News digest 14 February 2011

A constructive and packed conference for youth services starts the day’s digest before banks come back into view. Then more cuts are outlined, pay is being squeezed, benefits attacked and private companies given a free hand to NHS services. Elsewhere tanker drivers are queuing up for croissants, Bentley’s bringing in a fuel efficient luxury car, there’s a new Boeing 747 and another ballot at BA...

Saving Youth Services – As Cameron tries to reclaim the Big Society agenda – and shift it away from being associated with cuts – over a thousand people attended the Unite rally for youth services in Solihull on Saturday. The Mirror (p6) and Morning Star (p2) both feature a picture from the rally and national officer Doug Nicholls - asked about whether the government will listen - said: “It is going to have to. It cannot abandon the nation’s future. The government will pay the price politically and economically if it does.” Other papers look at Cameron’s relaunch of his flagship policy with a “big society bank” with funding of £100 million from dormant bank accounts and a couple of new ambassadors, not sure that will make up for all the cuts (Sun p2, Express p2, Mail p2, Times p16, Guardian p8, watch the Choose Youth rally online).

Bank subsidies – The agenda moves from bankers’ bonuses to subsidies as a number of papers highlight research from the New Economic Foundation think tank which says banks are gaining £60 billion in extra support thanks to the ‘too big to fail’ government guarantee as well as being conduits for quantitative easing. On top of that many papers also note that this is the week that bank’s start to report earnings, so bonuses will be back up the agenda, Barclays will be first to declare tomorrow (Mirror p4, Sun p, Express p5, Times p16, Indie p2, Guardian p21, Telegraph b1, FT p2, Morning Star p4).

Rock buy back? – And state owned Northern Rock is looking at ways to return to private ownership by potential buying back parts of the ‘bad bank’ that was created to park its toxic debts (Express p44). 

George on the run – Chancellor Osborne off to Brussels avoid meeting his shadow Ed Balls in a Commons debate on the introduction of the Office of Budget Responsibility (Mirror p4).

Defence cuts outlined – Away from banks and many papers focus on the Strategic Defence Review which will outline military cuts in more detail. 100 trainee pilots are going to be scrapped before they’ve got their wings and equipment worth some £12 billion is expected to be scrapped (Sun p19, Express p2, Mail p12, Times p1, Guardian p9, Telegraph p1).

Public sector cuts accelerate – A sharp increase in redundancies is expected as the spending cuts start to bite according to the CIPD, with cuts in local government unlikely to be offset by a small rise in hiring in the manufacturing sector. The Morning Star (p1) leads with the cuts at Birmingham, conversely the Sun (p22) does try to argue the government’s case accusing Manchester of wasting money as it starts a week on ‘Town Hall madness’ but it’s weak and one sided as expected… (Mirror p31, Telegraph p4, FT p4)

Council chiefs challenged – And quite a few papers report on council chief executives quoting figures that show half earn more than the prime minister, although they make no mention of the private house and chauffer driven car Cameron also gets which is expected to make his pay package worth more like £600,000 than his declared pay of £142,500. Nevertheless 122 of the 129 highest paid earners ignored the call for them to take a 10 per cent pay cut, then again it did come from Eric Pickles… (Mirror p32, Sun p2, Express p5, Mail p4, Times p8, Telegraph p1).

Wage squeeze – And as inflation continues to rise, the Times (p7) reports that price rises have now overtaken wage rises for ordinary workers, so it is time for us all to tighten our belts although I’m not sure if I have any notches left on mine; latest inflation figures will be released tomorrow (Mirror p25, Mail p63, Telegraph p2).

End crisis loans – And in a nice touch the Express (p1) says that crisis loans should be ended arguing people are using them for luxuries, the average loan – not gift – is £100 and has to be paid back.

Illegal benefits – And it looks like the government is trying to shift the agenda from its cuts to blaming benefit claimants again as the Mail (p1) and Telegraph (p2) both focus on illegal workers claiming benefits due to a loophole in the law. It will be closed.

£3.7 billion booze bill – And from benefits to health where hospital admissions caused by booze are rocketing, a report by Alcohol Concern says the government should hire more ‘alcohol health workers’ to help problem drinkers and offer long term savings, something this short termist government is bound to ignore (Sun p26, Indie p17, Guardian p7, Telegraph p11).

Private NHS – And in another twist to the hospital reforms private companies will be able to use NHS resources like operating theatres and scanners rather than establish their own facilities, even if that makes NHS patients have to wait longer, how nice (Mirror p28).

DIY litigation – And with the axing of support for legal services the Times (p7) says that courts could face gridlock as people have to defend themselves due to cuts to legal aid.

Union pair victimised – And getting legal backing from their union PCS is to ballot home office workers after two reps were sacked for putting together a satirical letter, a work to rule can be excepted to impact the immigration service (Mirror p26).

French fuel – And talking of borders tanker drivers are crossing the channel to fill up their tanks in France as the cost of fuel combined with the government’s fuel duty drives petrol prices ever higher (Times p35).

National Stagecoach? – On the buses and investor Elliott Management is pushing for tie-up between National Express (it owns 16 per cent) and its rival Stagecoach (Guardian p22).

Diesel Bentley – Luxury carmaker adds new fuel efficient model to its range, efficiency could double to a whopping 30 miles per gallon (Telegraph p7).

More efficient easyJet – And the Indie (p37) highlights a new lacquer to be applied to easyJet planes which could save the carrier millions by cutting jet fuel usage by up to two per cent.

New 747 – And Boeing unveils its latest version of the 747 which will be able to carry more people and fly more efficiently, although so far it only has 33 orders (Times p37).

New ballot – And according to the Guardian (p8) the Brutish Airways dispute continues with a possible new approach, unfortunately it’s not management finally seeing the light…

Edited by Mik Sabiers

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