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For good reason, much attention was devoted to the Supreme Court’s oral arguments on Monday, over government pressure on social media companies to suppress speech that officialdom doesn’t like. The same day, though, justices heard arguments in another important case involving free speech principles violated when New York officials leaned on financial institutions to deny services to the National Rifle Association. Importantly, both cases involved “jawboning,” the use by government of threats to improperly coerce compliance.

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Δ When Communication Becomes Coercion

As Reason’s Jacob Sullum ably summarizes, arguments in Murthy v. Missouri involve “dueling interpretations of the Biden administration’s interactions with social media platforms regarding content it viewed as dangerous to public health, democracy, or national security,” with plaintiffs arguing that “those private contacts, combined with public statements condemning the platforms’ failure to suppress ‘misinformation,’ amounted to government-directed censorship.”

At stake is the point at which efforts to persuade private companies they ought not offer platforms to certain speakers morph into “nice business you got there; it’d be a shame if something happened to it.” Did officials cross the line when they badgered tech firms to muzzle voices skeptical of lockdowns, COVID vaccinations, and election integrity? If you’ve followed the Twitter and Facebook Files, you know there’s significant evidence they did, though it remains to be seen if Supreme Court justices agree.

Remarkably, the evidence of improper strong-arming appears even clearer in National Rifle Association of America v. Vullo. In that case, the NRA, joined by the ACLU, alleges that Maria Vullo, former Superintendent of the New York State Department of Financial Services, abused the power of her position to punish the gun rights organization for its political positions.

“Vullo met with executives at Lloyd’s of London to discuss her views on gun control and to tell them she believed the company’s underwriting of NRA-endorsed insurance policies raised regulatory issues,” according to Abby Smith of the Foundation for Individual Rights and Expression (FIRE). “She told them Lloyd’s could ‘avoid liability’but only if the company told its syndicates to stop underwriting their insurance policies, and joined her agency’s ‘campaign against gun groups.'”

There was nothing subtle about the arm-twisting. In 2018 I wrote about guidance letters New York regulators sent to banks and insurance companies, at the behest of then-Gov. Andrew Cuomo, cautioning “regulated institutions to review any relationships they have with the NRA or similar gun promotion organizations, and to take prompt actions to managing these risks and promote public health and safety.” Given that insurance companies and banks are tightly regulated and operate largely at the pleasure of state officials, this would logically be interpreted as a threat. Subsequently, banks and insurance companies alike cut ties with the NRA.

“New York, if these facts are true, tried to circumvent the First Amendment’s ban on censorship by relying on this informal pressure campaign,” noted FIRE’s Smith. “But informal censorship violates the First Amendment, too.” Extra-Legal Threats Violate Individual Rights Protections, Say the Courts

Such informal censorship is known as “jawboning” since, as the Cato Institute’s Will Duffield wrote in 2022, it involves “bullying, threatening, and cajoling” in the place of formal legal action.

“Jawboning occurs when a government official threatens to use his or her powerbe it the power to prosecute, regulate, or legislateto compel someone to take actions that the state official cannot,” observed Duffield. “Jawboning is dangerous because it allows government officials to assume powers not granted to them by law.”

Despite formal protections for individual liberties, such as the First Amendment, the vast regulatory power wielded by government agencies in the United States is easily weaponized against people who don’t do the government’s bidding. Such abuses aren’t hypothetical but are a matter of public record already addressed by the courts.

“People do not lightly disregard public officers’ thinly veiled threats to institute criminal proceedings against them if they do not come around,” the U.S. Supreme Court recognized in Bantam Books v. Sullivan (1963). That case involved Rhode Island officials hassling booksellers to refrain from stocking allegedly obscene publications. The implied threats and constant nagging of booksellers by state officials “was in fact a scheme of state censorship effectuated by extra-legal sanctions,” ruled the court.

Does “a scheme of state censorship effectuated by extra-legal sanctions” better describe the situation in the Murthy case or in the NRA case? Well, Monday was a twofer day, so why not both? A Strong Case Against New York’s Jawboning

In truth, New York regulators’ threats to insurance companies and banks that do business with the NRA and other gun groups were so overt that even commenters hostile to the NRA and self-defense rights concede that state officials went way over the line.

“Every now and then, the Supreme Court takes up a case involving a public official who acted so foolishly…that you wish the justices could each take turns smacking them upside the head,” Vox’s Ian Millhiser, no fan of the NRA, conceded last November. “National Rifle Association v. Vullo, which the Court announced that it would hear last Friday, is such a case.”

And so far, while it’s uncertain which way the justices will jump in Murthy, the court seems inclined to agree that it’s impermissible for government officials to use regulatory threats to coerce financial firms into cutting ties with disfavored political organizations.

“The Supreme Court on Monday appeared sympathetic to the National Rifle Association’s claim that a New York official violated the group’s right to freedom of speech when she urged banks and insurance companies that worked with the NRA to cut ties with the group,” SCOTUSblog’s Amy Howe concluded. ACLU Legal Director David Cole “closed by telling the justices that ‘the notion that this is business as usual, for a government official to speak with a private party and say we’ll go easy on you if you aid my campaign to weaken the NRA. That is not business as usual. That is not ordinary plea negotiation.’ Although it was not entirely clear, a majority of the justices seemed to agree with him.”

With government reaching ever further into American life, it’s time the court reminds officials, once again, that their intrusive powers aren’t supposed to be used to bypass protections for individual rights.

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Jaguar Land Rover was not insured for cyber attack, journal claims

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Jaguar Land Rover was not insured for cyber attack, journal claims

Jaguar Land Rover (JLR) “failed to finalise” a cyber insurance deal before it was struck by hackers last month, forcing a halt to production and threatening the future of its supply chain, according to an industry journal.

The Insurer, citing three insurance sector sources, said Britain’s biggest carmaker was still in negotiations over cover before the cyber attack at the end of August.

It opens the prospect that the company faces footing the bill for the hacking by itself.

Losses will easily run into many hundreds of millions of pounds, with its global factory shutdown set to last for a month at least.

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JLR shutdown extended

Marks and Spencer, which was targeted back in April, said it expected that the estimated £300m bill it was facing from the disruption would be largely offset by the cyber insurance cover it had taken out.

As frantic efforts continue at JLR to recover its systems, the government is exploring ways to support JLR’s supply chain and the 200,000 jobs within it.

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One idea under consideration, according to ITV News, was taxpayer money being used to purchase parts.

These components could then be sold back to JLR as its manufacturing operations got back up to speed, resulting in no direct losses for the public purse.

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Inside factory affected by Jaguar Land Rover shutdown

The “just-in-time” nature of automotive production means that many suppliers had little choice but to shut down immediately after JLR announced its manufacturing freeze.

Industry sources estimate that around 25% of suppliers have already taken steps to pause production and lay off workers, many of them by “banking hours” they will have to work in future.

Union demands for a COVID-style furlough scheme have not been taken up by ministers, who have said that support to date has come only from JLR.

Industry minister Chris McDonald said on a visit to a West Midlands manufacturer on Tuesday he was “supremely confident” that JLR would get through the cyber attack.

He added: “What I really want this to be is a wake-up call to British industry. I’m affronted by this attack on British industry. This is a serious attack on a flagship of British industry.”

Jaguar Land Rover said it declined to comment on commercial matters.

The government has also been approached for comment.

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Politics

What does Andy Burnham want?

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What does Andy Burnham want?

👉Listen to Politics at Sam and Anne’s on your podcast app👈

Is Labour’s king of the north about to challenge the prime minister in Westminster?

After an explosive interview, the Mayor of Greater Manchester, Andy Burnham, says MPs are urging him to challenge Sir Keir Starmer.

Sam and Anne consider:

  • What vision Mr Burnham has for the country?

  • Can the PM match him and how could he respond?

  • How much will it impact political and policy narrative ahead of Labour’s party conference in Liverpool next week?

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Politics

Save the high street: Starmer’s plan to block fake barbers, betting and vape shops

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Save the high street: Starmer's plan to block fake barbers, betting and vape shops

Sir Keir Starmer is to announce a “Pride in Place” programme with funding for over 330 disadvantaged communities as part of a fightback against Reform UK.

The money will come alongside new powers for local groups to seize boarded-up shops, save derelict pubs and block gambling and vape stores on high streets, the government said.

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The plan aims to address the sense of isolation in deprived communities, which Labour insiders believe is feeding the rise of Reform UK.

A Labour source described the programme as “absolutely essential” and “transformative”.

They told Sky News: “Reform is trying to divide communities, Labour wants to empower them, and we are giving them the tools and resources to turn them around.”

The full list of places that will receive the cash boost, and how much they will get, will be confirmed by the prime minister on Thursday.

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The money is part of the communities funding plan announced by Chancellor Rachel Reeves in her June spending review, which promised new investment for 350 deprived areas across the UK “to improve parks, youth facilities, swimming pools and libraries”.

Labour insiders hope plan can fight off threat of Reform UK
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Labour insiders hope plan can fight off threat of Reform UK

The government said at the time these areas included the 75 places previously named in the Plan for Neighbourhoods, each of which will get £20m of funding over the next 10 years.

The Spending Review named another 20 “pilot neighbourhoods” in England to receive the same amount of funding, mainly in the north or the Midlands, as well as five other pilots across the rest of the UK.

Sir Keir is expected to announce the rest on Thursday.

Speaking ahead of that announcement, the new housing secretary, Steve Reed, said the money will allow local people to “decide how best to restore pride in their neighbourhoods, not us in Westminster”.

He added: “That’s what real patriotism looks like: building up our communities and choosing renewal over division.”

How will the funding work?

The funding will be allocated to neighbourhood boards made up of community leaders and stakeholders, who will work closely with local councils, it is understood.

They will be granted Community Right to Buy and Compulsory Purchase Powers, allowing them to buy assets like grassroots football clubs, seize derelict buildings and save local pubs, the government said.

Councils will also be given powers to block betting shops, vape stores and fake barbers.

The programme draws similarities with Tony Blair’s New Deal for Communities (NDC), a 10-year regeneration drive that targeted 39 of the most deprived neighbourhoods in England from 2001.

A simillar regeneration plan under Toby Blair was largely seen as successful
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A simillar regeneration plan under Toby Blair was largely seen as successful

An independent evaluation found NDC partnerships delivered improvements across several indicators, including crime, education and health. The biggest change was how people felt about their neighbourhoods as places to live.

Each area had around £50m of investment under the former Labour prime minister’s programme, but these were geographically bigger than the ones the government is now targeting, it is understood.

The “Pride in Place” Programme has been informed by the work of the Independent Commission on Neighbourhoods (ICON), launched in September last year to review the state of England’s neighbourhoods.

ICON identified 613 “mission critical” neighbourhoods – those they said needed the most urgent attention to make progress on Sir Keir’s “missions” for government.

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The bulk of these were in post-industrial areas in northern England, though high need was also identified in the West Midlands and coastal towns such as Blackpool and Clacton – the latter being the seat of Reform UK leader Nigel Farage.

Many of the sites to be announced are expected to contain a mission-critical neighbourhood within them.

Baroness Hilary Armstrong, a former Labour minister and chair of ICON, said: “If residents start to see positive, tangible changes in their neighbourhoods, this should start to restore the public’s faith in the power of government to do good.”

It comes at a critical time for Sir Keir, who has faced questions over whether he can survive after spending most of his first year in office languishing behind Reform UK in the polls.

Labour MPs have been lobbying for the funding for some time, expressing concern that Number 10’s mission to grow the economy with big infrastructure investments will not directly benefit people in areas that look and feel “left behind”.

Luke Akehurst, the Labour MP for North Durham, told Sky News: “This is what Labour governments are all about – properly funding the areas of the county that most need help.”

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