Future of News report

The House of Lords Communications and Digital Committee has published its report including recommendations on support for local media, action on AI and legislation to tackle SLAPPs.

There is a “realistic possibility of the UK's news environment fracturing irreparably along social, regional and economic lines within the next 5–10 years,” with “grim” implications “for our society and democracy”, according to a new report by the Lords Communications and Digital Committee.

Published following its Future of News inquiry - which took evidence from key industry figures including Stephanie Peacock, Media Minister, - the report recommends legislation to support news providers strike deals with AI companies and tax breaks for those that hire local reporters, in order to prevent a growing “two-tier” media. 

On AI, the report states government should not "pursue rules that primarily benefit foreign tech firms (who seem prepared to pay vast sums on energy, computing facilities and staff—but not on data). Previous efforts to find a solution have been weak and ineffectual."

There has been speculation of the UK government's plans to introduce a text and data mining exception. Committee members said in their report "While we welcome the new Government’s desire to make progress on this issue, we caution strongly against adopting a flawed opt-out regime comparable to the version operating in the EU."

The committee also calls for anti-competitive practices by large technology companies to be investigated by the Competition and Markets Authority and says Ofcom rules on media plurality should be updated “to take account of “AI firms’ growing influence in creating news through generative AI summaries.”

The report is especially concerned about “news deserts” where “many local communities have little local reporting” and said: “Overall trust is low, news avoidance is on the rise and a growing number of people are embracing dubious online sources…The period of having informed citizens with a shared understanding of facts is not inevitable and may not endure.”

It also criticises “tepid” efforts to resolve copyright disputes and calls for updated legislation to help news providers strike mutually beneficial deals with AI firms, including transparency measures to let rightsholders check if their material has been used to train AI, alongside new sanctions for rule-breaking.

One of its key proposals is calling for support for local media: “This could include tax breaks for hiring local reporters, journalist training schemes and expanded Local Democracy Reporting Service.” The NUJ has long-called for tax breaks and financial support for innovative public interest journalism. 

Baroness Stowell, chair of the committee, said:

“The future of news matters. Accurate and well-informed news creates the shared understanding of facts which is so important to our democratic system.

“It’s important not to be too doom and gloom about the future. The news industry has survived many changes and technological developments. And the UK is not the US. We still have a healthy press sector, regulated broadcasters and an excellent range of online outlets offering more choice than ever before. But we need to be clear about the risks and realistic about the direction of travel.”

She added:

“Some traditional media outlets must work harder to keep up with the priorities and reflect the perspectives of large sections of their audience. People are voting with their feet and going elsewhere. Because of their ‘anchor’ role in the media, public service broadcasters, and the BBC in particular, need to reflect on this and focus on meeting audiences’ needs and expectations.

“They should not be tempted to explain away the challenges by focusing only on external forces. Their own choices and approaches to reporting matter. And we all lose out when we don’t understand how the world appears to each other.”

Stowell warned: “There is a danger of a two-tier news environment developing, where news enthusiasts will have access to excellent content, while a growing proportion of people rely on whatever they can pick up on social media, or switch off altogether. We are especially concerned by news deserts, where local newspapers have folded and people are left without any real scrutiny of local politicians and public bodies.”

She called for “decisive action from the government” soon, “to put the right legal and competition framework in place” and ensure, “that the news industry can adapt and thrive. A good outcome is possible – it will just look different to what we’ve had in the past. And while we can’t predict the future, one thing is very clear: if we fail to adapt quickly, the consequences will be grim.”

The NUJ has campaigned extensively on SLAPPs, highlighting their impact on journalists and journalism. The union has welcomed support for the need for swift legislative action, following the committee's report.

"The new government is failing to prioritise anti-SLAPP legislation. This is troubling and has serious potential consequences for press freedom and the future of the news industry. There has already been a public consultation. Viable legislative options and precedents exist. What is missing now is political will. Its absence reflects poorly on the new Government’s values and commitment to justice. We are not persuaded that the complexity of the issue, or the need for cross-government engagement, are a valid excuse for lengthy delays."

The government is due to respond to the committee’s recommendations to indicate which ones it will take up.

Read the NUJ's News Recovery Plan. 

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