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.

Photo: Getty Images
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Autumn Statement 2015: George Osborne abandons his target

How will George Osborne close the deficit after his U-Turns? Answer: he won't, of course. 

“Good governments U-Turn, and U-Turn frequently.” That’s Andrew Adonis’ maxim, and George Osborne borrowed heavily from him today, delivering two big U-Turns, on tax credits and on police funding. There will be no cuts to tax credits or to the police.

The Office for Budget Responsibility estimates that, in total, the government gave away £6.2 billion next year, more than half of which is the reverse to tax credits.

Osborne claims that he will still deliver his planned £12bn reduction in welfare. But, as I’ve written before, without cutting tax credits, it’s difficult to see how you can get £12bn out of the welfare bill. Here’s the OBR’s chart of welfare spending:

The government has already promised to protect child benefit and pension spending – in fact, it actually increased pensioner spending today. So all that’s left is tax credits. If the government is not going to cut them, where’s the £12bn come from?

A bit of clever accounting today got Osborne out of his hole. The Universal Credit, once it comes in in full, will replace tax credits anyway, allowing him to describe his U-Turn as a delay, not a full retreat. But the reality – as the Treasury has admitted privately for some time – is that the Universal Credit will never be wholly implemented. The pilot schemes – one of which, in Hammersmith, I have visited myself – are little more than Potemkin set-ups. Iain Duncan Smith’s Universal Credit will never be rolled out in full. The savings from switching from tax credits to Universal Credit will never materialise.

The £12bn is smaller, too, than it was this time last week. Instead of cutting £12bn from the welfare budget by 2017-8, the government will instead cut £12bn by the end of the parliament – a much smaller task.

That’s not to say that the cuts to departmental spending and welfare will be painless – far from it. Employment Support Allowance – what used to be called incapacity benefit and severe disablement benefit – will be cut down to the level of Jobseekers’ Allowance, while the government will erect further hurdles to claimants. Cuts to departmental spending will mean a further reduction in the numbers of public sector workers.  But it will be some way short of the reductions in welfare spending required to hit Osborne’s deficit reduction timetable.

So, where’s the money coming from? The answer is nowhere. What we'll instead get is five more years of the same: increasing household debt, austerity largely concentrated on the poorest, and yet more borrowing. As the last five years proved, the Conservatives don’t need to close the deficit to be re-elected. In fact, it may be that having the need to “finish the job” as a stick to beat Labour with actually helped the Tories in May. They have neither an economic imperative nor a political one to close the deficit. 

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.