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£1bn package to back city’s bid for Game

Sector: Scotland
Date: 18/08/05
Source: The Times
Link: http://www.timesonline.co.uk

Glasgow yesterday backed its 2014 Commonwealth Games bid with £1 billion in pledged transport improvement, which could be critical in enabling the city to win the right to host the event.

Glasgow already has most of the facilities that it needs to host the Games, but better transport could help it to clinch the event from rival cities including representations from Canada and Nigeria – if they can be delivered on time.


Cost of reopening old railway line doubles to £60m

Sector: Central Government
Date: 19/08/05
Source: The Telegraph
Link: http://www.telegraph.com

The cost to the Scottish Executive of a major new rail project has doubled to nearly £60 million.

Two years ago, Scottish Ministers earmarked £30 million for reopening the old railway line between Stirling, Alloa and Kincardine.

The Transport Minister, Tavish Scott, disclosed that the cost to the executive had gone up by £27.6 million in advance of work on the project beginning next month.


Secret report shows Olympics shortfall to reach £3bn

Sector: Central Government
Date: 21/08/05
Source: The Financial Times
Link: http://www.ft.com

Hosting the 2012 Olympic Games may boost Britain's gross domestic product by just £1.9bn over the next 15 years against a projected cost to the taxpayer of £4.9bn, according to confidential figures presented to the government.

Although the government is challenging the figures in the belief that its advisers may have underestimated the benefits from tourism, the early findings are expected to prompt ministers to redouble their efforts to keep a tight rein on costs.

Tessa Jowell, the minister in charge of preparations for the Olympics, is expected to draft in a project manager from the private sector in an attempt to avoid cost overruns. Construction companies such as Bechtel, KBR and Amec would be expected to bid for the contract, which is likely to be advertised in the autumn.


Aid staff flying first class as bill for flights soars past £9m

Sector: Central Government
Date: 22/08/05
Source: The Times
Link: http://www.timesonline.co.uk

Britain’s overseas aid department was last night urged to review its policy of allowing staff to travel first and business class after it emerged that officials spent more than £9 million on flights last year.

Figures obtained by The Times show that the Department for International Development (Dfid) spent £900,000 on air travel within the UK alone and a further £8.3 million on flights overseas in 2004-05.

This is the equivalent of about £6,000 for every UK-based Dfid civil servant. Development charities said that they would always send their staff by economy class.


'Unsuitable' firm won huge MoD contract

Sector: Central Government
Date: 22/08/05
Source: The Guardian
Link: http://www.guardian.co.uk

Defence ministers awarded a huge nuclear contract to a company even though officials had had serious doubts about the competence of the firm, internal documents obtained by the Guardian reveal.

The estimated cost then nearly doubled to more than £900m. The Ministry of Defence said one of the main causes of this was the "poor performance" of the company.

The project to build docks to refit nuclear-powered submarines at Devonport, Plymouth, is crucial for maintaining Britain's nuclear arsenal.


Firms abuse information laws to win extra chance of NHS work

Sector: Central Government
Date: 23/08/05
Source: The Times
Link: http://www.timesonline.co.uk

Private companies competing for hospital contracts are abusing freedom of information laws to obtain commercial details from NHS trusts.

Trust managers, who argue that this goes against the spirit of the legislation, claim that up to one in three demands under the legislation comes from private firms.

“Information is now being used for commercial gain rather than public good,” one NHS manager said. There is also growing concern in hospitals about the time and resources needed to process demands.

Many of the requests concern information about services that the hospital has contracted out and details about supplies and equipment.

But some managers suspect that firms are trying to obtain information from hospitals to sell to national suppliers. In many cases NHS trusts are reporting similar inquiries from the same company.


Police rely on 6,000 cameras across Tube network to cut crime

Sector: Central Government
Date: 23/08/05
Source: The Independent
Link: http://www.independent.co.uk

London Underground has installed more than 6,000 CCTV cameras across the network, some of them at stations and some on trains.

Plans are in place to double the number in use by 2010 as part of its campaign to minimise petty crime, but also to deal with the increasing threat of terrorism. All but 15 of the cameras use traditional analogue technology involving tapes.

The small number of newly installed devices use the digital system. A spokesman said the new technology would be employed from now on wherever Tube stations were being refurbished.


Home Office ad seeks ID card firms  

Sector: Central Government
Date: 17/08/05
Source: The Telegraph
Link: http://www.telegraph.co.uk

The Government is inviting companies to say if they want to bid for a lucrative contract to print millions of national identity cards months before MPs have had a chance to vote on the controversial legislation.

An advertisement in the Official Journal of the European Union on August 9 states: "The Home Office anticipates that once relevant legislation, now before Parliament, has received Royal Assent, it would embark upon procurement exercises for the establishment of a National Identity Cards scheme.


Health centres to be given extra £65m

Sector: Health
Date: 16/08/05
Source: The Herald
Link: http://www.theherald.co.uk

Scotland is to get a further £65 million to improve health centres across the country.

The money will be invested over two years in a programme that has already seen £78 million spent on upgrading and modernising health centres, clinics and other primary care facilities.


Executive to debate arts shake-up  

Sector: Culture
Date: 16/08/05
Source: The Scotsman
Link: http://www.scotsman.com

The Cultural Commission's call for an extra £100 million of spending on the arts and a sweeping overhaul of bureaucracy faces a full parliamentary debate in September, the Scottish Executive said yesterday.

Patricia Ferguson, the culture minister, said MSPs' views would help shape her response to the commission's 500-page report. She said she would "respond formally" to its recommendations by the end of the year.

The executive is aiming for a mid-September debate but no date has been fixed, aides said yesterday.


Executive lines up behind bid for Commonwealth Games  

Sector: Scotland
Date: 16/08/05
Source: The Scotsman
Link: http://www.scotsman.com

The Scottish Executive is to support Glasgow’s bid to host the Commonwealth Games in 2014.

Jack McConnell, the First Minister, is scheduled to announce that the Executive is convinced of the feasibility of the city’s plans.

In an early boost yesterday, Patricia Ferguson, the sports minister, announced nearly £1.4 million in support from Sportscotland towards the nation’s quest for Commonwealth Games success in 2006 and beyond during their visit to the Commonwealth Boxing Championships in Glasgow.


Warning for Scots councils as pension hole sees Fife £246m in need

Sector: Scotland
Date: 16/08/05
Source: The Scotsman
Link: http://www.scotsman.com

A Scottish local authority is a quarter of a billion pounds in the red because of a looming black hole in its pensions scheme, it has emerged.

Fife Council's liabilities have exceeded its assets by a massive £246 million.

Councillor Tim Brett said the problems could be traced to the council's pension scheme, and yesterday he warned that the Fife picture was likely to be repeated across all 32 of Scotland's local authorities.

Audit Scotland last year revealed that in March 2003 councils faced a £2.2 billion pensions deficit. Fife's deficit alone currently stands at £863 million, suggesting the crisis has deepened considerably in the last two years. Mr Brett, who serves for Newport on Tay and Wormit, said the authority's head of finance and asset management, Brian Lawrie, revealed in its draft financial report that the council's budget had been "significantly diluted as a result of accrued pension liabilities".


£65m to bring health-care nearer to communities  

Sector: Scotland
Date: 16/08/05
Source: The Scotsman
Link: http://www.scotsman.com

Health centres, clinics and other primary care facilities will receive £65 million in extra funding, the First Minister announced yesterday, pledging to bring care out of hospitals and closer to home.

Jack McConnell made the announcement at the opening of a state-of-the-art health centre in Bonnyrigg, Midlothian.

After touring the new facilities and chatting to patients, Mr McConnell said he wanted more health-care in the community so patients do not have to travel into hospitals.

The money will be invested over two years in a programme that has already seen £78 million spent on upgrading primary care facilities.


Nuclear clean-up cost may top £60bn

Sector: Central Government
Date: 12/08/05
Source: The Financial Times
Link: http://www.ft.com

The bill for cleaning up the UK's ageing nuclear power plants is likely to top £60bn and the process could take the best part of a century, the body responsible for the task warned on Thursday.

The Nuclear Decommissioning Authority, formed in April after a shake-up of the government's nuclear bodies, on Thursday launched a public consultation on how best to handle the closure of the UK's 20 remaining sites.


EU change ends need for CalMac tendering, says Ewing

Sector: Scotland
Date: 11/08/05
Source: The Herald
Link: http://www.theherald.co.uk

A leading critic of the Scottish Executive's decision to put Caledonian MacBrayne's ferry routes out to tender claimed yesterday that the move could be unnecessary under new EU regulations.

Fergus Ewing, the SNP's shadow transport spokesman and MSP for Inverness East, Nairn, and Lochaber, said the guidelines issued last month lifted the threshold for tendering exemption from 100,000 to 300,000 passengers a year.


Golden rule rethink ‘will not avoid tax rises’

Sector: Central Government
Date: 11/08/05
Source: The Financial Times
Link: http://www.ft.com

Mervyn King, the governor of the Bank of England, said the prospect for tax rises was not changed by the Treasury's reinterpretation of the economic cycle over the past eight years.

Speaking at the news conference launching the Inflation Report, Mr King delivered a rare direct rebuke to the Treasury over the way it changed the calculation of the economic cycle last month, relaxing its golden rule, only to borrow to invest over the economic cycle.


Nuclear clean-up cost may top £60bn

Sector: Central Government
Date: 12/08/05
Source: The Financial Times
Link: http://www.ft.com

The bill for cleaning up the UK's ageing nuclear power plants is likely to top £60bn and the process could take the best part of a century, the body responsible for the task warned on Thursday.

The Nuclear Decommissioning Authority, formed in April after a shake-up of the government's nuclear bodies, on Thursday launched a public consultation on how best to handle the closure of the UK's 20 remaining sites.


EU change ends need for CalMac tendering, says Ewing

Sector: Scotland
Date: 11/08/05
Source: The Herald
Link: http://www.theherald.co.uk

A leading critic of the Scottish Executive's decision to put Caledonian MacBrayne's ferry routes out to tender claimed yesterday that the move could be unnecessary under new EU regulations.

Fergus Ewing, the SNP's shadow transport spokesman and MSP for Inverness East, Nairn, and Lochaber, said the guidelines issued last month lifted the threshold for tendering exemption from 100,000 to 300,000 passengers a year.


Golden rule rethink ‘will not avoid tax rises’

Sector: Central Government
Date: 11/08/05
Source: The Financial Times
Link: http://www.ft.com

Mervyn King, the governor of the Bank of England, said the prospect for tax rises was not changed by the Treasury's reinterpretation of the economic cycle over the past eight years.

Speaking at the news conference launching the Inflation Report, Mr King delivered a rare direct rebuke to the Treasury over the way it changed the calculation of the economic cycle last month, relaxing its golden rule, only to borrow to invest over the economic cycle.


Prescott plans new council tax bands

Sector: Local Government
Date: 10/08/05
Source: The Telegraph
Link: http://www.telegraph.co.uk

John Prescott is considering creating two new bands for top-rate council tax payers, the Tories revealed yesterday.

They released a document showing that the Government was also contemplating increasing the gap between the amount paid by top-rate payers and bottom-rate payers, as well as creating regional council tax bands.


The £60,000 flatpack house

Sector: Central Government
Date: 10/08/05
Source: The Times
Link: http://www.timesonline.co.uk

John Prescott has announced that house prices were far too high “unless you’ve bought one” as he announced the winning nine teams chosen to build his £60,000 homes.

The Deputy Prime Minister selected nine building consortiums which will compete to construct two-bedroom developments which could become the template for affordable housing for first-time buyers.

One thousand ultra-cheap homes made from timber, steel, glass and brick and guaranteed to last 100 years will be built next spring on ten sites around Britain.


Council sells land to cut mowing costs

Sector: Local Government
Date: 9/08/05
Source: The Telegraph
Link: http://www.telegraph.co.uk

A council is selling off patches of grassland to homeowners to avoid having to cut the grass.

The strips of amenity land bordering properties are being snapped up, raising hundreds of pounds per plot for Basildon council in Essex.

Malcolm Buckley, the council leader, said: “These strips of grass are very small and it is the council’s duty to cut them. Doing so is disproportionately expensive.”


NHS puts aside £8bn for negligence

Sector: Health
Date: 9/08/05
Source: The Telegraph
Link: http://www.telegraph.co.uk

The NHS has set aside nearly £8 billion over the next 10 years to cover an expected rise in compensation claims and legal bills for medical negligence cases.

The "worst case" figure of £7.8 billion is based on claims being assessed - alleged negligence that may result in a claim within the next 10 years - and the rising level of pay-outs to successful litigants. Last year, the NHS Litigation Authority paid out £503 million in claims and legal costs.


Services cut after £1.5m drop at NHS trust

Sector: Health
Date: 9/08/05
Source: The Herald
Link: http://www.theherald.co.uk

More hospital services were axed by a health board yesterday as official documents revealed that the trust is £1.5 million behind in its recovery plan.


The children's ward at Inverclyde Royal Hospital in Greenock and the intensive care unit at the Vale of Leven in Dunbartonshire are to be closed by NHS Argyll and Clyde amid staffing pressures.


Disputes hold up £2.2bn city PFI contract

Sector: PPP/PFI
Date: 8/08/05
Source: The Telegraph
Link: http://www.telegraph.co.uk

Internal wrangling at the country's largest city council has caused serious delays to a landmark PFI contract. Birmingham council intends to hand over the running of all of its roads, pavements and street lighting to the private sector in a deal worth at least £2.2 billion over 25 years.

The council has drawn up a shortlist of four consortia to bid for the contract. But, according to both bidders and council insiders, the plan has been dogged by delays and disagreements between central and local government.


Quarter of NHS trusts record deficits

Sector: Health
Date: 8/08/05
Source: Financial Times
Link: http://www.ft.com

NHS hospitals and primary care trusts that failed to balance their books overspent by a total of more than £650m, figures from the Healthcare Commission, the NHS inspectorate, have revealed.

Although others underspent, leaving the NHS as a whole with a deficit of about only £140m, a mere 0.2 per cent of the budget according to the department of health, latest unaudited figures for individual NHS organisations show some with serious financial problems.


Minister admits ID cards ‘oversold’

Sector: Central Government
Date: 5/08/05
Source: The Herald
Link: http://www.theherald.co.uk

The government on Thursday night faced down calls for the scrapping of its controversial £6 billion identity card scheme after the minister responsible for it apologised for having oversold the policy and admitted legislation to introduce it was flawed.

Tony McNulty told a private meeting of the Fabian Society, a left-wing think-tank: "Perhaps in the past the government, in its enthusiasm, oversold the advantages of identity cards.”


Foreign Office fails the efficiency test

Sector: Central Government
Date: 4/08/05
Source: Financial Times
Link: http://www.ft.com

An independent report on the Foreign Office that was commissioned as part of the government’s attack on bureaucracy has identified management shortcomings and a culture of over-spending with no incentive to reduce costs.

The report, which the FCO said on Wednesday night it broadly accepted, found a department regarded in Whitehall as one of the elite destinations for civil service high flyers to be saddled with a poor management structure that stifled innovation.


Inquiry into firm’s asylum contracts

Sector: Central Government
Date: 3/08/05
Source: The Guardian
Link: http://www.guardian.co.uk

The Home Office is investigating allegations of financial irregularities by a private property company which earns millions of pounds annually through government contracts for housing asylum seekers around the country.

The investigation, prompted by inquiries by the Guardian, focuses on claims that the London-based Angel Group charged the Home Office and Leeds city council for the same properties.

Company records, internal emails and testimony from former Angel employees also suggest the company was paid for accommodation that was unfit for habitation or for which it had no keys. Records further suggest Angel claimed discounts on council tax to which it was not entitled in Leeds and Newcastle upon Tyne.


Global funds calls in WHO auditors over contract claims

Sector: International
Date: 3/08/05
Source: The Financial Times
Link: http://www.ft.com

The Global Fund to Fight Aids, Tuberculosis and Malaria, the world's largest co-ordinator of finance to tackle disease in developing countries, has called in auditors from the World Health Organisation to investigate allegations that it violated its own procedures.

According to an internal memo written last month and obtained by the FT, it was responding to claims concerning "contracts, recruitment and involvement of a family member" at its secretariat in Geneva.


Brown’s burden of debt could grow by £60bn

Sector: Central Government
Date: 3/08/05
Source: The Telegraph
Link: http://www.telegraph.co.uk

The Office for National Statistics yesterday classified over £4 billion of obscure liabilities as government borrowing – the first step in a move which could see Gordon Brown forced to add £60 billion to his official borrowing numbers.

The two schemes affected yesterday are a £1.25 billion bond issued by London & Continental, which operates the Channel Tunnel Rail Link; and the Chancellor's International Finance Facility, which will use bonds to fund a massive immunisation programme in Africa.


Sexist bosses could lose public contracts

Sector: Central Government
Date: 31/07/05
Source: The Guardian
Link: http://www.guardian.co.uk

Sexist employers will be denied lucrative public sector contracts under proposals being drawn up by the Prime Minister's advisers to stamp out prejudice against women at work.

The move follows evidence that the City only began to take its reputation for crude machismo seriously when corporate clients, alarmed by the number of women bankers suing for sexual harassment, threatened to withhold business from leading banks because of the negative publicity.


Brown ‘will have to raise another £10bn’

Sector: Central Government
Date: 29/07/05
Source: The Guardian
Link: http://www.guardian.co.uk

Gordon Brown will have to raise taxes by an additional £10bn a year to balance the public finances, a leading thinktank warned yesterday.

The chancellor has promised to keep to his "golden rule", which states the government will only borrow to invest over the course of the economic cycle.

Last week the chancellor said new data showed that the current cycle began in 1997-1998 rather than 1999-2000, as previously assumed. This means Mr Brown gained £9bn in surplus from the strong 1998 fiscal year to help counterbalance the current deficit.


OFT investigations bid-rigging by Midlands building firms

Sector: Central Government
Date: 28/07/05
Source: The Guardian
Link: http://www.guardian.co.uk

The Office of Fair Trading has said it had raided 22 unnamed companies across the East Midlands in the past two months after expanding its investigation into alleged bid-rigging by construction firms on tenders for public and private contracts.

The raids are a dramatic expansion of inquiries into the construction industry after a smaller, ongoing investigation into refurbishment contracts awarded to a Derby-based contractor by the Queen's Medical Centre in Nottingham.


Raise your game, tube PPPs told

Sector: PPP/PFI
Date: 28/07/05
Source: The Guardian
Link: http://www.guardian.co.uk

London Underground yesterday delivered a ‘must do better’ message to the companies charged with maintaining and upgrading the tube under a 30-year public-private partnership programme (PPP).

In the first real assessment of the PPP project, London Underground said the infrastructure companies (infracos) concerned, Metronet and Tube Lines and their shareholders, were "earning significant sums of money ... which are not consistent with the improvements being delivered.”

It acknowledged that improvements had been made but said many of the big renewal projects were behind schedule with Metronet coming in for particular criticism.


New lottery game to help Olympics reach £2.3bn finishing line

Sector: Olympics
Date: 28/07/05
Source: The Scotsman
Link: http://www.scotsman.com

The first step towards raising the £2.375 billion cost of staging the 2012 Olympics in London took place recently with the launch of an official lottery game, with exactly seven years to go before the opening ceremony.

The Go for Gold scratchcard will go on sale today, the first of several dedicated National Lottery games which aim to raise £750 million.


Calls for inquiry as £180m PFI contract goes to sole bidder

Sector: PPP/PFI
Date: 28/07/05
Source: The Scotsman
Link: http://www.scotsman.com

The handling of a £180 million private finance deal to rebuild two Glasgow hospitals should be the subject of a parliamentary inquiry, health experts said yesterday.

The calls from public health policy experts, hospital campaigners and politicians comes after the Scottish Executive confirmed it had backed Balfour Beatty as the ‘preferred bidder’ for the contract, despite the fact there were no other tenders.

The engineering firm has been appointed through PFI concession company, Canmore, to replace Stobhill Hospital and the Victoria Infirmary with new buildings. It is the first time a health board in Scotland has awarded a PFI contract where there has been only a single bidder and the move has raised concerns it could breach European procurement rules.


Cash-strapped health board is ordered to put patients first

Sector: Health
Date: 28/07/05
Source: The Times
Link: http://www.timesonline.co.uk

Scotland ’s Health Minister yesterday ordered an NHS board to take better care of its patients and demanded reassurances that it was sticking to guidelines on waiting times.

Andy Kerr made the demand while chairing NHS Grampian’s annual review in Aberdeen. It comes after it was revealed that the board had contacted cardiac patients who were nearing the nine-month waiting limit and given them the option of postponing their operation or having surgery outwith the area.

The minister, who also questioned officials about dentistry provision in north-east Scotland, said he wanted reassurances that patients were being given enough choices over treatment.


Speed cameras earn £21m a year

Sector: Transport
Date: 26/07/05
Source: The Telegraph
Link: http://www.telegraph.co.uk

Motorists caught on camera speeding or jumping traffic lights made a £21.7 million donation to the Treasury last year.

Statistics for the 2003-4 financial year, released by the Department of Transport under freedom of information legislation, showed that total receipts from fines were £113.5 million, of which £91.8 million was reinvested in road safety and covered the cost of the safety camera partnerships.


Pension changes will cost UK billions

Sector: Central Government
Date: 25/7/05
Source: The Telegraph
Link: http://www.telegraph.co.uk

Amendments to the rules covering occupational pension schemes could cost British taxpayers an extra £1 billion a year, according to estimates by government actuaries.

The Occupational Pension Schemes (Equal Treatment) Regulations deal with part-time workers who were refused the right to become part of their employer's occupational pension schemes that were available to full-time colleagues. The European Court of Justice ruled that could amount to indirect sex discrimination in cases where more of the part-time workers in an organisation are female than male.


Free books for children ‘a £27m gimmick’

Sector: Education
Date: 25/07/05
Source: The Telegraph
Link: http://www.telegraph.co.uk

Giving every child under four a free bag of books as part of a £27 million project to encourage early reading was criticised yesterday as a ‘waste of taxpayers' money’.

Ruth Kelly, the Education Secretary, will launch the Bookstart programme tomorrow.

Nine million books will be sent to children aged from eight months to four years to get parents more involved in their education.


SMEs unwilling to report price-fixing

Sector: SMEs
Date: 21/07/05
Source: Financial Times
Link: http://www.ft.com

A third of small and medium-sized businesses are aware of anti-competitive practices in their sectors, but few are prepared to report them to the authorities, according to research from the Office of Fair Trading.

Almost a quarter of smaller companies believe they have been the victims of unfair behaviour, such as cartel price-fixing and collusion to set tender prices. More than half said their industry could be more competitive, while 16% of SMEs overall – and 21% in construction – said they could not compete freely and fairly for contracts.


£100m PPP for schools under fire over sports cutbacks

Sector: PPP/PFI Date: 21/07/05
Source: The Herald
Link: http://www.theherald.co.uk

A privately financed £100 million schools project has come under fire over plans to downgrade sports facilities for pupils.

Sportscotland has joined hundreds of parents who have expressed concerns over the scheme, which comes at the same time that the Scottish Executive has recognised physical education as a key way to tackle the country's worrying levels of childhood obesity.

As part of a plan to build six schools in East Dunbartonshire, Douglas Academy, in Milngavie, would lose its swimming pool, athletics facilities and at least two of five outdoor pitches.

Under the Public Private Partnership deal, the local authority would sell off part of the site where the school's tennis courts are situated to make way for about 25 homes. Douglas Academy would then be rebuilt on its playing fields.


Brown has ‘fiddled’ Golden Rule of finances

Sector: Central Government
Date: 20/07/05
Source: The Independent
Link: http://www.independent.co.uk/

Gordon Brown has been accused of putting off unpalatable tax increases or cuts in public spending until 2007 by "fiddling" his own cherished Golden Rule.

Opposition politicians and independent economists criticised the Chancellor for "moving the goalposts" over the way the public finances are assessed. The Chancellor's manoeuvre, which was accompanied by hints of a move to 10-year spending plans, was seen by Labour MPs as part of Mr Brown's timetable to take over from Tony Blair.


Government delays report on pension compensation

Sector: Central Government
Date: 20/07/05
Source: The Independent
Link: http://www.independent.co.uk/

The Government has been accused of deliberately stalling the publication of a controversial report into its handling of the occupational pensions crisis, delaying what is believed to be a call to pay £4bn to 80,000 workers who were misled by its guidance.

In private correspondence to one of the victims of the scandal, the Ombudsman admitted the Government had succeeded in delaying the publication of its report by asking to submit new evidence to the inquiry at the eleventh hour.


Spending deal shifts control to Brown

Sector: Central Government
Date: 20/07/05
Source: The Times
Link: http://www.timesonline.co.uk

Tony Blair and Gordon Brown have agreed a far-reaching spending deal which could pave the way for a handover of power between them late in 2007, it emerged last night.

After lengthy talks with Mr Blair the Chancellor has instigated a root-and-branch review of all Whitehall spending designed to reset Labour’s priorities for the next ten years.


EU orders the Executive to put ‘lifeline’ island routes out to tender

Sector: Scotland
Date: 19/07/05
Source: The Scotsman
Link: http://www.scotsman.com

Ministers were ordered by the European Commission yesterday to put out to tender the Caledonian MacBrayne ferry services to the Hebrides.

Tavish Scott, Holyrood's new transport minister, had hoped to persuade the commission to make an exception of the "lifeline" services to the islands and allow them to remain as a single block run by CalMac – a state-subsidised company.

But Jacques Barrot, the Commission's vice-president, made it clear that Europe expects the Scottish Executive to put the routes out to tender, or risk breaching European law.


Asylum rejects cost taxpayer £300m

Sector: Central Government
Date: 19/07/05
Source: The Telegraph
Link: http://www.telegraph.co.uk

The taxpayer picked up a bill of more than £300 million last year to support failed asylum seekers who should have been removed from the country, spending watchdogs report today.

The National Audit Office says most of this sum was spent looking after an estimated 18,500 families with dependent children who are entitled to continuing support until they leave the country.

A further £285 million was spent to support the voluntary repatriation of some failed asylum seekers or to enforce the deportation of others.


Brown set to delay spending review

Sector: Central Government
Date: 18/07/05
Source: Financial Times
Link: http://www.ft.com

Chancellor Gordon Brown is set to announce on Tuesday that he is postponing next year's planned review of government spending to the summer of 2007, tightening his grip on public expenditure over the next two years.

In a decision that is understood to have been agreed in close consultation with Tony Blair, Mr Brown will call on Whitehall departments to stick to existing public expenditure plans up to the end of financial year 2007-08.


NHS 24 to launch ‘mini call centres’ hiring local nurses

Sector: Health
Date: 18/07/05
Source: The Scotsman
Link: http://www.scotsman.com

The troubled helpline NHS 24 is to set up a series of "mini call centres" across the country in a drive to improve nurses' local knowledge and boost recruitment.

In a major shake-up to the beleaguered service, satellite centres will be set up in Inverness, Tayside, Lanarkshire and Ayrshire and Arran to run alongside the three larger centres in South Queensferry, Clydebank and Aberdeen. Plans to set up centres in the Borders and Dumfries and Galloway are also under discussion.


Time for Executive to hand over spending power to the citizen with income tax cut

Sector: Scotland
D ate: 18/07/05
Source: The Scotsman
Link: http://www.scotsman.com

Contrary to popular myth, the tax-varying powers of the Scottish Executive could make quite an impact on people's wallets.

Under the 1998 Scotland Act, the Executive was granted the right to vary the basic rate of income tax by 3p in the pound, up or down. Put another way, the Executive could cut the basic rate of income tax from 22p in the pound to just 19p. In percentage terms, that is a whopping 13.6 per cent cut.


Energy-saving targets scrapped

Sector: Central Government
Date: 18/07/05
Source: The Guardian
Link: http://www.guardian.co.uk

Pledges made by Tony Blair to force housebuilders to improve the energy efficiency of homes to cut Britain's greenhouse gas emissions are to be ditched, the Guardian has learned.

Proposed building regulations due to be announced this week have been watered down and some provisions dropped altogether as “unnecessary gold plating”.

When the prime minister introduced the government's energy white paper in 2003 he promised that new building regulations, to be brought in during 2005, would be 25% tougher than the ones produced in 2002. New regulations for older, refurbished homes were also to be introduced at the end of this year. His aim was to bring Britain closer to the standards of the rest of northern Europe.


Chancellor seeing red in struggle to meet Golden Rule

Sector: Central Government
Date: 18/07/05
Source: The Times
Link: http://www.timesonline.co.uk

Gordon Brown is in the red on the key measure of his Golden Rule for the first time since the start of the economic cycle in 1999, economists say.

They expect that this week’s public-sector finance figures for June finally will remove the last shred of room for manoeuvre on the rule, which the Chancellor has made a crucial test of his economic credibility.

If the forecast is accurate, the Chancellor will be obliged to spend less than he receives in taxes between now and the end of the economic cycle if he hopes to meet the Golden Rule.

The rule requires that “current spending” — Government’s spending less investment — is balanced or in surplus over the cycle, which is expected to run from April 1999 to March next year, and not paid for with borrowing.

Over the past six years the Chancellor has run a slim surplus of 0.68 per cent of GDP.


Public sector pay growth soars above private sector

Sector: Central Government
Date: 15/07/05
Source: The Independent
Link: http://www.independent.co.uk

Workers in the state sector earn 17 per cent more for every hour they work than their colleagues in the private sector, according to research published yesterday.

Public sector pay growth has outstripped corporate pay rises for each of the past four years, the Chartered Institute of Personnel and Development (CIPD) said.


Britain’s total food miles bill put at £9bn a year

Sector: Central Government
Date: 15/07/05
Source: The Independent
Link: http://www.independent.co.uk

The transportation of food across the country and around the world is costing Britain £9bn a year, a damning government report today shows.

The average Briton travels 898 miles a year by car to shop for food, and the importation of food is impacting on road congestion, accidents, climate change, noise and air pollution.


Surging costs put more pressure on manufacturers

Sector: Manufacturing
Date: 12/07/05
Source: Financial Times
Link: http://www.ft.com

Pressure on the ailing manufacturing sector was highlighted yesterday as data showed the cost of raw materials surging at the fastest annual rate for 20 years.

Manufacturers' input prices were 12.1 per cent higher in the year to June compared with a 7.4 per cent rise in the year to May. Higher crude oil prices accounted for more than half of the increase.

June's annual inflation rate was the highest since March 1985, according to the Office for National Statistics.


NHS day surgery units accused of inefficiency

Sector: Health
Date: 11/7/05
Source: The Guardian
Link: http://www.guardian.co.uk

Day surgery units at NHS hospitals in England are wasting nearly half their operating time through poor management, the health inspectorate warns today.

If the least efficient units adopted the practices of the best, the NHS could perform an extra 74,000 operations a year, the Healthcare Commission says.

Its report follows a decision by Patricia Hewitt, the Health Secretary, to spend £2.5 billion over the next five years on a further round of contracts with the private sector to perform fast-track day surgery on NHS patients in independent treatment centres. The Commission did not have the authority to examine the first wave of independent centres to establish whether they were more efficient.


England gaining more out of NHS reforms

Sector: Health
Date: 8/07/05
Source: Financial Times
Link: http://www.ft.com

Patients have benefited from the sustained increase in National Health Service spending but the money appears to have bought better results in England than in Scotland or Wales, an independent assessment of the service has concluded.

"Improvement in a range of quality measures across the NHS has been considerable," says a Nuffield Trust report by Sheila Leatherman, a US public health specialist, and Kim Sutherland, senior researcher at the Judge Institute at Cambridge University.


Government pays £25m over market rates to put up refugees

Sector: Central Government
Date: 7/07/05
Source: The Scotsman
Link: http://www.scotsman.com

THE Home Office is paying millions of pounds over the odds to house asylum seekers, the government spending watchdog warned yesterday.

The National Audit Office said contracts to accommodate asylum seekers were costing at least £25 million more than market rates.


Advisor plays down council tax reform

Sector: Local Government
Date: 6/07/05
Source: Financial Times
Link: http://www.ft.com

The government’s advisor on the future of the council tax is playing down expectations of radical reform after calling for debate about the direction of local government and the amount the public is willing to pay for it.


Computer watchdog problems likely to delay ID cards, says watchdog

Sector: Central Government
Date: 6/07/05
Source: Independent
Link: http://www.independent.co.uk

The Government fears it may have to delay the date at which all Britons will be issued with identity cards because of growing alarm over the computer system that would run the scheme.

As MPs delivered a scathing verdict on other Whitehall computer bungles, the Home Office conceded that the ID card scheme might not happen until 2014 - the previous official target date was 2013.


Official’s £4m Dome fraud

Sector: SME
Date: 5/07/05
Source: The Times
Link: http://www.timesonline.co.uk

A senior official at the Millennium Dome faces jail after admitting taking part in a £3.95 million fraud which funded a life of luxury.

Simon Brophy, 38, used his position as head of lighting at the New Millennium Experience Company to award a contract to one of his own companies. He channelled money into foreign bank accounts, spending it on luxury foreign travel, property in the US, a helicopter and yachts.


Queen’s physician hits out at funding shortage in NHS

Sector: Health
Date: 5/07/05
Source: The Scotsman
Link: http://www.scotsman.com

The Queen’s physician in Scotland yesterday launched an astonishing attack on the lack of NHS funding in the North East of Scotland. Professor Ashley Mowat, a senior consultant in gastroenterology at Aberdeen Royal Infirmary, claimed that too few patient beds meant worsening waiting times and warned that funds would have to be raised locally to counter a growing funding crisis.


First three NHS foundation trusts begin to flex their financial muscles

Sector: Health
Date: 4/07/05
Source: Financial Times
Link: http://www.ft.com

The first three NHS foundation trusts have used their borrowing powers to raise a total of slightly less than £35 million for new facilities.

All three - Stockport, Moorfields Eye Hospital and the Homerton in East London - say it has brought them new facilities more quickly than under the traditional NHS capital funding regime.

In the case of Stockport, it also shows that foundation trusts may rely more in future on conventional borrowing for progressive redevelopment of their facilities, rather than on ‘big bang’ PFI schemes. The private finance initiative has recently been criticised by both the NHS Confederation and Health Department officials for creating inflexible buildings and projects unsuited to rapidly changing health technology and services.


Labour denies ‘stealth’ council tax rises

Sector: Local Government
Date: 4/07/05
Source: Financial Times
Link: http://www.ft.com

The government has denied Tory claims that it is planning a £200m "stealth tax" on English households.

"Any speculation that the government is planning a council tax shake-up that will lead to huge rises in council tax bills is untrue," the Office of the Deputy Prime Minister said yesterday.


Electrical goods required to meet energy efficiency standards

Sector: Environment
Date: 4/07/05
Source: Financial Times
Link: http://www.ft.com

Manufacturers selling electrical goods in the UK will be asked from later this week to ensure that their appliances meet energy efficiency standards.

The European Union's eco-design directive will come into force on July 6, applying standards to household equipment from boilers and washing machines to commercial electrical equipment and component parts. The standards are voluntary at present, but may become mandatory in the future.


NHS borrowing demands to test Blair reforms

Sector: Health
Date: 4/07/05
Source: Financial Times
Link: http://www.ft.com

Tony Blair's commitment to radical reform of the public services is set to be tested this week when a flagship group of NHS hospitals demands more freedom to borrow for investment.

The Foundation Trust Network is to call for their borrowing to be taken off the government's balance sheet - potentially reigniting a three year old dispute between the Prime Minister and Gordon Brown.


Good timing all-important for Brown

Sector: Central Government
Date: 4/07/05
Source: Financial Times
Link: http://www.ft.com

The system of public expenditure control introduced by Gordon Brown is one of his proudest achievements.

The chancellor regularly boasts of the greater certainty the three-year public spending plans have brought since they were introduced in the 1998 Comprehensive Spending Review.

Now the Treasury is thinking about fixing spending plans for three years in the future.


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