Local TV needs financial lifeline, says panel

A government-backed plan to set up a network of local television stations in the UK will probably fail unless it secures funding beyond advertising revenue, an expert panel studying the idea has warned ministers.

The panel, headed by the investment banker Nicholas Shott, said the network is likely to have to be rolled out in two phases - the first in about a dozen urban areas and the second in the rest of the country once the take-up of Internet protocol television (IPTV) is big enough to make it viable. Jeremy Hunt -- the culture, Olympics, media and sport secretary -- has made local television a key part of his media strategy, arguing that it is vital for democracy that local news coverage should not become the sole province of the BBC. He points out that commercial broadcasters, facing tough economic times, are struggling to provide it.