Why David Leigh's broadband tax plan is bonkers

Just a few of the reasons why this journalism subsidy wouldn't work.

I'm not sure if Guardian journalist David Leigh is being completely serious with his plan for a £2 a month levy on all broadband bills to subsidise journalism.

But here are a few reasons why I think the scheme is bonkers.

He proposes that the £500m a year windfall should be split between publishers depending on the size of their web audience.

So it means already highly profitable titles like the Daily Mail and The Sun would get £100m and £50m a year respectively in order to justify highly loss-making titles like The Guardian getting their beaks wet.

Under the Leigh system The Times - in my opinion just as fine and campaigning a newspaper as The Guardian  - would get nothing, because it has had the temerity to experiment with an alternative model and sought to charge readers to access its content online.

Regional newspapers, doing  the incredibly important job of holding local power to account, would get little - because reports of town and city council meetings are never going to drive as many web eyeballs as pictures of scantily-clad reality TV stars on the beach.

And while £2 a month may not seem like much, I suspect that many British households will take a degree of convincing that they should face a 10 per cent increase in their broadband bills to support a British journalism industry which still has something of an image problem following the hacking scandal and the Leveson Inquiry. 

That said, Leigh is right that something needs to be done and I suspect his piece is more about fostering a debate than anything else. Print circulations are plunging and while more readers are being found online, most titles are still miles away from finding an online model that pays anything like as much as the old print one did.

Without the work that national and regional newspaper titles do we would be left with a view of the world dominated by PR and advertising with some blogger propagandising thrown in for good measure.

So here's an alternative proposal: take on Google.

Currently UK publishers take a fairly relaxed view to the actions of the monopolistic US search engine giant because they love all the extra readers Google brings them.

But with Google UK ad revenues set to top £3bn this year the newspaper industry owners are increasingly looking like householders who, having been woken in the night by burglars, rush downstairs to make them a cup of tea before helping them into their van with the flatscreen TV and the silverware.

How well would Google do without all the free editorial content which it is indexing I wonder?

As the NLA versus Meltwater copyright case shows, UK publishers only have to say the word and they can stop Google reproducing their stuff. It’s a clear a breach of copyright if they want to stop it, a line of code inserted at the top of each website asking the Googlebots to keep out will suffice.

My alternative idea is for the Newspaper Publishers Association, the Newspaper Society, the PPA and the commercial broadcasters to get together and create their own news search engine. The accompanying search advertising could then be split between their members.

I suspect that professional publishers’ share of Google’s £3bn in UK advertising income would be more than the £500m brought in by the Leigh tax.

This article originally appeared in Press Gazette.

Photograph: Getty Images

Dominic Ponsford is editor of Press Gazette

Ukip's Nigel Farage and Paul Nuttall. Photo: Getty
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Is the general election 2017 the end of Ukip?

Ukip led the way to Brexit, but now the party is on less than 10 per cent in the polls. 

Ukip could be finished. Ukip has only ever had two MPs, but it held an outside influence on politics: without it, we’d probably never have had the EU referendum. But Brexit has turned Ukip into a single-issue party without an issue. Ukip’s sole remaining MP, Douglas Carswell, left the party in March 2017, and told Sky News’ Adam Boulton that there was “no point” to the party anymore. 

Not everyone in Ukip has given up, though: Nigel Farage told Peston on Sunday that Ukip “will survive”, and current leader Paul Nuttall will be contesting a seat this year. But Ukip is standing in fewer constituencies than last time thanks to a shortage of both money and people. Who benefits if Ukip is finished? It’s likely to be the Tories. 

Is Ukip finished? 

What are Ukip's poll ratings?

Ukip’s poll ratings peaked in June 2016 at 16 per cent. Since the leave campaign’s success, that has steadily declined so that Ukip is going into the 2017 general election on 4 per cent, according to the latest polls. If the polls can be trusted, that’s a serious collapse.

Can Ukip get anymore MPs?

In the 2015 general election Ukip contested nearly every seat and got 13 per cent of the vote, making it the third biggest party (although is only returned one MP). Now Ukip is reportedly struggling to find candidates and could stand in as few as 100 seats. Ukip leader Paul Nuttall will stand in Boston and Skegness, but both ex-leader Nigel Farage and donor Arron Banks have ruled themselves out of running this time.

How many members does Ukip have?

Ukip’s membership declined from 45,994 at the 2015 general election to 39,000 in 2016. That’s a worrying sign for any political party, which relies on grassroots memberships to put in the campaigning legwork.

What does Ukip's decline mean for Labour and the Conservatives? 

The rise of Ukip took votes from both the Conservatives and Labour, with a nationalist message that appealed to disaffected voters from both right and left. But the decline of Ukip only seems to be helping the Conservatives. Stephen Bush has written about how in Wales voting Ukip seems to have been a gateway drug for traditional Labour voters who are now backing the mainstream right; so the voters Ukip took from the Conservatives are reverting to the Conservatives, and the ones they took from Labour are transferring to the Conservatives too.

Ukip might be finished as an electoral force, but its influence on the rest of British politics will be felt for many years yet. 

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