Political sketch: Tony virtuoso

The former PM effortlessly charmed Leveson and Robert Jay.

It wasn't the Hague, it wasn't even the Old Bailey - but it was a court and it had a dock and in it a man with his hand on a bible prepared to admit he was Anthony Charles Lynton Blair.

He turned up looking suitably smart and tanned as befits an international jet-setter and former Prime Minister taking time off from his world-peace day job.

And so it was totally in keeping when an uninvited accuser equally, if more casually well-dressed, popped in to accuse him of war crimes in the sort of modulated voice that suited the occasion.

The sudden appearance of David Lawley-Wakelin caused mild surprise in the court not least to Lord Leveson alongside whose seat the aforementioned propped himself to deliver is charge.

The accused seemed singularly unimpressed and even his burly bodyguards strolled slowly to the positions of protection as Mr D L-W grappled with court staff before leaving in a prone position from whence he had come.

Lord Leveson then announced an immediate inquiry which means two for the price of one in the same room.

Meanwhile back at the other inquiry, chief interrogator Robert Jay had been so unimpressed with the interruption that his chin had not even left the hand on which it leans for much of the day's proceedings.

Mr Lawley-Wakelin had charged TB with having his hand in the till at J P Morgan in America and suggested that had something to do with the invasion of Iraq.

Mr Blair flatly denied the charges and pointed out that his accuser's outburst would hijack news of his appearance thereby proving the impossibility of the press - as evidenced by this story .

And so it was back to the fray or rather the seminar as former barrister Blair, clearly content to be back in familiar surroundings, swapped polite questions and answers with Jay and the judge.

Gone was the scourge of the Murdochs and the Grand Inquisitor of Coulson and Brooks, and in his place a new user-friendly Jay happy to let Tony use ten words where one would have sufficed.

Looking on were the seried ranks of the "feral beasts" of the press so described by the former PM clearly standing by hoping to deliver further blows to the man who provided them with so many stories over their careers.

Tony began by admitting that from day one of his leadership he decided taking on the press would be a waste of his time and so he decided to "manage it".

He did decide to try to win over Rupert Murdoch's newspapers but did not become really pally with the the big man himself until after he packed in as PM - and by then he had discovered Rupert was not an identikit right-winger - although he did not reveal which parts were missing from the box.

It was only then that he decided to get the white suit and be godfather to Murdoch minor minor.

He flatly denied using the papers to rubbish anyone during his time in politics, particularly Gordon, despite claims to the opposite. He also did not approve of bullying and did not believe that Peter Mandelson or Alistair Campbell ever did it (check tomorrow's newspapers!)

It was a vintage Blair performance as befits the man who told John Humphries he was a "straight sort of guy" over Bernie Ecclestone's £1m donation.

The best bit came when he confirmed without embarrassment his conversation years ago with Chris Mullin that his absolute priority was to win: "I know it sounds unprincipled but I believe it is my role in life," he told him.

Having no doubt already got each other's phone numbers, and without a glove landed on him, Tony then left promising to write in with his thoughts on the future of the press.

David Cameron is due his turn on 14 June. Number 10 said he had been too busy to watch Tony. If I were him, I'd get the DVD.
 

Protestor David Lawley-Wakelin. Photograph: Oli Scarff/Getty Images

Peter McHugh is the former Director of Programmes at GMTV and Chief Executive Officer of Quiddity Productions

Photo: Getty Images
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There are risks as well as opportunities ahead for George Osborne

The Chancellor is in a tight spot, but expect his political wiles to be on full display, says Spencer Thompson.

The most significant fiscal event of this parliament will take place in late November, when the Chancellor presents the spending review setting out his plans for funding government departments over the next four years. This week, across Whitehall and up and down the country, ministers, lobbyists, advocacy groups and town halls are busily finalising their pitches ahead of Friday’s deadline for submissions to the review

It is difficult to overstate the challenge faced by the Chancellor. Under his current spending forecast and planned protections for the NHS, schools, defence and international aid spending, other areas of government will need to be cut by 16.4 per cent in real terms between 2015/16 and 2019/20. Focusing on services spending outside of protected areas, the cumulative cut will reach 26.5 per cent. Despite this, the Chancellor nonetheless has significant room for manoeuvre.

Firstly, under plans unveiled at the budget, the government intends to expand capital investment significantly in both 2018-19 and 2019-20. Over the last parliament capital spending was cut by around a quarter, but between now and 2019-20 it will grow by almost 20 per cent. How this growth in spending should be distributed across departments and between investment projects should be at the heart of the spending review.

In a paper published on Monday, we highlighted three urgent priorities for any additional capital spending: re-balancing transport investment away from London and the greater South East towards the North of England, a £2bn per year boost in public spending on housebuilding, and £1bn of extra investment per year in energy efficiency improvements for fuel-poor households.

Secondly, despite the tough fiscal environment, the Chancellor has the scope to fund a range of areas of policy in dire need of extra resources. These include social care, where rising costs at a time of falling resources are set to generate a severe funding squeeze for local government, 16-19 education, where many 6th-form and FE colleges are at risk of great financial difficulty, and funding a guaranteed paid job for young people in long-term unemployment. Our paper suggests a range of options for how to put these and other areas of policy on a sustainable funding footing.

There is a political angle to this as well. The Conservatives are keen to be seen as a party representing all working people, as shown by the "blue-collar Conservatism" agenda. In addition, the spending review offers the Conservative party the opportunity to return to ‘Compassionate Conservatism’ as a going concern.  If they are truly serious about being seen in this light, this should be reflected in a social investment agenda pursued through the spending review that promotes employment and secures a future for public services outside the NHS and schools.

This will come at a cost, however. In our paper, we show how the Chancellor could fund our package of proposed policies without increasing the pain on other areas of government, while remaining consistent with the government’s fiscal rules that require him to reach a surplus on overall government borrowing by 2019-20. We do not agree that the Government needs to reach a surplus in that year. But given this target wont be scrapped ahead of the spending review, we suggest that he should target a slightly lower surplus in 2019/20 of £7bn, with the deficit the year before being £2bn higher. In addition, we propose several revenue-raising measures in line with recent government tax policy that together would unlock an additional £5bn of resource for government departments.

Make no mistake, this will be a tough settlement for government departments and for public services. But the Chancellor does have a range of options open as he plans the upcoming spending review. Expect his reputation as a highly political Chancellor to be on full display.

Spencer Thompson is economic analyst at IPPR