Murdoch speaks

News Corp head backs Rebekah Brooks in first public statement.

Rupert Murdoch has just issued his first public statement since the revelation that Milly Dowler's phone was hacked by the News of the World. He describes the "allegations" as "deplorable and unacceptable", and, significantly, lends Rebekah Brooks his full backing.

Here's the statement in full:

Recent allegations of phone hacking and making payments to police with respect to the News of the World are deplorable and unacceptable. I have made clear that our company must fully and proactively co-operate with the police in all investigations and that is exactly what News International has been doing and will continue to do under Rebekah Brooks' leadership. We are committed to addressing these issues fully and have taken a number of important steps to prevent them from happening again.

I have also appointed Joel Klein to provide important oversight and guidance and Joel and Viet Dinh, an independent director, are keeping News Corporation's board fully advised as well.

Murdoch's intervention will further relieve the pressure on Brooks, already diminished by the claim from News International that she was on holiday when Dowler's phone was hacked.

But the fact remains that Andy Coulson was forced to resign (twice) because hacking occurred under his watch. Why should a different standard apply to Brooks? Whatever the answer, it is Coulson, who has told friends that he fears he will be arrested, who is in the firing line again.

George Eaton is political editor of the New Statesman.

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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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