Osborne emerges unscathed from Leveson

The Tories will be delighted with the Chancellor's calm performance.

Given the potential for upset, the Conservatives will be delighted with how well George Osborne's appearance at the Leveson inquiry went. The Chancellor, who was evidently well-prepared, gave an impressively calm performance that will go way some to restoring his diminished political reputation.

There were no bombshells, no revelations of inappropriate contact with the Murdochs, and Osborne successfully fielded a series of questions on Jeremy Hunt and Andy Coulson. Asked why Hunt was given responsibility for the BSkyB bid, he passed the buck to the then-permanent secretary, Jeremy Heywood, who advised that the Culture Secretary should be handed control. Hunt's publicly-expressed support for the bid was "not considered" a problem, although Osborne notably added that the inquiry would need to ask David Cameron about the legal advice he received on the subject.

On Coulson, he argued persuasively that the former News of the World editor was hired principally for his journalistic nous, not for his News International contacts ("which were already well-established"). The Chancellor, who told the inquiry that he remained "a friend" of Coulson ("though sadly I have not been able to speak to him for a year"), expressed genuine regard for Coulson's abilities as a spinner. As Rafael wrote recently, the Tories feel sorrow, rather than anger, at his downfall.

Osborne revealed that he asked Coulson whether there was "more in the phone-hacking story that was going to come out" and accepted his assurances. He added that he assumed that there was nothing more to be revealed because of statements from the Press Complaints Commission and the trial of Clive Goodman and Glenn Mulcaire. In a missed opportunity, Robert Jay QC did not go on to ask Osborne whether he changed his view when the Guardian revealed that phone-hacking went far beyond "one rogue reporter". We already know from Coulson's testimony that Cameron, perhaps afraid of what he would learn, sought no further assurances at this point.

Cameron and those who advised him (including Osborne) remain guilty of showing terrible judgement by appointing Hunt and Coulson to their respective positions. The Murdoch scandal continues to dog every attempt they make to relaunch their moribund government. It has provided, and will continue to provide, Labour with an endless stream of bad news stories. But, for now, the Tories will be relieved that Osborne's appearance merely confirmed, rather than deepened, their woes.

Chancellor George Osborne leaves after giving evidence at the Leveson inquiry. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Photo: Getty
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The big problem for the NHS? Local government cuts

Even a U-Turn on planned cuts to the service itself will still leave the NHS under heavy pressure. 

38Degrees has uncovered a series of grisly plans for the NHS over the coming years. Among the highlights: severe cuts to frontline services at the Midland Metropolitan Hospital, including but limited to the closure of its Accident and Emergency department. Elsewhere, one of three hospitals in Leicester, Leicestershire and Rutland are to be shuttered, while there will be cuts to acute services in Suffolk and North East Essex.

These cuts come despite an additional £8bn annual cash injection into the NHS, characterised as the bare minimum needed by Simon Stevens, the head of NHS England.

The cuts are outlined in draft sustainability and transformation plans (STP) that will be approved in October before kicking off a period of wider consultation.

The problem for the NHS is twofold: although its funding remains ringfenced, healthcare inflation means that in reality, the health service requires above-inflation increases to stand still. But the second, bigger problem aren’t cuts to the NHS but to the rest of government spending, particularly local government cuts.

That has seen more pressure on hospital beds as outpatients who require further non-emergency care have nowhere to go, increasing lifestyle problems as cash-strapped councils either close or increase prices at subsidised local authority gyms, build on green space to make the best out of Britain’s booming property market, and cut other corners to manage the growing backlog of devolved cuts.

All of which means even a bigger supply of cash for the NHS than the £8bn promised at the last election – even the bonanza pledged by Vote Leave in the referendum, in fact – will still find itself disappearing down the cracks left by cuts elsewhere. 

Stephen Bush is special correspondent at the New Statesman. He usually writes about politics.