Multibillion-Pound Private Healthcare Expansion to Cut NHS Surgical Backlogs
Bank of England Signals Faster Rate Cuts as Inflation Falls Below the Two Percent Target
Suspected People Smuggler Arrested After Investigation Identified Him
Children's Doctors Warn That Vaping Can Lead Young People to Smoking
Hundreds of Thousands of Students Receive GCSE and Vocational Results Across England, Wales and Northern Ireland
Here Is What Can Never Happen in Your Country: Taiwan Is Giving Money to All Its People Because It Collected Too Much Tax
UK Inflation Rises to 2.9% as Energy Bills Jump
UK Issues New Conduct Guide for Asylum Seekers on Consent and Respect
Moderna Shares Surge After Positive Personalized Skin Cancer Trial Results
×