News digest 24 March 2011
The budget dominates the papers squeezing
out most other news, although Sainsbury’s sees a slowdown, Britain
is becoming bleak, there are toxins in Tokyo’s water, air attacks
continue in Libya and Portugal’s government falls over austerity
cuts…
BUDGET: Main points – Growth
forecast downgraded from 2.1 to 1.7 per cent; 1p cut in fuel tax
and windfall tax on oil firms; Doubling of cut in corporation tax;
Review of 50 per cent tax rate; £350 million of business
regulations removed; 21 new Enterprise Zones; £200 million for
first time home buyers; A flat rate state pension and a rise in
personal allowances to £8,105 but 750,000 more people will pay top
rate tax which kicks in at a lower £42,475; Tax avoidance loopholes
closed expected to raise just £1 billion.
Chancer Osborne – The budget
tops the day’s agenda. Unite’s Len McCluskey said:
“Growth is shrinking, unemployment is on the rise,
wages are falling or stagnant and this government is creating a
lost generation of young people. No one should be fooled by this
budget, it's a mirage from the architect of the most devastating
cuts to jobs and services in generations … if you are struggling to
make ends meet, there is very little in this budget to help
you." The Mirror (p1/6-9) calls it a bodge it
budget saying the help from Osborne won’t even cover the VAT
losses. The Sun (p1-7) hails
the fuel tax cut and calls the budget part of the battle to
kickstart the economy, I seem to remember before Osborne’s
emergency cuts it was growing. The Express (p1-7) praises Osborne,
while the Mail (p1/4-13)
even though it welcomes some of the cuts says don’t forget the
avalanche of tax rises coming in April a theme the Times (p1/6-9) also follows up
on focusing on further rises and the fact that there is a £1
billion rise expected in national insurance as thresholds increase
by CPI not RPI. The Indie (p1-8) says it’s a gamble
on growth while the Guardian (p1-7) says the message
is forget the cuts and fill up your tank as does the Telegraph (p1-8) while also
warning of potholes ahead. It’s left to the FT (p1-26) to sum it up as Osborne sticks
with Plan A while finally the Morning Star (p1-3/7-8)
says it is a budget by the rich for the rich. Ed Miliband hits back
with a good retort saying cuts were too far and too fast and
ridiculed Osborne for producing “a budget for growth
that downgrades growth forecasts.” Overall coverage
is less positive than Osborne may have liked and it all depends on
whether the gamble pays off…
Oil uproar – Still with the
budget and the Express
(p64) and Mail (p71) both
drill down to look at the oil sector windfall tax which helped wipe
£2 billion of the sector’s stock market value. It seems Osborne has
not been in touch with the biggest producers which could be
ominous, especially as many say that it will hit investment plans,
hmm wasn’t the private sector supposed to be the driver of jobs
growth? (Telegraph b1,
FT p18)
Perfect storm – Evidence of
trouble on the high street. Sainsbury’s latest results come in
below forecast as hard pressed shoppers cut back on their weekly
shop as like for like sales climb just 1 per cent. Chief executive
Justin King said: “There’s no good news on the
horizon.” (Mirror p58, Sun p44, Express p65, Mail p77, Times p37, Indie p33, Guardian p31, Telegraph b11, FT p38).
Bleak Britain – And the
reality is laid bare by Unite as it reveals the results of a survey
of over 140,000 people that shows many people in the UK are now
"surviving, not living". Len McCluskey,
Unite general secretary, said: "In Bleak Britain it
seems the way to survive is do not live outside the wealthy parts
of the country, do not rely on public services, make sure you have
plenty of money - and absolutely do not have a family. People are
surviving, not living. Services are disappearing. Queues are
growing for medical treatment, and once again parents are worrying
about class sizes. These are issues we thought that we had put
behind us. Families are being failed and benefit changes in April
will tighten the screw further still. An interest rate rise in the
summer will push the many just managing to keep their head above
the water under and into desperate circumstances.”
That leads the call for change which will see thousands march
through London’s streets as people from all over the country
mobilise for the alternative, just two days to go now
(Unite
release, Mirror special
march supplement).
Toxic Tokyo – Fears over the
water see a rush to buy bottled water as countries across the
region stop importing food from Japan. There are moves towards
repair on the roads as the government looks to get infrastructure
restored but still more fears over the nuclear plant as two workers
are taken to hospital with radiation sickness (Mirror p10, Sun p21, Express p22, Mail p32, Times p32, Indie p27, Guardian p21, Telegraph p21, FT p32, Morning Star p7).
Navy no to nukes – And the
Guardian (p16) says the
Royal Navy is to stop using a dangerous type of reactor because it
fails to meet modern safety standards, it is used in the four
Trident submarines.
Air attacks continue –
Conflict in Libya sees allied forces now targeting Gadaffi’s tanks
after declaring air supremacy, fighting goes on across the country
and still no sign of an exit strategy. Reports note US public
opinion hardening against the intervention amid signs Obama wants
out (Mirror p12, Sun p14-15, Express p15, Mail p26-27, Times p14-17, Indie p8-11, Guardian p24-25, Telegraph p18-19, FT p29, Morning Star p7).
Socrates goes – And
Portugal’s prime minister resigns as he fails to get a fourth
austerity budget through, triggering a potential EU crisis and
possible need for a bailout, let’s hope its not a case of here we
go again… (Sun p44, Times p31, Indie p26, Guardian p31, Telegraph p20, FT p27).
Edited by Mik Sabiers
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