Ministers consult on tax break for local papers

The Government is inviting views on the introduction of a business rates relief to help newspapers adapt to new technology and a changing market.

The consultation was first announced in March, when the Chancellor of the Exchequer, George Osborne, called newspapers “a vital part of a healthy democracy” and conceded they had had a “tough time in recent years”.

Ashley Highfield, chief executive of Johnston Press, which publishes The Yorkshire Post, said: “We are delighted ministers have recognised the crucial role local newspapers play in their communities across the country and are prepared to look at ways to further support the industry.

“The consultation on business rates relief is an important recognition of one of the challenges facing an evolving industry.”

Local newspaper circulation has been in decline for some years as the industry has struggled to compete with online news sources and a decline in advertising revenue caused by both the economic downturn and the rise in online property and car-sales portals, such as Rightmove and Autotrader, which have deprived local papers of an important source of income.

As a result, some newspapers have ceased production, while some others have started publishing weekly, rather than daily. Staff cuts and changes in working practices have also become the norm across the industry.

Mr Highfield, who was previously Director of New Media and Technology at the BBC, has also been appointed to a board of eight specially-selected Government advisers tasked with shaping the future of the organisation as it negotiates the renewal of its Royal Charter in 2017.