You won't like her when she's angry. Photo:Getty
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Alistair Carmichael revealed as the leaker of the SNP memo

The former Scottish secretary admits to being behind the leaked memorandum that had the SNP furiously denying said conversation ever took place and got Scottish Labour elated.

Update 16:00, 04/04/15: It's been suggested to me from several quarters that the leaker may be Alistair Carmichael or someone in his office. As Secretary of State for Scotland the memorandum would definitely have crossed his desk, and it might help the 10 other Liberal Democrats trying to retain their seats in mainland Scotland.

Update, 15:24, 22/05/2015: It was Alistair Carmichael. He authorised his special advisor to leak the memo. Crucially, the Cabinet Secretary's investigation suggests that there is no evidence that the memo's contents were incorrect. However, in a letter from Carmichael apologising to Sturgeon, he writes that "the details of that account are not correct".


Vote SNP, get Tory. It’s not the campaign that Jim Murphy wanted to run when he became leader of Scottish Labour, but it’s what the party now thinks is its last, best hope of blunting the SNP surge.

So the Telegraph’s frontpage this morning will be a shot in the arm for both Murphy and Ed Miliband – “Sturgeon’s secret backing for Cameron” is their splash.  They’ve got hold of a memorandum written by a senior British civil servant in which Nicola Sturgeon appears to tell the French Ambassador she’d prefer that David Cameron remain as Prime Minister and that she doesn’t see Ed Miliband as a potential Prime Minister.  

It’s all been hotly denied by both the SNP and the French Embassy. The Telegraph has published the memorandum in full, but the key section is below:

The Ambassador also had a truncated meeting with the FM (FM running late after a busy Thursday…). Discussion appears to have focused mainly on the political situation, with the FM stating that she wouldn’t want a formal coalition with Labour; that the SNP would almost certainly have a large number of seats; that she had no idea ‘what kind of mischief’ Alex Salmond would get up to; and confessed that she’d rather see David Cameron remain as PM (and didn’t see Ed Miliband as PM material). I have to admit that I’m not sure that the FM’s tongue would be quite so loose on that kind of thing in a meeting like that, so it might well be a case of something being lost in translation.”

The civil servant’s scepticism isn’t quite justified – as the French officials in question were all fluent English speakers the conversation took place without translators. So what’s going on? Yes, the story's been furiously denied by Sturgeon and the French Ambassador in the strongest terms. Readers with long memories will remember Tony Blair denying he wanted rid of his Chancellor, Gordon Brown, or Gordon Brown denying he wanted rid of his Chancellor, Alistair Darling.  We now know that these denials were false.  

In this instance, almost every think-tanker, lobbyist, member of parliament or party staffer I've spoken to has, at some point over the last five years said they can't see Ed Miliband as Prime Minister. ("I look at the numbers and think we're fine. I look at him and think we're fucked," was the colourful reaction of one Labour staffer. A Conservative MP told me recently that "At the crunch, this country will never make Miliband Prime Minister.") During the referendum, one of the repeated refrains from activists within the Yes movement was that Miliband was heading to defeat. The mood music of the independence campaign was that the social democratic government promised by Miliband cannot be delivered within the United Kingdom. So all that Sturgeon needs to have said is: 'I can't see Miliband as Prime Minister - but at least it's easier to argue for independence with a Tory government" which is neither implausible or revelatory.

But what those in Labour who are hoping to gain any traction on this seem to have forgotten, is that for all the repeated Blair-Brown eruptions were seized on by the Tories, they were mostly disbelieved by the party faithful and didn't stop New Labour winning three elections in a row, two in landslides. It seems likely that this leak will have just as small an effect on the SNP.

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

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Is anyone prepared to solve the NHS funding crisis?

As long as the political taboo on raising taxes endures, the service will be in financial peril. 

It has long been clear that the NHS is in financial ill-health. But today's figures, conveniently delayed until after the Conservative conference, are still stunningly bad. The service ran a deficit of £930m between April and June (greater than the £820m recorded for the whole of the 2014/15 financial year) and is on course for a shortfall of at least £2bn this year - its worst position for a generation. 

Though often described as having been shielded from austerity, owing to its ring-fenced budget, the NHS is enduring the toughest spending settlement in its history. Since 1950, health spending has grown at an average annual rate of 4 per cent, but over the last parliament it rose by just 0.5 per cent. An ageing population, rising treatment costs and the social care crisis all mean that the NHS has to run merely to stand still. The Tories have pledged to provide £10bn more for the service but this still leaves £20bn of efficiency savings required. 

Speculation is now turning to whether George Osborne will provide an emergency injection of funds in the Autumn Statement on 25 November. But the long-term question is whether anyone is prepared to offer a sustainable solution to the crisis. Health experts argue that only a rise in general taxation (income tax, VAT, national insurance), patient charges or a hypothecated "health tax" will secure the future of a universal, high-quality service. But the political taboo against increasing taxes on all but the richest means no politician has ventured into this territory. Shadow health secretary Heidi Alexander has today called for the government to "find money urgently to get through the coming winter months". But the bigger question is whether, under Jeremy Corbyn, Labour is prepared to go beyond sticking-plaster solutions. 

George Eaton is political editor of the New Statesman.