Rebekah and Charlie Brooks leaving the High Court, 2012. Photo: Getty
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Rebekah Brooks' statement on trial

Former NOTW editor speaks out.

After being cleared this week of all charges related to phone hacking, Rebekah Brooks made her first public comments on the trial:

Of course the last few years have been tough for both of us and for those closest to us, but more importantly they’ve been tough for everybody on all sides that have been affected by the issues highlighted by this case. And therefore throughout the three-year police investigation and through our eight-month trial at the Old Bailey, we’ve always tried to keep our troubles in perspective. I mean, after all we have a happy and healthy daughter, we have our brave and resolute mums that have been at court most of the time and we’ve had strong and unwavering support from all our friends, our family and from our legal teams that have believed in us from the beginning.
“I am innocent of the crimes that I was charged with and I feel vindicated by the unanimous verdicts. When I was arrested, it was in the middle of a maelstrom of controversy, of politics and of comment. Some of that was fair, but much of it was not so I am grateful for the jury – very grateful for the jury for coming to their decision.
“I think I’d like to say it’s been a time of reflection for me. I’ve learnt some valuable lessons and hopefully I’m the wiser for it...
“I’m incredibly proud of the many journalists I’ve worked with throughout my career and the great campaigns that we have fought and won… All I can say to you all is that today my thoughts are with my former colleagues and their families who face future trials. I’m going to do everything I can to support them as I know how anxious the times ahead are.”

Charlie Brooks, her husband, added:

Thank you all for coming. In the last 48 hours, I’ve had to focus on being a racehorse trainer, but actually I have very little to add to what we both said over two years ago when we were charged. Everything – absolutely everything – we said two years ago has proved to be true. Rebekah has been through an unprecedented investigation of an incredibly forensic and personal nature, the likes of which we have probably never seen and I would just like to say how proud I am of Rebekah and of the dignity she has shown.”

Photo: Getty Images
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There are risks as well as opportunities ahead for George Osborne

The Chancellor is in a tight spot, but expect his political wiles to be on full display, says Spencer Thompson.

The most significant fiscal event of this parliament will take place in late November, when the Chancellor presents the spending review setting out his plans for funding government departments over the next four years. This week, across Whitehall and up and down the country, ministers, lobbyists, advocacy groups and town halls are busily finalising their pitches ahead of Friday’s deadline for submissions to the review

It is difficult to overstate the challenge faced by the Chancellor. Under his current spending forecast and planned protections for the NHS, schools, defence and international aid spending, other areas of government will need to be cut by 16.4 per cent in real terms between 2015/16 and 2019/20. Focusing on services spending outside of protected areas, the cumulative cut will reach 26.5 per cent. Despite this, the Chancellor nonetheless has significant room for manoeuvre.

Firstly, under plans unveiled at the budget, the government intends to expand capital investment significantly in both 2018-19 and 2019-20. Over the last parliament capital spending was cut by around a quarter, but between now and 2019-20 it will grow by almost 20 per cent. How this growth in spending should be distributed across departments and between investment projects should be at the heart of the spending review.

In a paper published on Monday, we highlighted three urgent priorities for any additional capital spending: re-balancing transport investment away from London and the greater South East towards the North of England, a £2bn per year boost in public spending on housebuilding, and £1bn of extra investment per year in energy efficiency improvements for fuel-poor households.

Secondly, despite the tough fiscal environment, the Chancellor has the scope to fund a range of areas of policy in dire need of extra resources. These include social care, where rising costs at a time of falling resources are set to generate a severe funding squeeze for local government, 16-19 education, where many 6th-form and FE colleges are at risk of great financial difficulty, and funding a guaranteed paid job for young people in long-term unemployment. Our paper suggests a range of options for how to put these and other areas of policy on a sustainable funding footing.

There is a political angle to this as well. The Conservatives are keen to be seen as a party representing all working people, as shown by the "blue-collar Conservatism" agenda. In addition, the spending review offers the Conservative party the opportunity to return to ‘Compassionate Conservatism’ as a going concern.  If they are truly serious about being seen in this light, this should be reflected in a social investment agenda pursued through the spending review that promotes employment and secures a future for public services outside the NHS and schools.

This will come at a cost, however. In our paper, we show how the Chancellor could fund our package of proposed policies without increasing the pain on other areas of government, while remaining consistent with the government’s fiscal rules that require him to reach a surplus on overall government borrowing by 2019-20. We do not agree that the Government needs to reach a surplus in that year. But given this target wont be scrapped ahead of the spending review, we suggest that he should target a slightly lower surplus in 2019/20 of £7bn, with the deficit the year before being £2bn higher. In addition, we propose several revenue-raising measures in line with recent government tax policy that together would unlock an additional £5bn of resource for government departments.

Make no mistake, this will be a tough settlement for government departments and for public services. But the Chancellor does have a range of options open as he plans the upcoming spending review. Expect his reputation as a highly political Chancellor to be on full display.

Spencer Thompson is economic analyst at IPPR