Hacked Off needs to know when to stop fighting

In danger of plucking defeat out of the jaws of victory.

The campaign group Hacked Off is beginning to resemble a rebel force which doesn’t know when to stop fighting. And it is in danger of plucking defeat out of the jaws of victory with a state-imposed system of press regulation which is set to go to the Queen for approval at the next meeting of the Privy Council on 15 May. This is because there is no point in creating a perfect theoretical system of press regulation which no-one uses.

Hacked Off got a dream deal on 18 March when the three main political parties agreed to a beefed-up Royal Charter-backed system of press regulation. The dream goes that the new regulator will be completely independent of Parliament and the press, editors will be in a minority on its code committee and it will have the ability to compel placement of front-page apologies.

It is backed up by two pieces of legislation which made their way on to the statute books last week. Under the Enterprise and Regulator Reform Act the Royal Charter, once okayed by the Privy Council, cannot be changed without a two thirds majority of both houses of Parliament. Under the Crime and Courts Act, news publishers outside the state-approved regulator will be subject to exemplary damages and increased libel and privacy case legal costs (except for a large list of exempt titles including blogs which turn over less than £2m and council-run newspapers).

For Hacked Off it is the perfect solution. Perfect except for the fact that most of the newspaper and magazine industry have now said they cannot stomach it. And without the buy-in of publishers themselves a new system of self-regulation cannot work.

Publishers have rebelled because they refuse to surrender total control over the regulator. That is no longer self-regulation as envisaged by Leveson, they say, and in any case they question why they should fund and organise what is effectively a quango. The regional press is deeply concerned that the arbitration arm set out in the Charter will lead to “crippling” new libel claims being made against them. And there remains a profound principled objection to a statute-backed system of regulation being imposed on publishers by the state. Their solution is to resolutely reject the Government plan and instead offer their own Royal Charter.

The main differences between their plan and the Government one are outlined here, but in a nutshell the publishers want:

  • A representative on the Recognition Panel which will licence the new regulator (and the ability to veto appointments to the board)
  • An arbitration arm which is optional rather than obligatory
  • No legislative underpinning but instead a system where a unanimous vote of the Recognition Panel, the regulator’s board and the various industry trade associations can agree to amend the charter.

The two sides are not so far apart that a deal cannot be done. But this will need publishers, representatives of the ‘victims’ and Parliamentarians to put down their rhetorical weapons and  negotiate.

The press cannot be compelled to join a regulator which most publishers fundamentally disagree with any more than the Government can regulate any citizen’s right to express themselves as they wish (within the bounds of libel, privacy and the criminal law on contempt of court).

If the Government Royal Charter to regulate the press is signed by the Queen in two week’s time, some publishers could ignore it and create their own regulator taking a chance on exemplary damages rules which may, in any case, be unenforceable. Many more titles might opt to be part of no regulator at all leaving the victims of future press excesses and mistakes with nowhere to turn. So for the sake of the victims, Hacked Off (like the publishers) now has to take a more pragmatic approach.

Hugh Grant, Hacked Off campaigner. Photograph: Getty Images

Dominic Ponsford is editor of Press Gazette

Photo: Getty Images
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How can Britain become a nation of homeowners?

David Cameron must unlock the spirit of his postwar predecessors to get the housing market back on track. 

In the 1955 election, Anthony Eden described turning Britain into a “property-owning democracy” as his – and by extension, the Conservative Party’s – overarching mission.

60 years later, what’s changed? Then, as now, an Old Etonian sits in Downing Street. Then, as now, Labour are badly riven between left and right, with their last stay in government widely believed – by their activists at least – to have been a disappointment. Then as now, few commentators seriously believe the Tories will be out of power any time soon.

But as for a property-owning democracy? That’s going less well.

When Eden won in 1955, around a third of people owned their own homes. By the time the Conservative government gave way to Harold Wilson in 1964, 42 per cent of households were owner-occupiers.

That kicked off a long period – from the mid-50s right until the fall of the Berlin Wall – in which home ownership increased, before staying roughly flat at 70 per cent of the population from 1991 to 2001.

But over the course of the next decade, for the first time in over a hundred years, the proportion of owner-occupiers went to into reverse. Just 64 percent of households were owner-occupier in 2011. No-one seriously believes that number will have gone anywhere other than down by the time of the next census in 2021. Most troublingly, in London – which, for the most part, gives us a fairly accurate idea of what the demographics of Britain as a whole will be in 30 years’ time – more than half of households are now renters.

What’s gone wrong?

In short, property prices have shot out of reach of increasing numbers of people. The British housing market increasingly gets a failing grade at “Social Contract 101”: could someone, without a backstop of parental or family capital, entering the workforce today, working full-time, seriously hope to retire in 50 years in their own home with their mortgage paid off?

It’s useful to compare and contrast the policy levers of those two Old Etonians, Eden and Cameron. Cameron, so far, has favoured demand-side solutions: Help to Buy and the new Help to Buy ISA.

To take the second, newer of those two policy innovations first: the Help to Buy ISA. Does it work?

Well, if you are a pre-existing saver – you can’t use the Help to Buy ISA for another tax year. And you have to stop putting money into any existing ISAs. So anyone putting a little aside at the moment – not going to feel the benefit of a Help to Buy ISA.

And anyone solely reliant on a Help to Buy ISA – the most you can benefit from, if you are single, it is an extra three grand from the government. This is not going to shift any houses any time soon.

What it is is a bung for the only working-age demographic to have done well out of the Coalition: dual-earner couples with no children earning above average income.

What about Help to Buy itself? At the margins, Help to Buy is helping some people achieve completions – while driving up the big disincentive to home ownership in the shape of prices – and creating sub-prime style risks for the taxpayer in future.

Eden, in contrast, preferred supply-side policies: his government, like every peacetime government from Baldwin until Thatcher’s it was a housebuilding government.

Why are house prices so high? Because there aren’t enough of them. The sector is over-regulated, underprovided, there isn’t enough housing either for social lets or for buyers. And until today’s Conservatives rediscover the spirit of Eden, that is unlikely to change.

I was at a Conservative party fringe (I was on the far left, both in terms of seating and politics).This is what I said, minus the ums, the ahs, and the moment my screensaver kicked in.

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