That cabinet spat in full

Chris Huhne: “People will draw their own conclusions about your failure to distance yourself from th

Hats off to the Spectator's James Forsyth for getting there first, and for that extra bit of colour: the George Osborne-attributed putdown of Chris Huhne and his "sub-Jeremy Paxman interview" style.

Now, thanks to a panel in today's Times (£), we have, in full, the alleged cabinet exchange between Huhne, Cameron and Osborne:

Chris Huhne [placing No campaign leaflets on the cabinet table] to David Cameron: Will you disassociate yourself from these leaflets? Will you sack any Tory official who produced them?

David Cameron: I'm not responsible for the No campaign, I can only talk for the Conservative No campaign

CH, turning to George Osborne: Will you disassociate yourself from them?

George Osborne: This was always going to be the most difficult time for the coalition

CH: But will you disassociate yourself from the way these leaflets attack Nick Clegg?

GO: This is cabinet, not some sub-Jeremy Paxman interview. This is not an appropriate subject for cabinet

CH: People will draw their own conclusions about your failure to distance yourself from these attacks on the Deputy Prime Minister.

For the Thunderer, "The discipline that has held the coalition together for a year was in tatters last night," while the Guardian talks of "extraordinary scenes in cabinet" and the Daily Telegraph elects to use that tabloid favourite, describing the events as a "bust-up".

Predictably, perhaps, Huhne has replaced Vince Cable as the most likely to exit the cabinet next – his price fell from 5/1 to 4/1 overnight on Smarkets. But, like Cable before him, Huhne will need to consider what influence he can hope to have from the back benches and may conclude that he is better off fighting from within. For now.

I suggested at the weekend that Huhne's attack on Margaret Thatcher in the pages of the Observer were part of a long game for the Energy Secretary, following his willingness to duel with both Sayeeda Warsi and Osborne over the tenor of the AV campaign. But the latest outburst, now that it is in the public domain, is high-risk, especially if the government can portray him as "semi-detached" and a serial troublemaker.

It's worth noting that Osborne's people – it seems – were quite happy for the exchange to get out. And, as Forsyth notes, Osborne "didn't try and defuse the conversation with a joke or anything like that".

Jon Bernstein, former deputy editor of New Statesman, is a digital strategist and editor. He tweets @Jon_Bernstein. 

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Lord Sainsbury pulls funding from Progress and other political causes

The longstanding Labour donor will no longer fund party political causes. 

Centrist Labour MPs face a funding gap for their ideas after the longstanding Labour donor Lord Sainsbury announced he will stop financing party political causes.

Sainsbury, who served as a New Labour minister and also donated to the Liberal Democrats, is instead concentrating on charitable causes. 

Lord Sainsbury funded the centrist organisation Progress, dubbed the “original Blairite pressure group”, which was founded in mid Nineties and provided the intellectual underpinnings of New Labour.

The former supermarket boss is understood to still fund Policy Network, an international thinktank headed by New Labour veteran Peter Mandelson.

He has also funded the Remain campaign group Britain Stronger in Europe. The latter reinvented itself as Open Britain after the Leave vote, and has campaigned for a softer Brexit. Its supporters include former Lib Dem leader Nick Clegg and Labour's Chuka Umunna, and it now relies on grassroots funding.

Sainsbury said he wished to “hand the baton on to a new generation of donors” who supported progressive politics. 

Progress director Richard Angell said: “Progress is extremely grateful to Lord Sainsbury for the funding he has provided for over two decades. We always knew it would not last forever.”

The organisation has raised a third of its funding target from other donors, but is now appealing for financial support from Labour supporters. Its aims include “stopping a hard-left take over” of the Labour party and “renewing the ideas of the centre-left”. 

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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