The UK’s local news landscape faces a crisis that demands a creative solution. The Local News Commission's new comprehensive report, written on its behalf by the Public Interest News Foundation (PINF), came up with some well-thought-through recommendations for regenerating local journalism - and a figure needed to make it happen.
Quantifying the challenge
The current state of local news is bleak. Over four million people now inhabit "news deserts" - communities fundamentally disconnected from local reporting. This is not merely an industrial decline, but a potential structural threat to democratic engagement.
The Big Tech does not help. Initiatives that once sought to stimulate local news have been wiped out, and social media platforms are less keen on fact-checking and moderation than they once were.
According to the report, the only way forward is to create a Local News Stimulation Fund that would distribute £15m a year for the next 10 years to local news providers. The objective is to create or boost sources of high-quality, local news, lessen dependency on social media for information, and stimulate democracy and civic engagement.
Jonathan Heawood, executive director of PINF, said: "President Donald Trump says London is unrecognisable, having opened its doors "to jihad." Elon Musk thinks he knows what to do about justice in Oldham. We know that’s not the real story - and so do local communities across the UK, who have organised and raised awareness for decades to defend the truth.
"But in an era of misinformation - the kind that crafts deepfakes, manipulates networks, and starts riots - things are changing. The truthtellers are fast disappearing. UK news shouldn’t be an oligarch’s plaything. With a vibrant local news ecosystem, it doesn’t need to be. Publishers can create jobs again. Outlets can build sustainable, innovative business models. And local journalists can do what they do best - hold the powerful to account."
Strategic recommendations
1. Local news stimulation fund
The cornerstone recommendation is a £150 million investment from the Dormant Assets Scheme. This strategic fund represents a calculated intervention designed to support research and development of innovative local news models. The fund will provide critical resources for experimental journalism and ensure comprehensive coverage across all 382 Local Authority Districts. Each local news provider would receive an average budget of £574,485 annually, creating a sustainable foundation for local reporting.
2. Tax-efficient ecosystem
The commission proposes a bespoke legal status for local news providers that would create sophisticated tax incentives. This innovative approach would strategically redirect financial flows towards local journalism, enabling donors, advertisers, and subscribers to contribute to media sustainability. The mechanism would generate financial support without compromising journalistic independence, potentially unlocking new revenue streams for local news organisations.
3. Workforce development strategy
Recognising the critical need for transformation, the commission advocates for a comprehensive workforce strategy. This approach will focus on diversifying talent pipelines, developing multi-disciplinary skills, and addressing economic barriers in journalism education. The strategy acknowledges that modern local journalism requires a broad skill set, from digital technology expertise to deep community engagement capabilities.
4. Big tech settlement
Leveraging the Digital Markets, Competition and Consumers Act 2024, the strategy seeks to fundamentally restructure the relationship between news providers and technology platforms. The proposed approach would ensure equitable digital data sharing, create new negotiation frameworks, and potentially introduce 'must carry' provisions for news content. This recommendation aims to rebalance the digital media ecosystem, ensuring local news providers can compete effectively in the digital landscape.
5. Local government collaboration
The proposed reforms include a reimagining of the local government's role in media ecosystems. The strategy suggests restructuring public notice systems, allocating communications budgets directly to local news providers, and implementing nuanced social metrics alongside traditional commercial performance indicators. This approach would create a more dynamic and responsive local information infrastructure.
6. BBC partnership model
The commission finally recommends a reimagined relationship between the BBC and local news providers. This model would focus on resource sharing, supporting independent local journalism, and developing capabilities to aggregate significant local narratives. The approach seeks to transform the BBC from a potential competitor to a strategic partner in local media ecosystem regeneration.
Market potential and investment projection
The Commission's analysis suggests a compelling investment thesis:
- Current local news market revenue stands at £17.7 million
- Projected annual revenue by 2035 could reach £284.8 million
- Anticipated market growth is estimated at 30% annually
- The projected return on investment is calculated at 5:1
The fundamental insight
Local journalism is not a luxury, but a fundamental mechanism for community cohesion, democratic participation, and social resilience.
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