Phone-hacking casualties pile up - but spare a thought for Gordon

First it was the News of the World, scrapped by its owner Rupert Murdoch in an attempted damage-limitation exercise amid allegations that it hacked into the voicemail messages of, among others, schoolgirl murder victim Milly Dowler, relatives of the 7/7 victims, the families of soldiers killed in Iraq, and - she had to get dragged in somewhere - Princess Diana's lawyer.

Then it was the turn of the Press Complaints Commission, facing the axe after a rare outbreak of consensus between Prime Minister David Cameron, who branded it "ineffective" and Labour leader Ed Miliband, whose favoured adjective was "toothless."

The casualties of the phone-hacking affair continue to mount up, with those still at risk including News International chief executive Rebekah Brooks, and the company's increasingly forlorn hopes of taking over 100pc ownership of BSkyB.

But the big question at Westminster this weekend is whether those casualties will stay confined to the world of journalism and the media - or whether the scandal will eventually claim political scalps.

Phone-hacking has been branded rather too simplistically this week as journalism's equivalent of the MPs' expenses scandal, or even as the politicians' revenge on the trade for having uncovered their duck-island antics two summers ago.

It is nothing of the sort. This is far more than a crisis in British journalism, it is rather a crisis in British public life that goes right to the top of the tree.

No less a commentator than Peter Oborne this week described Mr Cameron as a "profoundly damaged figure" for having hired Andy Coulson, the former News of the World editor arrested by police yesterday, and for his friendship with Ms Brooks.

"The series of disgusting revelations concerning his friends and associates from Rupert Murdoch’s News International has permanently and irrevocably damaged his reputation....He has made not one, but a long succession of chronic personal misjudgments," he wrote.

Is this overstating the case? Well, possibly - but if one thing is clear from the past week's events it is that this is a fast-changing story in which assumptions can be very quickly overturned.

Nobody would have predicted a week ago that the country's biggest selling newspaper, an iconic title with 168 years of history behind it, would be abruptly closed. But it has happened.

The most damning aspect of the affair for Mr Cameron is the fact that he was given details about Mr Coulson's possible involvement in phone-hacking before making him Downing Street director of communications after last year's election win.

In his article this week, Mr Oborne disclosed that Alan Rusbridger, editor of The Guardian, who was in possession of many of the facts long before they could be published, delivered the warning to Mr Cameron's adviser Steve Hilton prior to the election.

It is inconceivable that Mr Hilton would not have passed on these concerns to Mr Cameron, but evidently the Prime Minister chose to ignore them.

Knowing what we now know of the allegations made against Mr Coulson, that does not just call into question the Prime Minister's judgement, it calls into question his commonsense.

Meanwhile, spare a thought this weekend for Gordon Brown, who wanted to hold the same kind of judicial inquiry into phone hacking that Mr Cameron has announced this week, but was blocked from doing so by the cabinet secretary, on the grounds that it would be too sensitive before the election.

Had he got his way, and the grisly facts tumbled out ahead of polling day, it is very likely that Mr Brown would still be Prime Minister today.

Mr Coulson, who was then Mr Cameron's chief spin doctor, would have had to resign, and the public's doubts about the Tory leader would have been dramatically reinforced.

It's been said plenty of times before, but in politics, as in journalism, timing really is everything.

The battle David Cameron dare not lose

More than a quarter of a century ago, a young, recently-elected Labour leader found himself caught on the horns of an excruciating political dilemma as he sought to drag his party into the post-industrial era.

The National Union of Mineworkers under its leader Arthur Scargill had just gone on strike in protest at Margaret Thatcher's pit closure programme without calling a national ballot of its members.

Did Neil Kinnock condemn the strike and put himself at odds with the union which, more than any other, defined the Labour movement, or support it and leave his modernisation agenda holed below the waterline?

In the end, he did neither, choosing to sit on the fence until the battle was effectively over, although with the benefit of hindsight, he now says he regrets not having called for a ballot at the outset.

Was it possibly this example that the current Labour leader, Ed Miliband, had in mind, when he came down firmly against this week's one-day stoppage by the public sector unions over pensions?

It certainly represented a gamble for a man who owes his entire position to the trade union barons whose votes swung last year's knife-edge Labour leadership election in his favour.

Predictably, one of them has already branded him a "disgrace" for failing to support Thursday's action but, to give him his due, Mr Miliband is at least trying to show some leadership over the issue.

Whether he is proved right or wrong in his judgement depends of course on how the battle for public opinion already under way over the pensions issue ultimately pans out.

The argument on this score is currently pretty finely balanced. While some will invariably blame the unions for Thursday's disruptions, many are instinctively sympathetic to their cause.

Attempts by ministers to frame the debate in terms of a comparison between "generous" public sector pensions and those in the private sector risk being seen as advocating a "race to the bottom."

Mr Miliband's calculation, at the moment, is that the strikes will harm the union's cause and by implication the Labour Party's if it is seen to be supporting them.

But by focusing his arguments this week on the timing of the action – at a point when negotiations with the government are still ongoing – he has at least left himself a way out if there is a shift in the public mood.

For Prime Minister David Cameron, too, the stakes are high, partly because of the sheer amount of taxpayers' money involved, and partly because of the government's recent series of U-turns.

First it was the forestry sell-off, then the plan to reduce sentences for offenders who plead guilty early, and finally and most damagingly of all the proposed shake-up of the National Health Service.

Any more climbdowns – particularly in the face of pressure from the unions – and his government's credibility would surely be permanently shot to pieces.

The fact that Mr Cameron was prepared to put his personal authority on the line over the pensions issue in a series of interventions last week suggests he is well aware of this danger.

I began this column by alluding to the Thatcher-Scargill prize-fight of 1984-85 and, for both of the two main parties, its legacy continues to hang heavily over the politics of industrial relations in the UK.

If the strike hampered Mr Kinnock's attempts to modernise his party, it also helped cement Mrs Thatcher's reputation as the woman who transformed Britain from the economic basket-case of the 70s to the self-confident nation it became in the course of the ensuing decade.

All subsequent Tory leaders bar none have since struggled to escape her shadow, and for all his efforts to fashion a more compassionate brand of Conservatism, the current one is no exception.

Just as Ed Miliband hopes to be compared favourably with the Welsh Windbag, David Cameron cannot afford to be compared unfavourably with the Iron Lady.

Blair's last mission - to save Labour from the 'sons of Brown'

At first sight, former Labour health secretary Alan Milburn's criticisms of the Conservative-led Coalition's revamped health reforms this week might have seemed like routine political knockabout.

"The biggest car crash in the history of the NHS" was the former Darlington MP's withering verdict after Prime Minister David Cameron and his deputy Nick Clegg performed their screeching U-turn.

But closer inspection of Mr Milburn's argument reveals a rather more subtle agenda than simply Coalition-bashing.

For as well as highlighting the government's ongoing difficulties over the health changes, his comments also illuminate the continuing deep divisions within the Labour Party over its attitude to public service reform.

"David Cameron's retreat has taken his party to a far less reformist and more protectionist position than that adopted by Tony Blair and even that of Gordon Brown," Mr Milburn wrote in a newspaper article on Thursday.

"The temptation, of course, is for Labour to retreat to the comfort-zone of public sector producer-interest protectionism...it would be unwise in my view for Labour to concede rather than contest the reform territory."

This was, of course, an implicit criticism of Labour leader Ed Miliband for having allowed Mr Cameron to seize the reform mantle and supplant Labour as the "changemakers" of British politics.

And coinciding as it did with a renewed bout of internal Labour feuding , the timing of Mr Milburn's comments looked far from accidental.

First, there was the leak of documents purporting to implicate both Mr Miliband and Shadow Chancellor Ed Balls in a "plot" to overthrow Tony Blair soon after his third election victory in 2005.

Then the 'victory speech' that was to have been delivered by South Shields MP David Miliband had he not unexpectedly lost to his younger brother in last year's leadership contest mysteriously came to light.

If that wasn't enough, Mr Blair himself then plunged back into the fray, looking every bit the once-and-future-king as he broke a self-imposed four-year silence on domestic political issues in an interview with The Sun.

By showering praise on the Coalition for its education and health reforms, claiming they had carried on where he left off, he too called into question 'Red Ed's strategy.

"New Labour was the concept of a modern Labour Party in the middle ground with a set of attitudes orientated towards the future – and I believe if we had carried on doing that we would have won the last election," he said.

Asked whether Mr Miliband was right to say the New Labour era was over, he said: "It can't possibly be over, because it isn't time-related.

"It is about the Labour Party constantly being at the cutting edge, being a modernising party – always being full of creative ideas and isn’t pinned in its ideological past.

"That is always the choice for the Labour Party. It is the choice for progressive parties."

Knowing from past experience how these guys tend to operate, it is impossible to believe that this sudden spate of activity by the former Prime Minister and his allies was not in some way co-ordinated.

So what is Mr Blair up to? Is he simply trying to flog a few more copies of his book – or does he have a higher purpose in mind?

Could it be that the architect of New Labour is embarking on one last great battle to rescue the party he dominated for 13 years from the clutches of the "sons of Brown?"

The Blairites are back – and Ed Miliband had better watch his.