Local newspapers could be set to lose a significant source of revenue after a Liberal Democrat peer proposed an end to the practice of publishing public notices in the press.

The amendment to the Local Audit and Accountability Bill, due to be debated in the House of Lords tomorrow, could bring an stop £26 million of annual income for local papers.

Lord Tope has tabled an amendment to the bill stating that the statutory “requirement for a local authority (in whatever capacity) to publish a notice, an advertisement or any other matter in a newspaper shall cease to have effect”.