Review of the Papers, Friday 23 February

Government

• Standards are improving in Tony Blair's controversial city academies, but pupils are still not grasping the three Rs, Whitehall's spending watchdog warns. A National Audit Office report says the £5 billion programme is on track to deliver "good value for money" by transforming education in deprived inner-city areas. Results are improving at around four times the national average but remain persistently low in English and maths. In a blow to the Prime Minister, the report also criticises the programme for going millions of pounds over budget. Furthermore, the auditors expose the tiny sums invested by some sponsors to gain control of schools - as little as a 10th of original estimates - and say four backers have missed payment deadlines. The revelations will fuel controversy over the involvement of private companies in state schools. http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2007/02/23/ncane123.xml

• Gordon Brown is coming under pressure to resolve a row over tax rules that prevent flagship city academies from opening their doors to local communities. The value added tax issue is seen by Downing Street as a litmus test of the chancellor's determination to continue with the academies programme. Mr Brown has reassured Tony Blair he will maintain his support. The row comes as the business-backed state schools, one of the government's most controversial education initiatives, were issued with a glowing report card today by parliament's spending watchdog, which declared them good value for money and a success in raising educational standards in deprived areas. http://www.ft.com/cms/s/3283720a-c2e2-11db-9e1c-000b5df10621.html

• The Government's green credentials were called into question after it emerged that its Climate Change Bill would not become law in the current parliamentary session. Ministers trumpeted the decision to include the Bill in the Queen's Speech last November as a sign that the environment was at the top of Labour's agenda. But they confirmed yesterday that when it is published next month, it will appear only in draft form. This means there will not be time for it to complete its passage in the current parliamentary session and that it is unlikely to be passed until next year. http://news.independent.co.uk/environment/climate-change/article2296838.ece

• The number of deaths caused by two superbugs soared in 2005, raising new concerns over the standard of hygiene at hospitals across the country. According to government statistics, the number of deaths linked to MRSA rose by 39% in 2005 and deaths linked to a second superbug, Clostridium difficile, increased by 69%. The head of the health inspectorate accused the government yesterday of failing to give enough priority to patient safety while Age Concern accused it of shirking responsibility for cleaning hospitals. http://www.guardian.co.uk/medicine/story/0,,2019386,00.html

• Gordon Brown now has an 11-strong "kitchen cabinet" of special advisers and personal aides, costing taxpayers more than £1million a year for the first time. 11 special advisers help him formulate policy - far more than his Cabinet colleagues. The Ministerial Code asserts: "Cabinet Ministers may each appoint up to two special advisers."

• A highways agency has been criticised for spending more than £15,600 on a leaflet which explains how traffic lights work. The leaflet by Kent Highway Services also explains what a zebra crossing is and why the grass beside the road is cut. A spokesman for Kent Highway Services defended the work. He said: "The leaflets have been written with the public in mind." http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2007/02/23/nroad23.xml
• A new HM Revenue & Customs radio campaign urging employees to "shop your boss" if they feel their employers are dodging tax payments has drawn an angry response from the Federation of Small Businesses. Employees are encouraged to ring a Tax Evasion Hotline if they suspect their employer is trying to evade tax and National Insurance payments. The radio advertisement features a restaurant owner telling a waitress there is nothing she can do about being paid cash in hand. http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/02/23/cntax23.xml

• Theatres, concert halls and other cultural organisations are set to enjoy bigger tax savings in the wake of a legal decision yesterday. Senior judges in the Court of Appeal ruled in favour of the Mayflower Theatre Trust, the country's fourth largest theatre and a charitable trust, over its bid to recover part of the value added tax charged on the cost of hosting theatrical productions. The three judges all dismissed an appeal by HM Revenue & Customs from an earlier High Court ruling, which had also ruled in Southampton-based Mayflower's favour but for different reasons. http://www.ft.com/cms/s/64d21350-c2e3-11db-9e1c-000b5df10621.html

• A major Tory donor has withdrawn support for the "red herring" europhobic UK Independence Party, boosting David Cameron's efforts to contain threats of defections from his party\u2019s right-wing. The move coincides with growing confidence among Tory traditionalists that Mr Cameron will fight the next election on a strongly eurosceptic manifesto. Lord Kalms had warned earlier this year that he would consider voting for UKIP. But he told the FT he now considers the fringe party "a bit of a red herring... I'm not going to give them money". http://www.ft.com/cms/s/4a523328-c2ae-11db-9e1c-000b5df10621.html

• Royal Mail could be forced to repay government funding after the European Commission on Thursday launched an in-depth inquiry into £2.65bn of state support for the postal operator. The Brussels probe will look into allegations the UK has broken state aid rules by giving Royal Mail financial support on non-commercial terms. It will cover loans to the state-owned operator dating back to 2001, as well as a £300m loan and £850m of support for Royal Mail's pension fund announced this month. http://www.ft.com/cms/s/f2285f10-c2bc-11db-9e1c-000b5df10621.html