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Monday News Review

04/07/2011, 06:04:55 AM

A care revolution

The Dilnot Report will suggest an overhaul to the system which is intended to benefit Britain’s ageing population. Under the current system elderly people only start to receive state support when they are down to the last £23,250 of their assets. People would instead pay up to a capped amount – expected to be around £35,000 – before state-funding kicks in. It’s possible that a tax rise or further cuts in public spending would be necessary to pay for this. Estimates suggest the proposals would cost the Treasury £2bn at the start before rising further. Experts estimate that a maximum liability of £50,000 could be insured for a one-off premium of around £17,000 on retirement. The report has partly sought to make clearer the burden of cost facing the elderly so people can prepare and save for it during their working life. Charities working with elderly and vulnerable people have cautiously welcomed the report and suggest changes are long overdue. The Labour leader Ed Miliband has publicly offered to hold talks with the Prime Minister to achieve cross-party agreement on the proposals. The government is not expected to make any changes immediately, instead weighing up the best course of action and deciding who will pay and how. The current system of support for the elderly is widely regarded as a lottery, as one quarter of 65-year-olds will not need to spend significant sums on care, while another quarter will face bills of more than £50,000 and one in 10 – often those who spend long periods in residential homes suffering from dementia – will have extensive needs costing more than £100,000. Some 20,000 people a year are thought to sell their homes to pay for care. – Sky News

A long-awaited shake-up of the way elderly people contribute to their care home bills will be announced today. The report is expected to recommend OAPs should pay no more than £50,000 towards their stay. The Treasury would pick up the rest of the bill – meaning fewer people will be forced to sell their homes. Care would remain free for those with very few savings or assets. But millions of people will be urged to take out insurance costing up to £17,000 to cover care fees. The measures drawn up by Andrew Dilnot are seen by many as the last best hope to pay for our growing elderly population. Health Secretary Andrew Lansley yesterday signalled the measures could come into force by the end of Parliament in 2015. But there are fears the £2billion-a-year cost of the plans could see Chancellor George Osborne strangle the proposals at birth. Labour leader Ed Miliband said: “The last thing Britain needs is for Andrew Dilnot’s proposals to be put into the long grass. We three party leaders are of similar age and the same generation. This is a once-in-a-generation opportunity which our generation must address.” – Daily Mirror

Local councils are poised to take on a major financial services role under proposed reforms to be unveiled on Monday of the funding system for the care of elderly and disabled people. Under the scheme, local authorities will be empowered to make a loan at a preferential rate against the value of a property owned by someone entering a care home. The loan would be redeemed on the sale of the property after the person dies. The plan is part of a series of ideas drawn up by a government commission led by the economist Andrew Dilnot. The proposals seek to inject more funding into the care system by tapping into people’s assets. The typical 55- to 64-year-old in the UK has a total wealth of £200,000. Although the centrepiece of Dilnot’s report will be a recommended cap of about £35,000 on individual liability for care costs, which would require underwriting by the government, other proposals will seek to make it easier for people to draw on their assets without having to sell their home during their lifetime. According to the Joseph Rowntree Foundation, about a million elderly homeowners have properties worth more than £100,000 yet qualify for means-tested benefits. Charities and welfare groups are calling on the government and Labour to seize the opportunity presented by Dilnot to begin a shakeup of the care funding system. An open letter from 26 leading charities declared on Sunday: “We expect all parties to deliver on this.” Ed Miliband, the Labour leader, has reiterated his offer to engage in cross-party talks on the Dilnot proposals with an “open mind”, setting aside his party’s previous policy of a national care service. – the Guardian

Goldsmith gloats

Ed Miliband’s faltering leadership suffered a fresh blow yesterday as a close ally of Tony Blair warned it was ‘not clear what he stands for’. Former Attorney General Lord Goldsmith launched a withering attack on the Labour leader, warning that nine months after his election he still has to ‘prove himself’. He said the party’s Blairites were ‘standing back’ to give Mr Miliband a chance. But asked whether the Labour leader was connecting with the public said: ‘He doesn’t at the moment. It is not clear what he stands for.’ Shadow Home Secretary Yvette Cooper – seen by many at Westminster as a future Labour leader – yesterday insisted that Mr Miliband’s leadership was not ‘faltering’. She said he was doing a ‘good job’ but urged critics to give him more time to impose himself and connect with the public in the wake of last year’s election defeat. Lord Goldsmith’s intervention came amid reports that the Blairite, ex-Cabinet minister James Purnell was being urged to return to Parliament to help rescue Labour from the leftwards drift seen under Mr Miliband. – Daily Mail

Lord Goldsmith suggested Mr Miliband was harming Labour by excluding major figures from the Blairite wing of the party. He named former minister James Purnell, who quit as an MP last year, as a “loss” and “potentially a very important figure in the party”. It came amid reports that Mr Purnell – who quit the Cabinet in 2009 in a failed bid to oust Gordon Brown and now heads a think tank – is being urged by figures close to Mr Blair to return to Westminster to stave off another election defeat. Lord Goldsmith, who was Attorney General under Tony Blair, said he did not believe the rifts had been healed between Left wingers seen as loyal to Mr Brown – such as Mr Miliband – and those from Mr Blair’s camp. “I think people are standing back, letting Ed Miliband have an opportunity to prove that he can do it – and that, at the end of the day, is what matters,” he told Sky News’s Murnaghan programme. Asked if the Labour leader was connecting with voters, he replied: “He doesn’t at the moment. It is not clear what he stands for.” The question, he said, was whether Ed Miliband had healed the Blair-Brown split and “whether there are enough Blair heavy hitters in his shadow cabinet”. He went on: “I think many of us would like to see more of them back. There are very powerful figures still able to help Ed Miliband and they are being excluded and that is a problem.’’ – Daily Express

Huhne under increased pressure as son’s phone becomes evidence

Chris Huhne’s former marital home has been raided as part of a police investigation into allegations he persuaded his wife to take responsibility for a speeding offence that he had committed so he could avoid a driving ban. Officers from the Kent and Essex Serious Crime Directorate visited the home in Clapham, south London, where the Energy Secretary’s former wife, economist Vicky Pryce, lives. They confiscated the mobile phone of the pair’s son, Peter, 18. The phone is alleged to contain an exchange of text messages between Mr Huhne and his son in which the pair discuss the investigation into the March 2003 speeding offence. – the Independent

Pressure was mounting on Chris Huhne last night after it emerged that police raided his ex-wife’s home and seized his son’s mobile phone. The Cabinet minister is fighting for his political career over claims he persuaded Vicky Pryce to accept a speeding conviction on his behalf. Detectives with a search warrant raided Ms Pryce’s £2million home at 7am, woke 18-year-old Peter and asked him to hand over the mobile, which reportedly contained a text message exchange in which the pair discuss details of the case. Energy Secretary Mr Huhne currently has the backing of Lib Dem leader Nick Clegg but insiders say patience is running out due to the constant trickle of stories about him. Ms Pryce, 57, told friends of her shock when the three Essex Police officers turned up unannounced at her South London home. Mr Huhne, 56, denies persuading her to take three points for him but a photograph of her licence shows an endorsement for speeding on March 12, 2003 – the date his car was allegedly caught on camera. Relations between the couple broke down when he left her for media consultant Carina Trimingham last year. – Daily Mirror

It’s that lady again

Voters rate Margaret Thatcher the most capable Prime Minister of recent decades, but Tony Blair was the most likeable, according to a poll. Only ten per cent regarded David Cameron the most capable and 17 per cent the most likeable. Current Conservative voters overwhelmingly preferred Lady Thatcher, with two-thirds saying she was the most capable compared with one-fifth for Cameron. Overall, 36 per cent of those questioned said Thatcher – Tory Prime Minister from 1979 to 1990 – was the most capable leader of the past 30 years. She was followed by Mr Blair on 27 per cent, Gordon Brown on 11 per cent, Mr Cameron, ten per cent and Sir John Major, seven per cent. When asked about likeability as a person, some 26 per cent put Mr Blair first, followed by 22 per cent for Lady Thatcher, 17 per cent for Mr Cameron, 13 per cent for Mr Brown and ten per cent for Major. – Daily Mail

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Sunday News Review

03/07/2011, 04:55:45 AM

War on the homeless

Deep-seated concerns within Government over the Chancellor’s plan to cap benefit at £500 a week per family have been laid bare in a leaked letter apparently seen by The Observer newspaper. The letter, from Communities Secretary Eric Pickles’s private secretary to his opposite number in the Prime Minister’s office, will be deeply embarrasing to the coalition. It suggests that the estimated £270m saving from the cap may end up as a net loss, because 40,000 people could be made homeless. In addition, it suggests, half the 56,000 affordable homes the Government expects to be constructed by 2015 will not be built because developers will not be able to recoup enough money from tenants. Both Downing Street and the Communities department have already mounted a damage limitation exercise. A spokesman for Mr Pickles said: “We are fully supportive of all the Government’s policies on benefits. Clearly action is needed to tackle the housing benefit bill which has spiralled to £21bn a year under Labour.” And a Downing Street spokesman said: “The entire Government is behind the policies on welfare and housing benefit. The bill has been growing enormously in recent years and needs to be tackled.” Nonetheless, Labour will seek to capitalise on what it sees as confusion and division at the heart of Government. Shadow work and pensions secretary Liam Byrne is quoted by the newspaper as saying: “We were assured by ministers that costs wouldn’t rise. Now top-level leaks reveal the truth. – Sky News

The warning came in a letter from the private office of Communities Secretary Eric Pickles and appears to reflect deep concern in his Department for Communities and Local Government over the plan to cap total household benefits at £500 a week. Written by Mr Pickles’ private secretary, Nico Heslop, to his opposite number in 10 Downing Street and obtained by The Observer, the letter warns that the estimated £270 million annual savings from the plan could be wiped out by the cost to local authorities of rehousing families who can no longer afford to pay for their accommodation. Far from contributing towards the Government’s deficit reduction programme, the scheme could end up generating a “net cost” to the Exchequer, it says. And it warns that the welfare cuts will put at risk at least half of the 56,000 affordable homes to rent which the Government hopes will be built by 2015, as contractors doubt whether they will be able to recoup their costs from tenants. – Daily Telegraph

In case you did not remember (27.02.2011)

The Tories have a new policy on homelessness: make it illegal. That is the extraordinary intention of a Conservative flagship council. Worse, they want to ban Salvation Army soup kitchens. Westminster city council, the richest and most powerful council in the UK, is proposing a new bye-law to ban rough sleeping and “soup runs” in the Victoria area of London. The proposed new bye-law will make it an offence punishable by a fine to “sleep or lie down”, “deposit materials used as bedding” and to “give out, or permit another to give out, food for free”. If these proposals are passed, they will also prohibit companies with a proud record of corporate social responsibility from doing good things. Companies like Pret a Manger, who have, very quietly, for many years, given away their unsold food to London’s homeless. If the Tories get their way, companies like Pret will be forced to throw the food in the bin. Remember, this is the council of Lady Porter. – Labour Uncut

Jog on jobsworths

Misguided “jobsworths” are preventing children from enjoying traditional playground games through the over-zealous application of health and safety laws, says the watchdog for the legislation. Judith Hackitt, head of the Health and Safety Executive (HSE), accusedschools and councils of using health and safety rules to avoid providing activities that might cost money or expose them to being sued. She said children’s play and education had been damaged, with some playgrounds becoming joyless no-go areas, while science lessons had been hampered by bans on practical experiments. Hackitt warned the HSE would challenge bureaucrats who attribute “daft decisions” to ban innocuous activities to safety rules. Warning that “the gloves are off”, she said the rules were wrongly blamed for decisions to make children wear goggles when playing conkers and ban running at a pancake race. “The creeping culture of risk aversion and fear of litigation … puts at risk our children’s education and preparation for adult life,” she told the Telegraph. “Children today are denied – often on spurious health and safety grounds – many of the formative experiences that shaped my generation. Playgrounds have become joyless, for fear of a few cuts and bruises. Science in the classroom is becoming sterile and uninspiring.” – the Guardian

Education Secretary Michael Gove will today reveal a streamlining of guidance which has hit children’s chances of enjoying activities from science experiments to pancake races. The shake-up, with rules cut from 150 pages to just eight, means teachers will no longer have to fill in lengthy “risk assessment” forms before school visits. Instead teachers will need only to tell parents of a planned activity and give them the chance to withdraw their child rather than fill in a consent form. “Daft” orders which compelled youngsters to wear goggles to play conkers and banned running at pancake races will also be binned. Mr Gove said: “Children should be able to go on exciting school trips that broaden their horizons. That is why we are cutting unnecessary red tape.” Judith Hackitt of the Health and Safety Executive accused schools and council officials of “daft decisions”, often as cover to cut the cost of special activities. She said: “Children are denied – often on spurious health and safety grounds – many formative experiences. Playgrounds have become joyless for fear of a few cuts and bruises. Science in the classroom is becoming sterile and uninspiring.” But teaching union NASUWT said the decision could increase legal action against teachers. – Daily Mirror

Lets find common ground

Last Christmas, I met a lady called Mary Ryan at a party and her story about her mother has haunted me ever since. Paula Ryan was widowed 50 years ago and struggled to bring up her four children as a single parent. She was far too busy to think of her old age. Her priorities were making sure she worked hard to put food on the table and teaching her children the right values. She never asked for help from the State. Mary told me that even though they were poor and entitled to free school dinners, her mother was too proud to let the children have them. In her old age, she could look back with pride on her achievements: four successful children, her own house and savings, a lifetime of doing the right thing. Tragically, this admirable woman was struck down, aged 63, by Alzheimer’s, a condition a quarter of the people reading this will probably develop. As the disease progressed, it became impossible for her to live independently and she moved into a care home. Her children found her somewhere that was nice, although expensive. She was expected to survive between four and seven years. Most people still believe a woman in these circumstances would be cared for by the State. They couldn’t be more wrong. A report published tomorrow will highlight the challenges we face. Currently, if you have housing, savings or income of more than £23,250 in total, you are charged the full cost of your care. Fortunately, Paula Ryan is made of strong stuff and has just celebrated her 80th birthday. Unfortunately, this has meant her children have used up all her savings and had to sell her house. Her care has cost the family more than £300,000. Mary told me her mother would be horrified if she knew the family had spent their inheritance but, naturally, her welfare came before any other consideration. – Emily Thornberry, Daily Mail

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Thursday News Review

30/06/2011, 05:53:38 AM

Strike day

Thousands of furious workers are staging a mass walkout today to fight Government plans to savage their pensions. The strikes by around 750,000 teachers and civil servants will be the biggest day of industrial action since Margaret Thatcher was PM in the 1980s. Hard-pressed staff have already been hit by savage Coalition cutbacks and are incensed over proposals to hammer their pensions. Thousands of schools in England and Wales will be closed today while ports and airports will be disrupted. Driving centres, courts, job centres and even Downing Street will also be affected. Last night Dr Mary Bousted, general secretary of the Association of Teachers and Lecturers, said the Government was morally responsible for the strikes because it was trying to steamroller through unfair changes to pensions and had failed to negotiate. She added: “Deciding to strike is not a decision we take lightly. This is the first time ATL members will be involved in a national strike in our 127 years. – Daily Mirror

The coalition government faces the first industrial uprising against its austerity measures today as up to 750,000 public servants strike over planned changes to their pensions. A third of schools are expected to close and two-thirds of universities have cancelled lectures. Benefits will go unpaid, court cases will be postponed, police leave has been cancelled in London and airports are bracing themselves for backlogs at immigration. Mark Serwotka, leader of the Public and Commercial Services union, said it was the most important strike in his union’s history. “Everything we have ever worked for is under attack,” he added. The government was trying to avoid inflaming the situation. David Cameron told the Commons: “What we are proposing is fair: it is fair to taxpayers but it is also fair to the public sector because we want to continue strong public sector pensions.” He said Labour was avoiding the issue, accusing the party of being “paid for by the unions [so] they can’t discuss the unions”. None of the four striking unions, with members in schools, colleges, universities and the civil service, is affiliated to the Labour party. Nearly every other union is poised to move towards strike action by the end of the year if the bitter standoff over public sector pension reforms is not resolved. Roads in central London will shut as thousands of people march in demonstrations that will be echoed across the country. Police leave has been cancelled so officers can cover for striking police community support officers, call handlers on the 999 lines and security staff. – the Guardian

As many as 750,000 teachers and civil servants are expected to join today’s strikes. Millions of others face severe inconvenience or financial loss: from parents who stay at home because their children’s schools are closed to people wanting to enter or leave the country. It should be stressed that not all public-sector staff will be striking. Many NHS staff, transport workers and others are not involved, although their unions do not exclude action in future. This is nothing like a general strike, nor even a strike by the whole public sector – though there are those on both sides of the public-private divide with an interest in presenting it as such. There is no doubt that many public sector workers are angry, frustrated and disillusioned on the very specific issue that is the focus of today’s protest: moves by the Government to change the terms and conditions of public-service pensions. And they are not completely wrong when they argue that long-standing terms of employment are threatened or that pensions have been a plus for the public sector in recruiting and keeping staff. But these arguments ignore the bigger picture. In pension provision, Britain is rapidly becoming two nations. One nation can look forward to a pension which, while not necessarily qualifying for the description “gold-plated”, is secure and bears a predictable relation to salary and years of service. The other nation – which comprises the vast majority of the working population – increasingly cannot. In most private companies, secure final-salary schemes are a thing of the past. Contributions are higher, the returns mostly lower, and the pensionable age higher than in the public sector – if there is a pension scheme at all. – the Independent

Prezza hits the campaign trail as election day looms

Former deputy prime minister John Prescott put tackling unemployment at the top of the agenda as he joined Labour’s Inverclyde by-election candidate on the campaign trail on Wednesday. Speaking just hours before the polls open, Mr Prescott said Iain McKenzie’s message was “jobs, jobs, jobs”. He added: “I am delighted to be out and about in Inverclyde today supporting Iain McKenzie to be a strong, local voice in Westminster. He’s a local man who knows this area like the back of his hand. Iain didn’t just arrive in Inverclyde for the by-election. It’s about jobs, jobs, jobs. Unemployment here is too high. The Tories are ruining the economy, punishing families and hurting decent people just looking for work. Inverclyde needs a local champion to go down to Westminster and fight the corner. That’s why I’m here to back Iain.” – stv.tv

Voters in Inverclyde go to the polls later to elect a new member of the UK Parliament. Polling stations in the constituency will be open from 0700 BST until 2200 BST. Labour is defending a 14,416-vote majority in the Westminster seat, also being contested by the SNP, Tories, Lib Dems, and UKIP. The by-election is being held to find a replacement for David Cairns, who died from acute pancreatitis in May. Sophie Bridger is standing for the Liberal Democrats, Iain McKenzie for Labour, Anne McLaughlin for SNP, Mitch Sorbie for the UK Independence Party and David Wilson for the Conservatives. – BBC News

EU budget grab

David Cameron is facing pressure to veto the latest ‘ludicrous’ cash demand from Brussels after it announced plans to slap three new taxes on Britain. The European Commission yesterday revealed budget demands which would cost UK taxpayers £10billion. In what Treasury officials viewed as one of the most outrageous power grabs in recent memory, they demanded the right to raise a Europe-wide sales tax. Brussels bosses also called for a new financial transaction tax, which critics say will hurt the City of London and leave consumers with higher borrowing costs. And they unveiled plans to let Brussels grab a chunk of green taxes which are already being levied on polluters. In total, the commission demanded nearly £100billion extra for the EU’s budget between 2014 and 2020. British taxpayers would have to pay £10billion more over the seven-year period – an increase of £1.4billion a year on the current British annual payment of £13.3billion. – Daily Mail

Which one are you again?

One in four people thinks Ed Miliband is his elder brother David. A similar proportion of voters believe that David is actually Ed. Nine months into his leadership of the Labour Party, the findings of the ComRes survey for The Independent do not paint a flattering picture for Ed Miliband, as he steps up his efforts to convince the people that he is a prime minister-in-waiting. Other members of his Shadow Cabinet are even more anonymous. The only good news is for Ed Balls, the combative shadow chancellor who stood against the Milibands for the Labour leadership last year, and who appears to have made more of an impact on the electorate than the two brothers. He was correctly identified by 68 per cent of the 2,000 voters who were shown photographs of eight senior Labour figures and asked to put one of five names to their face. Ed Miliband was named accurately by 64 per cent of those questioned but 23 per cent thought he was his brother David. David was identified by 61 per cent but 26 per cent thought he was his brother. The other five Shadow Cabinet figures tested by ComRes were recognised by only three or four in 10 voters, suggesting that the Opposition team is struggling to be noticed and many Shadow Cabinet members remain in the shadows. – the Independent

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Wednesday News Review

29/06/2011, 05:12:23 AM

Spoiling for a fight

David Cameron was accused yesterday of deliberately stoking up tensions ahead of tomorrow’s mass walkout by teachers and civil servants. Labour said Tory Cabinet ministers were spoiling for a fight with the unions so they could rerun the battles of the 1980s. The accusation came after ministers broke off talks on Monday and refused to enter into last-minute negotiations with union bosses. Up to 750,000 teachers, lecturers, civil servants and other public sector workers are expected to walk out in the largest day of strike action since the 1980s. It is thought that more than 3,000 schools in England and Wales will be closed and a further 2,000 partially shut, with a million pupils affected. Hundreds of job centres, tax offices and courts are set to be closed or badly disrupted by the strike over pensions. Driving tests will be cancelled and customs checks will be affected at ports. But instead of trying to resolve the dispute, Mr Cameron outraged unions with an inflammatory speech yesterday, attacking strikers and insisting his public sector pension raid would go ahead as planned. – Daily Mirror

Passengers are being warned to avoid flying tomorrow as airports are dragged into the strike disruption over public sector pension reforms. The walkout is also set to hit four out of five schools, affecting seven million children, as union members defy calls from David Cameron to call off the industrial action. The Prime Minister yesterday told public sector workers strikes were ‘wrong’ at a time when discussions were ongoing, pointing out that their retirement funds are costing every household in the country £1,000 a year and must be reformed. Members of the Public and Commercial Services Union (PCS) are due to desert their posts at air terminals, threatening massive queues at passport control. Airport operator BAA which is responsible for Heathrow, Stansted, Edinburgh, Glasgow and Aberdeen airports, said: ‘Certainly there will be queues at immigration, there’s no doubt of that.’ A BAA spokesman said the strike would affect only arrivals, as checks for departing passengers were carried out by BAA staff, rather than the UKBA. However, passengers transferring flights in the UK are expected to have problems. The PCS union’s general secretary Mark Serwotka said attempts to train UKBA managers to take the place of passport-checkers would not prevent delays, adding: ‘It is likely that there will be severe disruptions and delays affecting both ports and airports. – Daily Mail

C’mon back us Ed

Tomorrow’s strikes will nail one poisonous myth: public servants do worthless jobs. Many ConDems, plus a few foolish Labour figures who should know better, demonise staff on the state payroll. Shut schools and closed courts will prove how much we depend on them. If as few employees back action as Cabinet minister Francis Maude argues, he’s got nothing to worry about. Nobody’s forced to strike and the closed shop was abolished years ago. But Maude’s jumpy because he fears the public could turn on the Tories if strikes spread. Ed Miliband’s terror of a Tory “Red Ed” tag triggered an ill-judged union denunciation by the Labour leader. At one point I feared Scared Ed might offer to join Michael Gove’s gimmicky Mum’s Army. Miliband should note the poll showing a majority think the pension strikes are legitimate. Appeasing Right-wingers who’ll devour him at their convenience, is a risky strategy. Because when Mili’s feckless friends turn, he might find old mates scarpered earlier. – Daily Mirror

Hypocrisy of the highest order

Campaigners say it is “unacceptable” that an MP who has campaigned for the living wage is recruiting an unpaid worker for her House of Commons office. Lyn Brown, Labour MP for West Ham, is seeking a “voluntary Westminster worker” for duties including policy research and dealing with constituents. Ms Brown said she “would like to pay everyone” in her office, but “did not have the resources to do so”. The Labour Party said staffing decisions were a matter for individual MPs. Ms Brown’s official website states: “Since her election in 2005, Lyn has campaigned tirelessly for a living wage for all.” The living wage is an hourly salary rate – higher than the minimum wage – that campaigners say is necessary to allow a family to meet their basic needs. In London – including Ms Brown’s constituency – it is currently £8.30. – BBC News

A labour MP who has campaigned against low wages was yesterday branded a hypocrite after advertising for an unpaid researcher. Lyn Brown is seeking a “voluntary Westminster worker” to help with constituency and research duties. The West Ham MP has been at the forefront of a campaign for a living wage of £8.30 an hour for workers in London. Her website states: “Lyn has campaigned tirelessly for a living wage for all.” Gus Baker, from campaign group Intern Aware, said: “This is a double hypocrisy. How would someone from a low-income background take that opportunity? It is manifestly unfair.” Ms Brown said: “I would like to pay everyone who volunteers for me and who is ultimately seeking a wage. The reality is that I do not have the resources.” – Daily Mirror

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Tuesday News Review

28/06/2011, 06:37:15 AM

University challenge

Universities could be handed over to private firms and run for profit under plans to be announced this week. The Government wants to let companies set up or take over existing colleges and offer student loans. The plans are included in Universities Minister David Willetts’s delayed universities white paper. But a report by the Government-funded Higher Education Funding Council for England warned businesses would be able to cherry-pick the most profitable courses. And it added there was no guarantee they would work to widen the participation of less-profitable students. Sally Hunt of the University and College Union said: “Millions of students face being ripped off by operators whose main interest is their own profits, not education.” – Daily Mirror

Ministers say their plans will sustain the country’s world class universities and improve higher education opportunities. They also argue the proposals – which are linked to those that will triple tuition fees to £9,000 pounds by 2012 – will increase social mobility. As part of the changes, universities will be forced to provide potential students with more information about their entry requirements, job prospects and the quality of teaching. Popular universities will be able to accept any student achieving at least two A grades and a B at A-level – in a move aimed at increasing access and helping the institutions grow. Universities and higher education colleges charging low fees could also be allowed to increase their numbers. It is hoped that would encourage the more expensive establishments to reduce what they charge. And the White Paper is also likely to contain measures to boost the powers of the regulator, the Office for Fair Access (Offa). The watchdog is tasked with ensuring universities do not price out poorer students with higher fees. But the University and College Union warned against reforms that would allow the expansion of private universities, which are not subject to the cap on numbers. – Sky News

Strike breakers

The National Union of Teachers (NUT) has written to schools throughout England and Wales telling them they could be in breach of employment law and health and safety regulations if they keep schools open during the pensions-related dispute. The letter emerged as Downing Street yesterday backed plans for parents to staff classrooms during the walkout, with ministers appearing increasingly determined to face down militant trade unions. David Cameron will make a last-ditch direct appeal to public sector workers today not to go on strike on Thursday, insisting their current pension arrangements are “not fair to the taxpayer”. The Prime Minister will address the Local Government Association’s annual conference to warn council workers and teachers that the “situation is unsustainable” and that they must accept changes. Downing Street sources said that Mr Cameron would be “robust” but would attempt to set out a “fair argument” over why reform of pensions was essential. – Daily Telegraph

People support calls for a change in the law to ban strikes by public sector workers if there is a low turnout in strike ballots, according to a survey for The Independent. They also believe that trade unions will fail to win public sympathy if they carry out their threat to stage co-ordinated strikes in their battle over pensions. Unions vowed last night to press ahead with a strike by up to 750,000 public employees on Thursday, after talks with ministers ended without a last-minute breakthrough. The survey by ComRes found that, by a margin of 50 per cent to 32 per cent, people agreed that the Government should ban public sector strikes unless there has been a turnout of at least 50 per cent in the ballot to approve the industrial action. The finding will increase the pressure on ministers to bring in a legal minimum turnout – an idea favoured by the London Mayor, Boris Johnson, the Confederation of British Industry and some Tory ministers and backbenchers. – the Independent

Fox brings top brass into line

Senior members of the military will lose their jobs if they allow costs to get out of control and fail to manage budgets, under radical reforms to the Ministry of Defence published on Monday. The heads of the army, Royal Navy and RAF will be held accountable as never before, and will also be responsible for making significant cuts to the numbers of officers in their ranks. All three services have become overladen with top brass, according to a report by Lord Levene, chairman of Lloyd’s of London. His proposals have been accepted wholesale by the coalition government, with the defence secretary, Liam Fox, saying the MoD had been bedevilled by poor management. In his 84-page report, Levene noted that inter-service rivalry had added to the problems and recommended the creation of a new joint forces command, headed by a high-ranked military commander, as one way of breaking down the barriers between them. In one startling admission, Levene said the MoD and military chiefs often showed a disregard for costs. “Finance and the need for affordability are not regarded as sufficiently important throughout the organisation,” he said, adding that service chiefs who failed to bring in projects on time and within budget should face the axe.” – the Guardian

What Mrs Bone wants, Mrs Bone gets

Conservative MP Peter Bone, claimed that his wife, Mrs Bone, had been singing the praises of the Prime Minister because the UK would not be involved in the Greek bail-out. He then sought assurances from Mr Cameron on behalf of Mrs Bone, that the UK would not be required to participate in a bail-out before 2013, saying that “she would be very happy if he could give her that undertaking”. Mr Cameron replied that he felt that a very big part of his life “was giving pleasure to Mrs Bone.” And added that on this occasion “he could only go so far”. In March, the Tory MP demanded David Cameron call for a referendum about whether the UK should remain in the EU, saying it would please, among others, Mrs Bone. – Daily Telegraph

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Monday News Review

27/06/2011, 06:33:48 AM

Tory tragedy

Christopher Shale, David Cameron‘s constituency chairman, was warned by Downing Street officials that a sensitive memo written by him had been leaked to a Sunday newspaper shortly before he died at the Glastonbury festival. The prime minister said that he was “devastated” by the news that Shale, aged 56, had been found dead in a portable toilet at the festival, after apparently suffering from a heart attack. Early rumours that he may have committed suicide were rejected by police. It has emerged that two Downing Street officials tried to reach Shale around lunchtime on Saturday to warn him about the note, in which he described parts of his local party as crass and grasping and said that it offered people no reason to join, had been passed to the Mail on Sunday. One official contacted him by text just after 12.30pm to advise him not to speak to reporters; another suggested he get in touch with Conservative headquarters. Shale subsequently contacted the Witney constituency agent Barry Norton, a West Oxfordshire councillor, who said that Shale had been aware of the Mail article but was “quite confident that this was not really an issue”. – the Guardian

That politics is a tough game is a much-used cliche, but it’s true. Like Harold Wilson’s phrase about a week being a long time in politics or Enoch Powell’s observation that all political careers end in failure, the old saying is accurate. The riddle of the untimely death in a Glastonbury VIP toilet of Cameron’s right-hand man, Christopher Shale, is a moment to reflect on the pressures of political life. Avon and Somerset Police are investigating and an inquest could be held. Conspiracy theorists have jumped to conclusions and will refuse to budge, as they did with Iraq weapons scientist Dr David Kelly. Mr Shale’s death is first and foremost a tragedy for his family. So out of respect to them we should avoid instant verdicts, although police suspect a heart attack. A senior figure in any political party would feel under pressure should a damning private assessment receive a public airing. That Mr Shale died after Downing Street rang him may well prove a coincidence, the call and his death hours later two unconnected events. Mr Shale’s conclusions – Tories come across as graceless and always on the take – were uncontroversial to anyone who sees the modern Conservatives up close. What made them controversial was his position as a prominent Tory in the PM’s backyard – a close friend. Did telling the truth have tragic consequences for a respected local politician? – Kevin Maguire, Daily Mirror

Trade over rights as Wen Jiabao visits number 10

Mr Wen, who is on a three-day visit to the UK, has already said he wants to welcome more UK products to China. On Sunday he visited the Longbridge MG car plant, where he faced a small human rights protest. Downing Street said there was potential to create more jobs and investment opportunities for British businesses. The two leaders are expected to sign an agreement to help UK companies work with China’s regional cities, in architecture, civil engineering and research and development. British poultry farmers are being allowed to export to China and the visit is expected to see agreements reached for the supply of pigs. Chancellor George Osborne and Foreign Secretary William Hague are due to join Mr Cameron for the talks and Mr Wen is accompanied by other senior members of the Chinese government. They are also likely to discuss improving cultural and educational relationships between China and the UK and global issues such as international security and climate change. A Downing Street spokeswoman said: “China’s rapid economic rise is good news for the UK. It means more money flowing into our economies and has the potential to create more jobs and investment opportunities for British business at home and in China.” – BBC News

Whitehall officials are firmly focused on improving Britain’s trade links with China as Wen Jiabao visits London – to the frustration of human rights campaigners. The Chinese premier and other senior officials are meeting David Cameron and other coalition figures in a summit this morning, as British officials seek to further their goal of securing $100 billion of bilateral trade with China by 2015. Deals worth over £1 billion are expected to be signed later, following up the $1.2 billion Rolls-Royce deal made when a UK delegation led by Mr Cameron visited China last November. The UK will raise human rights issues, but is not prepared to compromise its trade interests by souring relations with Beijing. “Our support for freedom of expression, development of independent civil society and our conviction that the transparent and consistent application of human rights under the rule of law, are essential prerequisites for China’s long term prosperity and stability,” No 10 said. China has released artist Ai Weiwei and dissident Hu Jia in the last eight days, but a strong police presence outside the latter’s home has kept journalists away from his home. – politics.co.uk

The talks before the strike

Crucial talks aimed at averting autumn strikes will be held today between the Government and unions – with one official admitting the negotiations are “fraught with difficulties”. The meeting follows weeks of an increasingly bitter war of words over pay and pensions reform and ahead of Thursday’s industrial action involving 750,000 public sector workers. Unison leader Dave Prentis has already warned that his union will ballot over a million workers for industrial action if the dispute is not resolved. Danny Alexander, Chief Secretary to the Treasury, sparked anger earlier this month when he made it clear the Government would press ahead with plans for public sector workers to pay more into pensions and work longer. We have rigorous contingency plans in place to ensure that essential services are maintained during the strike action on Thursday. Kevin Courtney, deputy general secretary of the National Union of Teachers, said: “What we are looking for is some sign that the Government is prepared to move on the three central issues – paying more, working longer and getting less.” The Government has based its proposals on a report earlier this year by former Labour minister Lord Hutton, which recommended increased payments, a switch from final salary schemes to those based on career-average earnings, and rises in the pension age. But in a speech last week, Lord Hutton warned that people could be forced out of pension schemes if government reforms were too punitive. – Sky News

This week the Coalition government faces its first great trial of strength with the unions as about 750,000 teachers, lecturers and civil servants prepare to walk out over reforms to public pensions. No one can describe the forthcoming battle as unexpected. David Cameron may not espouse the same shrilly ideological grudge against unions in principle that Margaret Thatcher appeared to evince in the 1980s. But the whole thrust of Mr Cameron’s and George Osborne’s agenda, which strives towards a grand rebalancing of the economy, away from the public sector and towards private enterprise and the voluntary sector, necessarily implies a clash with the unions. When the Government talks of “the country” bearing the weight of cuts in spending, this is shorthand for cuts to the numbers, wages and pensions of civil servants. So, neither side is sleepwalking into combat; it was a question of where and when. Each side is banking on public support swinging gradually if not immediately behind it. The unions hope that this week’s industrial action will be start of rolling strikes that gather strength as summer shades into autumn, tapping into a deep vein of public discontent with the handling of the economy that has hitherto struggled to find expression. With any luck, they may calculate, the strikes will expose new strains in the Coalition, adding to the unhappiness already felt by many Liberal Democrats with Government policies and so precipitating the collapse of the Coalition. – the Independent

Hain hails to the chief

Shadow Welsh Secretary Peter Hain yesterday said Labour is on course for the biggest changes in “living memory” as the party prepares for major reforms. UK leader Ed Miliband pressed for sweeping changes when he addressed the National Policy Forum in North Wales on Saturday and called for the creation of a mass “movement”. Mr Hain, who has chaired the National Policy Forum, said: “What we are embarking on here is a really serious transformation of a political party , the biggest one undertaken in living memory, because politics has changed and we are a party – like the others are – that is stuck in the past.” A key proposal is to throw open annual conferences to non-affiliated charities and community organisations in an attempt to build a wider movement. Support for reform also came from former prime minister Tony Blair. He said: “Parties that succeed do so by constantly modernising.” – Western Mail

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Sunday News Review

26/06/2011, 09:00:02 AM

Ed outlines reforms

One of his proposals for reform involves putting popular grassroots ideas – with demonstrable local support – before the National Policy Forum for consideration. ”Much more of our policy needs to come from the everyday experiences of people. So we do need more of a voice for party members. But those we should hear the most are those who do the most in their communities,” he said. Mr Miliband said that Labour conferences should reach out beyond the party’s rank-and-file and invite ordinary members of the public, charities, pressure groups and community organisations to attend and speak to delegates. Plans to scrap shadow cabinet elections – whereby frontbenchers are elected by fellow Labour MPs – have already been criticised this week by backbenchers who fear losing influence over the leadership. But Mr Miliband insisted they were “a huge distraction and only emphasised differences”. – the Telegraph

Ed Miliband is to loosen the grip of trade union leaders over Labourpolicy-making as part of a sweeping modernisation drive that risks confrontation with the party’s traditional paymasters. The move to change historic links with the unions and open up policy to members will alarm union bosses as they prepare this week for the first in a rolling programme of strikes against public sector cuts. Miliband, who won the leadership race against his brother David with the help of union votes, signalled the move after he refused to back a planned strike by up to 750,000 teachers, lecturers and civil servants. In a clear reference to the power that union chiefs exercise at the party’s annual conference – where they wield 50% of the vote – he said that it was time for Labour to move on from “late-night deals thrashed out in locked meeting rooms by a handful of people”. He added: “The best policy does not come from a few people locked in a room. It comes from conversations on the doorstep, at the school gate, in our workplaces.” – the Guardian

The first is that party members have got to identify with the party’s goals and in a very real sense feel ownership of the project, however little they may realise their influence can be. That requires a reinvigoration of debate and action at constituency level which is firmly embedded in the needs and aspirations of local communities. Why after all do people join the party in the first place? Clearly because they want to be involved in public affairs at whatever level, local or national, and to be able through working closely with similar others to have an impact on the local scene and maybe also a cumulative and collective impact at the national level too. That will only happen when the party gets stuck into local campaigns that matter to people and is seen to be a force actively fighting for what people really care about. That’s why Ed’s right that Labour’s National Policy Forum should debate public petitions that command the largest number of signatures and that non-party members including sympathetic NGOs should be able to speak at party conference. It’s also vital, if party members and supporters are to feel they carry weight at the highest levels, that conference is again taken seriously not just as a place of passionate debate but as a prelude to final decision-making, where its voting authority has been restored and is fully and properly respected by the leadership. – Michael Meacher

Gove attempts to use parents to break strike

Michael Gove is encouraging parents to break this week’s mass teachers’ strike by volunteering to turn up and take lessons themselves, The Independent on Sunday has learnt. In an unprecedented step in relations between the Government and trade unions, the Secretary of State for Education said that classrooms threatened with closure could remain open if head teachers used the “wider school community” – including pupils’ parents – to teach lessons. Some head teachers have written to parents asking them to consider, if they have been vetted by the Criminal Records Bureau (CRB), volunteering to ensure lessons go ahead, Whitehall sources claimed yesterday. A spokesman for Mr Gove said the minister thought it was “great” if parents could help out with teaching. But the move triggered concern from the National Union of Teachers, whose members are among 750,000 teachers and other public sector workers walking out on Thursday in a dispute over major changes to public sector pension schemes. – the Independent

Cruddas: Labour must deal with issues on the ground

Cruddas says Labour must shed its reputation as the party of “gangs and tribes”, consumed by in-fighting between Blairites and Brownites. He supported David Miliband for the Labour leadership, but believes his brother Ed could be “just the civilising individual who could allow this poison to be cut out”. It has been reported in a new biography of Ed that Cruddas told David on his defeat: “Why don’t you fucking punch him? That’s what I’d do.” He denies saying it, claiming he and David met last week and laughed it off. “I would not say to one brother to hit the other, or use the word ‘punch’. It is just ridiculous.” As the party’s liaison with the trade unions, Cruddas was in the front row of the Blair modernisation project, from the “New Labour, New Britain” rebrand to ditching Clause 4. Even last week Tony Blair warned his party not to shift from New Labour. But Cruddas says times have changed and the former prime minister now risks advocating a “sort of New Labour cosmopolitanism of the first-class British Airways cabin, where you look down from 36,000 feet rather than deal with issues on the ground”. – the Independent

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Saturday News Review

25/06/2011, 07:39:48 AM

Ed to announce reforms

Ed Miliband today lays out far-reaching reforms designed to moderniseLabour‘s relations with the trade unions, open the party up to the public, and reinvigorate what he describes as its boring annual conference. The Labour leader regards these changes as critical to his efforts to get the party back in touch with the electorate, and ensure it stays in opposition for only one term. He also for the first time tells the public sector unions that it would be a mistake for them to strike next week, saying they need to do more to persuade the public of their argument over the perceived injustices in the government’s changes to public sector pensions. In a Guardian interview Miliband says: “I want to open up the leadership to the party and the party to the country. In a society that is changing so fast in so many ways, we cannot continue as we are, with essentially a closed structure that was formed a century ago.” – the Guardian

Ed Miliband was facing a left-wing backlash last night over his move to scrap elections for places around Labour’s top table. The Labour leader will argue today that the current system, whereby votes for 19 places are held every two years, forces Shadow Cabinet members to “look inwards”. His plan would give him full power to decide Shadow Cabinet positions. But left-wingers say the move is an attack on the party’s democratic traditions. – the Independent

Lib Dem plot to stop Tory health reforms

The “Yellow Bastards”, as the Tories now call the Liberal Democrats, are still not happy with the government’s NHS reforms plans. In a leaked email the former Lib Dem MP Evan Harris, who has led the charge against the original Andrew Lansley blueprint, has condemned the revised plans as “bad”. This is what Harris wrote in the email, part of an email chain seen by the Guardian: “There is a view that we should keep quiet, say we had a victory and hope no-one notices this stuff – but I think that is not realistic. The plans remain bad for the NHS, go beyond the coalition agreement and we must insist on sovreignty (sic) of conference on major issues not in the CA.” Harris has already indicated publicly that he is not happy with the revised plans which were launched by David Cameron, Nick Clegg and Andrew Lansley at Guy’s Hospital on 14 June. On 18 June Harris told the Guardian there were “new threats” hidden within the reworked NHS. – the Guardian

Cameron faux fury on EU HQ

David Cameron yesterday accused fellow European Union leaders of squandering £280m on a new Brussels building for themselves at a time when the public is being hit by spending cuts. At a dinner of EU leaders, the Prime Minister was furious when Herman van Rompuy, President of the European Council, circulated a glossy, 14-page brochure trumpeting the 27 leaders’ new headquarters. The Europa building, next door to the Justus Lipsius Building where the leaders currently hold their meetings, will include three conference halls, five meeting rooms and offices for Mr Van Rompuy, as well as for the country which holds the EU’s rotating chairmanship, delegations from EU member states, the press and refreshment areas. Mr Cameron’s attack caused surprise in Brussels since the project was approved in 2004 and would now be more expensive to halt than complete. Some EU officials accused him of pandering to Eurosceptics when the EU should pull together because of the economic crisis in Greece.

ED and Ted

Ed Miliband’s aides claimed this week that he was inspired by Baroness Thatcher. However, one of his biggest cheerleaders tells Mandrake that the Tory prime minister with whom he should really be compared is Sir Edward Heath. “Let’s not forget that Ted Heath was a hugely controversial figure in his time and he was a strongly disliked man, but, as we look back now, much of what he predicted turned out to be the case,” says Flora Fraser. The historian, who donated £2,000 to his Labour leadership campaign, adds: “This is what I am saying about the history of the future … you must be modern. I think he is a very modern man and it is so important that we look to the future rather than always focusing on the present.” Flora is the daughter of Dame Antonia Fraser and her first husband, the late Conservative MP Sir Hugh Fraser, who stood against Heath in the party’s 1975 leadership election that was eventually won by Margaret Thatcher. – the Telegraph

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Wednesday News Review

22/06/2011, 06:57:54 AM

Please no return to the bad old days

Several hundred people gathered near interfaces close to the Newtownards Road. There were reports that three shots had been fired and a photographer had been shot in the leg. Michael Copeland, a member of the Ulster Unionist Assembly, said missiles had been hurled between the opposing sides. Police were also attacked with petrol bombs and stones. A major riot on Monday night in which police were shot at by loyalists in Northern Ireland was blamed on the Ulster Volunteer Force yesterday, despite the paramilitary group being on ceasefire. Before last night’s violence, political leaders appealed for calm. On Monday, about 500 people were involved in disturbances when there was hand-to-hand fighting and petrol bombs were thrown. Police said there were gun shots from the republican Short Strand area, while loyalists also opened fire. UVF members were blamed for starting the violence by attacking homes in the Roman Catholic enclave. – Daily Telegraph

Northern Ireland First Minister Peter Robinson and deputy First Minister Martin McGuinness have condemned the riots, as well as a separate bomb attack aimed at police in west Belfast. Mr Robinson said: “At this time when many are working hard to build a better and brighter future for all in Northern Ireland, it is disappointing and deeply concerning to see this level of violence return to our streets. We have given clear commitments to continue to deliver progress for all within the community including in those areas most at need. This type of behaviour damages the local economy and unfairly mars the reputation of the community.” Mr McGuinness said: “A small minority of individuals are clearly determined to destabilise our communities. They will not be allowed to drag us back to the past. I call on all those involved to take a step back and to remain calm. I support the efforts of community leaders on all sides who have been working on the ground to restore calm in east Belfast.” The sudden upsurge in violence is being described as the worst the city has seen in years and loyalist community workers blamed simmering tensions at the notorious sectarian interface. – Belfast Telegraph

Cameron’s tough stance in tatters

Mr Cameron’s promise of automatic six-month sentences for anyone using a knife to intimidate or threaten also falls far short of his election pledge to jail anyone caught with a blade. But there was a bigger shock buried in the fine print of the reforms as it emerged that more than 3,000 criminals and suspected offenders will avoid jail each year as part of the Conservative-led coalition’s package. About 1,300 would have been jailed on remand but will now remain at liberty until their case is tried in a bid to save money. Around 250 ex-cons who would currently be put back in jail each year for reoffending or breaking the terms of their release will also be allowed to stay at large. Up to 800 foreign criminals will be freed early or let off with a caution on the condition that they go home, raising fears they could simply slip back into the country. Mr Cameron was desperate to talk tough yesterday after an internal Downing Street poll showed that the sentencing U-turn row has destroyed public faith in the Tories’ ability to tackle crime. – Daily Mirror

Ed’s message to Murdoch

Ed Miliband has told business leaders that Labour wants a “strong relationship” with them but there must be “responsibility” on pay at the top. The Labour leader told the Times CEO Summit in London: “I want to celebrate wealth creation in this country.” But he said there was an “issue about rewards at the top” while people on lower incomes had seen wages stagnate. He also backed his shadow chancellor Ed Balls’s call for a temporary VAT cut to help boost the economy. But he said scrapping the 50p top rate of income tax – paid on earnings over £150,000 – was “not a priority for us”. Mr Miliband addressed an audience including News Corporation chairman Rupert Murdoch and chief executives of Goldman Sachs, Santander and Vodafone, among others. – BBC News

Labour leader Ed Miliband has called for “responsibility” on pay from those at the top of society as he addressed a summit of business leaders in London. Mr Miliband said Labour wanted a “strong relationship” with business and promised there would be “no going back to the penal tax rates of the 1970s” if he won power. But he warned that the credibility of the free enterprise system was under threat if middle and lower-income workers see their living standards stagnate while the richest continue to enjoy ever-increasing wealth. Speaking at The Times CEO Summit to an audience including News Corporation chairman Rupert Murdoch and chief executives of companies such as Goldman Sachs, Santander and Vodafone – as well as Lord Mandelson, who famously said New Labour was “intensely relaxed about people getting filthy rich” – Mr Miliband warned that there was “an issue about rewards at the top” in Britain. – Daily Mirror

Labour Lords take on Clegg’s plans

Nick Clegg’s plans to create an elected House of Lords suffered a big setback last night when Labour vowed to oppose the shake-up and peers from all parties lined up to attack it. Labour was accused of playing politics as it rejected Liberal Democrat pleas to set aside the differences between the two parties to force through Mr Clegg’s proposal for the first elected peers to be chosen in 2015. The Coalition Government wants the 828-member House replaced by 240 elected members, 60 appointed crossbenchers, 12 bishops and a small number of appointed ministers. But Labour favours a 100 per cent elected second chamber. The Deputy Prime Minister has led the charge for Lords reform. Although David Cameron has backed the change, there are doubts that the Conservatives will devote the energy and Parliamentary time needed to force through Mr Clegg’s Bill before the next general election against strong opposition in both Houses of Parliament. – the Independent

Mandelson shows his support

Ed Miliband needs to show more courage as a leader if he is to unite the Labour party behind him, Peter Mandelson has suggested. Speaking at a meeting of the Labour pressure group Progress, the former first secretary of state warned his party against returning to the infighting which characterised the Labour party during the 1980s. He said: ‘We need to take a few risks; talk more directly to the country; be more innovative and courageous. Our leader is a leader of the country, not of the party’s sections and factions, and it is to the country he needs to be given the space to prove himself.” Lord Mandelson’s support comes despite his backing of David Miliband during the Labour leadership election. – politics.co.uk

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Tuesday News Review

21/06/2011, 04:40:44 AM

Cameron gets his way

David Cameron will today ditch plans to halve jail terms for offenders… after complaining his Lib Dem Coalition partners are stopping him being as tough as he wants to be. The Premier will humiliate Deputy Prime Minister Nick Clegg by killing off plans to offer 50 per cent sentencing discounts for criminals who plead guilty. The move, following weeks of public wrangling, comes after Mr Cameron suggested in a radio interview that the Lib Dems are preventing him from taking stronger action to bear down on immigration and benefit scroungers. His move on sentencing suggests he is concerned about cheering the Right-wing of his party, which was left seething last week by a retreat on NHS reform in the face of Lib Dem opposition. Tory MPs had expressed anger that the stance was undermining the party’s traditionally strong position on law and order. Drawn up by Justice Secretary Ken Clarke, and initially signed off by Mr Cameron, the policy was enthusiastically backed by the Lib Dems. Mr Clegg rowed in behind Mr Clarke as controversy raged, arguing that scrapping increased sentencing discounts would leave a large black hole in the Ministry of Justice budget. The proposals were designed to save £130million a year. It had been widely expected that the Coalition would end up offering a ‘fudge’ which would see rapists, sex offenders and those convicted of serious violence excluded from increased sentencing discounts, but less serious criminals included. But a Ministry of Justice source last night told the Daily Mail that the Prime Minister had overruled Mr Clegg and Mr Clarke and scrapped the scheme altogether. It is expected that deeper cuts to probation services will now help make up the funding difference. – Daily Mail

David Cameron has accused the Lib Dems of blocking tougher action on immigration and stripping the workshy of benefits. The Prime Minister rejected claims only Nick Clegg was being forced to compromise in the Coalition. He said: “We’ve all had to make compromises. If I was running a Conservative-only Government we would be making further steps on immigration control or welfare reforms.” Mr Cameron’s comments on BBC Radio 2 came as a report from Oxford University’s Migration Observatory dismissed the Government’s chances of cutting net migration to “tens of thousands” in four years. Annual net migration to the UK is currently 242,000, but the group predicts Coalition policies will reduce that number by 75,000 “at best” by 2015. Shadow Home Secretary Yvette Cooper said the report showed that the Government has “no workable policies” to meet its promise. She said: “David Cameron pledged to cut net migration. He’s not being straight with people.” – Daily Mirror

David Cameron has made his clearest admission yet that the coalition has clipped his party’s wings, saying that being in government with the Lib Dems has curbed Conservative plans on immigration and welfare. In an interview on BBC Radio 2 with Steve Wright he said: “If I was running a Conservative-only government I think we would be making further steps on things like immigration control or making sure that our welfare reforms were absolutely making sure that if you’re not prepared to work you can’t go on welfare – I think we’d be tougher, but we make compromises. “We make compromises, we make agreements, but as a government I think we’re delivering a lot of good things for the country.” The prime minister previously emphasised that being in coalition had improved policymaking. On immigration, the Conservatives are attempting to reduce net migration from outside the EU to “tens of thousands each year, not hundreds of thousands” over the lifetime of the parliament, while the Lib Dems had wanted to see an earned “amnesty” for illegal migrants who have been in the country for a decade. The coalition document committed the government only to introducing an annual limit on non-EU migrants through a mechanism yet to be determined, but in the interim Cameron and the home secretary Theresa May have consistently used harder language. Pressure from the business secretary, Vince Cable, also meant the Tories have been far less tough in placing annual limits on skilled work permits and overseas student numbers than they would have first liked. – the Guardian

No return to the bad old days

They’ve done it again this weekend – announcing big changes to pensions for nurses, teachers, dinner ladies and other low-paid workers before talks with their unions had even finished. Everyone agrees public sector pensions need to be reviewed as people live longer. But the Government should be getting round the table and talking changes through. They should not be pulling the rug from under people who have dedicated themselves to teaching, nursing or policing for 20 years. Last year, the number of working days lost because of strikes hit a record low because in this day and age – and thanks to 13 years of Labour insisting on it – both employers and unions want co-operation, not confrontation. The Tories want to wreck that approach. Let’s be clear what George Osborne’s game is. He knows the economy has flat-lined over the last six months. He knows he’s losing the economic argument on the deficit and jobs, and needs to change course. But instead he’s trying to pick a fight about pensions, provoke strikes and persuade the public to blame the stalling economy on the unions. That’s why trade union leaders must avoid George Osborne’s trap. He wants them to think that going on strike is the only option and the best way to win the argument. – Ed Balls, Daily Mirror

A seismic event early in your career usually resonates throughout the rest of your working life. This is exactly what happened to Ed Balls when he had a ringside seat for the debate about British membership of the European Exchange Rate Mechanism in the early 1990s. Balls had recently arrived at the Financial Times when John Major took Britain into the ERM in October 1990 – against the instincts of Margaret Thatcher – a month before he succeeded her as prime minister. The then 23-year-old Oxford PPE graduate was one of a handful of people at the FT who were sceptical about British membership of the ERM. Major hoped that joining the ERM would help tame inflation. In September 1992 Balls was still a leader writer at the FT when Britain was ejected from the ERM in dramatic circumstances. David Cameronwas shaped by Black Wednesday as well. As a 25-year-old special adviser, he stood near Norman Lamont in the Treasury Circle on a balmy September evening as the then chancellor announced that Britain was leaving the ERM. – the Guardian

Another popularity contest

David Cameron‘s personal popularity has dropped, and the Liberal Democrats‘ poll rating has hit its lowest level for 14 years, a Guardian/ICM survey has revealed. But while the poll offers no joy for the coalition, it gives scant comfort forLabour: the party retains a narrow lead among voters in a hypothetical general election, but Ed Miliband‘s personal rating has slumped again and he is now competing with Nick Clegg for the title of most unpopular leader. Overall, hostility to the coalition has grown sharply, with 50% of voters saying the government is doing a bad job and only 35% saying it is doing a good job – a net rating of -15%. That is 10 points worse than March and 38 down on June last year, when the coalition was enjoying a honeymoon. The poll was carried out at the weekend after a difficult few days for the coalition, dominated by the relaunch of the NHS plans and announcements of industrial action by several public sector unions. Cameron remains more popular than either his party or the coalition, but only just, and he is in negative territory for the first time. While 42% say he is doing a good job, 47% say bad, a score of -5. In March his score was +5 and last June it was +23. – the Guardian

Labour leader Ed Miliband suffered a fresh blow last night when an ICM poll revealed that he was even more unpopular than Liberal Democrat Deputy Prime Minister Nick Clegg, despite his party being ahead in the polls. The poll of 1,000 adults taken between 17 and 19 June gave Mr Miliband a rating of minus 21, down eight points since March and a point behind Mr Clegg, who has been under fire over cuts and student tuition fees. Prime Minister David Cameron hit a new low of minus five, but was still 16 points ahead of his rivals. The result comes after internal criticism that Mr Miliband, who beat his brother David in last year’s leadership contest despite polling lower among MPs and party members, is not managing to land any punches. There are concerns he is not making ground at a time of major U-turns on health and justice by the coalition. Labour is also struggling to stay ahead in the polls, with 39 per cent, just two points ahead of the Tories on 37. – the Scotsman

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