Reform Media Summary

11 April 2008

Economy

The Bank of England cut interest rates by a quarter-point to 5 per cent yesterday. In announcing its decision, the Bank expressed concern about inflation noting that the closely watched CPI inflation measure rose to 2.5 per cent in February. A number of lenders increased the price of their short-term mortgage deals yesterday, in spite of the cut to the base rate. Vincent Cable comments in an op-ed in the FT: “[lenders] want the state to underwrite their risks and losses …. But the Bank Governor is right to say that a balance needs to be struck between helping the banks and not rewarding reckless, irresponsible lending” (FT, p.1, p.2, p.2, p.12 [leader], p.13 [Samuel Brittan], p.13 [Vincent Cable]; Sun, p.6; Mirror, p.4, p.8 [leader]; Independent, p.42; Economist, p.33; Express, p.8; Times, p.1, p.8-9; Telegraph, p.1, p.4 [Edmund Conway], B1, B5; Guardian, p.1, p.23, p.25 [Nils Pratley]).

Figures released by the Office of National Statistics show import price inflation reached a 14-year high in February as the weaker pound drove up the cost of imported goods (FT, p.2, p.2).

The Government has brokered a deal with power companies that could help up to 100,000 householders with their fuel bills. The major suppliers agreed to treble aid to households who spend more than 10 per cent of income on heating (Sun, p.2; Mirror, p.4; Express, p.2; Telegraph, p.2).

In an article for the Guardian Polly Toynbee describes the decision to abolish the 10p starting tax rate as “iconic” suggesting that: “Brown has blown away his most admirable reputation – a 10-year record of directing money to the poorest” (Guardian, p.29).

Further coverage of the IMF report (Telegraph, B1; Mail, p.10, p.10 [Alex Brummer]; Guardian, p.24; Mail, p.88).

Health

Lord Darzi has recommended that the minimum income guarantee for family doctors be scrapped. The move has been widely expected, as primary care trusts complain that the guarantee can double their costs when they introduce new primary care providers (FT, p.5).

An article in the British Medical Journal argues that universities use the wrong methods to screen candidates for medicine. The research suggests that problem solving and reasoning tests should replace A-level results and interviews (Telegraph, p.2).

A milder IVF treatment could potentially make the process more affordable a study from the Netherlands has found (Times, p.2).

Regulations which prevent some migrants in the UK from receiving treatment under the NHS were challenged in the High Court yesterday (FT, p.5; Express, p.15).

Education

Commenting on the schools’ admissions policy controversy, an article in the Economist says: “in the end, the final report on the matter, published on April 3rd, proved the ‘cash for places’ allegation to be overblown” (Economist, p.36).

Home Affairs

New figures released by the TaxPayers’ Alliance revealed that crime cost every Londoner £400 last year. Matthew Elliot, Chief Executive of the TaxPayers’ Alliance said: “Crime is set to be the issue in the election. Londoners are looking for a Mayor who will tackle the epidemic” (Sun, p.27).

Details emerge of a plan to “tag” every Metropolitan police officer so that senior officers can monitor their movements. Although, the technology is aimed at “improving officer safety” some officers are concerned that the system will end community policing and leave officers purely at the beck and call of control room staff (Telegraph, p.5).

A review into the use of tiny samples of DNA as evidence in criminal prosecutions has ruled the technique to be scientifically sound, despite concern from the police and the judiciary (Guardian, p.10).

Caroline Spelman, Chair of the Conservative Party, supports calls for the parents of child offenders to be forced to do community service alongside their offspring (Guardian, p.12).

Politics

An article in the Economist says: “Mr Brown’s position is not yet irretrievable. For one thing, the Tories have not built an unassailable lead on economic competence …. Voters are also still as likely to blame banks and the international financial system for the credit crunch as the Government” (Economist, p.34, p.40).

Further coverage of MPs’ expenses (FT, p.5; Sun, p.2; Telegraph, p.2).