Legislation that is said to be 'outdated' that requires councils to advertise planning notices in local newspapers will cost £200 million over the next five years, the Local Government Association (LGA) has warned.

For the same money town halls could fund the construction of 2,180 new council homes, pay the annual salaries of another 3,000 care workers or employ an extra 2,000 refuse collectors to empty people’s bins.

The LGA, which represents more than 350 councils in England and Wales, is calling for the Government to scrap out-dated legislation which forces councils to spend tens of thousands of pounds every year on advertising statutory notices in third party publications.

LGA research shows that an average council has to pay its local newspaper £105,000 per year to print public notices which are routinely published online and circulated in council newsletters.

Last year alone, one large local authority had to pay out £608,000 to meet its legal duty to advertise statutory notices.

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The LGA is arguing that the rules – which predate the advent of the internet – should be brought up to date. Councils, in consultation with residents, should be able to decide how best to keep people informed while ensuring they get the best value for money.

Current rules mean that council tax payers are propping up the struggling newspaper industry to the tune of £40 million per year, contributing 8 per cent of UK local newspapers’ annual profits.

Baroness Margaret Eaton, Chairman of the LGA said: "In this climate of cuts, councils have to make some incredibly difficult decisions about which staff they can continue to employ and which services they can afford to sustain.

"The Government has already instructed town halls to save money by advertising job vacancies online rather than in the press. It is contradictory to then force councils to continue the expensive and unnecessary practice of paying millions of pounds per year to advertise planning notices. This is money which should be spent protecting the vital frontline services on which people rely, not propping up the profits of the newspaper industry.

"It is important that these statutory notices are accessible to as many people as possible but in this day and age councils can reach far more people for a fraction of the cost by putting the information online or distributing it directly."

The LGA believes that local newspapers serve a vital democratic role in their areas and act as the lifeblood of local communities.

Many councils work alongside and support their regional and local newspapers through the outsourced printing of fliers and supplements, joint work to organise community events and by promoting local newspapers on council literature. However, the LGA argues that the days of town halls having a statutory responsibility to bolster newspaper advertising revenue should be brought to an end.

(CD)