Rebekah Brooks

This was our live coverage of the Leveson inquiry into press standards on the day Rebekah Brooks, former chief executive of News International and ex-editor of The Sun and the News of the World, took the stand to face questions from Robert Jay, QC.

16.30 That’s it for our live coverage of Leveson today. See FT.com for news and reaction. Ben Fenton’s news story on the BSkyB bid elements to Brooks’ evidence is here. And we’ll leave you with Ben’s take on the day:

So, that was five hours in the witness box for Rebekah Brooks and at the end of it I don’t feel a whole lot wiser. We know that the government was lobbied by NI and News Corp over the Sky bid and now we know that this included taking a line on phone hacking – assuming that the email from NC’s lobbyist Fred Michel wasn’t a complete fantasy. We know that George Osborne discussed the Sky bid at a dinner with Mrs Brooks not long before his boss the prime minister did the same with James Murdoch and Mrs B at her Oxfordshire home.

Beyond that, we have been told how important the holy virtues of journalism are to Mrs Brooks, especially the importance of not allowing one’s personal relationships with politicians or anyone else to compromise one’s independence and journalistic objectivity. No journalist would agree that the story was ever more important than the truth, she said.

It is tempting to say that if that last remark of Mrs Brooks was entirely true, there would be no need for a Press Complaints Commission, let alone a Leveson inquiry.

Mrs Brooks retained her cool almost all the time, but there were moments when Robert Jay’s questioning of her integrity seemed to get her hot under the dainty white collar. Similarly, both he and Sir Brian Leveson seemed exasperated at times by her refusal to be distracted from her message.

My personal favourite moment of the day was Mrs Brooks complaining that these highly paid lawyers had been troubling her with questions that verged on trivial gossip – the loan of a retired police horse, what Rupert Murdoch gave her for her 40th birthday.

Jim Pickard

Andy Coulson at the Leveson Inquiry This was the FT’s live blog on the Leveson Inquiry on May 10th, 2012. Andy Coulson, former News of the World editor and head of communications at Number 10, was testifying. Written by Kiran Stacey (KS) and Jim Pickard (JP).

4.34pm KS: The Andy Coulson session has now wrapped up. Ben Fenton has written this story for the FT. He writes:

Andy Coulson, the former tabloid editor who became David Cameron’s spokesman, rejected on Thursday the idea that politicians in Downing Street had become too close to the press.

These are the other interesting details to emerge from today’s session:

  1. Coulson admitted he “may have” seen Top Secret documents and definitely did attend National Security Council meetings, even though he did not have top-level security clearance.
  2. Coulson had shares worth around £40,000 in News Corp while working for Number 10. This story was broken by the Independent on Sunday, whose editor was summoned to Leveson today to explain how they had got the story.
  3. David Cameron did not ask Coulson about his knowledge of the phone hacking activites of Glen Mulcaire and Clive Goodman even after the Guardian revealed the practice was more widespread than originally claimed.

This is Ben Fenton’s conclusion:

Andy Coulson was never going to be asked the toughest questions about his time at Number 10 because they would have conflicted with his status as a man on police bail.

But while he played a dead bat to everything, with a litany of “I don’t believes…I don’t recalls…” there were still some difficult moments in his verbal and written evidence.

We know he saw top secret material without supervision, which he shouldn’t have done, that he held News Corp shares but didn’t imagine there was any possible conflict of interest and that David Cameron did not ask him for further assurances that he knew nothing about the phone hacking offences at his paper even after The Guardian, in July
2009, produced evidence that it was widespread.

Jim Pickard

The FT lets rip today with an editorial calling for the prime minister to “get a grip on his team“.

It describes the NHS reform bill as “flawed and unnecessary“; says that Jeremy Hunt has failed to give a “satisfactory explanation” over apparent breaches of the ministerial code; his administration is “aloof and exclusive“; his choice of personnel were flawed (Andy Coulson and Peter Cruddas); he has “flip-flopped” on military procurement. et cetera.

This week marks a sorry second anniversary for the UK’s coalition government. After heavy losses in local elections, and in spite of a stage-managed reconfirmation of their vows in the key electoral battleground of Essex, the two governing parties are fretful and divided.

All governments hit a rough patch sooner or later. In her first term, Margaret Thatcher suffered a much heavier drubbing at the local elections than the coalition experienced last week. Given the UK’s anaemic growth over the past year, it is surprising that the stumble did not come sooner.

But the loss of public goodwill is particularly felt in a coalition that was initially buoyed by an unexpected outburst of popular enthusiasm for cross-party government. Adversity has now begun to reveal underlying cracks in the administration. If these are not repaired, they could threaten the integrity of the whole venture….

For the rest of the editorial it’s on ft.com here.

Jim Pickard

Ed Miliband has not always struck home against the coalition, even when the goal has seemed rather wide. In the Commons this afternoon, however, the opposition leader demonstrated that Labour’s critique of the government is getting ever firmer.

The wind is behind Miliband, of course: an economy that has sunk back into double-dip recession, rising unemployment, an superfluous shake-up of the NHS, clear splits between the Lib Dems and Tories on several fronts, including Lords reform.

But the Labour leader has tied this to his theme of a government where ministers are “working for their friends” to ever more effective deployment – even if you consider his use of the phrase “cronies” to be more suitable for a 6th form debating society.

The heart of this problem is that the government stands up for the wrong people” is the damaging message. Labour is now repeatedly talking about rail fares, energy bills and bank charges – and criticising the overpaid bosses of such companies. And the high cost of living is unlikely to fade as a theme in the coming months.

Miliband’s job is made much easier by the Budget, in particular its cut in the 50p rate of income tax. Labour believes this was an open goal, a clearcut symbol of the

Jim Pickard

This is not a complete guide to everything the coalition will do in 2012/13; many of the government’s actions do not need fresh laws. But here is the full list of all the legislation that ministers plan to enact in the coming Parliamentary calendar. Ministers will also reaffirm their plan to spend 0.7 per cent of GDP on aid by 2013, although there is no bill to legislate this commitment.

Enterprise and Regulatory Reform Bill:

- repealing unnecesary legislation and limiting state inspections of companies

- setting up a Green Investment Bank

- reforming competition law

- give extra powers to shareholders to influence executive pay

- overhaul employment tribunals

Banking Reform Bill:

- implementation of some of the Vickers report to ringfence retail and investment

Jim Pickard

Proposals to create a system of shared parental leave have been bogged down in wrangling between ministers over a radical plan to grant a £5,500 “baby bonus” to parents on the birth of the child.

The plan was put forward by Oliver Letwin and would replace statutory maternity pay; the idea is that it would increase individual choice and remove a bureaucratic cost from employers. But it has not yet been implemented because of fears that it could end up costing more; given that many mothers don’t take their full 39 weeks of paid leave.

The full story is here on ft.com. It comes as the government presses ahead in today’s Queen’s Speech with plans for flexible parental leave – despite these having not yet been finalised.

Other family-friendly measures in the legislative programme for next year include helping children with special educational needs, fast-tracking the adoption of ethnic minority children and speeding up care proceedings.

Jim Pickard

The BBC is reporting today that Lord (Chris) Smith, chair of the Environment Agency, has come out in favour of fracking – the controversial method for extracting gas from shale. In reality his words are not a clearcut endorsement for the practice.

The Beeb points out that Smith said on the Today programme that he only backed fracking if it was accompanied by successful carbon capture & storage, which so far only exists in pilot form.

In fact his concerns are wider. In his speech tonight at the RSA he will say that fracking “potentially ticks the box on energy security, on availability and on cost“.

But he adds: “Does it tick the box on environment? The answer is complex, and is something like ‘up to a point’.” If Britain locks itself into a new generation of gas, “with all the carbon consequences“, it would be unable to reduce the carbon impact of its power generation to zero, he will say.

Lord Smith will also add that fracking needs careful use of drilling technology and rigorous monitoring and inspection. No doubt he is aware of the controversy surrounding the chemicals which are used in the process of extraction – skilfully described in this excellent feature by our environment correspondent, Pilita Clark.

The peer will use his speech to make a broader warning that green issues are sliding down the political agenda despite being among the most important challenges facing the UK.

In a rare intervention by the former Labour culture secretary, the peer will use his first big speech for three years to call for the government to “acknowledge and respect” that environmental policy is essential and not an optional extra.

The comments come as the coalition is shedding several green commitments in order to focus on economic growth. “We can’t abandon either green or growth,” he will say in tonight’s speech.

Lord Smith told me he backed the coalition’s attempts to streamline regulation to make it less bureaucratic. The government has carried out a “red tape challenge” to strip away unnecessary burdens on companies.

But he challenged the focus on cutting legislation, saying there was a reason why many regulations existed. “Because things like putting toxins into our water or

Jim Pickard

The House of Lords authorities are refusing to hand over officials’ estimates of how much it will cost taxpayers to replace the chamber with a mostly elected senate, prompting anger from Tory politicians.

Officials have rejected a freedom of information request by the Financial Times, saying that the relevant information was produced “solely” for the joint committee on Lords reform. “A decision was taken by them not to publish it as part of their report,” they said in their response.

David Davis, MP for Haltemprice and Howden, said there was a “clear-cut case” for the cost estimates to be put in the public domain.

There is a very clear argument for this,” said the influential former frontbencher. “It will be very hard for them to refuse to do it.” Mr David predicted that the question would be put to Nick Clegg: “What’s he going to say? ‘We don’t know?’ He can’t do that can he?

Another Tory MP told the FT: “This is a genuine public issue how can we reach a decision about its merits when we have no cost-benefit analysis?

The issue comes to a head on Wednesday when Lords reform is part of the Queen’s speech setting out the legislative programme for the forthcoming parliamentary

Kiran Stacey

Lembit OpikLembit Opik is leading the charge. The former Lib Dem MP for Montgomeryshire is the first one to break ranks in the wake of another terrible set of local election results for the Lib Dems and call for Nick Clegg’s head. He told BBC Radio 5 Live:

The problem is Nick Clegg: there is a poll today which suggests that 19 per cent of the people like the Lib Dems without Clegg; 12 per cent like Clegg without the Lib Dems.

My empirical view is that we would have done better with a different leader.

I don’t dislike Clegg as a person but I think you can actually point at specific mistakes he has made.

Except there is no charge. Lembit is the only one saying anything remotely like this. And his stock has fallen so low that party strategists think his intervention is actually helpful for the Lib Dem leader.

Welcome to our live blog on the local elections

Through the day, we’ll be providing results from the local elections held yesterday in England, Scotland and Wales, with additional comment from the FT’s political reporting and commentary team as well as pulling in analysis and illumination from wherever we find it on the web.

The results are still coming in, but with the national pattern now becoming clear we’re going to put this blog on pause, at least until we get some sense of what is going to happen in the contest for London mayor. Here are the 11am headlines:

  • Labour has done very well across England, winning an estimated 39 per cent share of the vote, compared to 31 for the Tories  and 16 for the Lib Dems.
  • So far, Labour has won 22 new councils and 470 new councillors. The councils are spread across England, including Carlisle, Birmingham and Southampton.
  • Nick Clegg and William Hague have both re-pledged their commitment to the coalition, amid sniping from the Tory benches that the party needs to move to the right.
  • Four cities – Manchester, Nottingham, Bradford and Coventry have all voted no to a directly elected mayor. Birmingham is predicted to go the same way.
  • Boris Johnson is pulling ahead in early counting for London mayor. Brian Paddick, the Lib Dem, is being pushed for third place by Jenny Jones, the green, and Siobhan Benita, the independent.

Jim Pickard

There is a curious anomaly on the House of Commons MPs’ register. Under Ed Vaizey’s list appears an event sponsored by BSkyB in late 2009 when the Tory party was in opposition. Here is a link to the right page.

Name of donor: British Sky Broadcasting Group plc

Address of donor: Grant Way, Isleworth, Middlesex TW7 5QD

Amount of donation or nature and value if donation in kind: networking event to enable the Conservative frontbench team (Ed Vaizey and Jeremy Hunt) to meet sector leaders from the arts and creative industries. Value: £3,800. I share this with another Conservative MP.

Date of receipt: 7 October 2009

Date of acceptance: 7 October 2009

Donor status: company, registration number 2247735

(Registered 9 April 2010 )

The entry implies that both Jeremy Hunt and Mr Vaizey benefited from the expenditure by BSkyB. Yet Hunt’s register carries no entry for that event; some mistake, surely? I’ve called Mr Hunt’s spokeswomen but they have not replied yet.

UPDATE: It appears that Tim Shipman of the Mail has beaten me by three minutes: here is his story. Shipman reports that Hunt’s aides deny that he attended the event.

But he adds that three other events that Hunt attended were not recorded by him despite being registered by Vaizey:

The Culture Secretary is now planning to amend his entry in the Register of Interests to show that he took a donation worth £1,473.81 from advertising agency DDB UK in September 2009, another worth £1,435 from London media hangout the Groucho Club and a third in July that year from M&C Saatchi, the advertising firm set up by Tory donor and Conservative peer Lord Saatchi. That event cost £4,563.50 – a total of £7472.31.

Steve McCabe, the Labour backbencher, has written to John Lyon, the Commissioner for Standards. His letter says: “I would be grateful if you could investigate whether Mr Hunt made a false or misleading registration of his financial interests, and whether a breach of the Parliamentary rules has occurred.”

Kiran Stacey

Nick Clegg hit the campaign trail for the last time yesterday, jetting to Edinburgh (where the party could lose half its seats), then down to Stockport (where it could lose control), and then catching the train over to his constituency home in Sheffield.

It’s a grinding schedule, especially as the Lib Dems prepare for another year of heavy local government losses as they continue to suffer for their decision to join the Tories in government. The party could end up losing councils across the country: Cardiff, Stockport, Burnley, Cheltenham, and in other places it could be wiped out altogether.

You might expect Clegg to be jaded, especially as he visits places he’s expected to lose. But if the Lib Dem leader was tired, he didn’t show it. Far from it, as he turned on the charm for voters in a chip shop on a grey suburban shopping precinct in Stockport, it became clear why voters had taken to him so enthusiastically in 2010.

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on the UK political scene

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Jim Pickard and Kiran Stacey, FT Westminster correspondents, share the latest news and analysis on the UK's political scene.

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Contact the Westminster blog team: Jim Pickard, Kiran Stacey, Nicholas Timmins, Elizabeth Rigby and Helen Warrell.

The illustrations of Jim and Kiran are by Nick Hardcastle.

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The authors

Jim Pickard joined the lobby team in January 2008. He has been at the Financial Times since 1999 as a regional correspondent, assistant UK news editor and property correspondent.

Kiran Stacey is an FT political correspondent, having joined the lobby in 2011. He started at the FT as a graduate trainee in 2008, working on desks including UK companies and US equity markets before taking over the FT's Energy Source blog.

Contributors

Elizabeth Rigby, the FT's chief political correspondent, joined the lobby team in September 2010. Elizabeth has worked at the FT for more than a decade and was most recently its consumer industries editor.

Helen Warrell is the FT's UK reporter, covering home affairs, crime and policing. She joined the FT in 2008 and has spent time as a reporter in the Brussels bureau and more recently, editing the paper's Asia coverage on the world news desk.

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