News digest 26 May 2011
It’s another packed digest as Obama offers
some advice to Cameron, which he and Osborne duly ignore, the OECD
adds its view too, there’s more on the NHS, challenges to cuts in
the courts, rail reform is trailed, while banks are taken to task,
before Lloyds axes more jobs, as does arms firm Selex, Focus
disappears as the ash cloud vanishes, and Huhne could go that way
too…
Obama’s advice – After a
whistle-stop tour Obama has left for the continental leg of his
European tour, but not with some choice advice for Cameron on the
economy and foreign affairs. Obama did not back the austerity
measures instead saying: “If a programme is not
working, we should get rid of it .. take a balanced approach and a
mix of cuts, but also thinking about how do we generate
revenue?” Unfortunately Cameron and Osborne have no
plan B. (Mirror p6-9,
Sun p8-9, Express p4-5, Mail p8-11, Times p6-10, Indie p3-7, Guardian p4-7, Telegraph p2-5, FT p3, Morning Star p2)
Think again on cuts – And
Obama is not the only one offering advice, the OECD has revised UK
growth forecasts down and called on Osborne to think again on the
scale of the spending cuts, especially as the body expects high
inflation to drive UK interest rates up (Mirror p12, Sun p2, Mail p81, Times p49/56, Indie p37, Guardian p31, Telegraph b1/4, FT p2, Morning Star p3, Unite
release).
1p fuel cuts costs 15,000
jobs – The Mirror
(p12) reports that the Osborne’s fuel tax change is expected to
cost thousands of jobs and send energy bills up, so says Oil and
Gas UK chief Malcolm Webb.
Building a vibrant private
sector – Shadow business secretary John Denham to call for
greater opportunities for graduates saying the UK economy is too
unbalanced and government must do more to create skilled and
well-paid jobs; Denham is to highlight the importance of advanced
manufacturing and green technologies, shame Labour didn’t do more
to support the sector while it was in power (Guardian p35).
Quality of care questioned –
Report from the NHS Care Quality Commission watchdog after secret
inspections says staff are failing to feed elderly patients
properly and treat them with due respect. The report could lead to
wards being closed or fined - or even prosecuted - if standards do
not rise (Sun p31, Express p2, Mail p1, Times p5, Guardian p10, Telegraph p8, FT p4).
Blood service backed? - Unite
cautiously welcomes news that Linda Hamlyn, head of the NHS blood
service, has expressed optimism the body will escape privatisation
with Unite’s Rachael Maskell saying: "This is a step in
the right direction but we will continue to keep a careful watch
over this very precious service.” (Unite
release) and the Morning Star (p3) reports
Unison has warned the war is not yet won…
Is healthy rivalry the tonic?
– Still on the NHS and day two of the Times (p18-19) investigation
bangs the privatisation drum yet again while the FT (p4) has a more considered piece on the
‘pause’, but follows that up with an op ed by Julian Le grand, a
health adviser to Blair, who says simply the bill should be
dropped…
LSE sets fees – From health
to education and the LSE yesterday voted by 68-67 not to charge the
full £9,000 fees for students, but not much cheer for students, the
university will charge £8,500 instead (Guardian p12).
Court cuts challenged – A
Victorian magistrates court in Kent has emerged as test case
over the closure of nearly 150 courts across the country as a
number of judicial reviews objecting to the closure plans are heard
in court (Guardian
p12).
MoD cuts bravery bonus – The
Sun (p2) reports that
paratroopers will no longer receive so-called ‘para pay’, a £6
daily allowance after passing tough training courses that enable
them to jump into combat from planes (Express p19, Telegraph p1).
Buy forests? – The
independent panel set up to advise the government on its forests
could recommend the state buys more woodland according to the
bishop leading the review, the right rev John Jones. However, the
report notes that 250 jobs have already gone at the Forestry
Commission, horse, bolted? (Times p17)
Reform rail? – As the
FT (p4) reports on train making
returning to the north with Hitachi, it is all change for the rail
industry as the FT (p19) reports
on the looming overhaul of the franchise system which could give
more power to the train operators on how the government’s £5.2
billion budget is spent, what are the odds on more bonuses for
bosses?
RBS review reviewed – The
investigation into the near collapse of Royal Bank of Scotland will
transfer from the FSA to the treasury select committee as City
veterans Bill Knight and Sir David Walker have started work after
being formally appointed to look into the research so far (Mail p82, Times p54, Telegraph b2).
Bad bank – Bank of Scotland
facing £20 million bill after wrongly advising thousands of
customers to invest in risky stock market-linked investment plans
and then unfairly rejecting customer complaints, the FSA fined the
bank £3.5 million while compensation payouts of £2.4 million are
expected to jump higher (Mirror p68, Sun p57, Express p65, Times p54, Indie p38, Guardian p33, Telegraph b4, FT p17).
Lloyds axes more – 24 hours
after RBS axed another 700 jobs, Lloyds cuts 500 more staff from
its insurance, wholesale and human resources functions (Mirror p68, Sun p57, Express p2, Mail p81, FT p17, Morning Star p2, Unite
release).
Nationwide attacks NS&I –
Building society claims the recent index linked bond from
government backed National Savings & Investment will distort
competition in the market. Nationwide has also formally ruled
itself out of the bidding for Northern Rock outlining concerns over
too much geographical overlap (Mirror p68, Express p65, Mail p81Indie p38, Guardian p34, Telegraph p, FT p, Morning Star p)
Cocktails shaken? – And
targeting export markets drinks maker Diageo yesterday announced it
will split its international (non-European) operations into two to
cover Latin America and Africa separately; the company is focusing
on faster growth markets and is still looking to acquire tequila
maker Jose Cuervo (Sun p57,
Express p65, Mail p83, Telegraph b5, FT p18).
Selex cuts – Italian arms
firms cuts 150 high skilled UK defence jobs. Ian Waddell, Unite
national officer for aerospace & shipbuilding, said:
"This news will come as a body blow for our members at
Selex Galileo ... the coalition government must take some
responsibility … no other government offers such an open defence
market and it's time the UK government defended our UK industry and
the jobs that go with it." (Morning Star p2, Unite
release)
Focus disappears – Failure to
find a buyer sees loss making DIY chain close and 3,000 jobs axed
(Sun p56, Times p50, Indie p40, Guardian p35, Telegraph b3).
Ash (almost) vanishes – Ash
cloud fears fade away as airplanes take to the skies (Sun p21, Mail p4, Times p26, Indie p10-11, Guardian p11, Telegraph p1, Morning Star p7).
Huhne disappears too – And
after days of being across the press energy secretary Chris Huhne
vanishes from the papers, although the Telegraph (p10) reports that
Huhne’s ex wife has signed a sworn legal confession over the points
claim…
Edited by Mik Sabiers
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