News digest 8 April 2011
Osborne is back on the attack as the
minimum wage is expected to see a minimal rise, Gove grabs more
money from schools as youth services are vanishing, but there could
be U-turn on defence cuts. Interest rates rise in Europe as
Portugal asks for assistance while back home banks look likely to
face a bit more competition, there’s something fishy in the City,
an MP pleads guilty and there’s another ballot at BA, and is the
real reason for Letwin’s outburst about flying cheap airlines
revealed?
Osborne attacks workplace
rights – Addressing the British Chambers of Commerce
chancellor Osborne labels trade unions the ‘forces of stagnation’
in the workplace claiming they should not oppose the government’s
drive to shake up and roll back employee rights, claiming why
should people be priced out of the market. The BCC complained about
the increase in the minimum wage for 16 and 17 year olds saying it
would tempt them to cut jobs; the minimum wage will rise by just 4p
for this group, or an extra £2.10 a week. Is that how close the
companies are to ruin? Osborne adviser Lord Wolfson yesterday also
called on the chancellor to expand the exemptions on red tape to
larger companies (Times
p46, Telegraph b8,
FT p2).
Minimum wage sees ‘modest’
rise – A small increase in the national minimum wage was
announced by the Low Pay Commission yesterday. From October the
adult rate will rise by 15p to £6.08 an hour benefiting 890,000 of
the lowest paid. The CBI said the rise struck the right balance,
the TUC said it was ‘modest’ while Unite’s Len McCluskey is quoted
in the FT (p3) saying:
“The rise will do little to help the lowest paid in our
society keep up with the rising cost of food and
fuel.” Unite is also calling for an end to different
rates for young workers saying people should be paid the rate for
the job regardless of their age (Sun p2, Indie p23, Morning Star p7, Unite
release).
Gove grabs more – Schools hit
for another £155 million as education secretary sneaks out cut at
end of financial year, local authorities will see a five per cent
reduction in the standards fund which helps pay for pressing needs
like free school meals or extra tuition for struggling children
(Guardian p6).
Nothing left for the young –
As Unite claims swathes of middle England will be deserts of
support for young people as desperate councils find cuts by axing
youth services around the country angry teachers have gone on
strike over unruly pupils. NUT members at Darwen Vale High School
in Lancashire are also taking action over poor leadership (Mirror p15, Mail p7, Times p21, Indie p9, Unite
release).
Defence cuts rethink – It
seems to be a week for government U-turns, after the NHS pause
earlier this week the government is now considering backtracking on
defence cuts as the military is increasingly stretched, is there
another war on the way or is Cameron shifting his policies based on
what the press say? (Mirror
p4-5, Sun p4, Express p17, Mail p4, Times p3, Guardian p17, Telegraph p1, FT p3, Morning Star p9)
Not listening – Although
maybe that NHS U-turn is not to be as the Times (p19) and Indie (p8) report health
secretary Andrew Lansley snubs the RCN by saying he will break with
tradition and not attend their conference next week. Is he scared
of justifying his reforms to a room full of healthcare
professionals?
HMRC called to task – Low Pay
Commission criticises HM Revenue & Customs for lax enforcement
of the minimum wage and the payment of interns, the HMRC is
responsible for legal enforcement of the rules when interns’
placements are considered as ‘work’ (Guardian p19).
UK jobs market reverses –
Recruitment is rebounding around the world as companies take on
people after the recession, except in Britain and Ireland where
jobs are declining with fears of a ‘jobless recovery’ rising
(Indie p37, Guardian p32).
High street woe – Is the
recovery in danger? Halfords and Carpetright both issue further
profit warnings as the high street sees falling demand from put
upon consumers (Mirror p56,
Sun p48, Mail p80, Times p47, Guardian p31, Telegraph b2, FT p20).
Portugal’s pain – As European
interest rates rise the EU agrees a rescue package for Portugal.
Chancellor Osborne says this vindicates his cuts strategy as the UK
would have been downgraded if it did not start to pay off its
debts, shadow chancellor Ed Balls rightly accuses him of
‘scaremongering’ calling the cuts a huge gamble, bit like the one
taken by the bankers that got us into this mess (Mirror p6, Sun p6, Express p6-7, Mail p2, Times p6, Indie p12, Guardian p4, Telegraph p1, FT p1).
Banks downgraded? – And a few
of the papers trail next week’s interim report into the banking
sector. The report could see the cost of borrowing for consumers
rise as government guarantees are slowly withdrawn. The report is
also likely to say the Lloyds Banking Group should not be split,
plus formal caps on the size of bank balance sheets and their
overall market share are also not likely to be introduced, the
banks are however expected to face greater competition (Mail p81, Telegraph p1, FT p2).
Lloyds battle – And the
Sun (p48) reports that
Lloyds is facing a battle with five different unions over pay, with
some 15,000 staff facing pay freezes as they refuse to sign up to
new working conditions.
SFO to go – Government
pushing ahead with plans to shut down Serious Fraud Office and
transfer some activities to the Crown Prosecution Service creating
fears that corporate fraud will rise impacting confidence in
London’s financial markets (Times p41).
Something fishy –
Billingsgate porters challenge the City of London Corporation over
changes to licensing uncovering a letter by the London Fish
Merchants Association chairman Don Tyler which calls for the
abolition of licensing rules (Morning Star p3, Unite
release).
Banged away – And disgraced
ex-MP Elliot Morley finally admits he fiddled his expenses by
claiming more than £30,000 more on his mortgage; he will likely
face a lengthy jail sentence (Mirror p14, Sun p2, Express p2, Mail p28, Indie p23, Guardian p14, Telegraph p4, FT p4).
Flying away - Branson
considering finding another strategic partner for his airline as
the industry consolidates, he still owns 51 per cent of the airline
but is looking for a partner following BA’s coming together
with American Airlines (Mirror p56, Indie p40).
Another BA ballot – Not a
Unite one, the Telegraph
(b3) reports BA’s pensioners are to be balloted on proposed changes
to the pension scheme, what are the odds of BA challenging the
result in the courts?
Away Dave – And finally
Cameron pretends to do his man-of-the-people as he takes Sam Cam on
a 40th birthday treat; for her special day he has gone the extra
mile and splashed out on a Ryanair flight to Spain. What a
gentleman he is; or was the real reason Oliver Letwin said the poor
should not fly cheap airlines was to actually make space for
Cameron and his entourage? (Mirror p11, Sun p17, Express p11, Mail p1, Guardian p14, Telegraph p1)
Edited by Mik
Sabiers
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