Labour leadership candidate Lisa Nandy has vowed to tax social media firms to support local journalism and “build on” the BBC-funded local democracy reporting scheme should she become Prime Minister.

The Wigan MP, who announced her candidacy via the Wigan Post last month, says a Labour government run by her would tax social media companies to create a fund in order to support regional and investigative journalism.

Ms Nandy has also lent her support to the local democracy reporting scheme, which currently employs around 150 journalists in regional press newsrooms across the UK.

She made the pledge in a piece for the Labour List website in which she vowed to “defend a free media”.

Ms Nandy revealed her candidacy in the Wigan Post

Ms Nandy wrote: “As Labour Prime Minister, I would propose a new settlement with our news media. To protect its voice, and ensure it represents the whole of the UK.

“My Labour government would tax social media companies to create a fund to support local media and investigative journalism, building on the local democracy reporters scheme.

“I would protect the licence fee and my government would not hold the BBC to ransom over appointments and funding.

“Alongside this I would support measures to make news media more accountable to the people it serves, including exploring mutualisation of parts of the corporation.”

The BBC declined to comment on Ms Nandy’s remarks when approached by HTFP.