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Politics live blog: Tuesday 12 June Politics live blog: Tuesday 12 June
(40 minutes later)
2.45pm: Here's a mid-afternoon summary.

• Ed Miliband has told the Leveson inquiry that that something went "very wrong" with the way some journalists dealt with individuals. As the Press Assocation reports, he said police had "not investigated properly" and politicians had not spoken out. There are more details on our Leveson live blog.
• David Cameron has welcomed the announcement that the Falkland Islands government will hold a referendum on its relationship with the UK. He criticised the Argentine government for "shouting down the Islanders' ability to speak for themselves and punishing them for exercising their own free choice". (See 2.00pm.)

• Internet service providers have welcomed legal reforms that will protect them from libel action in return for disclosing the identity and contact details of people who post defamatory comments online.
I've got to wrap up earlier than usual today. Thanks for the comments.
2.35pm: Here's a short afternoon reading list.
• Ed West at the Telegraph suggests the right are starting to turn against the super-rich.
Perhaps conservatives are starting to realise that while inequality is not a bad thing in itself, taken to such extreme levels it starts to mire the country in corruption and leaves the ordinary middle-class locked out of the system (not to mention being unable to afford property in neighbourhoods they would have once considered theirs).
As [Ferdinand] Mount points out, even share-ownership, which was supposed to create a nation of stakeholders has instead become dominated by corporate funds, managed by well-paid professionals: in 1963 some 54 per cent of shares were owned by private individuals; by 1981 it was 27 per cent, and by 2011 it was just 10 per cent. As Mount points out: "The Stock Exchange has become an oligarchy".
As a great philosopher once put it: "The whole world cries out, 'Peace, freedom, and a few less fat bastards eating all the pie!'"
• Robert Peston on his blog says the so-called "Shareholder Spring" does not exist.

Strikingly, though, a deeper analysis of this so-called "shareholder spring" of investor uprisings shows it may not really exist. There have been just four defeats so far of companies in votes on their so-called "remuneration reports", and only one of these companies has been in the FTSE100 list of biggest businesses. That does not represent an exponential increase in shareholder rebellions.
2.00pm: David Cameron has put out a statement on the referendum - the Falkland Islands referendum. (See 1.47pm.) Here it is.2.00pm: David Cameron has put out a statement on the referendum - the Falkland Islands referendum. (See 1.47pm.) Here it is.
I have always said that it is up to the Falkland Islanders themselves to choose whether they want to be British and that the world should listen to their views. Thirty years ago they made clear that they wanted to stay British. That's why British forces bravely liberated the island from Argentine invaders.I have always said that it is up to the Falkland Islanders themselves to choose whether they want to be British and that the world should listen to their views. Thirty years ago they made clear that they wanted to stay British. That's why British forces bravely liberated the island from Argentine invaders.
Now the Argentine Government wants to put that choice in doubt again, by shouting down the Islanders' ability to speak for themselves and punishing them for exercising their own free choice. That's why it's absolutely right that the Islanders have today set out how they intend to make their voices heard once more. And Britain will be resolute in supporting their choice.Now the Argentine Government wants to put that choice in doubt again, by shouting down the Islanders' ability to speak for themselves and punishing them for exercising their own free choice. That's why it's absolutely right that the Islanders have today set out how they intend to make their voices heard once more. And Britain will be resolute in supporting their choice.
Next year's referendum will determine beyond doubt the views of the people of the Falklands. Britain will respect and defend their choice. We look to all UN members to live up to their responsibilities under the UN charter and accept the Islanders' decision about how they want to live.Next year's referendum will determine beyond doubt the views of the people of the Falklands. Britain will respect and defend their choice. We look to all UN members to live up to their responsibilities under the UN charter and accept the Islanders' decision about how they want to live.
1.47pm: We might not be getting a referendum on our membership of the European Union, but on the Falkland Islands they are going to get a referendum on their union with the UK.1.47pm: We might not be getting a referendum on our membership of the European Union, but on the Falkland Islands they are going to get a referendum on their union with the UK.
Here's what the Press Association have filed.Here's what the Press Association have filed.
The Falkland Islands are to hold a referendum on their "political status" - hoping to bring an end to the continuing dispute with Argentina over the islands' sovereignty, their government said today.
The announcement comes as Falklanders prepare to mark the 30th anniversary of the liberation of the islands.
Three decades after Margaret Thatcher sent 27,000 troops and more than 100 ships to repel the Argentinian invaders, Buenos Aires continues to set its sights on claiming the territory it calls Las Malvinas.
But the Falkland Islands government said it hopes a referendum will send a firm message to Argentinian president Cristina Fernandez de Kirchner that islanders want to remain British.
Reacting to the announcement, Foreign Office minister Jeremy Browne said this is a "truly significant moment".
The Falkland Islands, a rocky archipelago in the South Atlantic, are 7,780 miles from the UK and 1,140 miles from Buenos Aires.
They have been under British control since 1833 - apart from the brief but bitter 74 days of occupation in 1982.
Gavin Short, chairman of the Legislative Assembly, said: "We are holding this referendum not because we have any doubts about who we are and what future we want, but to show the world just how certain we are about it.
"I have no doubt that the people of the Falklands wish for the islands to remain a self-governing overseas territory of the United Kingdom.
"We certainly have no desire to be ruled by the government in Buenos Aires, a fact that is immediately obvious to anyone who has visited the islands and heard our views.
"But we are aware that not everybody is able to come to these beautiful islands and to see this reality for themselves.
"And the Argentine government deploys misleading rhetoric that wrongly implies that we have no strong views or even that we are being held hostage by the UK military. This is simply absurd."		The Falkland Islands are to hold a referendum on their "political status" - hoping to bring an end to the continuing dispute with Argentina over the islands' sovereignty, their government said today.
The announcement comes as Falklanders prepare to mark the 30th anniversary of the liberation of the islands.
Three decades after Margaret Thatcher sent 27,000 troops and more than 100 ships to repel the Argentinian invaders, Buenos Aires continues to set its sights on claiming the territory it calls Las Malvinas.
But the Falkland Islands government said it hopes a referendum will send a firm message to Argentinian president Cristina Fernandez de Kirchner that islanders want to remain British.
Reacting to the announcement, Foreign Office minister Jeremy Browne said this is a "truly significant moment".
The Falkland Islands, a rocky archipelago in the South Atlantic, are 7,780 miles from the UK and 1,140 miles from Buenos Aires.
They have been under British control since 1833 - apart from the brief but bitter 74 days of occupation in 1982.
Gavin Short, chairman of the Legislative Assembly, said: "We are holding this referendum not because we have any doubts about who we are and what future we want, but to show the world just how certain we are about it.
"I have no doubt that the people of the Falklands wish for the islands to remain a self-governing overseas territory of the United Kingdom.
"We certainly have no desire to be ruled by the government in Buenos Aires, a fact that is immediately obvious to anyone who has visited the islands and heard our views.
"But we are aware that not everybody is able to come to these beautiful islands and to see this reality for themselves.
"And the Argentine government deploys misleading rhetoric that wrongly implies that we have no strong views or even that we are being held hostage by the UK military. This is simply absurd."
It won't take long to count the "no to the UK" votes. Ten years ago Gibraltar held a referendum on whether Spain should have joint sovereignty. Some 98% of those taking part voted in favour of the status quo.It won't take long to count the "no to the UK" votes. Ten years ago Gibraltar held a referendum on whether Spain should have joint sovereignty. Some 98% of those taking part voted in favour of the status quo.
1.30pm: Here's a lunchtime summary.1.30pm: Here's a lunchtime summary.
• Sir John Major has said that the scale of Rupert Murdoch's influence is "an unattractive facet in British national life". Giving evidence to the Leveson inquiry, Major said: "It does seem to me an oddity in a nation that prides itself on one man, one vote, we have one man who can't vote with a large collection of newspapers and a large share of the electronic media outlet." He also said that Murdoch told him before the 1997 election: "I would like you to change your policy and if you don't change your policy my organisation cannot support you." Major said he remembered it well.• Sir John Major has said that the scale of Rupert Murdoch's influence is "an unattractive facet in British national life". Giving evidence to the Leveson inquiry, Major said: "It does seem to me an oddity in a nation that prides itself on one man, one vote, we have one man who can't vote with a large collection of newspapers and a large share of the electronic media outlet." He also said that Murdoch told him before the 1997 election: "I would like you to change your policy and if you don't change your policy my organisation cannot support you." Major said he remembered it well.

It is not often someone sits in front of a prime minister and says to a prime minister 'I would like you to change your policy or my organisation cannot support you'. It is unlikely to be something I would have forgotten.
It is not often someone sits in front of a prime minister and says to a prime minister 'I would like you to change your policy or my organisation cannot support you'. It is unlikely to be something I would have forgotten.
Major admitted that when he was prime minister he was "much too sensitive" about what was said in the papers. He suggested that Kelvin MacKenzie, the former Sun editor, made up the story about telling Major on Black Wednesday that he was going to pour "a bucket of shit" on his head, but he accused Gordon Brown of allowing his aides to tell lies "for party political advantage". And he said it was no surprise that the Sun backed Labour in 1997. "In many ways he [Tony Blair] was to the right of me," Major said. There are more details on our Leveson live blog.Major admitted that when he was prime minister he was "much too sensitive" about what was said in the papers. He suggested that Kelvin MacKenzie, the former Sun editor, made up the story about telling Major on Black Wednesday that he was going to pour "a bucket of shit" on his head, but he accused Gordon Brown of allowing his aides to tell lies "for party political advantage". And he said it was no surprise that the Sun backed Labour in 1997. "In many ways he [Tony Blair] was to the right of me," Major said. There are more details on our Leveson live blog.
• Tom Winsor, the government's controversial candidate for chief inspector of constabulary, has defended his radical reform programme of police pay and conditions, arguing that officers must shed their "blue-collar, clock-in, clock-out" reputation among the public. As Alan Travis reports, Winsor, the home secretary's candidate to become Her Majesty's chief inspector of constabulary (HMIC), said the radical reform programme he outlined in two officially commissioned reports was needed to modernise a system of police pay and conditions that was last substantially reformed in 1978 and was designed in a different era that dated back to the 1920s.• Tom Winsor, the government's controversial candidate for chief inspector of constabulary, has defended his radical reform programme of police pay and conditions, arguing that officers must shed their "blue-collar, clock-in, clock-out" reputation among the public. As Alan Travis reports, Winsor, the home secretary's candidate to become Her Majesty's chief inspector of constabulary (HMIC), said the radical reform programme he outlined in two officially commissioned reports was needed to modernise a system of police pay and conditions that was last substantially reformed in 1978 and was designed in a different era that dated back to the 1920s.
• Sir Hugh Orde, the president of the Association of Chief Police Officers, has questioned the decision to appoint Winsor as the new chief inspector of constabulary. In the past the inspectorate would advise chief constables on operational matters, Orde said. But Winsor was "simply the wrong person" to provide that kind of advice because he had never been a police officer.• Sir Hugh Orde, the president of the Association of Chief Police Officers, has questioned the decision to appoint Winsor as the new chief inspector of constabulary. In the past the inspectorate would advise chief constables on operational matters, Orde said. But Winsor was "simply the wrong person" to provide that kind of advice because he had never been a police officer.
• The Child Poverty Action Group has said that the big reductions in child poverty achieved under Labour may be reversed as a result of coalition policies. See 11.30am.• The Child Poverty Action Group has said that the big reductions in child poverty achieved under Labour may be reversed as a result of coalition policies. See 11.30am.
• Stonewall, the gay rights group, has accused the Church of England of scaremonering about the impact of the government's plans to allow gay marriage. Ben Summerskill, the Stonewall chief executive, said that he did not accept that the proposal would stop the CoE being able to perform weddings on behalf of the state.• Stonewall, the gay rights group, has accused the Church of England of scaremonering about the impact of the government's plans to allow gay marriage. Ben Summerskill, the Stonewall chief executive, said that he did not accept that the proposal would stop the CoE being able to perform weddings on behalf of the state.
Many bishops in the Church of England today will be rather pleased because once again they are not talking about global poverty or the HIV pandemic - they are talking about the subject that obsesses them, and that is sex. I have not come across such a masterclass in melodramatic scaremongering - that somehow this is the biggest upheaval since the sacking of the monasteries - since as a journalist myself a decade ago I was summoned to a government briefing to be told about weapons of mass destruction in Iraq.Many bishops in the Church of England today will be rather pleased because once again they are not talking about global poverty or the HIV pandemic - they are talking about the subject that obsesses them, and that is sex. I have not come across such a masterclass in melodramatic scaremongering - that somehow this is the biggest upheaval since the sacking of the monasteries - since as a journalist myself a decade ago I was summoned to a government briefing to be told about weapons of mass destruction in Iraq.

Theresa May, the home secretary, has insisted that the governments plans will not result in churches being forced to host same-sex marriages.
Theresa May, the home secretary, has insisted that the governments plans will not result in churches being forced to host same-sex marriages.
The government does not want to impose anything on any religious organisation or church. We don't want to ask anybody, we won't be asking anybody to do something that goes against their conscience.The government does not want to impose anything on any religious organisation or church. We don't want to ask anybody, we won't be asking anybody to do something that goes against their conscience.


• The Ministry of Defence has given details of the 3,800 redundancies being made in the latest round of service job cuts. Most of the posts are going from the army.

• Chuka Umunna, the shadow business secretary, has accused Michael Gove, the education secretary, of wanting to take charge of higher education policy. In a speech on higher education, Umunna said it should remain the responsibility of the Department for Business.

• The Ministry of Defence has given details of the 3,800 redundancies being made in the latest round of service job cuts. Most of the posts are going from the army.

• Chuka Umunna, the shadow business secretary, has accused Michael Gove, the education secretary, of wanting to take charge of higher education policy. In a speech on higher education, Umunna said it should remain the responsibility of the Department for Business.

Speculation on the location of H.E. policy in Whitehall is rife. The Education Secretary Michael Gove has made no secret of his desire to launch a land grab and acquire H.E. for his department – which some of you have told me fills you with dismay. Vince Cable has told me in Parliament that H.E. will remain within BIS. It needs to.
Speculation on the location of H.E. policy in Whitehall is rife. The Education Secretary Michael Gove has made no secret of his desire to launch a land grab and acquire H.E. for his department – which some of you have told me fills you with dismay. Vince Cable has told me in Parliament that H.E. will remain within BIS. It needs to.
Moving H.E. will cause another layer of disruption and uncertainty. A time of stalled growth is not the time to break up the so-called 'Department for Growth', with H.E. treated as a political football by the Lib Dems and the Tories, and the sector's future being dragged into an internal battles of egos and political turf warfare.Moving H.E. will cause another layer of disruption and uncertainty. A time of stalled growth is not the time to break up the so-called 'Department for Growth', with H.E. treated as a political football by the Lib Dems and the Tories, and the sector's future being dragged into an internal battles of egos and political turf warfare.
• Tim Loughton, the children's minister, has announced plans to simply child protection regulations, "axing hundreds of pages of instruction manuals and replacing it with short, precise guidance and checklists clearly listing roles and responsibilities".

• William Hague, the foreign secretary, has said that Britain remains an "unswerving supporter" of Pakistan's development.

• Willie Walsh, head of the International Airlines Group that owns British Airways, has accused the government of being "completely out of touch" with the needs of the aviation industry.
• Tim Loughton, the children's minister, has announced plans to simply child protection regulations, "axing hundreds of pages of instruction manuals and replacing it with short, precise guidance and checklists clearly listing roles and responsibilities".

• William Hague, the foreign secretary, has said that Britain remains an "unswerving supporter" of Pakistan's development.

• Willie Walsh, head of the International Airlines Group that owns British Airways, has accused the government of being "completely out of touch" with the needs of the aviation industry.
• Ofsted has revealed that almost half of schools inspected in the first three months of this year were found to be not good enough. As the Press Association reveals, statistics published by Ofsted reveal that 34% of the 1,964 schools visited by inspectors - 658 in total - between January and March were only satisfactory. And a further 9% - 183 - were judged to be inadequate and either given a notice to improve or put in special measures. This is higher than the previous academic year (2010/11) when 6% were found to be inadequate.• Ofsted has revealed that almost half of schools inspected in the first three months of this year were found to be not good enough. As the Press Association reveals, statistics published by Ofsted reveal that 34% of the 1,964 schools visited by inspectors - 658 in total - between January and March were only satisfactory. And a further 9% - 183 - were judged to be inadequate and either given a notice to improve or put in special measures. This is higher than the previous academic year (2010/11) when 6% were found to be inadequate.
12.33pm: Andrew Pollard, who was a member of the expert panel set up to advise Michael Gove on curriculum reform, has written a fairly damning analysis of the reform plans published by Gove yesterday. It's on the Institute of Education blog. Here's an extract.12.33pm: Andrew Pollard, who was a member of the expert panel set up to advise Michael Gove on curriculum reform, has written a fairly damning analysis of the reform plans published by Gove yesterday. It's on the Institute of Education blog. Here's an extract.
For my own part, I would not deny that subject knowledge is important nor demur from sustained efforts to consider how it should be most appropriately represented in a programme of study. And of course, the idea sounds wonderful – yes, let's sort out, once and for all, when spelling of particular words will be mastered, and the use of apostrophes, and the subjunctive, and so on. So this approach is likely to be very attractive to the public.For my own part, I would not deny that subject knowledge is important nor demur from sustained efforts to consider how it should be most appropriately represented in a programme of study. And of course, the idea sounds wonderful – yes, let's sort out, once and for all, when spelling of particular words will be mastered, and the use of apostrophes, and the subjunctive, and so on. So this approach is likely to be very attractive to the public.
But the approach is fatally flawed without parallel consideration of the needs of learners. Primary teachers consider the overall experiences of each child, and try to provide a broad and balanced curriculum as is required by law. The skill and expertise of the teacher lies in building on each pupil's existing understanding and capabilities, and in matching tasks to extend attainment. To do these things, they need scope to exercise professional judgement.But the approach is fatally flawed without parallel consideration of the needs of learners. Primary teachers consider the overall experiences of each child, and try to provide a broad and balanced curriculum as is required by law. The skill and expertise of the teacher lies in building on each pupil's existing understanding and capabilities, and in matching tasks to extend attainment. To do these things, they need scope to exercise professional judgement.
12.18pm: According to the Financial Times (subscription), FTSE 100 bosses received a 10% pay increase on average last year. Here's an extract from the story.12.18pm: According to the Financial Times (subscription), FTSE 100 bosses received a 10% pay increase on average last year. Here's an extract from the story.
The row over rising executive pay has been reignited by a survey showing the median total remuneration of FTSE 100 bosses increased 10 per cent last year to £3.7m.The row over rising executive pay has been reignited by a survey showing the median total remuneration of FTSE 100 bosses increased 10 per cent last year to £3.7m.
The rise was five times the increase in average earnings across the economy, well above inflation, and came at a time when the FTSE 100 index fell 5 per cent.The rise was five times the increase in average earnings across the economy, well above inflation, and came at a time when the FTSE 100 index fell 5 per cent.
The figures were revealed in an annual survey by Manifest, the proxy voting agency, and MM&K, a remuneration consultancy.The figures were revealed in an annual survey by Manifest, the proxy voting agency, and MM&K, a remuneration consultancy.


Chuka Umunna, the shadow business secretary, says these figures highlight the need for binding shareholder votes on pay.

Chuka Umunna, the shadow business secretary, says these figures highlight the need for binding shareholder votes on pay.
In light of these staggering figures, where pay hikes are not matched by increases in shareholder returns, it is not surprising that investors have adopted a more activist approach on remuneration.In light of these staggering figures, where pay hikes are not matched by increases in shareholder returns, it is not surprising that investors have adopted a more activist approach on remuneration.
That the Conservative led Government is rowing back from introducing annual binding shareholder votes on remuneration, at a time when shareholders are taking a much firmer line on these matters, shows just how out of touch with the investor community they have become.That the Conservative led Government is rowing back from introducing annual binding shareholder votes on remuneration, at a time when shareholders are taking a much firmer line on these matters, shows just how out of touch with the investor community they have become.
12.07pm: Stonewall has published some hefty research into attitudes to gay, lesbian and bisexual people in the UK. It shows that 58% of people - and more than 80% of people under 50 - support the government's plans for gay marriage.12.07pm: Stonewall has published some hefty research into attitudes to gay, lesbian and bisexual people in the UK. It shows that 58% of people - and more than 80% of people under 50 - support the government's plans for gay marriage.
It also shows that 83% of people would be comfortable, very comfortable or neutral about an heir to the throne (William and Kate's first child, when he or she is born and grows up) being gay.It also shows that 83% of people would be comfortable, very comfortable or neutral about an heir to the throne (William and Kate's first child, when he or she is born and grows up) being gay.
The news release about the survey is here. And the full report is here (pdf).The news release about the survey is here. And the full report is here (pdf).
11.30am: In her Guardian column today Polly Toynbee mentions a Child Poverty Action Group report saying that the large reductions in child poverty achieved under Labour may be reversed by the coalition. The report is now available on the CPAG website. Here's an extract.11.30am: In her Guardian column today Polly Toynbee mentions a Child Poverty Action Group report saying that the large reductions in child poverty achieved under Labour may be reversed by the coalition. The report is now available on the CPAG website. Here's an extract.
What the contributors show is that significant progress has been made over the last decade. As Kitty Stewart highlights in Chapter One, between 1998 and 2010 child poverty looks set to have reduced by 900,000 children when using a 'before housing costs' measure. However, this headline figure underestimates the actual progress made over the period: if no action had been taken to reduce child poverty in the 2000s, it is projected that an additional 900,000 children would have fallen into poverty during the decade.What the contributors show is that significant progress has been made over the last decade. As Kitty Stewart highlights in Chapter One, between 1998 and 2010 child poverty looks set to have reduced by 900,000 children when using a 'before housing costs' measure. However, this headline figure underestimates the actual progress made over the period: if no action had been taken to reduce child poverty in the 2000s, it is projected that an additional 900,000 children would have fallen into poverty during the decade.
In addition, there is conclusive evidence that these gains were real and sustained, and not merely a matter of small improvements occurring at the threshold of poverty. As Mike Brewer shows in Chapter Five, child poverty would have been reduced if the poverty line had been drawn anywhere from 43 to 100 per cent of median income. As a result, the 'poverty plus a pound' thesis is decisively disproved.In addition, there is conclusive evidence that these gains were real and sustained, and not merely a matter of small improvements occurring at the threshold of poverty. As Mike Brewer shows in Chapter Five, child poverty would have been reduced if the poverty line had been drawn anywhere from 43 to 100 per cent of median income. As a result, the 'poverty plus a pound' thesis is decisively disproved.
This is particularly embarrassing for the coalition because ministers like David Cameron (here) and George Osborne (here) have repeatedly argued that Labour's child poverty policy just involved moving children from one side of an arbitrary poverty line to another.

Stephen Timms (pictured), the shadow employment minister, has put out a statement about the CPAG report. Here's an extract.		This is particularly embarrassing for the coalition because ministers like David Cameron (here) and George Osborne (here) have repeatedly argued that Labour's child poverty policy just involved moving children from one side of an arbitrary poverty line to another.

Stephen Timms (pictured), the shadow employment minister, has put out a statement about the CPAG report. Here's an extract.
This report is yet another nail in the coffin for compassionate conservatism. After all the rhetoric the truth is becoming increasingly clear – this Government is undoing a decade of progress in tackling child poverty.This report is yet another nail in the coffin for compassionate conservatism. After all the rhetoric the truth is becoming increasingly clear – this Government is undoing a decade of progress in tackling child poverty.
11.10am: You can read all today's Guardian politics stories here. And all the politics stories filed yesterday, including some in today's paper, are here.11.10am: You can read all today's Guardian politics stories here. And all the politics stories filed yesterday, including some in today's paper, are here.
As for the rest of the papers, here are some articles and stories that are particularly interesting.

• Rachel Sylvester in the Times (paywall) says politicians are coming out in favour of a referendum on the EU without having decided what they actually think about what Britain's relationship with the EU should be.		As for the rest of the papers, here are some articles and stories that are particularly interesting.

• Rachel Sylvester in the Times (paywall) says politicians are coming out in favour of a referendum on the EU without having decided what they actually think about what Britain's relationship with the EU should be.

The truth is that the idea of a referendum has become something close to a fetish for Tory Eurosceptics, who see it as a way of preventing their faithless leaders from betraying them. According to one minister, when Sir James Goldsmith set up the Referendum Party to challenge John Major, "what entered the Tory DNA was that a referendum was a way of stopping a perfidious establishment elite of inveigling us further into Europe because the public would stop them". At the same time, of course, Labour realised that this was the way to get under the Conservatives' skin.
The truth is that the idea of a referendum has become something close to a fetish for Tory Eurosceptics, who see it as a way of preventing their faithless leaders from betraying them. According to one minister, when Sir James Goldsmith set up the Referendum Party to challenge John Major, "what entered the Tory DNA was that a referendum was a way of stopping a perfidious establishment elite of inveigling us further into Europe because the public would stop them". At the same time, of course, Labour realised that this was the way to get under the Conservatives' skin.
Now, with the eurozone in crisis and the EU in flux, politicians of all parties are superimposing their own fantasies on to an imaginary vote. To the Tory Eurosceptics, it's the chance for Britain to get out of the EU finally. To Labour's pro-Europeans it's a moment to defeat the Eurosceptics once and for all. This is as much about politics as the public. Mr Osborne sees a chance to win back the support of Conservative rightwingers after a tricky few weeks since the Budget (it is no coincidence that his comments followed Boris Johnson's decision to endorse a referendum). Lord Mandelson spots an opportunity to make mischief and split the Tory party down the middle. The danger is that expectations are raised that cannot be met, further undermining trust in politics.Now, with the eurozone in crisis and the EU in flux, politicians of all parties are superimposing their own fantasies on to an imaginary vote. To the Tory Eurosceptics, it's the chance for Britain to get out of the EU finally. To Labour's pro-Europeans it's a moment to defeat the Eurosceptics once and for all. This is as much about politics as the public. Mr Osborne sees a chance to win back the support of Conservative rightwingers after a tricky few weeks since the Budget (it is no coincidence that his comments followed Boris Johnson's decision to endorse a referendum). Lord Mandelson spots an opportunity to make mischief and split the Tory party down the middle. The danger is that expectations are raised that cannot be met, further undermining trust in politics.
She also quotes a Conservative cabinet member as saying: "Europe is now in play in a way it hasn't been for a long, long time. All options are on the table and clearly withdrawal is one of the options."

• Philip Stephens in the Financial Times (subscription) says the plan for a European banking union could push Britain out of Europe.		She also quotes a Conservative cabinet member as saying: "Europe is now in play in a way it hasn't been for a long, long time. All options are on the table and clearly withdrawal is one of the options."

• Philip Stephens in the Financial Times (subscription) says the plan for a European banking union could push Britain out of Europe.
For the first time since Edward Heath abandoned Churchillian hauteur to take Britain into Europe in 1973, senior figures in Whitehall are contemplating the serious possibility of a permanent rupture in the relationship. To say that Britain may leave the EU – or at the very least retreat to a looser arrangement with its continental partners – has moved from the realm of eurosceptic daydreaming to that of an entirely plausible side effect of the present euro drama.For the first time since Edward Heath abandoned Churchillian hauteur to take Britain into Europe in 1973, senior figures in Whitehall are contemplating the serious possibility of a permanent rupture in the relationship. To say that Britain may leave the EU – or at the very least retreat to a looser arrangement with its continental partners – has moved from the realm of eurosceptic daydreaming to that of an entirely plausible side effect of the present euro drama.
The emerging plan for a European banking union will seem to many a baffling, if not banal, casus belli. But the creation of a single authority to oversee banks across the eurozone strikes at the heart of the central contradiction in Mr Cameron's policy: a determination not to share national decision-making alongside an insistence that decisions taken in Berlin, Paris and Rome must not intrude on British interests ...The emerging plan for a European banking union will seem to many a baffling, if not banal, casus belli. But the creation of a single authority to oversee banks across the eurozone strikes at the heart of the central contradiction in Mr Cameron's policy: a determination not to share national decision-making alongside an insistence that decisions taken in Berlin, Paris and Rome must not intrude on British interests ...
Mr Cameron insists that while Britain will stand aside from the new authority, London's place as Europe's pre-eminent financial centre must be fully protected. Understandably, his eurozone counterparts are unwilling to write a blank cheque. This looks like a circle impossible to square.Mr Cameron insists that while Britain will stand aside from the new authority, London's place as Europe's pre-eminent financial centre must be fully protected. Understandably, his eurozone counterparts are unwilling to write a blank cheque. This looks like a circle impossible to square.

• George Parker in the Financial Times (subscription) says Lord O'Donnell, the former head of the civil service, thinks City firms should pay key Treasury staff to stop them leaving the department.
• George Parker in the Financial Times (subscription) says Lord O'Donnell, the former head of the civil service, thinks City firms should pay key Treasury staff to stop them leaving the department.
City banks should pay the salaries of key Treasury civil servants to help halt the exodus of talent from the department , according to the former head of the civil service.City banks should pay the salaries of key Treasury civil servants to help halt the exodus of talent from the department , according to the former head of the civil service.
Lord O'Donnell, making his first speech since arriving in the upper house, argued that the financial services sector would benefit from the retention of high quality officials in the Treasury.Lord O'Donnell, making his first speech since arriving in the upper house, argued that the financial services sector would benefit from the retention of high quality officials in the Treasury.
He argued that banks and other institutions already funded staff at the Financial Services Authority and Bank of England and that the same principle could apply to Treasury staff working on financial stability issues.He argued that banks and other institutions already funded staff at the Financial Services Authority and Bank of England and that the same principle could apply to Treasury staff working on financial stability issues.
• Frances Gibb in the Times (paywall) says MPs have been told that they cannot punish the three News International executives accused of misleading parliament without holding a full trial.• Frances Gibb in the Times (paywall) says MPs have been told that they cannot punish the three News International executives accused of misleading parliament without holding a full trial.
MPs are to be told that they must hold a full public trial of three News International executives accused of contempt of Parliament or be in breach of the Human Rights Act, The Times has learnt.MPs are to be told that they must hold a full public trial of three News International executives accused of contempt of Parliament or be in breach of the Human Rights Act, The Times has learnt.
In a report to be delivered this week, Ben Emmerson, a leading human rights QC, will say that either MPs must stage what would be the first trial in the Palace of Westminster for about 200 years or acknowledge that their historical powers are now drastically limited.In a report to be delivered this week, Ben Emmerson, a leading human rights QC, will say that either MPs must stage what would be the first trial in the Palace of Westminster for about 200 years or acknowledge that their historical powers are now drastically limited.
The Commons Standards and Privileges Committee has taken the first steps towards punishing the executives for alleged contempt of Parliament after the MPs' Culture, Media and Sports Committee accused the three men of giving misleading evidence.The Commons Standards and Privileges Committee has taken the first steps towards punishing the executives for alleged contempt of Parliament after the MPs' Culture, Media and Sports Committee accused the three men of giving misleading evidence.
But the legal advice, commissioned by the standards watchdog, is expected to present stark options with far-reaching constitutional implications.But the legal advice, commissioned by the standards watchdog, is expected to present stark options with far-reaching constitutional implications.
The report is likely to conclude that either MPs hold a full trial with the executives represented by lawyers, or MPs will be in breach of the Human Rights Act's right to a fair trial and due process. Alternatively, MPs will have to accept publicly that Parliament has no realistic power to punish people for contempt.The report is likely to conclude that either MPs hold a full trial with the executives represented by lawyers, or MPs will be in breach of the Human Rights Act's right to a fair trial and due process. Alternatively, MPs will have to accept publicly that Parliament has no realistic power to punish people for contempt.
11.00am: Back to Sir John Major, who has just paid a very generous tribute to Neil Kinnock. Major said that he did not know Kinnock well before he became prime minister, but in their dealings (Kinnock was Labour leader at the time) he found him "very honest, very straightforward".11.00am: Back to Sir John Major, who has just paid a very generous tribute to Neil Kinnock. Major said that he did not know Kinnock well before he became prime minister, but in their dealings (Kinnock was Labour leader at the time) he found him "very honest, very straightforward".

If I met him privately, it stayed private ... If he gave me his word, he kept his word.
If I met him privately, it stayed private ... If he gave me his word, he kept his word.
Kinnock was a "much more considerable person" than he was portrayed as being in the media, Major said.Kinnock was a "much more considerable person" than he was portrayed as being in the media, Major said.
10.55am: William Hague, the foreign secretary, has given a press conference in Islamabad. He said Britain does not want foreign military intervention in Syria.10.55am: William Hague, the foreign secretary, has given a press conference in Islamabad. He said Britain does not want foreign military intervention in Syria.
Clearly, we are not looking for any foreign military intervention and we should not think about it in terms of 'another Libya'. As I was pointing out to the House of Commons yesterday, the analogy is now more to the situation in the Balkans as it develops now, that we see the regime using heavy weapons against civilian-populated areas and then sending in militias to kill and murder people. This is reminiscent of Bosnia in the early 1990s.Clearly, we are not looking for any foreign military intervention and we should not think about it in terms of 'another Libya'. As I was pointing out to the House of Commons yesterday, the analogy is now more to the situation in the Balkans as it develops now, that we see the regime using heavy weapons against civilian-populated areas and then sending in militias to kill and murder people. This is reminiscent of Bosnia in the early 1990s.
So I don't think we should be thinking in terms of the Libyan situation last year. All our efforts are going into supporting a peaceful transition in Syria and a peaceful solution, because any violent solution would clearly involve many more deaths and a great deal more hardship for the Syrian people.So I don't think we should be thinking in terms of the Libyan situation last year. All our efforts are going into supporting a peaceful transition in Syria and a peaceful solution, because any violent solution would clearly involve many more deaths and a great deal more hardship for the Syrian people.
10.46am: Here's the start of the story that the Press Association has filed from the opening of Sir John Major's evidence to the Leveson inquiry.10.46am: Here's the start of the story that the Press Association has filed from the opening of Sir John Major's evidence to the Leveson inquiry.

Former Conservative prime minister Margaret Thatcher admired "buccaneering businessmen" who were prepared to take risks, an inquiry into press standards was told today.
Sir John Major - who succeeded Mrs Thatcher as Tory premier in 1990 - told the Leveson Inquiry that newspaper proprietors fell into that "buccaneering" category.
And Sir John said Mrs Thatcher's right-wing views appealed to national newspaper editors and proprietors.
He was speaking after being asked to outline the relationship Mrs Thatcher - now Baroness Thatcher - had with newspaper tycoon Rupert Murdoch, owner of The Sun.
"I think she admired buccaneering businessmen who were prepared to take risks," Sir John told today's hearing in London. "And that certainly applied to proprietors of newspapers."
He said Mrs Thatcher's policies on issues such as trade union reform and Europe appealed to most national newspapers.
"Margaret was probably the most right of centre leader the Conservative Party had had for a long time," said Sir John, who left office in 1997.
"I think that appealed to national newspaper editors and proprietors."
Former Conservative prime minister Margaret Thatcher admired "buccaneering businessmen" who were prepared to take risks, an inquiry into press standards was told today.
Sir John Major - who succeeded Mrs Thatcher as Tory premier in 1990 - told the Leveson Inquiry that newspaper proprietors fell into that "buccaneering" category.
And Sir John said Mrs Thatcher's right-wing views appealed to national newspaper editors and proprietors.
He was speaking after being asked to outline the relationship Mrs Thatcher - now Baroness Thatcher - had with newspaper tycoon Rupert Murdoch, owner of The Sun.
"I think she admired buccaneering businessmen who were prepared to take risks," Sir John told today's hearing in London. "And that certainly applied to proprietors of newspapers."
He said Mrs Thatcher's policies on issues such as trade union reform and Europe appealed to most national newspapers.
"Margaret was probably the most right of centre leader the Conservative Party had had for a long time," said Sir John, who left office in 1997.
"I think that appealed to national newspaper editors and proprietors."
10.15am: Sir John Major has told the Leveson inquiry that Kelvin MacKenzie made it up about the "bucket of shit". (See 8.50am.) Major did not quite put it like that, of course, but he said that he read MacKenzie's account of their Black Wednesday conversation "with a degree of wonder and surprise". If MacKenzie had used the "bucket of shit" line, he would have remembered it, Major said. But he doesn't. And he would not have invited MacKenzie to Number 10 12 months later, as he did, if the conversation had taken that course.10.15am: Sir John Major has told the Leveson inquiry that Kelvin MacKenzie made it up about the "bucket of shit". (See 8.50am.) Major did not quite put it like that, of course, but he said that he read MacKenzie's account of their Black Wednesday conversation "with a degree of wonder and surprise". If MacKenzie had used the "bucket of shit" line, he would have remembered it, Major said. But he doesn't. And he would not have invited MacKenzie to Number 10 12 months later, as he did, if the conversation had taken that course.
10.06am: Sir John Major is giving evidence to the Leveson inquiry now.10.06am: Sir John Major is giving evidence to the Leveson inquiry now.

You can follow the proceedings on our Leveson live blog.
You can follow the proceedings on our Leveson live blog.
9.52am: The Ministry of Defence has announced details of another round of redundancies. Some 3,800 servicemen and women are leaving. Here's the MoD news release.9.52am: The Ministry of Defence has announced details of another round of redundancies. Some 3,800 servicemen and women are leaving. Here's the MoD news release.
And here's the chart setting out the details. Applicants are people who applied for redundancy. "Non-applicants" is a euphemism for those being sacked.And here's the chart setting out the details. Applicants are people who applied for redundancy. "Non-applicants" is a euphemism for those being sacked.
People being made redundant will be told face-to-face.People being made redundant will be told face-to-face.
Here's a statement that Philip Hammond, the defence secretary, has put out about the job losses.Here's a statement that Philip Hammond, the defence secretary, has put out about the job losses.
Of course I regret that it has been necessary to make redundancies to deliver our plans for reducing the size of the Armed Forces. We inherited a multi billion pound black hole in the defence budget which had meant the previous Government had not been able to afford to properly equip our troops with the kit they needed.Of course I regret that it has been necessary to make redundancies to deliver our plans for reducing the size of the Armed Forces. We inherited a multi billion pound black hole in the defence budget which had meant the previous Government had not been able to afford to properly equip our troops with the kit they needed.
We've now brought the defence budget back into balance for the first time in a generation. We will have smaller Armed Forces but we will ensure they will have the protection and equipment they need.We've now brought the defence budget back into balance for the first time in a generation. We will have smaller Armed Forces but we will ensure they will have the protection and equipment they need.
The Royal Navy and RAF redundancy figures are smaller than anticipated due to the MoD's ability to use other measures such as slowing recruitment. No further significant reductions are expected for the Royal Navy or RAF. We still have some way to go to bring the size of the Army down to 82,000 and decisions on what is necessary to achieve this are yet to be taken, but we won't compromise the mission in Afghanistan.The Royal Navy and RAF redundancy figures are smaller than anticipated due to the MoD's ability to use other measures such as slowing recruitment. No further significant reductions are expected for the Royal Navy or RAF. We still have some way to go to bring the size of the Army down to 82,000 and decisions on what is necessary to achieve this are yet to be taken, but we won't compromise the mission in Afghanistan.
9.44am: Matt in the Telegraph is particularly good today.9.44am: Matt in the Telegraph is particularly good today.
9.33am: For the record, here are the latest YouGov GB polling figures.9.33am: For the record, here are the latest YouGov GB polling figures.
Labour: 45% (up 3 points from YouGov in the Sunday Times)
Conservatives: 31% (down 3)
Lib Dems: 9% (up 2)
Ukip: 9% (no change)		Labour: 45% (up 3 points from YouGov in the Sunday Times)
Conservatives: 31% (down 3)
Lib Dems: 9% (up 2)
Ukip: 9% (no change)
Labour lead: 14 pointsLabour lead: 14 points
Government approval: -38Government approval: -38
This is the fourth time a YouGov poll has put the Labour lead at 14 points, the largest it has been since the general election.This is the fourth time a YouGov poll has put the Labour lead at 14 points, the largest it has been since the general election.
9.11am: As Randeep Ramesh reports in the Guardian today, the annual British Social Attitudes survey has recorded the largest fall in public satisfaction with the NHS for a decade.9.11am: As Randeep Ramesh reports in the Guardian today, the annual British Social Attitudes survey has recorded the largest fall in public satisfaction with the NHS for a decade.
Simon Burns (pictured), the health minister, has been on BBC News this morning questioning the validity of the findings. According to PoliticsHome, he said patient surveys gave a different impression.Simon Burns (pictured), the health minister, has been on BBC News this morning questioning the validity of the findings. According to PoliticsHome, he said patient surveys gave a different impression.
It doesn't tell the full story. If you look at the inpatient survey – that is, people who have been treated – which is going to be published later this week, it shows that 92% of people were very satisfied or thought that the service they got being treated was good. The survey you refer to, which is based on 1,000 people, was members of the public, not necessarily people who'd actually had any experience of the health service during the time.It doesn't tell the full story. If you look at the inpatient survey – that is, people who have been treated – which is going to be published later this week, it shows that 92% of people were very satisfied or thought that the service they got being treated was good. The survey you refer to, which is based on 1,000 people, was members of the public, not necessarily people who'd actually had any experience of the health service during the time.
Burns also said that the British Social Attitudes survey was carried out in the autumn of last year, when the row about the health bill was at its height. "A lot of things were thrown about that were totally inaccurate and there would have been an impact on people's views of the health service," Burns said.Burns also said that the British Social Attitudes survey was carried out in the autumn of last year, when the row about the health bill was at its height. "A lot of things were thrown about that were totally inaccurate and there would have been an impact on people's views of the health service," Burns said.
The story is based on an analysis of the British Social Attitudes survey figures carried out by the King's Fund, the health thinktank, which you can read here.The story is based on an analysis of the British Social Attitudes survey figures carried out by the King's Fund, the health thinktank, which you can read here.
Andy Burnham, the shadow health secretary, has been responding on Twitter.Andy Burnham, the shadow health secretary, has been responding on Twitter.
"@BBCr4today: #NHS survey "influenced by noises-off in political sphere" says Simon Burns" < he really needs to get that brass-neck seen to."@BBCr4today: #NHS survey "influenced by noises-off in political sphere" says Simon Burns" < he really needs to get that brass-neck seen to.
— Andy Burnham (@andyburnhammp) June 12, 2012— Andy Burnham (@andyburnhammp) June 12, 2012
8.50am: The Leveson inquiry is taking us all on another ramble down memory lane this morning, with Sir John Major (remember him?) giving evidence. Neil Kinnock is normally cited as the political leader most viciously trashed by the tabloid press, but the last Conservative leader to win a general election must come a close second and it will be interesting to hear him tell his version of the Kelvin MacKenzie "bucket of shit" story. Back at Westminster, it's a patchy day, with lots of select committees sitting. And the Church of England's claim that gay marriage could undermine its status as the state church is leading the news. Crispin Blunt, the justice minister, has been playing down the significance of what its saying. According to PoliticsHome, this is what Blunt told BBC News.8.50am: The Leveson inquiry is taking us all on another ramble down memory lane this morning, with Sir John Major (remember him?) giving evidence. Neil Kinnock is normally cited as the political leader most viciously trashed by the tabloid press, but the last Conservative leader to win a general election must come a close second and it will be interesting to hear him tell his version of the Kelvin MacKenzie "bucket of shit" story. Back at Westminster, it's a patchy day, with lots of select committees sitting. And the Church of England's claim that gay marriage could undermine its status as the state church is leading the news. Crispin Blunt, the justice minister, has been playing down the significance of what its saying. According to PoliticsHome, this is what Blunt told BBC News.

As far as I can see the Church of England is split down the middle on this issue and, of course, what the government are proposing is around marriage in the eyes of the state. We're seeking to protect, indeed, proscribe religious organisations from offering gay marriage. That may be problematic legally, but the proposal the government are putting forward is that marriage should be equal in the eyes of the state whether it's between a same-sex couple or between a man and a woman.
As far as I can see the Church of England is split down the middle on this issue and, of course, what the government are proposing is around marriage in the eyes of the state. We're seeking to protect, indeed, proscribe religious organisations from offering gay marriage. That may be problematic legally, but the proposal the government are putting forward is that marriage should be equal in the eyes of the state whether it's between a same-sex couple or between a man and a woman.
The Church of England's full statement on gay marriage is available here (pdf).The Church of England's full statement on gay marriage is available here (pdf).
Here's the full agenda for the day.

9.30am: Nick Herbert, the policing minister, Tom Winsor, the government's preferred candidate for the next chief inspector of constabulary, and Sir Hugh Orde, president of the Association of Chief Police Officers, speak at a policing conference.		Here's the full agenda for the day.

9.30am: Nick Herbert, the policing minister, Tom Winsor, the government's preferred candidate for the next chief inspector of constabulary, and Sir Hugh Orde, president of the Association of Chief Police Officers, speak at a policing conference.
10am: Sir John Major, the former prime minister, Ed Miliband, the Labour leader, and Harriet Harman, the deputy Labour leader, give evidence to the Leveson inquiry.10am: Sir John Major, the former prime minister, Ed Miliband, the Labour leader, and Harriet Harman, the deputy Labour leader, give evidence to the Leveson inquiry.
10am: Remunertion experts give evidence to the Commons Treasury committee about City pay.10am: Remunertion experts give evidence to the Commons Treasury committee about City pay.
10am: Energy companies give evidence to a Commons committee about the draft energy bill.10am: Energy companies give evidence to a Commons committee about the draft energy bill.
10.30am: James O'Shaughnessy, Michael Jacobs and Duncan Brack, former special advisers, give evidence to the Commons public administration committee about their role.10.30am: James O'Shaughnessy, Michael Jacobs and Duncan Brack, former special advisers, give evidence to the Commons public administration committee about their role.
11am: Peter Fahy, the Manchester police chief constable, Colin Lambert, leader of Rochdale council, and others give evidence to the Commons home affairs committee about child grooming.11am: Peter Fahy, the Manchester police chief constable, Colin Lambert, leader of Rochdale council, and others give evidence to the Commons home affairs committee about child grooming.
11.30am: David Willetts, the universities minister, gives evidence to the Commons business committee about higher education reform.11.30am: David Willetts, the universities minister, gives evidence to the Commons business committee about higher education reform.
As usual, I'll be covering all the breaking political news, as well as looking at the papers and bringing you the best politics from the web. I'll post a lunchtime summary at around 1pm and another in the afternoon.As usual, I'll be covering all the breaking political news, as well as looking at the papers and bringing you the best politics from the web. I'll post a lunchtime summary at around 1pm and another in the afternoon.
If you want to follow me on Twitter, I'm on @AndrewSparrow.If you want to follow me on Twitter, I'm on @AndrewSparrow.
And if you're a hardcore fan, you can follow @gdnpoliticslive. It's an automated feed that tweets the start of every new post that I put on the blog.And if you're a hardcore fan, you can follow @gdnpoliticslive. It's an automated feed that tweets the start of every new post that I put on the blog.