UK commits £6m to rescue 50 local news outlets from collapse
What's the deal? The UK's Department for Science, Innovation & Technology has awarded £6 million to 50 local news providers through its new Local News Fund. Recipients range from major publishers to small hyperlocal startups, announced to coincide with Journalism Matters Week.
How it's split: Fifty individual outlets received grants of up to £125,000 for projects spanning new AI tools, audience development, and launching new titles. Seven organisations won grants of up to £275,000 to build infrastructure for the wider industry.
Who's in? Beneficiaries include small publishers such as the Leicester Gazette, Bedford Independent, and The Bristol CableDealroom has a profile for this one. Try Dealroom →, alongside larger players like NewsquestDealroom has a profile for this one. Try Dealroom →, which won £125,000 for a London Local News Lab pilot. Hyperlocal network Mill Media received £125,000 to build a reader data platform, while the Barnsley Chronicle got £39,144 to modernise its newsroom.
Why now? The grants form part of the government's Amplify: Local Media Action Plan, designed to address so-called news deserts. The money targets sustainability as audiences move online and traditional revenue collapses.
By the numbers: The government says local-news advertising revenue fell from £1.68 billion in 2011 to £330 million in 2024, while 293 local newspapers have closed since 2005. Up to 4.4 million people now live in news deserts.
What could go wrong? Demand far outstripped supply: 214 applications sought £22.5 million, more than three times the available pot. Jeremy Clifford, co-chair of the fund's steering board, said the volume and quality of bids presented a "major headache" and urged ministers to secure more funding.
What's the endgame? This £6 million is the first year of a programme that could provide up to £12 million over two years, with the next round expected to reserve £1 million for areas without a dedicated outlet. Media Minister Ian Murray said he is "determined not to leave local journalism to collapse."
The signal: The grants back experimentation rather than running costs, pushing publishers to build new, sustainable income. Meaningful support — but modest against the sector's structural decline, where whether projects generate lasting revenue will matter more than the headline figure.
Read more: holdthefrontpage.co.uk
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