Private sector

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New centre targets slum landlords

A new law centre in Glasgow tackles private sector slum landlords and agency gangmasters.

Gordon Brown and David Cameron square up over tax policy

Gordon Brown today went head-to-head with David Cameron, the Tory leader, over tax policy as he insisted Britain was well placed to weather the financial storm.The prime minister dismissed a Tory proposal to offer companies a £2,500 incentive to create new jobs as an "unfunded tax cut" as he called for "serious policies for serious times".The clash came after the two men scheduled monthly press conferences just one hour apart.At 8.30am Cameron set out plans for a £2.6bn scheme to offer a national insurance break to private sector companies that take on workers who have been on the dole for more than three months.But 60 minutes later Brown told his Downing Street press conference: "The Conservative proposals are an unfunded tax cut ?"They change their policy every day, they have a new issue to get them on the news but it is not serious in measuring up to the problems we face."This is not a funded tax cut, the money is not there to fund what is proposed. It is not serious for the problems we face. I really do think we need serious policies for serious times."If we are going to be serious we need to move from one-off initiatives to a serious strategy for tackling the crisis."As the prime minister spoke, the Communities and Local Government department released figures showing the annual rate at which house prices are falling hit a new record of 5.1% during September.But Brown insisted that the British economy had remained buoyant while other countries had already moved into recession. Although Britain has a larger financial system than other countries, this country is better placed to deal with the downturn and has lower public debt than most of its neighbours, Brown said.The prime minister called for a world trade deal to be struck "over the next few days" to help tackle global economic problems.Only "small differences" were now preventing the stalled Doha round negotiations being concluded, Brown said."If over the coming days countries can resolve what I now regard as small differences it would send a huge signal to the whole world that the answer to 2008's crisis is not the beggar-thy-neighbour protectionism of past crises, but stimulating a world trade agreement."Brown stressed the importance of a trade deal as he outlined his ambitions for the G20 summit of world leaders being held in Washington at the weekend.He insisted that coordinated "global action" was needed to combat economic problems, rather than countries acting alone.Reform of international financial systems to enhance "transparency", together with fiscal measures would be key.He emphasised that any action in Britain to increase borrowing in order to cut taxes and stimulate the economy needed to be matched with similar moves by other countries if the world was to pull out of the downturn.Domestically, Brown said the government would be working with banks to ensure individuals and small businesses had access to finance.In the wake of the massive taxpayer-funded recapitalisation to banks, a set of "principles" would be agreed for lending to small businesses.There will also be announcements on how the credit card industry should deal with debtors, following concern that people are losing their homes as firms try to recoup relatively small sums.The clash over tax policy came as an opinion poll today showed Labour had cut the Tories' lead to just six points, compared to a 15-point Conservative advantage just a month ago, as Brown continues to win plaudits for his handling of the economic crisis.The Populus poll for the Times put Labour five points up on 35% while the Tories were down four points on 41%. The Liberal Democrats were up one on 16%.The Treasury has so far refused to comment on a Daily Telegraph report that the government would delay the introduction of a planned above-inflation increase in road tax, which would see the annual charge for some cars rise by £245.In a television interview yesterday, the prime minister gave a broad hint that plans to cut taxes were being drawn up, although reports that the reductions could total up to £15bn have been downplayed.Full details of what the government is proposing will have to wait until the chancellor publishes his pre-budget report some time over the next few weeks.Tax and spendingEconomic policyGordon BrownDavid Cameronguardian.co.uk © Guardian News & Media Limited 2008 | Use of this content is subject to our Terms & Conditions | More Feeds

Passport and ID card price hike laundered via private sector

High Street enrollment adds £20?40 to tab Biometric enrollment fees for passports and ID cards will cost applicants £20-£40 on top of the basic price, estimates released by the Home Office revealed yesterday. In a prospectus soliciting private sector partners for enrollment, the Identity & Passport Service said that the total market for these services is worth "between £120 million and £280 million per year."?

Pony Up, America: New Stimulus Package Puts Billions Towards Transportation

Hank Paulson and Ben Bernanke have been racking their brains for something that might give the U.S. economy a bump. Their next try might be good for the nation's transportation system ? but it's not going to be cheap. Bernake is throwing his support behind a gigantic stimulus package that House Speaker Nancy Pelosi and other congressional Democrats are pushing through Congress. If it were to become reality in its current form, it would significantly boost spending on roads, bridges and other public works projects: like a giant toll that everyone in the country has to pay.  The stimulus plan, which would be the second this year, would cost between $150 billion and $300 billion. In addition to allocating funds for traditional infrastructure spending, lawmakers are also considering provisions that would give families and businesses tax credits for investing in green projects like wind and solar. While there is significant support for the package on Capitol Hill, some economists argue that the economic impact of public sector spending is overstated. "If the government taxes or borrows $10 billion new dollars to build bridges and roads, it's sucking the $10 billion out of the private sector economy somewhere else," Chris Edwards of the Cato Institute told Marketplace. "You know taxes are going to have to be higher than they otherwise would be." Others say that these types of projects take time to ramp up, minimizing their economic impact. But the American Association of State Highway and Transportation Officials disagrees. It estimates that there are roughly 3,000 highway projects that could begin within 30 to 90 days of receiving funding, and several U.S. governors have been pleading with Congress for money to restart their states' stalled construction programs. With the recession projected by many to be long and deep, investment in infrastructure would have a big economic payoff, especially in sectors like construction, where unemployment sits at over 10 percent. But on the downside, infrastructure spending can be especially vulnerable to political shenanigans. "You don't want to build more bridges to nowhere," Global Insight's Brian Bethune is quoted as saying, referring to the infamous Alaska project that has been bounced around as an issue by both presidential candidates. At this point the plan is being well received in part because the last stimulus package, which consisted of rebate checks to taxpayers, was a bust. "It gave the economy a sugar high that faded as the financial crisis intensified," economist Peter Morici told the Associated Press. But priorities in Washington can shift quickly. Right now, if the package actually passes and what it ends up looking like is anyone's guess. Photo by Flick user Joeschram