Farewell Wapping, the Fortress of Solitude

What does the selling off of News International's HQ mean for the future of journalism?

Fortress Wapping is no more. At least, it will be no more soon, as News International seeks to sell off the site which once it had earmarked for a now-shelved campus development.

It's a move that seems like a rather poignant reflection of the state of print. Once upon a time, Wapping was something people fought over; it was the epicentre of the journalists' and printworkers' dispute of 1986, when sales of newspapers in Britain had reached their peak. Now, it's being closed down, with barely a struggle. "A readjustment of a property portfolio," says the statement, but it's hard not to think it's symbolic of more than that.

The News International brand has been poisoned by the phonehacking saga, which still echoed on yesterday, with more statements to parliament and more accusations. It's not going away any time soon, with more arrests continuing. You can't stop something from being news, once it's news; Rupert Murdoch probably knows that best of all.

While James Murdoch is feeling the heat, the aura of invincibility has gone from his father - an aura which was created at around the time when he decided to smash the unions and move to Wapping in the first place. Perhaps the departure from that site could represent the closing of a circle; perhaps it is just a cold business decision in difficult trading times -- the one-off revenues from the sale of prime land should be handsome, although you have to wonder how much greater they would have been in a property boom rather than a slump. Whatever the reason, Fortress Murdoch, Fortress Wapping, which once seemed impregnable is now being abandoned.

It's not just a change of site though. The Wapping announcement coincides with the shedding of more than 100 journalists' jobs. Those of us who've been through the business of being booted out ourselves will recognise the language: consultation; challenging economic conditions; reassessment; an extremely testing time; great confidence for the future; yadda yadda yadda. We've heard it all before, and we know what it means.

As ever with these announcements, I take no pleasure in seeing a bunch of journalists being kicked out after a lifetime in their chosen profession -- even if they did end up working for Murdoch. It's a stark reminder of the state of the industry -- when I started working a big regional daily in 2004, there were nearly 200 journalists working there; now there are 60. When you see even the likes of News International shedding jobs, using that ominous language about 'going forward' that we redundant types remember so well from Powerpoint presentations and friendly memos back at our old workplaces, you know that something is wrong. This could be more than just a little local difficulty.

There's something else: it's been nearly nine weeks since the News of the World printed its last-ever 'souvenir' edition (available now on Ebay for £5m) but the Sun hasn't started printing on a Sunday yet. It may be just around the corner; it may be some distance away. But it is going to happen -- isn't it? And if there's even the slightest possible chance that it isn't, what does that mean for the future of the industry?

The old certainties are gone: Fortress Wapping is no more; the Murdoch aura has disappeared. In their place are new certainties: journalists are going to lose their jobs. Ink is declining. And it's hard to see a time when that is going to change.

Patrolling the murkier waters of the mainstream media
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Debunking Boris Johnson's claim that energy bills will be lower if we leave the EU

Why the Brexiteers' energy policy is less power to the people and more electric shock.

Boris Johnson and Michael Gove have promised that they will end VAT on domestic energy bills if the country votes to leave in the EU referendum. This would save Britain £2bn, or "over £60" per household, they claimed in The Sun this morning.

They are right that this is not something that could be done without leaving the Union. But is such a promise responsible? Might Brexit in fact cost us much more in increased energy bills than an end to VAT could ever hope to save? Quite probably.

Let’s do the maths...

In 2014, the latest year for which figures are available, the UK imported 46 per cent of our total energy supply. Over 20 other countries helped us keep our lights on, from Russian coal to Norwegian gas. And according to Energy Secretary Amber Rudd, this trend is only set to continue (regardless of the potential for domestic fracking), thanks to our declining reserves of North Sea gas and oil.


Click to enlarge.

The reliance on imports makes the UK highly vulnerable to fluctuations in the value of the pound: the lower its value, the more we have to pay for anything we import. This is a situation that could spell disaster in the case of a Brexit, with the Treasury estimating that a vote to leave could cause the pound to fall by 12 per cent.

So what does this mean for our energy bills? According to December’s figures from the Office of National Statistics, the average UK household spends £25.80 a week on gas, electricity and other fuels, which adds up to £35.7bn a year across the UK. And if roughly 45 per cent (£16.4bn) of that amount is based on imports, then a devaluation of the pound could cause their cost to rise 12 per cent – to £18.4bn.

This would represent a 5.6 per cent increase in our total spending on domestic energy, bringing the annual cost up to £37.7bn, and resulting in a £75 a year rise per average household. That’s £11 more than the Brexiteers have promised removing VAT would reduce bills by. 

This is a rough estimate – and adjustments would have to be made to account for the varying exchange rates of the countries we trade with, as well as the proportion of the energy imports that are allocated to domestic use – but it makes a start at holding Johnson and Gove’s latest figures to account.

Here are five other ways in which leaving the EU could risk soaring energy prices:

We would have less control over EU energy policy

A new report from Chatham House argues that the deeply integrated nature of the UK’s energy system means that we couldn’t simply switch-off the  relationship with the EU. “It would be neither possible nor desirable to ‘unplug’ the UK from Europe’s energy networks,” they argue. “A degree of continued adherence to EU market, environmental and governance rules would be inevitable.”

Exclusion from Europe’s Internal Energy Market could have a long-term negative impact

Secretary of State for Energy and Climate Change Amber Rudd said that a Brexit was likely to produce an “electric shock” for UK energy customers – with costs spiralling upwards “by at least half a billion pounds a year”. This claim was based on Vivid Economic’s report for the National Grid, which warned that if Britain was excluded from the IEM, the potential impact “could be up to £500m per year by the early 2020s”.

Brexit could make our energy supply less secure

Rudd has also stressed  the risks to energy security that a vote to Leave could entail. In a speech made last Thursday, she pointed her finger particularly in the direction of Vladamir Putin and his ability to bloc gas supplies to the UK: “As a bloc of 500 million people we have the power to force Putin’s hand. We can coordinate our response to a crisis.”

It could also choke investment into British energy infrastructure

£45bn was invested in Britain’s energy system from elsewhere in the EU in 2014. But the German industrial conglomerate Siemens, who makes hundreds of the turbines used the UK’s offshore windfarms, has warned that Brexit “could make the UK a less attractive place to do business”.

Petrol costs would also rise

The AA has warned that leaving the EU could cause petrol prices to rise by as much 19p a litre. That’s an extra £10 every time you fill up the family car. More cautious estimates, such as that from the RAC, still see pump prices rising by £2 per tank.

The EU is an invaluable ally in the fight against Climate Change

At a speech at a solar farm in Lincolnshire last Friday, Jeremy Corbyn argued that the need for co-orinated energy policy is now greater than ever “Climate change is one of the greatest fights of our generation and, at a time when the Government has scrapped funding for green projects, it is vital that we remain in the EU so we can keep accessing valuable funding streams to protect our environment.”

Corbyn’s statement builds upon those made by Green Party MEP, Keith Taylor, whose consultations with research groups have stressed the importance of maintaining the EU’s energy efficiency directive: “Outside the EU, the government’s zeal for deregulation will put a kibosh on the progress made on energy efficiency in Britain.”

India Bourke is the New Statesman's editorial assistant.