Labour Uncut

GRASSROOTS: Who’s the nasty party now?

04/09/2011, 12:30:34 PM

by David Talbot

As Tory activists gathered in Bournemouth in October 2002, for what was regarded as a critical make-or-break conference for Iain Duncan Smith, few were thinking about his newly appointed chairwoman, Theresa May. But whilst Duncan Smith was wasting everyone’s time, meekly proclaiming himself “the quiet man” of politics, May delivered a speech to a stunned audience that would have profound ramifications for British politics.

In a particularly hard-hitting passage, May said it was time for the Conservatives to face up to the “uncomfortable truth” about the way they were perceived by the public as the “nasty party”. Her description of a party that had sunk into corruption, incestuous feuding and outright bigotry, was devastating precisely because it was accurate. If you didn’t dislike the Conservatives, you simply weren’t trying.

It left an indelible mark on the party. Cameron’s entire strategy, since his election as leader in 2005, could been summed up by self-conscious efforts at “decontamination”. Hence an acceptance of the critique from the left about the party, and total and absolute submission to their fundamental framing of the terms of British political debate. Cameron didn’t get to be leader of his party without grasping, from personal and political experience, that the 21st century Tories could never afford, whatever other battles they might be prepared to fight, to be seen as the nasty party. And Labour desperately wants to revive this sobriquet that Cameron spent years of his leadership escaping.

Jonathan Powell in The New Machiavelli: How to Wield Power in the Modern World, weaves the maxims of the legendary Florentine civil servant to the proceedings he witnessed as Blair’s chief of staff in Downing Street from 1997-2007. It’s part of a surge of well-researched books relating to the disturbing saga of the politics at the top of the Labour party that was so unspeakably vicious that it interfered with the business of government. Read the rest of this entry »

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UNBOUND: Sunday News Review

04/09/2011, 06:29:12 AM

At each other’s throats

Gordon Brown repeatedly pressured Alistair Darling to change his economic forecasts almost from the outset of his premiership, it has emerged. As the former chancellor prepared to publish his memoir, Back from the Brink, former government insiders revealed the full extent of the split between the two men at the top of the Labour administration. From the autumn of 2007, as Brown agonised over whether to call a snap general election, Darling faced interference from Number 10 as he drew up his first pre-budget report, with the prime minister’s allies urging him to play down the risks of an economic slowdown in the wake of the collapse of Northern Rock. Northern Rock’s bosses blamed “extreme conditions” in the markets for the bank’s collapse, but Brown and Darling clashed over how hard the turmoil would hit the wider economy. Darling feared the impact would be severe, but Brown was determined to stick to the line that the “fundamentals” remained sound. Former insiders say Brown, who had kept Treasury officials on a tight rein during his tenure as chancellor, wanted Darling to overrule his cautious civil servants. “Gordon never understood why Alistair didn’t have the authority over his civil servants that he had,” one source told the Observer. The pre-budget report of October 2007 predicted that GDP would expand by 2% to 2.5% in 2008 as the UK shrugged off the effects of the credit crunch. In the event, it contracted by 0.1%. – the Observer

Gordon Brown came close to sacking his Chancellor, Alistair Darling, five times, senior Labour figures reveal today. The bombshell disclosure comes on the eve of a new book by Mr Darling about his relationship with the “brutal” and “volcanic” ex-PM. Mr Darling writes that he saw off a bid by the PM to replace him in 2009 with Mr Brown’s key ally, Ed Balls. And Labour sources have told the Sunday Mirror that he considered sacking Mr Darling five times in his almost three years as PM. The first doubts surfaced in 2008 when Mr Brown was unconvinced Mr Darling could handle the financial crisis, say senior Labour party officials. Mr Brown seriously considered sacking Mr Darling a second time in an October 2008 Cabinet reshuffle which saw the return of Lord Mandelson and key allies like “enforcer” Nick Brown. The third attempt – confirmed by Mr Darling in Back from the Brink: 1,000 Days at Number 11 – came in June 2009 when Cabinet Minister James Purnell quit after poor local election results. Mr Brown also thought about knifing his fellow Scot twice more in late 2009 and early 2010. – the Mirror

Scottish Tories could disband

Dramatic plans to disband the Tories north of the border were unveiled by the front-runner for its leadership in a move one senior party figure warned could encourage the break-up of the United Kingdom. Mr Cameron – who is spending the weekend in Scotland – faces the prospect of being the first British Prime Minister whose party has no Scottish MPs. Murdo Fraser, who is favourite to become leader of the Scottish Conservative and Unionist Party, will announce that he plans to wind up the party if he wins a ballot of members next month. He would follow disbanding the party by launching a new Right-of-centre party that would contest all Scottish elections — council, Scottish Parliament and Westminster. Mr Fraser, a member of the Scottish Parliament, believes the Conservatives have become a “toxic brand” in Scotland since losing all 11 of their Commons seats in the 1997 Labour landslide. – the Telegraph

Tory leadership favourite Murdo Fraser is to launch a bid to scrap the current Scottish Conservative party and transform it into a distinct Scottish identity that is free from London control. The contest for the party leadership is to take a dramatic twist tomorrow with Fraser seeking a mandate to replace the party north of the Border with an alternative bearing a new name in the hope that a radical new approach will attract new members and voters. Fraser, currently deputy leader, believes that the Scottish Conservative and Unionist Party brand is now so toxic that it cannot be revived in its current form and will argue that the best way to fight the SNP is to rebrand it as a new progressive tax-lowering party that is separate from David Cameron’s Westminster Tories. His plan has been discussed with senior London Conservatives, close to Cameron, who are sympathetic to the idea that something truly radical has to be done to break the centre-left consensus that has seen the SNP and Labour dominate Scottish politics. – the Scotsman

Chaos in the NHS

The future of the government’s health reforms has been plunged into fresh doubt as the Liberal Democrat peer Shirley Williams raises new concerns, and secret emails reveal plans to hand over the running of up to 20 hospitals to overseas companies. The revelations come as MPs prepare to return to Westminster on Tuesday for what promises to be a crucial stage of the flagship health and social care bill. Baroness Williams, one of the original leaders of a Lib Dem rebellion against health secretary Andrew Lansley’s plans – who appeared to have been pacified after changes were made over the summer – said she had new doubts, having re-examined the proposals. “Despite the great efforts made by Nick Clegg and Paul Burstow [the Lib Dem health minister], I still have huge concerns about the bill. The battle is far from over,” she said. Writing in Sunday’s Observer, Williams raises a series of issues that she says must be addressed. Chief among them is a legal doubt as to whether the secretary of state will any longer be bound to deliver “a comprehensive health service for the people of England, free at the point of need”. Some critics of Lansley believe the Tories are bent on a mission to privatise the NHS, gradually handing it to the private sector. They fear that moves to end the legal obligation on the secretary of state to deliver comprehensive services may be a deliberate part of the process. – the Observer

The political row over the coalition’s NHS reforms will wipe out hundreds of millions of pounds in planned cost savings, which will have to be found in further cuts elsewhere, ministers will be forced to admit this week. The rewriting of Andrew Lansley’s flagship plan to hand GPs control of £80bn in health spending is expected to mean projected benefits are downgraded by up to 10 per cent, putting in jeopardy a fiercely ambitious target to save £20bn by 2015. As a result, recruitment freezes will become more widespread, waiting lists are already on the rise and moves will be made to cut hospital stays, drugs bills and back-office staff. Under Mr Lansley’s original proposals, the changes were projected to secure £5bn in savings over this Parliament, and £1.7bn a year after that. But a new impact assessment, taking into account concessions to the Liberal Democrats, doctors’ leaders and patients groups, could slash that total by up to 10 per cent. – the Independent

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UNCUT: Blue Labour goes global

02/09/2011, 10:18:06 AM

by Jonathan Todd

Blue Labour seems less in fashion than previously. It was never the answer to every challenge facing Labour. But it does have contributions to make to Labour’s renewal. Whatever it is, blue Labour seems defiantly rooted in our country and the traditions which have shaped and continue to comfort and inspire its people. Global and jet-set it isn’t.

It feels odd, therefore, to see the core motivations of a creed as unabashedly Anglo-Saxon as Britpop reflected back in the protests convulsing India and Israel. These protests, like blue Labour, are, fundamentally, about rejecting contemporary materialism for the perceived morality and communality of exalted past eras: the dignity of Gandhi’s India; the solidarity of the Israeli kibbutz; and the warm embrace of the Labour party before the middle class dilettantes stole it from the working class. It’s easy to be cynical. There were, of course, no golden ages. But it’s what blue Labour and the protests say about the present that is most interesting.

Tobias Buck recently observed in the Financial Times that 250,000 Israelis have taken to the streets calling for social reform. He described them as ranging “from students to pensioners, and Holocaust survivors to taxi drivers” and as “perhaps the most serious challenge yet to the government of Benjamin Netanyahu”. He went on: “Many Israelis, regardless of their wealth and social status, say they still long for a return to the years when the country was less materialistic and more egalitarian. Even in cosmopolitan Tel Aviv, the ideals of the kibbutz live on”.

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UNBOUND: Friday News Review

02/09/2011, 06:17:33 AM

In it for the long hall

David Cameron and Nicolas Sarkozy have emphasised the on going commitment of Nato to the conflict in Libya. Speaking at a press conference at the end of the Paris summit, the Prime Minister expressed his pride in what British and allied forces had accomplished as part of Nato’s mission to stop Gaddafi’s attacks. However, he also emphasised that “it is the Libyan People who are responsible for the liberation.” “We pay tribute to your bravery and to the many who have lost their lives or been injured,” he said. Cameron also outlined three key commitments to the National Transitional Council, including the implementation of the UN resolutions by Nato and its allies, a commitment to international law, and a pledge to support the NTC in their aims to implement a democratic transition. “Freedom in Tripoli has brought to light unspeakable crimes,” he said. “These crimes must be investigated and the guilty brought to justice.” Both Cameron and President Sarkozy expressed gratitude to the Arab states that took part in the Nato coalition. – Huffington Post

Nato will remain on a war footing in the skies over Libya until the last remnants of the Gaddafi regime have been defeated, European diplomats have said. World leaders are converging on Paris on Thursday for a Friends of Libya summit intended to acclaim the National Transitional Council (NTC) as the country’s new interim government, and mark a pivot point in the international community’s efforts in Libya from war to reconstruction. The leaders will discuss a new UN security council resolution which will endorse the new status quo, lifting the sanctions regime on Libya to allow the NTC to get access to over $100bn (£62bn) in state assets frozen abroad since the start of the conflict, while handing the United Nations the lead international role in rebuilding the country. However, the NTC’s western backers, led by France, Britain and the US, want to continue Nato’s legal mandate to conduct military operations in Libya laid down in UN resolution 1973. The resolution, agreed in March, allows the alliance to use “all necessary measures”, short of deploying ground troops, to protect civilians. – the Guardian

Soft on knife crime

Only one in every five yobs caught with a knife is given a prison sentence, figures revealed yesterday. Despite David Cameron’s vow to get tough on armed thugs, most are given community punishments or cautions. Between April and June, 5,190 criminals were caught carrying a knife or other offensive weapon in England and Wales. Court statistics show that 1,024 of them – 20 per cent – were given an immediate jail term, the lowest proportion since 2008. Sentencing guidelines suggest that judges should jail for 12 weeks anyone caught with a knife, but this can be reduced for those who plead guilty or claim mitigating factors. Before winning power, the Tories said everyone caught with a knife would be sent to prison. But Justice Secretary Ken Clarke scrapped the policy to help take pressure off the prisons budget. – Daily Mail

Nearly one in four people caught carrying knives in the three months to the end of June was let off with a caution. And a third of those prosecuted for the offence received only a community service sentence, according to latest statistics. The Tory-led Government has said anybody convicted of possessing a knife should expect to be sent to prison. Most of those who were jailed were sentenced to just three months or less, the Ministry of Justice figures showed. Just 1,024 of the 5,190 offenders sentenced – 20 per cent – were jailed, down from 21% in the same period last year. The proportion of knife carriers locked up is now at its lowest in three years. Shadow Justice Secretary Sadiq Khan said: “David Cameron promised that anyone caught carrying a knife could expect a jail term. He broke that promise.” – Daily Mirror

Stealing from the poor to save the rich

Hospitals will be forced to treat wealthy foreigners to raise cash rather than treat poor patients as they are hit by cuts to the NHS budget and the government’s radical pro-market reforms, the leader of Britain’s doctors has warned. In an interview with the Guardian, Hamish Meldrum, chairman of the British Medical Association, predicted the government’s health and social care bill would see the NHS being rebuilt on a “philosophy that relies on a market-based health system rather like the one we see in the United States. “There, those who pay or are insured get a better service than those who do not and rely on state-funded Medicare. Until now our system has been built on social solidarity where patients get appropriate treatment in the appropriate time.” He said the government was forcing all hospitals to become foundation trusts and these would be gearing up to lure private patients from home and abroad as budgets were squeezed. This decision, he argued, would only be possible because the government plans to abolish the cap limiting the proportion of total income hospitals can earn from the paying sick. – the Guardian

Thomas’s challenge

Labour needs to sharpen its appeal in the crucial commuter land around London which could decide the next general election, Ed Miliband has been warned by one of his own frontbenchers. Gareth Thomas called on Labour to target the “suburban Sarahs and Simons” and “commuting Christophers and Chloes” in the 107 constituencies in outer London and near the M25 motorway, which include a high concentration of key marginals. In a stark message to Labour, he says it will not regain power on the back of opposition to spending cuts or the Coalition’s mistakes. YouGov, which carried out polling and focus groups for the report, found that 53 per cent of voters in this “outer metropolitan area” think Labour “used to care about the concerns of people like me”, but only 30 per cent believe the party still cares about them. For the Conservatives, the figures are 33 and 30 per cent respectively, a much smaller drop. “Whilst there are many marginal seats around the country, it is in London’s commuter belt that Labour needs to win more marginal seats if it is to return to power and where the battle for the hearts and minds of electors will be particularly tough,” Mr Thomas said. – the Independent

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UNCUT: Ed’s not that daft – but we didn’t know that

01/09/2011, 12:00:37 PM

by Dan Hodges

False alarm. Stand down.

Ed Miliband is not going to start attacking the government for being too harsh on rioting arsonists. There will be no call for a blanket amnesty for illegal migrants. Or for benefit fraudsters.

The Woodward memo, a sort of stamped and self-addressed Zinoviev letter, certainly caused a bit of a flap. “Labour’s new line of attack on David Cameron revealed”, exclaimed the Observer. “The opposition believes the prime minister has abandoned the centre ground in recent months to adopt a more orthodox conservative stance on issues such as law and order, immigration and welfare”. “Labour’s new strategy will highlight the Conservatives’ most popular policies”, reported Conservative Home, gleefully adding, “We’re not making this up”.

Well, they were to an extent. “It’s not a strategy document”, said one Labour insider, “it’s an assessment of where Cameron and the Tories are. It provides analysis but it doesn’t advocate a line of attack”.

That statement is certainly borne out by the sections printed in the Observer. Woodward’s document is heavy on psychoanalysis, but light on prescription:

“Analysis of Tory party policy, carried out over the summer, convincingly demonstrates the Conservatives are shifting to a distinctly rightwing strategy, in both their chosen focus on issues and their solutions… Cameron clearly recognises some of the danger he faces in his repositioning. He is still seeking to separate himself out from a toxic Tory brand and has assumed a presidential role and style”. Read the rest of this entry »

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UNBOUND: Thursday News Review

01/09/2011, 05:59:16 AM

Kick in the teeth for our best and bravest

Almost 500 RAF personnel will be told on Thursday that they are to be forced out of their jobs when the Ministry of Defence sets out the first details of its controversial redundancy programme aimed at reshaping Britain’s armed forces. The Gurkhas have also been hit hard, with infantrymen from the historic Nepalese brigade making up most of those in the army who will be told that they have been selected for compulsory redundancy. The announcement is likely to reopen bitter arguments about cuts to the defence budget that are being pushed through even though the UK is committed to fighting the insurgency in Afghanistan and has been asked to play a lead role in Libya. It will also spur on those who have demanded the government reconsiders the main conclusions of last year’s strategic defence and security review (SDSR) – calls that the defence secretary, Liam Fox, has dismissed outright. – the Guardian

Gurkhas will be among the first members of the British army to be made redundant as part of cuts to the defence budget. There will be 260 complusory redundancies in the army and among them will be 140 members of the 3,500 strong Brigade of Gurkhas. About 920 soldiers and 930 RAF personnel will be told they are being made redundant, 750 of them against their will. The cuts are being implemented to the Gurkha regiment after a change to their terms of service which put them on the same footing as the rest of the army. The Ministry of Defence, however, says he expects some of the Gurkhas facing redundancy to transfer to other regiments who are below strength. Those serving with the RAF on the front line in Libya and Afghanistan will be exempt from the cuts, however ground support and operational staff are at risk. – Sky News

Ed calls for quivker G20 action

The G20 group of leading world economies are due to meet in France in early November but Mr Miliband says it is clear the economic recovery has “stalled” and more prompt action is needed. Writing in the FT, Mr Miliband said the prime minister should press French President Nicolas Sarkozy for an earlier meeting when they hold talks at a Anglo-Frech summit on Libya on Thursday. As it currently holds the G20 presidency, France determines when meetings take place. In recent weeks, there have been a succession of warnings from key figures that the world economy is fragile and much more co-ordinated action is required to prevent a repeat of the 2009 global slowdown triggered by the banking crisis. But although IMF head Christine Lagarde said immediate action was required to boost economic growth, US central bank head Ben Bernanke signalled no immediate steps to stimulate demand. – BBC News

David Cameron is “standing on the sidelines” instead of tackling the latest wave of global economic turmoil, Ed Miliband has said. The Labour leader called on the Prime Minister to press for an early meeting of the G20 group of wealthy nations to address the crisis. He challenged the assertion made by Chancellor George Osborne that the UK was a “safe haven”, claiming it was “naive” to believe the UK was immune from the problems.” Mr Miliband said he was concerned by reports that splits within the Government and pressure from the banks could delay reform of the financial sector. “Neither should be used as an excuse for failing to deliver the change we need,” he said. In a bleak assessment of the global economy, Mr Miliband said the recovery which appeared to be taking hold a year ago “has now stalled”. – Press Association

Common sense at last

The Prime Minister and Andrew Lansley, the Health Secretary, will vote against the proposals put forward by pro-life groups and campaigning MPs, The Daily Telegraph can disclose. Their opposition follows claims that ministers were preparing to change long-established rules on advice given to pregnant women. The matter will still be debated in the Commons, but No?10 made it clear for the first time that Mr Cameron would vote against the amendments to the Health Bill tabled by Nadine Dorries, a backbench Tory MP. Downing Street sources said that the proposed amendments would “exclude proper choice”. It is understood that senior Liberal Democrats including Nick Clegg, the Deputy Prime Minister, were angry at suggestions that the Department of Health was prepared to back the changes which would introduce a mandatory obligation on abortion clinics to offer women access to independent counselling, to be run on separate premises by a group which does not itself carry out abortions. – Daily Telegraph

Cameron’s ‘real’ U-turn

David Cameron was forced to make yet another hasty retreat yesterday – fortunately for the country, he was only reversing a Mini. The Prime Minister was behind the wheel of the 2,000,000th new-look Mini off the production line at a plant in Cowley, Oxford. He was meant to steer the silver motor on to the assembly area floor. But true to form, the MP for nearby Witney overshot his mark and was forced to back-track and try again. Mr Cameron told workers: “Minis have been a fantastic success story, not just for Oxford but for the UK. For me personally, it’s a bit of a thrill because I don’t get to drive any more, even though it was only 20 yards.” – Daily Mirror

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UNCUT: It was the Tories that broke Britain

31/08/2011, 03:43:55 PM

by Kevin Meagher

What was Labour’s problem with the concept of “broken Britain”?

The weekend before last, Tony Blair became the latest Labour voice to scoff at the “high-faluting wail” about a country that has “lost its way”.

Granted, the offending phrase is the offspring of David Cameron, and his erstwhile chums at News International, so comes preloaded to cause disdain to some on the left.

But we, too, used to believe Britain was broken. We used to endlessly criticise the “divided society” of “haves and have-nots” created in the 80s and 90s.

We were right to do so. This Britain was definitely broken when we took over in 1997. No question. We made a good start in fixing it: the minimum wage, tax credits, child benefit rises and investment in public services. Things, to coin a phrase, could only get better.

By 2001 our election slogan was “a lot done, a lot to do”. We recognised that there was still a mountain to climb in piecing our broken society back together. The legacy of 18 years of Conservative rule, was that whole communities and parts of the country had been reduced to a tightly-wound ball of social and economic problems that did not unpick easily. Read the rest of this entry »

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UNBOUND: Wednesday News Review

31/08/2011, 06:59:01 AM

Ed to force a vote

Police cuts could lead to weaker law and order on the streets, Ed Miliband has warned as he called on the Government to “learn from the riots”. Mr Miliband has linked the riots to the need to have more officers on the streets. He wants to put pressure on the Government to reverse cuts to the amount of money given to police forces. He also opposes plans for directly elected commissioners which could cost £100m to implement. Mr Miliband hopes to be able to force a vote in Parliament on the issue – either through Labour’s opposition day debates or if enough members of the public sign a petition. But in the weeks since the riots, the Home Secretary defended the budget cuts and said they were not going to be as dramatic as some feared. While Labour have cited the figure showing the cuts amount to 20% in real terms, Theresa May argues they are smaller in cash terms. – Sky News

Labour leader Ed Miliband plans to force a Commons vote on police cuts to flush out Tory rebels and reveal Government splits. The move comes after Mr Miliband, 41, launched a new attack on Chancellor George Osborne’s decision to slash 20% from forces’ budgets. The Labour chief said it was “reckless” not to rethink the cuts in the wake of the riots that swept England earlier this month. The cost reductions will mean a 16,000 drop in officer numbers and a drastic fall in civilian police staffing. Labour may use an e-petition to trigger a Commons debate on cuts. Strategists believe many Tory MPs will not vote for the cuts, causing embarrassment for PM David Cameron. Those who do are likely to face a backlash from angry voters. – Daily Mirror

Mitchell is caught with his papers down

International Development Secretary Andrew Mitchell was pictured holding the document as he left Downing Street. He had been at a meeting of the National Security Council, chaired by PM David Cameron. The papers welcomed Afghan president Hamid Karzai’s announcement that he will stand down in 2014, stating: “This is very important. It improves Afghanistan’s political prospects very significantly. We should welcome Karzai’s announcement in private and in public.” Mr Mitchell is not the first prominent figure to accidentally show secret information. In 2009, Bob Quick was forced to stand down as Britain’s most senior counter-terrorism officer after he revealed details of an operation to foil an al-Qaeda plot. The year before, then housing minister Caroline Flint was pictured entering Number 10 with a briefing paper predicting property prices were set to plunge. – the Sun

The warning from the World Bank was disclosed in a private Cabinet briefing paper which also showed the British Government welcoming the decision of Hamid Karzai to step down as Afghan president. The paper was prepared for yesterday’s meeting of the National Security Council by officials working for Andrew Mitchell, the International Development Secretary. The document was photographed as Mr Mitchell carried them out of the meeting uncovered. Much of the document refers to an ongoing dispute between the Afghan government and the International Monetary Fund. The IMF is reviewing its support for the Kabul government over allegations of widespread corruption. In April, Britain stopped its payments to the main Afghan reconstruction fund. Mr Mitchell’s note showed that the World Bank has said that unless the dispute is resolved soon, the “transition” process, where the Afghan government takes responsibility for security and Western troops gradually withdraw, will be jeopardised. “The World Bank have told us that the suspension of UK and other [donor] funds to the Afghan government will soon begin to destabilise [activities] essential for successful transition,” the note said. – the Telegraph

The Coalition is split over banking reform

Conservative and Liberal Democrat ministers are at loggerheads over plans for sweeping reforms to Britain’s banks aimed at avoiding another taxpayers’ bailout in a future financial crisis. The Business Secretary Vince Cable is demanding the immediate introduction of proposals to force the banks to ring-fence their high street and riskier investment arms that are due to be published by the Independent Commission on Banking on 12 September. But David Cameron and George Osborne, the Chancellor, are sympathetic to the banks’ demand for them to be given several years to build the “Chinese walls” to be proposed by the commission chaired by Sir John Vickers – which could see the reforms delayed until after the next general election. Nick Clegg is backing Mr Cable and the timing of the reforms threatens to provoke a power struggle at the top of the Government. – the Independent

Tories and Coulson avoid an inquiry

The Conservative party will not face an official inquiry into allegations that it broke electoral law by failing to declare News International‘s payments to its former head of communications, Andy Coulson, after the elections watchdog concluded that there was insufficient evidence of a breach. The Electoral Commission had been asked to investigate a series of payments amounting to a six-figure sum made to Coulson by News International in the months after he arrived at Conservative campaign headquarters in 2007, as well as a company car and health insurance he received for three years. Tom Watson, the Labour MP and member of the Commons culture select committee, had raised concerns that the money could have amounted to an undeclared donation to the party. The revelation that Coulson received the severance payments from News International while working for the Conservatives put renewed pressure on the party, which had previously denied that he was paid by anyone else while employed by them. – the Guardian

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UNBOUND: Tuesday News Review

30/08/2011, 06:56:01 AM

Housing crisis

The National Housing Federation said the number of property owners will drop to just 63.8% as house prices soar, compared to 72.5% in 2001. The study says rising prices, the need for huge deposits and a tightening of lending criteria will force ownership numbers down. It also predicts prices in the rental market will increase sharply as people struggle to own their own home. The group, which represents housing associations in England, says a shortage of homes in the UK is also to blame. Housing minister Grant Shapps said the government is aiming to deliver on its promise of 170,000 new homes in the next four years, coupled with encouragement of lenders to help first time buyers. However the NHF chief executive David Orr says the market is “dysfunctional” and warned: “Home ownership is increasingly becoming the preserve of the wealthy and, in parts of the country like London, the very wealthy.” – Sky News

The housing market is in crisis as house prices soar and ownership levels tumble, a forecast warned yesterday. Ownership in England will fall to 63% in the next decade from a 2001 peak of 72.5%, the National Housing Federation, which represents housing associations, said. It blames an under-supply of homes, big deposits and stricter lending rules. Oxford Economics, which was commissioned to produce the forecasts, expects a 20% rise in house prices, to £260,304, and private rents, to £582 a month, by 2016. About 4.5 million people are on waiting lists for social housing and only those in desperate need have a chance of being allocated a house. Federation chief executive David Orr demanded more Government investment to build affordable housing. – Daily Mirror

In England, 67.8 per cent of people currently own their home. London will see the biggest drop over the next ten years, from about 50 per cent to 44 per cent in 2021, while the North-East will be the only region to see an increase, rising from 66.2 per cent to 67.4 per cent. Today, the typical first-time buyer has to save £26,346 to get a mortgage – the equivalent of 20 per cent of the value of their home – according to the Council of Mortgage Lenders. Four years ago, they needed only a deposit of 10 per cent. However, Mr Orr blamed builders, not banks, for the housing crisis. ‘Despite the overwhelming need to increase supply, house building has slumped to a 90-year low, plunging the country even deeper into the mire,’ he said. House prices and rent are both predicted to rise by about 20 per cent over the next five years. This would mean the average tenant paying £1,152 more per year. – Daily Mail

Crossrail delay to stop another Bombardier

Britain’s next train manufacturing contract could be awarded to a UK-based business after the £16bn Crossrail project delayed a competition to build new carriages. The move reduces the chances of a repeat of the Bombardier row, where the company’s Derby factory missed out to a German rival for a £1.4bn government contract. As a consequence of the delay, the Crossrail tender will include recommendations from a government review of public procurement that was announced in the wake of the Bombardier decision. Crossrail said the primary reason for pushing the award of the carriage contract from late 2013 to 2014 was to save costs, but said it would also allow “the conclusions of the government’s review of public procurement to be taken into account”. In a carefully worded statement, Crossrail indicated that a UK-based business will be in a stronger position for the new contract than it was in the Thameslink contest. – the Guardian

Cash for access returns

David Cameron has been accused of holding “cash for access” meetings with the head of a public affairs firm. As Tory leader he pledged to end the “far-too-cosy relationship between politics, government, business and money”. But since becoming Prime Minister he has twice held private talks with Conservative Intelligence boss Tim Montgomerie without any officials present, previously secret records show. The company charges clients up to £2,500 a year for advice that includes briefings on government policy and the “dos and don’ts” of tapping-up ministers. The talks came to light when Mr Cameron was forced to publish details of all his meetings at the height of the phone-hacking row. Labour MP John Mann said: “This revelation totally shatters his promise to clean up Westminster. It is old fashioned cash-for-access and lobbying dressed up in a new guise.” – Daily Mirror

Funding cap would ruin Labour

Labour could face financial ruin under plans being developed to cap the biggest donations to political parties, a Guardian analysis shows. The independent standards watchdog is said to have agreed to recommend a new limit on donations, introducing an annual cap with figures ranging from £50,000 to £10,000 being considered. Such a move, in an attempt to clean up political funding, would end the six- and seven-figure donations to the Labour party from its union sponsors, as well as the Tories’ reliance on the richest city financiers. An analysis of five and a half years’ worth of donations to the parties reveals the move would most dramatically affect Labour’s funding base. If the £50,000 limit had been in place over the period, Labour’s donations would have been reduced by 72%, the Conservatives‘ by 37% and theLiberal Democrats‘ by 25%. – the Guardian

Japan’s new PM

Japan’s parliament elected Yoshihiko Noda as the country’s new prime minister Tuesday, making him the country’s sixth new leader in five years. Noda won 308 out of 476 possible votes. The prime minister-elect will officially take over his new post after a ceremonial endorsement by Japan’s emperor, which is expected to happen Wednesday. Ahead of the vote, former Prime Minister Naoto Kan officially submitted his resignation, as did his Cabinet, clearing the way for Noda’s election. The Democratic Party of Japan, the country’s ruling party, picked Noda as its new leader on Monday. He served as finance minister in Kan’s cabinet. In his first speech as party leader, Noda called for party unity to tackle Japan’s massive problems. – CNN

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