Osborne rules out further welfare cuts and tax rises as he targets Whitehall

The Chancellor reveals that he has already secured agreement from seven departments to cuts of up to 10 per cent and makes it clear that he's after more.

After reports at the weekend that he is struggling to secure agreement from cabinet ministers to any cuts in next month's Spending Review, George Osborne has taken the unusual step of touring the studios to reveal the progress he's made so far. On ITV's Daybreak, he announced that seven departments had "agreed provisionally" to cuts of up to 10 per cent, mentioning Justice, Energy and Communities by name (the others are reported to be the Foreign Office, the Cabinet Office, the Treasury  and Northern Ireland). He later added on BBC News that this meant he was now "about 20 per cent of the way there"

Today's Telegraph reports that Iain Duncan Smith has offered to cut welfare by another £3bn in order to protect spending on defence and the police, but Osborne made it clear that with the Lib Dems opposed to any further welfare cuts, this was not an option. "We've already accepted big reductions in welfare, including big reductions for this year, now we've got to look for savings in Whitehall, in government, in bureaucracy," he said. And he made it clear that this would include further cuts to the Home Office and Defence, despite the public protestations of Philip Hammond and Theresa May. While Osborne emphasised that he was "not going to do things that are going to endanger the security of the country, either at home or abroad", he added, "that doesn't mean you can't find savings in the way these big departments operate." In addition to dampening Tory hopes of further cuts to welfare, Osborne also signalled that had no plans to introduce further tax rises on top of those announced in the Budget. "I am in effect ruling it out, I'm looking for the money from Whitehall", he said. 

Challenged on why he was having a Spending Review at all, when he might not be in government for the period in question (2015-16), Osborne pointed out that "the financial year starts before the general election" and also revealed his underlying political motive. The review, he said, would raise the "very interesting question" of whether Labour "would match these plans". Should Labour fail to do so, Osborne will accuse them, as the Tories did in 1992, of planning a "tax bombshell" or more of the borrowing "that got us into this mess in the first place". After the Chancellor's pre-Spending Review report this morning, that is a dilemma Ed Miliband and Ed Balls will soon to have to confront. 

George Osborne arrives at media company Unruly, on April 25, 2013 in London. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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The economics of outrage: Why you haven't seen the end of Katie Hopkins

Her distasteful tweet may have cost her a job at LBC, but this isn't the last we've seen of Britain's biggest troll. 

Another atrocity, other surge of grief and fear, and there like clockwork was the UK’s biggest troll. Hours after the explosion at the Manchester Arena that killed 22 mostly young and female concert goers, Katie Hopkins weighed in with a very on-brand tweet calling for a “final solution” to the complex issue of terrorism.

She quickly deleted it, replacing the offending phrase with the words “true solution”, but did not tone down the essentially fascist message. Few thought it had been an innocent mistake on the part of someone unaware of the historical connotations of those two words.  And no matter how many urged their fellow web users not to give Hopkins the attention she craved, it still sparked angry tweets, condemnatory news articles and even reports to the police.

Hopkins has lost her presenting job at LBC radio, but she is yet to lose her column at Mail Online, and it’s quite likely she won’t.

Mail Online and its print counterpart The Daily Mail have regularly shown they are prepared to go down the deliberately divisive path Hopkins was signposting. But even if the site's managing editor Martin Clarke was secretly a liberal sandal-wearer, there are also very good economic reasons for Mail Online to stick with her. The extreme and outrageous is great at gaining attention, and attention is what makes money for Mail Online.

It is ironic that Hopkins’s career was initially helped by TV’s attempts to provide balance. Producers could rely on her to provide a counterweight to even the most committed and rational bleeding-heart liberal.

As Patrick Smith, a former media specialist who is currently a senior reporter at BuzzFeed News points out: “It’s very difficult for producers who are legally bound to be balanced, they will sometimes literally have lawyers in the room.”

“That in a way is why some people who are skirting very close or beyond the bounds of taste and decency get on air.”

But while TV may have made Hopkins, it is online where her extreme views perform best.  As digital publishers have learned, the best way to get the shares, clicks and page views that make them money is to provoke an emotional response. And there are few things as good at provoking an emotional response as extreme and outrageous political views.

And in many ways it doesn’t matter whether that response is negative or positive. Those who complain about what Hopkins says are also the ones who draw attention to it – many will read what she writes in order to know exactly why they should hate her.

Of course using outrageous views as a sales tactic is not confined to the web – The Daily Mail prints columns by Sarah Vine for a reason - but the risks of pushing the boundaries of taste and decency are greater in a linear, analogue world. Cancelling a newspaper subscription or changing radio station is a simpler and often longer-lasting act than pledging to never click on a tempting link on Twitter or Facebook. LBC may have had far more to lose from sticking with Hopkins than Mail Online does, and much less to gain. Someone prepared to say what Hopkins says will not be out of work for long. 

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