Council newsletter funding ‘value for money’

22 Jan 10
The money councils spend on producing periodicals and other newspaper-type communications for local residents is not being wasted, according to the Audit Commission
By Lucy Phillips

25 January 2010

The money councils spend on producing periodicals and other newspaper-type communications for local residents is not being wasted, according to the Audit Commission.

The government had asked the watchdog to look into local authority spending on news publications following concerns that councils were exploiting the decline of many independent local newspapers. In the summer, Culture Secretary Ben Bradshaw accused councils of producing ‘propaganda sheets masquerading as newspapers’ at the expense of local papers and taxpayers’ money.   

But the Audit Commission concluded that councils were not spending ‘unreasonable’ amounts of money on periodicals, ‘though they should always consider whether it provides good value’.  Local authorities spent £257m on public communication in 2008/09, which equates to less than of 0.33% of public spending. 
    
In a letter to Stephen Timms, minister for Digital Britain, Audit Commission chief executive Steve Bundred also said most council publications were not published often enough ‘to be viable media for most local advertising’. In addition, the current accountability frameworks provided ‘adequate safeguards’ against the misuse of public money for political ends, he wrote.

The Conservatives said the Audit Commission had ‘missed the point’. Shadow minister for local government Bob Neill said: ‘While most councils are sensible in their spend on publicity, a small number are clearly anti-competitive and highly detrimental to the commercial market. It may not be a breach of the statutory code, but this is since Labour have intentionally watered it down to allow such unacceptable practices to occur.'

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