Reform Media Summary

29 April 2008

Economy

Union leaders condemn George Osborne for his comment yesterday that the Conservative Party is “looking at” changes to employment legislation (Times, p.5; FT, p.2, p.12 [leader]).

The UK is the only member of the EU on course to breach agreed rules on the size of the budget deficit, the European Commission said yesterday. The budget deficit is forecast to rise to 3.3 per cent of GDP in 2008 and 2009, breaching the 3 per cent limit set under the EU’s growth and stability pact (FT, p.1; Independent, p.37).

Further coverage of the credit crunch. Nationwide has defied the Government’s latest efforts to ease the mortgage market squeeze by announcing plans to tighten its lending criteria for new customers. Borrowers will now need a minimum 10 per cent deposit to be considered for a mortgage. Abbey today becomes the first major high street lender to clamp down on low-cost “interest-only” mortgages (Guardian, p.23; Independent, p.36, p.36, p.39 [Jeremy Warner]; Telegraph, p.2; FT, p.4).

A report by the Institute for Fiscal Studies shows that the most efficient way to compensate those who have lost out from the abolition of the 10p tax rate is to increase income tax allowances. The IFS estimate that an £800 million package would remove 1.3 million losers while £2.5 billion would remove 3.3 million losers (FT, p.2).

Lord Leitch, author of the Leitch Review of Skills, has criticised the Government’s sector skills councils. Lord Leitch said “I saw one third doing well, one third doing badly and one third uncertain” adding that a lack of funding was an important cause of poor performance (FT, p.2).

Northern Rock faces criticism from rivals for staff allegedly adopting sales tactics that breach the terms under which the EU permitted Alistair Darling to nationalise the lender (Guardian, p.23).

In a speech yesterday, David Cameron argued that Labour has failed to tackle poverty and its effects adequately. He cited figures that show that the life expectancy gap between the wealthiest and poorest areas is now wider than at any point since Victorian times (Telegraph, p.4).

Continued coverage of UK companies shifting their tax base to Ireland (Independent, p.37).

Pensions experts have called the change in income tax from 22 per cent to 20 per cent “absolutely terrible” for savers who will be left with either smaller amounts or having to contribute more (Telegraph, p.1).

The Office of Fair Trading will investigate approximately 100 leading brands in an investigation into price fixing (Telegraph, p.1).

Further coverage of the Ministry of Defence funding crisis (Telegraph, p.8).

Health

The Sun reports the Prime Minister will declare next week that cannabis must be moved back from a Class C to a Class B drug, even though the Government’s Advisory Panel on the Misuse of Drugs says there should be no change (Sun, p.2; Mirror, p.8; Telegraph, p.4).

Yesterday nearly 75 per cent of members of the Royal College of Nursing supported the “presumed consent” organ donation proposal. Peter Carter, the RCN’s general secretary, said a poll of more than 500 frontline nurses in accident and emergence departments showed 93 per cent felt under undue pressure from the Government’s target to discharge or admit patients within four hours (Mirror, p.6; Telegraph, p.12; Guardian, p.7).

Researchers at Boston University say they have found a new more effective drug to fight the HIV virus (Mirror, p.25).

Researchers at the University of California argue that children who are exposed to common infections from being with other children could have less chances of developing leukaemia (Mirror, p.19; Telegraph, p.1).

Researchers reported yesterday that patients taking new diabetes drugs may be doubling their risk of fractures as the drugs may reduce bone density (Telegraph, p.12).

Women taking hormone replacement therapy to ease symptoms of the menopause are at greater risk of a stroke, scientists at Harvard Medical School says in a report published last night (Telegraph, p.12).

Education

Further coverage of Eton and St Paul's decision to boycott exam league tables. A leader in the Independent says: “the practice of ranking schools by exam results… is inherently flawed” (Independent, p.6, p.28 [leader]; Mirror, p.19; Telegraph, p.10, p.20 [Martin Stephen]; Guardian, p.11).

Chalfonts community college in Gerrards Cross, Buckinghamshire is employing sixth formers as supply teachers because of the shortage of qualified staff. Jonathan Clarke, the school’s vice-principle, said: “External supply teachers have been of variable quality and do not always come up to the standards that we expect.” He added that the “cover students” had a high level of knowledge and good leadership skills (Guardian, p.4).

Home Affairs

Government figures released yesterday show that jail terms for drug dealers are getting shorter. The average jail term for heroin dealers fell by six months, cocaine dealers by five months and cannabis dealers by three months (Telegraph, p.2).

Four criminal justice inspectorates condemn “nonchalant” attitude to breaching of bail conditions (Times, p.2; Guardian, p.4; Express, p.2).

Gordon Brown, the Prime Minister, writes in a comment piece in the Mirror: “I’m the first to say we’ve got more to do to tackle crime, strengthen our borders and show hard-working families we’re on their side” (Mirror, p.18).

Politics

Peter Riddell: “Labour's only hope is to point to the end of economic bad times and say that Britain has emerged less damaged than other countries” (Times, p.27).

Following the row over the Prime Minister’s decision to abolish the 10p rate of income tax, a ComRes survey for the Independent puts the Conservative party 14 points ahead of Labour. Jack Straw, the Justice Secretary, yesterday apologised to low-paid workers and pensioners affected by the removal of the 10p tax rate (Telegraph, p.4; Independent, p.4, p.4 [Simon Carr], p.29 [Steve Richards]; Mirror, p.6; FT, p.2).

Further coverage of the forthcoming local elections. A leader in the Telegraph says: “We argued here last Saturday that Mr Livingstone is out of touch with most of the city. It is time for the whole of London’s great metropolis to have its say. On Thursday, it should elect Boris [Johnson] as mayor” (Independent, p.8, p.8; Sun, p.2, p.8 [Nick Ferrari], p.11 [Fergus Shanahan]; Telegraph, p.8, p.21 [leader]; Times, p.22; Guardian, p.6, p.31).

Writing in the FT Phillip Stephens discusses the extent to which closer scrutiny of David Cameron’s policies would cause problems for the Tories. He argues: “Once people begin to look at the party as a government-in-waiting, they will be less tolerant of the confusions and contradictions” (FT, p.13).

Continued coverage of the electoral system and whether postal voting increases the risk of fraud (Independent, p.29 [Mary Dejevsky]).