Heron's Eye: 14/01/09

Minister criticised for 'green shoots'
"A government minister was attacked by opposition party members today after she said she could see the "green shoots" of an economic recovery.

The comments by business minister Shriti Vadera come as news that nearly 14,000 jobs have been cut or put at risk this week. Barclays, Jaguar Land Rover and Pfizer are the latest companies to announce hundreds of job losses." [Guardian]

Northern Rock investors tell court they were cheated
"Former shareholders in Northern Rock yesterday accused the government of cheating them of compensation when the bank was nationalised last year.

In the high court, lawyers representing the two largest shareholders argued that the government had unfairly rigged an independent valuation of the bank to ensure investors would end up with next to nothing." [Guardian]

Simon Hoggart's Sketch: Short-selling sermons as God takes on Mammon
"In the House of Lords it isn't always Labour against Tory. Yesterday it was God v Mammon. There was no vote, but I'd say that the mood of the house was largely with God. The archbishop of York, John Sentamu, had asked a question about the short-selling of shares. He has form. In a speech last autumn he described the people who had been short-selling against HBOS, and nearly ruined it, as "bank robbers".

Up against him, representing Mammon, was the new Treasury minister Lord Myners. It was a tough gig. The gap-toothed 59-year-old archbishop has become something of a national treasure, chopping up his dog collar on TV and wearing brilliantly coloured vestments while playing exotic musical instruments. Being rude to him would be like hitting Alan Bennett or calling Joanna Lumley a stupid old bag. It would not make you friends." [Guardian]

Simon Jenkins: A runway for jobs? It's time aviation's bluff was called
"The boss of BAA, Colin Matthews, said this week that a third runway at Heathrow would "only go ahead if strict environmental limits are met". What does he mean, if? They are not met and he knows it. Nothing on earth is going to stop him wanting his runway.

Meanwhile Whitehall is witnessing a truly bone-crunching fight between the immovable object of public interest and the irresistible force of Big Carbon. I am sceptical of most policies put forward in the cause of global warming but for aviation to plead its green credentials is like big tobacco claiming that smoking is good for your health." [Guardian]

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In the Loop: 31/09/08

Petrol price to drivers still not falling as fast as a barrel of oil 31/10/08
“The price of petrol at the pump is not falling as fast as the price of oil from peak levels over the summer, according to Guardian analysis.

The average pump price is falling by about a penny every five days but still has 5.8p a litre to drop if it is to catch up with recent sharp declines in the price of oil.” [Guardian]

Barclays raises more than £7bn from Middle East investors 31/10/08
“Barclays is raising up to £7.3bn from Middle East investors, who could end up owning more than a third of the UK's second largest bank. The move allows the bank to strengthen its balance sheet without taking help from the taxpayer.

The cash injection is coming from the royal families of Abu Dhabi and Qatar, who have both agreed to pump billions into Barclays to bolster its capital ratios. The Qataris, who already own a significant shareholding in Barclays, are providing up to £2.3bn. Once the deal goes through they will own up to 15.5% of the bank.” [Guardian]

People-power a step closer in energy bill 31/10/08
“The prospect of households with wind turbines and solar panels being able to sell power back to the national grid has come a step closer after the government tabled an amendment to a bill that would allow people to generate enough power to serve a community of more than 1,000 people.

The government said 10 days ago it was keen to get the proposal into the energy bill after facing down opposition from power companies concerned that allowing individuals and communities the chance to profit from energy creation significantly altered the market. The measure will be debated in the Lords next week.” [Guardian]

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Grimsdale's Ire: 30/10/08

Gordon Brown urges banks to keep lending 30/10/08
“Gordon Brown today called on the banks to keep lending to small businesses despite the global credit crunch.

The prime minister welcomed a commitment by the European Investment Bank to make £4bn available to provide finance to firms in the UK.” [Guardian]

Alistair Darling urges banks to use £4bn from European Investment Bank 30/10/08
“Alistair Darling today urged the banks to use a £4bn package of support from the European Investment Bank to help small and medium-sized businesses through the credit crunch.” [Guardian]

Card demand 30/10/08
“Gordon Brown yesterday demanded that lenders who provide store and credit cards must change their rules to make it more difficult to repossess homes. The prime minister's intervention came after Shelter warned that up to 5,000 homes repossessed last year - out of a total of 27,100 - were from people who took out "second-charge" loans. These can be people who take out a loan against their home to pay off cards. The Treasury wants the Finance and Leasing Association, which covers the £11bn "second-charge" market, to draw up a code of practice in line with that adopted by the Council of Mortgage Lenders, which stipulates that a lender should take a debtor to court to repossess a property only if they have exhausted other options.” [Guardian]

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Heron's Eye 30/10/08

Throwing out the rulebook 30/10/08
“Alistair Darling and George Osborne gave opposing explanations yesterday for why government borrowing is on the rise. In last night's Mais lecture, the chancellor told a simple story: extraordinary times require extraordinary measures - and what could be more extraordinary than a historic banking crisis? By breaking targets on public debt, the government was being not profligate, but pragmatic. Labour was "spinning a virtuous strategy out of extra borrowing", retorted his Conservative shadow, when really the public finances had been in a mess for years.” [Guardian]

Labour launches attack on George Osborne's economic competence 30/10/08
“Labour today launched an all-out assault on George Osborne, the shadow chancellor, by releasing a dossier that accused him of a lack of judgment (pdf) on the global financial crisis and "schoolboy errors" in his spending plans.

The document highlighted Osborne's early opposition to the nationalisation of Northern Rock and Bradford & Bingley, his support for a Tory report advocating the deregulation of the mortgage market, and his pledges on fuel duty and hospital beds.” [Guardian]

Swinney's still got a real fight on his hands 30/10/08
Ian Swanson assesses the difficulties that the SNP are facing in attempting to introduce the local income tax in Scotland. [Scotsman]

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Grimsdale's Ire: 21/10/08

The government must sort out council tax 08/10/08
Chris Leslie and Sunder Katwala write on the need for Labour to grab the mantle of council tax reform, in order to avoid being outmanoeuvred by recent Conservative taxation policy. [Guardian]

Wealth gap narrows faster in UK than other developed countries 21/10/08
“The gap between rich and poor since 2000 has narrowed faster in the UK than any other developed nation, according to a major international study released today. The Organisation for Economic Cooperation and Development said the decline of inequality in Britain between 2000 and 2005 was "remarkable"” [Guardian]

Straight to the specialist: Johnson cuts GP referrals 21/10/08
“Patients with back pain will be able to access free treatment from NHS physiotherapists without having to go through a GP, under plans to be unveiled today by the health secretary, Alan Johnson. In a substantial extension of patient choice, he also wants to give people an opportunity to book appointments with speech therapists, dietitians, podiatrists and other health professionals.” [Guardian]

Lloyds chief tells staff: you'll still get bonuses 21/10/08
“The chief executive of Lloyds TSB, one of the banks participating in the £37bn bank bail-out, has promised staff they will receive bonuses this year despite Gordon Brown's promise of a crackdown on bankers' pay following the investment by taxpayers. Eric Daniels has told employees that the historic government intervention will not change the behaviour of Lloyds, which is in the throes of the rescue takeover of HBOS brokered by the prime minister.” [Guardian]

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In The Loop: 21/10/08

Jam yesterday, debt today 21/10/08
Ashley Seager puts the level of current and future national debt into perspective. [Guardian]

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Heron's Eye: 20/10/08

Labour fails to win poll boost from banking crisis 20/10/08
Gordon Brown is winning praise but not votes for his handling of the financial crisis, according to a Guardian/ICM poll published today. It shows the Conservatives maintaining a double-digit lead, enough for a Commons majority, despite the transformation of the prime minister's reputation at Westminster. [Guardian]

Gordon Brown defends level of national debt 20/10/08
Gordon Brown today defended the level of Britain's national debt – claiming it is "considerably lower" than a decade ago. The prime minister told MPs that it was because the government had repaid so much of its debt in previous years that it was able to borrow more now. [Guardian]

Financial crisis leaves David Cameron with few options 20/10/08
Last week, in an article about what David Cameron and his circle were thinking about the political consequences of the global financial crisis, ConservativeHome reported: "The Tories are not worried about being largely out of the news." [Guardian]

David Cameron is back - but he's storing up trouble for himself with this speech 20/10/08
“Is David Cameron at liberty to attack Gordon Brown's economic record as chancellor and prime minister? Of course he is. That's what we pay an opposition for: to oppose. He also produced a joke I hadn't heard.

Yet to hear some of this morning's talk about breaking the "political truce" during a financial crisis, you'd think he'd done something terrible like push the Brown kids off their tricycles and grazed their tiny knees.” [Guardian]

Salmond blames 'sub-prime minister' for banking disaster 20/10/08
Alex Salmond yesterday blamed Gordon Brown for the economic "calamity" that has forced the government to find £200bn to bail out the UK's banking sector.

The Scottish National party leader accused Brown of "presiding over the biggest economic reverse for a generation", deriding him as the "sub-prime minister". [Guardian]

'Insolvency arc' may influence Scottish poll 20/10/08
Michael White on the effects of the current financial crisis on the SNP’s political fortunes. [Guardian]

Darling invokes Keynes as he eases spending rules to fight recession 20/10/08
The Treasury confirmed yesterday it intends to fast-track spending planned for future years as Alistair Darling signalled that he will use next month's pre-budget report to relax Labour's long-standing fiscal rules to head off the worst effects of the recession.

Over the weekend the chancellor indicated that the government would seek to reflate the economy with a period of targeted spending on large infrastructure projects. Darling said yesterday that the economic thinking of legendary economist John Maynard Keynes was coming back into vogue. [Guardian]

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Grimsdale's Ire: 20/10/08

Many in Ireland are wary of economic costs of absorbing Ulster 17/10/08
Henry McDonald on political deadlock in Northern Ireland not being resolved and how Dublin and Westminsters’ focus on the financial crisis is leading to political stalemate. [Guardian]

What's the point of regional ministers?
“It's not my question, but it's a good one. Andrew MacKinlay asked it in the House of Commons this afternoon. According to the Press Association report, this is how he put it:

‘I don't want to be unhelpful or unkind, but will you tell us what the regional ministers do … There is no scrutiny. I genuinely don't know precisely what they are supposed to do, and bearing in mind now we are told that there are some assistant regional ministers as well, those of us who are in the minority of never having been invited to do anything are beginning to wonder what we have done wrong.’” [Guardian]

Don't forget the third sector
Stephen Bubb on the need to continue development of the Third Sector through sheltering it from some of the more damaging effects of the economic downturn. [Guardian]

David Cameron proposes national insurance cut for small businesses 20/10/08
"David Cameron today called for very small businesses to be given a temporary tax cut of 1p on national insurance contributions to help them deal with the economic downturn.

In an interview on the Today programme on BBC Radio 4, the Conservative leader said that a tax cut of this kind — costing the Treasury £225m — could offer immediate help to small firms struggling to pay their bills." [Guardian]

Home Office trying to persuade unions to drop opposition to ID cards 20/10/08
"The Home Office is in active talks with trade unions in an attempt to persuade them to abandon opposition to the imminent introduction of compulsory ID cards for airport workers.

Meg Hillier, the minister in charge of ID cards and passports, today promised there would be no delays to the £4.7bn programme despite the threat of a UK economic recession." [Guardian]

Digital TV switchover will hit rural viewers 20/10/08
"The culture secretary, Andy Burnham, has been accused of neglecting 2.5 million households in rural areas after it emerged they would get less than half the number of TV channels broadcast to the rest of Britain after the switch to digital services.

Opposition MPs believe the government is discriminating against rural communities because ministers have refused to make sure that all the broadcasters using the digital service Freeview offer a full service for every home, once the analogue television signal is finally switched off in 2012." [Guardian]

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In The Loop: 15/10/08

Gordon Brown announces financial summit for world leaders 15/10/08

“A summit of world leaders - possibly to include the new president-elect of the United States - will take place by the end of the year, Gordon Brown announced this afternoon as he unveiled new British proposals to avoid another collapse of the financial system.” [Guardian]

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Grimsdale's Ire: 15/10/08

Councils and ministers to discuss fallout from banking crisis
“Town hall officials will meet ministers later today to discuss help for 116 councils affected by the near-collapse of the Icelandic banking system.

The Local Government Association, the umbrella body for councils in England and Wales, revealed yesterday that a total of 116 councils had invested money in the beleaguered banks, to the tune of £858.8m.” [Guardian]

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Heron's Eye: 13/10/08

Government set to scrap 42-day
“The government is tonight expected to tear up its plans to detain terrorism suspects for up to 42 days without charge after peers overwhelmingly rejected the proposal.” [Guardian]

UK could emerge stronger from banks crisis, says Gordon Brown
“Britain could emerge from the financial crisis stronger rather than weaker, Gordon Brown said today as he unveiled a £37bn bailout of three of the country's biggest banks.” [Guardian]

UK forces no longer needed in southern Iraq, says Maliki
“British forces are no longer needed to maintain security in southern Iraq and should leave the country, the Iraqi prime minister said in an interview published today.” [Guardian]

Those caught with marijuana for a second time will be fined £80 and after three strikes will be arrested when drug returns to class B

"Cannabis users face new penalties when the drug is upgraded to class B from January next year, the home secretary said today. Jacqui Smith said that those caught with cannabis for a second time would be fined £80 and after three strikes would be arrested." [Guardian]

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EU Commission: Competition - 13/10/08

Commissioner Neelie Kroes hosts high-level conference on the benefits to the economy and consumers of competition policy (on 13/10)
The benefits to the economy and consumers of competition policy will be the focus of a high-level conference in Brussels on Monday 13 October hosted by European Commissioner for Competition Neelie Kroes Commissioner Kroes intends to highlight the substantial and proven benefits to consumers of the EU's competition policy, comment on recent problems in financial markets and set out the concrete benefits of the state aid rules (in particular in limiting risks of beggar thy neighbour policies which could aggravate present problems). French Prime Minister François Fillon will address the conference, together with a number of other high-level speakers.
[Europa]

In The Loop: 01/08/08

John Hutton “disappointed” at EDF failure

Mr Hutton commented on the failure EDF and British Energy to agree a deal, saying that he was "disappointed". [PolitcsHome]

Conditions for a rebalanced economy

Samuel Brittan writes in the FT on the need for some perspective on the state of the current economy. He highlights the size of the financial market in the UK (12%) and how growth is not as low as people suggest, pointing towards the still high levels of growth in many developing economies. [FT]

A symbolic nutcracker will not solve the crunch

Stuart Fraser, chairman of the policy and resources committee, City of London Corporation on the need for the EU commissioner, Charlie McCreevy to display more caution in responding to the credit crunch. [FT]

Government and Web 2.0

The Government has launched BuildingDemocracy.co.uk, combined with £150,000 for the top ten ideas submitted on how to strengthen democracy in the UK. [LabourOutlook]

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