A prominent leftwing publication faces an uncertain news outlet’s future this year. Severe financial challenges threaten its continued operation.
In July, the publication announced inability to pay staff and contractors. This followed Lloyds Bank unexpectedly blocking access to “a substantial amount” of its funds. The bank offered no explanation for this action.
Payments to some employees were again delayed in August. A spokesperson stated that “any payment difficulties have been solely due to our ongoing debanking issues.”
However, some journalists allege wider financial mismanagement. They claim more than £2 million in recent funding was misspent. Projects included a short-lived newspaper and the acquisition of other websites.
Staff, numbering around 50 full-time and part-time positions, are now unionizing. They have formed a branch of the National Union of Journalists (NUJ). A full staff meeting over the summer heard that the new funding was almost depleted.
Only about £400,000 remained, expected to last until December. Consequently, employees face potential redundancy. Furthermore, the National Employment Savings Trust (Nest) has reported late pension contributions.
Internal tensions have also escalated. In the spring, management reportedly asked workers to sign “non-negotiable” non-disclosure agreements. Refusal, they were told, would lead to changes in their employment contracts.
The chief executive, Steve Topple, voiced serious concerns in May. He spoke of the organisation’s integrity and “reputational risk,” questioning the very foundation of the news outlet’s future. Topple anticipated “the full force of the system” being placed upon the publication.
The publication, founded in 2015, emerged amidst support for then-Labour leader Jeremy Corbyn. It later sought expansion following a multi-million-pound fund injection last year. Cecil Hetherington, a major shareholder, contributed an estimated £2 million.
One worker noted that original assurances about Hetherington’s donation changed after the “debanking” incident. They highlighted three months of late payments for wages and invoices. The publication’s website even experienced downtime.
The NUJ voiced its concern for members’ interests. A spokesperson confirmed working with staff and Steve Topple. This collaboration aims for the continued stability of the publication.
Topple stated Lloyds “debanked” the organisation without warning. This action, he said, confiscated and held all cash reserves. He described severe financial and emotional stress on the company and its employees.
The publication is navigating the financial disruption. It is liaising with staff to balance current commitments with future sustainability. Topple admitted “undoubtedly made mistakes” in internal communications, offering apologies. He concluded by requesting privacy for ongoing discussions with employees.
