Police corruption, the duck house of Hackgate and King Lear for girls

Rebekah Brooks's horse is the £1,645 duck house of Hackgate.

Leveson-watchers were expecting the second part of the inquiry, focusing on the relationship between the press and the police, to be the most interesting. And so it is.

On 27 February, we had Sue Akers, a deputy assistant commissioner at the Met, telling Lord Justice Leveson that there was "a culture at the Sun of illegal payments" to police officers and public officials, with one trousering £80,000 over a number of years. (Contrast that with the Times's report a few days after the most recent arrests, worrying that a Sun hack was "questioned over a £50 lunch claim".)

The next day, former BBC Crimewatch presenter Jacqui Hames told the inquiry that she was placed under surveillance by the News of the World after her husband, a police officer, became the "face" of one of several tortuous investigations into the murder of a man named Daniel Morgan. One of the suspects was Morgan's business partner, Jonathan Rees, a private investigator paid £150,000 a year by the NoW when it was edited by Andy Coulson. She told the inquiry that Rees, who was eventually tried for the 1987 murder in 2011 (the case collapsed), had "close links" to the paper's news editor.

So why was Hames put under surveillance? Paragraph 40 of her witness statement puts it clearly: "I believe that the real reason for the News of the World placing us under surveillance was that suspects in the Daniel Morgan murder inquiry were using their association with a powerful and well-resourced newspaper to try to intimidate us and so attempt to subvert the investigation."

If that is true, it's frightening. And the Leveson inquiry can never be mocked as a "celebrity hurt-feelings tribunal" again.

Her kingdom for a horse
Next to those two allegations, it was easy to miss the news that Scotland Yard had tipped off News International's chief executive Rebekah Brooks about the extent of hacking as early as 2006. Sportingly, they asked her if she "wishe[d] to take it further" than the arrests of Clive Goodman and Glenn Mulcaire.

The flood of new revelations not only makes the abrupt closure of the NoW more and more understandable, but the opening of the Sun on Sunday a provocative move. By Tuesday, things were looking so bad that some suggested the story of the Met "loaning" Rebekah Brooks a retired police horse had been deliberately leaked to divert attention. That's possibly a bit far-fetched - not to mention a terrible idea, given that the intricacies of claim and counter-claim are hard to keep up with, but "she was so close to police they lent her a horse" is easily digestible. It's the £1,645 duck house of Hackgate.

Out to lunch
I hope there's better to come from WikiLeaks's latest venture, the release of five million emails from the US-based intelligence firm Stratfor. So far, observations by this apparently shadowy organisation include the breathless: "I got a lot of info on [Swedish politician] Carl Bildt. . . Bildt apparently super tall, has photographic memory and is very smart. . . Bildt believes that Sweden should become a world power." (That was marked "SPECIAL HANDLING: Secure".)

Another email promisingly begins: "Admit nothing, deny everything and make counter-accusations." However, it turns out to be responding to Rob in the finance department, who complains that "someone has taken the lunch that I brought in. . . That's commonly known as stealing".

Past tents
My morning walk to work is a little less interesting now that the Occupy protesters have been evicted from St Paul's. Every morning, there was a quiet bustle of activity; later, there were talks in the "university tent" and pleas for food donations outside the canteen. Did the protesters achieve their aims? It's impossible to say, not least because their aims were so nebulous. Unlike many protest movements, they did not start timid and become more radicalised - they started off fighting for the dismantling of capitalism and ended up arguing for their right to exist. With the tuition-fee protests more violent and the outcry against the coalition's NHS and school reforms likely to be deeper and more widespread, I doubt Occupy will be more than a footnote in the history of David Cameron's coalition goverment. But still, as I trudge past the steps of the cathedral, its cream stone looks suddenly bare.

Setting the Vagenda
I gave up women's mags for blood pressure-related reasons some years ago, but I might be tempted back by the online-only Vagenda, which is acerbic and hilarious in equal measure. Its tagline is "Like King Lear, but for girls" - which is how Grazia described The Iron Lady - and it has the pasted-up look of an old-school underground magazine.

Vagenda was started less than a month ago by a group of largely anonymous female writers who decided "the women's press is a large hadron collider of bullshit and that something needed to be done". As someone who never again wishes to be told which £900 handbag is "this season's must-have" because its makers have bought a shedload of adverts, I applaud it.

Dislike a Virgin
Sorry to turn this page into First Thoughts on Virgin Media, but I read Peter Wilby's travails with the company with interest last week, as I had an engineer due round to instal my broadband on Saturday. Internet providers come just above letting agents (and below budget airlines) on my League of Companies Who Treat You Badly Because They Can Get Away With It, so I was shocked to my core when the whole thing went without a hitch. The engineer departed, I retired to my bedroom to work on my laptop . . . and the door refused to shut. Yes, he'd wired the cable right into the door frame.

Next week: Peter Wilby

Helen Lewis is deputy editor of the New Statesman. She has presented BBC Radio 4’s Week in Westminster and is a regular panellist on BBC1’s Sunday Politics.

This article first appeared in the 05 March 2012 issue of the New Statesman, The last Tsar

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By refusing to stand down, Jeremy Corbyn has betrayed the British working classes

The most successful Labour politicians of the last decades brought to politics not only a burning desire to improve the lot of the working classes but also an understanding of how free market economies work.

Jeremy Corbyn has defended his refusal to resign the leadership of the Labour Party on the grounds that to do so would be betraying all his supporters in the country at large. But by staying on as leader of the party and hence dooming it to heavy defeat in the next general election he would be betraying the interests of the working classes this country. More years of Tory rule means more years of austerity, further cuts in public services, and perpetuation of the gross inequality of incomes. The former Chief Secretary to the Treasury, Seema Malhotra, made the same point when she told Newsnight that “We have an unelectable leader, and if we lose elections then the price of our failure is paid by the working people of this country and their families who do not have a government to stand up for them.”

Of course, in different ways, many leading figures in the Labour movement, particularly in the trade unions, have betrayed the interests of the working classes for several decades. For example, in contrast with their union counterparts in the Scandinavian countries who pressurised governments to help move workers out of declining industries into expanding sectors of the economy, many British trade union leaders adopted the opposite policy. More generally, the trade unions have played a big part in the election of Labour party leaders, like Corbyn, who were unlikely to win a parliamentary election, thereby perpetuating the rule of Tory governments dedicated to promoting the interests of the richer sections of society.

And worse still, even in opposition Corbyn failed to protect the interests of the working classes. He did this by his abysmal failure to understand the significance of Tory economic policies. For example, when the Chancellor of the Exchequer had finished presenting the last budget, in which taxes were reduced for the rich at the expense of public services that benefit everybody, especially the poor, the best John McConnell could do – presumably in agreement with Corbyn – was to stand up and mock the Chancellor for having failed to fulfill his party’s old promise to balance the budget by this year! Obviously neither he nor Corbyn understood that had the government done so the effects on working class standards of living would have been even worse. Neither of them seems to have learnt that the object of fiscal policy is to balance the economy, not the budget.

Instead, they have gone along with Tory myth about the importance of not leaving future generations with the burden of debt. They have never asked “To whom would future generations owe this debt?” To their dead ancestors? To Martians? When Cameron and his accomplices banged on about how important it was to cut public expenditures because the average household in Britain owed about £3,000, they never pointed out that this meant that the average household in Britain was a creditor to the tune of about the same amount (after allowing for net overseas lending). Instead they went along with all this balanced budget nonsense. They did not understand that balancing the budget was just the excuse needed to justify the prime objective of the Tory Party, namely to reduce public expenditures in order to be able to reduce taxes on the rich. For Corbyn and his allies to go along with an overriding objective of balancing the budget is breathtaking economic illiteracy. And the working classes have paid the price.

One left-wing member of the panel on Question Time last week complained that the interests of the working classes were ignored by “the elite”. But it is members of the elite who have been most successful in promoting the interests of the working classes. The most successful pro-working class governments since the war have all been led mainly by politicians who would be castigated for being part of the elite, such as Clement Atlee, Harold Wilson, Tony Crosland, Barbara Castle, Richard Crossman, Roy Jenkins, Denis Healey, Tony Blair, and many others too numerous to list. They brought to politics not only a burning desire to improve the lot of the working classes (from which some of them, like me, had emerged) and reduce inequality in society but also an understanding of how free market economies work and how to deal with its deficiencies. This happens to be more effective than ignorant rhetoric that can only stroke the egos and satisfy the vanity of demagogues

People of stature like those I have singled out above seem to be much more rare in politics these days. But there is surely no need to go to other extreme and persist with leaders like Jeremy Corbyn, a certain election loser, however pure his motives and principled his ambitions.

Wilfred Beckerman is an Emeritus Fellow of Balliol College, Oxford, and was, for several years in the 1970s, the economics correspondent for the New Statesman