Clegg impresses on libel reform

Deputy PM announces a series of measures to curb Britain’s “chilling” libel laws.

It's not the vote-winner the Lib Dems badly need but Nick Clegg's comments on libel reform today are some of the most impressive we've heard from a British politician. In his speech on civil liberties (a full transcript of which can be found here), the Deputy PM promised to provide publishers with a new statutory public-interest defence, clamp down on libel tourism and reform the system of "no win, no fee" litigation, which can make it prohibitively expensive for publications to defend themselves.

Clegg said: "The test of a free press is its capacity to unearth the truth, exposing charlatans and vested interests along the way. It is simply not right when academics and journalists are effectively bullied into silence by the prospect of costly legal battles with wealthy individuals and big businesses."

Britain's libel laws, as the NS has noted before, have become a international embarrassment. So feared are this country's laws that the US Congress last year passed new legislation to counter the threat posed by libel tourists in the UK.

American newspapers including the New York Times, the Boston Globe and the Los Angeles Times had threatened to abandon supplying the 200-odd copies they make available for sale in London because they could no longer risk losing millions of dollars in a libel action that they would never face under US law.

The "no win, no fee" system was created with the honourable aim of providing the poorest with access to justice, yet it has left small publishers unable to defend themselves. Research by Oxford University shows that the cost of fighting a libel action in England is 140 times greater than the European average. Jack Straw's libel reform plan, which would have capped lawyers' success fees at 10 per cent, fell victim to the parliamentary "wash-up".

But Clegg's reforms, which will be included in a draft defamation bill in the spring, are not sufficient. London has become the libel capital of the world, not just because of the sums claimants can win but because it is easier to win a case here than in any comparable democracy. Only English libel law places the burden of proof on the defendant, meaning the odds are stacked against authors and publishers from the start.

The government should shift this burden from the defendant to the plaintiff as a matter of priority. But if Clegg can deliver on his aspiration to turn English libel laws from an "international laughing stock to an international blueprint", we'll have at least one thing to thank the Lib Dems for.

George Eaton is political editor of the New Statesman.

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Scotland's vast deficit remains an obstacle to independence

Though the country's financial position has improved, independence would still risk severe austerity. 

For the SNP, the annual Scottish public spending figures bring good and bad news. The good news, such as it is, is that Scotland's deficit fell by £1.3bn in 2016/17. The bad news is that it remains £13.3bn or 8.3 per cent of GDP – three times the UK figure of 2.4 per cent (£46.2bn) and vastly higher than the white paper's worst case scenario of £5.5bn. 

These figures, it's important to note, include Scotland's geographic share of North Sea oil and gas revenue. The "oil bonus" that the SNP once boasted of has withered since the collapse in commodity prices. Though revenue rose from £56m the previous year to £208m, this remains a fraction of the £8bn recorded in 2011/12. Total public sector revenue was £312 per person below the UK average, while expenditure was £1,437 higher. Though the SNP is playing down the figures as "a snapshot", the white paper unambiguously stated: "GERS [Government Expenditure and Revenue Scotland] is the authoritative publication on Scotland’s public finances". 

As before, Nicola Sturgeon has warned of the threat posed by Brexit to the Scottish economy. But the country's black hole means the risks of independence remain immense. As a new state, Scotland would be forced to pay a premium on its debt, resulting in an even greater fiscal gap. Were it to use the pound without permission, with no independent central bank and no lender of last resort, borrowing costs would rise still further. To offset a Greek-style crisis, Scotland would be forced to impose dramatic austerity. 

Sturgeon is undoubtedly right to warn of the risks of Brexit (particularly of the "hard" variety). But for a large number of Scots, this is merely cause to avoid the added turmoil of independence. Though eventual EU membership would benefit Scotland, its UK trade is worth four times as much as that with Europe. 

Of course, for a true nationalist, economics is irrelevant. Independence is a good in itself and sovereignty always trumps prosperity (a point on which Scottish nationalists align with English Brexiteers). But if Scotland is to ever depart the UK, the SNP will need to win over pragmatists, too. In that quest, Scotland's deficit remains a vast obstacle. 

George Eaton is political editor of the New Statesman.