Today, newspaper publishers urged BBC not to expand its coverage of local news in fear that it would threaten independent journalism.
British national and regional publisher, the News Media Association, accused the company of trying to be a monolithic news provider.
Owen Meredith, the chief executive of the organisation, warned about the “direct threat to strength and plurality in news” posed by its own coverage. Meredith also proposed to establish more than 100 digital reporters to cover local news.
Meredith stated that the BBC made an ‘uninformed prediction about the demise commercially viable local media’ last March in its Across the UK report.
It comes amid the debate in recent days over the licence fee after Ministers said the cost will be frozen at £159 for the next two years then rise to about £175 by 2027.
The BBC says it spends 10 per cent of the annual £3.5billion licence fee income on ‘online’ services, although does not give a specific breakdown for online news.
MailOnline reached out to the BBC today in an attempt to find this number. Other online services provided by BBC include Bitesize, CBeebies, Food, Sport, and Weather.
It also spends up to £8million a year on the Local Democracy Reporting service which pays for 165 journalists to produce content used by local media providers.
Owen Meredith is the chief executive officer of News Media Association. He warned that the company’s local news coverage could pose a ‘direct threat’ to news strength and pluralism.
The BBC says it spends 10 per cent of the annual £3.5billion licence fee income on ‘online’ services, although does not give a specific breakdown for online news
These graphic from the Across the UK Report show the BBC today (left), and 2027/28 in the right.
Meredith, on behalf of the NMA Board and its members wrote an open letter to the BBC Board. Meredith stated: ‘The BBC directly threatens the sustainability of independent journalism in local communities with plans for being ever more local – as originally set out in Across the UK and developed since then.
“The BBC’s News App beta launch is a remarkable move in local news, and it threatens the plurality and strength of UK news.
‘In ‘Across the UK’ the BBC suggest the pandemic has ‘accelerated the decline in local media business models.’
‘Although the economic challenges facing local media have been well documented, it is clear that this conclusion is wrong. It can be demonstrated by the rapidly expanding audience and the investment made in recruiting journalists.’
Mr Meredith said that the BBC’s ‘uninformed prediction of the demise of commercially viable local news media in fact risks precipitating decline’.
He added: While the BBC wants to achieve its Charter-requested purpose to provide impartial news and information, it should also include “content that is not commonly available from other United Kingdom news sources.”
‘To minimize any impact on other media outlets, the BBC should consider how their services will affect them. The plans set out by the BBC as part of the Licence Fee negotiations with government fail that test.’
The NMA is concerned that the ‘Across The UK’ proposals aim to create more than 100 digital reporter roles to cover news in ‘some of the UK’s most under-served communities’.
This would be separate from the Local Democracy Reporting scheme where local journalists funded by the BBC are sent to regional newsrooms.
Mr Meredith continued: The BBC’s proposal, paid for by taxpayers via the Licence Fee is a clear threat to independent media outlets’ economic sustainability, undermining diversity, choice, and media plurality.
‘In the BBC’s centenary year, as it searches for relevance in a digital world, it is unthinkable that it should seek – intentionally or otherwise – to undermine the viability of commercial news providers and the many diverse community voices these publishers represent, leaving the BBC a monolithic provider of news in the UK.
“We request the BBC Board to withdraw the UK-specific news plans in Across the UK” and work with the independent, commercial news sector to establish boundaries for the BBC’s online reporting. We want to maintain access to good journalism from a wide range of sources as a foundation of the UK democracy.
MailOnline was informed today by a spokesperson for the BBC that “The BBC has been committed to impartial local journalism online and on radio.” Many people have trusted our services.
“There are no signs that the BBC is competing with other providers. There’s also no reason to believe it will. International comparisons and industry analysis show that it’s not the BBC who is the greatest threat to local commercial journalism.
‘We spend up to £8million a year supporting the local commercial news sector through our Local Democracy Reporting service. We fund 165 UK journalists who create stories that are used daily by various media sources.
“We provide this support because audiences value the ability to choose local news.”
2018: Dame Frances Cairncross was an ex-senior editor of The Economist and had to make recommendations on how to ensure the future viability of journalism in light both cuts to staffing levels and declining circulation.
BBC Broadcasting House, London. Picture taken Monday during debate over the licensing fee
BBC director-general Tim Davie said yesterday that cuts to BBC programmes are now ‘inevitable’ because of the Government’s licence fee freeze
The 2019 report by Dame Frances’ panel of media specialists recommended that the Local Democracy programme be ‘expanded, managed or shared’ by an external organisation.
Initially, 150 journalists were hired to write about council activities. In an effort to further scrutinize the matter, more than 50,000 stories were filed in the first 12 months.
Although journalists are typically hosted at a newsroom of large media publishers or broadcasters, their articles are shared with 850 other outlets for use in a wire-style service.
Lord Hall, then-director-general of the BBC, stated that any expansion would include adding reporters to report on court proceedings and meetings for NHS Trust.
Frances recommended that the newly founded Institute for Public Interest News be given control or share in the management of Local Democracy.
However, ministers opposed the proposal to establish the institute. Prime Minister Boris Johnson said that he would not be implementing the suggestion.
The NMA statement comes in the week that the BBC’s director-general Tim Davie said cuts to the corporation’s programmes are now ‘inevitable’ because of the licence fee freeze.
Mr Davie yesterday refused to rule out axing BBC Two, BBC Four or Radio 5 Live as a result of the two-year price standstill on the £159 licence.
The BBC boss said ‘everything’s on the agenda’ for cuts because the freeze would lead to a £285million funding shortfall by 2027 that ‘will affect our frontline output’.
After two years the licence fee will be allowed to rise in line with inflation for the final four years of the deal, pushing up the cost to about £175 by 2027, the Government has said.
Rumours circulated that BBC Four might be shut down, along with the reduction of sports rights and expensive dramas.
Mr Davie admitted that by the final year of the new licence fee deal in 2027 the BBC would have an income of about £4.2billion, but said he was ‘disappointed’ by the settlement.
Nadine Dorries, Culture Secretary to the House of Commons announced Monday’s settlement. She told MPs that the corporation must ‘address questions around impartiality or group think.
Additionally, she said it was time to ask the really difficult questions regarding the BBC’s long-term funding structure. She tweeted Sunday afternoon that the settlement of the licence fees would be her last.