Reform Media Summary

30 April 2008

Economy

In a comment piece in the Telegraph, Daniel Hannan writes: “In a paper published last month, the think-tank Reform, employed an arresting metaphor. Labour’s spending was like a flash flood rather than a planned irrigation. The water sluiced away uselessly: that is, it disappeared into pay packets without raising productivity. In some cases, it was actively damaging, washing away the fertile topsoil: higher pay for GPs, for example, encouraged many of them, perfectly understandably, to work shorter hours” (Telegraph, p.18).

Further coverage of the credit crunch. The FT warns that while optimists are right to cheer signs that the credit markets turmoil could finally be abating, these signs of recovery are “at best, tentative and patchy”. Mortgage approvals fell in March to levels not seen since the 1990s property slump, according to Bank of England figures (FT, p.3, p.11; Telegraph, p.4; Independent, p.34).

Mervyn King, Governor of the Bank of England, last night argued that the current pay structure of investment bankers had encouraged excessive risk taking and contributed to the current financial crisis (FT, p.1, p.3; Independent, p.26 [leader], p.35; Mirror, p.19; Guardian, p.2; Sun, p.2; Mail, p.8, p.14 [leader]).

According to figures from the FT and Oxford Economics, the amount of tax paid by Londoners has grown disproportionately compared with the amount London’s residents receive in public spending (FT, p.4).

David Blanchflower, a member of the Monetary Policy Committee, said yesterday that Britain faces the risk of a significant recession, with house prices at risk of falling by a third (Telegraph, p.2; Guardian, p.26; Sun, p.2, p.44).

Alistair Darling, the Chancellor, yesterday launched a review of the competitiveness of the UK’s tax system following growing concerns over the potential number of UK companies that may consider shifting their tax bases (FT, p.1, p.2; Telegraph, p.1; Independent, p.34, p.37 [Jeremy Warner]).

The Times reports that many families will have to pay up to £245 extra a year under new road tax rules (Times, p.1).

Industry analysts expect all energy bills to rise by a further 20 to 25 per cent by next spring, pushing another one million Britons into fuel poverty (Independent, p.1, p.26 [leader]).

Education

More than 800,000 school children do not speak English as their first language according to figures published by the Department for Children, Schools and Families. Jim Knight, the Schools Minister, said that: “The gap in achievement between migrant children and English- speaking pupils has narrowed significantly in recent years” (Telegraph, p.1, p.19; Mirror, p.4; Express, p.17).

Schools may be judged on 18 social targets, such as teenage pregnancy rates, obesity and criminal records. Last night teacher’s leaders, worried that schools would be made accountable for problems over which they have no control, described the proposals as “madness” (Guardian, p.1; Mail, p.21).

Independent schools have seen the biggest increase in pupil number in five years according to the Independent Schools Council (FT, p.5; Times, p.4; Telegraph, p.6; Independent, p.10).

Home Affairs

Gordon Brown, the Prime Minister, has reportedly prevented working prisoners from receiving a pay rise of £1.50 a week (Times, p.8; Mail, p.9).

Politics

Gordon Brown yesterday urged cabinet colleagues to come up with new legislative ideas to reinvigorate his Government, after what are expected to be disappointing local election results tomorrow (FT, p.2).

Peter Riddell: “After a rough few days or weeks, shares in Mr Brown could revive in the summer. Mr Cameron needs to consolidate his support, and that involves convincing voters how they would benefit from a Tory Government” (Times, p.31).

Further coverage of the forthcoming local elections (Independent, p.12, p.12 [Simon Carr], p.13, p.27 [Johann Hari]; Guardian, p.4; Sun, p.32).