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 The framework legislation dates back to 1996, so it is arguable that even these are outdated parameters for our changed society.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
Show Hide image

How can Britain become a nation of homeowners?

David Cameron must unlock the spirit of his postwar predecessors to get the housing market back on track. 

In the 1955 election, Anthony Eden described turning Britain into a “property-owning democracy” as his – and by extension, the Conservative Party’s – overarching mission.

60 years later, what’s changed? Then, as now, an Old Etonian sits in Downing Street. Then, as now, Labour are badly riven between left and right, with their last stay in government widely believed – by their activists at least – to have been a disappointment. Then as now, few commentators seriously believe the Tories will be out of power any time soon.

But as for a property-owning democracy? That’s going less well.

When Eden won in 1955, around a third of people owned their own homes. By the time the Conservative government gave way to Harold Wilson in 1964, 42 per cent of households were owner-occupiers.

That kicked off a long period – from the mid-50s right until the fall of the Berlin Wall – in which home ownership increased, before staying roughly flat at 70 per cent of the population from 1991 to 2001.

But over the course of the next decade, for the first time in over a hundred years, the proportion of owner-occupiers went to into reverse. Just 64 percent of households were owner-occupier in 2011. No-one seriously believes that number will have gone anywhere other than down by the time of the next census in 2021. Most troublingly, in London – which, for the most part, gives us a fairly accurate idea of what the demographics of Britain as a whole will be in 30 years’ time – more than half of households are now renters.

What’s gone wrong?

In short, property prices have shot out of reach of increasing numbers of people. The British housing market increasingly gets a failing grade at “Social Contract 101”: could someone, without a backstop of parental or family capital, entering the workforce today, working full-time, seriously hope to retire in 50 years in their own home with their mortgage paid off?

It’s useful to compare and contrast the policy levers of those two Old Etonians, Eden and Cameron. Cameron, so far, has favoured demand-side solutions: Help to Buy and the new Help to Buy ISA.

To take the second, newer of those two policy innovations first: the Help to Buy ISA. Does it work?

Well, if you are a pre-existing saver – you can’t use the Help to Buy ISA for another tax year. And you have to stop putting money into any existing ISAs. So anyone putting a little aside at the moment – not going to feel the benefit of a Help to Buy ISA.

And anyone solely reliant on a Help to Buy ISA – the most you can benefit from, if you are single, it is an extra three grand from the government. This is not going to shift any houses any time soon.

What it is is a bung for the only working-age demographic to have done well out of the Coalition: dual-earner couples with no children earning above average income.

What about Help to Buy itself? At the margins, Help to Buy is helping some people achieve completions – while driving up the big disincentive to home ownership in the shape of prices – and creating sub-prime style risks for the taxpayer in future.

Eden, in contrast, preferred supply-side policies: his government, like every peacetime government from Baldwin until Thatcher’s it was a housebuilding government.

Why are house prices so high? Because there aren’t enough of them. The sector is over-regulated, underprovided, there isn’t enough housing either for social lets or for buyers. And until today’s Conservatives rediscover the spirit of Eden, that is unlikely to change.

I was at a Conservative party fringe (I was on the far left, both in terms of seating and politics).This is what I said, minus the ums, the ahs, and the moment my screensaver kicked in.

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