Vauxhall close to netting £500m funding from UK banks

Vauxhall is reportedly close to finalising a £500m loan package from a consortium of British banks,

Parent company Opel/Vauxhall has formally applied for €2.7bn in financial support from European nations including the UK government, which has agreed to underwrite the loan.

The restructuring plan will see reduced capacity and 8,300 job cuts from GM's European operations in an attempt to return to profitability.

Although redundancies are not expected at Vauxhall's Ellesmere Port plant near Merseyside, GM Europe chief Nick Reilly has confirmed that Vauxhall's van-making plant at Luton will lose 369 jobs, while another 154 staff will go from the automaker's sales and marketing operations in the UK.

The impact will be felt the most in Belgium and Germany, with the loss of 2,377 and 3,000 jobs respectively.

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Is anyone prepared to solve the NHS funding crisis?

As long as the political taboo on raising taxes endures, the service will be in financial peril. 

It has long been clear that the NHS is in financial ill-health. But today's figures, conveniently delayed until after the Conservative conference, are still stunningly bad. The service ran a deficit of £930m between April and June (greater than the £820m recorded for the whole of the 2014/15 financial year) and is on course for a shortfall of at least £2bn this year - its worst position for a generation. 

Though often described as having been shielded from austerity, owing to its ring-fenced budget, the NHS is enduring the toughest spending settlement in its history. Since 1950, health spending has grown at an average annual rate of 4 per cent, but over the last parliament it rose by just 0.5 per cent. An ageing population, rising treatment costs and the social care crisis all mean that the NHS has to run merely to stand still. The Tories have pledged to provide £10bn more for the service but this still leaves £20bn of efficiency savings required. 

Speculation is now turning to whether George Osborne will provide an emergency injection of funds in the Autumn Statement on 25 November. But the long-term question is whether anyone is prepared to offer a sustainable solution to the crisis. Health experts argue that only a rise in general taxation (income tax, VAT, national insurance), patient charges or a hypothecated "health tax" will secure the future of a universal, high-quality service. But the political taboo against increasing taxes on all but the richest means no politician has ventured into this territory. Shadow health secretary Heidi Alexander has today called for the government to "find money urgently to get through the coming winter months". But the bigger question is whether, under Jeremy Corbyn, Labour is prepared to go beyond sticking-plaster solutions. 

George Eaton is political editor of the New Statesman.