December 12, 2016

In order to understand how a business rates relief could help local newspapers, a joint consultation, led by the Department for Culture, Media and Sport and the Department for Communities and Local Government (DCLG), was launched in July 2015.

The consultation sought to identify:

• the nature of the challenges facing local newspapers;
• the type of property occupied by local newspapers; and
• the eligibility preferences of a wide range of stakeholders who would be affected by the granting of a discount.

Responses to the consultation indicated that a relief on business rates bills would generally be welcomed by the industry and help publishers occupy property in their local areas. As a result, a discount was announced at the March 2016 Budget, on the following terms:

“The government will introduce a £1,500 business rates discount for office space occupied by local newspapers in England, up to a maximum of one discount per local newspaper title and per hereditament, and up to state aid limits, for 2 years from 1 April 2017”.

When the consultation was launched, the Government indicated that the purpose of any relief would be to help local newspaper publishers as they adapt to industry changes and put themselves on a long-term sustainable financial footing. That is why it said that any relief would be on a temporary basis.

Furthermore, the consultation document stated that any relief would likely be targeted at what most people would understand to be a traditional local newspaper. Local councils that publish a local newspaper will not be eligible, nor will online-only publications and local magazines.

The discount will be delivered through local authority local discount powers in the same way as the Government has supported shops, pubs and cafes on high streets. Central government will fully reimburse councils for any relief they grant to eligible properties. To read the Government’s response in full, click here.