Will the BBC "do a Murdoch" and close Newsnight?

The troubled current affairs show has suspended all investigations and a senior executive has been order to examine its botched report into allegations of child abuse at a Welsh care home.

The BBC's flagship late-night current affairs show, Newsnight, is facing an uncertain future after a second scandal related to investigations of sexual abuse.

The Friday night edition of the programme carried an on-air apology for an investigation on 2 November which wrongly hinted that Tory peer Lord McAlpine was involved in a paedophile ring at the Bryn Estyn care home. Although McAlpine was not named on the show, the report stoked speculation on social media sites over his identity. He has since denied the allegations, and abuse victim Steve Messham has said that he wrongly identified him.

In a statement released yesterday, the BBC said:

1. A senior news executive has been sent in to supervise tonight’s edition of Newsnight

2. An apology will be carried in full on Newsnight tonight

3. Ken MacQuarrie, Director BBC Scotland, will write an urgent report for the DG covering what happened on this Newsnight investigation

4. There will be an immediate pause in all Newsnight investigations to assess editorial robustness and supervision

5. There will be an immediate suspension of all co-productions with the Bureau of Investigative Journalism across the BBC

The future of Newsnight is now being openly discussed, with its own presenter, Eddie Mair, asking a guest "Is Newsnight toast?" and concluding the programme by asking: "That's all we have for tonight. Newsnight will be back on Monday. Probably."

Yesterday's edition carried no editor's name on the credits - Peter Rippon having previously stepped aside over an "inaccurate" blog explaining why he decided not to run an expose of sexual abuse perpetrated by Jimmy Savile.

The fact that this is a second error relating to reports on historic child abuse is a catastrophe for Newsnight - particularly as the BBC's director-general, George Entwistle, used to work there. He was yesterday touring the studios (although only the BBC ones, rival outlets noted) to explain what happens next.

He said that shutting the programme down - as Rupert Murdoch did to the News of the World when the scandals there became too toxic - was a "disproportionate" response, although he acknowledged the BBC was suffering a "crisis of trust".

He told John Humphreys on Radio 4's Today programme that he expected Newsnight staff to be asked questions:

Did the journalists carry out basic checks? Did they show Mr Messham the picture? Did they put allegations to the individual? Did they think of putting allegations to the individual? If they did not why not? And did they have any corroboration of any kind? These are the things we need to understand because this film as I say had the legal referral, was referred up through the chain yet it went ahead. There's some complexity here I absolutely need to get to the bottom of.

The Newsnight investigation has landed the programme in trouble. Photo: Getty

Helen Lewis is deputy editor of the New Statesman. She has presented BBC Radio 4’s Week in Westminster and is a regular panellist on BBC1’s Sunday Politics.

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