Further VAT Warnings

The Henley Centre has published a report highlighting the decline in local titles if VAT was to be imposed at the budget.

The latest study, commissioned by the Newspaper Society, says that “local communities would see a gradual decline in the quality of local titles”.

The Henley report refers to the Price Waterhouse investigation into the effect of VAT on regional newspapers, (Newsline 28/10) pointing out that local communities”remain extremely important” The report finds that local press is seen by 78% of people as the single best medium for satisfying the need for information about the local area. Local papers are seen to understand local needs and lifestyles, but this is achieved through investment in their products. The imposition of VAT would “erode the extent to which the industry is able, in the future, to continue this type of investment.”

The results of VAT would be less editions, less staff or an increase in cover price.

Contact Newspaper Society Lynne Gardiner 071 636 7014.