Mehdi Hasan on fighting leaks: Apple vs Labour

Close allies Paul Staines (aka "Guido Fawkes") and Dan Hodges have been blogging all week about chaos, confusion and general goings-on inside the Labour Party based, it seems, on leaks from inside the party's soon-to-be-vacated Victoria HQ in central London.

Yesterday, former Labour special adviser Paul Richards tweeted:

Whoever the person at Labour HQ is who's giving @GuidoFawkes hourly updates, I wish they'd stop it. Whatever the beef, it won't fix it.

My new colleague Alex Hern reminds me of a story told by John Lilly, former CEO of Mozilla, about how the late Steve Jobs of Apple dealt with leakers:

One of the struggles we were going through when [Steve Jobs] came back was that Apple was about the leakiest organization in history -- it had gotten so bad that people were cavalier about it. In the face of all those leaks, I remember the first all company e-mail that Steve sent around after becoming Interim CEO again -- he talked in it about how Apple would release a few things in the coming week, and a desire to tighten up communications so that employees would know more about what was going on -- and how that required more respect for confidentiality. That mail was sent on a Thursday; I remember all of us getting to work on Monday morning and reading mail from Fred Anderson, our then-CFO, who said basically: "Steve sent mail last week, he told you not to leak, we were tracking everyone's mail, and 4 people sent the details to outsiders. They've all been terminated and are no longer with the company.

Mehdi Hasan is a contributing writer for the New Statesman and the co-author of Ed: The Milibands and the Making of a Labour Leader. He was the New Statesman's senior editor (politics) from 2009-12.

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Autumn Statement 2015: George Osborne abandons his target

How will George Osborne close the deficit after his U-Turns? Answer: he won't, of course. 

“Good governments U-Turn, and U-Turn frequently.” That’s Andrew Adonis’ maxim, and George Osborne borrowed heavily from him today, delivering two big U-Turns, on tax credits and on police funding. There will be no cuts to tax credits or to the police.

The Office for Budget Responsibility estimates that, in total, the government gave away £6.2 billion next year, more than half of which is the reverse to tax credits.

Osborne claims that he will still deliver his planned £12bn reduction in welfare. But, as I’ve written before, without cutting tax credits, it’s difficult to see how you can get £12bn out of the welfare bill. Here’s the OBR’s chart of welfare spending:

The government has already promised to protect child benefit and pension spending – in fact, it actually increased pensioner spending today. So all that’s left is tax credits. If the government is not going to cut them, where’s the £12bn come from?

A bit of clever accounting today got Osborne out of his hole. The Universal Credit, once it comes in in full, will replace tax credits anyway, allowing him to describe his U-Turn as a delay, not a full retreat. But the reality – as the Treasury has admitted privately for some time – is that the Universal Credit will never be wholly implemented. The pilot schemes – one of which, in Hammersmith, I have visited myself – are little more than Potemkin set-ups. Iain Duncan Smith’s Universal Credit will never be rolled out in full. The savings from switching from tax credits to Universal Credit will never materialise.

The £12bn is smaller, too, than it was this time last week. Instead of cutting £12bn from the welfare budget by 2017-8, the government will instead cut £12bn by the end of the parliament – a much smaller task.

That’s not to say that the cuts to departmental spending and welfare will be painless – far from it. Employment Support Allowance – what used to be called incapacity benefit and severe disablement benefit – will be cut down to the level of Jobseekers’ Allowance, while the government will erect further hurdles to claimants. Cuts to departmental spending will mean a further reduction in the numbers of public sector workers.  But it will be some way short of the reductions in welfare spending required to hit Osborne’s deficit reduction timetable.

So, where’s the money coming from? The answer is nowhere. What we'll instead get is five more years of the same: increasing household debt, austerity largely concentrated on the poorest, and yet more borrowing. As the last five years proved, the Conservatives don’t need to close the deficit to be re-elected. In fact, it may be that having the need to “finish the job” as a stick to beat Labour with actually helped the Tories in May. They have neither an economic imperative nor a political one to close the deficit. 

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.