Britannia Radio

Two things here:- 

1. The classic effect of printing money (‘Quantitative Easing’ as they try to conceal it]  is inflation.  My City contacts warned a year ago that was a near certainty sometime in the future - they then suggested after about 3 years (=2 years from now)  .  So this might be a ‘one-off’ but nevertheless it’s decidedly worrying

2. An example of Labour making cuts while all the time denying doing so!    This one in the NHS.  

Christina 

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REUTERS 9.10.09

September PPI highest since April

LONDON (Reuters) - Factory gate inflation unexpectedly turned positive for the first time in five months, with almost all sectors contributing to the rise, official data showed on Friday.

The Office for National Statistics said non seasonally adjusted output prices rose 0.5 percent on the month in September, taking the annual rate of inflation to 0.4 percent.

That was both the highest reading since April and followed a -0.3 percent rate in August.

Analysts had predicted factory gate inflation would stay negative at a rate of 0.1 percent and said price pressures could start rising again soon.

"You could see inflation start to pick up again in the early part of next year," said George Buckley, chief UK economist at Deutsche Bank.

While most sectors had a positive impact on output prices over the month, the ONS said the biggest effect came from petroleum product prices, which were driven up by a rise in duty at the start of September.

Annual input price inflation was also the least negative since April, falling by 0.5 percent on the month and by 6.5 percent on the year.

Separately, the ONS said Britain's trade gap with the rest of the world narrowed slightly to 6.240 billion pounds in August from 6.431 billion pounds in July. That was the smallest trade gap since June 2006, but was not significantly lower than the deficits in recent months.

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EVENING STANDARD  9.10.09

Budget cuts force NHS to abandon new polyclinic after spending £3 million

Anna Davis, Health Reporter

The NHS is abandoning building projects in the face of budget cuts, the Evening Standard has learned.

The health service will lose millions of pounds by stopping projects. Plans for a polyclinic in south-west London have already been torn up at a cost of £3 million because of fears over the future of NHS finance. Critics said it was the first sign of the credit crunch's impact on the NHS.

Fears that clinical services will be cut escalated after Andy Burnham, the Health Secretary, admitted the NHS had to save up to £20?billion. Shadow health secretary Andrew Lansley has promised to slash £4 billion from the NHS budget by targeting bureaucracy if the Tories win the general election.

Politicians are furious at NHS Wandsworth abandoning plans to turn the disused Putney hospital, which has been empty since 1998, into a polyclinic. Health bosses said the decision came “mainly due to the financial climate and possible reductions in funding”.

Geoff Martin, of campaign group London Health Emergency, said: “This is the first time that key developments are in the front line of cuts. Polyclinics have been a political priority — if they cut them it leaves huge question marks over other services.”

Ann Radmore, chief executive of NHS Wandsworth, said: “The NHS will not escape the effects of the financial downturn. It is essential that those managing healthcare locally make the tough decisions which will result in appropriate and affordable solutions.”

Wandsworth council said the decision would cost the taxpayer £3 million — the price of security, maintaining the building and drawing redevelopment plans since the hospital shut. It fears the land will be sold to developers.

Edward Lister, leader of the council, said: “The real story here is that the serious financial problems facing the NHS in London mean that even if the new clinics and GP practices were built there is no money to run the services.

“What is likely to happen is that the PCT will sell the site. Unfortunately all the money raised will almost certainly end up in the Treasury's coffers.”

The Putney scheme was granted planning permission in 2006. The building work would have been paid for by the construction of 24 flats on the site.

Eight polyclinics have opened in the capital since April, and every primary care trust is expected to have one by 2013. NHS London said: “The roll-out of polyclinics is on track.”[Not here it isn’t! -cs]