RadioCentre, the industry body for commercial radio, says changes to the way community radio stations can fund themselves is a concern for commercial stations.
The Government today said the not-for-profit stations can now make the majority of its income from advertising, rather than the previous 50% rule.
Siobhan Kenny, Chief Executive of RadioCentre said: “This is a disappointing outcome and will be a real cause for concern for small commercial radio stations where margins are already squeezed.
“The changes proposed by the Department of Culture, Media and Sport (DCMS) risk blurring the lines between community and commercial stations and puts them in direct competition for limited local advertising, alongside local press, local television and online.
“Community radio can perform a valuable complementary role to commercial radio and the BBC, but it must offer something significantly different to the communities it serves. Any changes must be accompanied by a renewed emphasis on enforcement and compliance with the key commitments of these stations.”
The Government’s announcement follows a consultation carried out by the DCMS launched in February 2013.
More details on today’s changes can be found here.