The BBC walks into another political row as it hands Entwistle £450,000

The corporation has exposed itself to the charge of "rewarding failure".

Update: Downing Street has now responded, saying that Entwistle's payoff is "hard to justify" but is a matter for his "conscience". As I said below, it is hard to see Entwistle prevailing at a time when the BBC's reputation has already been so damaged.

If the BBC wants to restore public confidence, it's hard to think of a worse move than handing George Entwistle, who resigned as director general after just 53 days in the job, a payoff of £450,000, the equivalent of a year's salary and double the contractually required amount. In her capacity as shadow media secretary, Harriet Harman has criticised the payout as "a reward for failure" and has urged Entwistle to "decline to accept any more than is required under his contract".

The government, wary of being seen to compromise the BBC's independence, has not commented, but Conservative MP John Whittingdale, who chairs the commons media committee, said that "people would be very surprised that somebody who was in the job for such a short period of time and then had to leave in these circumstances should be walking away with £450,000 of licence fee-payers' money." He also rejected the BBC's argument that the payout was justified since Entwistle would "continue to help on BBC business, most specifically the two ongoing inquiries." He said: "I wouldn't have thought that just because you have to help any inquiry into the Savile allegations you necessarily need to be paid such a large amount of money."

Some have defended the payout on the grounds that Entwistle did not bear primary responsibility for the scandal (and so deserves our sympathy) and that the frequency with which director generals are forced to resign - half of those appointed since 1982 have had to resign over BBC output - means the corporation must offer generous terms to its managers. But whether or not the payout is justified in principle, as a tactical move it's disastrous, a gift to the BBC's many enemies. Having previously forced RBS chief executive Stephen Hester to renounce his bonus, the politicians will fancy their chances of success. In the current climate, it is hard to see Entwistle prevailing.

A journalist is seen presenting in front of camera, outside the BBC's new Broadcasting House in central London. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Geoffrey Howe dies, aged 88

Howe was Margaret Thatcher's longest serving Cabinet minister – and the man credited with precipitating her downfall.

The former Conservative chancellor Lord Howe, a key figure in the Thatcher government, has died of a suspected heart attack, his family has said. He was 88.

Geoffrey Howe was the longest-serving member of Margaret Thatcher's Cabinet, playing a key role in both her government and her downfall. Born in Port Talbot in 1926, he began his career as a lawyer, and was first elected to parliament in 1964, but lost his seat just 18 months later.

Returning as MP for Reigate in the Conservative election victory of 1970, he served in the government of Edward Heath, first as Solicitor General for England & Wales, then as a Minister of State for Trade. When Margaret Thatcher became opposition leader in 1975, she named Howe as her shadow chancellor.

He retained this brief when the party returned to government in 1979. In the controversial budget of 1981, he outlined a radical monetarist programme, abandoning then-mainstream economic thinking by attempting to rapidly tackle the deficit at a time of recession and unemployment. Following the 1983 election, he was appointed as foreign secretary, in which post he negotiated the return of Hong Kong to China.

In 1989, Thatcher demoted Howe to the position of leader of the house and deputy prime minister. And on 1 November 1990, following disagreements over Britain's relationship with Europe, he resigned from the Cabinet altogether. 

Twelve days later, in a powerful speech explaining his resignation, he attacked the prime minister's attitude to Brussels, and called on his former colleagues to "consider their own response to the tragic conflict of loyalties with which I have myself wrestled for perhaps too long".

Labour Chancellor Denis Healey once described an attack from Howe as "like being savaged by a dead sheep" - but his resignation speech is widely credited for triggering the process that led to Thatcher's downfall. Nine days later, her premiership was over.

Howe retired from the Commons in 1992, and was made a life peer as Baron Howe of Aberavon. He later said that his resignation speech "was not intended as a challenge, it was intended as a way of summarising the importance of Europe". 

Nonetheless, he added: "I am sure that, without [Thatcher's] resignation, we would not have won the 1992 election... If there had been a Labour government from 1992 onwards, New Labour would never have been born."

Jonn Elledge is the editor of the New Statesman's sister site CityMetric. He is on Twitter, far too much, as @JonnElledge.