Britannia Radio

The government lectures the banks on the need to get money and 
mortgages available.  But WHAT DOES THE GOVERNMENT DO?  It owns 
Northern Rock  but - - -

---tonight the BBC reports that "The Northern Rock has raised the 
interest rates on most of its mortgage deals for new borrowers."

As The Times puts it:-
"Northern Rock defies Government to raise rates
Northern Rock, the state-owned lender, has embarrassed the Government 
by increasing rates on its most competitive deals despite calls for 
high street lenders to pass on cuts in borrowing costs"

They can't get anything right.  Darling has just admitted an error of 
arithmetic and has to alter a duty change due for next Monday.  [see 
separate posting : "Fred Karno's government"

And just in at 17:30.  Woolies goes bust - 815 stores 25,000 employees.

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POLITICS HOME   26.11.08
Comments on the Budget
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The World At One, BBC Radio 4 at 13:29
VAT cut is "policy making on the hoof," says Lib Dem MP

Lorely Burt, Liberal Democrat MP

Ms Burt said that the proposed cut in VAT would not make a 
difference.  "If you buy a £250 imported telly that's £5 off the 
price.  With big discounts on the high street, that won't make very 
much difference at all."

She said the decision "smacked of policy making on the hoof."

Ms Burt added: "What concerns me is that they're planning to tax jobs 
and employers at a time when jobs are not going to be very frequent 
for a long time yet.  The idea of making it more expensive to employ 
people is a huge problem.
=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=
In the Commons
Osborne: PBR has "fallen apart in just 48 hours"

Mr Osborne said that the government's pre-budget had "fallen apart" 
under closer scrutiny.
  "Normally it takes a week or so for the Prime Minister's budgets to 
come unstuck but this one has completely fallen apart in just 48 
hours," he said.

"There is a £100bn black hole which is created by the difference in 
the growth figures between the budget early this year and the pre-
budget just now and we know at least part of the plan to fill that 
hole with the 18.5% VAT rate".

He said that reports that the government would increase VAT had 
destroyed public trust in the government.  "The government are going 
to be hearing about this every single day between now and next 
general election.

"We know about the secret plan for VAT it has totally destroyed 
public trust in the government motives and confirms what everyone 
suspect that Labour's temporary giveaway now are dwarfed by permanent 
tax rises later".

He also criticised the Chancellor's forecast for economic growth as 
"fantasy figures".  "He was 100% wrong in the borrowing forecast he 
made just 8 months ago and now he wants us to take him seriously when 
he give us borrowing figures for 7 years time.

"They are ridiculous fantasy figures from a government that has 
completely lost the ability to manage taxpayers money," he said

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TONIGHT'S HEADLINES ON FINANCIAL TIMES     26.11.08
Northern Rock raises mortgage rates
State-owned bank defies government's calls for lenders to pass on 
cuts - Nov-26   [SEE intro]
Treasury moves to boost bank lending
The chancellor wants regulations that would force banks to give 
companies more notice of any change in lending practices, including 
withdrawal of credit lines - Nov-26

UK services in biggest contraction since 1990
The service sector of the British economy contracted 0.4 per cent in 
the quarter to the end of September, in the biggest contraction since 
1990, while consumer spending saw its sharpest decline for 13 years - 
Nov-26

VAT rise to 18.5% scrapped at last minute
Inadvertent publication of an early version of the pre-Budget report 
documents reveals Alistair Darling only decided at the last minute to 
abandon plans for hike in 2011-12 - Nov-25

Shops warn of struggle to deliver cut in time
Retailers are scrambling to work out if they could deliver the 
chancellor's cut in value added tax, with many complaining it was too 
big a task to complete in seven days - Nov-25

King hints at need for 'aggressive' cuts
Bank of England governor says that the interest rate could be cut 
more than normal to counteract dysfunctional credit markets and 
lenders' unwillingness to pass on changes - Nov-26

Forces award reflects rising Afghan costs
UK armed forces have received a boost in Treasury funding for 
military operations in Afghanistan amid signs that ministers are 
being forced to recognise the growing costs of the campaign - Nov-26

House-building set to miss target
Recession-hit developers are unlikely to build enough houses in the 
Thames Gateway to meet the UK's goal of 160,000 new homes by 2016, 
says the head of the national regeneration agency