The Cameron-Brooks texts begin to leak

The PM told Brooks to "keep her head up" the week she resigned.

Last week we learned that David Cameron may have texted Rebekah Brooks "a dozen" times a day. Today, courtesy of News International's the Times (£), we learn of some of the contents. An updated version of Times journalist Francis Elliott and Independent journalist James Hanning's biography of the PM, Cameron: Practically a Conservative, reveals that Cameron texted Brooks in the week she resigned as chief executive of News International to tell her "to keep her head up" (not a direct quote).

In a revelation that will certainly brighten Labour's morning, we also learn that such contact then came to an "abrupt halt", with Cameron dispatching an emissary to explain that "Ed Miliband had him on the run." And there's more: Brooks and Cameron texted each other to make sure they were not seen together at the Heythrop point-to-point; Cameron asked the Met to open a review into the Madeleine McCann case in May 2011 as "a favour" for Brooks; and Royal courtiers warned that Buckingham Palace would "think poorly" of a decision to take Andy Coulson into Downing Street.

The case for the defence is put by Oliver Letwin. "If you are on the same side as her (Brooks), you have to see her every week," he explains. "This was how it worked." In other words, the PM courted Brooks no more or less than Tony Blair and Gordon Brown. But even if we accept Letwin's assurances, the problem for Cameron is that he was the one standing up when the music stopped.

It's tempting to dismiss the Leveson inquiry (before which Coulson will testify on Thursday, followed by Brooks on Friday) as of interest only to journalists but Rebekah Brooks's name is one that has penetrated the public consciousness. As I've written before, the claim that Cameron texted her a dozen times a day (more contact than most people have with their partner) could permanently reduce him in the eyes of the public. Conversely, as Sunder Katwala notes, there are "as of now, no actual texts/emails to/from Cameron to Rebekah Brooks yet in public domain." So long as this remains the case, No. 10 will hope that it can limit the damage.

David Cameron with former Sun editor and News International chief executive Rebekah Brooks.

George Eaton is political editor of the New Statesman.

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