In a debate held last week in the House of Lords, Baroness Kidron (Con), outlined the challenges facing the news media industry, questioning why the Government hadn't done more to help the sector following the Cairncross review released last year.

Kidron highlighted the threat tech giants pose to high-quality journalism, stating that "new distribution models for high-quality journalism have eroded revenue."

She continued: "This is a sector being hollowed out before our eyes, with reduced resources to hold institutions to account, as the platform model drives down quality in pursuit of profit."

“Sadly, the Government response does not comprehensively answer Dame Frances’ nine recommendations nor does it fully address the two intrinsically linked systemic points that she highlights; notably the impact of platforms as mediators on the quality of the news and the asymmetry of power between platforms and publishers when it comes to revenue."

Talking about the social media platforms, she said that the business model “enables disinformation to masquerade as news. It’s not without consequences.” She called for the Minister to explain what the Government was doing to create codes governing the relationship between news producers and the platforms.  

Baroness Bonham-Carter of Yarnbury, Lib Dem spokesperson for Culture, Media and Sport, said the party welcomed that "the Government are considering removing VAT on digital publications."

Lord Wakeham (Con) spoke of the "grim reality" of local and regional news media laid out by the Cairncross Review, and called for "support for the industry as it consolidates" with a thorough review and reform of the media competition and ownership regime.

Lord Black of Brentwood (Con), acknowledged that the Cairncross Review was the "step in the right direction" but raised concerns surrounding time and clarity.

He said: "Cairncross was established in 2018, reported in early 2019 and the Government have only just responded at the start of 2020. Most of the recommendations have still to take practical effect. The grim truth is that help is needed now if many local newspapers are to ​survive while they bridge the gap between print legacy and digital future."

He added: "The Cairncross recommendations are just part of a plethora of other reviews, consultations and policy documents… Too many initiatives from too many separate departments and organisations present a real risk that nothing will end up happening or that it will simply take too long." 

Responding on behalf of the Government, Culture Secretary Baroness Morgan said: "Discussions have been held with representatives of the news industry, including: the News Media Association, the Society of Editors and the National Union of Journalists; a number of online platforms, including Google, Facebook and Twitter; the BBC; and the ​regulators, including the CMA, Ofcom, IPSO, the Charity Commission and many more."

She continued: "The Government have already started to take forward some of the other interventions proposed in the review. We have worked with Nesta to deliver a £2 million pilot innovation fund, which launched in October… The Government are committed to taking forward work on the recommendation to create codes of conduct to rebalance and redefine the relationships between news publishers and online platforms, in alignment with wider work on digital regulation."