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Labour must go for growth

Alistair Darling must use the pre-Budget report to explain why the Tories would take us deeper into

David Cameron believes the biggest economic challenge facing the country is government debt. He's wrong. The real challenge is delivering strong and sustainable growth.

This year the government deficit will amount to roughly 12.5 per cent of GDP. But this is the right approach in a recession. Government spending is compensating for a lack of private spending - as households repay debt and businesses either can't or won't invest (because banks won't lend). But the debt ratio is not unique and, indeed, is in line with the other G8 economies. Yes, we need to bring the debt and deficit down - but it is not the immediate or biggest challenge we face, and to reduce the deficit now would prolong the recession and pain to businesses and families.

The surest way out of the debt problem is economic growth - growth will boost tax revenues, reduce unemployment and hence government spending. A strategy for growth should be the focus of Alistair Darling's pre-Budget report (PBR).

Foremost in this strategy must be investment in the jobs and industries of the future. The UK has the potential to generate 400,000 jobs in green industries in the next few years. But there is no guarantee that hi-tech, high-skilled jobs will come to the UK. It is hard in the current economic environment for businesses and entrepreneurs with innovative and exciting ideas to secure funding for long-term investment. A national infrastructure, or investment bank, would enable government and business to act in partnership to build the future jobs the economy needs.

Second, to get growth back on track we must ensure that businesses and families can access bank finance at affordable rates. And, as we rebuild the economy, we must restructure the financial sector so that it cannot bring the economy to its knees again but instead fulfil the role it should provide - to channel savings to sensible investment.

The PBR should address these challenges directly, with legally enforceable lending targets for banks - focusing on money out of the bank door, not offers of loans at rates so extortionate that businesses can't afford to take them up. The lack of bank lending reflects a desire on the part of banks to rebuild their balance sheets, but without a strong business sector the banks will certainly incur further losses. Better instead for banks to improve their balance sheets through reduced bonus payouts. So, the PBR should also include a windfall tax on the excessive profits of banks or a 60 per cent rate of tax on bonuses of over £10,000. This would discourage payouts which are eroding bank capital, improve the public finances - which in large part have deteriorated because of support to the bailed-out banks - and begin to tackle the reckless bonus culture that got us in to this predicament.

Looking forward, there must be no return to "business as usual" in the banking sector - the "socially useless" functions of banks must be addressed. The PBR should include a review of the size and ownership model of our banks, including proposals to support the growth of building societies, and a commitment to look seriously at the remutualisation of Northern Rock.

But while it is essential that government does not withdraw the stimulus yet, it would be irresponsible not to commit to reducing the deficit as the economy recovers. Sound public finances are important for economic growth. Labour knows this, which it is why, between 1997 and 2006, the debt burden was cut from 42.5 to 36 per cent of GDP, reducing debt interest payments and freeing up money for investment in public services. Large budget deficits are needed during the recession to pump-prime the economy, but not when growth is back on track.

Through a combination of strong growth, tax increases and spending cuts, halving the budget deficit in four years is achievable but a credible plan for doing so is needed. At the moment, the right is winning the argument on how to achieve this, emphasising the burden that public spending will bear. Yet research by the think tank Compass shows that 78 per cent of people think the richest 10 per cent should pay at least the same percentage of their incomes in tax as the poorest. Moreover, the support for the new 50 per cent tax rate, and the growing discomfort around Tory proposals to reduce taxes for 3,000 millionaires by £200,000, shows that the country is more progressive than government gives them credit for. Deficit reduction must be shared between tax increases and spending cuts; and, again, growth will reduce the burden of the debt.

Contrast this growth approach with the rhetoric of George Osborne, the shadow chancellor. Osborne wants to cut spending right now, against all the historical evidence and against the international consensus. As Dominique Strauss-Kahn, managing director of the International Monetary Fund, said on 23 November: "We recommend erring on the side of caution, as exiting [from stimulus plans] too early is costlier than exiting too late."

But Osborne is not listening to the evidence. His approach threatens the recovery by taking money out of the economy at precisely the time it is doing most good. The risks of a double-dip recession have not gone away, and would be higher if government withdraws - you need only look at Japan in the 1990s or the US in the 1930s to see that.

In reality, Cameron and Osborne's desire for cuts are motivated by an ideological zeal to reduce the size of the state, rather than an economically literate strategy to build a strong economy.

The PBR is an opportunity for Darling to put down a challenge to Osborne. Will the Tories invest in the jobs and technologies of the future? Will they have the courage to take on those in the City who still argue for light-touch regulation? Or will they stick with their siren call - "cut spending now"? The economy remains in recession and the global recovery is fragile. With an election fast approaching, Darling must set out Labour's strategy for growth and deficit reduction with an ambitious pre-Budget report.

Rachel Reeves is the Labour parliamentary candidate for Leeds West

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Rough justice: who is looking out for the wrongfully convicted?

How internet sleuths - and secret courts - have changed the reporting of miscarriages of justice.

The letter from Whitemoor Prison in Cambridgeshire was in poor English but its message was clear. The writer claimed he was serving a life sentence for a murder that he had not committed. What was also clear was that this was no ordinary case. Not only was the victim a respected author and photographer who lived in one of the most expensive streets in London, but his alleged killer was the grandson of Chairman Mao’s third-in-command and an informant for MI6 whose entire defence at his Old Bailey trial had been heard in secret, with reporters excluded from the court.

It took some weeks to unravel the story of Wang Yam, who was convicted of the murder of Allan Chappelow at his home in Hampstead in 2006. Wang had supposedly broken in to Chappelow’s letter box at his front gate to steal bank details and, according to the prosecution, probably killed him when confronted. The victim’s body was discovered several days later.

In his letter, Wang claimed that because the press had been barred from reporting his defence he had not received a fair trial. With my colleague Richard Norton-Taylor, I wrote a story about the case that appeared in the Guardian in January 2014. Shortly afterwards, a former close neighbour of Chappelow contacted us to say that, after Wang was already in custody, someone had tried to break into his letter box, too, and that the intruder, when discovered, had threatened to kill him and his family. In April, the Criminal Cases Review Commission announced that, as a result of this fresh evidence, the case was going back to the Court of Appeal. It is now expected to be heard soon.

Even though no murder trial had ever been heard in such secrecy at the Old Bailey before or since, the media largely ignored the story. Tales of alleged miscarriage of justice don’t make many waves these days.

As it happens, Wang Yam’s referral to the Appeal Court came just as a large book entitled The Nicholas Cases arrived in my mail. It is by Bob Woffinden and the slightly obscure title is a reference to St Nicholas, better known as Santa Claus, who in early Byzantine times halted the execution of three innocent men and could thus claim to be the patron saint of the wrongfully convicted. And, boy, do they need a saint these days. The author takes ten cases, introduces us to the accused, tells their stories and shares the frustration of the convicted men and women as well as their lawyers and families.

Some of the cases may be familiar. Jonathan King, the former singer and music entrepreneur, was sentenced to seven years in 2001 for sexual offences against boys aged 14 and 15. What is less well known is that he was convicted not of offences relating to his original arrest, but of others that came to light as a result of the media publicity surrounding his case. Another case is that of Gordon Park, convicted of the murder of his wife, Carol, who disappeared in 1976 and whose body was found in Coniston Water in the Lake District in August 1997 (the media named it the “Lady in the Lake trial”). Park was convicted in January 2005. He hanged himself in prison and in despair in January 2010.

Other cases, such as that of Emma Bates, received less press coverage. In 2009 Bates was convicted of the murder of her violent and abusive ex-partner Wayne Hill in Birmingham. She killed Hill with a single stab wound in a confrontation at her home, and it is hard, reading her story, to understand why she is now serving a minimum of 15 years. Woffinden believes that all ten suspects should not have been convicted but he tells their stories in enough detail for one to understand why they were. Each tale unfolds like an intriguing television drama, with our judgements and preconceptions
of innocence or guilt tugged both ways.

Woffinden has ploughed an increasingly lonely furrow on the subject, following in the footsteps of two other campaigning authors. The first was Ludovic Kennedy, whose book 10 Rillington Place, published in 1961, exposed the wrongful hanging of Timothy Evans. The second was Paul Foot, who campaigned relentlessly in Private Eye, the Daily Mirror and in books on many cases, including that of the Bridgewater Four, convicted of the murder of a newspaper boy, Carl Bridgewater, in 1978. Woffinden produced a volume called Miscarriages of Justice
in 1987, and in 2015 he published Bad Show, in which he suggests that Major Charles Ingram, convicted of rigging the TV quiz show Who Wants to Be a Millionaire? by placing allies in the audience who coughed strategically, was innocent.

What is striking about Woffinden’s latest volume, however, is his criticism of the media on three counts. “It is not merely that the media fails to draw attention to wrongful convictions when they occur; it is not just that trials leading to these injustices are misleadingly reported; it is that, in some instances, the media itself has played a key role in bringing about the wrongful conviction,” he writes.

***

For over two centuries, the media have been crucial to both freeing and convicting innocent suspects in murder cases. In 1815 Eliza Fenning, a household cook, appeared at the Old Bailey, charged with attempting to poison her employers with arsenic in their steak and dumplings. It was suggested that she had done so after being scolded for consorting with young male apprentices.

She protested her innocence and a radical writer, William Hone, took up her case, visited her in Newgate Prison and launched a newspaper, the Traveller, to fight for her release. It probably did no harm to her cause that she was young and beautiful; the artist Robert Cruikshank drew her reading the Bible in her cell. It was all to no avail: Fenning was hanged. And yet, ever since, writers and journalists have taken up such cases.

Arthur Conan Doyle campaigned in the Daily Telegraph for George Edalji, ­convicted on the bizarre charge of disembowelling a horse in Staffordshire in 1903. Edalji, an Anglo-Indian solicitor, served three years’ hard labour but was eventually pardoned and concern about his conviction led partly to the creation in 1907 of the Court of Criminal Appeal. (Julian Barnes’s book Arthur & George is based on the case.)

Conan Doyle, too, was active in the campaign to prove the innocence of Oscar Slater, a German Jew convicted of the murder in Glasgow in 1908 of Marion Gilchrist, a wealthy, elderly single woman. Class and anti-Jewish prejudice clearly played a part in the police investigation, and the initial press coverage of the campaign to free him was dismissive. “Efforts most harmful and ill-advised are being made to work up popular feeling and to receive signatures with the object of obtaining a reprieve,” the Scotsman sniffed. “However amiable may be the sentiments that may have prompted some of those who have taken part in the movement, it is one that cannot be otherwise than mischievous and futile.” It took nearly two decades to prove Slater’s innocence. Scottish journalists played an important part in keeping the story alive.

Yet for many years there remained the feeling that such miscarriages of justice were very few. Those who sought to question convictions in contentious cases were often mocked, as was the case when the earliest doubts were expressed about the guilt of the Birmingham Six. “Loony MP backs bomb gang” was the headline in the Sun when the Labour politician and journalist Chris Mullin challenged their conviction. But with the vindication of the Birmingham Six, the Guildford Four, the Maguire Seven and suspects in other so-called “Irish cases”, there was finally a recognition that something was very rotten in the justice system.

There followed a flowering of investigations into dubious cases. In 1982, the BBC launched the TV series Rough Justice, which carried out investigations over the next quarter-century. Some of its journalists went on to found Trial and Error, which did the same for Channel 4 from 1993 to 1999. Concerns about the extent of such cases led to the formation in 1997 of the Criminal Cases Review Commission. It has since referred 629 cases back to the Court of Appeal, 414 of which had been successful; a further 689 cases are under review. But both Rough Justice and Trial and Error were discontinued, victims of media austerity.

Investigations into such cases take time and money. With broadcasters and news­papers forced to tighten their belt, there is little appetite for researching complex claims that may lead nowhere. Meanwhile, the introduction in 2013 of new rules affecting funds for criminal cases has sharply reduced access to legal aid lawyers. Lawyers also suffer from the arcane effects of the Criminal Procedure and Investigations Act 1996, with some solicitors still unsure about what can be released to the media.

There has been a change in the political climate, too. Tony Blair encapsulated this in 2002 when he said: “It is perhaps the biggest miscarriage of justice in today’s system when the guilty walk away unpunished.” The subtext to this is that we shouldn’t be too soft-hearted with every plea of innocence. This attitude is reflected in the way that even those who are eventually cleared on overwhelming evidence are treated.

Previously, victims of miscarriages of justice were compensated financially for their lost years. No longer. Victor Nealon, a former postman, was convicted of attempted rape in 1996 and served 17 years – ten years longer than his recommended tariff, because he continued to protest his innocence. In 2013, after new DNA evidence from the clothes of the assault victim pointed to “an unknown male” as the one responsible for the crime, he was freed with just £46 in his pocket. The Ministry of Justice has declined to compensate Nealon financially because, under the new rules, his innocence has to be proved “beyond reasonable doubt” – that is to say, someone else has to be convicted of the crime. It is an absurd state of affairs.

***

The internet – social media in particular – has given platforms and publicity to those who claim to have been wrongfully convicted. Yet, as Woffinden points out, the web has also had a negative effect, because there are now hundreds of sites dedicated to claims of miscarriages of justice. “The whole history of miscarriages of justice in the UK in the postwar era was based on the ‘top of the pile’ principle,” he argues. “A case reached the top of the pile. It was focused on; it was rectified. Another case then took its place at the top of the pile. Now there are far too many cases jostling for attention, with the result that no case gets adequate attention. As the newspapers’ ability to campaign on these issues has been weakened, so they are less inclined to publish stories that they think aren’t going anywhere.”

It is also much harder for journalists to meet people who claim to be victims. When I wanted to visit Kevin Lane, who has long protested his innocence of the 1994 murder of Robert Magill, shot in a hitman killing in Hertfordshire, it took months before officials granted permission. I was accompanied by a Home Office official and our entire interview at Frankland Prison in County Durham was tape-recorded.

Wang Yam, the MI6 informant, was told at Whitemoor after his story first appeared in the Guardian that he was not allowed to correspond with us again, though the Ministry of Justice claims this is now no longer the case. In the United States, a prisoner who wants to contact a journalist has an automatic right to do so, making investigative reporting much easier.

What about the Innocence Project? This US organisation was founded in 1992 and harnessed the energy of law students to investigate cases of alleged wrongful conviction. For a while, the idea flourished in Britain, too; Bristol University launched a version in 2004. However, such projects now struggle to overcome the same hurdles of access and resources as the media.

Not everyone who claims to be innocent is telling the truth, especially if the crime is especially heinous. One case which received much publicity was that of Simon Hall, who was convicted in 2003 of the horrific murder of Joan Albert, aged 79. It was taken up by Rough Justice after an active campaign on Hall’s behalf but then, in 2013, he told prison officials that he was guilty. In doing so, he gravely undermined the claims of many of the genuinely innocent. He hanged himself in prison the following year. As the former armed robber Noel “Razor” Smith notes in his wry poem “The Old Lags”, prison is full of people who claim they were wrongly convicted:

Yeah, I been stitched right up

It’s funny you should ask

I’m here for what I didn’t do

I didn’t wear a mask!

But there is little editorial outrage about a murder trial being held in secret and scant concern that so many dubious convictions slip by, unreported for reasons of economy, indifference or fashion. Contrast those sil­ences about the law with the apoplectic response to the Supreme Court decision last year to uphold an injunction against the Sun on Sunday reporting the names of the “celebrity threesome”. The Sun called it “the day free speech drowned” and quoted the Tory MP Jacob Rees-Mogg, who described the decision as “a legalistic hijack of our liberty”. The Daily Mail informed readers soberly: “Supreme Court judges yesterday declared that people in England and Wales have no right to know about the sex lives of celebrities.” As if. All that was missing was Tony Hancock: “Does Magna Carta mean nothing to you? Did she die in vain?”

***

Where now for wrongful convictions? Louise Shorter, a former producer on Rough Justice, sees a glimmer of hope. She now works for Inside Justice, the investigative unit attached to the prisoners’ newspaper Inside Time, that was set up in 2010 to investigate wrongful convictions. She acknowledges the current difficulties: “Unravelling a miscarriage of justice case can take a decade or more. Television wants a beginning, middle and end to any story and wants it now, and that’s hard to achieve when the criminal justice wheels turn so very slowly.”

Yet Shorter says that her phone has been ringing off the hook following two successful American ventures: the podcast Serial and the Netflix series Making a Murderer. In September, she presented the two-part BBC documentary Conviction: Murder at the Station, in which she investigated the case of Roger Kearney, who protests his innocence of the murder of his lover Paula Poolton. Her body was found in her car at Southampton train station in 2008. “The media finally latched on to what the public has known for years: real-life whodunnits – or did-they-do-its – always have been and remain immensely popular,” Shorter says.

As Wang Yam awaits his appeal hearing and hundreds of others hope that their cases are heard, let us hope that she is right and that we have not returned to the days when only a “loony MP” or the “mischievous and futile” could challenge the law. 

“We’ll All Be Murdered in Our Beds! The Shocking History of Crime Reporting in Britain” by Duncan Campbell is published by Elliott & Thompson

This article first appeared in the 24 February 2017 issue of the New Statesman, The world after Brexit