A Cameron-Murdoch alliance could devastate the BBC

Many Conservatives sympathise with James Murdoch's attack on the BBC as a state behemoth

Does the BBC have much to fear following James Murdoch's turn as Gordon Gekko at the Edinburgh International Television Festival?

In previous years the rhetorical excesses of his MacTaggart Lecture, which invoked George Orwell's Nineteen Eighty-Four to damn the BBC, could have been playfully batted away by the corporation's executives.

But this year, with a Tory party increasingly sceptical of the BBC's size and scale on the brink of power, the corporation faces the threat of a powerful alliance between Cameron's Conservatives and Murdoch's News Corporation.

If Cameron promises to cut the BBC's funding and to reverse what Murdoch described as its "chilling" landgrab he could secure the support of the Sun and the News of the World at the next election.

Murdoch may have delivered his speech to an audience of television executives, but it was dominated by his concern that the BBC's vast online presence prohibits any attempt to successfully charge for news websites.

Murdoch Sr has declared that he intends to charge for all his news websites by next summer and his papers are likely to line up behind those politicians who promise to curb the influence of the BBC.

The Conservatives have already demonstrated their willingness to challenge the successive licence fee increases the world's largest broadcaster has enjoyed under Labour.

In May, parliament voted on a Tory proposal to freeze the licence fee, with Cameron arguing that during the recession the BBC needed to do "more with less".

The proposal made little political impact and was easily defeated by 334-156 votes, but it set an important precedent. BBC executives are more troubled by Cameron's suggestion that the licence fee could be reviewed annually, exposing the corporation's £3.6bn annual income to unprecedented scrutiny.

Many Conservatives have great sympathy with Murdoch's call for the BBC to become "far, far smaller". Like him, a significant number believe that the continued expansion of the BBC even as its commercial rivals lose millions in advertising revenue is intolerable.

At a time when the government's Digital Britain report has argued that the licence fee should be "top-sliced" and shared with the BBC's competitors, the corporation finds itself unusually short of friends and increasingly vulnerable.

The BBC Trust's perfunctory response to Murdoch's harangue did little to raise morale within the broadcaster. Unless the BBC's leading figures begin to make the positive case for its funding far more effectively than they have done, they may be unable to prevent the formation of a potentially destructive alliance.

George Eaton is political editor of the New Statesman.

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Inside a shaken city: "I just want to be anywhere that’s not Manchester”

The morning after the bombing of the Manchester Arena has left the city's residents jumpy.

On Tuesday morning, the streets in Manchester city centre were eerily silent.

The commuter hub of Victoria Station - which backs onto the arena - was closed as police combed the area for clues, and despite Mayor Andy Burnham’s line of "business as usual", it looked like people were staying away.

Manchester Arena is the second largest indoor concert venue in Europe. With a capacity crowd of 18,000, on Monday night the venue was packed with young people from around the country - at least 22 of whom will never come home. At around 10.33pm, a suicide bomber detonated his device near the exit. Among the dead was an eight-year-old girl. Many more victims remain in hospital. 

Those Mancunians who were not alerted by the sirens woke to the news of their city's worst terrorist attack. Still, as the day went on, the city’s hubbub soon returned and, by lunchtime, there were shoppers and workers milling around Exchange Square and the town hall.

Tourists snapped images of the Albert Square building in the sunshine, and some even asked police for photographs like any other day.

But throughout the morning there were rumours and speculation about further incidents - the Arndale Centre was closed for a period after 11.40am while swathes of police descended, shutting off the main city centre thoroughfare of Market Street.

Corporation Street - closed off at Exchange Square - was at the centre of the city’s IRA blast. A postbox which survived the 1996 bombing stood in the foreground while officers stood guard, police tape fluttering around cordoned-off spaces.

It’s true that the streets of Manchester have known horror before, but not like this.

I spoke to students Beth and Melissa who were in the bustling centre when they saw people running from two different directions.

They vanished and ducked into River Island, when an alert came over the tannoy, and a staff member herded them through the back door onto the street.

“There were so many police stood outside the Arndale, it was so frightening,” Melissa told me.

“We thought it will be fine, it’ll be safe after last night. There were police everywhere walking in, and we felt like it would be fine.”

Beth said that they had planned a day of shopping, and weren’t put off by the attack.

“We heard about the arena this morning but we decided to come into the city, we were watching it all these morning, but you can’t let this stop you.”

They remembered the 1996 Arndale bombing, but added: “we were too young to really understand”.

And even now they’re older, they still did not really understand what had happened to the city.

“Theres nowhere to go, where’s safe? I just want to go home,” Melissa said. “I just want to be anywhere that’s not Manchester.”

Manchester has seen this sort of thing before - but so long ago that the stunned city dwellers are at a loss. In a city which feels under siege, no one is quite sure how anyone can keep us safe from an unknown threat

“We saw armed police on the streets - there were loads just then," Melissa said. "I trust them to keep us safe.”

But other observers were less comforted by the sign of firearms.

Ben, who I encountered standing outside an office block on Corporation Street watching the police, was not too forthcoming, except to say “They don’t know what they’re looking for, do they?” as I passed.

The spirit of the city is often invoked, and ahead of a vigil tonight in Albert Square, there will be solidarity and strength from the capital of the North.

But the community values which Mancunians hold dear are shaken to the core by what has happened here.

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