Cameron faces "Leveson by the backdoor" after Lords defeat

Surprise defeat over press regulation will force the Tories to overturn Lords amendments in the Commons. But will Labour and the Lib Dems let them?

While everyone's attention was on the equal marriage debate, the Conservatives suffered a significant defeat in the House of Lords over press regulation. Taking ministers by surprise, peers voted by 272 to 141 to introduce a low-cost arbitration system for victims of press defamation, one of the key recommendations of the Leveson report. 

Since those papers that do not join up to the system could be punished by courts awarding greater damages and costs, the proposal represents a form of the state-backed regulation that David Cameron has unambiguously rejected. The rebellion notably included senior Tory peers such as Lord Ashcroft (yes, the billionaire party donor and media mogul), Lord Fowler, Lord Hurd and Lord Astor, Cameron's father-in-law. The economist Robert Skidelsky, a crossbench peer and NS contributor, noted that some peers had described the amendments as "Leveson by the backdoor" and added: "To my mind, that is an important merit of the bill because we are unlikely to get Leveson through the front door". Lord Fowler described the move as a "building block in implementing Leveson - a kind of stalking horse".

If the Conservatives want to avoid "Leveson by the backdoor", they will now need to overturn the amendments in the Commons. With Labour and the Liberal Democats both in favour of state-backed regulation, this could prove a challenge for the government.

For now, the long-stalled cross-party talks on Leveson continue, with the parties next due to meet on Monday. During the debate, Lord McNally, the Liberal Democrat leader in the Lords, promised that the government's proposal of a royal charter to oversee press regulation would finally be published next week. As IPPR's Tim Finch noted on The Staggers on Monday, Labour has not ruled out supporting this compromise. In her speech at the think-tank's recent Oxford Media Convention, Harriet Harman, the shadow media secretary, said she was "unpersuaded" by the idea but actions speak louder than words; Labour failed to follow through on its threat to force a Commons vote on its own draft bill in January if the government failed to bring forward satisfactory proposals by Christmas. Moreover, as Tim wrote, "being unpersuaded is not quite the same as being unpersuadable".

The government is confident that the Lib Dems, and possibly Labour, will unite around the proposal of a royal charter. But last night's Lords defeat means Clegg and Miliband now have a powerful bargaining chip.

A protest group stages a mock burning of the Leveson report outside the Queen Elizabeth II centre in London. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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The 5 things the Tories aren't telling you about their manifesto

Turns out the NHS is something you really have to pay for after all. 

When Theresa May launched the Conservative 2017 manifesto, she borrowed the most popular policies from across the political spectrum. Some anti-immigrant rhetoric? Some strong action on rip-off energy firms? The message is clear - you can have it all if you vote Tory.

But can you? The respected thinktank the Institute for Fiscal Studies has now been through the manifesto with a fine tooth comb, and it turns out there are some things the Tory manifesto just doesn't mention...

1. How budgeting works

They say: "a balanced budget by the middle of the next decade"

What they don't say: The Conservatives don't talk very much about new taxes or spending commitments in the manifesto. But the IFS argues that balancing the budget "would likely require more spending cuts or tax rises even beyond the end of the next parliament."

2. How this isn't the end of austerity

They say: "We will always be guided by what matters to the ordinary, working families of this nation."

What they don't say: The manifesto does not backtrack on existing planned cuts to working-age welfare benefits. According to the IFS, these cuts will "reduce the incomes of the lowest income working age households significantly – and by more than the cuts seen since 2010".

3. Why some policies don't make a difference

They say: "The Triple Lock has worked: it is now time to set pensions on an even course."

What they don't say: The argument behind scrapping the "triple lock" on pensions is that it provides an unneccessarily generous subsidy to pensioners (including superbly wealthy ones) at the expense of the taxpayer.

However, the IFS found that the Conservatives' proposed solution - a "double lock" which rises with earnings or inflation - will cost the taxpayer just as much over the coming Parliament. After all, Brexit has caused a drop in the value of sterling, which is now causing price inflation...

4. That healthcare can't be done cheap

They say: "The next Conservative government will give the NHS the resources it needs."

What they don't say: The £8bn more promised for the NHS over the next five years is a continuation of underinvestment in the NHS. The IFS says: "Conservative plans for NHS spending look very tight indeed and may well be undeliverable."

5. Cutting immigration costs us

They say: "We will therefore establish an immigration policy that allows us to reduce and control the number of people who come to Britain from the European Union, while still allowing us to attract the skilled workers our economy needs." 

What they don't say: The Office for Budget Responsibility has already calculated that lower immigration as a result of the Brexit vote could reduce tax revenues by £6bn a year in four years' time. The IFS calculates that getting net immigration down to the tens of thousands, as the Tories pledge, could double that loss.

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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