The BBC director general, Tony Hall, has made a surprise U-turn and cancelled about £10m of planned cuts to local radio in order to help the corporation combat fake news. The move was announced on the eve of the 50th anniversary of the creation of the corporation’s first local radio station, BBC Radio Leicester.

In a speech at a radio awards event in Coventry, the BBC director general said: “For many years the BBC has been reducing its investment in local radio. The development of new technology and the growth of smartphones has seen many people getting their local news, weather and traffic information digitally.

“But the rise of digital technology has also seen the rise of fake news, not just on a global level but on a local one as well. That’s why the role of BBC local radio is actually becoming more important – not less.” Hall said he wanted a “renaissance” in local radio to help better understand the UK.

“England’s changing. It’s always been a patchwork of communities, with quite distinct identities. While Newcastle’s population is getting older, Bradford’s is getting younger and Birmingham is becoming one of the most diverse cities in Europe. Decision-making is being devolved too – there are mayors in some of the big metropolitan areas and that’s having an impact.

“I want to hear the sound of England as it changes. So while other media are becoming creatively less local, I want us to become even more so and to connect with our audiences in new ways.” He added: “Local radio is in the DNA of our communities. I think that is more important than ever.”