A LAW change which would have seen most newspapers hit with costs even when they won libel cases has been dropped.

The change was designed to make it easier for people to take newspapers to court in the wake of the phone-hacking scandal at national tabloids.

But Culture Secretary Matt Hancock said there could have been a serious impact on cash-strapped local newspapers in particular.

He said: “Local papers help to bring together local voices and shine a light on important local issues - in communities, in courtrooms, in council chambers.

“And as we devolve power further to local communities, they will become even more important.

“And yet, over 200 local newspapers have closed since 2015, including two in my own constituency.”

An extension to the Leveson inquiry into the press is also being dropped, with Labour deputy leader Tom Watson accusing the Government of "betraying the victims of phone hacking".