Cameron is preparing for defeat over Leveson

The PM's repeated references to "a hung parliament" suggest that he expects Labour and the Lib Dems to combine forces and defeat him in Monday's vote.

After months of trying and failing to reach agreement on a new system of press regulation, David Cameron has decided to call Ed Miliband and Nick Clegg's bluff. A Commons vote will now be held on Monday night on his proposed Royal Charter model, with government amendments submitted to the crime and courts bill in order to "bring this to a head". 

At his press conference at Downing Street, Cameron dared Labour and the Lib Dems to support him or being their forward own rival amendments. "They can back my amendments and support this Royal Charter to secure a workable new system," he said, "or they can grandstand and end up with a system that I believe won’t work". Cameron later confirmed that Tory MPs would be whipped "in the normal way" and that, were statutory regulation introduced, a majority Conservative government would repeal it.  

The key question now is whether Labour and the Lib Dems will combine forces to defeat Cameron on Monday. With 315 MPs between them, to the Tories' 304 (excluding Speakers), they have the numbers to do so. There are a small number of anti-Leveson Labour MPs (such as David Blunkett, Frank Field, Kate Hoey and Gisela Stuart) but they are outweighed by the larger group of pro-Leveson Tories. A total of 68 Conservative MPs have publicly expressed their support for state-backed regulation, although some have since backed Cameron's stance. 

Labour and the Lib Dems have refused to say how they will vote on Monday, with both expressing their surprise at Cameron's decision to break off the cross-party talks. One Labour source told me that the talks had been "making progress" and that the party still "hoped to reach agreement". 

A Lib Dem spokesman said: "the prime minister has unilaterally decided to pull the plug on cross-party talks. We are still prepared to work with politicians of all parties, including the Conservatives, who want to work with others to implement Leveson." 

That last line is significant. It suggests that the Lib Dems are prepared to combine forces with Labour and any Tory rebels in order to vote for state-backed regulation. Since Leveson lies outside of the coalition agreement, collective responsibility will not apply in the usual fashion, allowing the Lib Dems to oppose the Tories. 

During his press conference, Cameron pointedly (and unusually) referred to the fact that parliament is hung. "Look, we have a hung parliament," he said. "In the end, parliament is going to have to decide. Parliament is sovereign." Those are not the words of a man confident of victory. With no Commons majority for his position, the PM is preparing for defeat.

Update: Ed Miliband has just responded to Cameron's announcement, stating that he and Nick Clegg  may "have to go above David Cameron’s head and work with other Conservative MPs".

Miliband repeatedly name-checked Clegg, suggesting that he is confident of a Labour-Lib Dem alliance on Monday. 

Protestors wear papier mache heads in the likeness of Rupert Murdoch and Prime Minister David Cameron outside the Queen Elizabeth II centre. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Theresa May defies the right by maintaining 0.7% aid pledge

The Prime Minister offers rare continuity with David Cameron but vows to re-examine how the money is spent. 

From the moment Theresa May became Prime Minister, there was speculation that she would abandon the UK's 0.7 per cent aid pledge. She appointed Priti Patel, a previous opponent of the target, as International Development Secretary and repeatedly refused to extend the commitment beyond this parliament. When an early general election was called, the assumption was that 0.7 per cent would not make the manifesto.

But at a campaign event in her Maidenhead constituency, May announced that it would. "Let’s be clear – the 0.7 per cent commitment remains, and will remain," she said in response to a question from the Daily Telegraph's Kate McCann. But she added: "What we need to do, though, is to look at how that money will be spent, and make sure that we are able to spend that money in the most effective way." May has left open the possibility that the UK could abandon the OECD definition of aid and potentially reclassify defence spending for this purpose.

Yet by maintaining the 0.7 per cent pledge, May has faced down her party's right and title such as the Sun and the Daily Mail. On grammar schools, climate change and Brexit, Tory MPs have cheered the Prime Minister's stances but she has now upheld a key component of David Cameron's legacy. George Osborne was one of the first to praise May's decision, tweeting: "Recommitment to 0.7% aid target very welcome. Morally right, strengthens UK influence & was key to creating modern compassionate Conservatives".

A Conservative aide told me that the announcement reflected May's personal commitment to international development, pointing to her recent speech to International Development staff. 

But another Cameron-era target - the state pension "triple lock" - appears less secure. Asked whether the government would continue to raise pensions every year, May pointed to the Tories' record, rather than making any future commitment. The triple lock, which ensures pensions rise in line with average earnings, CPI inflation or by 2.5 per cent (whichever is highest), has long been regarded by some Conservatives as unaffordable. 

Meanwhile, Philip Hammond has hinted that the Tories' "tax lock", which bars increases in income tax, VAT and National Insurance, could be similarly dropped. He said: "I’m a Conservative. I have no ideological desire to to raise taxes. But we need to manage the economy sensibly and sustainably. We need to get the fiscal accounts back into shape.

"It was self evidently clear that the commitments that were made in the 2015 manifesto did and do today constrain the ability to manage the economy flexibly."

May's short speech to workers at a GlaxoSmithKline factory was most notable for her emphasis that "the result is not certain" (the same message delivered by Jeremy Corbyn yesterday). As I reported on Wednesday, the Tories fear that the belief that Labour cannot win could reduce their lead as voters conclude there is no need to turn out. 

George Eaton is political editor of the New Statesman.

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