Miliband has nothing to lose from standing by Leveson

The Labour leader's stance won't win him many friends on Fleet Street but no one should believe the press will swing the next election.

Each side in the Leveson debate naturally prefers to cast their position in terms of highest principle. Ed Miliband champions the cause of victims of cynical and grotesque press intrusion; David Cameron resists the subordination of ancient liberties to the dead hand of state regulation. There are, of course, other calculations at work.

The Prime Minister has pulled out of cross-party talks aimed at finding a compromise Leveson-lite model and thereby precipitated a vote in parliament at the start of next week. In practice, there may have been some arcane middle way that guarantees free speech and also gives legal force to mechanisms supporting victims of shabby practice seeking redress – but no-one could see what it looked like and there were no political points on offer for waiting around to find it.

Cameron surely realised that any version of regulation with a statutory underpinning would be denounced as the thin end of a Stasi-shaped censorship wedge by most newspapers, while anything less would be presented as craven capitulation to press baron pressure.

He has chosen to weather the charge of cronyism if it means being feted on Fleet Street. In fact, he made that choice the moment the Leveson report was published, when – after a skim read – he saw that he was spared the most conspiratorial interpretation of his and Jeremy Hunt’s relations with News International and felt exonerated. That day he announced he preferred to avoid statutory regulation and the inky praise was duly dispersed in most papers the following morning.

Miliband, by contrast, could hardly renege on his own commitment to stand by the Leveson process, which meant, to some degree at least, seeing its proposals enacted in law. The creation of the inquiry is seen by many on the Labour side as their leader’s finest hour. Denouncing Rupert Murdoch’s Evil Empire and demanding justice for the victims was a gamble that looked at the time to have paid off handsomely. It was a concrete piece of evidence of the Labour leader’s otherwise rather abstract claim to be a crusader against stale orthodoxies and cosy establishments.

As it happens, Miliband didn’t destroy the feral Fleet Street beast or prise it away from its prejudiced proprietors. He just made them angry. Cameron surely recognises that it does him no harm to befriend the wounded animal, hoping to benefit when it savages the leader of the opposition – as it certainly will. It might, in that context, be tempting to see Miliband’s dedication to the Leveson cause as a blunder. It certainly doesn’t win him many friends in the journalistic fraternity.

But then again, how likely was it really that the Mail, the Sun, the Express, the Telegraph, the Standard or the Times were ever going to support Miliband? Their editorial positions are firmly entrenched on the right. When they attack the government it tends to be in the shrillest terms for lacking conservative rigour. What could Miliband possibly do to appeal to those organs that would also be consistent with the person he is and the politics he wants to pursue? One of the things he has going for him – something more thoughtful Tory MPs privately concede – is that he is recognised in Westminster as a man who believes in something other than raw political gain. The Miliband candidacy, come the election, will be presented in terms of a leader who stands by his convictions, even if it doesn’t look popular or clever at the time. Leveson is one of those things. (I don’t say this because I’m persuaded it will work, only because I strongly suspect this is how the issue will be viewed within Team Miliband.)

And, come May 2015, what difference will the newspapers make? Who under the age of 30 buys a newspaper these days? Could the Conservative-supporting press swing the election for Cameron in 2010? Did a concerted, ferocious press assault on the Liberal Democrats in the run up to the Eastleigh by-election cost them the seat? No.

The painful truth for print journalists (and I know it’s painful, because I am one and it hurts) is that obsolescence is creeping upon us at an alarming rate. The public are barely more respectful of newspaper hacks than they are of politicians, so no-one is impressed when the latter defend the freedoms of the former and are thanked for it with lavish praise in editorial columns read mostly by other journalists and politicians. Besides, no newspaper will endorse a candidate who looks like a loser. By 2015 that cap could just as easily fit Cameron as Miliband.

Ultimately, each side in this Leveson row has chosen the path that is rational given his circumstances. Cameron has nothing to gain by making enemies on the right-wing corner of Fleet Street and Miliband has nothing much to lose.

Labour Party leader Ed Miliband addresses delegates at the annual CBI conference. Photograph: Getty Images.

Rafael Behr is political columnist at the Guardian and former political editor of the New Statesman

Photo: Getty Images
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There are risks as well as opportunities ahead for George Osborne

The Chancellor is in a tight spot, but expect his political wiles to be on full display, says Spencer Thompson.

The most significant fiscal event of this parliament will take place in late November, when the Chancellor presents the spending review setting out his plans for funding government departments over the next four years. This week, across Whitehall and up and down the country, ministers, lobbyists, advocacy groups and town halls are busily finalising their pitches ahead of Friday’s deadline for submissions to the review

It is difficult to overstate the challenge faced by the Chancellor. Under his current spending forecast and planned protections for the NHS, schools, defence and international aid spending, other areas of government will need to be cut by 16.4 per cent in real terms between 2015/16 and 2019/20. Focusing on services spending outside of protected areas, the cumulative cut will reach 26.5 per cent. Despite this, the Chancellor nonetheless has significant room for manoeuvre.

Firstly, under plans unveiled at the budget, the government intends to expand capital investment significantly in both 2018-19 and 2019-20. Over the last parliament capital spending was cut by around a quarter, but between now and 2019-20 it will grow by almost 20 per cent. How this growth in spending should be distributed across departments and between investment projects should be at the heart of the spending review.

In a paper published on Monday, we highlighted three urgent priorities for any additional capital spending: re-balancing transport investment away from London and the greater South East towards the North of England, a £2bn per year boost in public spending on housebuilding, and £1bn of extra investment per year in energy efficiency improvements for fuel-poor households.

Secondly, despite the tough fiscal environment, the Chancellor has the scope to fund a range of areas of policy in dire need of extra resources. These include social care, where rising costs at a time of falling resources are set to generate a severe funding squeeze for local government, 16-19 education, where many 6th-form and FE colleges are at risk of great financial difficulty, and funding a guaranteed paid job for young people in long-term unemployment. Our paper suggests a range of options for how to put these and other areas of policy on a sustainable funding footing.

There is a political angle to this as well. The Conservatives are keen to be seen as a party representing all working people, as shown by the "blue-collar Conservatism" agenda. In addition, the spending review offers the Conservative party the opportunity to return to ‘Compassionate Conservatism’ as a going concern.  If they are truly serious about being seen in this light, this should be reflected in a social investment agenda pursued through the spending review that promotes employment and secures a future for public services outside the NHS and schools.

This will come at a cost, however. In our paper, we show how the Chancellor could fund our package of proposed policies without increasing the pain on other areas of government, while remaining consistent with the government’s fiscal rules that require him to reach a surplus on overall government borrowing by 2019-20. We do not agree that the Government needs to reach a surplus in that year. But given this target wont be scrapped ahead of the spending review, we suggest that he should target a slightly lower surplus in 2019/20 of £7bn, with the deficit the year before being £2bn higher. In addition, we propose several revenue-raising measures in line with recent government tax policy that together would unlock an additional £5bn of resource for government departments.

Make no mistake, this will be a tough settlement for government departments and for public services. But the Chancellor does have a range of options open as he plans the upcoming spending review. Expect his reputation as a highly political Chancellor to be on full display.

Spencer Thompson is economic analyst at IPPR