Consultation outcome

Government response to the rate per loan consultation for the scheme year 2019 / 2020

Updated 1 December 2020

1. Introduction

The consultation ran from 29 September to 27 October 2020. A consultation letter was sent to 14 major groups representing the interests of authors and the Devolved Administrations. The consultation was also published on GOV.UK.

2. 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 of their physical and audio books by public libraries in the UK. The 2019 to 2020 PLR Scheme year, includes payments for the remote lending of e-books and e-audiobooks from public library services in Great Britain.

Payments are made annually to eligible authors, calculated on the basis of a rate per loan figure, 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, taking 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 a preceding sampling year.

3. The consultation

DCMS ran a four week public consultation (from 29 September to 27 October 2020) on the British Library Board’s recommendation to increase the rate per loan from 9.03 pence to 9.55 pence for the 2019 to 2020 PLR Scheme year. 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 made available online.

In total 12 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 the consultation, the government’s position in relation to each of these issues is as follows.

Issue - The inclusion of E-books / E-audiobooks

Summary of responses

A number of replies were supportive of the recent inclusion of remote e-book / e-audiobooks within the scheme and recognised that the Digital Economy Bill had extended PLR to e-books and audiobooks. Some responses also commented that the availability of e-books for remote lending had provided not only an invaluable service for many housebound individuals during COVID-19 lockdown periods, but also more generally enables more flexible access for library users to library books.

Government response

PLR was extended to include remote lending of e-books and e-audiobooks at the beginning of July 2018 with the first payments to authors being made in 2020, reflecting such loans in the PLR Scheme year 1 July 2018 - 30 June 2019.

Issue - Protect and increase the PLR Central Fund

Summary of responses

Many responses asked for an increase in the central 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. Some other respondents also commented that the PLR scheme does not compare favourably with other EU countries, such as Germany, which had larger budgets and provides a greater financial reward to authors. Some responses suggested the government also ring-fence the PLR Fund.

Government response

There are no current plans to increase the overall amount of the PLR central fund. The British Library administers the PLR Scheme on behalf of the government and the funding level of the PLR would form part of the consideration of British Library’s overall funding at a future spending review.

Issue - Volunteer / community run libraries should be included in the PLR Scheme

Summary of responses

A few responses commented that all volunteer / community run libraries should be included in the PLR scheme in order to reflect the true library lending figures and provide appropriate PLR remuneration to authors.

Government response

The PLR is applicable to loans made from 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 that PLR would apply to loans from the library.

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

Summary of responses

A couple of respondents noted that the government has to fulfil its obligation to provide a “comprehensive and efficient” library service and to protect and maintain the library service which is under serious threat. These responses commented that libraries find themselves increasingly challenged to maintain quality collections in all formats and that it is essential both to improve the overall picture of public library funding and to advocate for ring-fenced investment in quality print and digital collections in order to continue to fulfil their public task. These responses also urged DCMS to argue strongly for improvement to funding for public libraries in its discussions with the Ministry of Housing, Communities and Local Government, in light of the government’s imminent White Paper on local government reorganisation.

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.

DCMS has provided information and views on the critical role of library services in their communities to MHCLG to support its discussions with HMT regarding the Spending Review and forthcoming local government settlement.

Issue - How the PLR Scheme is operated

Summary of responses

One respondent suggested there should be a wholesale review of the formula used to calculate PLR, to reflect the true value of an individual loan, rather than the size of the fund available.

Government response

DCMS will continue to work with the British Library, to consider the potential for future improvements to how PLR operates. This includes whether amendments could be made to the PLR Scheme in relation to the collection of loans data and calculation of the PLR rate per loan and payments.

Issue - Explore the possibility of adopting an ‘Educational Lending Right’ (ELR) to cover books loaned by school libraries.

Summary of responses

A respondent suggested exploring the possibility of adopting an ‘Educational Lending Right’ (ELR) to cover books loaned by school libraries. They envisage a scheme that is similar in its operation to the ELR scheme currently in operation in Germany.

Government response

The PLR is applicable to loans made from public libraries only and 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. This is considered a matter for the Department for Education given their responsibility for schools.