Morning Call: pick of the papers

The ten must-read pieces from this morning's papers.

1. The immigration triffid is growing. Eradicate it (Times) (£)

Even the Labour leader seems to believe - wrongly - that foreigners (a) take British jobs and (b) drive down wages. David Aaronovitch calls for a change.

2. Now Ed Miliband's challenge is to put his stamp on his Labour party (Guardian)

After the most radical speech by a leader for a generation, Miliband must turn the brave talk into a winning platform, says Seumas Milne.

3. Tentative progress, but Germany remains the key (Independent)

This leading article urges that the fact that the solution to the crisis is more Europe, rather than less, should not be lost in the rhetoric.

4. The best way to tackle the Big Four (Financial Times)

John Gapper argues that it would be better to encourage the emergence of new competitors to the biggest firms through ownership and anti-trust measures.

5. You don't always win on moral high ground (Times) (£)

In business you have to take unpopular decisions. James Dyson argues that that doesn't mean they're wrong.

6. A Robin Hood tax could turn the banks from villains to heroes (Guardian)

An EU-wide Robin Hood tax is close to becoming reality, says Bill Nighy. Cameron must now tell the City to get on board.

7. Failed by the very people who are there to protect us (Independent)

Yvette Cooper has done a good thing in setting up an independent review of policing, says Andreas Whittam Smith.

8. Cameron has lost his way on crime (Financial Times)

The Conservatives traditionally flew the flag for law and order. The sad reality is that this flag is flying at half-mast, writes Paul McKeever.

9. Children First (Times) (£)

More children are being taken into care, and fewer are adopted. This leading article says that the adoption system has grown worse, not better.

10. Regeneration? What's happening in Sheffield's Park Hill is class cleansing (Guardian)

Once unpicturesque council tenants have been 'decanted', inner-city estates can be safely claimed by the affluent, says Owen Hatherley.

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There are risks as well as opportunities ahead for George Osborne

The Chancellor is in a tight spot, but expect his political wiles to be on full display, says Spencer Thompson.

The most significant fiscal event of this parliament will take place in late November, when the Chancellor presents the spending review setting out his plans for funding government departments over the next four years. This week, across Whitehall and up and down the country, ministers, lobbyists, advocacy groups and town halls are busily finalising their pitches ahead of Friday’s deadline for submissions to the review

It is difficult to overstate the challenge faced by the Chancellor. Under his current spending forecast and planned protections for the NHS, schools, defence and international aid spending, other areas of government will need to be cut by 16.4 per cent in real terms between 2015/16 and 2019/20. Focusing on services spending outside of protected areas, the cumulative cut will reach 26.5 per cent. Despite this, the Chancellor nonetheless has significant room for manoeuvre.

Firstly, under plans unveiled at the budget, the government intends to expand capital investment significantly in both 2018-19 and 2019-20. Over the last parliament capital spending was cut by around a quarter, but between now and 2019-20 it will grow by almost 20 per cent. How this growth in spending should be distributed across departments and between investment projects should be at the heart of the spending review.

In a paper published on Monday, we highlighted three urgent priorities for any additional capital spending: re-balancing transport investment away from London and the greater South East towards the North of England, a £2bn per year boost in public spending on housebuilding, and £1bn of extra investment per year in energy efficiency improvements for fuel-poor households.

Secondly, despite the tough fiscal environment, the Chancellor has the scope to fund a range of areas of policy in dire need of extra resources. These include social care, where rising costs at a time of falling resources are set to generate a severe funding squeeze for local government, 16-19 education, where many 6th-form and FE colleges are at risk of great financial difficulty, and funding a guaranteed paid job for young people in long-term unemployment. Our paper suggests a range of options for how to put these and other areas of policy on a sustainable funding footing.

There is a political angle to this as well. The Conservatives are keen to be seen as a party representing all working people, as shown by the "blue-collar Conservatism" agenda. In addition, the spending review offers the Conservative party the opportunity to return to ‘Compassionate Conservatism’ as a going concern.  If they are truly serious about being seen in this light, this should be reflected in a social investment agenda pursued through the spending review that promotes employment and secures a future for public services outside the NHS and schools.

This will come at a cost, however. In our paper, we show how the Chancellor could fund our package of proposed policies without increasing the pain on other areas of government, while remaining consistent with the government’s fiscal rules that require him to reach a surplus on overall government borrowing by 2019-20. We do not agree that the Government needs to reach a surplus in that year. But given this target wont be scrapped ahead of the spending review, we suggest that he should target a slightly lower surplus in 2019/20 of £7bn, with the deficit the year before being £2bn higher. In addition, we propose several revenue-raising measures in line with recent government tax policy that together would unlock an additional £5bn of resource for government departments.

Make no mistake, this will be a tough settlement for government departments and for public services. But the Chancellor does have a range of options open as he plans the upcoming spending review. Expect his reputation as a highly political Chancellor to be on full display.

Spencer Thompson is economic analyst at IPPR