The PPA contributed to the review, which backed many of our proposals to support published media in the digital age.

The Government’s response to the nine recommendations are as follows:

1. New codes of conduct to rebalance the relationship between platforms and publishers: The government agrees that codes of conduct that formalise the relationships between news publishers and online platforms may help to rebalance that relationship. As such, the government is working with interested parties to further assess this recommendation over the coming months. This will form part of a wider programme of work — which includes the government’s work in response to the Digital Competition Experts Panel’s recommendations in Unlocking Digital Competition and, in due course, to the Competition and Markets Authority’s (CMA) market study into online platforms and digital advertising — that seeks to set out the government’s approach to competition policy in digital platform markets.
2. The CMA to investigate the workings of the online advertising market to ensure fair competition: The government welcomed the CMA’s decision to launch a market study into online platforms and digital advertising. The CMA published their interim report in December 2019 and the government notes the range of potential interventions being explored; for example, measures to promote transparency and enhance data sharing. We will consider the findings of the final report (which is due for publication in July 2020) and take action if needed.
3. Online platforms’ efforts to improve their users’ news experience should be placed under regulatory supervision: The government agrees platforms should take steps to help users identify the reliability and trustworthiness of news sources. Platforms’ efforts to help users identify the reliability and trustworthiness of news sources may continue and expand as a result of the proposals in the Online Harms White Paper.
4. Developing a media literacy strategy alongside Ofcom, industry and stakeholders: The government accepts this recommendation. The Online Harms White Paper published in 2019 set out the government’s intention to develop a new online media literacy strategy. We plan to publish the strategy by the summer of 2020.
5. Ofcom should explore the market impact of BBC News: The government welcomed Ofcom’s decision to conduct a review into the BBC’s news output. The review, which was published in October 2019, looked specifically at the BBC’s links to third party news sites, and Ofcom have indicated that they may look at this further.
6. The government should launch a new fund focused on innovations aimed at improving the supply of public-interest news, to be run by an independent body:The government has worked with Nesta to develop a pilot innovation fund which launched in October 2019. The government will evaluate this pilot to inform decisions on the full innovation fund ahead of the next Spending Review.
7. The government should introduce new tax reliefs aimed at encouraging (i) payments for online news content and (ii) the provision of local and investigative journalism: The government has already committed to extending the existing business rates relief for an additional 5 years, until 31 March 2025. The Chancellor will consider the case for a range of potential tax incentives to support the news publishing industry this year.
8. The Local Democracy Reporting Service (LDRS) should be reviewed and expanded: The government is supportive of this recommendation. The government strongly encourages the BBC to ensure a robust evaluation of the LDRS and supports the BBC’s plans to grow the scheme.
9. Establish an Institute for Public Interest News: The government will not be taking this recommendation forward. While it acknowledges the value, the proposed institute is intended to provide, it is not for government to lead on this issue.

Secretary of State for Digital, Culture, Media and Sport, Baroness Nicky Morgan commented: “[Published media] plays an invaluable role in the fabric of our society and are uniquely placed to undertake the investigative journalism and scrutiny of public institutions, including local councils and our courts. This is vital to help ensure a healthy democracy both nationally and at a local level.”

She added: “We know that the digital age poses significant challenges… [we] are committed to supporting the industry in its transition to a more sustainable footing.”

Dame Francis Cairncross commented: “The Government’s response underlines the important role high-quality journalism must play in our national and local democracy.”

“I am particularly pleased to see the establishment of the innovation fund and it will be important to build on this to ensure it is as effective as possible going forward.”

“I also welcome the Government’s support for the need to formalise relationships between news publishers and online platforms as part of wider work on digital regulation, and urge the government to ensure that the press sector remains very clearly in focus.”

PPA Managing Director, Owen Meredith said: “We welcomed the launch of the Cairncross Review and support many of the recommendations and conclusions it reached. The Government has taken some early steps to act on those recommendations and this full response provides a clear commitment to further action, which is welcome. In taking forward the Review, government needs to ensure its interlocking and related work streams reach joined up conclusions.

“The PPA is engaged with the ongoing work of the CMA in its market study of digital platforms and online advertising and it is encouraging to see the government place importance on this. We stand ready to work with government, and across the industry, to help develop a landscape that supports quality, trusted journalism in all its forms and ensures a sustainable future for published media.

Meredith added “It is pleasing to hear the Government commit to ‘a range of potential tax incentives to support the news publishing industry’ and we hope the Chancellor will take the opportunity to act in his Budget next month and begin this work by extending the VAT zero-rate to digital publications; as backed by the Review.”