Union chiefs have criticised the government’s decision to scrap a proposed “institute for public interest news”.

The National Union of Journalists has hit out at the Department for Digital, Culture, Media and Sport after it revealed earlier this week it would not be supporting the launch of such a body.

The institute was among the recommendations made by Dame Frances Cairncross in her review into the future of news provision, but ministers said the launch of such a body would amount to “inappropriate government interference with the press”.

The idea of the institute was the central plank of last year’s review by Dame Frances, who argued that it should eventually take over the local democracy service from the BBC.

NUJ general secretary Michelle Stanistreet, pictured, said: “The Cairncross Review demonstrated the stark challenges facing journalism, and the NUJ welcomed its recommendations as a unique opportunity to address the deepening crisis and take action to stem the damage being done to our democracy.

“This tardy response from the government, jettisoning an Institute for Public Interest News on spurious grounds, fails to acknowledge the scale of the crisis in the media industry and demonstrates a lack of vision when it comes to implementing meaningful solutions.

“Refusing to open up charitable status as a business model is also short-sighted – whilst it may not suit the needs of some major publishers, it would have provided an opportunity for many smaller and new entries into the industry who are committed to the provision of quality public interest news. The response fails to address the need to bolster diverse and sustainable journalism in the UK.

“Calling for the BBC to fork out even more from the licence fee we pay for our public service broadcaster is not a solution to the problems the industry faces – this ‘more of the same’ approach is simply not going to cut it.”

The News Media Association previously said it welcomed the decision not to go ahead with the institute but called for a clearer financial commitments from the government to implement the rest of the Cairncross recommendations.

The Society of Editors has also appluaded the decision not to proceed with the proposed institute.

Executive director Ian Murray commented: “It is the correct step for the government to take to not follow through with the Cairncross Review’s recommendation to create an Institute for Public Interest News.

“The Society of Editors was consulted by the DCMS on this issue and felt there was a danger that the government would be seen to be deciding what constitutes worthwhile news coverage and what doesn’t. That should never be the role of government in a free, democratic society where many voices should be heard through a plurality of media outlets.”