Leveson: who will blink first, Labour or the Tories?

With some reservations, Labour is inching towards accepting the Tories' proposal of a Royal Charter to underpin a new press regulator.

In the two and a half months since the Leveson report was published, it has often appeared in danger of becoming what its chair described as "a footnote in some professor of journalism’s analysis of the history of the 21st century". But today the Conservatives will finally publish their plans to introduce a new system of press regulation. Having rejected Leveson's recommendation that any new body be underpinned by statute, the Tories have alighted on Oliver Letwin's proposal of a Royal Charter, the mechanism used to establish the BBC and the Bank of England, to formally recognise the new watchdog. 

Press campaigners have already rejected the plan as unacceptable. Evan Harris, the former Lib Dem MP and associate director of Hacked Off, described it as "one of the weakest forms of self-regulation anywhere to oversee one of the presses capable of the worst excesses. This is weaker than the [existing] Press Complaints Commission." But Labour and the Liberal Democrats have refused to rule out supporting this option. While both continue to favour state-backed regulation, they are aware of the need for progress after months of cross-party talks. Labour's decision not 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 was viewed by the Tories as evidence of its willingness to compromise. 

One reason why Labour is more favourable to a Royal Charter than might be thought is that, in practice, it may be largely indistinguishable from state-backed regulation. As Conservative peer Norman Fowler has pointed out, "The final irony of the Letwin plan is that – in spite of all the fine words about how unacceptable it is to have statutory intervention – it looks as though the royal charter will require legislation to enable it to work. How else can the new system of damages and costs be introduced?" Indeed, one of the concerns expressed by Harman is that a Royal Charter (which would require renewal by the government every ten years), would place the ultimate responsibility for press regulation in the hands of ministers, rather than parliament. For now, the desire on all sides to avoid further delay, means a messy compromise is the most likely outcome. 

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.

Photo: Getty Images
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Autumn Statement 2015: George Osborne abandons his target

How will George Osborne close the deficit after his U-Turns? Answer: he won't, of course. 

“Good governments U-Turn, and U-Turn frequently.” That’s Andrew Adonis’ maxim, and George Osborne borrowed heavily from him today, delivering two big U-Turns, on tax credits and on police funding. There will be no cuts to tax credits or to the police.

The Office for Budget Responsibility estimates that, in total, the government gave away £6.2 billion next year, more than half of which is the reverse to tax credits.

Osborne claims that he will still deliver his planned £12bn reduction in welfare. But, as I’ve written before, without cutting tax credits, it’s difficult to see how you can get £12bn out of the welfare bill. Here’s the OBR’s chart of welfare spending:

The government has already promised to protect child benefit and pension spending – in fact, it actually increased pensioner spending today. So all that’s left is tax credits. If the government is not going to cut them, where’s the £12bn come from?

A bit of clever accounting today got Osborne out of his hole. The Universal Credit, once it comes in in full, will replace tax credits anyway, allowing him to describe his U-Turn as a delay, not a full retreat. But the reality – as the Treasury has admitted privately for some time – is that the Universal Credit will never be wholly implemented. The pilot schemes – one of which, in Hammersmith, I have visited myself – are little more than Potemkin set-ups. Iain Duncan Smith’s Universal Credit will never be rolled out in full. The savings from switching from tax credits to Universal Credit will never materialise.

The £12bn is smaller, too, than it was this time last week. Instead of cutting £12bn from the welfare budget by 2017-8, the government will instead cut £12bn by the end of the parliament – a much smaller task.

That’s not to say that the cuts to departmental spending and welfare will be painless – far from it. Employment Support Allowance – what used to be called incapacity benefit and severe disablement benefit – will be cut down to the level of Jobseekers’ Allowance, while the government will erect further hurdles to claimants. Cuts to departmental spending will mean a further reduction in the numbers of public sector workers.  But it will be some way short of the reductions in welfare spending required to hit Osborne’s deficit reduction timetable.

So, where’s the money coming from? The answer is nowhere. What we'll instead get is five more years of the same: increasing household debt, austerity largely concentrated on the poorest, and yet more borrowing. As the last five years proved, the Conservatives don’t need to close the deficit to be re-elected. In fact, it may be that having the need to “finish the job” as a stick to beat Labour with actually helped the Tories in May. They have neither an economic imperative nor a political one to close the deficit. 

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