Vince Cable Tells Shareholders: Throw Out Bank Cheats

THE GUARDIAN: Bosses preside over 'moral quagmire', says business secretary, as Barclays chief Bob Diamond is summoned to face MPs

Vince Cable has urged shareholders in UK banks to rise up and purge their companies of corrupt executives, who he says have allowed "systemic abuse" to take root in the banking system.

The business secretary, writing in the Observer, says it is now clear that no one at Barclays Capital, the investment bank that triggered the market-rigging scandal, is prepared to take responsibility for endemic corruption, so the ultimate owners of banks must take matters into their own hands.

Describing the problems in UK banking as "a moral quagmire of almost biblical proportions", Cable says the government is taking urgent action, including creating a clearer separation between "casino-style investment banking" and retail banking on the high street. Ministers will this week begin a review into the libor system under which banks lend to each other and Cable hints that US-style criminal sanctions, such as the threat of prison terms, could be considered against those who abuse it.

But he says shareholder power will be crucial. "Regulators are a backstop: they don't own banks," he writes. "The governance at the top of our leading banks has been shown to be lamentably weak. No one at the top of Barclays will take responsibility for systemic abuse.

"Shareholders, the owners, have a major responsibility here. I am bringing in legislation to strengthen their control over pay and bonuses, through binding votes, but shareholders have to get a stronger grip on weak boards and out-of-control executives." » | Toby Helm, Jamie Doward and Jill Treanor | Saturday, June 30, 2012

Budget 'for the Rich', Say Critics

BELFAST TELEGRAPH: The Government has been accused of producing a Budget "of the rich, for the rich", as reaction varied from support for the business measures to outrage from union leaders.

Rail union leader Bob Crow said the tax changes meant that a banker on half a million pounds will receive a "kick back" of £17,500, money "robbed" from public services and the neediest in society.

Paul Kenny, general secretary of the GMB, said: "The different treatment of people at either end of the income scale is stark. Ordinary families are losing their tax credits and child allowances and suffering pay freezes while people on top salaries of £150,000 to £1 million a year are getting cash hand outs." » | Wednesday, March 21, 2012

Welfare Bill Soars as Coalition Counts Cost of Austerity Drive
THE GUARDIAN: Slowdown in economic growth makes reducing deficit harder, says Office for Budget Responsibility

Rising unemployment will cost the government £1.5bn more than expected in welfare benefits, according to official forecasts that reveal the hidden cost of the coalition's austerity drive.

As big increases in VAT are due to bite from Tuesday, analysis from the Office for Budget Responsibility shows slowing economic growth will make it harder to reduce the deficit by forcing more people to seek state support.

The Treasury watchdog calculates the government will have to pay out £700m more in unemployment benefit than previously forecast. Similarly, a higher number claiming jobseeker's allowance as well as falling into lower wage brackets will see the government needing to pay out another £700m more in housing assistance over the next four years.

Though the OBR data, released last month, confirms the government is still making substantial savings from its changes to both benefits, the shadow work and pensions secretary, Douglas Alexander, said the OBR's fresh assessment suggested it was government strategy that was leaving these higher numbers exposed.

He said: "The growing cost of the risk the government is running with the economic recovery is now emerging. The result of policies which undermine growth and jobs is a longer dole queue and a higher welfare bill." >>> Allegra Stratton and Julia Kollewe | Sunday, January 02, 2010

Coalition Will Improve Lives Not Offer Handouts, Vows Nick Clegg
THE TELEGRAPH: The Coalition Government will try to boost social mobility by ''improving people's lives'' rather than giving them handouts, Nick Clegg has insisted.

The Deputy Prime Minister accused Labour of spending ''huge sums'' on welfare for low-income households without any ''discernable impact'' on the life chances of their children.

Mr Clegg, the Liberal Democrat leader, confirmed that former minister Alan Milburn has been appointed as the Government's independent reviewer on social mobility.

Speaking at an event organised by the CentreForum think-tank, Mr Clegg said: ''Under Labour huge sums of money were spent pushing low-income households just above the statistically defined level of household income - sometimes by just a few pounds a week - but with no discernible impact on the real life chances of the next generation.

''Tackling poverty of opportunity requires a more rounded approach. Welfare reform, for example, should be based on the need to improve people's lives, not just raise their incomes. >>> | Wednesday, August 18, 2010

Coalition to Tell Unemployed to 'Get on Your Bike*'
THE TELEGRAPH: Radical plans to relocate the long term unemployed to areas where there are jobs are being drawn up by the Coalition.

Iain Duncan Smith has revealed radical plans to relocate the long term unemployed to areas where there are jobs. Photo: The Telegraph
Iain Duncan Smith, the Work and Pensions Secretary, discloses the move in an interview with The Sunday Telegraph today in which he outlines proposals to make the workforce “more mobile”.

The controversial plan echoes the words of Norman Tebbit in 1981 when he told the unemployed to “get on your bike” and look for work.

It is part of tough action to cut spiralling welfare bills and tackle Britain’s record deficit.

Last week a major shake-up of housing benefit and increased health checks for disability claimants were announced as part of the biggest cuts in public spending for almost a century. >>> Melissa Kite, Deputy Political Editor | Saturday, June 26, 2010

Vision Offered by the Coalition Government in the Queen's Speech Will Offer Little to Help Victims of the Cuts
THE TELEGRAPH: It's a new nation under the coaltion government – but be warned: the newly poor will need a voice, says Mary Riddell.

Tomorrow, with all due pomp and pageantry, the Queen will tell Parliament that her Government will exercise "freedom, fairness and responsibility". Her speech, rooted in 500 years of tradition, will herald the birth of a modern nation.

The legislative programme outlined by Her Majesty is the gateway to a Britain in which children play in streets uncluttered by CCTV cameras and superfluous immigrants. These pupils, heading to sumptuous schools set up by (non-working?) parents, may walk past JobCentre Plus branches packed with benefit scroungers being shoehorned into gainful employment. Any anti-social elements disturbing the civic calm will be swiftly dealt with by our newly-politicised police. What happy days.

I do not mean to parody the Con-Lib agenda. Scrapping ID cards, curbing the excesses of the surveillance state and electoral reform are welcome and overdue. Even so, the upbeat pitch of today's proceedings stands in stark contrast to yesterday's.

The £6.25 billion cuts outlined by George Osborne sounded modest and, in some cases, positive. We can all sign up to a bit of quangocide and an end to first-class travel by civil servants. But these are the surface grazes before tax cuts kick in and the axe falls on the 300,000 public sector jobs threatened by efforts to cut the £157 billion budget deficit.

As the age of austerity dawns, the government is unfurling two contradictory visions of Britain. One is of a settled country reclaiming equality and freedom. The other shows a future so divisive that its strictures may rupture our tacit social contract and threaten civic peace. Obviously, cuts are essential, and Labour profligacy has made them more so. But the Coalition, still in its honeymoon, is being allowed to draw a veil over the pain to come. >>> Mary Riddell | Monday, May 24, 2010

David Cameron Declares War On Public Sector Pay
THE TELEGRAPH: David Cameron has vowed to crack down on "crazy" bonuses paid to civil servants as the new Government seeks to reduce the costs of the bloated public sector.

Out of control hand-outs, which this year will be paid to three-quarters of senior civil servants, are to be restricted to high performers.

Under the terms of Whitehall contracts signed by Labour ministers at the height of the recession, bonus payments can not be cancelled by the incoming Government.

In future, however, windfalls across the public sector will be restricted to employees who have performed “exceptionally well,” with only the top 25 per cent eligible for the payments. >>> Rosa Prince, Political Correspondent | Sunday, May 16, 2010

UK Credit Rating Set for Downgrade Under Lib-Lab Deal, City Analysts Warn
THE GUARDIAN: Lab-Lib government the least liked option by markets and would almost guarantee a downgrade of UK debt – BNP Paribas

Britain would most likely suffer an expensive and potentially damaging downgrade to its debt rating if the Liberal Democrats form a coalition with Labour, City analysts warned today amid ongoing uncertainty about the creation of a new government.

As the Institute of Directors called on political parties to focus on the economy rather than the need for electoral reform, analysts at BNP Paribas reckoned that a "Lab-Lib government is the least liked option by markets and would almost guarantee a downgrade of the UK sovereign [debt]".

The top-notch AAA debt rating that the UK currently holds ensures that the country achieves the most competitive rates when raising money on the financial markets. If the rating is cut then the country would be forced to pay more to borrow money - although it has a long way to fall before reaching the junk status assigned to Greece, the recipient of a €110bn (£94bn) bailout package from the International Monetary Fund and eurozone countries. >>> Jill Treanor | Tuesday, May 11, 2010

The Country Must Come First, Not Party Politics
THE SUNDAY TELEGRAPH – Editorial: For the sake of the nation, a deal should be struck, and quickly.

Nick Clegg and David Cameron face pressure to work out an accord swiftly. Photograph: The Sunday Telegraph
The ideal outcome from last week’s election, as we argued forcefully in these pages, would have been a government – preferably a Conservative government – with the mandate and majority needed to tackle the urgent problems that this country faces. We stressed that the haggling and uncertainty that accompany a hung parliament would make it all but impossible to restore the public finances to order, get a grip on immigration, reform the education system, and much else besides. Yet the absence of a strong government is about to cost us extremely dear in another way, too.

As we report today, Nicolas Sarkozy, the French president, has persuaded other members of the eurozone that they can interpret a clause in the Lisbon Treaty so as to force every country belonging to the EU to contribute unspecified, and potentially unlimited, sums to bailing out insolvent members of the eurozone. It means that to keep the single currency going, in the event of future Greek-style collapses, Britain will have to write a blank cheque.

This cynical, underhand and anti-democratic move has been prompted by the stresses that the colossal budget deficits of the weaker members of the euro – Greece, Portugal, Ireland, Spain, Italy – have placed on the currency itself. Last week, France and Germany agreed that Greece should receive an emergency loan of 110 billion euros. The injection of cash is at most a stay of execution, not a solution to the problem, whose root cause is that Greece, being in the euro, cannot devalue its currency and so cannot make its exports competitive, and thereby earn the money it needs to repay its debts. The obvious solution is for Greece to leave the euro. But that would be a humiliation for Europe’s politicians and bureaucrats, for it would show that the fundamental objection to it – that it could not be viable across countries that are at such different levels of economic development ­– is correct. So, instead, they have decided that in future all the other members of the EU, including Britain, will foot the bill. >>> Telegraph View | Sunday, May 09, 2010