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<p>The Government is committed to supporting local and regional newspapers as vital
pillars of communities and local democracy. They play an essential role in holding
power to account, keeping the public informed of local issues and providing reliable,
high-quality information.</p><p>However, as the independent Cairncross Review into
the future of journalism identified, society is increasingly moving online and local
news publishers are facing significant challenges in transitioning to sustainable
digital business models.</p><p>The Government supported the majority of Cairncross
recommendations and has taken them forward through a range of fiscal and regulatory
interventions. With regard to financial support, this has included the delivery of
the £2 million Future News Fund; the zero rating of VAT on e-newspapers; and the extension
of a 2017 business rates relief on local newspaper office space until 2025. The BBC
also supports the sector, through the £8m it spends each year on the Local News Partnership,
including the Local Democracy Reporting Scheme. The Government was pleased to see
the BBC conduct a thorough review of this initiative in 2020, as recommended by the
Cairncross Review. As set out in our response to the Review, we would support any
efforts by the BBC to grow the scheme.</p>
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