News digest 15 August 2011
It’s a mixed start to the week as
politicians and the police trade blows over the riots, while courts
are full to bursting. More jobs woe is on the way, and fares look
to rise. There’s an alarm bell for manufacturing, the north remains
key to the UK’s revival, although the government looks like it will
stick to its cuts, the market mayhem in Europe lessens, but back in
Westminster expenses rear their head and Gordon gets
bashed…
Courts open round the clock –
Many of the papers continue to focus on the aftermath of the riots
and the police raids over the weekend. So far 2,502 people have
been arrested and 1,214 have been charged and the government is
drawing up plans to remove benefits – and social housing – from
those convicted of taking part in the riots. As well as the arrests
the police have hit back at the government after calls for zero
tolerance policing and politicians trying to claim credit for
sorting out the crisis because they came back from holiday, some
say the government is crossing the line of operational
independence, especially as Cameron is looking at appointing a US
supercop as head of the Met. Cameron also looks to be wanting to
use the events to announce a fightback as he goes back to his
‘broken society’ mantra and plans to ask all cabinet ministers to
look into what their departments can do to turn things around, the
agenda is getting ever more right wing as the Tories return to
their political heartland blaming absent fathers, schools without
discipline and health and safety and business regulation. Labour
hits back blaming bankers and MPs for failing to set a better
example for society (Mirror
p1/6-11, Sun p1/4-6,
Express p4-7, Mail p1/4-9, Times p3-5, Indie p1/5-9, Guardian p1/4-7, Telegraph p1/4-5, FT p1/2, Morning Star p1/3).
Unemployment set to rise –
After falling for four months in a row Britain’s jobless total can
be expected to rise as the economic climate worsens. A KPMG/CIPD
report says a run of bad news has spooked employers into shelving
planned recruitment and the net employment index has once again
slipped into negative territory. And in bad news for those that
still have a job the report also expects the average pay rise in
the next year to be just 1.2 per cent even though inflation is
running at four times that level (Mirror p4, Sun p2, Express p25, Mail p2, Times p1/12, Indie p32, Telegraph b1).
Avoiding uni and ageing
apprentices – The Telegraph (p1) says bright
teenagers are shunning university and are now applying directly to
companies after leaving school or college as fears of student rise.
The Guardian (p10) reports
some good news for the coalition on apprentices which have seen a
dramatic increase. In the 2010/11 financial year the government’s
target of creating 203,200 new apprenticeships was exceeded with
the actual creation of 257,000 new positions. However concerns that
this will help lower youth unemployment have been hindered by the
fact that 121,000 of the new apprenticeships were for people aged
over 25, teenage apprentices rose by just 10 per cent to 102,900.
The main rise has been health, social care and retail and ominously
there has been a big rise in short term apprenticeships.
More fares please – The
campaign for Better Transport’s Fair Fares Now campaign kicks off
this week with the publication of a report that says rail
travellers will face an eight per cent rise in fares, a formal
announcement of the level of the rise is expected this week as the
inflation figure to which most rises are pegged – in the RPI plus
xx per cent formula – is released tomorrow. An RMT report said
fares would be 10 per cent cheaper without the failed privatisation
and a couple of papers also report on plans floated by the European
Commission to abolish rail subsidies across Europe making
passengers pay the full cost of the journey, in places that could
add another 50 per cent to the cost of a journey (Mirror p12, Express p8, Mail p10, Guardian p9, Telegraph p10, FT p2, Morning Star p4).
More parts please – From rail
to road and the Times
(p40) reports that although sales of new cars have been hit by the
recession, the market for car parts has jumped, the country’s
leading aftermarket supplier - Euro Car Parts - reported a 30 per
cent jump in sales in the past year
Room for expansion at Bentley
– The FT (p16) reports the luxury
car maker is to ask its German owners Volkswagen for approval for
an expansion into the high-end SUV market, although the company
reported an operating loss of €17 million for the first half of the
year, this is down from €109 million previously. VW is looking to
add new products across all its marques as it aims to become the
world’s biggest carmaker.
Biscuits firm to break up? –
One of the world’s largest food companies could be split in two.
According to the Express
(p44) the owners of United Biscuits are considering splitting its
biscuit operations from its crisps and nuts businesses ahead of a
possible sale.
Manufacturing alarm bell –
The Telegraph (b1) says
the latest BDO report on UK manufacturing, due to be published
today, will show that the sector is suffering an ‘alarming’ decline
as business confidence has dropped and expectations are for growth
to remain flat over the next six months, the FT (p13) says US industrial companies are
also preparing for the possibility of a double dip.
North key to economic revival
– The Times (p1) leads
with an OECD report that says the UK’s recovery is reliant on
driving growth across the north of England, the report argues that
supporting those regions should not be seen as ‘social’ policy, but
as a boost to the whole economy; makes a mockery of the
government’s Bombardier decision. Paul Hackett of the Smith
Institute is calling for a ‘Council of the North’ to be established
that can speak up for the region.
Rock going east? – The
Express (p44) reports a bid
for nationalised Northern Rock by private equity firm JC Flowers is
believed to be backed by Chinese government investment fund
CIC.
Delayed reform – The Indie (p31) and FT (p3) report on the latest news on the
Vickers report into banking reform. Vickers is expected to defy the
big banks and impose tougher than expected ring fencing, a line
favoured by business secretary Vince Cable. Chancellor George
Osborne is looking to delay implementation with speculation that
banks may be given up to eight years to implement the new rules,
who knows the economy may have recovered by then. The FT (p7) also says the west’s financial
sector is in for major structural change, particularly as a result
of the loss of tens of thousands of jobs, and that more will
come…
Stick to your plans – The
Times (p31) reports on
comments from World Bank chief Robert Zoellick who said Britain
should stick to its cuts and not have a rethink over cuts in the
wake of the last week’s riots, although the Express (p1) says it expects to see
a cut in the UK’s interest rates, although that is not backed up by
any concrete evidence.
Cut top tax rates – The
Mail (p16), Indie (p22) and Guardian (p10) all report on
Osborne’s attempts to talk down the actual tax take from the 50p
rate as a means for abolishing the level, Lib Dems have suggested
that they would be happy to see it go, but have raised their
mansion tax plans once again.
Bonuses flowing like water –
Row at British Waterways after directors at the company were on
course to receive bonuses of to £15,000. Unite national officer
Julia Long said “The announcement that British
Waterways is to award directors bonuses worth more than the annual
salary of some of our members shows nothing but contempt for the
workforce.” (Morning Star p5, Unite
release)
MoD fire sale – Facing a $38
billion funding gap the Ministry of Defence shows a vast range of
surplus stock which is up for sale ranging from combat trousers to
helicopters and that whole aircraft carrier. No mention of saving
money by fighting less wars abroad (Mirror p19, Express p22, Guardian p10, Telegraph p3).
Euro market mayhem dissipates
– Still abroad and the euro crisis is continuing although markets
are more settled at the start of the week as European shares
consolidate gains made on Friday ahead of a key meeting between
French and German leaders on Tuesday. Merkel and Sarkozy are
expected to rule out eurobonds as a solution, but will look to
greater fiscal and economic co-operation (Express p44, Mail p2/54, Indie p31, Guardian p2, Telegraph p1/b1, FT p1).
No remorse form Norwegian
Breivik – The man that killed 69 people at a youth camp
returned to the island yesterday as part of the investigation into
the massacre (Mirror p1,
Sun p1, Express p11, Mail p19, Times p7, Indie p3, Guardian p18, Telegraph p1).
Attack in Jersey – And many
of the papers report on the deaths of six people – including three
young children - after a knifeman ran amok on the Channel Island of
Jersey. A 30 year old man has been arrested (Mirror p1, Sun p1, Express p11, Mail p19, Times p7, Indie p2, Guardian p1, Telegraph p1).
Men in Tights taken to task –
While the Morning
Star (p2) celebrates pride in Brighton, and for the first time
in Prague (p7), back in Westminster it seems the parliamentary
authorities are getting too used to calling for order, or orders
after House of Commons staff racked up a £1.5 million bill on
expenses. Spending by the parliamentary authorities – known as men
in tights for their antique uniform of breeches and buckled shoes -
was questioned after a freedom of information request saw £95 spent
on new shoes for the speaker, £885 on a food blender and even £3.02
at Burger King, are MPs trying to get their own back on staff?
(Mirror p18, Sun p2, Mail p26, Telegraph p10)
Britain’s worst
MP? – And finally always one to kick someone when their
down as the Sun (p2) and
Mail (p16) say former
prime minister Gordon Brown has topped the league table of MPs that
supposedly provide the least value for money as he has voted just
33 times in the house and is rarely seen in the house.
Interestingly ex foreign secretary David Miliband came third in the
Taxpayers Alliance analysis, while the worst Tory was Sir Peter
Tapsell who came fourth. Tory Philip Hollobone was deemed the best
value for money, having voted 231 times, not because he is trying
to climb the slippery ministerial ladder, but because he is one of
the most rebellious Tory MPs.
Edited by Mik
Sabiers
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