Reform The Week

11 April 2008

Reform – The Week

The abolition of the 10 pence tax band has highlighted the plight of Britain’s lowest earners. Already facing one of the worst poverty traps in the OECD and rising costs of living – there is concern that this move will further discourage aspiration in the UK where the wealthiest are already 50 per cent more likely to aim to go to university than the poorest.

Michael Pullinger Editor (Acting)

Reformer of the week

Mike Leigh, who releases a new film “Happy Go Lucky” next week, has called for passion and conviction to replace the “prescriptive and formulaic” approach of the national curriculum. He said: “I’m vehemently opposed to the national curriculum or anything that is a prescriptive, formulaic attitude to teaching.”

Reactionary of the week

Instead of focusing on Italy’s gross debt of 104 per cent of GDP, the largest in Europe, Silvio Berlusconi, the Italian opposition leader has turned his attention to his opponents’ looks saying: “The left has no taste, not even when it comes to women. As for [our women candidates] being more beautiful, I say that because in parliament they have no competition.”

Good week for

Closing the education gap

There is further evidence that the educational maintenance allowance (EMA) that pays people to stay on at school post 16 is increasing participation. This follows an IFS report which suggested the EMA had increased participation in target groups by 6 per cent. This is a small step towards addressing the social divide where 55 per cent of poorest want to go to university as opposed to 78 per cent of the wealthiest identified by the British Market Research Bureau. Reform’s paper on “Shifting the unequal state: From public apathy to personal capability” will examine a new approach.

Academies

The Financial Times reports plans to increase academy openings each year from 55 to 70. David Cameron has suggested that children who are excluded from school should not be allowed an independent appeal after their exclusion, as recommended in Reform’s report Academies: A model education? as key to further unlocking the model.

Rail travellers

The Association of Train Operating Companies has published a vision for the network in 2057, by which time it is predicted that the number of passengers will have more than trebled. This increase in demand presents an opportunity for rail providers to offer better value for money for the tax payer and the passenger from a reliable and comprehensive service. Effective regulation will be critical.

. Bad week for

NHS safety

The number of complaints against the NHS, according to the Healthcare Commission, rose last year, while injuries to healthcare workers cost the NHS £235 million in the three years to April 2007. Another report found that the UK has one of the worst safety records for fertility services in Europe. This is all despite a near doubling in health spending from 1999- 2008. A new approach is needed that reorients the service towards its users and makes full use of choice and competition to drive improvements.

Hard working families

The abolition of the 10 pence tax band has drawn criticism from MPs including John McFall, Treasury Select Committee Chairman, and commentators such as Polly Toynbee who said: “We who inquired about this after Brown's last budget were too easily fobbed off with apparent evidence it would affect few people – but there are 5.3 million low-paid childless losers.” Low earners incomes will fall as the cost of living rises in what the Times is calling the “consumer crunch”. The UK already has one of the worst poverty traps in the OECD and the change will only further disincentivise work and aspiration.

Monetary policy

Abbey National became the last lender to withdraw its 100 per cent mortgage from the market, and there were predictions of house prices falling by between 10 per cent (IMF) and 30 per cent (Times.) As LIBOR diverges from the Bank of England interest rate, it appears that traditional monetary policy solutions may no longer be fully functional in today’s markets.

Quote of the week

“The truth is that no modern politicians want to talk about the great issues, confining themselves instead to generalities and banalities, management speak and bland calls or promises of improved administration. They simply end up looking a little empty” (Norman Tebbit).