News digest 1 August 2011
The digest starts with some government
savings on one hand and then golden goodbyes on the other. There’s
a split over tax while people are told they should work in fear and
the CBI says it will be seven long years before the economy
recovers. There’s strike action at the BBC, AA likes BA and while
Ed and David bury the hatchet, the prime minister keeps hold of his
cash and the Met issues a warning of a new security
threat…
Efficiency cuts save £3.75
billion – Cabinet office minister Francis Maude says
government efficiency savings are more than £500 million over
target. Savings include £870 million less spent on consultants, a
£400 million cut in government advertising and a £300 million cut
in the civil service salaries bill, the latter achieved by cutting
the equivalent of 17,000 jobs, that may have lead to savings, but
will it lead to greater efficiency? (Sun p4, Express p22, Mail p2, Times p15, Indie p11, Guardian p2, Telegraph p4, FT p2)
Government golden handshakes hit £1
billion – The Telegraph (p1) and Express (p22) report civil servant
redundancies due to Con-Dem cuts have cost the taxpayer £1 billion
in the past year. The average payout is £40,000, four times that of
the private sector as the ‘bonfire of the quangos’ proves
prohibitively expensive.
50p split – Many of the
papers also say fresh in-fighting has broken out in the coalition,
this time over the 50p tax rate as chief secretary to the treasury
Danny Alexander shot down the latest Tory attempts to axe the 50p
rate (Mirror p6, Sun p2, Express p5, Mail p16, Times p15, Indie p10, Guardian p4, Telegraph p4).
Robbing the sick – A report
prepared for the parliamentary health select committee shows
deprived parts of England will lose out to wealthier regions under
changes to the NHS funding formula. Wealthy regions of the UK will
gain from the change in policy which previously targeted extra
funds at deprived areas or gave extra funds to places where disease
was higher than average (Mirror p6, Times p16, Guardian p12, Telegraph p8, FT p2, Morning Star p3).
Drinks lobby muscles in – And
the Indie (p2) reports
the alcohol industry has also tightened its grip on a key
government policy making committee that is responsible for reducing
the harm of excessive drinking.
Chopping charities – The
Mirror (p26) reports that
charities are facing huge funding crises as local councils are
forced to deliver central government cuts, Many councils have been
forced withdraw all funding or cut support in half and the paper
features seven key council cuts across the country.
Work in fear – The Mirror (p15) also reports on Tory
policy chief Oliver Letwin’s latest pronouncement that says public
staff need ‘fear and discipline’ to make them perform better. Same
old bullying bosses.
Challenging the cuts –
Preliminary agenda for TUC Congress in September has been published
with calls for industrial action over cuts and changes to public
sector pensions (Indie
p5, FT p2, Morning Star p1).
Pensions in crisis – As the
link between pensions and earnings is finally restored a study from
the Workplace Retirement Income Commission says millions could face
pensions’ poverty and 2.4 million people could be sleepwalking to a
retirement without any provision (Sun p2, Express p7, Times p36, Telegraph p1).
Seven lean years – The CBI
forecasts a ‘long, hard slog’ to economic recovery and as the
public spending squeeze tightens there is a ‘darkening mood’ even
among its own business members (Mail p2, Indie p31, Guardian p22, Telegraph b2).
HSBC to sack 10,000 – Many
papers trail today’s expected announcement from HSBC that will see
the bank axe thousands of jobs, many banks will report results this
week giving an indicator of economic trends (Mirror p4, Sun p2, Express p2, Mail p57, Times p36, Guardian p23, Telegraph b1/3, FT p13, Unite
release).
Trinity Mirror cuts again –
Newspaper group announces a further £25 million in cuts that could
lead to job losses (Mail
p57, Telegraph b3).
BBC on strike – Second day of
action for NUJ members over compulsory redundancies at the BBC
(Mirror p18, Express p15, Mail p21, Times p18, Guardian p12).
Coalition clipping UK’s wings
– The Telegraph (b8)
interviews Gatwick boss Stewart Wingate who argues the government
needs to address the lack of British airspace and in particular add
capacity to the south east.
BA on collision course? – The
Telegraph (b1) reports
British Airways is heading for a showdown with the Office of Fair
Trading after refusing to pay a £121.5 million fine for allegedly
fixing the price of fuel surcharges.
AA wants BA - The Times (p31) reports that
American Airlines has raised the prospect of a full merger with
British Airways as the airline’s president Tom Horton expects
restrictions on foreign ownership of US carriers will be
relaxed.
Shock in store for electric car
owners – From planes to cars and the Times (p14) highlights that
what was billed as the year of the electric car has seen just 680
vehicles sold in the first six months. The report goes on to
highlight concerns over the battery and how they can lose charge
over time.
Ed to battle over power – The
Mirror (p18) reports Labour
leader Ed Miliband is determined to stop greedy energy firms
overcharging customers, and some good news for Ed in a poll in the
Indie (p10) which shows
Labour’s lead remains at 40 per cent to the Tories 36 per cent,
with the Lib Dems on 13 per cent .
Deal for David – The Indie (p14) also says that Ed
has reconciled with his brother David. The older brother has agreed
to act a student ambassador to promote Labour policies in
universities and colleges.
No tips from David – The
other David that is, prime minister Cameron seems to be taking his
austerity drive to serious lengths when an Italian waitress became
his latest victim, he refused to leave a tip when paying for the
€3.10 coffee bill with a €50 note while on the other side of the
pond George Osborne is lazing in a £1,000 a night hotel in LA
(Mirror p4, Sun p2, Express p4, Mail p7, Indie p11, Telegraph p1).
Debt deal done, almost –
Relief could be coming to US and global markets as Barack Obama has
reached an agreement with Republican and Democratic congressional
leaders aimed at ending the US debt deadlock (Mirror p14, Express p4, Mail p8, Times p8-9, Indie p4-5, Guardian p1, Telegraph p1, FT p1, Morning Star p7).
Beware anarchists – And
finally just in case you had not realised that August is silly
season the Guardian (p1)
reports that the Metropolitan Police issued a counter-terrorism
notice which calls on anyone who discovers an anarchist in their
midst to report it immediately, yes really…
Edited by Mik
Sabiers
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