Cost of council newspapers "not unreasonable" says Audit Commission

The money being spent by councils on their own newspapers and other periodicals is “not unreasonable”, but local authorities should consider whether this expenditure provides good value, the chief executive of the Audit Commission has claimed.

In a letter to Stephen Timms, Minister for Digital Britain, Steve Bundred said: “Few council publications are published sufficiently frequently to be viable media for most local advertising.”

The Audit Commission chief added that communication is important to inform the public of the services councils provide and the functions they perform. It is also essential to explain to voters and council taxpayers the reasons for particular policies and priorities.

The provision of information improved accountability to taxpayers for spending, Bundred suggested, adding that councils should have a duty to publish annual reports.

However, he admitted that the Commission’s remit did not enable it to assess competition in the local media market or the impact of council activities on commercial entities.

The key findings of the Audit Commission’s report were:
•    Over 90% of local authorities publish a periodical, but almost all of these are published once a month or less frequently
•    47% of council periodicals contain private sector advertising, including those with very limited or occasional advertising
•    Only 5% of council periodicals contained statutory notices and only 6% contained recruitment advertising
•    One third of 1% of council spending (£257m) in 2008/9 was recorded as being on communication with the public
•    Claims about the value achieved by communication spending are not well supported by evidence
•    Councils should review their editorial policy to ensure that it is politically neutral and publicly defensible
•    The current accountability framework provides adequate safeguards against misuse of public money for political ends.

The Audit Commission’s findings are unlikely to pacify local newspaper groups and many MPs.

In a recent Westminster Hall debate, MPs from all parties urged the government to safeguard local newspapers against “unfair competition” from council-funded local papers.

Much of the councils’ expenditure amounted to “little more than propaganda masquerading as newspapers,” the MP for Suttton & Cheam, Paul Burstow, said. He added that the narrow remit of the Audit Commission’s investigation meant that the Office of Fair trading should be called in to investigate.