Question to the Department for Digital, Culture, Media & Sport:

To ask the Secretary of State for Digital, Culture, Media and Sport, what recent discussions she has had with representatives of (a) local and (b) regional news outlets on the impact of the economic situation on (i) those organisations and (ii) their employees.

The Government understands that people across the UK are worried about the rising cost of living and are seeing their disposable incomes decrease as they spend more on the essentials. In May, we announced over £15 billion of additional cost of living support, targeted at those with the greatest need. As a result, millions of vulnerable households will receive at least £1,200 of support this financial year, with the vast majority of households receiving at least £550. This package builds on the over £22 billion previously announced, meaning government support for the cost of living now totals over £37 billion this year, equivalent to 1.5% of GDP.

With regard to energy costs, while the majority of UK non-domestic customers are on fixed price energy deals, some are not. Businesses did not benefit from the Ofgem price cap and there was a risk that some would fall through the gap, unable to fix their energy price and unable to access the kind of support we are making available to households. A new 6-month scheme for businesses and other non-domestic energy users (including charities and public sector organisations like schools) will be offered support as is being provided for consumers. After this initial 6 month scheme, the government will provide ongoing focused support for vulnerable industries. There will be a review in 3 months’ time to consider where this should be targeted to make sure those most in need get support. Further details will be published shortly.

In addition to timely, temporary and targeted support, the government is also committed to tackling the root cause of the cost of living challenge – high inflation. Through independent monetary policy, responsible management of the public finances and supply-side reforms, we will combat high inflation and reduce it over time.

More specifically in relation to local and regional news outlets, the government is committed to supporting local newspapers as vital pillars of our communities. We are in regular contact with news organisations to understand the financial pressures they face and we have taken action to support them. Our plans for a pro-competition regime for digital markets will, among many other things, help to rebalance the relationship between news publishers and online platforms. We have also delivered a £2 million pilot innovation fund, zero rated VAT on e-newspapers, extended business rates relief on local newspaper office space, and published the Online Media Literacy Strategy. In addition, the BBC Charter Mid Term Review will evaluate how the BBC and Ofcom assess the market impact and public value of the BBC in an evolving marketplace and how that relates to the wider UK media ecology, including with regard to the local news sector. We will continue to consider all possible options in the interest of promoting and sustaining the sector.