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The front pages of the Guardian and Times examine the new spending cuts announced yesterday by Chief Secretary Danny Alexander. According to the Guardian, the coalition government scrapped £2 billion worth of projects completely including nearly £1 billion in programmes to help the unemployed. A further £8.5 billion of projects have been suspended and will be revised in the autumn spending review, including £7 billion by suspending plans to purchase a new fleet of search and rescue helicopters. Liam Byrne, the shadow chief secretary to the Treasury, told his opposite number: “Both the country and the Liberal Democrat party beyond will be aghast this afternoon at your attack on jobs, your attack on construction workers, your attack on the industries of the future and the cancellation of a hospital.”
The Times calculates that the total savings are £11.5 billion reports because Danny Alexander found a further £1 billion hole in the public finances “where Labour had committed the Government to programmes financed by non-existent underspending”. The paper outlines how Mr Alexander’s axe fell three times on Sheffield, potentially costing the constituency of Nick Clegg, the Deputy Prime Minister, more than £100 million. Left Foot Forward yesterday mourned the passing of the Conservative’s pre-election promise to find “efficiency savings” in 2010-11.
In an article for the Guardian, David Miliband today calls for an end to the taxpayers’ subsidy of private schools to save £100m. He writes: “Under the Tories, the poorest will end up paying the price of the mistakes of the richest. We should not be afraid of the mansion tax on £2m houses or extending the bankers’ bonus tax, rather than charging the poorest with VAT rises. And the idea of taking money from the poorest children while continuing to subsidise private schools is just wrong.” Independent schools are eligible for charitable status providing them with tax benefits. Meanwhile Ed Balls made his own attack on the coalition prior to the budget, launching an online petition called “stop the VAT bombshell” – using an image of Nick Clegg with a Lib Dem poster which that party ran in the election. In the Guardian, Ed Balls writes, “raising VAT is hugely unfair.”
The front pages of the Telegraph and Express have more more details on future spending cuts outlining that millions of families will lose child tax credits. The Telegraph reports that the Government is considering restricting the benefit to parents with a combined income of no more than £30,000, or possibly as low as £25,000 – this would mean 2.1 million families currently entitled to claim credits would no longer be able to do so. Nick Clegg said yesterday that the current child tax credit scheme was “madness”. In February, Theresa May wrote that Labour’s claims it would take away tax credits from families with incomes of £31,000 or more was a “lie”. The Express writes that, “concern was growing last night that Middle Britain will once again be forced to bear the brunt of the financial punishment.” Left Foot Forward asked yesterday whether the coalition could be trusted on families.
The Financial Times reports that David Cameron’s proposed cap on immigration will “stunt economic growth and cost families around £300 a year”. Using the Government’s own forecasting model the paper “puts an economic price on Mr Cameron’s tougher approach to immigration.” The cut in the official growth forecast this week did not take account of Mr Cameron’s promise that net immigration will be reduced “to the levels of the 1990s”, when average net immigration was close to 60,000. Instead, the new forecasts were based on output predictions assuming that net immigration would be stable at 140,000 a year. Government officials confirmed the consequences would be detrimental to potential economic growth.
The row in the US over the BP oil spill rumbles on with the Guardian and FT front pages examining chief executive Tony Hayward’s appearance on Capitol Hill. Mr Hayward tried to assuage public fury over the spill, saying he was “deeply sorry” for it and was “devastated” by the loss of 11 lives in the explosion. The FT reports that, “Mr Hayward spoke slowly and carefully throughout the seven-hour hearing, but his efforts did not placate the committee, which expressed mounting frustration at his inability to answer their questions about what caused the spill.” Mr Waxman, chairman of the full energy committee, said: “You’re not taking responsibility, you’re just kicking the can down the road and acting like you have nothing to do with [BP]. I find that irresponsible.” The Guardian says, “Tony Hayward stonewalls Congress” while the Times goes with, “BP boss sits on his hands as anger explodes”.
25 Responses to “Politics Summary: Friday, June 18th”
Billy Blofeld
@Mr Sensible
Maybe you or someone else can go through each of the cuts and tell us why they are a disgrace?
I went through each of the cuts and can’t see a problem.
Mr. Sensible
Billy, how is getting rid of the free swimming creating a good legacy for after the olimpics?
And it seems strange that a government that says it needs to cut all this can still find the money to, among other things press ahead with the Free Schools rubbish?
http://www.guardian.co.uk/politics/2010/jun/18/michael-gove-coalition-plan-free-schools
Where’s the money, where are the pupils? We’re always told that roles are falling.
And I think it’s very telling that 1 of the people responsible for the system in Sweden said it wasn’t improving standards.
It is not all those services that are waste, it is policies like this that are waste.
Elsewhere, Will, did you see in the Guardian how George Osborne had got the chance to hold Gladstone’s Red Box?
http://www.guardian.co.uk/politics/2010/jun/18/george-osborne-budget-gladstone-red-box
What’s all that about; is Osborne trying to divert attention from these unnecesary cuts?
Billy Blofeld
@Mr Sensible
Free swimming – it isn’t free. It costs someone, somewhere to provide it.
Why should the government take money off us – and then tell us we can have “free” swimming? I could have decided how to use my money better myself – especially since I prefer roller skating to swimming…. maybe…
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