The UK Government is being urged to create a £50 million annual fund to support local news, amid warnings that the industry has been decimated by declining revenues and reduced coverage.
A report from Demos, a cross-party think tank, highlights the urgent need for investment in high-quality journalism, warning that a lack of reliable local news threatens public trust and democratic engagement.
The Demos report argues that the UK’s local news infrastructure is in crisis, with many areas becoming “news deserts”—regions lacking access to reliable, high-quality local journalism.
To combat this, the report recommends that the £50 million fund be financed through a combination of government support, philanthropic contributions, and Big Tech funding.
Demos suggests that a portion of the TV licence fee could also be allocated to fund independent local journalism, ensuring that news coverage remains robust and accessible to communities across the UK.
Alongside financial support for local journalism, the think tank calls for the Government to take further steps to safeguard information security and restore public confidence in news media.
This includes enhancing protections within the Online Safety Act and encouraging MPs and government offices to use a single, trusted platform for public communication.
The report also urges policymakers to ensure that online platforms give due prominence to public service content, similar to existing rules for television broadcasters.
For this to be effective, a shared definition of ‘public interest news’ is needed, ensuring that funding prioritises community-focused, high-quality journalism rather than clickbait or low-quality content.
Elizabeth Seger, Director of Digital Policy at Demos, warns that the UK faces growing risks from declining trust in politicians, increasing foreign influence in politics, and weakening democratic resilience.
She emphasises that while the UK benefits from high public trust in electoral processes and strong parliamentary representation, urgent action is required to strengthen the country’s information environment and protect democratic discourse.
The report warns that unless the Government doubles down on its efforts, the UK may struggle to withstand global trends of democratic backsliding and declining public confidence in institutions.
The Demos think tank argues that revitalising local news is not just about journalism—it is about democracy itself. Without strong local reporting, communities lack access to critical information about government decisions, public services, and accountability measures.
The proposed £50 million fund would help local news outlets build sustainable business models, ensuring that communities continue to receive high-quality, fact-based reporting that serves the public interest.
With news deserts expanding, trust in media at risk, and political engagement declining, the call for immediate action is growing louder. The Government now faces increasing pressure to step in and protect the future of local journalism in the UK.
