Northcliffe Newspapers managing director Kevin Beatty, also chairman of the Newspaper Societys marketing committee, said that although regional newspapers had increased their share of advertising revenue they could do more to attract big brands.

If you look at the recent investment we have bigger presses, more colour, more flexibility and better mailrooms. It really is a sign that we believe in the importance of the regional press to communities, said Beatty.

Business intelligence firm Mintel estimates that consumer expenditure on regional newspapers is at the same level as 1998. However, advertising revenue was up 20% from 1998 to 2002. National newspapers revenues were only 6% higher in 2002 than in 1998.

The Newspaper Society says the Royal Mails plan to drop its Newspaper Registration Service, which allows regional publishers to reach readers living in remote areas using concessionary postage rates, would devastate some newspapers.

Story by John Davies