News digest 29 November 2011
The digest opens with the latest ahead of
the comprehensive spending review as well as on tomorrow’s strike
action. The high street is looking shaky but Thomas Cook sees a
(slight) recovery, there’s a row over a coat of arms for the
speaker, has Branson got an even better deal on Northern Rock and
while there’s bad news for the government in the latest opinion
poll, Labour still has more to do…
Chancellor charts correction to
course – As the economy heads for the rocks will
chancellor George Osborne change tack today? While he says he is
sticking to Plan A for austerity, today sees Plan C outlined as the
comprehensive spending review kicks off at 12:30. Osborne is
expected to make a few splash announcements but has trailed the £30
billion public works programme, a cap in the rise in rail fares to
1 per cent above inflation, an acceleration in movers to raising
the pension age to 67 and a £1 billion fund for young unemployed.
It may be hard for an eye catching giveaway but the chancellor may
extend the bank levy or hit tax breaks on pensions for higher rate
taxpayers.
Key data to watch
out for - Growth and unemployment
forecasts
Last March the
OBR forecast was 1.7 per cent for 2011 and 2.5 per cent for 2011.
The OBR forecast unemployment of 8.2 per cent, it is currently 8.3
per cent. There will also be borrowing figures which were supposed
to be £101 billion this year, that could jump to £120
billion.
Labour shadow chancellor Ed Balls argues
Osborne’s gamble has failed in the Mirror where he calls for
investment in jobs for young people, more housing starts, a cut in
VAT, help for home improvements and support for small businesses
(Mirror p8-9, Sun p2, Express p2, Mail p1-2/61, Times p8-9, Indie p1, Guardian p1/6-9, Telegraph p1/b1/4-5, FT p1/2, Morning Star p1).
OECD downgrades UK growth
forecast -
Britain will be back in recession this winter is the headline
in the Guardian (p6) as figures from the OECD point to a bleak
outlook for the UK and Europe. UK jobless could soar to three
million by 2013 while next year the UK economy may see growth of
just 0.5 per cent.
Gove adds fuel to the fire –
Instead of getting around the table and negotiating the government
yesterday send out education secretary Michael Gove to accuse union
leaders of ‘itching for a fight’ listing three union ‘barons’ he
believes are the driving force behind the walkouts and ignoring the
hundreds of thousands that have voted for strike action tomorrow.
Up to two million workers are expected to strike tomorrow in the
start of a mass campaign of action against the government’s plans.
The Indie (p8-9) has a
feature on how strikes will affect the country but its main piece
says
Ministers and unions to kiss and make up next week, only time
will tell if there are more strikes in the new year (Sun p8,
Express p4, Mail p8, Times p10, Guardian p8-9, Telegraph p4/28, FT
p4, Morning Star p4/9).
Pension scheme reform delayed
– As the Telegraph (p1) reports that
private sector pensions have fallen by a fifth the Times (p40)
reveals that millions of low paid private sector workers will have
to wait a year longer before they clock up occupational pension
scheme benefits after the government bowed to business pressure.
Staff will now be automatically enrolled in schemes from May
2015.
Unilever strike call – Pot
Noodle lovers better stock up after workers at Unilever have voted
overwhelmingly for strike action over the company’s plans to scrap
the final salary pensions scheme (Sun p47, Times p39, Guardian p26,
Telegraph b5, FT p21, Unite release).
High street axe falls – A new
survey from the CBI says stores are shedding staff at the fastest
rate in two years as retail sales have fallen for the sixth month
in a row (Times p41, Indie p51, Guardian p27).
Sainsbury’s opens 1,000th
store – Supermarket chain opens new store in Irvine,
Ayrshire adding to 6,000 jobs created so far this year (Sun p47,
Times p41).
Thomas Cook shares soar –
After the interim deal was struck the travel firm saw a 22 per cent
increase in shares yesterday, recouping some of the 75 per cent
fall last week (Mirror p48, Express p45, Mail p59, Times p43, Indie
p54, FT p36).
MPs join plea to cut APD –
Talking of travel and a number of Tory MPs join campaign to cut
flight duty (Mirror p48).
Qantas strike cost airline £124
million – False economy of challenging cabin crew eats
into airline’s profits which are expected to hit some £140 million
(Times p43, FT p25).
Rolls Royce pension deal –
Aero-engine maker strikes deal with Deutsche Bank to cap the risk
posed by retirees in its pension scheme that live longer than
expected. The ‘longevity swap’ deal is designed to protect the
final salary schemes of 37,000 pensioners (Mail p59, Times p40,
Indie p52, Telegraph b2, FT p19).
Standing room only – From
plans to trains and the Sun (p21) reports that passengers are
paying up to £20 million a year to stand on Britain’s 10 most
crowded trains with the worst services cramming twice as many
passengers in standard class as there are seats for.
Shock over racist rant on
tram – And many papers report on the arrest of a woman
after a shocking video of her
racist rant was posted on the internet (Mirror p15, Sun p9,
Indie p25, Guardian p11).
Tabloid witch hunt – More
contributions to the Leveson enquiry cover evidence from the
landlord of murdered Jo Yates saying the media vilified him.
Charlotte Church and Anne Diamond also gave evidence of how they
were plagued by the press and ex cabinet minister Peter Hain was
told his computer may have been hacked (Mirror p14, Sun p27,
Express p4, Times p1, Guardian p1/14-15, Telegraph p15, FT p4,
Morning Star p3).
Bercow row – Speaker John
Bercow has been taken to task for spending £37,000 of taxpayers
money on a portrait and a new coat of arms, will they ever learn?
(Mirror p7, Sun p17, Mail p9, Times p20, Indie p26, Guardian p29,
Telegraph p1)
Cuts backfire – The Mirror
(p29), Guardian (p12) and Telegraph (p6) all report on the shambles
of the government’s aircraft carrier programme which show that
after scrapping plans to buy two new 65,000 tonne warships for
£3.65 billion it will now spend £6 billion to put just one in
operation.
Will Branson get Northern Rock for
free? – And the Mail (p21) says that Virgin could be able
to tap into the bank’s cash buffer which was there times the level
of most banks. That could leave Virgin with an extra £250 million
to play with reducing the amount needed to fund the deal. Rich get
richer as usual.
Drop in university
applications – Rise in fees sees 15 per cent fall in
applications as those from lower income households are discouraged
from higher education (Times p6, Guardian p2, Telegraph p16).
Mixed poll results – And
finally there are a couple of opinion polls. The Telegraph (p2) has
the latest on the London mayoralty with Tory mayor Boris Johnson
having an 8 point lead over Ken Livingstone; Boris was up in the
polls although transport seems to be the thorn in his side. The
Indie (p1) has a
poll on the economy where 69 per cent say the government should
slow the pace of cuts to boost growth and that 69 per cent of
people also said the government was wrong to let unemployment rise.
The overall poll did not offer succour for Labour as only 29 per
cent though Ed Miliband and Ed Balls would do a better job than
Cameron and Osborne, but the main polls have a collapse in lib Dem
support to just 10 per cent, the Tories on 37 per cent and Labour
on 39 per cent, let’s see if George’s speech today makes a
difference…
Today’s front
pages
Edited by Mik Sabiers
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