Consultation outcome

Government response to a consultation on the Public Lending Right rate per loan for the Scheme Year 2021-22

Published 21 October 2022

Introduction

The consultation ran from 21 October to 18 November 2022. A consultation letter was sent to 14 key organisations including those representing the interests of authors and the Devolved Administrations. The consultation was also published on GOV.UK.

Background

The Public Lending Right (PLR) is a right for authors and other rights holders to receive payments from a central fund in relation to public lending.  The PLR applies to the lending of books, audiobooks, e-books and e-audiobooks from public libraries.

Payments are made annually to eligible authors on the basis of a rate per loan figure.  These are calculated by the British Library, which has managed the PLR Scheme (“the Scheme”) since October 2013. The British Library recommends to the Secretary of State for Digital, Culture, Media and Sport the rate per loan for each financial year.  The recommendation takes into account the size of the central fund available that year and the number of qualifying book loans from a sample of public libraries in the UK in the preceding sampling year.

The consultation

DCMS ran a four-week public consultation (21 October to 18 November 2022) on the British Library Board’s recommendation to increase the rate per loan from 11.26 pence to 30.53 pence for the PLR Scheme year 2021/22. A consultation letter was sent directly to 14 organisations, including groups representing the interests of authors, public libraries and other stakeholders related to the public library sector in the UK, as well as the Devolved Administrations. A copy of the consultation letter was also made available on GOV.UK.

20 responses were received, and overall these were supportive of the recommended increase in the rate per loan.

In addition, many of those who responded to the consultation took the opportunity to raise other more general points about PLR and public libraries. Although such matters fall outside the scope of this consultation, the government’s position in relation to each of these issues is as follows.

Issue - Protect and increase the PLR Central Fund

Summary of responses

Several responses asked for an increase in the central PLR fund, commenting that the proposed increase in the rate per loan does not reflect an increase in the amount allocated to the central fund, but rather a decrease in the number of loans eligible for payment under PLR for that Scheme Year.  One respondent also suggested the Government should ‘ring-fence’ the PLR Fund, while another commented that the fund should be increased, annually, by at least the level of inflation.

Government response

The British Library administers the PLR Scheme on behalf of the Government.  The PLR central fund amount is part of the overall funding for the British Library, which is set for each Spending Review period.The Spending Review process setting budgets for 2022/23 to 2024/25 concluded in October 2021, and did not include an uplift to the PLR central fund. The central fund for the 2022/23 financial year (and so the 2021/22 PLR Scheme Year) is therefore £6.76 million. The Government considers the size of the dedicated PLR central fund is appropriate for the purpose of providing payment to authors reflecting the loan of their books to the public by local library authorities in the United Kingdom.

Issue - Extending the PLR Scheme beyond public libraries

Summary of responses

Several responses commented that all volunteer/community-run, school and other libraries should be included in the PLR scheme.  They commented that it was unfair that all libraries other than public libraries should be exempt from remunerating authors for loans and that their inclusion would reflect the true library lending figures and provide appropriate remuneration to authors. Another respondent suggested extending PLR to cover lending from school and college libraries in the form of an Educational Lending Right.

Government response

Under the Public Lending Right Act 1979 the PLR is applicable to loans made from public libraries falling under the statutory control of the relevant local authority. In the majority of cases, such libraries will be both controlled and managed by that authority. Where a library is managed by volunteers or community groups, the local authority may decide that the library remains within its statutory responsibility and ultimate control - and in such cases PLR would apply to loans from the library.

School libraries do not fall within the scope of public libraries.  Library provision is not statutory in schools and it is up to schools to decide whether to provide and maintain a library service for their pupils.

The Government does not plan to extend the PLR Scheme beyond the loan of books from public libraries to include schools or other academic institutions.

Issue - PLR funding is below that of comparable EU countries

Summary of responses

Some respondents commented that the PLR scheme does not compare favourably with schemes in other EU countries, such as France or Germany, which have larger budgets.

Government Response

PLR Schemes vary greatly from one country to another - for example in France publishers and other suppliers make up a portion of the fund - and in some countries different materials are covered or funds form part of state support for culture. This means that the beneficiaries of the PLR fund and how it is distributed is not directly comparable, nor are the amounts available.

Issue - Calculation and/or freezing of the PLR rate per loan

Summary of response

A couple of respondents suggested the calculation of the PLR rate per loan should be based on actual book issue data, instead of the current sampling methodology. A couple of respondents also commented that total lending figures are not just inaccurate, they are reliant on out-of-date, unreliable, and declining third-party data and bear no relation to the year they are used for and this also means the statements on lending are significantly incorrect, and misleading to authors and contributors.  A respondent also suggested the rate per loan should be frozen and money invested in improving the PLR process and promoting library lending.

Government Response

DCMS will continue to work with the British Library to consider the potential for future improvements to how the PLR Scheme operates. This includes whether amendments could be made in relation to the collection of actual loans data from all library authorities. The Government does not intend to freeze the rate per loan.  The process for amending the rate per loan will continue to be undertaken in line with established practice, following a recommendation by the British Library Board and in light of a public consultation.

The government has a duty to protect and maintain library services and ensure a “comprehensive and efficient” service.

Summary of responses

A number of respondents noted that the Government should fulfil an obligation to provide a “comprehensive and efficient” library service; to protect and maintain the library services which is under serious threat; and to address the overall decline in book stock in libraries. A couple of respondents also urged DCMS to argue strongly for improvement to funding for public libraries.

Government Response

Public libraries policy is a devolved matter in respect of Scotland, Wales and Northern Ireland. In England, under the Public Libraries and Museums Act 1964, library authorities are responsible for providing “comprehensive and efficient” local public library services. They are expected to provide public library services (including by making decisions relating to provision of bookstock) while taking into account local needs and available resources.

DCMS is committed to supporting a sustainable long-term future for public libraries in England, and DCMS ministers take seriously the statutory duty to superintend and promote the improvement of library services in England and to ensure that library authorities in England meet their own statutory duty to provide a comprehensive and efficient library service.

Issue - Operation of the PLR Scheme

A respondent suggested a strategic review of the PLR Scheme be undertaken with the aim both of developing a long-term plan for its sustainability and of explaining the basis, mechanism and scope by which it is to be administered in future.

Government Response

DCMS considers that the existing legislation sets out clearly the administration of the PLR Scheme. DCMS will continue to work with the British Library to consider the potential for future improvements to how the PLR Scheme operates.