Press Review

Darling fails to calm plunging markets

The papers all report on the dramatic dive in the stock market yesterday, with the FTSE 100 recording its biggest ever one-day fall and chancellor Alistair Darling failing to steady nerves in the City with a statement to the Commons.

The Telegraph describes the events as "market mayhem" and the Independent as "the day that fear hit the markets", with confusion over whether Germany was about to bail out its banks.

The Guardian's front page shows a timeline of the day on the stock exchange, with a plunge coinciding with and following the chancellor's speech.

Darling sought to reassure MPs and investors that the economy would come through the financial crisis, pledging to do "whatever it takes" to restore confidence and stability.

But he refused to spell out any specific measures, saying it would not be helpful to "speculate" at this stage. That tone was at odds with some expectations in the City that he may have announced or signalled support for a bail-out of British banks.

Part of the blame was last night being attributed to Bank of England governor Mervyn King, who was said to have raised expectations by briefing the Conservative leadership that the recapitalisation of banks would be needed.

The option was still being considered by the Treasury last night, with the Tories calling for banks to curb pay and bonuses in exchange for any injection of funding.

Emissions report recommends bigger cut

The government's climate change committee will today call for at least 80 per cent cuts in the UK's carbon emissions by 2050, including those from aviation and shipping.

Committee chairman Lord Turner also tells the Guardian that "we have to totally decarbonise the power sector by 2030, well before 2050", suggesting that ministers will not be able to go ahead with a new coal-fired power station at Kingsnorth in Kent that does not capture its emissions.

The ratcheting up of the target from the 60 per cent suggested in the climate change bill would cost the economy one to two per cent of its output, but the committee suggests that growth would still be strong.

The government is expected to welcome the report, although it may not accept it in full having previously resisted plans to include transport emissions in its targets.

Energy and climate change secretary Ed Miliband said: "We need to act now to avoid dangerous climate change and the action we take must be guided by experts."

'Hostilities over' as backbenchers back Brown

A leading Labour rebel has declared his renewed support for Gordon Brown at the first meeting of the parliamentary Labour Party since the summer recess.

George Howarth, a key player in last month's backbench attempt to trigger a Labour leadership contest, told the prime minister that "hostilities are over."

Brown won applause at the meeting for declaring that the Conservatives had not capitalised on the economic turmoil facing Britain. “People's minds are not yet set," he said. "We have to go out and win the arguments on the economy.”

However the Guardian reports that Brown has angered some in the party, including deputy leader Harriet Harman, by demoting communities minister Parmjit Dhanda to the backbenches.

Campbell to work on Labour elections

Alastair Campbell is expected to play a key role in Labour's European and county council election campaigns in June next year, the Independent reports.

Campbell, Tony Blair's former director of communications, will join up with the new business secretary Peter Mandelson and Labour's campaign co-ordinator Douglas Alexander to recreate the party's 2001 campaign team.

While expected to play a key role in the 2010 general election campaign, Campbell has resisted Gordon Brown's attempts to bring him back on a full-time basis, leaving the prime minister searching for a communications chief following his decision to hand former spin doctor Damian McBride a backroom strategic role.

PM's economic 'war council' meets

The prime minister's new National Economic Council met for the first time yesterday.

Held in the high security Cabinet Office Briefing Room (A), the hour-long meeting was attended by new City minister Paul Myners, new communications minister Stephen Carter, science minister Lord Drayson, economic competitiveness minister Baroness Vadera and business secretary Peter Mandelson. Alistair Darling, the chancellor, led discussions.

Meanwhile Mandelson was admitted to hospital after the meeting, to have kidney stones removed.

Diplomas in credibility criticism

A report by the Commons public accounts committee has warned that new Diploma qualifications are not seen as "credible" by parents and universities.

Dismissed as outdated by the government, the report warns that "much remains to be done" to achieve the aims of Diplomas.

Shadow schools secretary Michael Gove expressed concern at "yet another report criticising the government's handling of their introduction."

Clark promoted in Tory reshuffle

Conservative leader David Cameron has carried out a limited shadow cabinet reshuffle.

Greg Clark was promoted from shadow charities minister to oppose the new energy and climate change secretary Ed Miliband.

He will be supported in the role by shadow climate change minister Greg Barker and shadow energy minister Charles Hendry. Nick Hurd replaces Clark in the charities role.

MPs call for smacking ban

A cross-party group of MPs is set to launch a campaign to ban smacking. The group, led by Labour MP Kevin Barron, is arguing for a free vote on the issue when the Children and Young Persons Bill returns to the Commons.

"The current law allowing so-called 'reasonable punishment' of children is unjust, unsafe and unclear, and must be abolished once and for all," said Barron.

Food security moves up agenda

The Chatham House think-tank has warned that a food crisis is highly likely in the UK, with food security likely to be an increasingly important issue that could decide general elections.

Environment secretary Hilary Benn yesterday established a new food policy council of experts in a bid to improve reliability and resilience in the system.

MP wades in to Postman Pat row

The Times reports on a row over the future of children's television series Postman Pat, with Conservative chairman of the Commons business committee Peter Luff accusing the government and the BBC of "working together to kill off" the post office network.

In the updated version of the programme Pat has been promoted to a high-tech sorting office, requiring an hour-long commute, amid fears that his Greendale branch has been closed.