View all newsletters
Sign up for our free email newsletters

Fighting for quality news media in the digital age.

  1. News
September 16, 2009

Council’s newspaper costs may climb by £400,000

By Helen Potter

A budget report by Tower Hamlet’s Borough Council has revealed that an extra £400,000 of council tax-payer’s money may be needed to fund its controversial local authority-run newspaper.

The East London council claims East End Life costs taxpayers just £118,000 a year with the remainder of its £1.6m annual budget coming from advertising.

But a budget report shown to councillors last week revealed the free paper had suffered a £396,000 shortfall in advertising revenue because of the recession.

Deputy leader of the Labour-run council, Joshua Peck, said the mid-year report shown to councillors was a “worst-case scenario” for the current financial year.

Conservative councillor Tim Archer claimed the shortfall would need to be offset by additional funds provided by council tax-payers.

Archer told the East London Advertiser: “People in Tower Hamlets will have to pay nearly another £500,000, this is money which could be spent on important services or projects.”

Earlier this year Archer put forward an alternative budget calling for the council to scrap its “propaganda paper” and save £670,000 annually by instead advertising its vacancies in its local paper, the aforementioned East London Advertiser.

Content from our partners
MHP Group's 30 To Watch awards for young journalists open for entries
How PA Media is helping newspapers make the digital transition
Publishing on the open web is broken, how generative AI could help fix it

Peck said the council would look to meet any shortfall in advertising revenue by making savings from its communications budget.

Publishers of regional newspapers have been increasingly critical of local authorities that publish their own newspapers, accusing them of undermining their ability to generate advertising revenue in local markets.

So concerned have newspaper publishers become that former communications minister Lord Carter asked the Audit Commission to investigate the effect of council-run papers on local titles as part of his Digital Britain white paper earlier in the summer.

Email pged@pressgazette.co.uk to point out mistakes, provide story tips or send in a letter for publication on our "Letters Page" blog

Select and enter your email address Weekly insight into the big strategic issues affecting the future of the news industry. Essential reading for media leaders every Thursday. Your morning brew of news about the world of news from Press Gazette and elsewhere in the media. Sent at around 10am UK time. Our weekly does of strategic insight about the future of news media aimed at US readers. A fortnightly update from the front-line of news and advertising. Aimed at marketers and those involved in the advertising industry.
  • Business owner/co-owner
  • CEO
  • COO
  • CFO
  • CTO
  • Chairperson
  • Non-Exec Director
  • Other C-Suite
  • Managing Director
  • President/Partner
  • Senior Executive/SVP or Corporate VP or equivalent
  • Director or equivalent
  • Group or Senior Manager
  • Head of Department/Function
  • Manager
  • Non-manager
  • Retired
  • Other
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
Thank you

Thanks for subscribing.

Websites in our network