Exclusive: Alan Rusbridger profile by Peter Wilby

The Guardian editor on the newspaper's future - an extended extract.

The Guardian editor Alan Rusbridger is profiled by Peter Wilby, the award-winning media commentator, in this week's New Statesman. In the 6,000-word piece Wilby asks: what is the future of the paper?

Below is a extract of the NS Profile's first 1,000 words. The article can be read in full in this week's New Statesman magazine, available to buy around the country from Thursday 31 May. Single copies of the issue can also be purchased online here.

 

EXTRACT: The quiet evangelist

By Peter Wilby

These are heady days for the Guardian and its editor, Alan Rusbridger. The News of the World, once the highest-circulation Sunday newspaper in the English-speaking world, is dead. Its proprietor, Rupert Murdoch, whose support was so assiduously sought by every prime minister for more than 30 years, is all but defeated, with some of his leading former executives facing criminal charges and his attempt to tighten his grip on the British television market decisively repelled. The entire system of press regulation faces drastic reform. Cabinet ministers and even David Cameron could yet be forced from office.

All of this is the outcome of the Guardian’s dogged pursuit of phone-hacking, an offence that was at first dismissed by police, politicians, most rival newspapers, the industry’s watchdog and even some of the paper’s own journalists as small-scale and trivial. Not since Harold Evans’s 1970s heyday, when the Sunday Times pursued the thalidomide scandal, has a newspaper investigation enjoyed such success and received such plaudits. For Rusbridger, who backed Nick Davies, the reporter who exposed the hacking scandal, it is a triumphant vindication, the crowning achievement of his 17-year career as editor.

Yet there is another side to the Rusbridger story, and to the Guardian’s. The newspaper, its Sunday sister, the Observer, and their digital operations recorded operating losses (before tax and exceptional items) of nearly £37m in the year to April 2011, up from £32.5m the previous year. A still bigger loss is expected to be announced for 2011-2012. Andrew Miller, chief executive of the paper’s parent company, Guar­dian Media Group, warned staff in 2011 that the company “could run out of cash in three to five years” and repeated in February this year that the financial position was “not sustainable”.

Thanks to technological change and a prolonged recession, all newspapers face falling sales, declining revenues and an uncertain future. The Guardian’s position, however, is unusually critical. Its chief source of advertising income – public-sector job vacancies – has collapsed, wiping out an annual £40m in revenue.

The Guardian has no rich proprietor, willing to pour in money until corners are turned and times improve. Nor does it have conventional shareholders, ready to provide capital on promises of future growth. Alone among UK newspapers, it is owned by a trust, set up in 1936, partly to avoid death duties, by the sons of its recently deceased owner and longest-serving editor, C P Scott. The Scott Trust is the Guar­dian’s guardian, charged not only with ensuring that the paper is “conducted in the future on the same lines and in same spirit as heretofore” (in other words, continuing the radical, albeit moderate, editorial approach that dates back to the Guardian’s foundation in Manchester in 1821) but also with securing its financial position “in perpetuity”.

As the Guardian itself has rarely been profitable, it depends on the trust to ensure its survival. For 75 years, by transferring profits from other assets managed by GMG – particularly the Manchester Evening News and the Auto Trader motoring magazines – the trust has kept the Guardian alive, though sometimes only just. In the past seven years, however, the trust and GMG have made a series of decisions that, some critics say, threaten to deprive the Guardian of its lifeline. At a time when the paper most needs sustenance, the trust’s capacity to continue covering its losses is in doubt.

Most editors play little role in company business. Rusbridger, however, sits not only on the board of Guardian News & Media, which runs the Guardian, the Observer and their digital operations, but also on the GMG and Scott Trust boards. He is therefore in an unusually strong position to drive through his ideas and press his case for resources. The Guardian – once described as the only institution accountable to a ghost – allows the editor extraordinary power and freedom. Because the purpose is not to make profit but to protect the paper’s soul, the editor sets the agenda. The trust is criticised in some quarters as a weak vehicle of accoun­tability, because about half of its members are journalists and lawyers who are (or have been) actively associated with the paper. “What Alan wants, Alan gets,” I was told, separately, by one former and one present member of the Scott Trust.

If the hacking investigation is Rusbridger’s finest achievement as Guardian editor, his success in establishing the paper’s online brand must rank a very close second. A self-confessed geek from an early age – he was a teenage photography enthusiast and used a Tandy, an early personal computer, to write his copy in the early 1980s – he recognised sooner than other Fleet Street editors how the worldwide web would transform journalism. The Guardian established a user-friendly website, investing £3m to launch it within two years of Rusbridger’s accession to the editorship in 1995. 

It moved quickly to exploit the possibilities of Web 2.0 (or social media), encouraging readers to engage in dialogue both with journalists and with each other and, eventually, to enhance the core editorial product. In four years out of the five up to 2009, it was declared the world’s best newspaper website in the online equivalent of the Oscars.

Today, the Guardian – still a lowly ninth in the league table of daily UK print circulation, lagging behind the Times and Telegraph – is an international brand, the fifth most read newspaper website in the world. According to unaudited figures, it is now read, in print and online, by 5.3 million people a week, a reach of which C P Scott could only have dreamed.

But again there is another side to the story: the vast majority of those readers do not pay. Although Rusbridger insists that his mind is not closed to charging for online access, his missionary enthusiasm for journalism on the web – some staff compare him to a leader of a religious cult – would make any decision to put up a paywall almost as sensational as the Pope renouncing the Virgin Birth. He says the Guar­dian is now “a digital company” that also publishes a newspaper. He and senior management executives believe that, in the not very distant future, the Guardian and other newspapers may cease, at least on weekdays, to publish in print at all. Yet the printed Guardian and Observer still generate 75 per cent of the revenue and nobody is sure that website advertising and other digital income – which, under GMG’s business plan, must double to £91m by 2016 – can replace them, particularly as a left-liberal brand is an uneasy host to much consumer advertising. Meanwhile, the revenue-generating print circulation continues to shrink, to about 215,000 this year against nearly 400,000 in 2006. As his critics see it, the Guardian’s editor has painted himself and his paper into a corner from which neither may ever emerge.

Rusbridger has some claim (always excepting C P Scott) to be the Guardian’s greatest editor. But will he also be its last? Now acclaimed as a hero, will he turn out to be the Guardian’s nemesis, unable to ensure that it continues “as heretofore”? 

 

Read this article in full in the forthcoming issue of the New Statesman, available on newsstands around the country from Thursday 31 May. You can subscribe here - and domestic and overseas purchasers can also order a single issue.

Alan Rusbridger, editor of the Guardian, at his office in Kings Place, London. Photo: Muir Vidler/New Statesman
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Debunking Boris Johnson's claim that energy bills will be lower if we leave the EU

Why the Brexiteers' energy policy is less power to the people and more electric shock.

Boris Johnson and Michael Gove have promised that they will end VAT on domestic energy bills if the country votes to leave in the EU referendum. This would save Britain £2bn, or "over £60" per household, they claimed in The Sun this morning.

They are right that this is not something that could be done without leaving the Union. But is such a promise responsible? Might Brexit in fact cost us much more in increased energy bills than an end to VAT could ever hope to save? Quite probably.

Let’s do the maths...

In 2014, the latest year for which figures are available, the UK imported 46 per cent of our total energy supply. Over 20 other countries helped us keep our lights on, from Russian coal to Norwegian gas. And according to Energy Secretary Amber Rudd, this trend is only set to continue (regardless of the potential for domestic fracking), thanks to our declining reserves of North Sea gas and oil.


Click to enlarge.

The reliance on imports makes the UK highly vulnerable to fluctuations in the value of the pound: the lower its value, the more we have to pay for anything we import. This is a situation that could spell disaster in the case of a Brexit, with the Treasury estimating that a vote to leave could cause the pound to fall by 12 per cent.

So what does this mean for our energy bills? According to December’s figures from the Office of National Statistics, the average UK household spends £25.80 a week on gas, electricity and other fuels, which adds up to £35.7bn a year across the UK. And if roughly 45 per cent (£16.4bn) of that amount is based on imports, then a devaluation of the pound could cause their cost to rise 12 per cent – to £18.4bn.

This would represent a 5.6 per cent increase in our total spending on domestic energy, bringing the annual cost up to £37.7bn, and resulting in a £75 a year rise per average household. That’s £11 more than the Brexiteers have promised removing VAT would reduce bills by. 

This is a rough estimate – and adjustments would have to be made to account for the varying exchange rates of the countries we trade with, as well as the proportion of the energy imports that are allocated to domestic use – but it makes a start at holding Johnson and Gove’s latest figures to account.

Here are five other ways in which leaving the EU could risk soaring energy prices:

We would have less control over EU energy policy

A new report from Chatham House argues that the deeply integrated nature of the UK’s energy system means that we couldn’t simply switch-off the  relationship with the EU. “It would be neither possible nor desirable to ‘unplug’ the UK from Europe’s energy networks,” they argue. “A degree of continued adherence to EU market, environmental and governance rules would be inevitable.”

Exclusion from Europe’s Internal Energy Market could have a long-term negative impact

Secretary of State for Energy and Climate Change Amber Rudd said that a Brexit was likely to produce an “electric shock” for UK energy customers – with costs spiralling upwards “by at least half a billion pounds a year”. This claim was based on Vivid Economic’s report for the National Grid, which warned that if Britain was excluded from the IEM, the potential impact “could be up to £500m per year by the early 2020s”.

Brexit could make our energy supply less secure

Rudd has also stressed  the risks to energy security that a vote to Leave could entail. In a speech made last Thursday, she pointed her finger particularly in the direction of Vladamir Putin and his ability to bloc gas supplies to the UK: “As a bloc of 500 million people we have the power to force Putin’s hand. We can coordinate our response to a crisis.”

It could also choke investment into British energy infrastructure

£45bn was invested in Britain’s energy system from elsewhere in the EU in 2014. But the German industrial conglomerate Siemens, who makes hundreds of the turbines used the UK’s offshore windfarms, has warned that Brexit “could make the UK a less attractive place to do business”.

Petrol costs would also rise

The AA has warned that leaving the EU could cause petrol prices to rise by as much 19p a litre. That’s an extra £10 every time you fill up the family car. More cautious estimates, such as that from the RAC, still see pump prices rising by £2 per tank.

The EU is an invaluable ally in the fight against Climate Change

At a speech at a solar farm in Lincolnshire last Friday, Jeremy Corbyn argued that the need for co-orinated energy policy is now greater than ever “Climate change is one of the greatest fights of our generation and, at a time when the Government has scrapped funding for green projects, it is vital that we remain in the EU so we can keep accessing valuable funding streams to protect our environment.”

Corbyn’s statement builds upon those made by Green Party MEP, Keith Taylor, whose consultations with research groups have stressed the importance of maintaining the EU’s energy efficiency directive: “Outside the EU, the government’s zeal for deregulation will put a kibosh on the progress made on energy efficiency in Britain.”

India Bourke is the New Statesman's editorial assistant.