News digest 30 September 2011

The digest opens with the shift from the Labour to the Tory party conference while BAE workers demand the government backs manufacturing as the defence secretary blames the top brass. There could be a rethink on child benefit cuts and there’s extra money for rubbish, the speed limit could also go up as used car sales soar, but Thomas Cook grounds planes, Santander issues a profit warning while the treasury courts pension funds as workers gear up for strike action, and while Germany backs the euro, EU benefit tourists are attacked but at least the pint is here to stay…

Last day of Labour conference – The Liverpool conference draws to end, Labour leader Ed Miliband had a wobble when trying to remember the candidates for leader of the Scottish Labour party, but the main talk was of a more united party and with speculation over a shadow cabinet reshuffle with a range of possible promotions for new members including Rachel Reeves, Stella Creasy, Liz Kendall and Emma Reynolds. The Guardian (p21) has a piece on the union’s reaction to  saying that Unite general secretary Len McCluskey is ‘relaxed’ about Miliband’s views and reports that the big three (Unite, Unison and the GMB) were all supportive of the leader’s speech and the conference generally, a good week for Labour overall (Mirror p6, Sun p2, Express p2, Mail p10, Times p18-19, Indie p10-11, Guardian p20-21, Telegraph p12, FT p2, Morning Star p2).

Cameron’s credibility challenged – Ahead of the Tory party conference which starts in Manchester this weekend the Guardian (p24) says that the Tory natives are getting restless. The Mirror (p10) outlines Boris Johnson’s thoughts on Cameron which are of the four lettered variation while the Sun (p2) has a shock poll on what people think about the prime minister; voters feel let down over immigration, the economy, pensions and health. 61 per cent say Cameron is not tough enough on banks and bonuses. Then again if you don’t have principles its hard to keep promises. The FT (p1) expects the issue of Europe to loom large over the week, while unions will ‘welcome’ the Tories to Manchester with an message for an alternative. Unite general secretary Len McCluskey said: "The deeper the cuts, the more harm this government does to our economy. Our NHS, our welfare state and our access to justice and education are all under assault … people are now questioning this government's competence, and getting angry about the choices it is making. This protest is only the beginning. We will keep doing so until they stop this economic kamikaze mission.” (Unite release)

BAE workers bite back over sack – The Mirror (p27) and  Morning Star (p1) report on the fight back by BAE workers who yesterday told the government to put its money where its mouth is and back British manufacturing. An emergency motion at the Labour party conference moved by Unite general secretary Len McCluskey said the economy will never emerge from this crisis without a revived manufacturing sector: “BAE Systems, Bombardier – these are companies that should be leading the hi-tech future but are being sacrificed by a government obsesses with austerity.”

Fox: Cuts are military’s fault – As more than 1,000 Royal Navy sailors are due to hear they have lost their jobs today the Guardian (p1) splashes on defence secretary Liam Fox who has laid the blame for the depth of cuts in the military budget at the foot of defence chiefs and their ballooning spending saying that hampered his attempts to protect the defence budget. Nothing to do with his poor negotiation skills in the star chamber when the austerity cuts were being agreed in Whitehall then …

Rethink on child benefit cuts – The Times (p1) also says that controversial plans to cut child benefit from higher earners may be watered down amid concerns of a massive backlash from families which could lose up to £1,000 a year and also worries that women are increasingly being turned off by the Tories.

Government bung for bins – Communities secretary Eric Pickles has found £250 million to help councils ensure they either keep or restart weekly bin collections. More than half of councils have switched to fortnightly collections but provided they commit to keep weekly collections for five years they will be paid to cover the cost of weekly collections (Sun p18, Express p7, Mail p1, Guardian p22, Telegraph p1).

Minister’s diary missing – A Scotland Yard officer was reprimanded after a diary detailing the engagements of the home secretary Theresa May was found at a concert hall in Glasgow. The diary was found at an awards ceremony she had been attending  (Sun p31, Times p11, Guardian p4).

Speed limit to rise – Government set to consider raising speed limit to 80mph, although you might have though he’d be content in fact energy secretary Chris Huhne has raised worries that it may harm the environment, no practice what you preach then (Mirror p10, Sun p6, Express p5, Mail p12, Times p1/5, Indie p1/6, Guardian p10, Telegraph p1, FT p2).

Sales of old bangers soar – Some 6.6 million used cars were sold last year, up 270,000 on the previous year  (Mirror p58, Times p52).

First slumps – Bus company sees drop in passenger numbers as the slumping economy puts the brakes on growth, revenues from its bus division are up just 1.2 per cent while its rail business advanced by 9 per cent (Sun p53, Express p66, Mail p88, Times p54, FT p22).

Thomas Cook grounds planes – Troubled travel firm Thomas Cook is to ground six planes and close 24 travel agencies as it tries to reduce costs, at least 350 jobs are to go and the company will also not pay a year-end dividend for the foreseeable future (Mirror p58, Sun p52, Express p67, Mail p89, Times p57, Indie p38, Guardian p35, Telegraph b3, FT p20).

Ryanair challenges Aer Lingus and Stelios – The Express (p66) and FT (20) report that Ryanair chief Michael O’Leary continues his battle with Aer Lingus calling on the airline to pay a special dividend (he holds 30 per cent of the carrier’s shares) and at the same time also questioned easyJet founder Stelios’ plans to try and set up a new budget airline named Fastjet.

Tesco cuts challenged – The Mirror (p58) reports the £500 million cuts by the high street giant have been challenged after comparisons with promotional prices in the last few weeks show prices have actually risen.

Santander profit warning – Bank issues severe profit warning  for UK business over rising costs and difficult market conditions (Telegraph b3, FT p19).

Treasury courts pensions funds – The FT (p4) reports that the UK Treasury has entered talks with pension funds to help assist in funding the £200 billion worth of infrastructure projects that the UK needs in the next decade. ‘Stressed’ banks have generally pulled out bankrolling the big infrastructure projects due to their long term nature and will only lend if they can charge much higher interest rates.

Prospect and CSP join pension protest – Still on pensions and the Indie (p2) and FT (p3) report that as headteachers began voting for the first time ever on possible strike action, two more unions – Prospect and the Chartered Society of Physiotherapists – have now joined in and will also be balloting for strike action over the government’s proposed changes. Looks like there’ll be a lot of workers taking action on 30 November.

Bail-out package boosted - And talking of taking action Germany’s parliament ratified the proposed bail-out plan for the eurozone by a large majority yesterday giving Europe some breathing space ahead although over in Athens a plan to cut 30,000 public sector jobs within two months ran into opposition, but showed the real impact of leaving the markets to dictate fiscal policy rather than demonstrating stronger political leadership (Mirror p32, Sun p52, Express p6, Mail p2/87, Times p37, Indie p4-5, Guardian p36-37, Telegraph b1, FT p1/6-7, Morning Star p7).

Benefit tourism attacked – But the government soon resorted to its default Europe attitude when it attacked plans that would allow unemployed European claim benefits in Britain. The change could cost the exchequer £2.5 billion but is likely to be challenged at the ECJ (Mirror p4, Sun p14, Express p4, Mail p4).

Mine’s a pint – And as Friday lunchtime arrives for many the Mirror (p18) and Mail (p33) report that the UK has won a last ditch attempt to keep imperial measurements, so not only will you still be able to buy a dozen eggs and half a pound of veg, but the traditional pint will remain on sale, and on that note…

Edited by Mik Sabiers

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