Reform Media Summary

23 April 2008

Economy

Alistair Darling, the Chancellor, yesterday tried to appease Labour’s tax rebels by offering to speed up assistance for some of the 5.3 million poor people, who have become worse off as a result of the abolition of the 10p tax band. Mr Darling had previously insisted that any assistance package would be implemented in next year’s Budget but said yesterday he “expects to do something in the pre-Budget report that would apply in this financial year”. Meanwhile the Conservatives attacked the decision, citing figures from the Institute of Fiscal Studies to argue that the tax reforms would push 300,000 people below the poverty line (FT, p.2, p.2, p.15 [John Kay]; Independent, p.11, p.29 [Deborah Orr]; Guardian, p.1, p.12; Times, p.28; Mail, p.6, p.14 [leader]; Telegraph, p.4 [James Kirkup], p.4; p.20 [Graham Brady], p.21 [leader]; Express, p.10).

In a meeting with Alistair Darling the Council of Mortgage Lenders and the Finance and Leasing Association pledge to pass on cuts in the base rate to borrowers, if the new £50 billion lending facility introduced by the Bank of England is successful in reducing the inter-bank lending rate. However, in an op-ed for the Independent Hamish McRae argues that the rescue package is unlikely to generate any significant improvement because the core problem remains “that there are not enough savings in the country to fund the demand for mortgages” (FT, p.2; Independent, p.10, p.31; Guardian, p.7, p.22; Mail, p.17, p.42; Mirror, p.4).

Families have been warned that the cost of basic foods will rise steeply again because of acute shortages in commodity markets. Food price inflation has pushed up a typical family’s weekly shopping bill by 15 per cent in a year (Times, p.1, p.2; Mail, p.4; Independent, p.4; Guardian, p.24; Telegraph, p.1; Express, p.1, p.4; Sun, p.2).

Timothy Besley, an external member of the Monetary Policy Committee, says the Bank of England should focus on managing inflation and not try to prevent unavoidable adjustments in real living standards (FT, p.2).

In an article for the FT Sir John Rose, Chief Executive of Rolls-Royce, bemoans the lack of a coherent industrial policy in the UK. Sir John suggests that: “The first priority is to stop treating manufacturing as some kind of relic of the industrial revolution” and argues that a “route map” should be created to set priorities for both public and private investment (FT, p.15).

Figures released by the Treasury forecast that the bill for retirement benefits for public sector workers will rise by £25.4 billion in 2008-09 (Mail, p.2).

Alice Miles writes about the Policy Exchange proposal for a new parental care allowance. She calls it “immoral and regressive” saying that it would be “hurting the poorest children the most” (Times p.15).

The Conservative party claimed last night that the cost of funding public sector pensions is set to increase by more than £1,000 for every household (Telegraph, p.2; Express, p.2).

Health

The proportion of people taking out private medical insurance has remained steady in spite of increased competition in the shape of falling waiting times in the NHS (FT, p.4).

According to a team of scientists women are more likely to give birth to boys if they eat a high calorie diet in the run up to, and during the time of conception. They found 56 per cent of women in the higher calorie group gave birth to boys, compared to 45 per cent in the lower calorie group (Guardian, p.1).

Education

Gordon Brown expresses his disappointment over the National Union of Teachers’ decision to stage the first one-day national stoppage for more than 20 years and calls for schools to stay open during the strike (Independent, p.10; Mirror, p.5; Telegraph, 12; Express, p.2, p.12 [Peter Inson]).

Several state schools are preparing to open boarding houses for pupils. A series of academies are considering providing on-site accommodation for children from service families, young people with parents working abroad and pupils from broken homes (Telegraph, p.10).

Politics

Policy Exchange, has said today that the Government’s plan to reform party funding is a “myth” (Guardian, p.12).

John Harris comments that while the Labour rebels continue to revolt the Tories should be making head way in attracting voters. However he argues that “Cameron just looks lost” (Guardian p.28).