DCMS made the following announcement on the 17th June.
As part of its contribution to reducing the fiscal deficit, DCMS are cutting £73 miliion from its budget. As a result
"The Government has decided not to pursue the £2 million (per annum) spending commitments set out in the Public Library Modernisation Review Policy statement published in March 2010. These were free internet access in all libraries and to promote library membership as an entitlement from birth. It also included extending the Public Lending Right to non-print format books, estimated at £300,000 – this has been suspended and will be considered as part of spending review in the Autumn."