Reform Media Summary

10 April 2008

Economy

The International Monetary Fund reduces its forecast for economic growth next year to 1.6 per cent, far below the rate estimated by the Government. In justifying the revision the IMF argued that the credit crunch might be “the largest financial shock since the Great Depression” (FT, p.4; Independent, p.38, p.41 [Jeremy Warner], p.45 [Hamish McRae]; Mail, p.8; Mirror, p.6; Times, p.2; Guardian, p.28; Telegraph, p.1; Express, p.2).

The Bank of England is widely expected to cut interest rates again today (Guardian, p.28; Telegraph, p.21 [leader], B1; Express, p.12 [leader]; Mail, p.75; Mirror, p.8).

In an article for the Spectator Frank Field, MP, urges Gordon Brown to reform the child benefit and tax credits so that families are given more individual freedom on how to spend their money (Spectator, p.10).

The Bank of England fears that the credit crisis has entered a new and more serious phase as British Banks yesterday took steps to increase their borrowing facilities with the central bank. Banks have asked to keep reserves of £23.54 billion on deposit a sharp increase on the £20 billion that they held yesterday (FT, p.1).

Mortgage lenders yesterday urged Alistair Darling to speed up work to “reopen” the market. Sir James Crosby, former Chief Executive of HBOS, has been appointed by Mr Darling to lead a study on ways to increase liquidity into the mortgage market, a move that was criticised by lenders who feel more urgent action is required (FT, p.4).

Further criticism of the Government’s decision to abolish the 10p starting rate of income tax (New Statesman, p.6 [leader]; Independent, p.6, p.6 [John Curtice]).

Anatole Kaletsky: “Brace yourself for a 30 per cent fall in house prices” (Times, p.19).

Education

The Independent reports that Undergraduates fear that the Government’s drive to get half of young people into university will make degrees “worthless” and make them struggle to get a job after graduation (Independent, p.4, p.30 [leader]).

According to a report by the Department for Universities the evolving perception of students as customers has resulted in higher expectations in relation to the services they receive. The report said: “They require transparency about what they are paying for and how this money is allocated – and they expect this to be value for money” (FT, p.4).

Complaints to the Office of the Independent Adjudicator for universities increased by 25 per cent since 2006, with more international and postgraduate students complaining about the quality of the education they receive (Guardian, p.15; Telegraph, p.2; Independent, p.4).

Writing in the Independent Johann Hari praises Ed Balls, the Schools Secretary, for: “trying to push Britain’s schools in a direction that every piece of educational research indicates will produce better results” (Independent, p.33).

Writing for the Education Independent Conor Ryan, former Senior Education Advisor to Tony Blair and David Blunkett, argues that cutting class sizes is not a particularly cost-effective way to achieve better results (Independent Education, p.3).

Figures obtained under the Freedom of Information Act show that fewer than a tenth of secondary teachers have a top degree from a leading university in the subject they teach (Telegraph, p.14).

The Government yesterday announced 115 new trust schools. Lord Adonis, the Schools Minister, said that new trusts would increasingly be used to drive up standards in schools where fewer than 30 per cent of pupils get five good GCSEs (Guardian, p.17).

A spokesman for the Department for Children, Schools and Families suggested yesterday that the £45 billion plan to rebuild every school by 2020 is to be scaled down in order to fast-track new schools (Guardian, p.7).

Health

Three more independent sector treatment sectors were finally given the go-ahead yesterday after long delays, as business leaders described it as “hugely frustrating” to work with the Department of Health. Ben Bradshaw, the Health Minister, praised the role of the private sector saying it was “galvanising the NHS to raise its game” (FT, p.2).

According to a report published today the decision to allow General Practitioners to give up responsibility for evening and weekend cover has increased risk to patients, who are unsure where to go for help (Mail, p.19; Telegraph, p.1; Sun, p.2).

A report by the Healthcare Commission has criticised the Staffordshire Ambulance Service for putting the “safety of patients, volunteers and staff at risk” with some of its practices (Times, p.28; Guardian, p.11; Telegraph, p.4).

Politics

In an article for the New Statesman Rosa Prince argues that Gordon Brown needs to reconnect to voters in order to reverse Labour’s current decline in the polls. Ms Prince says Labour must “work out ways to speak to people worried about the rising cost of everyday items” and not distance itself from the current financial turmoil by using phrases such as “international economic uncertainty” (New Statesman, p.12).

Iain Martin comments: “Brown has little natural feel for the aspirational property-owning classes” (Telegraph, p.21).