Can Osborne really take credit for Glaxo's move?

It was a 2009 Labour announcement, not Osborne's Budget, that persuaded Glaxo to invest.

For George Osborne, who declared that his Budget "unashamedly backs business", GlaxoSmithKline's announcement of a new biopharmaceutical factory in Cumbria [its first manufacturing facility in the UK for 40 years] couldn't have come at a better time. In his interviews this morning, the Chancellor didn't miss an opportunity to take credit for the decision:

You have GlaxoSmithKline, one of the world's biggest companies, one of the great British success stories, saying the budget has changed their view of Britain as a place to invest.

They're going to create 1,000 jobs here. Now, surely my responsibility as the country's chancellor is to get the economy moving, to get jobs created, and when big companies say that about Britain, people should sit up and notice that we are changing the British economy for the better.

It is rather misleading, however, for Osborne to claim it as an overnight success. The main reason for GSK's move is the introduction of a "patent box" [which introduces a lower rate of corporation tax on profits generated from UK-owned intellectual property], a measure previously announced by Alistair Darling in the 2009 pre-Budget report. As Labour has highlighted this morning, yesterday's Budget document even admitted as much [see Table 2.2, p.53].

In his statement, GSK chief executive Andrew Witty made it clear that the patent box was the ultimate pull factor:

The introduction of the patent box has transformed the way in which we view the UK as a location for new investments, ensuring that the medicines of the future will not only be discovered, but can also continue to be made here in Britain. Consequently, we can confirm that we will build GSK's first new UK factory for almost 40 years and that we will make other substantial capital investments in our British manufacturing base.

In fairness to Osborne, however, Witty also cited further cuts to the general rate of corporation tax, which will fall to 24 per cent next month, having stood at 28 per cent when the coalition took office. Of interest, then, is the timing of GSK's announcement. The company's press office has confirmed to me that the decision was taken several days in advance of the Budget. To some, the conveniently timed announcement by Witty [who was knighted in 2012] has a whiff of corporatism about it.

George Eaton is political editor of the New Statesman.

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The hidden crisis in the National Health Service

Hospitals are no longer safe places for their staff, warns Simon Danczuk.

It feels as though not a week can pass without the media warning of a fresh “crisis in the NHS”.

But while funding shortages and the impending junior doctor strike are rightly cause for concern, another major crisis is going largely unnoticed.

Figures show that 43 per cent of A&E staff have been physically assaulted at work. Every eight minutes there is some sort of violent incident in a UK hospital.

This is unacceptable, but unfortunately cases of violence against NHS workers seem to be on the increase while the government turns a blind eye to this problem of its own making.

Plotting a graph would show a startling correlation between insufficient NHS funding and the number of doctors and nurses being attacked. As NHS budgets reach breaking point, so too do many patients.

The issue, which will be highlighted in the documentary A&E: When Patients Attack, which airs tonight on Channel 5 at 10pm, is a national scandal.

Health experts suggest that the problem can be directly linked to longer waiting times and staff cutbacks, leading to growing frustration and tension in A&E and other departments. With winter fast approaching, and the notoriously busy festive season to come, incidents of violence look set to get worse. Nobody, least of all our overworked NHS doctors and nurses, should face the prospect of going to work to be attacked, spat at or insulted.

Based at the Queen Elizabeth in Birmingham, one of the country’s biggest hospitals, When Patients Attack follows a security team which uses uniformed guards and a bank of CCTV monitors to keep hospital staff safe.

The sight of a uniformed private security team in an NHS hospital is visually jarring, it would look more at home in a high-security prison than in a place of care and compassion. But the sad reality is, guards like this are a necessary part of the NHS under a Tory Government.

A&E centres across the UK, including the one in Rochdale, are being closed or consolidated creating extra journey times for patients and more pressure on those that remain.

But there is a gaping logical flaw here. NHS trusts are spending money, which should be on patient care, on employing security staff to deal with the fallout from cuts in care.

Seeing the level of physical, verbal and racial abuse that doctors and nurses have to endure makes When Patients Attack hard to watch at times. What is clear is that many of the patients featured are not lashing out for some malicious reason, they are vulnerable and bewildered people in need of care.

Many have learning difficulties or mental health problems, others are disorientated or in pain, there are those under the influence of drink or drugs and some just have nowhere else to go. A significant amount on the security team’s time seems to be spent convincing patients who have been discharged to leave the premises.

Here we see a less obvious example of how Conservative cuts are impacting on our NHS. Hospitals are always open and always welcoming. The duty of care means that no one is turned away. As a result, they are filling the void left by homelessness shelters and local government social services.

David Cameron has made much of the Government’s plan to put mental and physical health on an “equal footing”. But this will remain little more than empty rhetoric as long as those suffering from serious and complex mental health issues continue to seek help at A&E because of a lack of any alternative.

It is not just cuts to councils and the health service that have created this epidemic of NHS violence. In my constituency of Rochdale alone, Greater Manchester Police has been forced to withdraw 150 officers from the beat because of budget cuts. Business owners and members of the public have told me that Police response times have increased dramatically since 2010. It is important that violent incidents are diffused as quickly as possible and while an in-house security team is helpful, the additional support of trained Police officers is vital. Each additional minute that NHS staff have to wait for the Police increases the risk that a situation will escalate and become more serious.

Jeremy Hunt speaks of a seven-day-a-week NHS. But these grand plans ring hollow when we see the reality on the ground in the NHS today. This government cannot even guarantee that staff can work without the fear of physical harm. Our doctors and nurses are among the hardest working people in any community. The very least they can expect is to be able to care for us in a comfortable, supportive, and above all safe, environment.


Simon Danczuk is Labour MP for Rochdale