PRESS DIGEST - British business - June 21

Monday June 21 2010

The Daily Telegraph

LOCAL AUTHORITIY 'SICKIES' TWICE THOSE OF PRIVATE SECTOR

Figures obtained from the government have shown that the number of sick days taken by staff employed by some local authorities is almost twice that taken by private sector staff. The average number of sick days taken annually by local authority workers was 9.2, compared to an average of 5.8 in the private sector and 8.3 across the whole of the public sector. Trade body the Confederation of British Industry has estimated that absence due to ill health costs local authorities across Britain 1.3 billion pounds ($1.93 billion) a year.

U.S. COURT THROWS OUT TULLETT CASE

A U.S. judge has dismissed a court case brought by inter-dealer broker Tullett Prebon (TLPR.L) against its U.S. rival BCG, in which Tullett claimed that BCG had conducted a hiring raid against it. Tullett claimed that the alleged poaching of 77 of its partners had knocked $387 million off the firm's market value. The judge struck the case down, saying that Tullett had failed to include its US subsidiaries in the law suit, and that the parent office in the UK did not have sufficient stake in the matter for the case to be pursued.

LEVY COULD HAND TAX ADVANTAGE TO FOREIGN BANKS

British Chancellor George Osborne has faced criticism for including a tax on the wholesale balance books of banks in his emergency Budget. Osborne announced that he is to "ask the banks to pay a bank levy" on Sunday, two days ahead of the announcement of the contents of the new emergency government Budget. The tax is expected to raise three billion pounds. Former City minister Lord Myners said that the tax "would be a very heavy blow to the UK" and that it may make British banks less competitive against international rivals.

GW ON A HIGH AFTER SATIVEX WINS APPROVAL

British pharmaceutical firm GW Pharmaceuticals (GWP.L) last week revealed that it has received approval from regulator the Medicines and Healthcare Products Regulatory Agency for it to sell its treatment for the symptoms of multiple sclerosis, Sativex, in the UK. Justin Gover, managing director of GW, said some weeks ago that approval would be the result of "a great deal of effort". The drug is manufactured using chemicals from cannabis plants and was first approved for use in Canada in 2005. GW is also exploring the potential of cannabis-based medication for treating conditions including schizophrenia, epilepsy and types of diabetes.

The Times

AFTER SIX YEARS, SHARIA-COMPLIANT BANK PRODUCTS ARE FLOP

Six years after the creation of Islamic Bank of Britain IBB.L, the first UK bank whose products complied with Sharia law, one of its founders has admitted that its efforts to attract a large number of Britain's two million Muslims have had little success. Junaid Bhatti remarked that Islamic finance in Britain "had been a huge flop" and doubted whether IBB could remain viable for much longer. Islamic banking products have also been launched by more established banks, particularly HSBC (HSBA.L) and Lloyds (LLOY.L), but these have also drawn little interest.

TAXMAN CRACKS DOWN ON BUY-TO-LET LANDLORDS

Increased scrutiny of buy-to-let landlords selling their properties by HM Revenue and Customs officials has boosted the amount of Capital Gains Tax received by the government to 73.6 million pounds in the past 12 months. This constitutes a 23 percent rise on the figure for 2007-08, despite the economic downturn halving overall liability for the tax. The stricter regulation coincides with an expected rise in capital gains tax to 30 or 40 percent in Tuesday's emergency budget.

WHITEBOARD MAKER SETS UP IN CAMBRIDGE CORRIDOR

Promethean PRW.L, the maker of educational whiteboards, is planning to open a new 8,000 square foot office in Maidenhead in August, which could create 100 new sales and marketing jobs over the ensuing three years. Until now, the British arm of the company had been solely based in Blackburn, where it employs 360 workers. The employees shared a combined bonus of three million pounds between them this month, after Promethean entered the FTSE 250.

The Guardian

UNITE READIES THIRD HOLIDAY STRIKE, BLAMES 'VINDICTIVE' BA

Unite, the trade union which represents around three-quarters of the 38,000 staff at British Airways BAY.L, has completed preparations for a new strike ballot of the airline's cabin crew. Unite may notify BA of the new ballot as early as Monday, meaning that cabin crew could begin a strike as soon as 3 August if they vote for what would be their third round of industrial action in seven months. Tony Woodley and Derek Simpson, the joint general secretaries of Unite, cited refusal to reinstate staff travel concessions and "vindictive disciplinary measures against Unite members" as reasons for the ballot.

LEHMAN COURT CASE DATE FOR BARCLAYS BOSSES

Executives at British bank Barclays (BARC.L) will this week appear before a Manhattan court to face questions over Barclays' purchase of failed Wall Street bank Lehman Brothers' brokerage arm, a deal through which Lehman's creditors claim they lost seven billion pounds. Senior figures at the British firm, including chief executive John Varley and president Bob Diamond, face examination over claims that Barclays made seven billion pounds in "instant profit" by getting a "secret" discount on Lehman assets, with the help of Lehman executives whom Barclays then offered jobs. Barclays is due to mount its defence against the claims in August.

UK INDUSTRY APPEALS FOR SIMPLIFIED CARBON LEVY

The manufacturers' organisation EEF has strongly criticised the government's climate change policy, calling on chancellor George Osborne to introduce an economy-wide carbon tax in his emergency budget. In a report due to be published on Monday, Gareth Stace, head of climate and environment policy at the EEF, said that "legislation at European and national level" had produced a "chaotic, over-crowded and complex landscape". The group believes that an economy-wide carbon levy taxing households and businesses according to carbon consumption would provide a clear incentive to cut pollution, while encouraging electricity producers to invest in low-carbon energy. ($1=.6743 Pound)