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What exactly is fake news and why do they create it?

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SW-User
Fake news is stories or complete hoaxes created to deceive the reader
/viewer.

It's different from a story being presented with bias.

Let's take some examples today. In the British press there is a story about how much the labour party will spend if the win the election. This has been deliberately started by their opponents the Conservative party.

However the figure quoted is not true since the Labour haven't published their actual manifesto. It assumed all policies are in full swing from day one and it makes gross assumptions.

Sensible reporting would be "The Conservatives claim....
However this only would be true if.... Etc". You've reported the claim but indicated potential flaws.

Fake news would be "Labour will spend £1 trillion in government".

You're making sound like it is true and verified. You've not indicated it is actually a claim by the Conservatives etc etc .