Is this the end for Jeremy Hunt?

Culture Secretary under pressure after acting as a "cheerleader" for the BSkyB bid.

Jeremy Hunt is swiftly emerging as the cabinet minister with the most questions to answer following James Murdoch's testimony to the Leveson inquiry. Rupert Murdoch has submitted 163 pages of emails between News Corp lobbyist Frederic Michel and Hunt's special adviser to the inquiry, which suggest that the Culture Secretary, in the words of Robert Jay, QC, acted as a "cheerleader" for the BSkyB bid. Even before he acquired ministerial responsibility for the deal, Hunt received "strong legal advice" not to meet James Murdoch but, according to the emails, later offered to speak to him on the phone. In addition, through his special adviser, he allegedly communicated his personal support for the deal. On 15 June 2010, Hunt's special adviser reportedly told Michel, that he didn't believe there was a "media plurality issue" and that "the UK government would be supportive throughout the process".

In December, after Ofcom outlined its concerns over the bid, Michel claimed he had a "very good debrief with Hunt ... he is pretty amazed by its findings, methodology and clear bias. He very much shares our views on it."

With the full emails due to be published online after Murdoch's appearance ends at 4pm, worse is likely to come.

Hunt has never made any secret of his admiration for News Corp and Murdoch snr. In an interview with Broadcast magazine while shadow culture secretary, he argued:

Rather than worry about Rupert Murdoch owning another TV channel, what we should recognise is that he has probably done more to create variety and choice in British TV than any other single person because of his huge investment in setting up Sky TV which, at one point, was losing several million pounds a day.

We would be the poorer and wouldn't be saying that British TV is the envy of the world if it hadn't been for him being prepared to take that commercial risk. We need to encourage that kind of investment.

But given that he told MPs on 3 March that "at every stage of this process (the BSkyB deal) we have sought to be completely transparent, impartial and fair" the exchanges are deeply embarrassing and could even prove fatal. Indeed, Ladbrokes has just suspended betting on him being the next minister to leave the cabinet.

Culture Secretary Jeremy Hunt Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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BHS is Theresa May’s big chance to reform capitalism – she’d better take it

Almost everyone is disgusted by the tale of BHS. 

Back in 2013, Theresa May gave a speech that might yet prove significant. In it, she declared: “Believing in free markets doesn’t mean we believe that anything goes.”

Capitalism wasn’t perfect, she continued: 

“Where it’s manifestly failing, where it’s losing public support, where it’s not helping to provide opportunity for all, we have to reform it.”

Three years on and just days into her premiership, May has the chance to be a reformist, thanks to one hell of an example of failing capitalism – BHS. 

The report from the Work and Pensions select committee was damning. Philip Green, the business tycoon, bought BHS and took more out than he put in. In a difficult environment, and without new investment, it began to bleed money. Green’s prize became a liability, and by 2014 he was desperate to get rid of it. He found a willing buyer, Paul Sutton, but the buyer had previously been convicted of fraud. So he sold it to Sutton’s former driver instead, for a quid. Yes, you read that right. He sold it to a crook’s driver for a quid.

This might all sound like a ludicrous but entertaining deal, if it wasn’t for the thousands of hapless BHS workers involved. One year later, the business collapsed, along with their job prospects. Not only that, but Green’s lack of attention to the pension fund meant their dreams of a comfortable retirement were now in jeopardy. 

The report called BHS “the unacceptable face of capitalism”. It concluded: 

"The truth is that a large proportion of those who have got rich or richer off the back of BHS are to blame. Sir Philip Green, Dominic Chappell and their respective directors, advisers and hangers-on are all culpable. 

“The tragedy is that those who have lost out are the ordinary employees and pensioners.”

May appears to agree. Her spokeswoman told journalists the PM would “look carefully” at policies to tackle “corporate irresponsibility”. 

She should take the opportunity.

Attempts to reshape capitalism are almost always blunted in practice. Corporations can make threats of their own. Think of Google’s sweetheart tax deals, banks’ excessive pay. Each time politicians tried to clamp down, there were threats of moving overseas. If the economy weakens in response to Brexit, the power to call the shots should tip more towards these companies. 

But this time, there will be few defenders of the BHS approach.

Firstly, the report's revelations about corporate governance damage many well-known brands, which are tarnished by association. Financial services firms will be just as keen as the public to avoid another BHS. Simon Walker, director general of the Institute of Directors, said that the circumstances of the collapse of BHS were “a blight on the reputation of British business”.

Secondly, the pensions issue will not go away. Neglected by Green until it was too late, the £571m hole in the BHS pension finances is extreme. But Tom McPhail from pensions firm Hargreaves Lansdown has warned there are thousands of other defined benefit schemes struggling with deficits. In the light of BHS, May has an opportunity to take an otherwise dusty issue – protections for workplace pensions - and place it top of the agenda. 

Thirdly, the BHS scandal is wreathed in the kind of opaque company structures loathed by voters on the left and right alike. The report found the Green family used private, offshore companies to direct the flow of money away from BHS, which made it in turn hard to investigate. The report stated: “These arrangements were designed to reduce tax bills. They have also had the effect of reducing levels of corporate transparency.”

BHS may have failed as a company, but its demise has succeeded in uniting the left and right. Trade unionists want more protection for workers; City boys are worried about their reputation; patriots mourn the death of a proud British company. May has a mandate to clean up capitalism - she should seize it.