Should local authorities subsidise independent local newspapers?

In today’s Guardian, (and here with footnotes) George Monbiot asks:

“I can think of only two local newspapers that consistently hold power to account: the West Highland Free Press and the Salford Star. Are any others worth saving? If so, please let me know.”

His observation ….

“Most local papers exist to amplify the voices of their proprietors and advertisers and other powerful people with whom they wish to stay on good terms. In this respect they scarcely differ from most of the national media. But they also contribute to what in Mexico is called caciquismo: the entrenched power of local elites. This is the real threat to local democracy, not the crumpling of the media empires of arrogant millionaires.”

… is strikingly similar to Helen Swaffer’s line that…

“Freedom of the press in Britain is freedom to print such of the proprietor’s prejudices as the advertiser’s won’t object to.”

In no lesser a place than the Washington Post, there are arguments for state-sponsored journalism. Here’s my question: Should local authorities be asking for powers – and the ability to raise funding – to offer subsidies for responsible independent newspapers?

Can this be done in a way that ensures independent reporting?