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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