The BBC Trust has rejected proposals by Beeb managers to launch a network of local news websites based around locally produced video content and funded with £68 million of licence fee money. The proposals have been much criticised by regional newspapers who argue the BBC is using its unique funding and resources to unfairly compete on their territory - just when they are trying to overcome declines in readership and advertising revenues on their print titles by expanding their online efforts. Daily Mail Editor In Chief Paul Dacre, whose parent company owns a number of regional newspapers, recently spoke out against the proposals.
The plans needed approval of BBC regulator the BBC Trust to go ahead, and they announced this morning no such approval would be given. Trust chair Michael Lyons said in a statement that while licence fee payers wanted better regional and local services from the BBC, the website proposal was "unlikely to achieve what they want". He added: "We also recognise the negative impact that the local video proposition could have on commercial media services which are valued by the public and are already under pressure".