Friday, 15 October 2010

NESV completes takeover of Liverpool – allegedly

  • 16 April: Club put up for sale by Hicks & Gillett
  • 4 October: Club receive two "excellent bids", one from NESV, one from Asia
  • 5 Oct: Hicks & Gillett seek to remove Purslow & Ayre from Liverpool board
  • 6 Oct: Board agrees to sell club to NESV for £300m
  • 8 Oct: Premier League clears NESV to continue with takeover
  • 12 Oct: Hicks & Gillett lawyers admit breach of RBS contracts by trying to sack board members
  • 13 Oct: High Court rules against Hicks & Gillett, allowing NESV sale
  • 13 Oct: Hicks and Gillett gain restraining order on the sale in Texas court
  • 14 Oct: High Court rules Hicks & Gillett injunction is ineffective
  • 14 Oct: New hearing begins in Dallas, adjourned until Friday
  • 15 Oct: Hicks and Gillett withdraw TRO, enabling NESV to confirm their £300m purchase of Liverpool Football Club 

82197112SF019_LIVERPOOL_V_W

New England Sports Ventures have completed their £300m takeover of Liverpool. The owners of the Boston Red Sox have taken control of the club after Tom Hicks and George Gillett were defeated in their legal battle to stop the takeover.

John W Henry, the principal owner of NESV, appeared with the club's chairman, Martin Broughton, in the foyer of their lawyers, Slaughter & May, this afternoon. "I am proud and humbled," Henry said. "We have a lot of work to do, and I can't tell you how happy I am that [the deal] has been completed. We're here to win. We have a tradition of winning. We'll do whatever we need to do."

Henry said that he would not, as had been rumoured, be at Sunday's Merseyside derby at Goodison Park. "I think it's better for our first experience with the supporters to be at home," he said.

Thursday, 14 October 2010

Queen cancels staff Christmas party

The Queen has scrapped a Christmas party for her staff because of the "difficult financial circumstances" facing the nation. Every two years the Queen pays for a celebration at Buckingham Palace for the 600 members of the Royal Household. But a spokesman said: "The Queen is acutely aware of the difficult economic circumstances facing the country. It was decided it was appropriate for the Royal Household to show restraint and not hold the party this year."

blogpic (42)

The Sun newspaper claims the party would have been held on 13 December and would have cost around £50,000. At previous Christmas parties the Queen, Prince Philip and other members of the Royal Family have mixed with staff and even hit the dancefloor. Philip is said to be heard practising Ring My Bell for weeks prior to the event.

Ding dong.

David Cameron to intervene over cold weather payments

David Cameron is to make a late intervention to block the plans of the work and pensions secretary, Iain Duncan Smith, to cut emergency cold-weather payments worth £25 a week to £8.50. The payments go to pensioners and less well-off people to compensate for high fuel bills during exceptionally cold weather periods.

05

In a sign of the confusion surrounding the last-minute haggling before next Wednesday's spending review, one part of Whitehall said there was no possibility of retaining cold-weather payments at £25 a week, saying the payments had been a pre-election bribe by Gordon Brown for which he knew there was no money. The former prime minister had raised the payment from £8.50 a week to £25 a week in the last two years. However a government source said: "David will not want to see cold-weather payments like these cut back down to £8.50 for some of the most poor and vulnerable in society. He will make sure this does not happen."

A statutory instrument on the payments for this winter, introduced into the Commons on Monday, failed to include the clause specifically raising the weekly payment to £25, so in effect cutting the payment to £8.50. The payments are handed out if the outside temperature drops to 0C or below for seven consecutive days. The money goes to those who qualify for pension credit or income support. The scheme is due to come into force on 1 November. Ian Austin, Labour MP for Dudley North, said tonight: "The prime minister has to come clean whether he is really willing to let four million of the poorest pensioners have their payments cut by two-thirds. Would that be fair?"

Other Whitehall sources said the decision on cold-weather payments was wrapped up in a wider review of welfare due to be announced next week. There are suggestions that ministers are reviewing the separate tax-free winter fuel payments, which, at the moment, are given to most people aged over 60. The payments, worth £250 a year, cost a total of £2.7bn. The qualifying age for these payments is already due to rise to 65 by 2020, in line with an increase in the pensionable age.

Cameron refused to say at prime minister's questions whether he was planning to change the qualifying criteria for these payments in the spending review. But some Cabinet ministers have said that as these are universal payments, paid to the rich as well as poor, they do little to tackle fuel poverty.

Wednesday, 13 October 2010

Ed Miliband's first PMQs



Tube maintenance staff vote for industrial action

Maintenance workers on London Underground have voted in favour of industrial action short of a strike in a row over cuts, it was announced today. The Rail Maritime and Transport union said workers voted by 88% in favour of action on a turnout of over 50% amid claims of safety-critical cuts in spending. Up to 800 former employees of Metronet are involved in the dispute, which is separate to the row over ticket office job cuts which has led to two 24-hour strikes.


General secretary Bob Crow said: "We have warned repeatedly that London Underground/Transport for London's cuts plans are playing fast and loose with safety and will turn the tube into a death trap. It is a scandal that the London Mayor, Boris Johnson and his transport officials have chosen to ignore those warnings. The anger of our members, who carry out the safety-critical function of maintaining the Tube fleet, at the cuts being imposed from above is reflected in this massive vote for action. We remain available for talks but the current cuts to Tube safety must be halted before we have a tragedy on our hands. RMT members have been forced into a position where they have no choice but to take action on behalf of Londoners who depend daily on a safe transport system."

LU officials met with leaders of the RMT and Transport Salaried Staffs Association at the conciliation service Acas yesterday in a bid to avert fresh strikes in the ticket office jobs row. An Acas spokesman said: "The parties are currently considering proposals put forward by Acas and we expect a response to this in the very near future."

LDP

04

Nick Clegg and Vince Cable should resign over tuition fees

Baroness Jenny Tonge, a former frontbencher, said Mr Clegg and Mr Cable, along with other ministers should not support the government in its plans to introduce higher tuition fees. She said: "Those Lib Dem ministers who signed the pledge should resign rather than betray their principles."

01

Following proposals from Lord Browne over the future of university funding Mr Cable admitted on Tuesday that it would not be possible to stick to the promise to scrap tuition fees made by his party in April this year - even though it was one of the central tenets of the party's manifesto. However, he has suggested that charges will be capped at £7,000 per year. Mr Cable explained: "The road to Westminster is covered in the skidmarks of political parties changing direction."

Lord Browne recommended that the current £3,290 cap on fees should be lifted - and raised the prospect that institutions could charge as much as £12,000 a year for some courses. In a statement to MPs, Mr Cable said: "The Government endorses the main thrust of the report but we're open to suggestions from inside and outside the House over the next few weeks before making specific recommendations to Parliament, with a view to implementing the changes for students entering higher education in autumn 2012."

The Coalition could be at risk of a rebellion by Lib Dem MPs unwilling to accept the new plans. Greg Mulholland, MP, said Lord Browne's future for universities was "a compromise that some party people cannot and will not accept". Simon Hughes, the deputy leader of the Liberal Democrats, has warned that young people could be "discouraged from going to university because of the risk of significant debt at the beginning of their working lives".

Royal Mail releases Winnie the Pooh stamps

05 And when you lick them they taste of honey.
No, of course they don’t, stupid.

US ban on openly gay military personnel suspended

A US judge has ordered a nationwide halt to enforcement of the country's ban on openly gay military personnel. US District Judge Virginia Phillips last month ruled that the "don't ask, don't tell" policy was unconstitutional. Under the policy, gay people can serve in the military but face expulsion if their sexuality is discovered. President Barack Obama and some military leaders have called for it to be overturned. A legislative attempt to do so failed in the Senate last month. The US Department of Justice has 60 days to appeal but may opt not to do so.

05The original caption for this photo reads:
"Would you feel comfortable taking a dump next to this man?"

The judge's ruling means that any proceedings under way involving active US service members anywhere in the world must be discontinued, and anyone who was about to be discharged from the service because of "don't ask, don't tell" will earn a reprieve. Her decision pre-empts the outcome of an ongoing Pentagon inquiry into the effect of repealing the policy. That report isn't due out until December, and although Mr Obama had said he would like to see an end to the ban, he is also of the opinion that it should be Congress - and not the courts - which determines military policy.

The dilemma now is that by maintaining that stance and potentially appealing against the judge's decision, Mr Obama's Democratic Party risks alienating the strong support it enjoys from gay rights activists in the run-up to next month's crucial mid-term elections. Last month the ban was also ruled unconstitutional by a federal court in Washington state. A judge there ordered the US Air Force to reinstate a nurse sacked under the policy. Britain, Israel and dozens of other countries allow gay personnel to serve openly which makes the "don't ask, don't tell" policy all the more unfathomable.

Tuesday, 12 October 2010

Claire Rayner

"Tell David Cameron that if he screws up my beloved NHS
I'll come back and bloody haunt him."
1931 - 2010

NHS reforms create risk of failures in care, say health managers

The biggest shake-up of the NHS in 60 years represents a "hazardous journey" with a "real danger of failures in quality of care or finances", said the body representing the health service establishment in its submission to the NHS white paper. The NHS confederation, which represents 95% of NHS bodies and includes chief executives of health trusts and most senior managers, identified "significant risks, worrying uncertainties and unexploited opportunities" in the government's health reforms.

06

Andrew Lansley, the health secretary, unveiled a radical pro-market agenda for the health service in England in July that would permit hospitals to leave public ownership to become "not for profit" companies, hand more consumer powers to patients and allow failing medical centres to go bust. As part of the plan, England's 35,000 GPs will be handed £80bn of taxpayers' money and be forced to form consortiums by 2013. There will be no opportunity to opt out of the new system. Up to 500 consortiums will commission treatment from hospitals on behalf of patients.

Nigel Edwards, acting chief executive of the confederation, said there were "very deep worries" about the transition. "This is the area where people's concerns have been greatest because there is a real danger of failures in quality of care or finances. We are about to embark on a hazardous journey at a time when resources are hugely stretched. The risks are very real indeed," he said. He added: "Radical change [will] require a major shift in culture and the way the NHS does business, as well as a shake-up of institutions. The fact of the matter is that the government is planning to build a very big new machine – at great pace – but no one can be quite sure what will happen when it is switched on."

Giving NHS bodies more autonomy – and taking away the health secretary's powers over the NHS – will mean an unmet public "expectation" that ministers will be unable to "act to deal with problems in individual providers, intervene to deal with variation and respond to public outcry about specific, often detailed issues, relating even to individual patients". The confederation also warned that there was public concern over a postcode lottery in health and that patient choice was not a powerful enough mechanism to change the NHS.

Edwards warns that it "will be exceptionally difficult to deliver major structural change and make £20bn of efficiency savings at the same time … we have major concerns that this will not be possible with 45% management cost reductions." Independent experts have already said the government's ambitious plans to reorganise the NHS will cost almost £3bn.

The new shadow health secretary, John Healey, responded to the confederation's submission, saying: "The £3bn for this reorganisation is money that could be better spent on patients. It is a massive distraction when the NHS needs all efforts to improve patient care and find sound efficiency savings." However, Healey signalled a departure from the line of his predecessor, Andy Burnham, who had opposed virtually everything the government proposed, by saying: "Lansley has the right aims but the wrong reforms."

British media join forces against Murdoch takeover of BSkyB

Fleet Street's highly factionalised newspaper industry today set aside historic differences to join forces in an unprecedented assault against the power of Rupert Murdoch's media empire. The companies behind the Daily Telegraph and the Daily Mail – both supporters of the Conservatives – united with the owners of the Guardian and the Labour-backing Daily Mirror to petition Vince Cable, the business secretary, to consider blocking News Corporation's proposed £8bn full takeover of the satellite broadcaster BSkyB, which trades under the name Sky.

06

Fearful of the combined might of an integrated News Corp-Sky operation, which would include the Sun, the News of the World, the Times and book publisher HarperCollins, the complainants said the "proposed takeover could have serious and far-reaching consequences for media plurality".

The letter, signed by Murdoch MacLennan, chief executive of Telegraph Media Group, Sly Bailey, chief executive of Trinity Mirror, owner of the Daily Mirror, and Andrew Miller, chief executive of Guardian Media Group, was sent to Cable today. The signatories argue against a combined Murdoch multimedia empire that would have a turnover of £7.5bn compared with the BBC's £4.8bn.

They are joined by Mark Thompson, director general of the BBC; Ian Livingston, chief executive of BT; and David Abraham, chief executive of Channel 4. Thompson was the first to publicly call for Cable to review the deal "given the scale of the potential ownership in UK media", in an interview last week with Charlie Rose on the PBS channel in the US.

The document is also backed by a memo prepared by the City law firm Slaughter & May, which sets out legal arguments for the minister to intervene. It presents a political headache for David Cameron's coalition government. His Conservative party came to power with the help of an enthusiastic pre-election endorsement from the Sun – Britain's bestselling newspaper – and other Murdoch titles, but Cable's Liberal Democrats enjoyed no such support.

Cameron also employs the former News of the World editor Andy Coulson as his director of communications. Coulson, whose editorship of the Sunday tabloid remains mired in controversy about phone hacking, is close to key figures in News Corporation's newspapers, led by News International's chief executive and former Sun editor Rebekah Brooks.

The submission is made all the harder to dismiss with organisers including Lord Black, the well-connected former Tory party director of communications, who now works at the company behind the Daily Telegraph; and Paul Dacre, veteran editor-in-chief of the Daily Mail, whose newspaper is regarded as the authentic voice of middle England. Over the past week both the Telegraph and the Mail have been critical of the government's plans to cut child benefit for higher-rate taxpayers, indicating strained relations between the two right-of-centre newspapers and Cameron's government.

Although Murdoch is closely identified with Sky, chaired by his son James, he does not own all of the fast-growing satellite broadcaster. In June News Corporation proposed an £8bn, 700p-a-share buyout out of the 61% of the company it does not own.

The deal must first be approved by regulators. News Corporation is expected to file for regulatory approval with the European commission on competition grounds, but Cable would then have 25 days to choose to order an inquiry into the transaction on public interest grounds, as defined by "media plurality" being compromised. The business secretary is expected to make his ruling within 10 days of the European commission being notified, and his decision will have to be rubber-stamped by Cameron.

The media plurality test – which would be carried out first by the communications regulator Ofcom and then by ministers – is a loosely-defined concept by which Cable would have to be convinced that rival newspapers and broadcasters were at risk of closure or cuts that would damage democratic debate.

What a merger might mean

Matthew Parris and Trevor Kavanagh – columnists for the Times and the Sun – may be regular guests on Sky News, but critics of the proposed News Corporation takeover of BSkyB believe the potential for integration would be far deeper in the event of a full tie-up.

Today, Sky News has an independent editorial structure with channel editors reporting through the satellite broadcaster and its board – and despite the close links between Sky and News Corporation, any sharing of content and journalists has been very limited.

Under a merged company Sky News could be brought more closely into line with the company's UK newspapers. Although the titles are run independently, Rupert Murdoch takes a close interest in each, ringing editors regularly if not daily, and each has a similar political tone – which saw all four back David Cameron before the election.

News Corporation argues that its planned takeover of Sky is "essentially financial" and that it is not driven by cost savings or new business ideas, but Murdoch has taken a keen interest in developing new digital products for the iPad.

In August News Corporation announced plans to develop an integrated digital product, with content from across its US portfolio – including Fox News, the Wall Street Journal and the New York Post. It is hard to believe that a similar idea is not under active consideration in the UK, where for a monthly fee iPad owners will get a new multimedia service – a fusion of print and video beyond the immediate means of most newspapers.

BBC deputy director general Mark Byford made redundant

Mark Byford, the BBC's deputy director general, has been made redundant, as the corporation looks to deliver on a promise to cut back senior management numbers and rein in its much-criticised executive salary bill.

06

Mark Thompson, the director general, is expected to announce that Byford, 52, who has worked at the BBC for almost 32 years, will leave early next summer. Sharon Baylay, the head of marketing and communications, and Lucy Adams, the human resources director, will also step down from the corporation's 10-strong executive board, on which Byford sat. Baylay and Adams will, however, stay in their jobs. The move is the latest attempt by Thompson to show critics that the BBC is willing to make cuts from rank and file staff to key lieutenants, and focus more of the licence fee on delivering programmes and services.

Byford has been a polarising figure, targeted for the scale of his pay packet and pension – he is expected to receive a pay-off of close to £1m when he leaves – but also praised for taking over as acting director general when Greg Dyke resigned over the Hutton inquiry in 2004. Byford joined the BBC in 1979, aged 20, and worked his way to executive board level and a salary package of close to £500,000. His long service also means that he has one of the corporation's most generous pension packages, worth several million.

Byford has often been in the firing line when the corporation has been criticised over salaries and expenses, most recently for claiming £5,000 for flights to South Africa to see the World Cup final. He is in charge of the BBC's journalism, and his responsibilities include editorial policy and planning for the London Olympics. His position will not be filled.

Thompson's announcement comes as BBC management battles to push through reforms to the corporation's pension scheme, and as it faces tough negotiations with Jeremy Hunt, the culture secretary, over the next licence fee settlement. At this year's MediaGuardian Edinburgh TV Festival in August, Thompson pledged reductions "at every level" of the organisation, including the executive board, which led to some speculation that Byford may be a casualty.

After sustained media attention on the salaries of top stars like Jonathan Ross, the BBC last year moved to inform more than 100 of its stars that pay cuts of between 25% and 40% could be in order when contracts are re-negotiated. In August Thompson warned to expect any cuts to go "a good deal further".

Earlier this year, Greg Dyke accused Thompson, his successor, of being overpaid and out of touch, claiming Thompson was on more than twice the salary he had received. In August, Thompson scrapped pension top-up payments to top executives totalling more than £1m a year, a move that will see his £838,000 remuneration package cut by 20%. He is likely to be paid close to £560,000 in the 12 months to the end of March 2011 – closer to the amount he took home in his first year as director general.

Boris Johnson and Lottery Fund announce £5m funding for black cultural centre in Brixton

The Heritage Lottery Fund and Boris Johnson today announced £5m funding for a centre for black history and culture in Brixton, south London. The lottery fund will provide £4m and the mayor of London £1m under the plans to develop the Black Cultural Archives.

06

Johnson said he was pleased to support the development of the centre "which will house a wealth of historical material about the contribution of black people to British society. It will be a wonderful new cultural centre for London, but also for the UK, giving scholars a greater understanding of our country's rich heritage and inspiring people of all ages and communities."

The mayor came under fire earlier this year for slashing funding for a series of high-profile multicultural events, including Black History Month and Africa Day. In a statement, his office said the BCA archive collection numbered over 10,000 historical archive documents, spanning five centuries, from letters and personal papers to periodicals, ephemera and photographs.

"This investment will help turn currently derelict Grade II Raleigh Hall in Windrush Square into a permanent home for BCA's wide-ranging collection of historical material relating to black Britain and the African diaspora," the statement said. Lambeth council will also provide £910,000 over five years, and has given the project a 99-year lease for Raleigh Hall, which will include a reference library for schools, students and the general public.

Matthew Ryder, the chairman of the Black Cultural Archives, said: "The movement of BCA to a permanent, purpose-built home, is itself an historic moment. We believe it will enable the BCA to become a global resource and a leading heritage site in London. It is a very exciting time and the support has been overwhelming."

Councillor Steve Reed, the leader of Lambeth council, said black people would be able to "come and explore their own history" at the new centre, "while people of other backgrounds will be able to come and celebrate the major contribution Britain's black communities have made to our national life and our shared culture".

UK to be re-branded as ‘Tophole’

So Sir Philip Green, the billionaire boss of Bhs, Topshop and other familiar high street names, has supplied the Government with advice on how to make millions of pounds of the fabled "efficiency savings". His basic message is simple. As the biggest customer in the market, with an AAA credit rating, the Government has vast financial clout – but it doesn't use it as ruthlessly as Sir Philip would if he was running it as a business.

05

He recommends the creation of a new super-agency to do all the Government's wheeler-dealing. Every time a public information leaflet is ready to go to press, or a civil servant needs a hotel room booked, a central team of hard-nosed specialists would drive a bargain with the printer or hotelier. But why stop there? Sir Philip has risen from humble origins to become one of the richest men in the country by taking over inefficiently run businesses and turning them round. Perhaps there are other lessons the Coalition could learn from this man's career.

One of the greatest constraints on government is elected politicians' constant need to defer to public opinion, as last week's reaction to the announced cuts in child benefit demonstrated. Sir Philip has had to deal with similar problems in his business career. Eighteen years ago, when he was plain Mr Green, he was in charge of a publicly quoted company called Amber Day. He was accused of running it as a one-man operation in a way that kept shareholders out of the picture. Some major shareholders pulled out, causing the value of the company to drop, and when profits were less than forecast, the board ousted (and paid off) Mr Green.

Since that experience, Sir Philip has avoided being sucked into this shareholder democracy. He has stuck with private companies, where he and his accountants can do what they believe is best without worrying how shareholders might react. The lesson for government is too obvious to need spelling out: get the voters off your back. Instead of the fixed-term parliaments and fewer MPs that the Coalition is introducing, it would be far more efficient and cost-effective to have no parliament and no MPs at all.

That would have the added benefit of making redundant all the ministers, press officers, PR consultants and the rest, who are hired to explain government policy to outsiders. Insofar as it is necessary to publicise what the Government is doing, let celebrities do it. Kate Moss, with whom Sir Philip has worked so long and so well, is almost as old as George Osborne, and much more photogenic. She could be the public face of the Government.

Yet it is a sad fact that no matter how cheap and efficient government becomes, there will be people who continue to carp and complain. Sir Philip's report highlights how the Government spends billions on telephones. Those phones could be put to use. People who criticise could be rung up out of the blue and shouted at in vernacular language that includes generous use of a word beginning with "f".

And when dealing with major opponents such as Ed Miliband, David Cameron could study the example of how Sir Philip conducted his personal relationship with Sir Stuart Rose, the retailer who thwarted Sir Philip's attempt to take over Marks & Spencer. As Sir Stuart recalled: "It did get quite physical one morning on the pavement outside Baker Street. He didn't actually smack me but there was some vigorous grasping of the lapels."

Outsourcing has proved to be an immense cost-saver in Sir Philip's business empire and should be applied more thoroughly across government departments. A question that the Education Secretary, Michael Gove, needs to address is whether state schools actually need a teacher in the classroom. Sir Philip emphasises how conference-calling can reduce civil service costs, but omits to point out how much cheaper it would be if all lessons in state comprehensives were conducted by conference-call by teachers based in low-wage economies in South-east Asia.

Do we need properly paid and highly trained British troops to fight our wars for us? Why can't the Ministry of Defence follow the lead taken recently by Suffolk County Council, and shed all its direct workforce apart from a handful of head office officials who hire troops and equipment when needed from the cheapest available sources? Hiring foreign mercenaries is a practice as old as history.

Obesity is a drain on the public purse. It costs more to employ a fat civil servant than a thin one, because the fat ones need sturdier chairs, use more electricity when travelling in lifts, and so on. It is also well known that benefit claimants spend a greater proportion of their income on food than do most people, from which it follows that if they ate less, they could get by on lower benefits.

This is surely an argument for a publicity campaign, fronted by Fearne Cotton, requiring everyone in public service, especially those working in benefit offices, to wear those popular Love My Bones tee-shirts from Topshop. That would get across the message that a bit more anorexia could be a saving for the taxpayer. As Kate Moss once said: "Nothing tastes as good as skinny feels."

But actually these are details. Let's think really big. Let's ask the most fundamental question of all: why should the Government spend any money on anything?

The reason that the Government has to meet the cost of defence, health, education etc in the UK is that it is itself UK-based and therefore has a responsibility for the welfare of those who live here. But were it to transfer itself for legal purposes to a foreign jurisdiction, some little tax haven somewhere, surely it could continue to receive tax revenue whilst maintaining that, as a foreign entity, it is not responsible for contributing to the cost of UK public services. That £149bn of government debt would disappear in no time.

If David Cameron needs advice on how this can be done, Sir Philip's wife, Cristina, can help. She is in Monaco, looking after their untaxed billions.

There is no such thing as a painless efficiency saving.

Andy McSmith, the Independent
Cartoon by Steve Bell, the Guardian

Philip Green's prescription for saving money

Problem: 71,000 civil servants have permission to spend £1,000 a month on everything from computers to stationery and travel without authorisation. One department paid £73 for a box of paper while another paid just £4.

Solution: All transactions must have prior authorisation and most purchasing should be done centrally through one contract at the cheapest price, imposing the Government's terms on suppliers.

Problem: Public sector property (excluding the Ministry of Defence and the NHS) occupies 2 billion square feet and costs the taxpayer £12.4bn a year. One government agency took out a 15-year lease on a building that was 30 per cent larger than it needed despite alternative premises being available nearby for £15m less.

Solution: Government property should be managed centrally. Property experts should be brought in to reduce space occupied and rent paid.

Problem: Budgets are only reviewed at the highest level and rarely against performance targets. Departments are not incentivised to spend less than the cash budgeted.

Solution: A team of three or four people, with financial and commercial expertise, should review departmental spending with an emphasis on efficiency and accountability. A quarterly review process, including spend to date and forecast, should be submitted to the centre, detailing spend against budget.

Dave Brown, the Independent

Monday, 11 October 2010

Banksy does the Simpsons



I'm afraid the video has been withdrawn from Youtube due to a copyright claim by Twentieth Century Fox! It's still on the BBC News Channel however, you can watch it here.

Sha-doh!

01 Adams, the Telegaph

Meanwhile, back at Chequers …

01Martin Rowson, the Guardian

Consumer Focus, the Office of Fair Trading and Consumer Direct to be abolished

Consumer Focus, the body set up by the last government to represent consumers and challenge companies, will be scrapped, the BBC has learned. Other consumer bodies facing abolition include the Office of Fair Trading and Consumer Direct. Their activities will be taken over by Citizens Advice and Trading Standards offices. The government refused to confirm or deny the changes ahead of an imminent announcement on public bodies.

Speaking on Radio 4's Money Box programme, Consumer Focus chief executive Mike O'Connor, who warned his staff on Wednesday that their future was in doubt, would not confirm the move publicly. "Government has to take this decision and we wait to see what they have got to say." But he defended the value for money of his organisation. "We cost the taxpayer in our core grant about £6m a year. Just last week we won a return to consumers of over £70m from the energy companies. And three months ago through our super complaint we changed the ISA rules so savers will get an extra £15m a year." NPower has recently refunded £70m to 1.8 million customers who it had overcharged for gas in 2007. Banks will pay interest eight days earlier on ISAs that have been moved.

However, pressure group the Taxpayers' Alliance, which wrote to Business Secretary Vince Cable on 8 October calling for Consumer Focus to be abolished, says it duplicates work done by private organisations such as the Consumers' Association. Speaking on the programme its director Matthew Sinclair said Consumer Focus was also too close to government to be fully effective. "It does fulfil a function which is replicated in the private sector. It's not representing consumers because it can't speak against government," he said.

Mike O'Connor said that no other organisation had its powers or could be so effective. "The Consumers' Association does not have the powers which we do. We have a vital power, we can make companies and regulators and government give us information so you may be asking people to do things but without the powers that we have."

The BBC has also learned that Citizens Advice is being lined up to take over the activities of Consumer Direct, which offers free help over the phone to consumers who are victims of scams or want advice on their rights. The Office of Fair Trading, which took the long running but ultimately unsuccessful case over the banks' overdraft charges, will be merged with the Competition Commission. The government has discussed passing the OFT's consumer activities - including court action - to trading standards departments in local authorities.

Mick McAteer, founder and director of the Financial Inclusion Centre, told Money Box: "If you take away one of the main bodies whose tasks is to represent consumers I think you will undermine consumer protection." A Cabinet Office spokeswoman said the report on the future of hundreds of public bodies "is likely to happen in the next couple of weeks". She would not comment on the claims that these consumer bodies would be scrapped or merged.