Terry Murden: With no magic wand, George Osborne still managed a few new tricks

LET’S face it, George Osborne was on a hiding to nothing. Without a magic wand or miracle cure he had to rely on sleight of hand to give the impression that something was being done to tackle the country’s lacklustre growth.

Arguably the business community got as much out of the autumn statement as it could probably have expected. It had prepared to be disappointed, but the range of measures the Chancellor conjured up yesterday at least presented an impression that he understood the problem and was prepared to shuffle his pack of cards to find a winning hand.

So he’s moved money around to provide a stimulus of sorts, and the short-term effect may be one of making businesses feel a little more hopeful that he’s on their side. But the eurozone problem has not gone away and his borrowing problems continue to restrict his ability to create some momentum in the nascent recovery.

Business groups largely liked what they heard, particularly his attempts to ease the flow of credit to companies, relieve the burden of red tape and open up opportunities for government contracts.

A programme of public works is long overdue. But it has come rather late in the day. New infrastructure projects demand long lead times, and reforms to employment and health and safety rules may also take two to three years when the need for action is now.

Many of yesterday’s measures had been trailed in advance, including one of the headline projects: credit easing, the latest initiative to ensure small firms get access to finance.

It has prompted some excitement as it makes available a cheaper and different form of borrowing to smaller firms. However, it has yet to be proved that the lower rates on offer will make a substantial difference and that those who really need to use credit easing – issued via Treasury bonds – will actually get it.

Its introduction also suggests that other attempts at pumping money into business have failed, notably quantitative easing. That said, the lowered forecasts for growth have made it more certain that there will be more QE in the months ahead, as much as £500 billion if predictions are to be believed.

Whether the Chancellor’s statement was a Plan A+ or, for that matter, Plan B-lite won’t matter much to those who remain at the sharp end and are trying to keep their heads above water.

Osborne appears to be sticking by the old joke that Plan B is to hope that Plan A works. He certainly remains committed to his austerity programme which looks like getting harsher before things get any better.

Murdoch survived but he’s living on borrowed time

James Murdoch survived the BSkyB rebellion as predicted but time is surely not on his side. A near-20 per cent vote against his re-election as chairman is a sizeable objection to his tenure and he’ll be aware that such discontent is not likely to dissipate quickly.

Yesterday’s opposition was led by Standard Life Investments whose head of governance and stewardship, Guy Jubb, told investors at the AGM that a change of chairman would be in the best interests of the company.

More vocal opponents were betting on Murdoch being replaced within a year as the phone hacking scandal continues to plague News Corporation, a 39 per cent holder of BSkyB shares and which was forced in the summer to abort its bid to buy up the rest of the company.

Murdoch’s survival owes much to the good job he did as chief executive when he turned the company into a mainstream player in the television industry. His defence in the chairman’s role has been led by his fellow directors who have approved of his handling of corporate governance issues.

But Murdoch’s continued presence has upset those who feel it will act as a drag on the shares. It was pleasing to see institutional shareholders take their ownership responsibilities into the public arena and making a stand on a point of principle.