News digest 22 October 2010
The fightback against the cuts starts as
the government is accused of penalising the weakest and the worst
off, even more jobs may be on the line, and there’s pressures on
pensions. A callous closure from Coca-Cola is followed by cuts at
Nokia and a recall by Toyota. Boris racks up
fares again while some peers are suspended and there is an
admission that MPs are actually making things up…
Cuts challenged - The
Guardian (p11) reports on
Tony Woodley's tour as unions start the fightback in protest at the
cuts. Tony got a standing ovation from 400 Unite activists as he
tore into the government's plans.
Official: It’s not fair –
Most of the papers continue with coverage of the response to the
comprehensive spending review and in particular the Institute for
Fiscal Studies report which claims the cuts will hit the poorest
and most vulnerable strongest (Mirror p6, Times p8). Clegg accused the
think tank of ‘distorted nonsense’ as he and Cameron started their
tour of the country and were grilled by voters in Nottingham
(Sun p6). The Sun also reports that 58 per cent of
voters accept the idea of cuts, but that 56 per cent think it is a
desperate gamble, while the Express (p2) notes that the OECD
has backed the cuts, while the CBI thinks the cuts may be hard to
deliver (Mail p91), CBU
director Lambert also thinks the government needs a plan for
growth. It’s left to the Indie (p1) to highlight how
350,000 of the 500,000 job losses are expected to hit women, while
the Telegraph (p1) also
says families with children will bear the brunt of the cuts…
Even more job cuts coming? -
Worse news from the Chartered Institute of Personnel Directors
which calculates that 750,000 public sector workers could lose
their jobs if you add in NHS and local government workers to the
ones from Whitehall, and - in response to Clegg - 75 per cent of
local government workers are women (Telegraph p12).
Taxpayers to back BT pension
fund – Many papers cover the high court ruling that says
taxpayer will have to cover the telecom company’s pension shortfall
of £9 billion if the company folds (Express p69, Mail p88).
Britvic pension scheme closes
– Company plans to close its current final salary pension
scheme to existing members which will affect 800 staff, the scheme
has an £85 million deficit (Times p68).
Coke closes Malvern Water bottling
plant – Coca-Cola sneaks out rush closure announcement of
plant, 17 workers will lose their jobs on November 3, the Mail (p26) highlights Unite’s
description of the announcement as ‘disgraceful’. No argument from
me there…
No Cadbury law – Takeover
Panel report to make buy outs harder, but Unite’s Jennie Formby
said: "The Takeover Panel is right to call for the
rules around how companies conduct themselves during takeovers to
be tightened, but it has missed an important opportunity to protect
British business and jobs.” (Guardian p31). The Indie (p44) notes the
recommendations have no public interest test, and do not increase
the amount of shares needed for hostile approaches. So business as
usual then…
High street dips – Sales fall
by 0.2 per cent as the fear of cuts hits confidence (Mirror p68).
Crime down for now – Although
good news in that crime falls with 4.2 million offences recorded
last year. Although fears of lower police numbers may see the
figures reverse in future (Guardian p16).
Bank levy to hit savers –
Government plans for a paltry 0.04 per levy on banks from 2013
could see savers face reduced interest on their saving accounts
(Express p5).
AIA floats –
Insurer valued at $30.5 billion ahead of stock market listing
(Times p55).
Nokia cuts on the way –
Company plans to restructure smartphone business and cut 1,800 jobs
even though it made £469 million in profits (FT p17).
TUI finance chief
goes – Travel company’s finance head Paul Bowell resigns
over £117 million computer error (Times p61).
Airline fine – Brussels hints
that it will levy a fine on unnamed European carriers over a price
fixing cartel, announcement expected on 9 November (Mail p91).
Inchcape axes 500 – Car
dealership to cut 500 jobs to save £25 million (Mail p89).
Car production rises –
Although rate of increase has slowed as sector sees 5.8 per cent
rise in contrast to September 2009 (Telegraph b5).
Lexus recall – But Toyota
announces it will recall 1.5 million cars, although majority in the
US, in the UK 15,400 models will be recalled over brake and engine
failures (Times
p61).
London fares up again –
London mayor Boris Johnson sneaked out an increase in the
congestion charge to £10 plus increases of up to 70 per cent on
some travelcards, a bus ticket will cost 10p more, average rises to
bus and tube fares next year expected to be 6.8 per cent as
commuters are battered again (Times p31).
Suspended and invented – And
talking of politicians that get into trouble, the Times (p3) is one of the many
papers that report on the suspension of three peers Baroness Uddon,
Lord Paul and Lord Bhattia. All three wrongly claimed nearly
£200,000 between them for home allowances. And another that has
made wrong claims is Tory MP for Mid Bedfordshire, Nadine Dorries,
who admitted during a sleaze inquiry that her blog which was
supposed to show how hard she worked in her constituency was
actually 70 per cent fiction (Mail p30, Express).
Edited by Mik Sabiers
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