England: UK government backs down over punitive costs for unregulated newspapers

The UK government has backed down over the implementation of legislation that would see unregulated newspapers pay libel costs in cases that they successfully defended.

Westminster sources told The Times that the implementation of section 40 of the Crime and Courts Act 2013 “will not go ahead”.

The Press Recognition Panel (PRP) is expected to recognise Impress as the UK’s first approved press regulator today, sparking concerns that section 40 - which only applies to England and Wales - will be brought into effect.

The act says that courts must award costs against defendants who are “not a member of an approved regulator at the time when the claim was commenced”, except in specific circumstances where the regulator’s arbitration scheme could not have resolved the claim or where a different award of costs would be “just and equitable”.

Most UK newspapers are not a member of Impress, with many - including The Times, Daily Mail and The Daily Telegraph - having signed up to IPSO, which has refused PRP approval. Others, like The Guardian and the Financial Times - have their own system of regulation.

Culture Secretary Karen Bradley last night told MPs at a meeting of the Commons Culture, Media and Sport Committee: “We can all agree that it’s really important to have a strong local press that can uncover local scandals. I have had representations from local editors extremely concerned about section 40.

“I have made no decision on the timing of a decision on section 40. I don’t rule it out at some point in the future.”

Westminster sources told The Times this meant she would not implement the clause and that other incentives for signing up to Impress may be offered - but the “stick will be dropped”.

Lynne Anderson, the deputy chief executive of the News Media Association, has accused the UK government of making an “attack on free speech” by recognising Impress.

Ms Anderson said it would “ on 90 per cent of the newspaper and magazine industry who have joined an effective self-regulator, IPSO, a system of punitive costs and damages designed to coerce them into compliance with a state-sponsored system of regulation”.