Cameron criticised by Police

One of Britain’s most senior police officers has defended forces’ handling of the riots and dismissed the role of politicians as an “irrelevance” in bringing them under control. Sir Hugh Orde, president of the Association of Chief Police Officers, spoke out hours after David Cameron told MPs that “far too few” officers had initially been deployed. He told the BBC’s Newsnight programme that police had learned from and reacted quickly to the disorder. Sir Hugh derided the eventual decisions of top politicians including Prime Minister David Cameron and Home Secretary Theresa May to cut short their holidays to return during the crisis. “The fact that politicians chose to come back is an irrelevance in terms of the tactics that were by then developing,” he said. “The more robust policing tactics you saw were not a function of political interference; they were a function of the numbers being available to allow the chief constables to change their tactics.” Asked if budget cuts would reduce public safety, he said it would “inevitably” lead to fewer police officers – and therefore make the job more difficult. “We need to have some very honest conversations with Government about what we stop doing if we are to maintain front line service delivery at current levels,” he said. – Telegraph

David Cameron is on a collision course with the police after the government used an emergency Commons debate on the English riots to issue a point-by-point dissection of the police’s “insufficient” tactics during the week. The prime minister praised the bravery of the police but said they had made a major miscalculation when violence first erupted in Tottenham on Saturday night after a demonstration over the shooting of Mark Duggan. Cameron said: “Police chiefs have been frank with me about why this happened. Initially the police treated the situation too much as a public order issue – rather than essentially one of crime. The truth is that the police have been facing a new and unique challenge with different people doing the same thing – basically looting – in different places all at the same time.” But a few hours later, home secretary Theresa May, who opened the lengthy Commons debate on the riots on Thursday, warned that the failure of the police to contain violence in the early part of the week jeopardised a core British tradition. – the Guardian

A man of old fashioned values: Richard Mannington Bowes, 68, dies after defending his neighbourhood

Richard Mannington Bowes was pictured lying face down in a pool of blood after being attacked on Monday while trying to stop youths setting fire to large rubbish bins across the green from the flat where he lived alone. This morning a 22-year-old man was arrested on suspicion of his murder. Yesterday it emerged that Mr Mannington Bowes was a recluse who was tormented by youths repeatedly urinating and throwing litter in the street outside his home. He was placed on a life support machine but from the outset his condition was so serious that doctors did not believe he would pull through. His estranged sister travelled down from her home in Derby yesterday, for a chance to say goodbye. Police described the former accountant as “reclusive and private” and said it had taken two days to work out his identity because he had cut himself off from the world since his retirement. The 68-year-old, originally from Bournemouth, had lived alone in a flat overlooking Ealing’s Haven Green in west London for more than 10 years and had no mobile telephone or landline. Neighbours said he was a man of “old-fashioned values” and had a history of confronting anti-social behaviour in the area, regularly reprimanding youths for littering in the alley outside his flat. – the Telegraph

More powers? Less cuts

Ministers and the security services are planning draconian powers to shut down or disrupt mobile phone messaging services and social networks in times of civil disorder. Downing Street sources said they were considering the “moral and technical” questions of how to grant new powers blocking all mobile communications to prevent rioters organising through websites such as Twitter and the BlackBerry Messenger service. David Cameron said “nothing should be off the table” in efforts to prevent a repeat of this week’s rioting in London and cities across England. He also spoke out about how “free flow of information… can also be used for ill”. The new powers prompted politicians, social media companies and civil liberties campaigners to warn against a “knee-jerk” response that could infringe the freedom of expression and business of law-abiding web users. Privately, senior police officers also expressed doubt that the measure would have anything more than a “marginal effect” on preventing disorder and said the real issue was the numbers of officers on the streets. The president of the Association of Chief Police Officers, Sir Hugh Orde, has also warned in The Independent that “to suggest human rights get in the way of effective policing is simply wrong”. – the Independent

Olympic ambassador reported by mother

An Olympics ambassador allegedly hurled bricks at a police car in a frenzied attack during the London riots that forced officers to flee. Chelsea Ives, 18, also took part in attacks on mobile phone stores in Enfield, north London, on Sunday night, Westminster magistrates court heard. Ives, who has met London mayor Boris Johnson and London Olympics chief Sebastian Coe and visited the House of Commons, was reported to the police by her mother Adrienne, who said she saw her throwing bricks at a police car on a BBC news report. The teenager, whose lawyer described her as a “talented sportswoman”, boasted that she was having “the best day ever”, the court heard. Prosecutor Becky Owen said Ives had led an attack on a Vodafone store. “She was first to pick up masonry and hurl it at the window,” she told the court. The court also heard Ives took part in an attack on Phones4U. – the Guardian

Cameron under pressure to rethink police cuts

David Cameron is facing growing cabinet pressure to rethink the coalition’s policing cuts in the wake of the deaths of three youngBirmingham men, who were hit by a car during violent disturbances in the city. As the Police Federation warned of a “catastrophe” if similar riots erupted after the cuts were introduced, a senior government source said the Home Office would be advised to take a fresh look at its plans to cut £2bn from police funding over the next few years. “The optics have changed,” the source told the Guardian. Cameron said the cuts would not lead to a “reduction in visible policing”. He is expected to announce some emergency funding when he addresses the Commons on Thursday, to cover the extra costs of policing this week’s riots, as well as the possibility of insurance claims against police on the grounds they provided no protection to businesses in a riot. But there are fears in Whitehall that the Home Office plan to make savings in the police service could leave an “exposed flank” in any future riots. London‘s mayor Boris Johnson warned the government against cutting numbers. “The case was always pretty frail and it’s been substantially weakened. This is not the time to think about making substantial cuts in police numbers,” he told BBC Radio 4’s Today programme. – the Guardian

David Cameron appeared increasingly isolated last night after senior police officers, MPs and even the Conservative Mayor of London united in a call for him to reconsider police cuts in the face of four days of sustained rioting. In an attempt to regain the political initiative the Prime Minister had declared that a police “fightback” was under way, and that water cannon were being made available at 24 hours’ notice. But senior police chiefs said these would be ineffectual and the real question was not whether they could cope with the current disturbances, but whether they would be able to deal with similar civil disturbances in future with thousands fewer officers. The Mayor of London, Boris Johnson, defied Mr Cameron’s position and openly criticised the plan for 20 per cent cuts in police budgets. “The case was always pretty frail and it has been substantially weakened,” he said. “This is not a time to think about making substantial cuts in police numbers.” – the Independent

Parliament returns to debate riots

The Prime Minister will use an emergency Commons debate to set out plans to ensure that people have confidence in the justice system. He will say that severe punishments will be meted out to those responsible for the destruction and robbery of the past five days. He backs plans to ensure that council tenants found guilty of taking part in the mayhem will be evicted. Ministers are redrafting consultation documents to ensure that councils get those powers. Some councils, including Greenwich and Hammersmith and Fulham in London and Salford in Manchester, announced yesterday that they were already pushing ahead with the measure. Grant Shapps, the housing minister, was tightening the law to make sure that even if a rioter was convicted of a crime outside their borough they could lose their council home — something that is not possible at the moment. “Criminal or anti-social behaviour in the local neighbourhood by a tenant or a member of their family can provide grounds for eviction,” he said. “The Government is looking to strengthen those powers and so anyone involved in the unrest should stop and think about the long-term impact that their actions will have on the rest of their lives.” – the Telegraph

An emergency session of Parliament will be held today to discuss the rioting and looting which has caused devastation across England and left three men who attempted to protect their community from the violence dead. MPs have been recalled to the Commons by Prime Minister David Cameron who yesterday declared a fightback against those responsible for causing widespread destruction during four nights of unrest in towns and cities up and down the country. Mr Cameron will today make a statement to Parliament in which he is expected to spell out further plans to deal with the disorder and compensate riot-damaged businesses. He will also chair another meeting of the Government’s Cobra emergency committee and discuss the rioting with fellow Cabinet members. – the Independent

King warns of “headwinds”

Sir Mervyn King warned that the headwinds facing Britain’s fragile economic recovery were becoming “stronger by the day”, as the Bank of England cut its growth forecasts. City analysts predicted that interest rates would remain at their record low of 0.5% until 2013, after the governor used his quarterly inflation report briefing to warn that the UK could not be isolated from the turmoil in the global economy. As George Osborne, the chancellor, prepared to address the House of Commons on Thursday on the risks for the UK from the mayhem in world financial markets, the Bank’s nine-member monetary policy committee (MPC) downgraded its growth forecast to about 1.5% this year. That was down from 1.8% in its last report three months ago, and weaker than the 1.7% pencilled in by the Office for Budget Responsibility. King warned that the Bank’s number-crunchers had not included in their forecasts what he called “the unimaginable and the unmentionable” – risks impossible to quantify, such as a full-blown sovereign debt crisis in the eurozone. “It is very important that we do not see the development of a sovereign debt crisis.” – the Guardian

Riots spread across the country

Officers fought disturbances in Manchester and Birmingham, involving hundreds of youths who set fire to shops and smashed store windows. There were also riots in Gloucester. The Army’s emergency infantry battalion, known as the Spearhead Lead Element, has been put on standby should the civil unrest worsen, The Daily Telegraph has learned. In Birmingham, police clashed with up to 200 looters who attacked shops inside New Street station, closing off much of the city centre. Masked youths roamed the streets smashing windows and setting fire to cars. In Manchester, hundreds of masked and hooded youths gathered in Piccadilly Gardens and threw bricks at officers. A Miss Selfridge clothes shop was set alight while looters broke into a Foot Locker sports store in the Arndale Centre. Some reports said rioters were being allowed to ransack properties without police intervening. Residents claimed gangs were highly organised, with leaders warning them when to move on to avoid officers. – the Telegraph

Three men are reported dead in Birmingham after a car ploughed into a group of Asian men in Birmingham. The attack, which is being treated as a murder investigation, took place as there were more riots across England, although London remained largely calm thanks to a big increase in police numbers. Police confronted masked youths in Manchester, in what the city’s Chief Inspector called “extraordinary levels of violence”. In the West Midlands 87 people were arrested, while 44 were held in Liverpool and Nottingham saw a police station firebombed. Speaking to the BBC this morning, Labour leader Ed Milband said there were “complex” causes for the violence, but maintained there was “no excuse” for vandalism. – PoliticsHome

Three men killed in Birmingham

A murder investigation has been launched after three were killed and one critically injured in a road traffic collision in Birmingham, West Midlands Police said. The men were pedestrians hit by a car in the Winson Green area of the city at 1am, according to reports. Police said one man had been arrested in connection with the deaths and a car had been recovered. It is not yet known if the deaths are linked to overnight rioting in the area. A spokesman for West Midlands Police said: “Two men have died following a road traffic collision in the Winson Green area of Birmingham which detectives are treating as murder. “The incident occurred just after 1am in Dudley Road. Three men were taken to hospital where two subsequently died from their injuries. A third male remains in a critical condition. “West Midlands Police have launched a murder inquiry, arrested one man in connection with the incident and recovered a vehicle from near the scene which will be examined by forensics experts.” – the Telegraph

Osbornomics: keep calm and carry on…

George Osborne will insist that the government is sticking to its tough deficit-reduction programme when he updates MPs tomorrow about the turmoil in the global economy. Treasury sources said the chancellor intends to reassure the Commons that the UK authorities will be increasing their vigilance over the country’s banks and ensuring that contingency plans are in place to cope with the effects of a new credit crunch. In the aftermath of disappointing official figures for manufacturing and exports released on Tuesday, Osborne will also make it clear that the coalition intends to reform the supply side of Britain’s economy to boost growth. “The chancellor will give parliament an update on what has happened, on the discussions he has had and what we need to do domestically, internationally and in terms of contingency planning”, the source said. – the Guardian

US fears double-dip recession

The US Federal Reserve promised to keep interest rates in the world’s largest economy at rock-bottom levels well into 2013, in a signal that it is increasingly worried about a double-dip recession. The central bank’s declaration cheered investors who had been selling stocks relentlessly for the best part of a week, fearful that policy makers on both sides of the Atlantic have run out of ammunition to stimulate faltering economies. A big rally on Wall Street was the result, with the Dow Jones Industrial Average of US shares recovering 430 of the 635 points it lost in the previous session. The Fed has held official US interest rates at zero since December 2008, but yesterday was the first time it has set a timeline for keeping monetary policy that easy, and it had immediate effects across the financial markets. Interest rates on some US government bonds, whose rise and fall is reflected in borrowing costs for millions of American homebuyers and businesses, crashed to never-before-seen lows. – the Independent

Cameron and Boris return… finally

Prime Minister David Cameron has cut short his holiday in Tuscany to chair a Cobra emergency meeting at 9am this morning in Downing Street following a third consecutive night of violence in London. Mayor Boris Johnson is also on his way back to help take charge of the situation. Home Secretary Theresa May said the authorities “can bring an end to this” through “robust policing” and promised that those responsible would be brought to justice. She added that over 450 people had been arrested after looters and police clashed all over the capital, as well as a “significant number” in Birmingham, where looting also took place. There was also violence in Liverpool and Bristol. There have been numerous complaints about the police’s response, with Clapham Junction in south London singled out as an area where police were particularly slow to react. Reports showed that looters were able to attack the Debenham’s store for over two hours before order was restored. London’s Deputy Mayor for policing, Kit Malthouse, admitted to the BBC that police had been “incredibly stretched” and apologised for the slow response in some areas. – PoliticsHome

David Cameron cut short his holiday last night to fly back to Britain to take charge of the response to the wave of riots in London. Following three days of disturbances, he will today chair a meeting of the Government’s emergency Cobra committee after deciding to abandon his summer break at an Italian villa four days early. He will be joined by senior ministers, including the Deputy Prime Minister, Nick Clegg, and the Home Secretary, Theresa May, and police chiefs to co-ordinate action against the wave of lawlessness. Downing Street had earlier stressed that he was in constant touch with Whitehall officials, but his surprise decision to come back underlines the gravity with which the crisis is being treated within the Government. The Prime Minister’s move came hours after Boris Johnson, the Mayor of London, bowed to criticism and scrapped his holiday in Canada to return. Senior government sources had earlier expressed incredulity that Mr Johnson had chosen to remain on vacation in British Columbia when Ms May returned early from her break in Switzerland. Tellingly, neither Mr Cameron nor Ms May spoke to the Mayor in their rounds of calls to discuss the disturbances. “There was a strong feeling that he should have announced he was coming back sooner,” said a senior source in No 10. – the Independent

Violence spreads to Birmingham

Shop windows were smashed and furniture hurled at officers after a social media campaign was started yesterday afternoon urging people to copy events in London. As an estimated 200 youths, many of them hooded or masked, congregated, West Midlands police put up a half-mile exclusion zone around the Bullring shopping centre, which shut early at 6.40pm. They also blocked entry into Pallisades shopping centre above New Street station. Shoppers fled as what started as a peaceful gathering quickly turned ugly. Onlookers described thugs running with knives through New Street and one photographer was set upon by a group who beat him and stole his camera. – the Telegraph

Shares take dramatic tumble

In the first trading since the decision by the Standard & Poor’s ratings agency to strip the US of its AAA credit rating, shares on Wall Street recorded one of their worst one-day falls ever. Last night the Dow Jones Industrial Average closed down 635 points – 5.6 per cent – at 10,810 after a day of relentless selling. The index has fallen by more points on only five occasions. In London, the FTSE-100 index ended lower for the seventh day in a row, and has now lost over 800 points, or 13.7 per cent. By contrast gold, a traditional safe haven in troubled times, hit yet another all-time high, at over $1,700 an ounce. London shares are at their lowest since July 2010, just after George Osborne’s emergency Budget… The Bank of England is due to reveal its latest forecasts for inflation and growth tomorrow. It is expected to follow the Office for Budget Responsibility in admitting that its projections have not been borne out by reality. – the Independent

Clegg told to distance himself from Tories

Nick Clegg will face calls from senior Liberal Democrats to get “back to basics” and distance himself far more from David Cameron and the Conservatives over the coming month. Tim Farron, the party’s president, is expected to use the annual conference in September to warn the leadership that it needs to help members “hold [their] heads up high” and bring in policies to entice back the voters who have deserted the party. Liberal Democrats yesterday began to outline the policies they will put forward at the next election to put “clear orange water” between the Coalition parties. These include a comprehensive review of taxation policy – with proposals for a new “land tax” on the rich as well as major initiatives on criminal justice, immigration and political reform. – the Independent

London riots spread

More than 100 people have been arrested after bouts of rioting and looting broke out across London overnight. Emergency services were deployed to respond to “copycat criminal activity” across the capital late last night and early this morning, after trouble flared in Tottenham, north London, Scotland Yard said. Disturbances erupted in several boroughs in north, south and east London, with reports of trouble in Brixton, Enfield, Walthamstow and Islington. A Metropolitan Police spokesman said at least nine officers were injured, including three who were taken to hospital after being hit by a fast-moving vehicle at 12.45am. The officers had been in the process of making arrests in Chingford Mount, Waltham Forest, after a shop was looted by youths. Police said 16 people have been charged with offences in relation to the disorder, including burglary, theft, and violent disorder. Metropolitan Police Commander Christine Jones said officers were “shocked” at the level of violence directed towards them. She said: “Officers responding to sporadic disorder in a number of boroughs made more than 100 arrests throughout last night and early this morning. – the Independent

There was mounting evidence on Sunday night that some of the second night of rioting in London was part of an orchestrated plan, as violent disturbances broke out sporadically across parts of the capital. Police in riot gear were deployed across the city to deal with trouble in Enfield, six miles north of the site of riots in Tottenham, while looters later pillaged shops in Brixton. The scenes in Enfield, while reminiscent of Saturday night’s clashes, were smaller in scale, and they took place from about 7pm. Teenagers gathered on St Andrews Road – said to have been a preplanned destination – broke down walls on terraced streets so they could collect bricks to throw at police. About a dozen shops were ransacked and a police car smashed on Church Street. Riot police moved in to secure the area and train station. Shortly after 8.30pm, a crowd of about 100 mainly teenage boys broke into a jewellery store. When police arrived less than a minute later, there were chaotic scenes, with a number of people struck with batons and attacked by dogs. Resident Mizu Rahman, 34, said a plainclothes police officer had told him at around 2pm that there was intelligence that disorder was imminent. – the Guardian

ECB moves to avert crisis

The European Central Bank said on Sunday it would “actively implement” its bond-buying programme to fight the eurozone’s debt crisis, signalling it could start buying Spanish and Italian government bonds. The central bank welcomed new deficit reduction measures and economic reforms by Italy and Spain as well as a Franco-German pledge that the eurozone’s rescue fund will take responsibility for bond-buying once it is operational, probably in October. “It is on the basis of the above assessments that the ECB will actively implement its Securities Markets Programme,” the ECB said in a statement. It is understood ECB President Jean-Claude Trichet had been trying to extract an agreement from ECB members to buy Italian paper before Asian markets opened this morning. Some economists said last night the ECB’s move could improve Italian and Spanish bond yields by between 1pc and 1.5pc when they open this morning. – the Telegraph

The European Central Bank has moved to halt Europe’s runaway debt crisis by pledging to buy government bonds from Italy and Spain. The move to prop up Europe’s struggling nations came after a day of frantic discussions between the finance ministers of the world’s leading economies. Markets open for the first time since Standard & Poor’s decision to cut the US’s credit rating from AAA late on Friday. In a statement, the ECB said it welcomed announcements by Spain and Italy of “new measures and reforms” aimed at the financial problems and urged both governments to roll them out swiftly. The agreement of the bank’s policy-making governing council is a watershed moment for the ECB. The central bank has so far insisted that the main responsibility for acting lies with national governments. But last week a more modest bond buying effort failed to halt the European slide. The ECB said it had taken note of a statement by France and Germany released on Sunday stressing their commitment to European financial reforms. Silvio Berlusconi’s government cobbled together an emergency austerity package for Italy late on Friday to placate the bond markets. Italy’s borrowing costs shot up last week amid fears that its debts have become unsustainable. – the Guardian

NHS – second most cost effective health system in the developed world

The NHS is one of the most cost-effective health systems in the developed world, according to a study (pdf) published in the Journal of the Royal Society of Medicine. The “surprising” findings show the NHS saving more lives for each pound spent as a proportion of national wealth than any other country apart from Ireland over 25 years. Among the 17 countries considered, the United States healthcare system was among the least efficient and effective. Researchers said that this contradicted assertions by the health secretary, Andrew Lansley, that the NHS needed competition and choice to become more efficient. “The government proposals to change the NHS are largely based on the idea that the NHS is less efficient and effective than other countries, especially the US,” said Professor Colin Pritchard, of Bournemouth University, who analysed a quarter of a century’s data from 1980. “The results question why we need a big set of health reform proposals … The system works well. Look at the US and you can see where choice and competition gets you. Pretty dismal results.” – the Guardian

Forces “capability gap” revealed by minister

Armed forces minister Nick Harvey has admitted that the armed forces face “capability gaps” in the medium term due to stringent cuts. His remarks came after Defence Secretary Liam Fox denied that cuts to the armed forces would lessen Britain’s influence in the world. The Defence Select Committee warned that politicians risked “failing” the military. In a blow to David Cameron, the committee said it rejected the Prime Minister’s assurance that Britain retained a “full spectrum” defence capability. Committee Chair James Arbuthnot said that there were “real worries” that cuts jeopardise Britain’s international influence, and claimed that Coalition plans were not in line with promises made in opposition to “bring our resources in line with our commitments”. Dr Fox said that the cuts were necessary to ensure future investment. – PoliticsHome

The cuts also jeopardise national security and reduce the country’s international influence, they say. The loss of aircraft carriers, planes and 30,000 front-line troops has meant the Armed Forces are struggling to do “all that is asked of them”, a critical report finds. There is “mounting concern” that the military has fallen below the “minimum utility” needed to conduct present and future operations, says the defence select committee. The MPs suggest that the Government sacrificed national security to make savings. In a personal attack on David Cameron, they dispute the Prime Minister’s claim that the military could still carry out the “full spectrum” of warfare after last year’s defence review. – the Telegraph

It remains unclear as to how the SDSR’s seven military tasks and the Defence Planning Assumptions that underpin them can be aligned with decisions such as those on the Aircraft Carriers and Nimrod MRA . Quite clearly the need for savings over-rode the capability requirements of the Armed Forces. The justification, with some reason, was that our primary strategic security threat is the need to deliver the financial security of our country –without fixing the deficit we wouldn’t have a country worth saving.  Nevertheless, notwithstanding the tough decisions made in the SDSR, if we are not to be cut short we need to see greater clarity on how the gap will be filled in the next spending period and how the capabilities recently lost will be regenerated. – ConservativeHome

Ed goes to war

Ed Miliband is facing a tense battle with trade union leaders after tabling plans to lessen their influence within the Labour party, by reducing their voting power at party conference to below 50% and diluting their sway over leadership elections. The move, revealed to the Guardian by union sources, is part of a plan to democratise the party and make union general secretaries more accountable. It will face stiff opposition because unions see it as an attempt to weaken their historic links to Labour. Discussions about the proposals, part of the Refounding Labour project, will come to a head in the next month before the annual party conference opens in Liverpool on 25 September. The plans are likely to especially rankle with unions since it was their support that helped the younger Miliband defeat his brother David in the Labour leadership election. Miliband has told the unions that he is not going to back down on his plans to make the party more democratic, and maintains that to do so will require changes to Labour’s internal democracy and the role that unions play. – the Guardian

The Labour leader is expected to deliver an ultimatum to union general secretaries, telling them they will have less sway in leadership elections and at the party conference. The move is part of Mr Miliband’s drive to make the party more democratic and union leaders more accountable, and will come to a head at the Party conference next month. However, it is likely to be met with fierce opposition from the unions who will see it as an attempt to diminish their historic links to the party. It will also be seen as a betrayal as it was the unions that secured Mr Miliband’s victory over his brother David in the Labour leadership race. Under the plans, union leaders would have their voting power at the Labour conference cut down to less than 50 per cent. – the Telegraph

Watson – the man, the myth, the legend

A month ago, Tom Watson received word that the Guardian was about to expose the hacking of Milly Dowler’s phone by the News of the World. With 72 hours to go, he cleared his diary; a few days later, he was averaging three hours sleep a night, as he and his staff picked through leaked documents, newspaper archives, personal testimony from phone-hacking victims, and more. As the MP who had been obsessively trying to cut through the murk surrounding News International for two years, he well knew that the most dramatic chapter in the two-year phone-hacking saga had arrived – and the imperative now was to work harder than ever. So how have the last few weeks been? “Sleep-deprived, totally crazy,” he says, sitting in his parliamentary office during what seems to be a rare moment of calm. “But also, there’s been a great sense of relief. I think I said something to David Cameron about a month before: that there were powerful forces trying to cover this story up. At some points over the last two years, I thought it might blow. But I’ve also thought that the lid could be welded back on. But when Nick Davies broke the Milly Dowler story, that was the point where I knew they’d never get the lid back on.” – the Guardian

Osborne needs answers now

Bad economic news bombarded the Treasury on Monday as new International Monetary Fund forecasts cast doubt on the chancellor’s deficit reduction plan, while near-term indicators suggested the recovery was losing the little momentum it had. The IMF judged that Britain’s economy had less capacity to grow quickly over the next few years than the government had hoped, slowing the reduction in borrowing to the point where it comes within a whisker of missing George Osborne’s main fiscal target. – FT

In a comprehensive analysis of the state of the British economy, the economic watchdog said that, between them, families would have £35 billion less disposable income due to the Government’s attempts to tackle the deficit. In addition, a fall in the value of houses would wipe off more than a tenth of their “tangible” wealth in real terms by 2016, the IMF said in its report. The forecast for household finances came amid a growing political row about recent slow growth. George Osborne has come under pressure from David Cameron to come up with new ways to stimulate the economy. – the Telegraph

The UK faces a “bumpy and uneven” economic recovery, with families £1,500 a year worse off, the International Monetary Fund has warned. A report from the organisation backs the Coalition’s fiscal policies, but said the Government must be ready to change course if growth and inflation figures do not improve. Deficit reduction plans will leave households with £35 billion less in disposable income, with falls in house prices cutting 12% from their “tangible wealth”. –PoliticsHome

Local authorities forced to make council tax benefit cuts

Town halls are to be forced to take charge of drastic cuts to the £5billion paid out each year in council tax benefits. Amid claims local authorities are standing by as the system is defrauded and claimants languish on the dole, ministers will today announce they are handing them responsibility for the payments. Local Government Secretary Eric Pickles says councils will have to determine who is eligible for the benefit – currently administered by the Work and Pensions Department – which is given to low-income households to help them with the cost of council tax. Pensioners will be protected against any reduction, but many working-age claimants are likely to face cuts. – The Mail

Miliband brings in Allen to review party structure

Charles Allen, the former chief executive of ITV and chairman of EMI, is to oversee a management and commercial review of the Labour party asEd Miliband moves to underline his pro-business credentials. The Labour leader said that Allen, a longstanding supporter, will bring huge experience to the rebuilding of the party. Allen, who was recruited to EMI by financier Guy Hands, said: “I am delighted to be asked to conduct this review and to play my part in developing a strong and effective party, built on the foundations of strong grassroots support.” The appointment of Allen, who will work on a voluntary part-time basis at Labour headquarters, is the second significant appointment by Miliband in recent weeks after the arrival of Iain McNichol, the former GMB national policy officer, as general secretary. McNichol said: “Charles is a longstanding supporter and friend of the Labour party, as well as an experienced and successful businessman. His expertise in both private and public sectors will help us to build the stronger organisation Ed and I want to see.” – the Guardian

Big Society? Charities in decline

More than 2,000 charities are being forced to close services and sack staff as local authorities slash their funding, or in some cases completely withdraw it, according to research published on Tuesday. The study – based on 265 freedom-of-information responses from local councils across England and obtained by the union-backed anti-cuts campaign False Economy – reveals the scale of the impact that cuts are having on the charitable sector. Birmingham city council has cut funding to the largest number of charities, with more than 190 organisations losing out, followed by the cross-council organisation London Councils, which has cut funding to 174 groups. Many charities will see their funding cut by half while others will lose entire budgets. The hardest hit include children’s and young-people charities, with more than 380 organisations hit. Another 150 disability, 142 elderly and more than 110 adult care charities are also affected. – the Guardian