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Version 5 Version 6
Civil service reform plans unveiled: Politics live blog Civil service reform plans unveiled: Politics live blog
(about 1 hour later)
1.45pm: Here's a lunchtime summary.
• Inflation has slipped to its lowest level in two and a half years, in a rare piece of good news for Britain's recession-hit households.
• The National Union of Teachers has said that the government review of childcare affordability announced today seems to be about cutting costs. Christine Blower, the NUT general secretary, put out this statement.
The new government childcare commission appears to be more about cutting costs than any real determination to improve childcare. Education in early years, as in the rest of the sector, cannot be achieved on the cheap. This government has already done a great deal of damage to pupils' well being and access to education with cuts to free school meals, the education maintenance allowance, music and school sports as well as local authority support services.
David Cameron needs to be clear what is meant by schools being open from 8am to 8pm. Many schools already operate breakfast and after school clubs which are run by staff from outside of the school. Opening schools during the holidays and at weekends for use by the local community again is not a new idea. However after school activities are only beneficial if they are affordable.
But Elizabeth Truss, a Conservative MP who published a report on this recently, said childcare could be made more affordable by changing adult/child ratios.
• The Work Foundation has accused the government of having a "fragmented" and "piecemeal" approach to tackling youth unemployment.
• Bob Holman, the community activist credited with opening Iain Duncan Smith's eyes to poverty and inspiring him to embrace compassionate conservatism, has said he should resign.
• Conservative MPs are meeting today to discuss how to oppose the government's plans for Lords reform, the BBC has revealed. James Landale also says that Labour have not decided whether to support Tory rebels who try to block the bill's timetable motion.

The opponents will only be able to defeat the government on this procedure motion if Labour backs them. And there are signs Labour is rowing back from its plans to give the bill a rough ride. Party sources had indicated last month that they would oppose the bill's timetable but they now insist that no decision has been made.
A Labour spokesman said: "This is very premature speculation. No decisions have been made, no bill has been published, and it has not yet been discussed at shadow cabinet" ...
Some Labour MPs fear that opposing the timetable would make the party look opportunistic and go against what they say are Ed Miliband's reforming instincts. They also want to avoid an all-out war with Liberal Democrats with whom they might want to form a coalition after the next election.
One senior Labour source said: "Ed's instincts are not to play silly buggers on this. He does support reform. But tactical considerations will grow stronger as the number of Tory rebels increase."


• Danny Alexander, the chief secretary to the Treasury, has said that people who use tax avoidance loopholes are "the moral equivalent of benefit cheats". Speaking about a tax avoidance scheme highlighted in a Times investigation (see 11.39am), he said it was being investigated.
HMRC are looking at the particular scheme that's reported in The Times today with a view to either shutting it down or getting the money back in some other way. Let's be very clear; at a time of real economic difficulty for our country, it is vitally important that everyone pays their fair share of tax. People who dodge the tax system are the moral equivalent of benefit cheats and we are coming to get them.
• David Nutt, the former chairman of the advisory council on the misuse of drugs,, has told MPs that drug use and possession should be decriminalised.
If society decides it allows people to market the drug alcohol, then if people want to make the rational decision to use a drug that is less toxic than alcohol then they should be able to do so.
• Downing Street has refused to confirm that the government's white paper on adult social care will be published before the summer recess. Originally it was meant to be published in the spring. Responding to a BBC report saying that it will delayed until at least July, Downing Street would only say that it would be published "within the coming months". Andy Burnham, the shadow health secretary, has offered to suspend "politics as usual" to help the government achieve cross-party consensus on the issue. (See 9.07am.)
• Jeremy Browne, the Foreign Office minister, has suggested that England is unlikely to win the Euro 2012 championships. Giving evidence to the foreign affairs committee, he said England's poor chances partly explained why the government ministers were not attending the group stages as a protest against Ukraine's human rights record but not ruling out attending if England made it to the final. Browne was replying to a Scottish MP, Frank Roy, who suggested this was inconsistent.
I only observe that the only time that England have ever reached an international tournament final was when it was held in England. So these difficulties did not arise ... I am delighted that you think they may do in two weeks' time. But history suggests that we are dealing in hypotheticals here.
• Sir Roy McNulty, who conducted an inquiry into the rail industry for the government, has told MPs that passengers and taxpayers are not getting a good deal from the railways.
• A poll has been published suggesting that voters think former police officers, not former politicians, will make the best police commissioners. (See 12.39pm.)
• The Scottish government has said that it will hold talks with the Westminster government about providing water to the south east of England. As the Press Association reports, Scottish infrastructure and capital investment secretary Alex Neil wrote to the UK government in March, offering help with water supply in the long-term, if this could be both commercially and practically viable. At a conference in Edinburgh today Neil said talks would go ahead.
Of course, we readily acknowledge there are massive logistical issues and there will need to be major developments to ensure the transfer of water is commercially viable. But this is a government that thinks long-term and our hydro nation agenda is ambitious and offers huge opportunities in this area.
• Eleanor Smith, the Unison president, has accused David Cameron of leading "a government hell-bent on bringing discord, disharmony, doubt and despair to ordinary people, their families and their communities" in her speech to the Unison conference.
12.39pm: Yesterday Labour unveiled the names of its 41 police commissioner candidates for the elections being held in November. Seven former ministers are standing.12.39pm: Yesterday Labour unveiled the names of its 41 police commissioner candidates for the elections being held in November. Seven former ministers are standing.
But, according to a poll commissioned by the Policy Exchange thinktank, voters do not want former politicians in these roles. Here's what the Press Association has filed on the study.But, according to a poll commissioned by the Policy Exchange thinktank, voters do not want former politicians in these roles. Here's what the Press Association has filed on the study.
Politicians would make the worst police commissioners, a new poll suggests.
According to the study, most voters believe ex-police officers would be the best candidates for the controversial roles.
Former MPs and councillors were deemed to be least suitable for taking on one of the Police and Crime Commissioner (PCC) posts.
The poll for the Policy Exchange think-tank showed that fewer than one in 10 people feel these applicants would be the strongest contenders.
Blair Gibbs, head of Policy Exchange's Crime and Justice Unit, said political parties need to give applicants careful consideration.
He said: "Voters will value relevant experience over a political CV and are looking to back candidates who speak to their concerns about local crime and disorder and the need to support visible, neighbourhood policing."
The YouGov poll revealed 59% of voters ranked former police officers as their preferred candidates.
Nearly 30% of those consulted felt ordinary people with an interest in policing issues would make the best PCCs, while 26% of those polled would choose someone from a military background.
Some 13% of people backed candidates from a business background, while only 6% said they would opt for former government ministers, senior politicians and MPs.		Politicians would make the worst police commissioners, a new poll suggests.
According to the study, most voters believe ex-police officers would be the best candidates for the controversial roles.
Former MPs and councillors were deemed to be least suitable for taking on one of the Police and Crime Commissioner (PCC) posts.
The poll for the Policy Exchange think-tank showed that fewer than one in 10 people feel these applicants would be the strongest contenders.
Blair Gibbs, head of Policy Exchange's Crime and Justice Unit, said political parties need to give applicants careful consideration.
He said: "Voters will value relevant experience over a political CV and are looking to back candidates who speak to their concerns about local crime and disorder and the need to support visible, neighbourhood policing."
The YouGov poll revealed 59% of voters ranked former police officers as their preferred candidates.
Nearly 30% of those consulted felt ordinary people with an interest in policing issues would make the best PCCs, while 26% of those polled would choose someone from a military background.
Some 13% of people backed candidates from a business background, while only 6% said they would opt for former government ministers, senior politicians and MPs.
12.21pm: Ahead of this afternoon's announcement on civil service reform, the CBI has sent out a report saying government departments and local councils should share back-office functions. Matthew Fell, the CBI director for competitive markets, says this would save money.12.21pm: Ahead of this afternoon's announcement on civil service reform, the CBI has sent out a report saying government departments and local councils should share back-office functions. Matthew Fell, the CBI director for competitive markets, says this would save money.
At a time when budget savings have to be made, central government must standardise the sharing of back office services, like ICT and HR functions, which can deliver both better value and maintain or improve quality. To achieve this, the Cabinet Office needs to direct all government departments not already doing so to sign up to existing shared services arrangements in the short term and set out detailed plans to establish independent shared service centres to cater for the whole civil service in the future.At a time when budget savings have to be made, central government must standardise the sharing of back office services, like ICT and HR functions, which can deliver both better value and maintain or improve quality. To achieve this, the Cabinet Office needs to direct all government departments not already doing so to sign up to existing shared services arrangements in the short term and set out detailed plans to establish independent shared service centres to cater for the whole civil service in the future.
12.11pm: Len McCluskey (pictured), the Unite general secretary, has urged Boris Johnson, the London mayor, to intervene in the London bus dispute. On Friday drivers in London are due to strike in support of their demand for a £500 bonus for working during the Olympic Games. In a letter to Jonson, McCluskey said the mayor's refusal to intervene was politically motivated.12.11pm: Len McCluskey (pictured), the Unite general secretary, has urged Boris Johnson, the London mayor, to intervene in the London bus dispute. On Friday drivers in London are due to strike in support of their demand for a £500 bonus for working during the Olympic Games. In a letter to Jonson, McCluskey said the mayor's refusal to intervene was politically motivated.
It is inexplicable that the bus operators, acting as one, Transport for London (TfL) and you personally have so far refused to engage in any discussion on this matter with Unite.It is inexplicable that the bus operators, acting as one, Transport for London (TfL) and you personally have so far refused to engage in any discussion on this matter with Unite.
We are now left with no option but to conclude that the stance you are taking is politically motivated and that the success of the London Games is now being put in jeopardy as a consequence of you and your party's desire to 'take on Unite' following your earlier failed attempt to do so involving our tanker drivers. This is a truly reprehensible and irresponsible action.We are now left with no option but to conclude that the stance you are taking is politically motivated and that the success of the London Games is now being put in jeopardy as a consequence of you and your party's desire to 'take on Unite' following your earlier failed attempt to do so involving our tanker drivers. This is a truly reprehensible and irresponsible action.
I make this final call to you to engage personally in assisting TfL and the bus-operating companies in finding a just settlement to this matter, as the mayor of our city, chair of Transport for London and our host for the games.I make this final call to you to engage personally in assisting TfL and the bus-operating companies in finding a just settlement to this matter, as the mayor of our city, chair of Transport for London and our host for the games.
The eyes of the world are upon us and as the Games draw closer, the questions as to why we are in this position and who is responsible will come into sharper focus.The eyes of the world are upon us and as the Games draw closer, the questions as to why we are in this position and who is responsible will come into sharper focus.
12.09pm: David Cameron will not be watching England's Euro 2012 match against Ukraine tonight, according to Downing Street. He will be in a G20 session on development, green growth, infrastructure and food security instead.12.09pm: David Cameron will not be watching England's Euro 2012 match against Ukraine tonight, according to Downing Street. He will be in a G20 session on development, green growth, infrastructure and food security instead.
11.39am: You can read all today's Guardian politics stories here. And all the politics stories filed yesterday, including some in today's paper, are here.11.39am: You can read all today's Guardian politics stories here. And all the politics stories filed yesterday, including some in today's paper, are here.
As for the rest of the papers, here are some stories and articles that are particularly interesting.As for the rest of the papers, here are some stories and articles that are particularly interesting.
• Alexi Mostrous in the Times (paywall) says a Times investigation has established that "thousands of wealthy people in Britain pay as little as 1 per cent income tax using 'below the radar' accounting methods, part of a tax avoidance industry that costs the country billions of pounds".• Alexi Mostrous in the Times (paywall) says a Times investigation has established that "thousands of wealthy people in Britain pay as little as 1 per cent income tax using 'below the radar' accounting methods, part of a tax avoidance industry that costs the country billions of pounds".
In March, the Chancellor George Osborne used the Budget to condemn aggressive tax avoidance as "morally repugnant". Yet on the following day, Roy Lyness, of Peak Performance Accountants, which runs the K2 scheme, assured his clients: "We're delighted to inform you that most of the powerful tax-saving opportunities survived unscathed."In March, the Chancellor George Osborne used the Budget to condemn aggressive tax avoidance as "morally repugnant". Yet on the following day, Roy Lyness, of Peak Performance Accountants, which runs the K2 scheme, assured his clients: "We're delighted to inform you that most of the powerful tax-saving opportunities survived unscathed."
Posing as an IT consultant earning £280,000 a year, a Times reporter contacted a number of avoidance specialists offering schemes to people on salaries above £100,000. Mr Lyness promised that K2 could slash a hypothetical tax bill of £127,000 to just £3,500, equivalent to a personal income tax rate of 1.25 per cent.Posing as an IT consultant earning £280,000 a year, a Times reporter contacted a number of avoidance specialists offering schemes to people on salaries above £100,000. Mr Lyness promised that K2 could slash a hypothetical tax bill of £127,000 to just £3,500, equivalent to a personal income tax rate of 1.25 per cent.
"It's a game of cat and mouse," he said. "The Revenue closes one scheme, we find another way round it."It's a game of cat and mouse," he said. "The Revenue closes one scheme, we find another way round it.
"It's like a sat-nav. I'm driving to Manchester, get a message saying there's a smash at Stoke, press this button to re-route. That's all we do with tax avoidance. The Revenue puts a block in, we just go round the block.""It's like a sat-nav. I'm driving to Manchester, get a message saying there's a smash at Stoke, press this button to re-route. That's all we do with tax avoidance. The Revenue puts a block in, we just go round the block."
• Mary Riddell in the Daily Telegraph says Ed Miliband wants to establish himself as an international political figure.• Mary Riddell in the Daily Telegraph says Ed Miliband wants to establish himself as an international political figure.
Since Mr Miliband must form an alternative to the Coalition, not the Westminster branch of the WI, he has unveiled a plan for an anti-austerity alliance in Europe ...Since Mr Miliband must form an alternative to the Coalition, not the Westminster branch of the WI, he has unveiled a plan for an anti-austerity alliance in Europe ...
Billed as "a small gathering, not a bunfest", the inaugural meeting is likely to take place in Paris after the party conference season, and the invitees will probably include Helle Thorning-Schmidt, the Danish PM, Fredrik Reinfeldt of Sweden, Angela Merkel's social democrat challenger, Sigmar Gabriel, and southern European players. Mr Miliband's advisers are also watching to see whether the G20 opens a chasm between Merkel and Cameron on one side and Hollande on the other, backed by an Obama who is exasperated by European dithering and keen to engineer a sharper divide with his Republican challenger, Mitt Romney.Billed as "a small gathering, not a bunfest", the inaugural meeting is likely to take place in Paris after the party conference season, and the invitees will probably include Helle Thorning-Schmidt, the Danish PM, Fredrik Reinfeldt of Sweden, Angela Merkel's social democrat challenger, Sigmar Gabriel, and southern European players. Mr Miliband's advisers are also watching to see whether the G20 opens a chasm between Merkel and Cameron on one side and Hollande on the other, backed by an Obama who is exasperated by European dithering and keen to engineer a sharper divide with his Republican challenger, Mitt Romney.
Having made some headway (though not yet enough) in outlining the society he envisages for straitened times, Mr Miliband now hopes to establish himself as an international actor and an unashamed European. "Ed has got to be totally clear that we believe that the future of Britain is best in Europe," says one senior Labour figure.Having made some headway (though not yet enough) in outlining the society he envisages for straitened times, Mr Miliband now hopes to establish himself as an international actor and an unashamed European. "Ed has got to be totally clear that we believe that the future of Britain is best in Europe," says one senior Labour figure.


• James Kirkup and Thomas Harding in the Daily Telegraph say the government is delaying the age at which members of the armed forces can qualify for a pension.

• James Kirkup and Thomas Harding in the Daily Telegraph say the government is delaying the age at which members of the armed forces can qualify for a pension.
Armed Forces personnel face having to serve for another five years before qualifying for their pensions, The Daily Telegraph has learnt.Armed Forces personnel face having to serve for another five years before qualifying for their pensions, The Daily Telegraph has learnt.
Soldiers, sailors and airmen may have to give as much as 23 years' service before being able to leave with their pensions, up from as little as 18 years at present.Soldiers, sailors and airmen may have to give as much as 23 years' service before being able to leave with their pensions, up from as little as 18 years at present.
The result would be that the effective minimum age for leaving the Services with an immediate pension would increase from 40 to 45.The result would be that the effective minimum age for leaving the Services with an immediate pension would increase from 40 to 45.
The plan, disclosed in a Ministry of Defence document, has emerged amid complaints from soldiers that they have been targets for redundancy days before qualifying for their pension. Many soldiers claimed they were sacked and denied an immediate pension, in some cases after the MoD miscalculated the length of their service.The plan, disclosed in a Ministry of Defence document, has emerged amid complaints from soldiers that they have been targets for redundancy days before qualifying for their pension. Many soldiers claimed they were sacked and denied an immediate pension, in some cases after the MoD miscalculated the length of their service.
• Sophie Borland in the Daily Mail says doctors who go "on strike" on Thursday will still be paid.• Sophie Borland in the Daily Mail says doctors who go "on strike" on Thursday will still be paid.
Health trusts have decided not to dock salaries even though the GPs will refuse to treat almost all their patients.Health trusts have decided not to dock salaries even though the GPs will refuse to treat almost all their patients.
They claim that a day's pay – £430 to a typical GP on £110,000 a year – is merited because urgent cases will still be dealt with.They claim that a day's pay – £430 to a typical GP on £110,000 a year – is merited because urgent cases will still be dealt with.
• Melanie Newman and Oliver Wright in the Independent say Lord Fink, the Conservative treasurer, has been criticised for agreeing to host a dinner in the Lords that would have broken anti-sleaze rules. Fink cancelled the booking before it went ahead.• Melanie Newman and Oliver Wright in the Independent say Lord Fink, the Conservative treasurer, has been criticised for agreeing to host a dinner in the Lords that would have broken anti-sleaze rules. Fink cancelled the booking before it went ahead.
• James Lyons in the Daily Mirror says Tory MP Nadine Dorries is using parliamentary allowances to pay her daughter more than £35,000 to work as her office manager.• James Lyons in the Daily Mirror says Tory MP Nadine Dorries is using parliamentary allowances to pay her daughter more than £35,000 to work as her office manager.
• Gordon Rayner in the Daily Telegraph says journalists at the News of the World allegedly hacked the emails of a witness in the Tommy Sheridan trial.• Gordon Rayner in the Daily Telegraph says journalists at the News of the World allegedly hacked the emails of a witness in the Tommy Sheridan trial.
11.12am: Professor Cathy Nutbrown has now published the final report from the review of early education and childcare that she has been carrying out for the government. The full 82-page report is here (pdf).11.12am: Professor Cathy Nutbrown has now published the final report from the review of early education and childcare that she has been carrying out for the government. The full 82-page report is here (pdf).
In a speech at an early years conference this morning, Nutbrown summarised her recommendations. Here's an extract.In a speech at an early years conference this morning, Nutbrown summarised her recommendations. Here's an extract.

We need a clear, rigorous system of qualifications in place to ensure a competent and confident workforce. As I have said there are far too many qualifications, they don't equip students with the necessary skills and the system is confusing. In response I recommend the content of qualifications be changed to strengthen and include more on child development and play, special educational needs and disability, and inclusivity and diversity. More importantly the qualifications must focus on the birth to 7 age range. Level 3 must become the minimum standard for the workforce. This means all staff, who work to the EYFS framework, including childminders should be qualified at a minimum level 3 by September 2022, with some staging of posts in the interim.
We need a clear, rigorous system of qualifications in place to ensure a competent and confident workforce. As I have said there are far too many qualifications, they don't equip students with the necessary skills and the system is confusing. In response I recommend the content of qualifications be changed to strengthen and include more on child development and play, special educational needs and disability, and inclusivity and diversity. More importantly the qualifications must focus on the birth to 7 age range. Level 3 must become the minimum standard for the workforce. This means all staff, who work to the EYFS framework, including childminders should be qualified at a minimum level 3 by September 2022, with some staging of posts in the interim.
It is crucial that we raise expectations of the workforce so that we attract the best people – quality staff make a difference. When I published my interim the press heavily focused on my view of literacy and numeracy skills amongst staff caring and educating our babies and young children. These skills are essential: to develop professional knowledge; to communicate effectively with parents; to carry out observations or assessments, to read stories to children and to support children's early language development. This reinforces my argument for the importance of quality and why I am recommending students must have a level 2 in English and mathematics upon entry to a level 3 early education or childcare course.It is crucial that we raise expectations of the workforce so that we attract the best people – quality staff make a difference. When I published my interim the press heavily focused on my view of literacy and numeracy skills amongst staff caring and educating our babies and young children. These skills are essential: to develop professional knowledge; to communicate effectively with parents; to carry out observations or assessments, to read stories to children and to support children's early language development. This reinforces my argument for the importance of quality and why I am recommending students must have a level 2 in English and mathematics upon entry to a level 3 early education or childcare course.

Sarah Teather, the children's minister, said she welcomed the "thoughtful and thorough" report.
Sarah Teather, the children's minister, said she welcomed the "thoughtful and thorough" report.
It takes a careful and measured look at the sector, and will be very useful in helping us to shape the future of the early years workforce. We need to attract bright people to the sector so that our young children get the best possible start in life - after all, they only get one chance.It takes a careful and measured look at the sector, and will be very useful in helping us to shape the future of the early years workforce. We need to attract bright people to the sector so that our young children get the best possible start in life - after all, they only get one chance.
11.06am: Last night the Labour MP for Liverpool Walton, Steve Rotheram, won MP speech of the year in the PoliticsHome awards for the speech he gave on the Hillsborough tragedy. You can read the full text of the speech here.11.06am: Last night the Labour MP for Liverpool Walton, Steve Rotheram, won MP speech of the year in the PoliticsHome awards for the speech he gave on the Hillsborough tragedy. You can read the full text of the speech here.
10.39am: Do you know what Serbia's new president looks like?10.39am: Do you know what Serbia's new president looks like?
No, nor did I, so I have some sympathy for Lady Ashton, the EU's foreign policy chief, who has been caught on camera asking aides to help her identify Tomislav Nikolic.No, nor did I, so I have some sympathy for Lady Ashton, the EU's foreign policy chief, who has been caught on camera asking aides to help her identify Tomislav Nikolic.
10.26am: If you read the Guardian's exclusive story today about almost seven million people living in extreme financial stress, do check out Patrick Butler's Breadline Britain live blog. He's hosting a live Q&A about the report later and he's inviting readers to post comments about their own experience of living on the breadline.10.26am: If you read the Guardian's exclusive story today about almost seven million people living in extreme financial stress, do check out Patrick Butler's Breadline Britain live blog. He's hosting a live Q&A about the report later and he's inviting readers to post comments about their own experience of living on the breadline.
9.58am: And while we're on the subject of polls, Ipsos MORI have got an interesting one from Scotland. Here's an extract from their news release.9.58am: And while we're on the subject of polls, Ipsos MORI have got an interesting one from Scotland. Here's an extract from their news release.
Three weeks after the 'Yes' campaign was launched, support for Scottish independence has fallen in our latest poll for The Times and The Sun.Three weeks after the 'Yes' campaign was launched, support for Scottish independence has fallen in our latest poll for The Times and The Sun.
Among those certain to vote in the referendum, 35% agree that 'Scotland should be an independent country' while 55% disagree and 11% are undecided. This represents a fall of 4 points in support for independence compared to our previous poll in January 2012, while support for staying in the union has risen by 5 points over the same period.Among those certain to vote in the referendum, 35% agree that 'Scotland should be an independent country' while 55% disagree and 11% are undecided. This represents a fall of 4 points in support for independence compared to our previous poll in January 2012, while support for staying in the union has risen by 5 points over the same period.
This means the anti-independence lobby is now 20 points ahead - up from an 11 point lead in January.This means the anti-independence lobby is now 20 points ahead - up from an 11 point lead in January.
9.46am: Here's the top of the Press Association story about the inflation figures.9.46am: Here's the top of the Press Association story about the inflation figures.
The rate of inflation unexpectedly fell to a two-and-a-half-year low last month as declining oil prices started to filter through to the petrol pumps.
The Consumer Price Index (CPI) rate of inflation dropped to 2.8% in May, from 3% in April, the Office for National Statistics (ONS) said, the lowest level since November 2009. City analysts expected the rate to remain unchanged.
The decline was driven by a sharp drop in petrol pump prices, as the average petrol price fell by 4.5p per litre between April and May to stand at 137.1p. Last year, the average petrol price rose 2p to 136.3p.
Inflation has fallen from 5.2% last September due to the waning impact of the VAT hike at the start of 2011 and falling energy, food and commodity prices, easing pressure on squeezed household incomes.
Despite today's fall, inflation has still not pulled back as quickly as the Bank of England initially expected, after fears over increasing tensions between the West and Iran pushed oil prices higher in March.
But the cost of crude oil has fallen since then and May's inflation figures show that this is starting to benefit consumers.
Average diesel prices also decreased, dropping 4.4p to 143.3p between April and May, compared with a 0.7p rise last year to 141.5p.
The fall in inflation in May is likely to bolster the case for the Bank to pump more emergency cash into the economy through its quantitative easing programme, as the eurozone crisis escalates and threatens to destabilise the UK economy.
Britain's economy entered a technical recession in the first quarter of the year as gross domestic product declined 0.2%, following a 0.3% drop in the final quarter of 2011.
Last month, inflation moved to within 1% of the Government's 2% target, meaning Bank Governor Sir Mervyn King did not have to send a letter of explanation to the Chancellor.
A Treasury spokesman said: "Inflation is out of Open Letter territory for the second month in a row, which is good news and is providing some welcome relief for family budgets."		The rate of inflation unexpectedly fell to a two-and-a-half-year low last month as declining oil prices started to filter through to the petrol pumps.
The Consumer Price Index (CPI) rate of inflation dropped to 2.8% in May, from 3% in April, the Office for National Statistics (ONS) said, the lowest level since November 2009. City analysts expected the rate to remain unchanged.
The decline was driven by a sharp drop in petrol pump prices, as the average petrol price fell by 4.5p per litre between April and May to stand at 137.1p. Last year, the average petrol price rose 2p to 136.3p.
Inflation has fallen from 5.2% last September due to the waning impact of the VAT hike at the start of 2011 and falling energy, food and commodity prices, easing pressure on squeezed household incomes.
Despite today's fall, inflation has still not pulled back as quickly as the Bank of England initially expected, after fears over increasing tensions between the West and Iran pushed oil prices higher in March.
But the cost of crude oil has fallen since then and May's inflation figures show that this is starting to benefit consumers.
Average diesel prices also decreased, dropping 4.4p to 143.3p between April and May, compared with a 0.7p rise last year to 141.5p.
The fall in inflation in May is likely to bolster the case for the Bank to pump more emergency cash into the economy through its quantitative easing programme, as the eurozone crisis escalates and threatens to destabilise the UK economy.
Britain's economy entered a technical recession in the first quarter of the year as gross domestic product declined 0.2%, following a 0.3% drop in the final quarter of 2011.
Last month, inflation moved to within 1% of the Government's 2% target, meaning Bank Governor Sir Mervyn King did not have to send a letter of explanation to the Chancellor.
A Treasury spokesman said: "Inflation is out of Open Letter territory for the second month in a row, which is good news and is providing some welcome relief for family budgets."


Here's the Office for National Statistics release with the headline figures. And here's the ONS statistical bulletin, with the full details (pdf).

Here's the Office for National Statistics release with the headline figures. And here's the ONS statistical bulletin, with the full details (pdf).
9.29am: There are two polls around this morning. Here are the figures.9.29am: There are two polls around this morning. Here are the figures.
YouGov for the Sun

Labour: 44% (no change from YouGov in the Sunday Times)
Conservatives: 33% (up 1)
Ukip: 8% (no change)
Lib Dems: 7% (down 2)		YouGov for the Sun

Labour: 44% (no change from YouGov in the Sunday Times)
Conservatives: 33% (up 1)
Ukip: 8% (no change)
Lib Dems: 7% (down 2)
Labour lead: 11 pointsLabour lead: 11 points
Government approval: -39 (no change)Government approval: -39 (no change)
Populus in the Times (paywall)Populus in the Times (paywall)
Labour: 41% (no change since Populus for the Times in May)
Conservatives: 33% (no change)
Lib Dems: 9% (down 1)		Labour: 41% (no change since Populus for the Times in May)
Conservatives: 33% (no change)
Lib Dems: 9% (down 1)
Labour lead: 8 pointsLabour lead: 8 points
9.07am: The BBC's Mark Easton says the governnment's response to the Dilnot report on social care has now been delayed until at least July. On his blog, he explains why the Treasury is so reluctant to accept the Dilnot plan.9.07am: The BBC's Mark Easton says the governnment's response to the Dilnot report on social care has now been delayed until at least July. On his blog, he explains why the Treasury is so reluctant to accept the Dilnot plan.
Whispers from Whitehall tell a story of agonising inside the Treasury - not only the question "Can we afford it?", but also asking "Is Dilnot's solution the right one?"Whispers from Whitehall tell a story of agonising inside the Treasury - not only the question "Can we afford it?", but also asking "Is Dilnot's solution the right one?"
The commission's plan is for a cap on how much individuals must fork out before the state starts paying the bills. Recommending it be set at £35,000, the cost to the Treasury is put at around £1.7bn a year.The commission's plan is for a cap on how much individuals must fork out before the state starts paying the bills. Recommending it be set at £35,000, the cost to the Treasury is put at around £1.7bn a year.
But with a second round of deep public sector cuts in the offing, the question being asked is whether the government can really agree to spend close to another couple of billion on subsidising residential care costs for people who may be relatively affluent in terms of property ...But with a second round of deep public sector cuts in the offing, the question being asked is whether the government can really agree to spend close to another couple of billion on subsidising residential care costs for people who may be relatively affluent in terms of property ...
Treasury officials have been looking at whether the money could be found from cuts to other services currently provided to the same group. Should winter fuel allowance and free TV licences be means tested? What about the state pension? For the moment, it seems the politics and economics of such moves cannot be made to add up.Treasury officials have been looking at whether the money could be found from cuts to other services currently provided to the same group. Should winter fuel allowance and free TV licences be means tested? What about the state pension? For the moment, it seems the politics and economics of such moves cannot be made to add up.
Easton's blog also includes the "Barnet graph of doom" - a graph doing the rounds in Whitehall, apparently, showing that "unless things change dramatically, within 20 years Barnet Council will be 'unable to provide any services except adult social care and children's services: no libraries, no parks, no leisure centres - not even bin collections'."

Andy Burnham (pictured), the shadow health secretary, was talking about this on the Today programme this morning. There are cross-party talks on social care underway and Burnham offered to suspend "politics as usual" to enable these talks to succeed.		Easton's blog also includes the "Barnet graph of doom" - a graph doing the rounds in Whitehall, apparently, showing that "unless things change dramatically, within 20 years Barnet Council will be 'unable to provide any services except adult social care and children's services: no libraries, no parks, no leisure centres - not even bin collections'."

Andy Burnham (pictured), the shadow health secretary, was talking about this on the Today programme this morning. There are cross-party talks on social care underway and Burnham offered to suspend "politics as usual" to enable these talks to succeed.
It's for the government to set forward the options as they see it, but without political courage there is no progress, and the offer I would make today to the Government is almost to suspend politics as usual – to give them the space to bring forward some difficult options without the usual point scoring.It's for the government to set forward the options as they see it, but without political courage there is no progress, and the offer I would make today to the Government is almost to suspend politics as usual – to give them the space to bring forward some difficult options without the usual point scoring.
But Burnham could not resist a tiny bit of point scoring himself. He said he would not comment in detail on how the cross-party talks were going. However, he also made it quite clear that he thought Andrew Lansley, the health secretary, was not handling them very well.But Burnham could not resist a tiny bit of point scoring himself. He said he would not comment in detail on how the cross-party talks were going. However, he also made it quite clear that he thought Andrew Lansley, the health secretary, was not handling them very well.
I have some concerns about the way the government has approached the talks, but I don't want to go into those details today, because I want those talks to succeed. We have met, and there's been exchange of information between the parties. It is going on – it's not happening anything like as urgently or as quickly as I would like to see.I have some concerns about the way the government has approached the talks, but I don't want to go into those details today, because I want those talks to succeed. We have met, and there's been exchange of information between the parties. It is going on – it's not happening anything like as urgently or as quickly as I would like to see.
I've taken the quotes from PoliticsHome.I've taken the quotes from PoliticsHome.
9.00am: David Cameron is still at the G20 summit in Mexico and it sounds as if he's in a gloomy mood. As Patrick Wintour reports, yesterday Cameron was floating the idea of Britain having to seek fresh export markets outside the EU because he thinks the eurozone crisis is so intractable.9.00am: David Cameron is still at the G20 summit in Mexico and it sounds as if he's in a gloomy mood. As Patrick Wintour reports, yesterday Cameron was floating the idea of Britain having to seek fresh export markets outside the EU because he thinks the eurozone crisis is so intractable.

It may be that the eurozone crisis is going to continue for some time, in which case the UK must do all it can to put its own house in order and link up with the fastest growing parts of the world.
It may be that the eurozone crisis is going to continue for some time, in which case the UK must do all it can to put its own house in order and link up with the fastest growing parts of the world.
What does that mean? The UK joining Asean? Nice idea, but I doubt they'll have us.What does that mean? The UK joining Asean? Nice idea, but I doubt they'll have us.
Back in the UK, it's fairly quiet. The main event seems to be Francis Maude's civil service reform announcement. As Juliette Jowit and Nicholas Watt report, it will feature two key proposals.Back in the UK, it's fairly quiet. The main event seems to be Francis Maude's civil service reform announcement. As Juliette Jowit and Nicholas Watt report, it will feature two key proposals.
• All permanent secretaries in what are known as the main delivery departments, such as health and education, will be required to have had more than two years in a commercial or operational role. Maude, whose plans are based on a consultation process with staff across the country, is keen to provide opportunities to the 70% of civil servants outside Whitehall who do not fit into the Yes Minister policymaking mould.• All permanent secretaries in what are known as the main delivery departments, such as health and education, will be required to have had more than two years in a commercial or operational role. Maude, whose plans are based on a consultation process with staff across the country, is keen to provide opportunities to the 70% of civil servants outside Whitehall who do not fit into the Yes Minister policymaking mould.
• A more rigorous appraisal system, which will identify the top 25% and the bottom 10%. The high performers will be recognised while the poor performers will be "tackled".• A more rigorous appraisal system, which will identify the top 25% and the bottom 10%. The high performers will be recognised while the poor performers will be "tackled".
I'll be covering the announcement when we get it at 3.30pm.I'll be covering the announcement when we get it at 3.30pm.
Here's the full agenda for the day.Here's the full agenda for the day.
9am: Jeremy Hunt, the culture secretary, attends the launch of the London 2012 Festival.9am: Jeremy Hunt, the culture secretary, attends the launch of the London 2012 Festival.
9.25am: Sarah Teather, the children's minister, speaks at the Early Years 2012 conference. As Patrick Wintour reports, the government is launching a government childcare commission that will look at lengthening the school day and allowing childcare workers to look after more children at any one time, in an attempt to cut costs for parents.9.25am: Sarah Teather, the children's minister, speaks at the Early Years 2012 conference. As Patrick Wintour reports, the government is launching a government childcare commission that will look at lengthening the school day and allowing childcare workers to look after more children at any one time, in an attempt to cut costs for parents.
9.30am: Inflation figures for May are published.9.30am: Inflation figures for May are published.
10am: Rail experts give evidence to the Commons transport committee10am: Rail experts give evidence to the Commons transport committee
10am: Pension funds and investment managers give evidence to the Commons Treasury committee about City pay.10am: Pension funds and investment managers give evidence to the Commons Treasury committee about City pay.
10.15am: Jeremy Browne, the Foreign Office minister, gives evidence to the foreign affairs committee on human rights.10.15am: Jeremy Browne, the Foreign Office minister, gives evidence to the foreign affairs committee on human rights.
11am: David Nutt, the former chairman of the advisory council on the misuse of drugs, and other drugs experts give evidence to the Commons home affairs committee.11am: David Nutt, the former chairman of the advisory council on the misuse of drugs, and other drugs experts give evidence to the Commons home affairs committee.
11am: Nick Herbert, the policing minister, gives a speech on elected police commissioners.11am: Nick Herbert, the policing minister, gives a speech on elected police commissioners.
1.50pm: David Anderson, the government's independent reviewer of terrorism legislation, gives evidence to the joint human rights committee on the justice and security bill.1.50pm: David Anderson, the government's independent reviewer of terrorism legislation, gives evidence to the joint human rights committee on the justice and security bill.
3.30pm: Francis Maude, the Cabinet Office minister, is expected to make a statement in the Commons about plans to reform the civil service.3.30pm: Francis Maude, the Cabinet Office minister, is expected to make a statement in the Commons about plans to reform the civil service.
At some point today Dave Prentis, the Unison general secretary, is speaking at his union's annual conference.At some point today Dave Prentis, the Unison general secretary, is speaking at his union's annual conference.
As usual, I'll be covering all the breaking political news, as well as looking at the papers and bringing you the best politics from the web. I'll post a lunchtime summary at around 1pm and another at about 4pm.As usual, I'll be covering all the breaking political news, as well as looking at the papers and bringing you the best politics from the web. I'll post a lunchtime summary at around 1pm and another at about 4pm.
If you want to follow me on Twitter, I'm on @AndrewSparrow.If you want to follow me on Twitter, I'm on @AndrewSparrow.
And if you're a hardcore fan, you can follow @gdnpoliticslive. It's an automated feed that tweets the start of every new post that I put on the blog.And if you're a hardcore fan, you can follow @gdnpoliticslive. It's an automated feed that tweets the start of every new post that I put on the blog.