News digest 23 May 2011

It’s a bit of a mixed start to the week with strikes at Southampton, the possibility of more scrutiny for the NHS bill and the fourth Big Society relaunch by the prime minister as the middle gets squeezed, banks aren’t lending and another volcano has exploded. Huhne is still being hounded and the name of that mystery footballer is almost revealed, but not in this digest… 

Southampton sacking strategy sees strikes  - Southampton city council - which is sacking thousands of workers and re-engaging them on substantially lower terms and conditions – is facing coordinated strike action from today as Unite and Unison members call on the council to think again. Mark Wood, Unite convenor at Southampton city council said: “This action along with the possibility of more planned strikes throughout the summer months will cause major disruption, but it does not have to be this way. Unite and Unison have offered talks using the conciliation service Acas, but rather than engaging in dialogue with the unions the council has been posturing in the local press.” (Morning Star p5, Unite release)

Striking a deal – And the Telegraph (b4) follows up on Unite’s accord with PCS last week looking at the likelihood of strike action this summer, the piece notes that the number of working days lost to strike action has dropped from 714,000 to just 145,000 over the past two years.

More NHS scrutiny needed? – And if the proposed changes to the health and social care bill are real then the FT (p4) says the bill will need to go back to committee stage which could delay its passage through parliament.

Weaker schools squeezed? – The Guardian (p1) reports that education secretary Michael Gove is planning to publish a revised school admissions code this summer which will allow good schools to expand leaving weaker schools squeezed as funding is determined by pupil numbers.

Big relaunch? – Prime minister Cameron will try to relaunch his Big Society idea for the fourth time today although most are none the wiser as to exactly what it is, even cabinet office minister Francis Maude admitted “we’ll carry on explaining it as best as we can” while the main thrust today will be that all cabinet members will have to devote one day a year to voluntary work as the government tries to kick start a new wave of public donation and volunteering, not sure they realise how badly people are being squeezed… (Mail p12, Times p5, Indie p9, Guardian p8, Telegraph p4, FT p2).

Squeezed middle to suffer for years – The Express (p7) reports that millions of low and middle income earners face years of falling living standards according to a new report by the Resolution Foundation, the full report will be published on Friday while the Indie (p31) reports on research from Markit which reports that a third of homes have seen their financial position worsen in the past month, while just seven per cent reported an improvement. Another report from Capital Economics also said that last month’s 1.1 per cent rise in retail sales was boosted by the royal wedding and good weather and was unlikely to last…

Crippling cost of care – Is the headline on the front page of the Telegraph which says Britain faces one of largest bills for elderly care out of the leading industrialised countries as a low birth rate and greater longevity combine to leave working adults face a triple blow of higher taxes, longer working lives and less inherited wealth. The bill for care, pensions and health services is expected to jump from 16.5 per cent of GDP currently to 21.6 per cent by 2050 according to figures from the OECD.

Pension bribes – The Express (p20) also reports that some firms are resorting to offering ‘cash bribes’ to employees to transfer out of final salary pension schemes to less generous ones, pensions’ minister Steve Webb is to hold a meeting with key figures in the industry later today.

Nuclear fall out – The Times p31 reports on a battle between the treasury and the energy department over some £7 billion gained from the sale of British Energy, the energy department wants to use the money to deal with future nuclear decommissioning needs while the treasury prefers to keep in the pubic sector account so as to reduce the deficit.

Banks not lending – And the government has been unable to get the banks to lend enough to small businesses having missed targets by £2 billion (Sun p2, Mail p21, Times p35, FT p1).

Virgin wants £2 billion – Company looking to borrow £2 billion as it looks to acquire some of the Lloyds branches that are expected to be offloaded (Mail p61, Times p36).

Morrison wants Iceland – Supermarket looking at £1.5 billion bid for frozen food group  (Mirror p23, Express p44, Mail p61, Times p37, Guardian p24, Telegraph b1).

Volcano explodes – Could another ash cloud be on the way? Another volcano has erupted in Iceland closing the country’s airport, fears the cloud may drift south, although it is not expected to be as dense as last year’s which cost the economy some £2 billion (Sun p21, Express p11, Mail p6, Times p8, Indie p3, Guardian p1, Telegraph b2, FT p1).

Libya bill tops £1 billion – Still on international affairs and the £38 million daily cost of the air strikes over Libya are expected to see the total bill of the mission reach £1 billion (Mail p9, Guardian p12-13).

Troops out – Iraq war finally ends after eight years as the last British forces leave in a mission that has cost 179 British military lives, countless Iraqis and more than £10 billion (Mirror p14, Express p22, Telegraph p4).

Obama’s over – US president flies to Europe for five day tour that starts in Ireland today and includes a state visit and banquet at Buckingham Palace while the politics is expected to focus on setting up a joint national security operation with the US (Mirror p10, Sun p13, Express p10, Mail p13, Indie p26, Guardian p4, Telegraph p5, FT p2).

Huhne hounded – Energy secretary still features in many of the papers with some Lib Dem activists now telling him to go (Mirror p4, Sun p6, Express p2, Mail p8, Times p5, Indie p12, Telegraph p2, Morning Star p4).

Superinjuncted – Perhaps Huhne should have applied for a superinjunction as news of that footballer is over many of the papers, even if he is not named seems most people now know who he is, although one journalist could be jailed for breaking the court order on Twitter (Mirror p8, Sun p1, Express p21, Mail p1, Times p1, Indie p1, Guardian p2, Telegraph p1, FT p3).

Edited by Mik Sabiers

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