The Audit Commission said today it looks forward to discussing the scope of the review of council funding for local newspapers announced by the Culture Secretary, Ben Bradshaw.
The government yesterday unveiled its white paper 'Digital Britain' which raised concerns about the growth of councils' own newspapers. The white paper said it might be 'against the public interest' if they attracted advertising revenue away from local papers in commercial ownership.
Mr Bradshaw said: 'We are asking the Audit Commission to examine the practice of local authorities spending quite a lot of council tax payers' money putting out free newspapers and, in the process, swallowing up a lot of local advertising that might otherwise go to local papers.'
A review by the Office of Fair Trading had already noted 'the adverse impact on local newspapers of the increasing role of local authorities in taking paid advertising to support local authority information sheets.' It was worried that, coupled with other pressures, this may make local commercial media unviable.
Audit Commission Chief Executive Steve Bundred said he would be discussing the breadth, timing and financing of the proposed piece of work with the Department of Culture Media and Sport. 'The Audit Commission exists to assess value for money for the public purse, and enjoys the trust of ministers, councils and consumers in providing fair, objective assessments. Local news and council information are both valuable resources, and if we are invited to take on this piece of work we will find out how they can co-exist in the fast-changing world of new media.'
The Digital Britain report says: 'While local authority information sheets can serve a useful purpose for local residents and businesses, they will inevitably not be as rigorous in holding local institutions to account as independent local media...the Government is therefore inviting the Audit Commission to undertake a specific inquiry into the prevalence of this practice, its impact and to make recommendations on best practice and if restraints should be placed on local authority activity in this field.'
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