The pressure rises on James Murdoch

The conclusion from today's evidence is clear: either Murdoch is lying, or Tom Crone and Colin Myler

James Murdoch, who cancelled a planned trip to Asia to watch today's media select committe hearing on phone hacking, will have had an uncomfortable morning. Colin Myler, the former (and final) editor of the News of the World, and Tom Crone, the paper's former head of legal affairs, have stuck to their story and insisted that Murdoch did know about the infamous "for Neville" email - the document that blew a hole in News International's "rogue reporter" defence.

Crone stumbled at one point and appeared unable to say whether Murdoch was aware that phone hacking extended beyond the paper's royal editor Clive Goodman and private investigator Glenn Mulcaire [the logical conclusion of the email, which featured a hacking transcript, marked for Neville Thurlbeck, the News of the World's chief reporter]. But Myler came to his rescue and insisted that "everybody understood the significance of the "for Neville" email." In other words, not only did Murdoch know of the existence of the email, he also knew that it destroyed the paper's legal defence.

Yet when he appeared before the select committee in July, the News International chairman denied that he was even made aware of the email. Here's his exchange with Tom Watson:

Watson: "James - sorry, if I may call you James, to differentiate - when you signed off the Taylor payment, did you see or were you made aware of the full Neville email, the transcript of the hacked voicemail messages?"

James Murdoch: "No, I was not aware of that at the time."

When this answer was queried by the Guardian, Murdoch's office provided a written statement repeating his denial: "In June 2008 James Murdoch had given verbal approval to settle the case, following legal advice. He did this without knowledge of the 'for Neville' email."

At one point, Crone said of Murdoch: "I can't tell you whether on his part there was ambiguity." If we assume that Crone and Myler are telling the truth, Murdoch's only plausible defence is that the importance of the "for Neville" email was explained to him in the most opaque fashion. But Myler's declaration that "everybody understood" its significance appears to rule out this possibility.

The conclusion from today's evidence is clear: either Murdoch is lying, or Crone and Myler are. It is now imperative that the committee recalls Murdoch and asks him to resolve this contradiction.

George Eaton is political editor of the New Statesman.

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Can Philip Hammond save the Conservatives from public anger at their DUP deal?

The Chancellor has the wriggle room to get close to the DUP's spending increase – but emotion matters more than facts in politics.

The magic money tree exists, and it is growing in Northern Ireland. That’s the attack line that Labour will throw at Theresa May in the wake of her £1bn deal with the DUP to keep her party in office.

It’s worth noting that while £1bn is a big deal in terms of Northern Ireland’s budget – just a touch under £10bn in 2016/17 – as far as the total expenditure of the British government goes, it’s peanuts.

The British government spent £778bn last year – we’re talking about spending an amount of money in Northern Ireland over the course of two years that the NHS loses in pen theft over the course of one in England. To match the increase in relative terms, you’d be looking at a £35bn increase in spending.

But, of course, political arguments are about gut instinct rather than actual numbers. The perception that the streets of Antrim are being paved by gold while the public realm in England, Scotland and Wales falls into disrepair is a real danger to the Conservatives.

But the good news for them is that last year Philip Hammond tweaked his targets to give himself greater headroom in case of a Brexit shock. Now the Tories have experienced a shock of a different kind – a Corbyn shock. That shock was partly due to the Labour leader’s good campaign and May’s bad campaign, but it was also powered by anger at cuts to schools and anger among NHS workers at Jeremy Hunt’s stewardship of the NHS. Conservative MPs have already made it clear to May that the party must not go to the country again while defending cuts to school spending.

Hammond can get to slightly under that £35bn and still stick to his targets. That will mean that the DUP still get to rave about their higher-than-average increase, while avoiding another election in which cuts to schools are front-and-centre. But whether that deprives Labour of their “cuts for you, but not for them” attack line is another question entirely. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to domestic and global politics.

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