Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent assessment he has made of the potential merits of introducing tax credits for (a) print and (b) online subscriptions to (i) newspapers and (ii) magazines.

The Government recognises the important role that media organisations, including newspapers and magazines, play at a national and local level in our democracy and the life of our communities.

In light of this, the Cabinet Office has spent up to £35m from April to June to place Covid-19 public health messages in local and national newspapers. This advertising partnership with UK media titles has been supporting the familiar voices of over 600 national, regional and local titles across England, Wales, Scotland and Northern Ireland.

In addition, as announced at Budget on 11 March, the Government legislated to apply a permanent zero rate of VAT to supplies of e-publications from 1 December 2020 to support literacy and reading in all its forms. Following the outbreak of Covid-19, the Government then legislated to bring forward the implementation date to 1 May 2020, helping to reduce the cost of access to online publications while many people are confined to their homes and schools are closed.

There are a wide range of factors to consider before introducing a new income tax relief. The Government is committed to managing the public finances in a disciplined and responsible way, targeting support where it is most needed. New tax reliefs are difficult to target in this way. They are of greatest benefit to those paying higher rates of tax and do not benefit low-income individuals whose income is already below the personal allowance.