Former Chancellor's memoirs claim economic rift with PM stripped Labour Party of its credibility. Nigel Morris reports

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Tom Watson: 'It has seemed like surfing a giant wave for two weeks'

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Matthew Norman: Don't pity Gordon – he supped from the devil's hands

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Unshakeable loyalty being the rarity it is, thank God for Kelvin MacKenzie. Kelvin marks his defection from The Sun to the Daily Mail with a paean to the boss he has forsaken, in an article headlined "Thank God for Murdoch" (and who knew he saw any distinction between the two deities?). Kelvin is overjoyed at Jeremy *unt's shock decision to permit Rupert full ownership of BSkyB, the Hulture Secretary wisely trusting his guarantees about the editorial independence of Sky News.

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Diary: 'Hurly' Burley's racy ladies

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Diary: A new phase opens in Labour's civil war

Neatly timed for the publication of the 127th book about the first instalment (Jonathan Powell's), the Labour Civil War Mark II began at the weekend. Leading the neo-Blairite cavaliers was Peter Hyman, the Mr Tony adviser turned inner-city Mr Chips and Newsnight sage, who deflected any suspicions about his friend David Miliband's sense of entitlement by accusing Little Ed of "stealing his brother's crown". Ed's victory was a "catastrophe" for Labour, says Peter.

How 'the election that never was' turned political allies into bitter rivals

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