Labour party

There's a lot to sift through in the papers this morning, even apart from history's final edition of the News of the World. I mean, a report that Rebekah Brooks is to face police questioning over the phone hacking scandal; an interview with the assistant commissioner of the Met, who apologises and flusters over the original police investigation; and claims from Paddy Ashdown that he warned No.10 "within days of the election" about the Coulson-shaped trouble that was heading their way. But more politically significant is the news that Ed Miliband could push for a Commons vote, on Wednesday, to block News Corp's takeover of Sky. The Labour leader outlined his plan on Andrew Marr's show just now, saying that, "I don't think [David Cameron] can carry on with business as usual.

If News Corporation was not trying to buy the whole of BSkyB, there’s a good chance that phone hacking would not still be in the news today: that decision was one of the things that led to a revival of interest in the story. As has been said many times during the past few days, securing full ownership of BSkyB is regarded as crucial by the Murdochs and that is one of the reasons they were prepared to take the dramatic step of shutting down The News of the World. But the letter from Ofcom about the takeover and the possibility of Labour forcing a vote in the House of Commons on the matter on Wednesday, means that the bid is in real jeopardy. As Robert Peston points out, BSkyB shares have fallen as the City computes the obstacles now standing in the way of the take-over.

Gosh, this phone hacking scandal is moving at a pace. Fresh from the wire comes news that even the government is reviewing its advertising contracts with the News of the World; signs that Jeremy Hunt won't budge on the BSkyB deal; as well as further interventions by everyone from Ed Miliband to Boris Johnson. Overarching all that, though, are the hardening differences of opinion between the Tories and the Lib Dems. The yellow half of the coalition is going further and further in pushing for both an enforced pause to the BSkyB deal and a judge-led inquiry into the whole mess. Both Lord Oakeshott and Simon Hughes have called for the former. Nick Clegg's email to party members last night called for the latter, as did Chris Huhne on the Today Programme earlier.

The striking thing about the phone hacking debate is that Ed Miliband is sitting on the Labour front bench, a statement of how seriously the Labour leader is now taking this issue. Miliband nodded vigorously when Chris Bryant declared that if Rebekah Brooks had a single shred of decency she would resign. Dominic Grieve is currently replying for the government and is taking a consensual line. I suspect that Grieve, unlike many ministers, has no great love for News International. His career has never recovered from his clashing, when Shadow Home Secretary, with Rebekah Brooks over how the tabloids report crime. It is said that from that day on, Andy Coulson put the black spot on him and Grieve was subsequently moved in the next reshuffle.

The political plates on phone hacking are shifting rapidly. The story has now ‘gone mainstream’ following the accusations about how the phones of Milly Dowler and the parents of the Soham victims may have been hacked.  Politicians are racing to catch up. Ed Miliband is rapidly moving into a more robust position. The Labour leadership doesn’t want to appear vindictive, to turn this into Labour v. Murdoch.

The approach that the Liberal Democrats take to social care over the next few weeks and months will be the best guide we have to how they now view the future of the coalition. If, in the coming all party talks, they effectively ally with Labour and try to score points off the Tories by suggesting that their coalition partners are ‘too mean’ to fund a solution to the problem then it will be apparent that they have moved fully into distancing mode and are preparing to position themselves as the party who restrained the Tories. This would imply a Lib Dem exit from the coalition sometime well before the 2015 election.

This is a strange old recovery. The News of the World has an interesting ICM poll today, showing that 66 per cent think the economy is getting worse. It’s not: GDP is growing and we have the second-highest job creation in the G7. Rather than losing jobs to China, we’re flogging Coventry-made Jaguars to Beijing billionaires (one of the random gems uncovered by our new Twitter feed @LocalInterest). So why is everyone so glum? And why do 52 per cent think that David Cameron and George Osborne are doing “a bad job” with the economy?   In theory, Osborne’s recovery is coming on well. His "cuts" agenda is simply a souped-up version of Alistair Darling’s, but Osborne cuts about 1 per cent a year faster.