Reform Media Summary

8 April 2008

Economy

Gordon Brown, the Prime Minister has defended the abolition of the 10p tax rate. Stuart Adam, Senior Research Economist at the Institute for Fiscal Studies, said the Budget changes had left about 20 per cent of UK households worse off and roughly 40 per cent better off (Telegraph, p.14; FT, p.2, p.2, p.12 [leader]; Mirror, p.10; Sun, p.2; Times, p.2; Guardian, p.8; Independent, p.10, p.33; Mail, p.10; Express, p.8, p.12 [Patrick O’Flynn]).

Yesterday, George Osborne, the Shadow Chancellor, argued central banks should have more power to vary the capital requirements imposed on lenders over the economic cycle: constraining lending during a credit boom and giving institutions more leeway when the times are difficult (FT, p.2).

Abbey National becomes the last lender to withdraw its 100 per cent mortgage from the market, meaning that buyers will now require at least a five per cent deposit to purchase a home (Telegraph, p.1; Mirror, p.36; FT, p.1; Times, p.36; Mail, p.10).

Research by Experian, one of the largest credit reference agencies, reveals that more than 75,000 homes could be plunged into negative equity this year with areas of Manchester, Glasgow, south-east London and Birmingham cited as particularly vulnerable (Telegraph, p.13).

The Institute of Directors claims the Government is “almost certain” to miss its sustainable investment rule that national debt should be less than 40 per cent of income, due to the over-optimistic nature of its forecasts for future economic growth (Telegraph, B2).

According to a PwC poll, more than nine in ten UK Chief Executives disagreed that the Government had reduced regulatory burdens, a higher proportion than for any other country (FT, p.2).

Education

The exam board OCR have unveiled plans to break up GCSEs into modules, allowing pupils to re-take sections of their exams which they have failed. Education experts criticised the plans claiming they would give students a false sense of their ability and make exams “almost impossible to fail” (Telegraph, p.1; Mirror, p.26; Sun, p.2; Times, p.11; Independent, p.9; Mail, p.28).

John Denham, the Universities Secretary, will today call for universities to be more open about their admissions policies. Mr Denham will argue that publicising the process for allocating places will help to allay fears of “social engineering” on the part of universities (Times, p.11; Guardian, p.7; Mail, p.22; Telegraph, p.12; FT, p.3).

Further coverage of the Conservative plans of social discipline (Telegraph, p.12; Independent, p.11; Mail, p.14; Express, p.18).

The FT reports that education officials have worked up plans to accelerate the number of academy schools opening each year from 55 to 70 or more (FT, p.4).

Health

The Government announces a pay-deal that will take nurses’ annual salaries to above £20,000 by 2010. Dr Peter Carter, General Secretary of the Royal College of Nursing, said: “Given the uncertain economic climate and Government’s tough public sector pay policy, this package … goes some way towards bridging the gap between nurses’ pay and other public sector workers’” (Mirror, p.8; FT, p.4; Times, p.4; Guardian, p.12; Mail, p.29; Express, p.7).

The Countess of Chester Hospital, which spent £300,000 on a deep clean, suffered a C.Diff outbreak just four days later as 26 people became infected with the “superbug” (Sun, p.24).

Home Affairs

Research by the Sheffield Hallam University found that intensive family support schemes have often had a limited impact on participant behaviour. Of the 28 families examined, there was no discernable impact on behaviour in eight cases, while in eight more signs of success were limited (Telegraph, p.11).

Politics

A Populus poll, carried out by the Times, shows that support for Gordon Brown has fallen to the lowest point since he became Prime Minister (Telegraph, p.14; Times, p.1).

In an article for the Telegraph Rachel Sylvester argues that Gordon Brown “is getting dangerously close to the point of no return” in terms of losing his political authority (Telegraph, p.22).