Miliband's plan to force a vote on a "banking Leveson"

Labour leader repeat his favourite trick.

In announcing on ITV's Daybreak this morning that he will attempt to force a Commons vote on a Leveson inquiry for the banks, Ed Miliband is repeating the trick that has worked so well him for in the past. It was the threat of a vote that prompted News Corp to abandon its BSkyB bid and that led RBS boss Stephen Hester to relinquish his bonus. Labour will table an amendment to the Financial Services Bill, which is at committee stage in the House of Lords, calling for a public inquiry.

So far, the Tories and the Lib Dems have set themselves against one but Miliband can count on the support of a significant number of their MPs and much of the press, including the Daily Mail. In a leader in today's paper, the Mail declares:

Barclays chairman Marcus Agius is expected to quit today, increasing pressure on chief executive Bob Diamond to do the same.

But even that wouldn’t come close to lancing the boil. Doesn’t this latest sorry mess underline still more starkly the need for a Leveson-style inquiry into the whole banking industry?

Both Cameron and Clegg are resisting an inquiry on the grounds that it would slow down any police investigation but this fallacious argument was also used against Leveson. In his article for the Observer, Vince Cable wrote that a "costly Leveson-style public inquiry" (the Leveson inquiry is expected to cost £6m, a meaningless sum when the government spends more than a £700bn a year) would "certainly be enlivened by Ed Balls explaining why, in government, he allowed the regulatory mess to occur in the first place." Indeed it would. Is this not an argument for, rather than against an inquiry?

The longer Cameron resists demands for an inquiry, the greater the suspicion (for right or wrong) will be that he has "something to hide". If he is to tackle the public perception that the Tories are in cahoots with the banks, the pressure to act could become irresistible.

The Canary Wharf headquarters of Barclays Bank. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Is anyone prepared to solve the NHS funding crisis?

As long as the political taboo on raising taxes endures, the service will be in financial peril. 

It has long been clear that the NHS is in financial ill-health. But today's figures, conveniently delayed until after the Conservative conference, are still stunningly bad. The service ran a deficit of £930m between April and June (greater than the £820m recorded for the whole of the 2014/15 financial year) and is on course for a shortfall of at least £2bn this year - its worst position for a generation. 

Though often described as having been shielded from austerity, owing to its ring-fenced budget, the NHS is enduring the toughest spending settlement in its history. Since 1950, health spending has grown at an average annual rate of 4 per cent, but over the last parliament it rose by just 0.5 per cent. An ageing population, rising treatment costs and the social care crisis all mean that the NHS has to run merely to stand still. The Tories have pledged to provide £10bn more for the service but this still leaves £20bn of efficiency savings required. 

Speculation is now turning to whether George Osborne will provide an emergency injection of funds in the Autumn Statement on 25 November. But the long-term question is whether anyone is prepared to offer a sustainable solution to the crisis. Health experts argue that only a rise in general taxation (income tax, VAT, national insurance), patient charges or a hypothecated "health tax" will secure the future of a universal, high-quality service. But the political taboo against increasing taxes on all but the richest means no politician has ventured into this territory. Shadow health secretary Heidi Alexander has today called for the government to "find money urgently to get through the coming winter months". But the bigger question is whether, under Jeremy Corbyn, Labour is prepared to go beyond sticking-plaster solutions. 

George Eaton is political editor of the New Statesman.