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Childcare costs force poorest families into debt

A third of parents turn down jobs because they cannot afford childcare, according to a study Britain’s poorest families are getting into debt because of the high cost of childcare, while a third are turning down jobs and 40% are considering leaving work because they cannot afford to pay for someone to look after their children, according to research. Parents spend almost a third of their incomes on childcare – more than anywhere else in the world, according to a study by Save the Children and the Daycare Trust . For four out of 10 families the cost of childcare is on a par with mortgage or rent payments, the study showed. Of those families in severe poverty, nearly half have cut back on food to afford childcare and 58% said they were, or would be, no better off working once childcare was paid for. The research found that parents, regardless of income, cannot afford not to work but struggle to pay for childcare, and despite many parents cutting back their spending almost a quarter are in debt because of childcare costs. Cuts to the working tax credit have hit families struggling in severe poverty, the charities said. Four in 10 of those affected have considered giving up work because they will no longer earn enough to cover the childcare bill. The cut has added an average of £500 a year on to the childcare bill of low income families, the research found. A quarter of parents in severe poverty have given up work and a third have turned down a job mainly because of high childcare costs. Of those parents in severe poverty and in paid employment 80% agreed with the statement: “Once I have paid for childcare, I am in a similar position to as if I was not working.” A quarter of parents in severe poverty have been unable to take up education or training because of high childcare costs and six out of 10 parents, regardless of income, said they can’t afford not to work but struggle to pay for childcare. The research supports recent analysis of ONS labour force figures by Aviva, which showed that the number of women opting to look after their children instead of taking up paid employment had risen by 32,000 since summer 2010, with rising childcare costs being a key factor in their decision. Sally Copley, head of poverty at Save the Children, said: “The government is undermining its own ‘make work pay’ policy by not funding the costs of childcare for the poorest families. “Childcare in the UK is among the most expensive in the world, and families on low incomes simply don’t earn enough to cover the costs and are being priced out of work as a result.” Copley added: “The government must give the poorest parents a chance to work their way above the poverty line. We know that the best way out of child poverty is to help parents into work.” The charities have called on the government to increase the amount they plan to spend on childcare support under the new universal credit in a bid to prevent low income families from being priced out of work and into poverty. Malcolm Tyndall, director at Elizabeth Finn Care, said: “Household finances in Britain are today being squeezed harder than at the height of the recession in 2009, and it seems perverse that parents are forced to turn down offers of work, or consider leaving employment, because they cannot afford the costs of childcare. “Women in particular are being disproportionately affected by ever-increasing childcare costs which, when combined with rising petrol prices, soaring rail fares and the reduction in the childcare element of the working tax credit mean that for many people work simply does not pay. We also know that when public sector job cuts begin to bite, even more women will be forced out of the workplace and their position within the economy is becoming increasingly threatened. “While everyone accepts that tough choices need to be made in order to tackle the deficit, it is worrying that the austerity measures seem to be disproportionately affecting woman and threaten to undo decades of social progress. Woman should not be used as shock absorbers for the cuts, and changes to the benefits system should not force people who want to work to choose between their careers and staying at home.” The charity offers a free and confidential service providing advice on benefits and financial grants. A spokesman for the Department for Work and Pensions said: “The cost of childcare is one of the most important factors for parents when considering work, and ministers have always said that under universal credit they will invest at least the same amount of money into childcare as in the current system. “We are working closely with the Treasury and other interested groups to ensure we get this right.” Childcare Family finances Household bills Work & careers Borrowing & debt Consumer affairs Family Children Poverty Social exclusion guardian.co.uk

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Politics blog + PMQs – live

Rolling coverage of all the day’s political developments including prime minister’s questions and the abortion debate 12.49pm: Dorries says she has had a remarkable amount of “bile” poured into her letter box over this issue. When MPs last debated abortion, in 2008, the tone in the Commons was friendly, she says. She pays tribute to Harriet Harman. Harman was been her staunch opponent on this issue, she says. But she admires Harman for what she has achieved. But this time it has been different. Dorries says there has been a great deal of “nastiness”. But it has not come from Labour MPs, she says. It has come from the leftwing media. She names the Guardian and the Times and a union-funded campaign. 12.47pm: The abortion debate is starting now. Nadine Dorries, the Tory MP who has tabled the key amendment, is opening the debate. Do read Polly Curtis’s post on her new Reality Check blog for background on the issues behind this debate. 12.37pm: Verdict: It really did feel like business as usual. Towards the end of the exchanges Ed Miliband got the better of David Cameron, I thought, largely because Cameron’s boasts about NHS achievements only highlighted the fact that he was not answering the question about six-month waiting times, but Cameron came out on top during the police exchanges, in my opinion, mainly because of the way he deployed the quote about Labour’s plans. But it wasn’t an exchange of great significance. 12.32pm: Labour’s Huw Irranca-Davies asks if Cameron agrees that housing minister Grant Shapps is a star – because he is promoting house boats as a response to the housing crisis. Cameron says Shapps is doing a great job. 12.31pm: Amber Rudd, a Conservative, asks if the government will continue to show international leadership in its response to the famine in East Africa. Cameron says Britain is leading the world in its response to the crisis. 12.30pm: Labour’s Diana Johnson asks about a Siemens investment in Hull. Cameron says this is a vital issue. He has spoken to the head of Siemens about this. The government backs its project “all the way”. 12.28pm: Labour’s Barry Gardner says 6m families face fuel poverty. Does Cameron still think it was right to cut the winter fuel payment by £100? Cameron says the government is implementing the plans that were set out in Labour’s budget. 12.27pm: Cameron refers to his copy of the Alistair Darling memoirs. It shows that increasing VAT was Labour’s policy before the election. (Actually, it was Darling’s preferred option. But Gordon Brown vetoed the idea.) 12.26pm: Mark Reckless, a Conservative, asks if Cameron will hold a referendum on Britain’s membership of the EU. Cameron says he does not see the case for one. 12.25pm: Cameron says housing benefit was “out of control” under Labour. Some families were claiming £70,000 or more in London. “How many,” someone shouts. “Too many,” he replies. 12.24pm: Sir Alan Beith asks about the Vickers report into the banks. Cameron says he is looking forward to receiving the final Vickers report. The government wants banking to be safe and the banks to lend to businesses. Policy will be designed to achieve this, he says. 12.23pm: Labour’s Mark Tami asks why the government is undermining CCTV with the freedom bill. “We’re not,” says Cameron. 12.21pm: Cameron says the number of people under the age of 18 not in education, employment or training is coming down. The back to work programme will be made available to young people. 12.20pm: Nadine Dorries, a Conservative, says the Lib Dems make up 7% of parliament. Yet they seem to be influencing many policies, like health and free schools. Will Cameron tell Nick Clegg who’s boss? Cameron says Dorries is “extremely frustrated”. As MPs laugh at the innuendo, he says he will start again. Only he doesn’t. “I’m going to give up on this one,” he says, as the laughter continues. 12.19pm: Cameron says he wants to do everything he can to help Bombardier. The procurement process which led to Bombardier losing the Thameslink contract was designed by Labour. 12.18pm: Labour’s John Woodcock asks what will have to happen for Cameron to accept that his new terror laws are putting national security at risk. Cameron says he does not accept this. The government consulted MI5 and the police before drawing up its plans, he says. 12.18pm: Cameron says everyone has to obey the law in relation to planning. 12.17pm: Snap verdict: Cameron “won” on the police, while Miliband “won” on health. More later … 12.09pm: Miliband asks why the number of people waiting more than six months for an operation has gone up by more than 60% since the election. Cameron says he is not surprised Miliband wants to change the subject. He lists some NHS achievements. John Bercow has to interrupt because the heckling is so loud. Waiting times for outpatients have fallen. Miliband points out that Cameron has not answered the question. From June 2010 to June 2011 the number of patients waiting for a heart operation has gone up 62%, and 72% for an orthopedic operation. Cameron says the number of people waiting for outpatient operations has gone done. Labour are opposing all reform to the NHS. Health bodies are supporting the health bill. Miliband wonders what planet Cameron is on. Only this week a series of health bodies said they were opposed to the bill. Under Labour waiting lists went down and police numbers up. Under this government, the opposite is happening. Cameron says Miliband hasn’t mentioned the economy. He quotes the former Labour health minister, Lord Darzai, as supporting the health reforms. He quotes John Healey, the shadow health secretary, as saying (in a Guardian interview) that what Labour says matters less than what others say. 12.04pm: Ed Miliband also pays tribute to the dead servicemen. They all demonstrated tremendous bravery and courage, he says. He also thanks the policemen and women who did such a tremendous job during the riots. The government now wants to hold the elections for police commissioners in November next year, not in May as originally planned. How much will that cost? Cameron says postponing the elections will cost £25m. It will not come from police budgets. Miliband asks why Cameron does not delay them until May 2012. Cameron asks why Miliband is afraid of having an election and “proper accountablility”. Miliband says this is the wrong policy. Setting up elected police commissioners will cost more than £100m. This would pay for 2,000 extra officers. Cameron says only 6% of people have heard of police authorities. Abolishing them will save money. The last Labour government promised directly elected representative to give people a say over policing. Why the U-turn? 12.04pm: Cameron says the health reforms will lead to a “stronger NHS”. 12.02pm: Labour’s Ian Austin says the government’s new terror legislation will stop the government from being able to keep terror suspects out of London. It’s “a charter of rights” for terrorists, he suggests. Cameron says the previous control order regime did not work. The new rules will increase public confidence in the system. 12.01pm: David Cameron starts with a tribute to the five soldiers killed in Afghanistan and one serviceman killed in an accident in Italy while serving on the Libya operation since the last PMQs. 11.58am: According to Sky’s Joey Jones on Twitter, David Cameron brought a book with him as he came into the Commons chamber. I think we can assume it’s a copy of Alistair Darling’s memoirs. 11.55am: Ed Balls , the shadow chancellor, has also put a statement out about the 50p top rate of tax. Millions of struggling families and pensioners on middle and low incomes will wonder why the only tax rise or spending cut George Osborne is willing to reconsider is the top rate of tax for the very richest. If we really are all in this together then the right priority to boost the stalled economy now should be temporarily reversing the VAT rise, which is costing families with children around £450 a year. This temporary tax cut would help to kick-start the recovery and give a much needed boost to millions of people regardless of their income. Balls also said that, if Osborne thinks the 50p rate does not make any money, he should ask the Office for Budget Responsibility to produce a report on this. 11.20am: Tim Farron , the Lib Dem president, has, in quick succession, just given interviews to BBC News and Sky and, in the process, he has done a brilliant job of stirring things up. He has just taken an existing coalition split and given it a hefty rip, and he’s also stoked up an internal Lib Dem feud. Quite an achievement with only after only about five minutes on the airwaves. The coalition split first. We know that the Lib Dems and the Tories have different views on the 50p top rate of tax. In July Danny Alexander, the Lib Dem chief secretary to the Treasury, said that anyone who believed in prioritising tax cuts for the rich was living “in cloud cuckoo land”. Two weeks later George Osborne, the Tory chancellor (and Alexander’s boss at the Treasury) said that the 50p rate was “very uncompetitive internationally” and that there was “not much point” in having taxes that were economically inefficient. Farron has taken the Alexander argument and – to use the jargon that it popular with the coaliton at the moment – put rocket boosters under it. He said cutting the 50p rate would be “phenomenally immoral”. According to PoliticsHome, this is what he told BBC News. What an outrage, in tough times like this, if the government was to give a tax cut to those who earn more than £150,000 a year and not give any more to those people who are struggling to get by and to make ends meet, many of whom are paying the price for the profligacy and recklessness of very wealthy people that got us into this mess in the first place … As Vince Cable said, the UK has had a heart attack if you like economically, and it will take a long time to get out of it. Not only would this not work economically, it would also be phenomenally immoral and send an appalling message to the overwhelming majority of hard-working people in this country that you can work hard and struggle and get no tax relief if you are on low incomes, but you get a tax cut if you are wealthy. Farron saved the Lib Dem split for his interview with Sky, where he was asked about the health bill. Officially, as far as the Lib Dem leadership is concerned, the health bill is now acceptable. After the Lib Dems demanded substantial changes at their spring conference, Nick Clegg put his foot down in government and the bill was rewritten. “That package will not now be re-opened,” Clegg said on Monday. Norman Lamb repeated the official line only this morning. But Farron, who is on the left of the party and who is a figurehead for Lib Dem activists, took a different line on Sky. He said the bill was “far from perfect” and that he would like to see “significant” changes to it in the Lords. If Lib Dem peers are emboldened by his stance, Clegg will either have to face them down, or support bids to re-open a package that he has publicly declared closed. 11.05am: Tim Godwin , the acting commissioner of the Metropolitan police, has suggested that Kenneth Clarke , the justice secretary, was wrong to talk about a “feral” underclass being responsible for the riots. Clarke used the phrase in an article in the Guardian yesterday. Appearing at the London Assembly, Godwin said: I would not use [that term] myself. The use of the term “feral” was first used in about 2000 following the death of Damilola Taylor. According to the Press Association, when pressed about Clarke’s language, Godwin said: “It’s a term I would not personally use but I think we do need to understand the level of fear of crime that actually encourages them to join gangs.” 10.59am: Michael Gove (left), the education secretary, gave an interview to Radio 5 Live this morning. According to PoliticsHome, he used it to respond to the Daycare Trust report. (See 10.28am.) We are paying more than the last government did. Even though we are reducing spending over all you have got priorities. It used to be the case that you had 12 and half free hours of childcare pre-education paid for by the government. We have extended this to 15, and we said for the very poorest this should extend to two year old children as well. There are 120,000 two-year-old children who are now getting 15 free hours of childcare and pre-school education who did not get that before. 10.44am: Chris Huhne , the energy secretary, has said today that energy companies need to “pull their finger out” because they are not on course to meet their carbon emissions targets. The government wants them to cut emissions by extending household insulation. But, although 300,000 insulation measures have been installed in the last three months, the companies will miss the target set for the end of next year if they carry on at the current rate, Huhne says in a news release. 10.36am: Brendan Barber , the TUC’s general secretary, has also criticised the economists calling for the abolition of the 50p tax rate in the FT. (See 9.13am.) At a time when cuts are biting hard and ordinary people are suffering the biggest squeeze on their living standards in years, the last thing we need is a handout to the wealthiest in our society. But this call is not just monstrously unfair, it is the kind of bad economics that led to the economic crash. Running the country in the interests of hedge fund managers created the huge bubble that burst in 2008. What is most depressing is that in the US, France and Germany there are vocal lobbies of wealthy people making the case that they should pay more to help clear up the mess that caused by the crash. In the UK they simply want to get back to what they see as the good old days, with a Chancellor quietly egging them on. 10.28am: The Daycare Trust have published a report today highlighting the cost of childcare and its impact on low-income families. It says some parents are turning down work because they cannot afford childcare. Parents in Britain spend almost a third of their incomes on childcare – more than anywhere else in the world – and such high costs have the greatest consequences for the poorest families. Of those families in severe poverty, nearly half have cut back on food to afford childcare and 58% said they were or would be no better off working once childcare is paid for. Yvette Cooper (left), the shadow home secretary and shadow minister for equalities, says that, with childcare tax credits being abolished, the government is presiding over a “childcare crisis”. The cost of childcare is going up, government support and places are being cut, with thousands of parents – particularly mums – being forced to give up work as a result. This is a nightmare for families, bad for the economy and taxpayers, and deeply unfair for working women who are once again being hardest hit. 10.18am: Nick Hurd , the Cabinet Office minister, has announced a £10m fund designed to develop new ideas to promote volunteering and charitable giving. It is supposed to help get initiatives like Freecycle off the ground. There are more details on the Cabinet Office news release. Hurd says it is a new approach to the issue. The Innovation in Giving Fund is a new approach. We want to root out the visionary ideas that too often never get the backing they need. We’re very open-minded about this, but ideas must have real potential to increase the giving of time or money. Lots of people already get involved but many don’t for a whole array of reasons, they are missing out. Simple things, like whether or not we know our neighbours, can have a huge impact on our own well-being. And more people doing more to help each other will improve our communities. There’s massive untapped community spirit, skill, and other resources, I want to hear about ways to unleash it. 9.31am: MPs will debate abortion this afternoon because an amendment has been tabled to the health bill. The bill itself doesn’t deal with abortion, but of course, despite the changes that were made to it earlier this year, it continues to be contentious. John Healey (left), the shadow health secretary, set out Labour’s objections just now in an interview on Sky. According to PoliticsHome, he said there was a “big gap” between what the government was saying and what it was doing. This is changing the very basis of the Health Service, and importantly the decisions over who provides what services will no longer be taken by the secretary of state or people who are publicly accountable. It will be more in the hands of competition lawyers and the courts. It is the wrong thing for the NHS and also creates a whole new bureaucracy that is costing money that could and should be spent on patients now. This is a very different plan and basis for the Health Service. We had the NHS at the centre of the Health Service – preferred provider was our term. We were prepared to use private companies and non-NHS providers, but only to supplement the NHS, often to add the capacity to clear waiting lists or to do things that the NHS couldn’t do. But Norman Lamb , the Lib Dem minister who at one stage threatened to resign if the bill did not get amended, told Radio 5 Live this morning that his concerns has been addressed. What I was expressing real concern about then was what seemed to be a headlong rush to a top down restructuring of the whole system without any evidence base of how it would work and that seemed to me to be incredibly financially risky for the NHS. But, as a result of the listening exercise, that has changed and it will now be an evolutionary process. Doctors will only take on budgets when they are ready and willing. That is completely different from imposing from the top down. The Department of Health is so worried about what is being said about the bill that it has published a 10-point “myth buster” intended to rebut the claims that are being made about it. 9.13am: Today the Financial Times is carrying a letter signed by 20 prominent economists urging George Osborne to drop the 50p top rate of tax “at the earliest opportunity”. They say they are concerned the 50p rate is doing lasting damage to the UK economy. According to the FT, the signatories “include many figures not usually associated with conservative causes, such as Bob Rowthorn of Cambridge University, and two former members of the Bank of England’s policy committee, DeAnne Julius and Sushil Wadhwani”. Here’s an extract. The UK has already slipped from second to fourth place as a destination for inward investment. It punishes wealth creation by imposing on entrepreneurs and business people a marginal tax rate in excess of 50 per cent once national insurance contributions are added in. This is particularly damaging when the UK needs to create new businesses in new industries and promote growth by small companies, which can grow fast. It applies to just 1 per cent of taxpayers, who already pay 24 per cent of all income taxes. If a small portion of these highly mobile workers move elsewhere because of the 50p rate then it is clearly a self-defeating way for the Treasury to try to raise money, and a reduction in tax avoidance would be more effective. It is often portrayed as a justified tax on the rich but the economic damage it causes means that it is against the interests even of ordinary workers who don’t pay it. Alistair Darling (left), the former Labour chancellor, has already said that he disagrees. According to PoliticsHome, Darling told Radio 5 Live this morning that dropping the 50p rate now would be “grossly unfair”. [The 50p rate] has got to stay in place until we get out of the crisis. It would be grossly unfair to remove it. In the long run you have got to keep your tax rates internationally competitive which means something like the tour rates we used to have. To remove it today would be grossly unfair. If they do not pay their taxes then poorer people who are going to pay. 8.55am: This will be the first prime minister’s questions for almost two months. The last one was on 13 July, which was also the day that Rupert Murdoch dropped his bid for BSkyB only hours before all parties united in a Commons debate to say the takeover would not be in the public interest. Today’s exchanges will probably be less historic, although it may be reassuring to see a return to “business as usual”. About 20 minutes after the end of PMQs we’ll then get the 90-minute debate on abortion. Those are the highlights. But here’s the full diary. 9.30am: Dominic Grieve , the attorney general, gives evidence to the Commons justice committee. 9.35am: Charles Walton, the chairman of Bombardier , gives evidence to the Commons transport committee about its failure to win the Thameslink contract. The committee is also hearing from Siemens, the company that won the contract, academics, the Unite union and the European Commission. 10.45am: Philip Hammond , the transport secretary, gives evidence to the transport committee about the Thameslink contract. 12pm: David Cameron and Ed Miliband clash at prime minister’s questions . 12.45pm: Jacqui Smith , the former home secretary, and Bob Quick , a former Metropolitan police assistant commissioner, speak at a Policy Exchange event about the challenges facing the next Met commissioner. Around 12.50pm: MPs will debate the proposal by Tory MP Nadine Dorries and Labour MP Frank Field to stop non-statutory abortion providers from giving counselling . It will be the first time that MPs have voted on abortion since 2008. Although the amendment is technical and, as Nicholas Watt reports in the Guardian today , it is expected to be defeated comprehensively, the issue has aroused huge controversy because the Dorries/Field move is perceived as a ploy that is part of a much broader campaign to restrict abortion. The debate will run for 90 minutes and I’ll be covering it in full. 2pm: William Hague , the foreign secretary, gives evidence to the Commons foreign affairs committee about foreign policy generally. As usual, I’ll be covering all the breaking political news, as well as looking at the papers and bringing you the best politics from the web. I”ll post a lunchtime summary after PMQs, and another in the afternoon. PMQs House of Commons Abortion Health policy David Cameron George Osborne Ed Miliband Andrew Sparrow guardian.co.uk

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Parents charged over suspected ‘honour’ killing

Mother and father of Shafilea Ahmed, whose body was found in 2004, to appear in court on murder charges The parents of Shafilea Ahmed, a suspected victim of a so-called honour killing eight years ago, have been charged with murder and are due to appear in court. Cheshire police said a man and a woman had been charged with murder in connection with the death of Shafilea, 17, who was last seen in her home town of Warrington, Cheshire, in 2003. Her remains were found in February 2004 on the banks of the River Kent in Cumbria. Police said Iftikhar Ahmed, 51, a taxi driver, and Farzana Ahmed, 48, of Liverpool Road, Warrington, were arrested on suspicion of murder in September 2010. Cheshire police have now charged both with murder following authorisation by the Crown Prosecution Service. They are due to appear at Halton magistrates court in Runcorn on Wednesday. The coroner at an inquest in Cumbria concluded that Shafilea had been unlawfully killed. Her parents have denied any wrongdoing in relation to her death. Crime Helen Carter guardian.co.uk

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Guardian journalist questioned over alleged phone-hacking leaks

Case raises concerns about attempts to criminalise contact between journalists and off-the-record sources A Guardian journalist has been questioned by police officers investigating alleged leaks of information from Operation Weeting, the police team pursuing phone hacking at the News of the World. Amelia Hill, a reporter behind several of the Guardian’s key phone-hacking revelations , was questioned under caution several days ago in a case that has raised concerns about attempts to criminalise contact between journalists and off-the-record sources. A spokesperson for the Guardian said in a statement: “We can confirm Amelia Hill has been questioned in connection with an investigation into alleged leaks.” Hill is one of several journalists at the Guardian who have been writing about developments in the phone-hacking scandal. The newspaper argued that the case could have lasting repercussions for the way journalists deal with police officers. The statement added: “On a broader point, journalists would no doubt be concerned if the police sought to criminalise conversations between off-record sources and reporters.” Two separate internal inquiries began this month examining whether police officers should be prevented freely from speaking to the media, as the Met tries to contend with allegations that officers were embroiled in close or even corrupt relationships with the News of the World. Emails from News International allegedly imply that journalists on the paper bought copies of Buckingham Palace’s private phone directory from a royal protection officer. An inquiry by Her Majesty’s Inspectorate of Constabulary is examining “alleged corruption and abuse of power” in police relationships with the media, while Elizabeth Filkin, the former parliamentary commissioner for standards, intends to draw up a framework for how police officers handle their relationships with reporters. The inquiries are both considering whether communication between police officers should be officially monitored and recorded by a press officer. Three years ago, a case against Sally Murrer, a reporter on the Milton Keynes Citizen, and a former Thames Valley police detective Mark Kearney was thrown out. Kearney had been accused of leaking information to her. Phone hacking News of the World Newspapers & magazines National newspapers Newspapers The Guardian Dan Sabbagh guardian.co.uk

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Matt Damon: Obama Isn’t ‘Someone Like FDR’

Time's Ten Questions to Matt Damon beat around the bush about Damon's disappointment with President Obama as he's failed to deliver for the teachers' unions, but when asked what kind of leader America needs, Damon suggested “someone like FDR,” and not like Obama. They didn't discuss the Education Secretary offering to meet the celebrity at the airport . This has to be especially embarrassing for Time, since many people remember their fawning Obama-as-FDR cover. At the Save Our Schools rally in Washington, you made comments defending teachers that received a lot of attention. My mother is a professor of early-childhood education. At the rally, I just wanted to boost teachers' morale because they've been taking a real beating. How many young people are not going into teaching who would have if there was more prestige or if public treatment of teachers was better? You've been critical of President Obama recently. What kind of leader do we need? Somebody who believes that building a strong, solid, educated middle class is ultimately the best thing for America. Someone like FDR. There's a misconception that leaders lead. They don't. They follow. Every great movement has come from the bottom up. Damon's declined the wish of Michael Moore to run against Obama in 2012. “I would never give up this great job that I have; I love making movies; it is way more fun than being a politician,” he explained. “It's what I've spent my adult life doing and it's what I'm good at. It's what I like, so I'll hang here.” Moore told a panel of bloggers “I think that [Matt Damon] has been very courageous in not caring about who he offends by saying the things that need to be said here, and if you want to win, the Republicans have certainly shown the way — that when you run someone who is popular, you win,” he said. “Sometimes even when you run an actor, you win. And I guess I only throw his name out there because I’d like us to start thinking that way.”

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George Osborne urged to scrap 50p tax rate

Group of high-profile business experts says top rate of tax is doing ‘lasting damage to UK economy’ but Osborne says he has no intention of rethinking tax and spending plans The chancellor, George Osborne, is under pressure after a group of economists called for Britain’s 50p top rate of income tax to be scrapped “at the earliest opportunity” to boost growth, amid fresh concerns that the UK is slipping towards a double-dip recession. Osborne made clear on Tuesday night that the coalition had no intention of rethinking its tax and spending plans, but admitted the long-term damage to the economy caused by the credit crunch was forcing him to revise downwards estimates for growth that were already weak. In a speech to the City, the chancellor insisted the government would not waver from its tough fiscal approach and said early action to tackle the deficit had put Britain “ahead of the curve” and in control of its economic future. But a 20-strong group of high-profile business experts signed a letter in Wednesday’s Financial Times expressing concern that Britain’s top rate of tax is doing “lasting damage to the UK economy”. The call was rejected by Alistair Darling, the former chancellor who unveiled the 50p rate in his 2009 budget, who said that removing it before the end of the banking crisis would be “grossly unfair”. The letter by economists, who include Cambridge University academic Bob Rowthorn and former members of the Bank of England’s monetary policy committee DeAnne Julius and Sushil Wadhwani, claims the top rate introduced by the last Labour government, which applies to high earners on an income over £150,000, “punishes” entrepreneurship. They called for a return to an “internationally competitive tax regime” to stimulate the faltering economy. “We are concerned that Britain’s 50p income tax rate is doing lasting damage to the UK economy,” they wrote. “It gives the UK one of the highest personal tax regimes in the industrialised world, making it less competitive internationally and making us less attractive as a destination for both foreign investment and talented workers. “It punishes wealth creation by imposing on entrepreneurs and business people a marginal tax rate in excess of 50% once national insurance contributions are added in. This is particularly damaging when the UK needs to create new businesses in new industries. The economists, who said the rate applies to just 1% of people who pay 24% of all income taxes, added in the letter: “We call on the government to drop the 50p tax at the earliest opportunity as part of a package of measures to stimulate growth. “Only by returning to an internationally competitive tax regime will Britain enjoy long-term sustainable economic growth.” In an interview with BBC Radio 5 Live to promote his new book, Darling hit back by saying that the top rate of tax should stay in place until the country “gets out of the crisis”. Now a backbench MP, Darling said he did not rule out removing the tax in the long run but recommended raising personal allowances for basic rate tax payers, who are the ones “really squeezed at the moment”, instead of cutting the 50p rate. “This has got to stay in place until we get out of the crisis. It would be grossly unfair to remove it,” said the former chancellor. “In the long run you have got to keep your tax rates internationally competitive, which means something like the tour rates we used to have. To remove it today would be grossly unfair. If they do not pay their taxes then it is poorer people who are going to pay.” But one of the authors of the FT letter said many hedge funds have already moved to Switzerland and urged the government to act “as soon as possible”. Julius told the BBC Radio 4′s Today programme: “By raising marginal rates on a small number of highly mobile people you end up not collecting the tax that you’d hoped to. “Politically speaking it is going to be difficult to abolish whenever it is done. What we are trying to do is say this is not just a matter of politics, the country really does need to increase its growth strategy and this is a place where we are just shooting ourselves in the foot.” Osborne, already under pressure from the right of his party and from business chiefs to abolish the top tax rate, has previously signalled that he believes the rate should be scrapped if it is not raising significant revenue, but it is not expected to be abolished before 2013 at the earliest, when the public pay freeze is due to be lifted. The chancellor used his speech at Lloyds of London to assert his intention to stand by his tough fiscal plan for the country. “It is the rock of stability upon which any sustainable recovery depends and we will hold to it,” he said. Osborne hinted that he expected the Bank of England to take action against growing recessionary pressures with a second round of the electronic money creation process, known as quantitative easing. The chancellor made his comments as finance ministers and central bank governors from the G7 group of countries are expected to call for fresh measures to stimulate growth when they meet in Marseilles this weekend following warnings from the International Monetary Fund and the World Bank of the dangers of seeking deep cuts in the budget deficits. George Osborne Income tax Tax Tax and spending Economic policy Green shoots Economics Hélène Mulholland guardian.co.uk

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Worldwide cancer rates ‘could be cut by 2.8m with healthier lifestyles and diets’

World Cancer Research Fund study says disease can be widely prevented as UN prepares to hold summit to tackle soaring rates Around 2.8m cancers worldwide could be prevented if people adopted healthier lifestyles and better diets, a report says. The huge toll of preventable cancers comes from an study published on Wednesday by the World Cancer Research Fund (WCRF), which comes 10 days before a United Nations summit in New York that will discuss ways to tackle the soaring rates of the disease around the world. About 12m cancers are newly diagnosed each year, many of which will have some genetic or other trigger. But increasingly sedentary lifestyles, junk food, smoking and alcohol are key factors in around a quarter of them. Experts hope the UN will take a lead by setting targets for cutting deaths from the lifestyle diseases – known as non-communicable diseases or NCDs – which include cancer, heart disease, diabetes and stroke. Campaigners hope issues such as junk food marketing to children on television, the high salt content of food, tobacco advertising in the developing world and alcohol prices will be addressed. “Cancer and other lifestyle-related diseases are one of the biggest challenges we face today, and the UN summit later this month is a real turning point,” said Professor Martin Wiseman, medical and scientific adviser to the WCRF. “With millions of lives at risk around the world, the stakes are incredibly high. And while this is an issue facing millions globally, every day in the UK people are being diagnosed with a cancer that could have been prevented. People are still unaware that risk factors such as alcohol and obesity affect cancer risk while at the same time, from television advertising to the pricing of food, our society works in a way that discourages people from adopting healthy habits. But this summit offers the chance to look at public health issues at the international level.” Cancer Health United Nations Obesity Smoking Alcohol Sarah Boseley guardian.co.uk

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George W. Bush may no longer be president, but leftists still hate remembrances of 9/11, since they perceive the “faux patriotism” it inspires to be too militaristic and pro-Bush. For an added layer of fervor, there's the Daily Kos leftists. The aptly named “Agnostic” of the “Church of Ineffable Stupidity” has decided that not only will the tenth anniversary media remembrances be a sickening “orgy of flags” and patriotic music , it's likely to inspire mouth-breathing right-wingers to murder some dark-skinned Muslims: The plain truth is far worse. Instead of being patriotic, instead of reminding us of our loss (as if we forgot or can ignore it), this kind of overdone, faux Patriotic display makes us weaker and more vulnerable.

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Tony Hayward in line for multimillion windfall after Iraq oil deal

Hayward, who quit BP 14 months ago following the Deepwater Horizon disaster , will be chief executive of Genel Energy PLC, which has oil reserves in Kurdistan Tony Hayward has sealed a deal to exploit the oil fields of Iraq’s Kurdistan region , landing the former BP boss an expected windfall of around £14m. Hayward’s return to the top of the oil industry was finalised on Wednesday as his new investment vehicle, called Vallares , agreed a merger with Genel Energy International of Turkey. The deal will deliver an estimated £176m windfall for Hayward and his fellow backers of Vallares, including Nat Rothschild. Hayward said the deal would allow Vallares to exploit “one of the last great frontiers in the oil and gas industry”. “Arguably, it [Kurdistan] is the last big onshore ‘easy’ oil province available for exploration by private companies anywhere in the world,” he added. The combined company will be named Genel Energy PLC, and aims to join the FTSE 100 by early 2012. Hayward, who quit BP 14 months ago following the Deepwater Horizon disaster , will be chief executive of the combined company, sealing his return to the ranks of major oil firm bosses. On a conference call with reporters he refused to discuss how the transformation of his fortunes over the last year contrasted with the ongoing struggle faced by those affected by the oil spill in the Gulf of Mexico. Genel holds proved and probable reserves of 356m barrels of oil. It is well-placed to tap Kurdistan’s huge reserves of hydrocarbons, with an estimated 40bn barrels of oil still to be discovered. Hayward compared the region’s potential to that of the North Sea. Vallares will issue $2.1bn (£1.3bn) worth of new shares, and use the proceeds to buy Genel in a 50:50 merger that will see the Turkish firm merge with Vallares and take its share listing through a “reverse takeover”. Vallares was created by Hayward, Rothschild and two other businessmen earlier this year, raising £1.35bn through a stock market flotation. Under the terms in which Vallares was created, the four co-founders will share a windfall worth 6.67% of the group’s value once it has completed its first major deal, in return for injecting a total £100m at its creation. That means the quartet will share around £170m, depending on their original stakes. The split of the £100m was not made public, but Hayward reportedly contributed £8m. Mehmet Sepil, the current CEO of Genel, was hit with a record fine of almost £1m for insider trading in February 2010. The Financial Services Authority imposed the penalty after Sepil, and two colleagues, bought shares in Heritage Oil following confidential test results that revealed that Heritage and Genel had made a major oil discovery. Sepil insisted that he had not realised that this breached insider dealing rules. Sepil will become president of the new company, but will not serve on its board. Some analysts have questioned whether, given this fine, Genel would have been allowed to list in London with Sepil at the helm. City grandee Rodney Chase will chair the company. He insisted on Wednesday that Genel Energy will show “total adherence” to City rules. Chase added that the merger with Genel showed that companies from around the world could be attracted to list in London. Tony Hayward BP Oil and gas companies Iraq Middle East Graeme Wearden guardian.co.uk

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Student killed after conker row

Argentinian student Steven Grisales stabbed after asking youths to stop throwing conkers at him A foreign student was killed after pleading with north London youths to stop throwing conkers at him, police have revealed. Steven Grisales, 21, remonstrated with a group in Edmonton last week as they lobbed horse chestnuts at him while he made his way to a train station. One of the group pulled a knife and stabbed Grisales through the heart. The student, from Argentina, arrived in London in July and was due to start a scholarship from Westminster College for a three-year architecture course. Grisales was taken to the Royal London Hospital where he died the next day. Four people have been arrested in connection with the killing. Two 15-year-old boys are in police custody at a north London police station after being arrested on Monday. A 19-year-old man and a 16-year-old girl have been bailed until next month. Police believe that the attack on 31 August was not gang related and Grisales did not know any of the males suspected of being involved in the murder. “Officers now believe the incident began after conkers were thrown at the victim as he made his way towards Silver Street railway station,” a Scotland Yard spokesman said. “He initially remonstrated with the youths but one of the suspects produced a knife and stabbed him.” Detective Inspector Richard Beadle, of Scotland Yard’s murder command, called for witnesses to come forward. “It happened in a busy residential area and we know there would have been a number of people in the area at the time of the attack,” he said. “We really need those people to talk to us.” Knife crime Crime Shiv Malik guardian.co.uk

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