19/03/2014 The Papers


19/03/2014

No need to wait to see what's in the papers - tune in for a lively and informed conversation about the next day's headlines. Presented by Clive Myrie.


Similar Content

Browse content similar to 19/03/2014. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

ahead of their first match of the tournament against New Zealand on

:00:00.:00:00.

Saturday. Welcome to our look ahead to what

:00:00.:00:20.

the papers will be bringing us tomorrow. With me are the political

:00:21.:00:25.

editor of the Sun on Sunday and the financial commentator Louise Cook.

:00:26.:00:30.

As you can imagine, the Budget is dumb and 80 many of them. The

:00:31.:00:33.

Financial Times says the Chancellor's reforms to tension is a

:00:34.:00:41.

revolution. `` the Chancellor's reforms to pensions is a revolution.

:00:42.:00:50.

The Telegraph says George Osborne has placed savers at the heart of

:00:51.:01:00.

the economic recovery. The Metro has a more traditional tabloid look and

:01:01.:01:09.

feel about it. The Daily Mirror does not lead on the Budget, it focuses

:01:10.:01:12.

on the new lead in the Madeleine McCann case. The Guardian is calling

:01:13.:01:18.

the Budget a blatant attempt by the Conservatives to stem defections to

:01:19.:01:22.

UKIP. We can have a nutter about that one, without a doubt. The Daily

:01:23.:01:29.

Telegraph, Louise, the fact is, savers and pensioners, they have

:01:30.:01:33.

paid an additional price, haven't they, for the Government's attempts

:01:34.:01:39.

to cut the deficit and deal with the economic problems, because of low

:01:40.:01:45.

interest rates? Savers have borne a very large cost. As we know, five

:01:46.:01:51.

years ago, interest rates were cut 20.5%. For the first couple of years

:01:52.:01:56.

in the crisis, inflation was running substantially above that. `` cut to

:01:57.:02:06.

.5%. So you were actually getting hit in terms of the purchasing power

:02:07.:02:11.

of your money, year`on`year. Within the first 60 seconds, Osborne had

:02:12.:02:17.

mentioned saver, savour and savour, but we did not get the details until

:02:18.:02:21.

the very end. It was his grand finale. Interestingly, last year was

:02:22.:02:31.

all about house`buying, the house buyer, and this year it is all about

:02:32.:02:36.

the saver. And David? Pensioners, of course. One of the big problem is

:02:37.:02:40.

that they have suffered over the years, and savers in general, is

:02:41.:02:44.

that interest rates have been so low. While it has been good for the

:02:45.:02:48.

borrowers, and let's be honest, borrowing is what has put the

:02:49.:02:52.

country is in this mess, it might be good for growth, but people who are

:02:53.:02:56.

saving for retirement, particularly those in their 50s, 15 years away

:02:57.:03:03.

from retirement, do not know what to do with their money. Saving it is

:03:04.:03:06.

not a good option at the moment. Though this might give some added

:03:07.:03:12.

incentive. The Daily Telegraph, its readers tend to be slightly older

:03:13.:03:16.

and so on, so, if you have got money that you want to put in and I say,

:03:17.:03:20.

you can put more money into that now, and you can mix it up with

:03:21.:03:25.

shares all`cash, one or the other? Yes, he has announced lots of things

:03:26.:03:30.

for savers. He has said you can put ?15 a year `` ?15,000 a year into

:03:31.:03:37.

ISAs. He also announced a pension bond, with up to 4% interest. The

:03:38.:03:46.

key thing, as you said earlier, was the reform to the pension industry,

:03:47.:03:52.

which came as a massive shock to the financial services industry. Some of

:03:53.:03:57.

the stock price reactions are quite dramatic. Legal and general, it is

:03:58.:04:01.

as enormous company, its stock price was down 9%. Essentially, what

:04:02.:04:07.

Osborne is saying is, you have saved for your pension all your life, you

:04:08.:04:12.

can make the decision as to what you want to do with it. In the past, you

:04:13.:04:16.

have been forced to buy annuities, which, with interest rates at .5%,

:04:17.:04:22.

you have been absolutely screwed. If you have retired over the last five

:04:23.:04:27.

years, you have been screwed by this .5% interest rate. Now, finally, you

:04:28.:04:30.

can choose what you want to do with your money. You can buy a house if

:04:31.:04:35.

you want to and went it out, you can keep your money in the stock market.

:04:36.:04:39.

You can choose what to do with your pension pot, and that is a very,

:04:40.:04:44.

very big change. Clearly from the stock price reactions from some of

:04:45.:04:47.

the big pension providers, the view is, they have made a lot of money

:04:48.:04:51.

out of the fact that you have had no choice. Interestingly, it used to be

:04:52.:04:56.

the case that we had no idea what was in the little red box when the

:04:57.:04:59.

Chancellor came out, but now, of course, we get titbits. This, on

:05:00.:05:06.

pensions, that could not be leaked. That would have completely messed

:05:07.:05:09.

things up for the insurance companies. They kept a big lid on it

:05:10.:05:15.

this year. One job I have to do is to try to get the leaks. I got quite

:05:16.:05:23.

a bit right. But nobody got a sniff of the pensions. I was getting some

:05:24.:05:27.

people from certain industries ringing me, texting me last night,

:05:28.:05:31.

as late as this morning, asking me, have I got a sniff of what was

:05:32.:05:37.

happening in their particular field? And nobody knew. Louise was

:05:38.:05:42.

talking about stocks and shares going up. I'll tell you who's stock

:05:43.:05:46.

has gone up today, that of George Osborne. There is a piece in the

:05:47.:05:51.

Telegraph, which says, an improving Chancellor. If you turn the clock

:05:52.:05:58.

back two years to the Omni shambles, it was a disaster. George's stock

:05:59.:06:04.

went through the floor, he was regarded as a no hope Chancellor,

:06:05.:06:07.

the pasty tax and everything. Now, he is growing in confidence. He is

:06:08.:06:11.

leaving going out once a week and meeting people! I hear the reason it

:06:12.:06:23.

was kept so quiet was that essentially, it is inside

:06:24.:06:25.

information. Regarding the stock price, if you did that, there could

:06:26.:06:34.

be criminal charges. Moving onto the Guardian, you talked, David, about

:06:35.:06:40.

Mr Osborne's stock going up. Attention, he would say, and the

:06:41.:06:44.

Tory half of the coalition would hope, that all their stock is up,

:06:45.:06:52.

with the election next year. Hence the Budget being aimed at older

:06:53.:06:55.

people, savers and pensioners, people who vote. Is that what the

:06:56.:07:02.

photo is about? I thought it was a printing error. What I want to know

:07:03.:07:08.

is what you would have to vote to go back to blonde again. That is what I

:07:09.:07:21.

want to know. Now, this is an attempt to get back some of the core

:07:22.:07:24.

Conservative vote who have fled to UKIP. They are the people, probably

:07:25.:07:30.

in their 50s, who are fed up with the Conservative Party and David

:07:31.:07:35.

Cameron generally. And verily holding this out. It is also savers,

:07:36.:07:40.

as we said, younger people saving up, those who want ISAs, those

:07:41.:07:44.

coming up to retirement, and those who are retired. He is giving savers

:07:45.:07:49.

the chance to claw the moneyback. So, we have got a guaranteed

:07:50.:07:56.

referendum, 2017, under the Tories, pensioners have been helped, savers

:07:57.:08:00.

have been helped, he has sorted it out, hasn't he, as far as his base

:08:01.:08:06.

is concerned? The trouble is, he has so little fiscal room to move. This

:08:07.:08:11.

is the problem. It still lasted 15 minutes, however long it was, but he

:08:12.:08:18.

did not actually say that much `` 50 minutes `` in terms of impact on the

:08:19.:08:25.

economy. That is Labour's point. The government is so indebted, he cannot

:08:26.:08:30.

do very much. And so, there was quite a lot of typical rallying

:08:31.:08:36.

cries, Thatcher rallying cries, it is your money, we will give it to

:08:37.:08:40.

you. Attach any, many Tory backbenchers want him to cut

:08:41.:08:44.

spending a lot faster and to cut taxes. `` actually. But he is not in

:08:45.:08:50.

the position to be able to do it. So, the Thatcher rallying cries may

:08:51.:08:55.

have been there, but the debt position is dire and remains dire.

:08:56.:09:01.

The bottom of the front page of the Financial Times also talking about

:09:02.:09:08.

pensions revolution, with Osborne wooing the silver haired, and the

:09:09.:09:13.

savers. At the bottom, he says, a totem for Thatcher's ageing

:09:14.:09:18.

children. This idea that it is about you having control of your pension,

:09:19.:09:23.

being able to save more. You are the agent of your own destiny,

:09:24.:09:26.

basically. One wonders why Thatcher did not have this revolution, or

:09:27.:09:30.

even Tony Blair, who apparently was advised to have these pension

:09:31.:09:36.

changes? Well, to me, it shows the lack of financial knowledge, that

:09:37.:09:42.

nobody could get out a financial calculator and work out the damage

:09:43.:09:45.

to annuity rates done by .5% interest rates and ?370 billion of

:09:46.:09:53.

QE. Anybody who has retired in the last five years has bought an

:09:54.:09:57.

annuities at rates which are unheard`of, which means that their

:09:58.:10:01.

pension is affected for ever. They have bought that annuity, end of.

:10:02.:10:10.

You are done. And so, to me, they could have done with some financial

:10:11.:10:14.

brains in there, going, if we are cutting rates 2.5%, then the people

:10:15.:10:19.

who are really going to get shafted is those retiring right now. This

:10:20.:10:22.

should have been done as soon as the rates were cut. It wasn't, it has

:10:23.:10:28.

taken them five years. I am really sorry for anybody out there who has

:10:29.:10:31.

retired in the last five years. Because now, you would not have to

:10:32.:10:39.

buy an annuity. One person sent in an e`mail question ` can it be

:10:40.:10:45.

retrospectively applied? It can't. We were talking about going grey and

:10:46.:10:51.

pensions. It's ` the "grey vote" is more likely to turn out. 76% of over

:10:52.:11:00.

65s voted in the last election. This is clearly a vote`winning strategy.

:11:01.:11:05.

This is clearly... It is. This is clearly, you know, savers ` I said `

:11:06.:11:11.

I predicted help for savers. I thought it might come through

:11:12.:11:15.

monetary policy ` interest rates are going to go up before the general

:11:16.:11:19.

election rather than this. There was no chance of that. It could still

:11:20.:11:27.

happen. He knew he had to do something for the savers. It looks

:11:28.:11:31.

like he's done it through fiscal policy. Let's go on to the Metro. In

:11:32.:11:41.

the pub landlord did budgets, Osborne rewards... LAUGHTER This is

:11:42.:11:53.

a traditional tabloid red top ` blue top in this case. He did talk about

:11:54.:12:01.

scrapping above`inflation rises for wine, freezing duty on whisky ` a

:12:02.:12:06.

boost for the Scottish economy. He called it a great British export!

:12:07.:12:12.

Indeed. Cut beer tax by 1p. Indeed, Mr Grant Shapps of the Conservative

:12:13.:12:16.

Party, he put out a tweet this evening and he said, "Budget 2014 `

:12:17.:12:32.

cuts ` bingo, and beer tax." The implication for some people is is

:12:33.:12:37.

that all hard`working people interested in ` beer and bingo?

:12:38.:12:42.

Grant Shapps is trying to show he is a man of the people! I don't think I

:12:43.:12:46.

have seen him with a bingo pen in his hand. I did tweet an Al Murray

:12:47.:12:52.

line ` a glass of wine for the lady. Some of my Twitter followers didn't

:12:53.:12:59.

get it was an Al Murray joke. Clearly, as far as savers are

:13:00.:13:03.

concerned, pensioners, it seems like it is good news. The devil is in the

:13:04.:13:07.

detail. That is what the Labour Party are saying. This stuff on

:13:08.:13:11.

bingo and beer and wine and that kind of stuff, is that an obvious

:13:12.:13:15.

attempt to rope in another section of society? Let's not underestimate

:13:16.:13:21.

this. Yeah. A lot of people do enjoy a pint. They do have their

:13:22.:13:25.

cigarettes and cigarettes did go up 23p, I think it was. Still above

:13:26.:13:29.

inflation. They do have their pleasures in life. These little

:13:30.:13:33.

things are important. People look out for that. You can't

:13:34.:13:42.

underestimate that. I would say there were a lot of frivolities like

:13:43.:13:47.

the cut in bingo hall tax, but in terms of the British economy and the

:13:48.:13:52.

big picture, how much wealth we generate, that is irrelevant. When

:13:53.:13:56.

we are so indebted, he can't do that much. Let's get back to what Ed

:13:57.:14:02.

Miliband and why he has been so successful ` the cost of living

:14:03.:14:06.

crisis. Everybody is feeling the squeeze as wages are going down, or

:14:07.:14:11.

being frozen and the cost of living is going up. That's why knocking a

:14:12.:14:17.

penny off a pint hits you directly, or people can feel the benefit and

:14:18.:14:22.

understand that. A lot of people don't understand the fiscal big

:14:23.:14:25.

picture and growth. Growth means nothing to a lot of people unless

:14:26.:14:28.

they can feel it in their pocket. That will be the central issue when

:14:29.:14:33.

it comes to the election. You will be back in an hour's time. Stay with

:14:34.:14:40.

us for that. So, here, now on BBC News, it is time for Sportsday.

:14:41.:14:54.

Hello and welcome to Sportsday ` I'm John Watson. On the way this

:14:55.:14:58.

evening: Relief for David Moyes, as

:14:59.:15:01.

Manchester United qualify for the quarterfinals of

:15:02.:15:02.

Download Subtitles

SRT

ASS