News digest 16 May 2011
It’s a gloomy start to the week as latest
research shows the divide between rich and poor is getting ever
bigger, and will only worsen, retail sales look set for a decade of
doom while job vacancies vanish, despite what Cameron says there
will be no NHS U-turn, there’s trouble over energy policy, more
military cuts, a boost for Dover port and possibly a banking bonus
for ordinary people, before trouble that could end the careers of
DSK and Huhne and a very empty rally for the cuts…
Back to the Victorian age –
Pay gap between high earning elite and ordinary workers is widening
as new research shows the best paid 0.1 per cent in the country
pocket £1 in very £20 earned. A second report from the high pay
commission has shown that wage disparities will accelerate so that
the top 0.1 per cent of earners will see their pay rise from five
per cent of national income to 14 per cent by 2030. Unite general
secretary Len McCluskey said: “This report is the
latest evidence that the coalition’s proud boast that ‘we are all
in this together’ is a callous deceit, compounded by the fact that
inflation is rocketing and living standards for average families
are in a nose dive … ministers need to enact legislation to curb
this conveyor belt of greed amongst the City elite.”
(Mirror p2, Sun p2, Express p19, Mail p23, Guardian p25, FT p1/3, Morning Star p2, Unite
release)
Retail fails – More misery as
high street retailers are facing a decade of gloom as consumers are
squeezed by tax rises and pay freezes according to the latest
analysis from the Item Club, shops outside London are expected to
be hardest hit (Express
p44, Mail p2, Indie p31, Guardian p23, Telegraph b1, FT p2).
Vacancies vanish – The hunt
for jobs has got harder as dozens of small and medium sized
companies have closed and public sector cuts start to take their
toll. The number of people competing for a job has quadrupled with
six claimants for every vacancy. West Dunbartonshire is worst hit
with 40 claimants per vacancy, and the closure of the Johnnie
Walker plant has hit the region hard (Times p36, Guardian p26).
Paternity push – And if
anyone still has a job and can afford a family the government has
announced that they may be able to take some more time off to look
after their children, the British Chambers of Commerce has opposed
the measure saying more changes to employment law were
“absurd” saying the government previously
said it would streamline regulations for business, how nice
(Mirror p19, Sun p19, Express p2, Mail p12, Times p11, Guardian p6, Telegraph p1, FT p4).
No NHS u-turn – As Steve
Field, the doctor leading the review into the government’s NHS
changes calls them unworkable with the danger that they could
“destroy essential services”, prime minister David
Cameron is due to give a speech on health today where he will
outline the government’s listening exercise related to the NHS
changes, he will say that the NHS must be reformed, and says it
will be safe it just needs modernisation; code for bringing in the
private sector. Not much of a listening exercise then (Mirror p6, Sun p2, Express p2, Mail p2, Times p11, Indie p14, Guardian p3, Telegraph p1, Morning Star p2).
Pension pressures – And the
Express (p4) says Britain
is facing a £9 trillion funding shortfall as the number of young
workers is falling, but the number of people living longer rises.
The Indie (p32) also
reports on changes to the Pension Protection Fund – the lifeboat
that pays out to pension scheme members if their company goes bust
– which will see the levy formula set for three years as well as a
wider level of company risk ratings.
Police peeved – The Guardian (p6) reports the Police
Federation accuses the Con-Dem coalition of a ‘campaign of
denigration’ against officers arguing the government’s reforms and
cuts to policing were driven by ideology and would endanger public
safety.
Teacher trouble – More bad
news for the government as the Mail (p6) reports the number of
failed teachers has doubled to 17,600 in the past year, although in
part this may be due to changes to the way Ofsted runs its
inspections or just another example of Gove’s anti-Midas touch?
Nuclear fall out – And the
government is accused of disarray over its energy policy as energy
select committee is expected to lambast Huhne’s Electricity Market
Reform for hiding subsidies for nuclear energy although Huhne may
be for the chop over other issues (Times p31, Indie p2, Telegraph b5, FT p2, Morning Star p4).
More military cuts – The
Times (p1/14) reports
that the Ministry of Defence is conducting a secret cost review to
try and find billions more savings, quoting a military officer the
plan is summed up as: “It is going to be chop, chop,
chop…”
Lend us a plane – The
Sun (p11) reports that the
UK military has been forced to ask the US to borrow a spy plane to
protect its ships off the coast of Libya.
Military covenant given go
ahead – But Cameron finally gives in to pressure and
agrees to formalise the military covenant – and find £45 million -
which means the government will ensure affordable housing, access
to education and healthcare for military personnel that put their
lives on the line (Mail
p8, Guardian p11).
No merger with Dassault – The
Telegraph (b5) interviews
BAE Systems chief executive Ian King who scotches any talk of a
merger with its French rival and tries to highlight its focus on
ethics after a difficult few years as well as its aim to build
bridges with the government after the cancellation of key military
projects.
Boost for Dover Port campaign
– From defence to Dover and the FT
(p4) reports that the government is expected to reopen the
consultation on the privatisation of ports which could enable Dover
to become a “people’s port” rather than simply be sold to a private
investor.
Offer raised – And a boost
for engine maker Tognum as the Express (p44) reports Rolls-Royce
and Daimler have upped their takeover bid for the German company by
8.3 per cent to €3.4 billion.
RBS boss in for the long haul
– The FT (p17) says the chief
executive of the Royal Bank of Scotland, Stephen Hester, has
indicated he wants to stay at the helm for the long term,
indicating he plans to stay for eight more years rather than the
eighteen months that had been rumoured in the City…
RBS up for sale – And the
Express (p44) reports there
were also rumours in the City that the government could be looking
to offload as much as £5 billion in RBS shares as early as next
year, or about 13 per cent of the government’s stake while the
Sun (p11) reports on the
campaign by the Centre for Policy Studies to give shares in the
bailed out banks back to taxpayers.
IMF intrigue – And some
trouble for banker Dominique Strauss-Kahn, the head of the IMF, who
was yesterday arrested over sex charges in New York. His
presidential ambitions may now be in question as the case is
unlikely to come to completion before he would have to declare his
candidacy (Mirror p1,
Sun p27, Express p5, Mail p5, Times p1, Indie p6, Guardian p10, Telegraph p1, FT p2, Morning Star p6).
Taxi for Chris Huhne? – And
most of the papers also report on energy secretary Chris Huhne who
is facing allegations that he tried to dodge a ban for a speeding
offence, odds on his exit are shortening (Mirror p6, Sun p2, Express p7, Mail p1, Times p3, Indie p2, Guardian p10, Telegraph p1, FT p2, Morning Star p5).
Up for the cuts – And finally
the Morning Star
(p5) reports on the rally for the cuts over the weekend, a grand
total of 350 people turned up to listen to why the government’s
plans are supposedly good for the country…
Edited by Mik Sabiers
Subscribe to this post's comments using
RSS
Comments
