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[trumpet] 02/3/2003 21:30

Pay inflation hits public spending
2 March 2003, This Is Money

GORDON Brown’s attempts to improve public services have been hit by spiralling wages in the sector, it has been claimed.

The Business newspaper says analysis of official figures reveals that 70% of the extra cash poured into services by the Chancellor is being wasted, thanks to a combination of pay inflation and a rise in the number of bureaucrats.

Government spending on goopds and services rose 7.9% in the last quarter of 2002, compared with the same period a year earlier. But the newspaper cited ONS estimates that the inflation-adjusted increase was in reality only 2.3%

[scripophilist] 02/3/2003 20:19

See the headline in the business today?, Basically summarising that most of the public sector expenditure has been wasted on wage increases and costs.

Now what a surprise that is.

Meanwhile over in the private sector times are not good and are getting worse.

[jl202] 13/2/2003 22:50

pmeas, good man!

[maxk] 13/2/2003 17:49

Bit of fun to cheer you up!

[samples123] 13/2/2003 17:33

Franceys

Compared to other leading nations, the UK fared poorly, with France having 128 productive days, the US on 142 days and Germany with the most productive global workforce at 145 days.

UK productivity was hit by poor planning and controlling of work, which the report claimed was getting worse. Furthermore, IT problems increased from 7% to 10% as a cause for loss of productivity to British companies, while poor morale and poor management of the workforce were also significant factors.

These results were based on a survey of nearly 1,400 companies in nine countries and a poll of 2,700 chief executives undertaken by Proudfoot Consulting.

The UK lags behind in productivity in part because of the lack of investment in equipment, infrastructure, technology and skills. According to the DTI, for every GBP 100 invested per worker in the UK between 1983 and 1994, GBP 140 was invested in Germany, GBP 150 in France and GBP 160 in Japan.

Additionally, human resource management and industrial relations commentators have long debated the "short termism" of British industry, which is a reflection of corporate governance structures - including the ease of takeover/mergers and the pressure from the City to produce short-term profits.

Franceys if you imagine that decades of low investment and short termism favoured by your friends in the city can be reversed overnight you are grossly ignorant.

[pmeas] 13/2/2003 17:18

JL202 You seeing the dislocation of the ftse against the dow yet.

[jl202] 13/2/2003 16:38

PW has been onto GB for a while now -- the Times is turning Blue which means the Sun, and thus the country, can only go one way,,

It was the boom that kept the gloss -- and house prices, wide path that is,,

Increase Spending is exactly what the labour party has done for the NHS and the money has gone directly into wage increases and prices increases on everything aspect of supplies. What they haven't done is Increase Investment or Productivity. When was the last Clarion call to increase Investment spending productivity in the NHS?

[franceys] 13/2/2003 16:07

Patience Wheatcroft of The Times (who is both an economist - unlike Brown - and knows a lot about business - totally unlike Brown) is spot on again today:

"It might help if the Chancellor of the Exchequer UNDERSTOOD the predicament that faces business at the moment. Yet, despite his constant call for improved productivity, there is little indication that Gordon Brown has any sympathy for the difficulties facing those who run businesses.
Instead he is now set on ploughing billions into the public sector, the only source of new job opportunities. The much promised reform of public services has translated into little more than increased spending on them...taxes will inevitably have to rise.."

She could have added that during every year that Brown has grasped the financial reins of this country that this country's productivity has fallen. This abysmal record even happened in a time of boom!
Joe Public, for goodness sake wake up and understand just how bad Brown is in actual fact.

[dontknowitall] 12/2/2003 00:11

I smelt a Tory victory at the last election!

But I think they'll win this one with Labour in third place after the Lib Dems. I think it will be a close thing between the Liberals and Tories though.

Exactly who'll be the tory leader, I don't know, but it won't surprise me at all if it's IDS.

Once the Tory ratings in the polls start to increase (as I think they will), it will be IDS who benefits from the blue rinse grass roots and the likes of Kenneth Clarke obtaining the leadership will be finally finished.

All in my opinion of course and I've only said this to reinforce my own right wing attitude.

:)

[jl202] 11/2/2003 21:50

A poll reported in the independent has the tories on 33% and labour 35% - down 2. If that aint close,,

[samples123] 11/2/2003 20:01

Q7 Which of these statements comes closest to your view of Michael Portillo?

I like him and I like his policies 15%
I like him but I dislike his policies 10%
I dislike him but I like his policies 9%
I dislike him and I dislike his policies 29%
Don't know/no opinion 37%

Mori poll Mail on Sunday

[piscean] 11/2/2003 18:21

FSE, agreed that this goverment should be finished but people kept saying that about the previous Tories and they got one more ride...don't think Labour deserve but can see them getting it...hung parliament anyone? (I had a bet on Party Politics and a hung parliament last decade - fantastic odds, plenty of wonga - just missed out).

I like Portillo but that man is as devious as they come - doesn't necessarily mean he can't benefit the country and he has ideas. Clarkey is yesterdays man and should be...may be a leader but has run out of ideas...I'd have no problem with baldy back in (any Tory candidate was doomed with the recent history) with Portillio groomed for the role...

jmo...

[jl202] 11/2/2003 15:33

"Comparisons with a period 20 years ago are rapidly becoming less relevant,,"

I meant this metaphorically ;)

[fse] 11/2/2003 14:19

samples (alias twisted knickers)... Think you are wrong about the Tories getting in. It wont i agree be anything to do with their efforts but rather that this Government has exceeded its mandate and is operating outside of public opinion and no longer has public trust. They are finished... shot in the old foot so to speak.
What do you think about Portillo ?

not sure ADVFN would allow us space to post examples of the things you say that we disagree with. I wish you would not get so animated about all of this.
;-)

[samples123] 11/2/2003 14:04

Scripophilist - 07 Feb'03 - 20:52 - 134 of 145


Sorry samples123 but you are talking complete rubbish

exactly which part of my post do you disagree with and what are the true figures? i won`t hold my breath!!

you say there was no reason to increase taxation, except of course that borrowing was 43.7% of GDP and the Tories were continually running budget deficits

jl202


Comparisons with a period 20 years ago are rapidly becoming less relevant,,


the 1990`s were 10 years ago dear boy! and they are completely relevant. a stock market crash in 1987, property peaking 1988/1989. government increasing borrowing and introducing stealth taxes as the economy went into recession not raising tax allowances increase in VAT to 17.5%, VAT on fuel etc.

i don`t defend the current government i`m merely pointing out that the Tories on here are starting to look at the past through rose coloured spectacles rather than identifying the similarities

The Tories will not get back into power until they come up with credible alternatives.

[pmeas] 11/2/2003 13:38

Greenpeace next to rule.people are sick of politicians just like the financial markets,both dying breeds that might never see the light of day again once this one goes to ground.

[ashtongray] 11/2/2003 13:25

pmeas

Spot on re tory leader. If IDS can't make some impact right now out of government difficulties (Europe, firemen, hospitals, schools, crime...etc) then he never will imo. In any case if the tories are to win, they need a leader who can appeal to uncommitted voters, like Tony did, and thats not IDS either. If the Tory party is unwise enough to commit to fighting the next election with IDS, they have lost it already.

[fse] 11/2/2003 13:17

Dont groan but i really feel Portillo should take the reins, I know what they say about him but he has a mass of experience and knows what its like to endure bad times and character assassination.
Ken Clarke is worthy of a cabinet position but I dont feel he is a leader.
I think labour are through.
I just hope the Tories dont start spouting negative policy and just get on with it... probably will run their normal smear campaign which could ruin their chances... !

[pmeas] 11/2/2003 13:07

Tory victory,you won,t see one of those till they find some one to lead the party.I didn,t think there was still a tory party,is there.

[jl202] 11/2/2003 11:58

I smell a tory victory,,

[trumpet] 11/2/2003 10:53

Gloomy picture emerges from surveys
11 February 2003

IAN BULLOCK, ASSISTANT EDP BUSINESS EDITOR

A worrying picture of business confidence in East Anglia has emerged from two new surveys, with firms issuing negative announcements and saying that they are concentrating on their very survival.

The region is said to have been the third worst affected area in the UK as a downward spiral for business continued into the last quarter of 2002, according to a survey by KPMG Restructuring.

The number of negative announcements issued across the region rose by 6pc to 131 in the October-December period. And the latest figures reveal that the Eastern counties were responsible for more then 10pc of the 1292 negative warnings that were issued across the UK as national figures rose.

The figures report the numbers of businesses making negative announcements of any kind, including profit warnings, redundancies and significant restructuring.

A picture of doom and gloom continued across a number of sectors but especially electronics/computer software, which was responsible for 15pc (20 of 131) of the warnings.

The leisure, sports and hotel sector was badly hit as it was responsible for 11pc (15) of the warnings – a sign that cutbacks in discretionary consumer spending and concerns over security issues are continuing to take their toll on the sector.

The engineering sector was also hit hard with 11pc (15) of the Q4 warnings for the region. This was compounded by the fall in number of UK manufacturing jobs to 3.58m in December, which was the lowest since the Office for National Statistics started compiling records.

Richard Philpott, a director with KPMG in the Eastern counties, said: "The figures show what is likely to be a general trend throughout the rest of 2003. We've seen a general tightening of spending in the market-place, and the ability of businesses to survive will depend on the extent to which they put realistic plans in place that take into account the difficulties ahead."

He added: "In addition, businesses across the region are facing higher costs such as the new National Insurance changes that will come into effect in April this year. Couple this with the prospect of a war with Iraq occurring, and the outlook for some specific sectors of business in the Eastern counties is concerning."

In a separate survey, 38pc of small and medium enterprises in the East of England say that they have entered 2003 focused on business survival.

This is one of the findings of the first Tenon Forum Quarterly Report on Entrepreneurial Britain. SMEs account for 3m of Britain's 3.7m businesses and the Tenon Forum is an independent think-tank made up of representatives from the UK's small business community.

Over four-fifths (83pc) of SMEs in the East say their main focus in the first quarter of 2003 is on cost-cutting, further fuelling concerns that the economy is slowing down.

One major concern is the increase in volume and complexity of employment regulations, forcing many SMEs to direct resources to compliance and form filling and cutting costs in core business activities. Recruitment and retention issues are cited by over half as preventing them from meeting their business objectives.

"Employment regulations are inhibiting smaller businesses, making them more nervous about taking staff on," said Alistair Wesson, Tenon director. "Firms are also more wary about taking a chance on employing unskilled staff just in case the job doesn't work out. The greatly enhanced powers of employment tribunals have made this a business-threatening worry for smaller firms."

Employment-related concerns occupy four of the top five places in the list of issues hampering firms' business objectives. In addition to recruitment and retention, health and safety (33pc), training and develop-ment needs (22pc) and European employment legislation (27pc) all loom large for SMEs in the East of England.

Figures from Ernst & Young, reported in EDP Business last month, showed that the number of profit warnings issued by public companies in East Anglia fell from 12 to seven in the last quarter of 2002, suggesting that the region was faring better than others

[trumpet] 11/2/2003 10:49

FSE,

NHS managers receiving pay rises up to 30%. Meanwhile a friend of mine working in advertising and design is told "take a 1/3 off your salary and work longer hours".

Rising tax, falling wages (or no job) - for those who have to compete for work and the cheerleading lenders still pile more debt on their hapless tenants.

No more boom and bust? - well after this one pans out we may not see this cycle for a very long time.