Men walk past a bank of television screens in the BBC headquarters at New Broadcasting House. Photograph: Getty Images
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We must defend the BBC from Murdoch and death by a thousand Tory cuts

If we want to preserve quality public-service broadcasting in Britain, we must defend the Beeb.

Rule one of politics, as Barack Obama’s former chief of staff Rahm Emanuel once remarked, is: “Never allow a crisis to go to waste.” Right-wingers in the UK have heeded his words: they certainly aren’t allowing the crises engulfing the BBC “to go to waste”. And their strategy is as brazen as it is cynical and opportunistic: to magnify and exaggerate the sins of the hated Beeb while quietly minimising the crimes of their friends at News International.

A case in point was Boris Johnson’s Telegraph column of 12 November. After blithely declaring that the “real tragedy” was the “smearing [of] an innocent man’s name” by BBC’s Newsnight (and not, as you might think, the sexual abuse of children), Johnson claimed that Newsnight’s reporting had been “more cruel, revolting and idiotic than anything perpetrated by the News of the World”.

Sorry, what? Dare I remind the Mayor of London that more than 4,000 people have been identified by police as possible victims of phone-hacking, including the families of dead British soldiers, relatives of the 7/7 victims and a murdered schoolgirl? Yet the cultural vandals on the right only have eyes for the BBC, whose existence has always been anathema to their free-market, anti-regulation ideology.

Hysteria and hyperbole

The Newsnight debacle has provided the perfect cover for an attack on the corporation that has been a long time in the making. Remember, in opposition, the Conservative Party in effect allowed James Murdoch and NewsCorp lobbyists to write its media policy. And on coming to office, the Tory-led coalition froze the BBC licence fee for six years. An unavoidable cost-cutting measure, perhaps? Not quite: a gleeful David Cameron let the mask slip when he referred to the BBC “deliciously” having to slash its budget. (For the record, the BBC costs each licensed household less than 40p a day.)

In recent weeks, conservatives – both big and small “c” – have queued up to denounce the broadcaster and demand that it be downsized or even broken up. “The BBC must do less, and do it better,” declaimed the Telegraph on 13 November. The Defence Secretary, the Conservative Philip Hammond, suggested in (where else?) a BBC radio interview that the future of the licence fee might be in doubt.

What we are witnessing is a shameless, co-ordinated assault on the BBC’s reputation and output by Conservative politicians and by their outriders in the right-wing media echo chamber. Don’t believe me? Ask yourself: where were these doughty Tory defenders of media ethics when Christopher Jefferies, the landlord of the murdered architect Joanna Yeates, was being smeared as a “creepy” killer by the press? Eight newspapers, including the Sun, the Mirror and the Daily Mail, had to pay “substantial” libel damages to the former schoolmaster. None of those papers’ editors quit his job; none “stood aside” from his post pending an independent inquiry.

It is also worth asking why so few Tory MPs and Tory-supporting columnists have gone after ITV – the network on which the presenter Phillip Schofield idiotically ambushed the Prime Minister, live on air, with a list of alleged paedophiles culled from the internet. Schofield is still in his job. So, too, are the chairman and chief executive of ITV.

To try to delegitimise or dismantle the BBC, the world’s biggest and best broadcaster, on the basis of Newsnight’s double failure – first over Jimmy Savile, then over Lord McAlpine – is unfair both to the corporation and to Newsnight itself. Ask the brave people of the besieged Syrian city of Homs what they think of the show. Newsnight’s acclaimed film Undercover in Homs, which reported their plight to Britain, won an Amnesty media award in May.

The BBC is bigger than Newsnight – though you might not have guessed it from the recent hysteria and hyperbole in the press. Consider some of the award-winning and popular BBC output of the past 12 months: Panorama, David Attenborough’s Frozen Planet, Andrew Marr’s History of the World, Strictly Come Dancing, The Archers, Sherlock, the Today programme, Children in Need, the Proms, Woman’s Hour, CBeebies . . . the list goes on. Figures released by the corporation suggest 96 per cent of the UK population consumes BBC services every week.

The inconvenient truth for right-wingers is that their hatred of the taxpayer-funded, publicly owned BBC has never been shared by the tax-paying public. As the Financial Times noted on 12 November: “In a survey by Ofcom, the media regulator, in November 2011, 59 per cent of people said the BBC was the news source they most trusted. The next, ITV News, scored 7 per cent.” The reporters added: “No newspaper beat 2 per cent.”

Beware the Rupert

The BBC has bent over backwards to hold itself to account. How many other media organisations would have allowed their editor-in-chief to be flayed in public by one of his own employees, as Ent­wistle was by the Today programme’s John Humphrys on 10 November?

Full disclosure: I was once a BBC employee and I now do paid punditry for various BBC programmes. But I am no dewy-eyed defender of Auntie: I have, on these pages, condemned the Beeb’s “establishment bias . . . towards power and privilege, tradition and orthodoxy” and its “stomach-churning” coverage of the monarchy. And I agree that the corporation’s “bonkers” (© David Dimbleby) management structure is stuffed with “cowards and incompetents” (© Jeremy Paxman).

But what is the alternative? Death by a thousand Tory cuts? The Foxification of the British media landscape? Make no mistake, Rupert Murdoch – who incidentally hasn’t had to resign as chief executive of a media company where phone-hacking was conducted on an industrial scale – is waiting in the wings.

The BBC, despite its many faults, must be protected from its right-wing enemies. In the battle to preserve high-quality, non-partisan public-service broadcasting, Auntie is our last line of defence.

Mehdi Hasan is political director of the Huffington Post UK and a contributing writer to the New Statesman. This piece is crossposted with the Huffington Post here

Mehdi Hasan is a contributing writer for the New Statesman and the co-author of Ed: The Milibands and the Making of a Labour Leader. He was the New Statesman's senior editor (politics) from 2009-12.

This article first appeared in the 19 November 2012 issue of the New Statesman, The plot against the BBC

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Q&A: What are tax credits and how do they work?

All you need to know about the government's plan to cut tax credits.

What are tax credits?

Tax credits are payments made regularly by the state into bank accounts to support families with children, or those who are in low-paid jobs. There are two types of tax credit: the working tax credit and the child tax credit.

What are they for?

To redistribute income to those less able to get by, or to provide for their children, on what they earn.

Are they similar to tax relief?

No. They don’t have much to do with tax. They’re more of a welfare thing. You don’t need to be a taxpayer to receive tax credits. It’s just that, unlike other benefits, they are based on the tax year and paid via the tax office.

Who is eligible?

Anyone aged over 16 (for child tax credits) and over 25 (for working tax credits) who normally lives in the UK can apply for them, depending on their income, the hours they work, whether they have a disability, and whether they pay for childcare.

What are their circumstances?

The more you earn, the less you are likely to receive. Single claimants must work at least 16 hours a week. Let’s take a full-time worker: if you work at least 30 hours a week, you are generally eligible for working tax credits if you earn less than £13,253 a year (if you’re single and don’t have children), or less than £18,023 (jointly as part of a couple without children but working at least 30 hours a week).

And for families?

A family with children and an income below about £32,200 can claim child tax credit. It used to be that the more children you have, the more you are eligible to receive – but George Osborne in his most recent Budget has limited child tax credit to two children.

How much money do you receive?

Again, this depends on your circumstances. The basic payment for a single claimant, or a joint claim by a couple, of working tax credits is £1,940 for the tax year. You can then receive extra, depending on your circumstances. For example, single parents can receive up to an additional £2,010, on top of the basic £1,940 payment; people who work more than 30 hours a week can receive up to an extra £810; and disabled workers up to £2,970. The average award of tax credit is £6,340 per year. Child tax credit claimants get £545 per year as a flat payment, plus £2,780 per child.

How many people claim tax credits?

About 4.5m people – the vast majority of these people (around 4m) have children.

How much does it cost the taxpayer?

The estimation is that they will cost the government £30bn in April 2015/16. That’s around 14 per cent of the £220bn welfare budget, which the Tories have pledged to cut by £12bn.

Who introduced this system?

New Labour. Gordon Brown, when he was Chancellor, developed tax credits in his first term. The system as we know it was established in April 2003.

Why did they do this?

To lift working people out of poverty, and to remove the disincentives to work believed to have been inculcated by welfare. The tax credit system made it more attractive for people depending on benefits to work, and gave those in low-paid jobs a helping hand.

Did it work?

Yes. Tax credits’ biggest achievement was lifting a record number of children out of poverty since the war. The proportion of children living below the poverty line fell from 35 per cent in 1998/9 to 19 per cent in 2012/13.

So what’s the problem?

Well, it’s a bit of a weird system in that it lets companies pay wages that are too low to live on without the state supplementing them. Many also criticise tax credits for allowing the minimum wage – also brought in by New Labour – to stagnate (ie. not keep up with the rate of inflation). David Cameron has called the system of taxing low earners and then handing them some money back via tax credits a “ridiculous merry-go-round”.

Then it’s a good thing to scrap them?

It would be fine if all those low earners and families struggling to get by would be given support in place of tax credits – a living wage, for example.

And that’s why the Tories are introducing a living wage...

That’s what they call it. But it’s not. The Chancellor announced in his most recent Budget a new minimum wage of £7.20 an hour for over-25s, rising to £9 by 2020. He called this the “national living wage” – it’s not, because the current living wage (which is calculated by the Living Wage Foundation, and currently non-compulsory) is already £9.15 in London and £7.85 in the rest of the country.

Will people be better off?

No. Quite the reverse. The IFS has said this slightly higher national minimum wage will not compensate working families who will be subjected to tax credit cuts; it is arithmetically impossible. The IFS director, Paul Johnson, commented: “Unequivocally, tax credit recipients in work will be made worse off by the measures in the Budget on average.” It has been calculated that 3.2m low-paid workers will have their pay packets cut by an average of £1,350 a year.

Could the government change its policy to avoid this?

The Prime Minister and his frontbenchers have been pretty stubborn about pushing on with the plan. In spite of criticism from all angles – the IFS, campaigners, Labour, The Sun – Cameron has ruled out a review of the policy in the Autumn Statement, which is on 25 November. But there is an alternative. The chair of parliament’s Work & Pensions Select Committee and Labour MP Frank Field has proposed what he calls a “cost neutral” tweak to the tax credit cuts.

How would this alternative work?

Currently, if your income is less than £6,420, you will receive the maximum amount of tax credits. That threshold is called the gross income threshold. Field wants to introduce a second gross income threshold of £13,100 (what you earn if you work 35 hours a week on minimum wage). Those earning a salary between those two thresholds would have their tax credits reduced at a slower rate on whatever they earn above £6,420 up to £13,100. The percentage of what you earn above the basic threshold that is deducted from your tax credits is called the taper rate, and it is currently at 41 per cent. In contrast to this plan, the Tories want to halve the income threshold to £3,850 a year and increase the taper rate to 48 per cent once you hit that threshold, which basically means you lose more tax credits, faster, the more you earn.

When will the tax credit cuts come in?

They will be imposed from April next year, barring a u-turn.

Anoosh Chakelian is deputy web editor at the New Statesman.