Murdoch: "Sun on Sunday" on its way

News International employees appear surprised by new NotW announcement.

The name does make one wonder how long Murdoch spent deliberating over the launch of the News of the World's replacement.

Seven months after the title folded following revelations that a hired private investigator had hacked the phone of missing school girl Milly Dowler, Rupert Murdoch today visited the London headquarters of News International and revealed to employees that the Sun on Sunday newspaper would be launching "very soon".

The announcement was made to staff via email (in full below), whilst the News Corp CEO met for crisis talks at the Wapping HQ over the arrest of ten current and former senior staff at the Sun, since November, in connection with claims of corrupt payments to public officials and police.

Of the new publication, a News International journalist told the Guardian's Lisa O'Carroll:

There was a bit of a sharp intake of breath, an 'er, what now?' when the email arrived. The last time we got something like this was an email from James Murdoch closing the News of the World down.

Murdoch addresses "this situation" at the Sun -- "a source of great pain" for him -- by telling employees:

We will obey the law . . . I made a commitment last summer that I would do everything I could to get to the bottom of our problems and make this Company an example to Fleet Street of ethical journalism.

He also announced, in the strongest show of solidarity yet with accused Sun staff, that News Corps would pay their legal expenses, lift all suspensions and welcome back to work those arrested and bailed.

In his NS Media column this week Peter Wilby suggested a future for the media mogul's British titles, noting the association with him, as it stands, is still "toxic" for the brands:

Murdoch closed the NoW with reluctance, but the almost inevitable conclusion of this long-running scandal is that he sells both the Sun and the NoW (the title of which he still owns). Freed of the toxicity of their association with Murdoch, they might be worth around £1bn. The fate of the Times and Sunday Times is anyone's guess. Perhaps, as Michael Wolff, Murdoch's most recent biographer, has suggested, he could endow an independent trust to keep them going. That would at least provide a dignified conclusion to Murdoch's 43-year career as a British newspaper proprietor.

Rupert Murdoch email to News International staff

Dear Colleagues:

I've worked alongside you for 43 years to build The Sun into one of the world's finest papers. It is a part of me and is one of our proudest achievements. The Sun occupies a unique and important position within News Corporation.

I have immense respect for our heritage, your exceptional journalism and, above all, you, the talented women and men who work tirelessly every day to ensure our readers have access to such a trusted news source. I believe this newsroom is full of great journalists and I remain grateful for your superb work and for the stories you uncover to inform and protect the public. None more so than over the last three weeks.

My continuing respect makes this situation a source of great pain for me, as I know it is for each of you.

We will obey the law. Illegal activities simply cannot and will not be tolerated - at any of our publications. Our Board of Directors, our management team and I take these issues very seriously.

Our independently chaired Management & Standards Committee, which operates outside of News International, has been instructed to cooperate with the police. We will turn over every piece of evidence we find -- not just because we are obligated to but because it is the right thing to do.

We are doing everything we can to assist those who were arrested -- all suspensions are hereby lifted until or whether charged and they are welcome to return to work. News Corporation will cover their legal expenses. Everyone is innocent unless proven otherwise.

I made a commitment last summer that I would do everything I could to get to the bottom of our problems and make this Company an example to Fleet Street of ethical journalism. We will continue to ensure that all appropriate steps are taken to protect legitimate journalistic privilege and sources, which I know are essential for all of you to do your jobs. But we cannot protect people who have paid public officials.

I am confident we can live by these commitments and still produce great journalism.

We will build on The Sun's proud heritage by launching The Sun on Sunday very soon. Our duty is to expand one of the world's most widely read newspapers and reach even more people than ever before.

Having a winning paper is the best answer to our critics.

I am even more determined to see The Sun continue to fight for its readers and its beliefs. I am staying with you all, in London, for the next several weeks to give you my unwavering support.

I am confident we will get through this together and emerge stronger.

Thank you,
Rupert Murdoch

Alice Gribbin is a Teaching-Writing Fellow at the Iowa Writers' Workshop. She was formerly the editorial assistant at the New Statesman.

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Is anyone prepared to solve the NHS funding crisis?

As long as the political taboo on raising taxes endures, the service will be in financial peril. 

It has long been clear that the NHS is in financial ill-health. But today's figures, conveniently delayed until after the Conservative conference, are still stunningly bad. The service ran a deficit of £930m between April and June (greater than the £820m recorded for the whole of the 2014/15 financial year) and is on course for a shortfall of at least £2bn this year - its worst position for a generation. 

Though often described as having been shielded from austerity, owing to its ring-fenced budget, the NHS is enduring the toughest spending settlement in its history. Since 1950, health spending has grown at an average annual rate of 4 per cent, but over the last parliament it rose by just 0.5 per cent. An ageing population, rising treatment costs and the social care crisis all mean that the NHS has to run merely to stand still. The Tories have pledged to provide £10bn more for the service but this still leaves £20bn of efficiency savings required. 

Speculation is now turning to whether George Osborne will provide an emergency injection of funds in the Autumn Statement on 25 November. But the long-term question is whether anyone is prepared to offer a sustainable solution to the crisis. Health experts argue that only a rise in general taxation (income tax, VAT, national insurance), patient charges or a hypothecated "health tax" will secure the future of a universal, high-quality service. But the political taboo against increasing taxes on all but the richest means no politician has ventured into this territory. Shadow health secretary Heidi Alexander has today called for the government to "find money urgently to get through the coming winter months". But the bigger question is whether, under Jeremy Corbyn, Labour is prepared to go beyond sticking-plaster solutions. 

George Eaton is political editor of the New Statesman.