George Osborne settles defence budget ahead of Spending Review

A deal was done between the Chancellor and the Defence Secretary to settle the Ministry of Defence's budget for 2015-16 late on Saturday night.

The Ministry of Defence budget for 2015-16 has been agreed ahead of the Spending Review, George Osborne has said.

Speaking on the BBC's Andrew Marr Show this morning, he told stand-in presenter Sophie Raworth that the deal was done "last night" and defended how close to the wire these decisions are being made, saying that "in the past these things were often done the night before the spending round." To stick to his own economic plan, the Chancellor must announce £11.5bn of Whitehall cuts to Parliament on Wednesday.

The cuts agreed to by the MoD will result in the civilian headcount being reduced while the armed forces remain at the same level, BBC Political Editor Nick Robinson reported. Osborne has also said that the fines from the Libor bank interest rate-fixing scandal will go to schemes to benefit war veterans and their families.

Further complications became apparent this morning as seven former defence chiefs published a letter in the Observer, calling on the Prime Minister to resist pressure from the MoD to allow the military to dip into the aid budget to make up shortfalls elsewhere. They describe the ring-fenced aid budget as "critical to the UK's national interests".

Agreeing the cuts to the defence budget was a major hurdle for the Treasury to clear ahead of the Spending Review - as my colleague George Eaton wrote back in February, the idea that the MoD must find cuts while the aid budget remains ringfenced was a difficult pill to swallow for many Conservative MPs.

However, defence is not the last department to settle - Vince Cable's Department of Business, Innovation and Skills is still holding out. On the Marr Show, Osborne claimed that he and Cable were still "arguing about the small details" but denied that there was a "massive argument" going on with his Lib Dem cabinet colleague.

That isn't quite the story coming out of the Cable camp, however - the Observer reports today that the Business Secretary was in "no mood to back down in a dispute he regards as crucial to the government's economic credibility". The problem, it is suggested, is that the differences between Vince Cable and the Treasury run deeper than just quibbles over a few numbers here or there. Cable insists the coalition needs "a strong story to tell on growth" as well as emphasis on the necessity to cut. In accordance with this, he is reportedly pushing for investment in science, skills and training.

This is not a new direction for Cable. In an essay for the New Statesman in March 2013 entitled "When the facts change, should I change my mind?", he set out his hesitations with the coalition's economic policy, particularly in the area of growth and capital spending. He wrote:

The more controversial question is whether the government should not switch but should borrow more, at current very low interest rates, in order to finance more capital spending: building of schools and colleges; small road and rail projects; more prudential borrowing by councils for housebuilding.

Osborne is expected to put some emphasis on infrastructure spending in Wednesday's Spending Review, but Cable seems to be holding out for specific investment for his own department.

Exactly when, and how, Cable and Osborne will be able to resolve what appear to be fundamental intellectual differences, remains to be seen.

George Osborne. Photograph: Getty Images

Caroline Crampton is assistant editor of the New Statesman. She writes a weekly podcast column.

John Moore
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The man who created the fake Tube sign explains why he did it

"We need to consider the fact that fake news isn't always fake news at the source," says John Moore.

"I wrote that at 8 o'clock on the evening and before midday the next day it had been read out in the Houses of Parliament."

John Moore, a 44-year-old doctor from Windsor, is describing the whirlwind process by which his social media response to Wednesday's Westminster attack became national news.

Moore used a Tube-sign generator on the evening after the attack to create a sign on a TfL Service Announcement board that read: "All terrorists are politely reminded that THIS IS LONDON and whatever you do to us we will drink tea and jolly well carry on thank you." Within three hours, it had just fifty shares. By the morning, it had accumulated 200. Yet by the afternoon, over 30,000 people had shared Moore's post, which was then read aloud on BBC Radio 4 and called a "wonderful tribute" by prime minister Theresa May, who at the time believed it was a genuine Underground sign. 

"I think you have to be very mindful of how powerful the internet is," says Moore, whose viral post was quickly debunked by social media users and then national newspapers such as the Guardian and the Sun. On Thursday, the online world split into two camps: those spreading the word that the sign was "fake news" and urging people not to share it, and those who said that it didn't matter that it was fake - the sentiment was what was important. 

Moore agrees with the latter camp. "I never claimed it was a real tube sign, I never claimed that at all," he says. "In my opinion the only fake news about that sign is that it has been reported as fake news. It was literally just how I was feeling at the time."

Moore was motivated to create and post the sign when he was struck by the "very British response" to the Westminster attack. "There was no sort of knee-jerk Islamaphobia, there was no dramatisation, it was all pretty much, I thought, very calm reporting," he says. "So my initial thought at the time was just a bit of pride in how London had reacted really." Though he saw other, real Tube signs online, he wanted to create his own in order to create a tribute that specifically epitomised the "very London" response. 

Yet though Moore insists he never claimed the sign was real, his caption on the image - which now has 100,800 shares - is arguably misleading. "Quintessentially British..." Moore wrote on his Facebook post, and agrees now that this was ambiguous. "It was meant to relate to the reaction that I saw in London in that day which I just thought was very calm and measured. What the sign was trying to do was capture the spirit I'd seen, so that's what I was actually talking about."

Not only did Moore not mean to mislead, he is actually shocked that anyone thought the sign was real. 

"I'm reasonably digitally savvy and I was extremely shocked that anyone thought it was real," he says, explaining that he thought everyone would be able to spot a fake after a "You ain't no muslim bruv" sign went viral after the Leytonstone Tube attack in 2015. "I thought this is an internet meme that people know isn't true and it's fine to do because this is a digital thing in a digital world."

Yet despite his intentions, Moore's sign has become the centre of debate about whether "nice" fake news is as problematic as that which was notoriously spread during the 2016 United States Presidential elections. Though Moore can understand this perspective, he ultimately feels as though the sentiment behind the sign makes it acceptable. 

"I use the word fake in inverted commas because I think fake implies the intention to deceive and there wasn't [any]... I think if the sentiment is ok then I think it is ok. I think if you were trying to be divisive and you were trying to stir up controversy or influence people's behaviour then perhaps I wouldn't have chosen that forum but I think when you're only expressing your own emotion, I think it's ok.

"The fact that it became so-called fake news was down to other people's interpretation and not down to the actual intention... So in many interesting ways you can see that fake news doesn't even have to originate from the source of the news."

Though Moore was initially "extremely shocked" at the reponse to his post, he says that on reflection he is "pretty proud". 

"I'm glad that other people, even the powers that be, found it an appropriate phrase to use," he says. "I also think social media is often denigrated as a source of evil and bad things in the world, but on occasion I think it can be used for very positive things. I think the vast majority of people who shared my post and liked my post have actually found the phrase and the sentiment useful to them, so I think we have to give social media a fair judgement at times and respect the fact it can be a source for good."

Amelia Tait is a technology and digital culture writer at the New Statesman.