News digest 10 September 2010

The cuts at BAE show how hollow the Con-Dem government’s hopes are for jobs growth in the private sector as Woodley calls for an alternative economic agenda. There are more benefit cuts planned and gloom in housing could herald more homelessness, the Royal Mail may be put up for sale, the hacking scandal leads to a new inquiry, Miliband major is in a mood and there’s odds on irate union leaders, all this and more in today’s round up…


Tip of the cuts iceberg – All the papers follow up on the announcement of 1,000 job cuts at BAE Systems. A total of 3,700 jobs have been lost at the company in the past 18 months and despite the government arguing that the private sector will step in to create jobs the evidence is that the cuts agenda is leading to more job losses (Sun p12, Mirror p6, Express p2, Mail p86, Times p49, Indie p50, Telegraph b2, Guardian p30, FT p18, Morning Star p2).

Time for an alternative economic agenda - Writing in the latest edition of Government Gazette, Unite joint general secretary Tony Woodley said: ”It is clear that the coalition government is hell-bent on pushing through hard line austerity measures that will throw thousands of people out of work, hamper long-term economic recovery and decimate public services.” Tony Woodley said that Unite will be at the forefront of developing an alternative economic strategy, based on sound Keynesian principles to drive economic activity and boost demand (Unite press release).

More benefit cuts – Con-Dem chancellor George Osborne has announced a further £4 billion of cuts in the government’s welfare budget taking the total to £15 billion. The Con-Dem coalition is looking to take away the so-called safety net of a ‘benefits lifestyle’ and instead look to ‘reward work’ although no mention of how to do that when there are fewer jobs out there (Sun p12, Mirror p6-7, Express p2, Mail p8, Times p12-13, Indie p16, Telegraph p2, Guardian p1, FT p1,Morning Star p2).

Housing gloom – And Standard & Poors says the UK is poised for a wave of repossessions as the cuts combined with tax rises bite (Indie p45). The Morning Star (p3) notes that Shelter expects a jump in homelessness after changes to housing benefit are phased in. And as it reports a return to profits house builder Redrow adds to the calls for more government support for homebuyers as people struggle to get mortgages (Express p67, Mail p87, Times p59, Telegraph b4). Connaught deal - There is however some better news for Connaught as the FT (p17) reports that construction group Morgan Sindall has bought the bulk of the social housing maintenance operations in a move that will secure a quarter of the firm’s 10,000 jobs (Times p58).

Chote comes in – As interest rates were held at 0.5 per cent for a record 18th month in a row, Osborne announces that the head of the Institute for Fiscal Studies – which criticised Osborne’s budget as not fair – will head up the Office of Budget Responsibility (Indie p19, Telegraph b1, Guardian p29, FT p2).

Academies need money – And the Mirror (p6) reports that one in four of current academy schools have needed extra cash to date, with no new funds available there are questions on performance. The Mail (p2) does report that Gove is also looking to reintroduce technical schools so pupils can choose to learn a trade although past experiments failed as the schools were viewed as separate from the mainstream school system and shunned by ‘elite’ interests. 12 University Technical Colleges are planned with the first opening in Aston.

Royal Mail sell off – And the Hooper report from the former deputy chairman of Ofcom sees the possible privatisation of the Royal Mail a step closer. The Mail (p8) says there is a potential cost of £400 for every household in Britain as the pension deficit would have to be shouldered by the taxpayer, while the Morning Star (p2) highlights that more rural post offices are facing closure due to staff shortages.

NHS Direct safe? – And after the outcry over the false economy of cutting NHS Direct the government seems to have backtracked, the number is still expected to change to 111, but it looks like the government will continue to employ health professionals to give advice helping the NHS save some £200 million by providing advice over the phone.

HMRC confusion continues – The FT (p4) reports that there are more problems for HM Revenue & Customs, this time it seems the computers are having trouble issuing proper demands over the 50p tax band.

Film Council meeting – and The FT (p4) also trails next week’s talks over how to deal with allocating public film funding once the Film Council is abolished in 2012, perhaps they need to set up some kind of body like  a Council for Film?

Equality challenge – And in yet anther dig at quangos the Sun (p2) follows up Tory MP Philip Davies attack on the Equality and Human Rights Commission claiming that the anti-discrimination watchdog has been rocked by 25 complaints from its own staff, only three were upheld.

UK Tea Party – And the Guardian (p4) reports that Tory front the Taxpayers Alliance met with the Tea Party to talk about cuts and rolling back the state. The Tea Party is looking to set up a UK arm to counteract the expected demonstrations from unions and other bodies in response to the Con-Dem cuts.

Justice minister’s judgement questioned – After millionaire MP Jonathon Djanogly hired private investigators to try and smoke out aides in his local party who questioned his skills, especially as the firm he hired came under scrutiny over links to criminal activities (Telegraph p1).

Coulson cracking and losing Clegg’s backing? – And talking of criminal investigations, the Coulson affair continues with all papers reporting on the MPs’ debate and a new Commons inquiry into the affair. The Sun (p2) quotes Tory MPs as saying it is just Labour mudslinging, but the more serious papers delve deeper into the affair as MPs use parliamentary privilege to name names. The Telegraph (p16) also notes that Clegg has gave the press chief a far from full backing when asked if he should go? Of course he should. ( Sun p2, Times p16, Indie p6, Telegraph p16, Guardian p6-7, FT p2)  

Exiting Afghanistan – The Sun (p22) asks the Labour leadership contenders their views on Afghanistan, Diane Abbott says take the troops out now, the two Ed’s say by 2014/15 while Burnham and Miliband are non-committal on dates.

Miliband major moans – And the Indie (p17) reports that David Miliband’s supporters are apparently angry at Unite for its support for Ed Miliband claiming the union ignored Labour party rules; the piece then goes on to say it didn’t. The Express (p15) does say David has already planned his victory party, although if the way things are going they say it may be more of a wake.

Londonmayoralty – As Boris announces he wants to stand again the Mirror (p24-25) has an interview with Labour’s Ken Livingstone on his ideas for London’s future and his take on BoJo, he thinks he’s lazy, how true.

Most irate union leader – And ahead of the TUC the FT’s diary column (p12) puts odds on the most irate union leader, Unite’s Woodley is at 14-1, but as usual Bob Crow will probably make the biggest stink (5-4).

O’Leary speaks – And the Indie (p27) has an interview with Ryanair chief Michael O’Leary, today’s bit of abuse is focused on denouncing global warming…

Tube trouble – Not a strike this time, but a tube train on the wrong tracks after a signal mix up, thanks to the driver a head on collision during Wednesday’s busy rush hour on the Hammersmith & City line was averted (Sun p29).

No fuel – Total announces plans to sell its 500 petrol stations as it is not making any money (Sun p52).

Morrison’s plans – One buyer could be the supermarket as many papers report on the supermarket’s plans for expansion with mini marts and online sales the key for future growth prospects (Sun p52, Mail p86, Indie p46, Telegraph b2, FT p19, Guardian p30).

Argos slips – High street retailer sees a £50 million drop in sales and expects profits to be down as buyers look elsewhere for cheaper goods (Mirror p64, Guardian p30, Times, p55, Telegraph b5, Express p66).

China trade challenge – With all the cheap goods from China the FT (p6) reports that Unite’s sister union the USW has called on the US administration to step up actions against China for unfair competition…

Edited by Mik Sabiers

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