October, 2009

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NEW SCHOOL BUILDS CAN BOOST ECONOMY

Wednesday, October 28th, 2009

 

By Stephen Neale

 

NATIONAL, UK, October 28. 2009 — Building schools and colleges significantly benefits the UK economy, according to independent research published today.

The report, Construction in the UK economy: The Benefits of Investment, by LEK Consulting, claims that construction is the best sector for stimulating employment.

It also shows that every £1 spent on construction leads to an increase in GDP of £2.84. In other areas, such as building schools, the benefits are even greater with every £1 spent leading to an economic benefit of between £3.87 and £5.04.

The report – commissioned by the CBI and the construction industry body, UK Contractors Group (UKCG) – says this is due to the direct benefit on the economy, as well as the improved education services that lead to a long-term benefit via a higher-skilled workforce.

John Cridland, CBI Deputy-Director General, said: “With the Chancellor’s Pre-Budget Report looming, the CBI is continuing to press the case for protecting capital spending by government.

“A strong economy needs fit-for-purpose schools and hospitals, and it will be the construction industry that builds the new transport and energy infrastructure needed to shift to a low-carbon economy.”

The survey follows a scaling back of public sector funding for new colleges following the demise of the Learning and Skills Council.

Figures last week showed that GDP fell by 0.4% in the third quarter of this year. 

The CBI said it strengthens the case for continued investment in construction projects that are crucial to the long-term future of the UK economy.

James Wates, Chairman of the UKCG, said: “This is the first time the industry has put together a set of compelling and powerful arguments to support the case for investment in infrastructure.

“Now is the time for the whole industry to come together behind the CBI to press the message home.”

The report concluded that construction relies little on imports, so investment is more likely to generate additional economic activity within the UK.

ends

MORTGAGE LENDING FALLS

Tuesday, October 20th, 2009

NATIONAL, UK, October 20. 2009 — Gross mortgage lending in September was 27 per cent down on the same month last year, according to new data from the Council of Mortgage Lenders.

Loans totaled an estimated £12.5 billion, a 2% rise on the £12.3 billion in August.

The CML said the figure did not undermine housing market recovery, claiming there has been a pick up in house purchase activity, off-set by the decline in remortgaging.

The council’s economist Paul Samter said purchases were running at ‘considerably higher levels’ than around the turn of the year, although weak when compared with historical averages.

He added: “They are unlikely to rise much further given the constraints the lending community faces and a still difficult economic backdrop.

“But there are some positive signs to look to. While the retail side, both in terms of mortgage and savings activity, has thrown up few surprises, it is encouraging that the wholesale markets have begun to thaw.

“Some of the UK’s highly rated institutions have been able to issue structured finance products backed by mortgages in recent weeks. This is only an early sign of wholesale investors tentatively coming back into the new issuance market, but is welcome nonetheless.”

EMPLOYERS MUST PREPARE FOR RISING MENTAL HEALTH PROBLEMS

Monday, October 19th, 2009

NATIONAL, UK, October 19. 2009 — COMPANIES have been warned to expect a sharp rise in mental health problems among employees.

ACAS – the independent advisory service – said UK firms and managers should prepare for the longer term effects of the recession by setting up and procedures to cope with stress in the workplace.

Figures show that mental health issues cost UK organisations around £26 billion each year. 

Ed Sweeney, Acas Chair, says: “The economy may hopefully have seen the worst of the recession but the impact on workplaces will be felt far into the future.

“Early intervention can play a critical part in reducing the problem of ill health at work and this ‘prevention over cure’ approach will ultimately help businesses and employees save time, stress and money.”

Acas urged managers to deal with the long term impacts of the downturn and safeguard the health and wellbeing of employees  with:

Training - to raise awareness of stress and mental health so that line managers, in particular, can tell if an employee is suffering from additional or excessive pressure

Good interpersonal skills -  to help nurture trusting relationships with staff who may be anxious about disclosing their mental health problems

A supportive organisational structure - that guides managers by providing clear policies and procedures for managing mental health.

 

Latest figures show the total number of people unemployed has now reached 2.47 million.

Stress relates illness can affect workers who believe their job is at risk or those whose partners’ are vulnerable or redundant.

Employers and employees can find further guidance and advice via the ‘health, work and wellbeing in the workplace‘ section of the Acas website www.acas.org.uk or by contacting the helpline on 08457 47 47 47.

Download the Acas policy discussion paper,  From stress to distress: the impact of the economic rescession on mental health at work [265kb].

AUTHOR KILLS OFF FROST OVER POLICE ROW

Wednesday, October 14th, 2009


Reporter of the Year – East of England,
Hold the Front Page/EDF, 2007

 


FROST author Rodney Wingfield says he is killing off the character – played on TV by David Jason – over a row with Essex Police. Here Mr Wingfield tells Stephen Neale the details of his complaint and we also look into the problems currently being experienced by some police officers in the service. 

 

 

•EXCLUSIVE•

ESSEX, UK, September 22. 2006 — Fictional detective Jack Frost will be killed off by his creator because of a row with Essex Police.

FROST: David Jason's famous character

Playwright Rodney Wingfield has vowed to ditch the world-famous character, after Chief Constable Roger Baker failed to answer his letter of complaint.

Mr Wingfield, who lives in Basildon, Essex, wrote after his nephew was arrested and locked up overnight in March for a crime he did not commit.

The row coincides with claims from within the force that unrealistic arrest rates are forcing innocent and minor offenders into custody.

‘horror stories’

Mr Wingfield said: “I have always been pro-police, but the actions of Essex Police, and the many horror stories told to me about them, make it impossible for me to write any more pro-police Jack Frost novels.

“The book I am currently working on, A Killing Frost, will be my last.”

Essex Police refused to comment on the details of Mr Wingfield’s complaint, but insisted there were no plans to relax the arrest targets.

A spokesman claimed that Mr Wingfield had been sent a nine-page response on July 30, although Mr Baker had not replied personally.

More than 1,600 posts have been logged on an Internet forum thread entitled ‘Essex Police – What a Mess’ debating the force’s status since the chief constable arrived in July 2005.

Numerous postings on website www.policeoracle.com support the chief constable, but many are critical. The level of discontent among the police rank and file is unclear.

The Essex Police Federation has organised an ‘open meeting’ on Monday, October 30, where officers will have the chance  to put their concerns to Mr Baker in person. Although some say they will not attend because of their fears of retribution, federation leaders will allow questions to be put via staff association representatives.

A senior federation officer, who asked not to be named, said: “We need as many officers to come along as possible.

“We are being told that these complaints are just the tip of the iceberg. But there’s no way of knowing until people turn up to the meeting.”

Mr Baker refused to be interviewed over the allegations.

Inspector Jack Frost is best known as the character portrayed by David Jason on ITV’s ‘A Touch of Frost’. The show is watched by millions of viewers all around the world.

ends

DREAMS DON’T ALWAYS COME TRUE

Wednesday, October 14th, 2009

Hold the Front Page/EDF - Reporter of the Year 2007 (East of England)
WINNER 
 

By Stephen Neale

ESSEX, UK, September 22. 2006 — Jamie had a dream. One day he would be a police officer. The dream was shattered in June when a stranger ordered him into a car, took him to a large building and locked him up.

The 14-year-old had been playing outside his home at 7.30pm when he was taken away.

His mother, who was preparing dinner at the time, realised something was wrong just after 8pm when the phone rang.

It was Rayleigh Police.

“Your son’s in trouble…” said the caller. “…we’ve arrested him.”

His crime?

Playing in the street with a plastic gun that fires a soft ball.

“I couldn’t believe it,” says his mother. “It felt as though he’d been abducted.”

Three months after making a complaint she’s still waiting for an apology, convinced something more sinister lay behind her son’s arrest.

Police officers are applying to leave the force in droves because they say people like Jamie’s mum are probably right.

PC Rultize is one of them. He typifies the mood among officers who have had enough of the job.

‘dream’

Problems began soon after Essex Chief Constable Roger Baker arrived in July, 2005.

At a special press conference on July 4, Mr Baker, said he had a dream, just like Jamie. He demanded 600 arrests in his first week in charge.

 

AMBITIOUS: Essex chief constable Roger Baker

AMBITIOUS: Essex chief constable Roger Baker

 

His plan was to turn Essex into the best performing force in the country. It was welcomed by virtually every officer under his command.

But then they discovered that trying to run a Rolls Royce police service on a cash-starved budget is too much – even for the ambitious Mr Baker.

Tory-controlled Essex has one of the lowest council tax precepts in the country. As Mr Baker continued to push for better performance and improved figures, the extra resources he needed never materialised. Police morale has begun to slip, sickness rates have soared.

“Every day, phone calls are made to every division to check up how many people are arrested,” explains PC Rultize.

‘discretion is going out of the window’

“There’s a set number of people we should be arresting daily. If targets are not met inspectors, sergeants and PCs are questioned.

“It means discretion is going out of the window and we are arresting people for trivial things.

“Baker likes to go on about how he has made the number of arrests go up, but it’s all manipulation of figures.

“And is he really interested in why officers are transferring? If he was running a business he would be out in a week.”

Sources at the Essex Police Federation confirm the drive for more arrests and detections has had a devastating effect on the under-resourced force.

Publicly the Federation refuses to criticise Mr Baker, but it has successfully arranged an open meeting between the chief and all his serving officers for October 30, at Chelmsford HQ.

But while some claim he has not listened hard enough to his staff, it is government – both local and national – that must take most responsibility.

Force accountants estimate that Essex Police could buy in an extra 750 officers if it received as much funding as other counties.

A recruitment drive that large would boost numbers by almost 25 per cent, relieving the pressure on overworked staff and giving Mr Baker the power to get on with the real job – cracking down on even more crime.

‘a personal message’

But are the spurious arrest figures already undermining his priority?

When he arrived in July, Mr Baker had a personal message for criminals.

“If you are planning on committing crime in Essex bring a toothbrush, because you won’t be going home,” he warned.

Although he delivered immediate crime reductions, many officers believe his continued refusal to relax targets in line with staff shortages and sickness could swing the initiative back towards the criminals.

Officers manning stations in the south of the county, at Rayleigh, Southend, Basildon, Thurrock and Grays report severe staffing gaps in shifts. They claim these shortages represent a public safety risk.

Most week nights and Sundays between midnight and 6am there will be six officers covering the whole of Basildon, Wickford, Pitsea and Laindon. The same goes for Canvey, Rayleigh, Hockley, Benfleet, Rochford, Canewdon, Wakering and Hullbridge – with just six more officers allocated to Southend, Thorpe Bay, Leigh, Eastwood and Shoebury.

Combine this with officers who are taking an average of 3-5 hours to deal with dubious arrests of trivial offenders, and the more serious offenders are inevitably escaping the system.

‘Maybe the public can now see what we are up against.’

“It’s the same all over the county,” said a police source. “One major incident in a highly populated area ties up all six officers.

“Unfortunately it will take the serious injury to a police officer or a member of the public for things to change, and by then it will be too late.

“Maybe the public can now see what we are up against.”

Mr Baker had a dream when he arrived in Essex 15 months ago – just like young Jamie.

The 14-year-old doesn’t want to be a police officer any more.

Perhaps as he grows he’ll change his mind. Maybe Mr Baker will change his mind too – about how he goes about creating the best force in Britain that is.

Give your officers a break Mr Baker – demand more cash from government. Then call Jamie and say sorry.

• The names of all police officers in this article, other than Roger Baker’s, have been changed to protect their identity, as has Jamie’s.

JOINT STATEMENT FROM ESSEX POLICE, ESSEX POLICE AUTHORITY AND ESSEX POLICE FEDERATION

The target for arrests was set in July 2005, and the targets have not changed, but they are part of an overall strategy to reduce crime and increase detections, and to be tough on crime and criminals to make Essex an even safer place for law-abiding citizens – and the results speak for themselves.

Last year (2005/06) saw overall crime drop by 2,411 offences (more than 2 per cent), whilst overall detections increased by 4,518 (15 per cent).

For the first quarter of this year (2006/07), compared to the same quarter last year, the trend continues, with overall crime down by 2,371 (6.8 per cent) and overall detections up by 892 (9.7 per cent).

Essex Police is also in the top five forces in the country in terms of its crime-reduction performance for the same period.

The aim of the new policing style is to give the public what they want, which is a reduction in crime, an increase in arrests and detections and a visible presence on our streets.

• The Police Federation has recently stated that any representations it made to the Chief Constable have been ‘addressed one way or another’.

EXTRACT FROM MR BAKER’S POLICING PRIORITIES – JULY 2005

I BELIEVE the police service in Britain is the best in the world. I also believe that Essex Police can be the best force in the country, as its reputation is already outstanding.

ESSEX POLICE AUTHORITY

In March 2005, the authority appointed Roger Baker as Chief Constable. During the selection process we made it quite clear to candidates that we had three priorities: dramatically increase visible policing; provide better public contact; and reducing anti-social behaviour.

“With that goes increasing arrests and detections and taking a rigorous approach to crime and criminality.

The Authority backs him for the improved performance that the force has delivered and which it is hoped will be delivered in the future. I and my colleagues have every confidence in Roger Baker and his team.

• THIS week, Roger Chambers, the chairman of Essex Police Authority, said Mr Baker had his ‘100 per cent backing.’

COMPLAINTS

• Complaints against the force rose by more than 25 per cent in the nine months between June 2005 and March 2006.

• Of 68 complaints, 30 involved alleged unlawful arrest, while the remaining 38 were allegations of breaches in detention, treatment and questioning of suspects – half as many such complaints on arrest and detention of suspects were recorded in the previous nine months.

• Essex Police said it had recorded the lowest amount of complaints in the eastern region in June 2006, when comparing complaints per 1,000 police staff.

• Between April 2005 and March 2006 the force recorded the second lowest number of complaints compared with neighbouring regions.

School to close after six years special measures

Wednesday, October 14th, 2009

Newspaper Society - Campaign of the Year 2006
WINNER

By Stephen Neale

ESSEX, UK, November 15. 2005 — Six hundred children face an uncertain future this week.

They are not Pakistanis caught up in their country’s worst ever earthquake, Americans rebuilding homes in New Orleans, Guatemalans escaping mud slides and flooding, nor young Iraqis dealing with war and terror on the streets of Baghdad.

Southend Council voted last Thursday night to press ahead with a closure plan for an Essex school.

“They are being cast off like chaff on the wind,” said headteacher Jean Alder, describing the decision as “a tragedy”.

But is a closing a school really cause for such concern – a school that has been under special measures for the last six years, no less?

Problems for Thorpe Bay High School begun in June 1999 when inspectors swept in and derided poor teaching and results. Just 23 per cent of children got A* to C grades. Southend High for Girls – right next door on Southchurch Boulevard – achieved 99 per cent.

Despite being placed in special measures, it wasn’t all bad news for Thorpe Bay. Inspectors described “an orderly community” where pupil behaviour around the school was “satisfactory”.

“Relationships between adults and pupils are cordial,” the inspectors reported. “Most pupils are polite and well-mannered. In lessons, most
pupils pay attention to their teachers and generally concentrate on their work.”

But that was all about to change. What happened when they left was shocking. Staff exited and pupil numbers plummeted from 800 to 600. Most importantly, five police officers had to be drafted in to protect the staff from the pupil chaos that ensued. It lasted on and off for three years.

“The kids were literally running the school,” said PC Gary Bradford, one of the officers brought in.

Like any number of so called “failing schools”, Thorpe Bay’s pre-1999 problems were overwhelmingly linked to a perception of pupil
underachievement.

This is neither a mystery nor necessarily an indication of a truly failing school. Thorpe Bay takes its catchment from one of the UK’s most deprived areas.

The Kursaal Estate and its surrounding wards are highlighted on Government reports as among the most impoverished in the UK. Meanwhile the town’s grammar schools cream off the very best pupil talent in the area.

“We’re the sink school,” says Mrs Alder.

More than 45 per cent of Thorpe Bay’s kids receive free school meals. The links between under achievemers and disadvantaged backgrounds are recognised by both education analysts and Government departments.

If poverty were not enough of an issue, almost one third of Thorpe Bay High pupils have special educational needs (SEN). Southend High for Girls has just one SEN pupil on its books.

Despite the obvious difference in what children can aspire to achieve, special needs ratios are never taken into account when inspectors determine why a school is not attaining top results.  And its even worst than that.

Being disadvantaged is about more than being poor or having special needs. Many children have parents who have difficulty reading, an issue that can undermine the chances of homework being completed regularly or effectively, as most parents will know.

There may be no books at home, some youngsters might be emotionally damaged, exposed to alcohol, drug abuse or even violence. Dad might be disabled, or mum might be living alone caring for five other young children.

These may not be human tragedies on the scale of Hurricane Katrina, but they’re very real problems for the children working to overcome them.

“Many of our children have genuine issues to deal with in their home lives,” says Mrs Alder. “For some of them it might be that they’re the main carer to a parent. Just getting into school is a fantastic achievement. How can a child be judged a failure when he has achieved a GCSE D grade where all the indicators suggested he wasn’t going to get anything.”

Jean Alder arrived in 2004 and her appointment marked the turning point in the school’s fortunes. She immediately installed a new team that has
overseen a teaching regime specially tailored to deal with kids from wide and varied backgrounds.

Among the schemes in place are pastoral managers trained to identify solutions and forge a bridge between a child’s school and home life. Special classes are used to cater for as few as ten children.

Discipline has been restored. With pupils attentive in lessons once again, they stand up when an adult walks in the classroom and actually hold open doors for staff as they walk the corridors.

“They used to slam them in our faces,” says Clare Webber, a teacher who returned to work with Ms Alder when she saw the changes.

A £1million teaching block opened at the start of this term to cater for the new crop of Year Seven pupils. Among the schemes being deployed at the centre are specialist year teachers employed to work one-to-one with 11-year-olds enabling them to settle in to their new teaching environment.

Parents overwhelmingly want to see the school stay open. Although many have initial reservations about bringing their children in, once they see for themselves the work going on they are soon impressed. Most of those visiting a school target-setting day in September were keen to speak out against closure.

Dave Morris, a local barber, was typical. “There were a lot of problems here before but I’ve seen the changes. We were so impressed when we came to see what Thorpe Bay had to offer. I can’t see any problems here. The school should have been out of special measures a year ago.”

PC Bradford is still at full-time, part of the national scheme to improve the relationship between young people and the police. His four police colleagues have long gone.

“The turnaround at this school is unbelievable,” he says. “It would be absolutely devastating for the kids and the teaching staff if it closes now. Everyone has worked so hard to make it a success.”

Jean Alder and her team have put forward an alternative plan to Southend Council. What sticks in the throat for staff, and the irony of their dilemma, is that Thorpe Bay is on the verge of coming out of special measures.

Inspectors are due to visit any week and staff are convinced they have done enough to warrant a reprieve. Only it looks too late.

Southend Council leader Anna Waite said last week that the school’s dropping pupil admissions, created largely by its “failing” status under
special measure, mean the school has become an economic albatross.

“It’s just not financially viable,” she said. She is neither uncaring nor stupid.

Her authority is under pressure from Government and has been promised £6million if the closure goes ahead. When asked why she and her councillor colleagues have not visited the classrooms to see the improvements for themselves, she claimed her Cabinet could rely on the word of Ofsted, “the experts”.

She offered to visit classes if her schedule allowed last week. It did not.

“The teachers at Thorpe Bay have been working extremely hard to turn the school around,” she said on Friday. “However, Thorpe Bay School is not viable in the future and the council has the responsibility to take action in the best interests of current and future pupils in this town.”

For Jean Alder the future for her pupils is very clear. She believes the mass of “underachievers” who will soon find themselves among neighbouring schools will become lost in the system.

“They will simply not be picked up,” she says. “They say cash will be made available. But it will be difficult to give these children the sort of support they have enjoyed here. That’s partly because of the community nature of the school. It will be destroyed if you split these children up.

“None of this is motivated by what’s best for the children. It’s motivated by money, and I’m deeply worried for all those concerned.”

Southend Council has just three weeks to reconsider Thursday’s decision.

For those children, parents and staff who fear the worst, the uncertainty is yet to come.

UPDATE

 

• Two weeks after this story was published Southend Council said it was reconsidering its decision to close. A month later Ofsted visited and took Thorpe Bay out of special measures. 

VISIT: Ruth Kelly arrives

On February 3, Ruth Kelly, the Secretary of State for Education, met with pupils and announced £20million funding to create a vocational school of excellence for 11-18 year olds.

HEAD: Jean Alder and pupils at Futures College

Thorpe Bay is now called Futures College.

ends

BROWN WARNS TAX DODGERS… WE’RE COMING

Tuesday, October 13th, 2009

LONDON, UK, October 13. 2009 — Gordon Brown will target tax evaders under new plans to plug the UK’s budget deficit. 

During a discussion with economic commentators at Bloomberg, in London, he warned that his investigators were already trawling through thousands of off-shore accounts. 

TOUGH: Prime Minister aims to crack down on tax evasion

 

The crack down is one of several moves aimed at raising cash over the next two years, including a £16b sell-off of public assets.

Commenting on tax evasion he said new rules had been agreed about the regulation of off-shore havens around the world. These changes have already released £1 billion from Lichtenstein back to the British exchequer, he said.  

He added: “There are 100,000 accounts in offshore tax havens that are now being investigated by our authorities, and just as America and other countries are cracking down on tax evasion and, indeed, tax avoidance, so too will we.”

read the speech in full here

The sale of public owned assets will occur over the next two years.  

They include the student loan book, the Dartford Tunnel, the Channel rail link, Urenco (subject to security issues being addressed on that), the Tote and a property portfolio to be announced later this year.

Mr Brown said Britain was one of only three countries in the G7 setting out plans to halve its deficit over four years.

The Government would also focus on investing in skills and training ‘to allow the UK to continue to compete in high-value industries’.

He warned that ‘major risks’ to the international and domestic economic recovery remain, and extreme care would be required over the coming months.

On trade, Mr Brown said the world must continue to resist creeping protectionism and he said he will work to avoid a premature ending of the monetary and fiscal policies.

ends

HOUSING MARKET UP… AND DOWN

Monday, October 12th, 2009

NATIONAL, UK, October 12. 2009 — House sales remain 50 per cent down on the pre-credit crunch levels, according to latest figures from the Council of Mortgage Lenders. 

Just 53,000 loans were taken up in August compared to the month’s average (100,000) in the decade before the downturn.

© ClatieK

But the lenders’ group stressed that the latest figure was more than twice the level of monthly activity at the start of the year, and 29% higher than August, 2008. 

CML economist Paul Samter said: “House purchase activity has revived from its moribund state at the beginning of the year. 

“It will be a drawn out recovery process with seasonal ups and downs, but house purchase activity is now on a firmer footing.”

The CML data showed 19,200 loans to first-time buyers and 33,400 loans to home movers.

First time buyers typically had a 25% deposit and borrowed three times their income.

Much of the cash for deposits among young people came from parents borrowing against their own homes, although the overall remortgage market is well down on previous years.

There were 32,000 remortgage loans advanced in August, a 22% decrease on July, and a 57% decrease on August last year.

The CML said overall remortgaging activity fell away due to the low interest rates and restrictive lending criteria for the most attractive deals.
 
Despite the gloomy figures, house purchases worth £7.2 billion in August, accounted for the largest share of total mortgage activity since 2002. 

At £12.3 billion, gross mortgage lending – which encapsulates all mortgage lending activity including house purchase, remortgages, and buy-to-let lending – declined 36% from August 2008.

Mr Samter added: “Remortgaging demand has fallen away in the low interest rate environment and this is dragging down gross lending levels overall.”

Home movers typically borrowed 66% of the property’s value and 2.74 times their income.

ends

LENDERS MUST HELP RECOVERY

Friday, October 9th, 2009

LONDON, UK, Oct 8. 2009 – Lenders must do more to help the housing market recovery, the National Association of Estate Agents (NAEA) said today.

 

The NAEA’s monthly market report showed that demand for property has returned to the housing market, particularly among first time buyers.

 

NAEA President Gary Smith said: “NAEA figures show that the housing market is well into the first phase of recovery, but more needs to be done before we can enter the second phase.”

 

Mr Smith called on the Government to consider extending the stamp duty holiday in the same way as it has done with the car scrappage allowance scheme. He said that first time buyers are usually the foundation of sales chains – so any cost of extending the holiday will be heavily outweighed by additional stamp duty and VAT revenues generated further up the chains.

 

The NAEA’s monthly trends report revealed how the market bounced back in September after a slight seasonal dip. The number of people registered to look for property increased from 238 per branch in August to 294 in September, while the number of sales made increased from eight to nine.

 

The number of first time buyers remained strong – making up 26 per cent of new sales, while the level of housing stock dipped slightly from 62 houses on sale per branch in September, dropping from 64 in August.

 

Mr Smith said: “The state of the market in September should be a real source of optimism. The NAEA predicted that the first positive indicators were strong enough to survive a seasonal dip and we are thankful to have been proved correct.”

NO CHANGE IN UK BANK RATE

Friday, October 9th, 2009

LONDON, UK, Oct 9. 2009 – The Bank of England’s Monetary Policy Committee has voted to keep the official Bank Rate paid on commercial bank reserves at 0.5%. 

The Committee also voted to continue with its programme of asset purchases totalling £175 billion financed by the issuance of central bank reserves.

The last change in bank rate was a drop of 0.5 percentage points to 0.5% on 5 March 2009. 

Responding to the Bank of England’s statement, Ian McCafferty, CBI chief economic adviser, said the economy was still in need of support.

He said: “Some economic indicators have cast a more optimistic light recently, but businesses and households should be mindful that growth is expected to remain anaemic well into 2010.


“The Bank will therefore need to use monetary policy to support the economy for a good time yet.

“It is as yet early days in gauging the effect of the QE program so far, but companies are still facing serious constraints in their financing, so the Bank must take no risks in ending the programme prematurely.”

A £75 billion programme of asset purchases financed by the issuance of central bank reserves was initiated on 5 March 2009. The programme was increased to a total of £125 billion on 7 May 2009 and to a total of £175 billion on 6 August 2009.