Libel more damaging if it has potential to "go viral", court rules

The case could have a large effect on freedom of speech on sites like Twitter.

Thanks to a recent Court of Appeal ruling, Twitter could soon be far from a realm for the free expression we are supposedly entitled to as citizens of the EU. The Times last week published a law report from the case of Chris Cairns, New Zealand cricketer who was falsely accused of match fixing on Twitter. (False accusations on Twitter - very 2012). What’s interesting about this judgement is that damages were upheld not only due to the false nature of what was claimed, but because of the rumour’s potential to have gone viral. Ergo, the more widely spread the defamatory statement, the more damages should be awarded.

If this judgement is latched on to and the case ultimately sets a precedent, it is unclear what method would be used to decide on the level of damages. The ubiquitous nature of the internet and Twitter in particular means that word spreads, usually beyond an individual’s control, making this seem an obscure way of assessing damages. Perhaps the claimant could get a pound for every retweet?

The basis behind the ruling makes sense; it was, after all, taken from a dictum in the 1990 case of Slipper v BBC that stated “defamatory statements are objectionable not least because of their propensity to percolate through underground channels and contaminate hidden springs”. The problem is that in 1990 the web was only just taking off, and modern social networking was decades away. The principle has been taken and distorted to apply to an entirely different world, where consequences are certainly more severe.

The internet is modern society’s vehicle for free speech, and is essential for a democratic society. Jonathan Coad previously raised the question in his recent article for the New Statesman whether or not it is right to regulate social networks in the same way as national publications. The framework legislation dates back to 1996, so it is arguable that even these are outdated parameters for our changed society.

Equilibrium must be achieved. There is a balance between the Article 10 right to free speech and the equally important entitlement to a fair reputation, but with England being renowned for its exceedingly claimant-friendly libel laws it is worrying that this judgement may tip the balance and ultimately end up deterring free expression across social networking sites.

Photograph: Getty Images
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