News digest 13 June 2011

The digest starts with the expected outcome of the Con-Dem coalition’s listening exercise on the NHS, before a set of government U-turns, strikes in Southampton, the threat of 15,000 more job cuts at Lloyds even while banks are hitting their targets. There’s good news for the Midlands, but bad news on farms and sibling rivalry comes back to haunt the Labour leader, will he juggle his priorities…

NHS Future Forum – At 2pm today the report into the NHS pause will be published by professor Steve Field. Unite’s Rachel Maskell said: It is time to scrap the bill and conduct a proper review of what is needed for the long- term needs of the NHS and our nation’s health, rather than rush through a biased, lop-sided listening exercise.” Many of the papers have deputy prime minister Nick Clegg claiming the credit for watering down the changes which are expected to see the deadline for new GP consortiums – which will also include hospital doctors and nurses - relaxed, and the health service regulator, Monitor, will promote patient interests not competition. Dr Ron Singer from Unite’s Medical Practitioners Union argues on Left Foot Forward that the proposed amendments may actually make the changes more toxic, so is Clegg being lined up as Cameron’s lightning conductor after Lansley walks the plank? (Mirror p6, Sun p2, Express p4, Mail p10, Times p9, Indie p12, Guardian p2, Telegraph p1, FT p2, Morning Star p1/9, Unite release)

Benefit backtrack – And another government U-turn is trailed as a sop to the Lib Dems as Tory ministers backtrack on the pledge to cap state benefits to a maximum of £26,000 a year. The original pledge followed lots of extreme examples of large workless families living on benefits featuring in the right wing tabloids (Express p2, Mail p1, Guardian p9, Telegraph p1, FT p1).

Bins backtrack – The Mirror (p8), Mail (p4) and Telegraph (p1) also all report on another U-turn on the return of weekly council bin collections as communities secretary Eric Pickles came under pressure from a host of Tory councils to scrap the pledge as cuts hit council finances…

Strikers on the streets – And action continues in Southampton where there will be a mass rally through the town today against the council’s forced changes to pay, terms and conditions. Action is also spreading as Unite members at Lincolnshire council start action short of strike today joining Unison members who are already on work to rule to save their jobs (Morning Star p3 Unite release).

MoD police cut back – And with up to a 1,000 jobs at risk the Times (p4) reports that the Defence Police Federation’s chair, Eamon Keating, will tell the organisation’s conference that the cuts are irresponsible.

15,000 more Lloyds jobs to go? – And talking of cuts, many of the papers report on a strategic review by Lloyds Banking group boss Antonio Horta-Osario who is looking to make a further £1 billion in savings. The taxpayer backed bank could see another 15,000 job cuts on top of the 27,000 that have already gone, the review is due to be announced on 30 June, the day when many public sector workers will be demonstrating to defend their jobs (Sun p12, Express p7/36, Mail p53, Indie p31p, Telegraph b1).

Lending targets hit – But it looks like the banks will avoid any sanction from the business secretary as the FT (p1) reports that business minister Mark Frisk disclosed that the actual lending targets are about 10 per cent below the official £19 billion a quarter one published in the Project Merlin accord, meaning last quarter’s lending of £16.8 billion to small and medium sized enterprises hits the target (and bonuses can be paid).

Bad banks – And in more banking news the Express (p1) and Mail (p12) say that payments to customers that were wrongly sold payment protection insurance could come within weeks while the Mirror (p6) warns consumers about listening to your bank saying Barclays was fined £7.7 million over bad advice…

Barclays finalises split – And the Telegraph (b1) also reports that Barclays is at an advanced stage of planning so that it will be able to quickly split off its retail business to ring fence depositors’ money if – as likely – the Independent Commission on Banking orders such a move.

IMF hack attack – And as French finance minister Christine Lagarde builds her campaign to lead the IMF, the bank reports it was under sustained attack from hackers over the weekend (Mirror p2, Times p31, Indie p23).

Hold interest rates – And the UK’s central bank is expected to leave interest rates on hold this week as a number of papers report that even with rising inflation – British Gas is expected to announce a hike in prices soon - workers are not seeing wage rises as the jobs market worsens (Sun p12, Express p36, Mail p2, Times p11, Indie p32, Telegraph p11).

Midlands moves ahead – Better economic news for the East Midlands which has replaced the South East as the fastest growing English region according to the Lloyds TSB regional PMI, although output growth slowed in eight of the nine regions (Sun p2, Times p31, Telegraph b2).

In fear of farms – From manufacturing to farming and the Guardian (p4) reports that agriculture has the poorest safety record of any industry, 750 people have died on farms in the last 16 years and there remains gross under-reporting of non fatal injuries, the main cause of accidents include farm transport, falls from height and dangerous machinery.

In fear of fraternity – And finally most of the papers report on the return of sibling rivalry to the Labour party as criticism of Ed Miliband’s leadership coalesces around David Miliband. Many of the papers speculate on Ed Miliband having to take a harder line, today he makes an announcement on council housing saying that Labour wants to become that party that ‘rewards contribution, not worklessness.’ After Blair’s book last week a new biography says that David and Ed are still barely on speaking terms after the fallout of the leadership contest, although the best quote about David’s ambitions is actually from Diane Abbott who says: “It’s like people forget the photo of David Miliband with a banana.” Nevertheless is some machinating going on in the background, the other Ed (Balls) has a big spread in the Mirror (p10) about the coalition’s threat to the economy and the need for a ‘plan B’. Does he mean the economy or himself? (Mirror p8-9, Sun p1, Express p2, Mail p7, Times p3, Indie p6, Guardian p1, Telegraph p1, FT p2, Morning Star p3)

Edited by Mik Sabiers

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