I beg to move,
That the Committee has considered the draft Local Digital Television Programme Services (Amendment) Order 2024.
It is a pleasure to open the debate under your chairship, Mr Stringer. I am pleased to speak to the order, which was laid before the House in draft on 5 November.
In just over 10 years since the first service launched, local television continues to provide local content, including news and current affairs, to audiences across the UK, and in so doing to complement our national public service broadcasters. From Sheffield Live and Leeds TV, both of which broadcast in areas neighbouring my Barnsley constituency, to London Live, which broadcasts just a few miles up the road in Kensington, and NVTV in Belfast, there are now 34 local TV services broadcasting across the UK.
I was pleased to meet members of the Local TV Network and Comux last month and hear more about their services and the work they do. Both organisations also sit on the Future of TV Distribution stakeholder forum, which I am pleased to chair. These services bring social and economic benefits to the areas they serve through the making and showing of programmes that reflect the interests of their local communities, but more than that, in a television sector that is all too often centred around London and the south-east, local TV provides a training ground for those looking to embark on a career in the sector. One service, KMTV, has developed a partnership with the University of Kent to train journalism students, while another, Notts TV, has seen former trainees build on that experience and go on to work in the national media.
There are 11 services based in the north of England, five based in Scotland, three in Wales and one in Northern Ireland. All 34 of those services are carried on the local TV multiplex, which enables them to be broadcast on digital terrestrial television, also known as Freeview. The multiplex is operated by Comux UK, which is co-owned by the local TV services themselves. The multiplex plays a central role in the local TV ecosystem by providing subsidised carriages for all the local services.
The local TV sector has not been without its challenges. Some services have struggled to maintain consistent audience numbers and to develop stable revenues from advertising. Last year, the TV advertising market in the UK experienced its biggest decline since the 2008-09 financial crisis. Although all commercially funded broadcasters have been affected, local TV services have been particularly impacted as they have smaller audiences than their national counterparts.
The previous Government made a commitment to extend the local TV multiplex until 2034 and to consult on the options for the renewal or relicensing of the licences for the 34 local TV services. That consultation ran from June to September last year and received responses from existing licence holders, media and telecoms companies, and members of the public. In the consultation, the then Government outlined their preferred approach of a light touch renewal process for the multiplex licence, led by Ofcom, and the conditional renewal of the licences for all 34 local TV services, subject to Ofcom’s assessment of their performance to date and their plans for the next licence period.
Respondents to the consultation were broadly supportive of this approach. Some respondents, particularly current licence holders, raised concerns about the burden this approach may have on licensees. They also emphasised the importance of the renewal process being completed swiftly in order to provide certainty to both the sector and its commercial partners. My Department has taken those responses into account in the drafting of this order, and worked closely with the independent regulator, Ofcom, which will administer the renewals process, to refine its provisions.
A previous version of this order was laid in draft before Parliament on 7 May 2024, but was withdrawn due to the general election. The subsequent delay to the order coming into force meant that Ofcom would not have had the time necessary to conclude the renewals process and, in the event that any of the licences were not renewed, to conduct a competitive relicensing process. The updated order therefore includes additional powers for Ofcom to extend local TV licences, with the consent of current licence holders, by a period of 12 months. The extension will ensure that Ofcom is able to complete the renewals process at least 12 months before the extended licences would otherwise expire.
The order has been considered by the Joint Committee on Statutory Instruments and the Secondary Legislation Scrutiny Committee, which raised no concerns. The Government believe that the approach set out at consultation and provided for by the order gives the sector the best chance for long-term success and sustainability by balancing the certainty and stability of a streamlined renewals process with a proportionate degree of regulatory oversight, which will be provided by Ofcom.
The Government recognise the importance of local media, including local TV. Our vision is of a thriving sector that continues to play an invaluable role by reporting on the issues that matter to communities, and keeping communities informed about local issues and decision making that affects them. The renewal of local TV licences is an important step on that journey, and I commend the draft order to the Committee.