Controversy over council's advertising and advertorial deal with newspaper

An advertising deal between a local newspaper and a London council has run into a spot of bother.

The decision by Lambeth council to award a contract to the independently-owned Southwark News has been "called in" for scrutiny after an objection by an opposition councillor.

Jeremy Clyne, a Liberal Democrat, argues that the Labour-run council is trying to circumvent the tighter publicity code introduced in March by communities minister Eric Pickles.

It prohibits councils from publishing newspapers more than four times a year. Pickles said at the time: "These new rules make it crystal clear that taxpayers' money should be for protecting front line services, not printing Pravda... Publicity straying into propaganda clearly crosses the line of appropriate public funding."

But Clyne is claiming that Lambeth council's deal, which will result in the expansion of Southwark News's monthly free Weekender title to cover Lambeth as well as Southwark, breaches the new rules.

In his submission, he claims that the newspaper has agreed to provide free "advertorial space" to the council in return for the income the paper would receive for publishing statutory notices and advertising the council's services.

Clyne contends that two full pages of advertorial will "appear to most readers as newspaper articles."

He adds: "The publisher would have no control over the content of this material and there would be no possibility of reply or correction to any false, unbalanced or misleading content in the advertorial."

Quoting from a report on the deal by a council officer, Clyne also questions the "need to ensure" that the council agrees with the paper's editorial policy.

He comments: "Members should regard it as improper that the council is seeking to interfere with the editorial stance of the independent local press."

Indeed, many journalists might well feel that Southwark News is in danger of compromising its editorial independence.

The officer's report mentions "quarterly meetings" between the paper's editorial board and council representatives to review "the effectiveness of the newspaper in meeting our values and vision."

This echoes a line from Southwark News's own bid document which pledged that "through regular meetings with the press office, we would try to create obvious synergies between the editorial/campaigns being covered in our publications and the communications strategies of Lambeth council."

The council will discuss Clyne's objections this week but has rejected them all, urging the deal to go ahead as previously agreed.