Reform Media Summary

7 May 2008

Economy

Experts in the financial industry have predicted that the Bank of England is on course for the first back-to-back interest rate cuts in its history following the announcement by the Chartered Institute for Purchasing and Supply that growth in the services sector has virtually stagnated this year (Times, p.47, FT, p.5; Telegraph, B1).

The Conservatives are to work with Rolls-Royce in an attempt to design strategies which would herald a “manufacturing revival” in the UK. In addition the party have pledged to promote a “new economic dynamism” focusing on transport, research and innovation, education and skills (FT, p.2; Independent, p.38).

Further coverage of UK companies shifting their tax bases. Aberdeen Asset Management is reportedly considering moving abroad for tax purposes (Times, p.40; Telegraph, p.5).

Alistair Darling, the Chancellor, extends discussions with the banking industry on the proposed special resolution regime which aims to deal quickly with a failing bank (FT, p.2).

James Purnell, the Work and Pensions Secretary, tells the Fabian Society that the Government is making the fight against child poverty a central aim because the party feels “outrage” at the waste of lives, unlike the Conservatives who pay “lip service” to the Government’s commitments. He continued “The child poverty target links old and New Labour” adding “the Tories don’t want to eradicate poverty, they want to redefine it” (Guardian, p.12, p.31 [Simon Jenkins]).

A report by the Learning and Skills Council finds that employers spent a record £38.6 billion on training last year, an increase of 16 per cent compared with two years earlier (FT, p.4).

A report by an independent review set up by the Government finds that competition in the postal market has produced no discernable benefits for the consumer (FT, p.5; Telegraph, p.2).

Writing in the FT Martin Wolf calls for tighter regulation of the financial services industry (FT, p.15).

Analysis by the Economic Consultancy Capital Economics shows that families are having to hand over more of their wages to pay household bills than at any time in the last 17 years (Telegraph, p.2).

Home Affairs

The Home Office yesterday came under attack for “creative accounting” as it pledged to cut nearly £1 billion from the cost of the identity card scheme. Cost savings are to be achieved through broadening the role of the public sector in the provision of biometric fingerprinting; a plan that has been criticised by Edgar Whitley of the London School of Economics’ Identity Project for compromising security (FT, p.2).

Further coverage of the decision to reverse the downgrading of cannabis from a class B to a class C substance. The Independent leader declares “it is hard to think of a more wrong-headed response from Gordon Brown to his plummeting popularity” adding “this is gesture politics at its most pathetic” (Independent, p.16, p.26; Sun, p.2; Express, p.19, Mail, p.9).

James Plaskitt, the Work and Pensions Minister, will today announce a planned extension in the use of lie detectors to identify and deter benefit frauds (Telegraph, p.4).

Further coverage of the value of CCTV cameras as a means of cutting crime (Independent, p.31; Telegraph, p.6).

Ruth Kelly, the Transport Secretary, will reject calls for a night-time curfew on newly qualified drivers carrying passengers, and will not raise the minimum driving age to 18. Instead tougher driving tests and school taught road safety will be proposed (Guardian, p.4; Mirror, p.6).

Health

Pressure for bed space has forced four out of five hospitals in England to declare a state of emergency over the past five years (Telegraph, p.8).

Commission for Social Care Inspection publishes inspection ratings on care homes in England (Times, p.16).

OFCOM: Bluetooth technology could be used to alert emergency services when someone has a heart attack (Times, p.4; Telegraph, p.8, p.19 [leader]).

Education

New truancy data shows rise, with 340,000 children missing more than one day per week (Times, p.10; Independent, p.10; Telegraph, p.10; Mail, p.13).

A study by researchers at Durham University shows that pupils learning French through a CD-Rom progressed twice as quickly as those learning through the traditional textbook method (Independent, p.6, p.26 [leader]).

Politics

Times / Populus poll: Labour 29 per cent (down four on last month), Conservatives 40 (up one), Liberal Democrats 19 (up two). 55 per cent of Labour voters think that Labour would be more likely to win the next election if Gordon Brown stood down (Times, p.1, p.2 [Peter Riddell], p.19 [leader], p.19 [Alice Miles], p.21 [Daniel Finkelstein]; FT, p.15 [Peter Clarke]; Sun, p.1; Mail, p.6).

The Conservatives have called for this month’s by-election in Crewe and Nantwich to become a referendum on the Government’s decision to abolish the 10p tax rate. Conservative leader David Cameron declared: “People in Crewe will know the more of them who vote Conservative on May 22, the clearer the message will be to Gordon Brown to do more to help” (Times, p.30, FT, p.2; Independent, p.8).

Charles Clarke, the former Home and Education Secretary, attacks Gordon Brown urging the Government to abandon the techniques of “triangulation” and for the Prime Minister to stop using “dog whistle’ language” such as “British jobs for British workers” (Independent, p.8, p.27 [Mark Steel]; Telegraph, p.1).