Cameron rejects state-backed regulation but Miliband accepts it

Prime Minister says he has "serious concerns and misgivings" over writing the new press regulatory system into law.

As expected, a sharp political divide has opened up between Labour and the Conservatives over the Leveson report. In his statement to the Commons, David Cameron praised most of Leveson's recommendations but declared that he had "serious concerns and misgivings" over his call for a new system of press regulation to be underpinned by statute. This, he suggested, would set a dangerous precedent by "writing elements of press regulation into the law of the land". He warned that this would create "a vehicle for politicians, whether today or some time in the future, to impose regulation and obligations on the press".

But he ended by emphasising that the status quo "is not an option" and said that the press had "a limited period of time" to set up a new regulatory system that complies with "Leveson principles". And, while Cameron is opposed to state-backed regulation on principled as well as pragmatic grounds, he was careful not to rule it out completely.

In his response to Cameron, Ed Miliband began by immediately signalling his disagreement with the PM, stating that he hoped to "convince" him in the days and weeks ahead that "we should put our trust in Lord Justice Leveson's recommendations". Lest there be any doubt that Labour favours state-backed regulation, Miliband went on to say "[Leveson] recommends that both Ofcom’s role and these criteria of independence and effectiveness will be set out in statute, a law of this Parliament. A truly independent regulation of the press, guaranteed by law. Lord Justice Leveson’s proposals are measured, reasonable and proportionate. We on this side unequivocally endorse both the principles set out and his central recommendations."

Cameron is opposed to any form of state involvement, Miliband is unambiguously in favour. The divide could not be clearer. While both have agreed to cross-party talks, it's hard to see, at this stage, how their differences could be bridged.

David Cameron leaves Number 10 Downing Street. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Is anyone prepared to solve the NHS funding crisis?

As long as the political taboo on raising taxes endures, the service will be in financial peril. 

It has long been clear that the NHS is in financial ill-health. But today's figures, conveniently delayed until after the Conservative conference, are still stunningly bad. The service ran a deficit of £930m between April and June (greater than the £820m recorded for the whole of the 2014/15 financial year) and is on course for a shortfall of at least £2bn this year - its worst position for a generation. 

Though often described as having been shielded from austerity, owing to its ring-fenced budget, the NHS is enduring the toughest spending settlement in its history. Since 1950, health spending has grown at an average annual rate of 4 per cent, but over the last parliament it rose by just 0.5 per cent. An ageing population, rising treatment costs and the social care crisis all mean that the NHS has to run merely to stand still. The Tories have pledged to provide £10bn more for the service but this still leaves £20bn of efficiency savings required. 

Speculation is now turning to whether George Osborne will provide an emergency injection of funds in the Autumn Statement on 25 November. But the long-term question is whether anyone is prepared to offer a sustainable solution to the crisis. Health experts argue that only a rise in general taxation (income tax, VAT, national insurance), patient charges or a hypothecated "health tax" will secure the future of a universal, high-quality service. But the political taboo against increasing taxes on all but the richest means no politician has ventured into this territory. Shadow health secretary Heidi Alexander has today called for the government to "find money urgently to get through the coming winter months". But the bigger question is whether, under Jeremy Corbyn, Labour is prepared to go beyond sticking-plaster solutions. 

George Eaton is political editor of the New Statesman.