New measures to generate growth and greater financial sustainability in community radio

New measures to secure the long-term success of the UK’s community radio stations have been announced by the government.

There are more than 300 community radio stations dedicated to serving small geographic areas and largely run by more than 20,000 volunteers across the UK.

Media Minister Stephanie Peacock will table amendments to the Community Radio Order in Parliament later today which will relax advertising restrictions, allowing stations to raise more than the current limit of £15,000 a year from advertising and sponsorship activities.

Reinvestment

As legally required, this revenue will then be reinvested back into stations, enabling them to improve their content for listeners.

This is designed to generate growth in the sector, in line with the Government’s Plan for Change with investment and reform to put more money in people’s pockets, get the NHS back on its feet, rebuild Britain and secure our borders in a decade of national renewal.

The amendments, which will come into effect in April 2025, will also extend stations’ operating licences for a further 10 years.

This will reduce the costly administrative burden of them reapplying, which previously had to be done every five years.

Connections

Media Minister Stephanie Peacock said: “Community radio has a valuable role on our airwaves, producing truly local content that keeps people connected, engaged and entertained.

“We want to ensure growth in community radio stations across the country by providing them with greater stability and financial flexibility. It will mean they can continue doing what they do best – whether that’s delivering language specific programming or offering training opportunities to young people interested in a radio career.

“This is a clear signal that this government has community radio’s back and we want it to grow and thrive for years to come.”

Not for profit

Beginning almost 20 years ago, community radio was created to offer listeners local radio programming tailored to their communities.

Unlike commercial radio, community stations are run as not-for-profit organisations. Stations typically cover a small geographic area with a coverage radius of between 5-10 kilometres, and must benefit the area or community they serve to be eligible for an operating licence from Ofcom, the media regulator.

This could mean catering to under-represented groups, such as broadcasting language-specific content to Asian communities or offering training opportunities for young people interested in media careers, creating more talent pipelines into these sectors.

Changes to the community radio’s broadcast rules come following a public consultation, which sought views from the sector on licence renewal options, in advance of some community radio stations’ licences being due to expire in October 2025.

The consultation also looked at whether the current advertising and sponsorship guidelines, which limit the amount of revenue stations can keep, continued to be appropriate.

Sustainability

Community Media Association Chair Terry Lee said: “The Community Media Association welcomes the amendments to the Community Radio Order as a significant milestone in the evolution of community radio in the UK.

“By extending FM licenses to 10 years and ending advertising and sponsorship limits for most stations, these changes will provide greater financial sustainability and reduce administrative burdens for our members.

“As the voice of community radio since 1983, we remain committed to ensuring these vital, not-for-profit, and volunteer-led stations continue to thrive in serving their communities. We look forward to working with the Government to build on this progress and secure an even brighter future for community radio.”

UK Community Radio Network Co-Founder Martin Steers said: “The UK Community Radio Network welcomes any measures by the Government to relax regulation on Community Radio, and especially welcome the move to extend licences even further allowing established Community Radio stations to continue to do the fantastic work serving their communities across the country.”

Culture Secretary Lisa Nandy recently announced plans to develop a local media strategy, which will help ensure the sector can continue to keep communities informed on the issues that matter to them.

Last month, Minister Peacock visited community radio station Cambridge 105 to see first-hand the positive impact local radio has on communities.