'Black Friday' Discount Day Reaches UK

Some of the UK's biggest retailers are cashing in on a US tradition which sees millions of frenzied shoppers make the most of discounted prices.

Amazon, Asda and Apple are among the companies that have launched so-called Black Friday sales in Britain - despite many consumers being unaware of the custom.

In the US, thousands of stores discount their prices the day after Thanksgiving, and many open for longer hours.

Last year a record number of people visited stores over the Black Friday weekend, spending a total of $52bn (£32.6bn) - an average of around $400 (£250) each, according to the National Retail Federation.

And this year, some eager shoppers have been caught on camera phones battling to get to the best bargains first, after queuing for hours. 

Many retailers opened their stores at midnight, and this year the trend to open at 8pm on Thursday started to spread.

Some US stores were frantic

While the shift was denounced by some store employees and traditionalists as pulling people away from families on Thanksgiving, many shoppers welcomed the chance to shop before midnight.

"I think it's better earlier. People are crazier later at midnight," hotel worker Renee Ruhl, 52, said as she shopped at a Target store in Orlando, Florida.

Online retailer Amazon was one of the first companies to bring the trend to the UK.

It launched a week-long Black Friday sale on Monday, which it claims "offers millions of pounds of savings on hundreds of Christmas gifts".

Tech giant Apple and Asda, owned by Walmart, are also hoping to make the most of the Christmas shopping rush by offering one-day discounts of their own.

Hotel Chocolat emailed customers to say that as it offered US customers 20% off it would do the same for UK buyers.

"There are more retailers launching sales this year than ever before - and many British consumers are becoming aware of the tradition for the first time," Retail Week's Gemma Goldfingle told Sky News.

"In the US it is an absolute phenomenon, with people queuing up all night to snap up the best deals."

Amazon launched its sale on Monday

In Orlando at least one family camped outside a Best Buy shop for a full week, sleeping in two tents.

"It has not reached that level here and whether it ever will is another matter," Ms Goldfingle said.

She said that Americans have Thanksgiving to kick-start the event – whereas in the UK it is just a normal day. Boxing Day, when UK sales traditionally begin, is a normal work day for Americans.

"A lot of British retailers would prefer not to have it," Ms Goldfingle said.

"They want to be selling items at full price ahead of Christmas, especially given the tough economic conditions."

While a limited number of UK chains have labelled their sales as Black Friday, many others have needed to show weekend price drops to lure customers.

Furniture chain dfs has taken to advertising in newspapers about its discounts while Topshop offered online weekend deals.

Black Friday, which is thought to refer to the first day of the year that retailers go "into the black", comes just ahead of Cyber Monday - which the marketing industry claims is the busiest day in the online shopping calendar.

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Cameron: EU Deal 'Just Not Good Enough'

What Now For EU Budget?

Updated: 10:16pm UK, Friday 23 November 2012

By Adam Boulton, Political Editor

The 27 EU member states did not agree a budget for the next seven years at the summit in Brussels. But David Cameron will be able to go home and tell Eurosceptic conservative backbenchers "so far, so good".

In his own words the Prime Minister "successfully defended" Britain's contributions rebate and rejected a deal which "was just not good enough".

Mr Cameron also insisted that Britain had not been isolated but was joined in its demands for lower spending by other big net contributors including Denmark, Sweden, Finland, Norway and Holland.

This Nordic European grouping also claims the support of the key deal-maker and biggest funder, Germany. But in her public comments Chancellor Angela Merkel was more circumspect, merely noting, as she had since arriving in Belgium, that the gap between the want-mores and the want-lesses was too big to bridge at this meeting.

She and the hapless Herman Van Rompuy, who has the thankless task of chairing these negotiations, have the same message - it is more important to get it right than to rush for a deal.

Mr Van Rompuy now has "weeks" to try to find an agreement. When EU leaders come back to the budget early next year (having put the matter to one side at the next summit in December) they will be on deadline.

If an agreement is not reached then, funding will be rolled over on an annualised basis - bad news for Britain because budgets will automatically increase, and worse news for countries such as Denmark and Holland who have not yet secured their rebates.

So doesn't that mean that all the countries who want more have to do is sit it out? Not quite. Of the 27 member states nine countries are net contributors, including all the Nordic holdouts, and around 15 are significant recipients. Ultimately all the winners are vulnerable, especially if Germany joins in so much as threatening to turn off the tap.

The leaders calling for further cuts all make the same argument - they are imposing austerity at home and it is not acceptable to their voters that the European slice of their budgets simply should be exempted from a squeeze.

The Council President, Mr Van Rompuy, and Jose Barosso his counterpart at the EU Commission probably made a mistake in refusing to table any cuts in the administration budget - pay and perks for bureaucrats. Mr Cameron contrasted this with the "difficult decisions" being imposed on the UK civil service and insisted that the EU could not live "in a parallel world".

But ultimately these are points of principle rather than matters of real significance to national budgets. The UK's government spending now runs to about one trillion euros a year - the EU is arguing about one trillion euros over seven years divided between 27 nations. Of that the "administration" budget is just 6%. Which means that when Mr Cameron talks about saving a billion euros by, for example, stopping automatic promotion of civil servants, he really is talking about a drop in a bucket.

This is perhaps why the economics professor who now is Prime Minister of Italy, Mario Monti, accused Mr Cameron of being an irrational "demagogue". Italy is now in an alliance with France supporting the claims of those who want a bigger budget in the interests of "solidarity". Both Italy and France are net contributors to the EU overall but they are also big recipients of the Common Agricultural Policy, which accounts for some 40% of EU spending.

Perhaps the most significant thing that happened at this summit was that there was no Franco-German axis. Chancellor Merkel and President Francois Hollande took opposing positions.

What's more Germany now seems concerned not to isolate the UK, because of fears that another confrontation could move Britain out of the Union altogether - ceding much greater influence inside to socialist-led France and its Mediterranean allies.

As the European Union scrambles to find a deal Germany, Britain and their North European allies would seem to have the stronger hand - following the time-honoured principle of who pays, plays - provided that their alliance holds together.

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Tax Backlash Prospect For Independent Shops

By Poppy Trowbridge, Business & Economics correspondent

Independent businesses could benefit from public uproar over low rates of corporation tax paid by global giants Starbucks, Amazon and Google, according to retail experts.

The backlash has been prompted by the revelation that Starbucks has paid just £8.6m UK corporation tax in the past 13 years, on sales of £3.1bn, when most businesses will pay a corporation tax rate of 24% this year.

In 2011, Google paid £6m tax against sales of £395m, while Amazon paid no tax at all in the UK - despite sales here reaching £3.3bn.

Matthew Stych, research director at analysts Planet Retail, believes British retailers can make the most of the furore by highlighting their own contributions and good practices.

"It's a golden opportunity that comes along once in a decade or so, to really capitalise on the negative publicity that some global retailers are receiving at the moment," he says.

"I think it's a huge opportunity that independent retailers in the community must seize now".

Google and Amazon are also accused of paying low taxes on big profits

Independent booksellers in Hertfordshire are doing just that. With support from the Booksellers Association they have launched an advertisement campaign to publicise the fact they pay their taxes.

"People need to think about where they are spending their money and we are hoping that this campaign will bring that to their attention," said Sheryl Shurville, co-owner of Chorleywood Bookshop.

But other analysts are not convinced such consumer campaigns will have any long-term benefit.

"We're unlikely to see any massive dip in the sales of these companies under scrutiny," says Douglas McNeill, chief analyst at Charles Stanley.

"Whilst ethical issues can temporarily make people pause for thought, consumers make their choices on the basis of eternal basics of price, quality and convenience."

Mr Stych says large brands may yet find a way to turn around the negative publicity.

"As far as Amazon and Starbucks are concerned, I think there's an opportunity to strike a more conciliatory note," according to Mr Stych. 

"This is for them also an ideal opportunity to regain or re-forge that bond with local consumers".

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EU Budget: 'Long Way To Go' Before Deal

David Cameron has demanded billions in pay and pension cuts from the EU's civil service in support of austerity-hit workers across Europe.

Ahead of a crucial budget summit last night, he presented EU heads with a paper setting out how Brussels could slash at least six billion euro (£4.8bn) off its staff costs at a stroke by upping retirement ages, lowering pensions and trimming lavish salaries.

President of the European Council Herman Van Rompuy and President of the European Commission Jose Manuel Barroso were caught by surprise during the private talks with the Prime Minister.

Mr Cameron's position was to impose a real-terms freeze in spending in common with national public sector cuts, including a solidarity gesture by targeting the 60bn euro-a-year (£48bn) administrative budget which pays the 40,000-plus civil service behind the Commission, Council and European Parliament.

Following the meeting Downing Street said there was "a long way to go" before EU leaders could agree a long-term budget.

A Downing Street spokesman said: "The Prime Minister set out our position that while the latest proposals were a step in the right direction, they did not go far enough and that we think more can be done to rein in spending."

Mr Cameron said he would be fighting "very hard" to secure a good deal for British taxpayers and to keep the rebate negotiated by Margaret Thatcher in the 1980s.

Cameron meets Barroso and van Rompuy prior to the summit

"These are very important negotiations. Clearly at a time when we are making difficult decisions at home over public spending it would be quite wrong - it is quite wrong - for there to be proposals for this increased extra spending in the EU," he said.

He has welcomed proposals from Mr Van Rompuy which would deliver a small real-terms cut in EU spending commitments, but has made clear he is unhappy with other details of the package, which demands a reduction in the £2.9bn UK rebate.

The start of the meeting was delayed until mid-evening as the rest of the EU's leaders held their own "confessionals" throughout the day, setting out their positions on how much cash the EU should be given to pay for policies between 2014 and 2020.

A pre-summit compromise is already on offer - a seven-year budget "envelope" of 973bn euro (£785bn) for 2014/2020, a cut of nearly 5bn euro (£3.8bn) compared with the 2007/2013 ceiling.

The move was seen in Downing Street as being in the right direction - although the "cut" is in a spending ceiling which officials say has not been reached.

It is also above the 886bn euro (£712bn) originally pitched by the Treasury as in line with the real-terms freeze Mr Cameron wants.

The EU headquarters in Belgium

But in the complex world of EU budget economics, with financial "commitments" different from "payments", a range of calculation options, rebates for some countries, and contributor and beneficiary member states, Mr Cameron and his colleagues have plenty of scope for claiming summit success.

The Prime Minister's allies for budget belt-tightening, including Sweden and the Netherlands, have demanded hefty financial cuts.

Germany, France, Finland and Austria want to freeze the maximum Brussels can draw from member states every year - leaving plenty of scope to argue over the actual spending figures within the ceiling.

And 15 countries, led by Poland, are backing budget increases, not least to preserve the scale of cash aid they receive as "net beneficiaries" from the EU kitty.

Britain is arguing for a shake-up in EU spending priorities, cuts in agriculture spending and subsidies - fiercely defended by France - and cuts in EU staff levels and pay and perks, in line with national civil servants.

But the European Commission still insists that a spending increase is necessary, not least to pay for policies already agreed by member states.

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'Black Friday' Discount Day Reaches UK

Some of the UK's biggest retailers are cashing in on a US tradition, slashing their prices ahead of Christmas.

Amazon, Asda and Apple are among the companies that have launched so-called Black Friday sales in Britain - despite many consumers being unaware of the custom.

In the US, thousands of stores discount their prices the day after Thanksgiving, and many open for longer hours.

Last year a record number of shoppers visited stores over the Black Friday weekend, spending a total of $52bn (£32.6bn) - an average of around $400 (£250) each, according to the National Retail Federation.

Whereas many retailers open stores at midnight, this year the trend to open at 8pm on Thursday has started to spread.

While the shift was denounced by some store employees and traditionalists as pulling people away from families on Thanksgiving, many shoppers welcomed the chance to shop before midnight.

"I think it's better earlier. People are crazier later at midnight," hotel worker Renee Ruhl, 52, said as she shopped at a Target store in Orlando, Florida.

Amazon launched its sale on Monday

Online retailer Amazon was one of the first companies to bring the trend to the UK.

It launched a week-long Black Friday sale on Monday, which it claims "offers millions of pounds of savings on hundreds of Christmas gifts".

Tech giant Apple and Asda, owned by Walmart, are also hoping to make the most of the Christmas shopping rush by offering one-day discounts of their own. 

"There are more retailers launching sales this year than ever before - and many British consumers are becoming aware of the tradition for the first time," Retail Week's Gemma Goldfingle told Sky News.

"In the US it an absolute phenomenon, with people queuing up all night to snap up the best deals.

"In Orlando at least one family camped outside a Best Buy shop for a full week, sleeping in two tents.

"It has not reached that level here and whether it ever will is another matter."

She said that Americans have Thanksgiving to kick-start the event – whereas in the UK it is just a normal day. Boxing Day, when UK sales traditionally begin, is a normal work day for Americans.

"A lot of British retailers would prefer not to have it," Ms Goldfingle said.

"They want to be selling items at full price ahead of Christmas, especially given the tough economic conditions."

Black Friday, which is thought to refer to the first day of the year that retailers go "into the black", comes just ahead of Cyber Monday - which the marketing industry claims is the busiest day in the online shopping calendar.

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Online Retailer Makes Bid To Buy Comet

The entrepreneur behind Appliances Online has tabled a bid for Comet in a move that could see the failed electrical chain disappear from retail parks and high streets.

More follows...

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Renters Warned: Beware Of 'Rogue' Letting Agents

The lettings sector needs more regulation, the Royal Institution of Chartered Surveyors (RICS) has said, after revealing a rise in the number of so-called rogue agents.

Those renting properties are at risk of being taken advantage of by unscrupulous agents amid "a total lack of effective regulation", RICS warned after surveying 2,000 people.

The organisation said that renters had come to expect "worryingly low standards", with two thirds of those questioned saying they had not been given an inventory when they moved into a rented property in the last two years.

Lettings agencies do not have to conform to codes of conduct, RICS highlighted, and can be set up by people without relevant qualifications, knowledge or understanding of the rental process.

A clampdown is needed to prevent the sector turning into "the property industry's Wild West", RICS added.

Peter Bolton King, global residential director at the organisation, said rogue agents were taking advantage of the UK's booming rental market.

Demand for rental properties has shot up as people struggle to afford the deposit required to buy their own homes, or fail to meet banks'  tough borrowing conditions.

"A good lettings agent can be worth their weight in gold for both landlord and tenant," Mr King said.

"However, there are too many corrupt agents that do not belong to any professional body who are taking advantage of the current gap in regulation, putting consumers at risk."

He added that a rogue agent could land a tenant with problems including lost deposits, broken agreements and excessive charges.

"What we would like to see is the Government taking direct action on this and introducing a single regulatory and redress system for both sales and lettings agents to make sure they are fully accountable," he said.

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Mothercare Reports A Loss As UK Sales Fall

Mothercare's chief executive insists the business is "on track", despite reporting another fall in UK sales.

Like-for-like sales in Britain fell 3.4% in the UK in first half of the year - although this is an improvement on the 7% slide seen a year ago.

Sales overseas, where the retailer plans to open 150 stores this year, grew by 4.4% in the six months to October 13.

Although sluggish demand in the eurozone - its biggest international market - hit the rate of international growth.

After one-off charges, Mothercare, which sells prams, car seats and childrens' clothing, reported a loss before tax of £27.4m.

Its underlying performance - if the one-off items are stripped out - was stronger, with its pre-tax loss rising from £4.4m to £0.6m.

New chief executive Simon Calver has been charged with cutting prices and improving Mothercare's delivery service to help it better compete with rivals, including supermarkets.

His three-year turnaround strategy saw the group close 31 stores in the UK in the first six months, with plans to close 19 more this year.

He told Sky News the results showed progress at the company, which has failed to keep up with its competitors over recent years.

"We've done a lot on the management team, we've done a lot on our products and the value we offer to the consumer," he said.

But he added that the group had expected sales to "take a while" to turnaround.

"Early signs are encouraging but we're definitely on track," he said.

Mothercare has over 1,300 stores across the world, including 280 in the UK.

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Cameron To Insist On Austerity In EU Budget

By Robert Nisbet, Europe Correspondent

David Cameron travels to Brussels later insisting that austerity being enforced around Europe is reflected in the EU's budget.

He will join leaders from all 27 countries at a special summit to set the European Union's spending limits from 2014 to 2020.

It is a complex and deeply divisive process, with the UK balking at the European Commission's opening gambit - to increase the overall spending ceiling to a maximum one trillion euro.

This was flatly rejected by Britain and nearly all the net contributors to the European Union.

The European Council, which represents the interest of the member states, chimed in with its own plan, which represents a real-terms 2% cut from the spending ceiling approved for the current seven-year period.

But the proposal, penned by the Council President Herman van Rompuy, would reduce Britain's rebate and only contains a 1% reduction under so-called "Heading 4", which details the EU's spending on administration costs.

Mr Cameron, and other leaders, believe Brussels should accept some symbolic reductions in red tape and make deeper cuts to the legions of Eurocrats who work in the EU institutions.

The British Prime Minister believes Mr van Rompuy's proposals are moving in the right direction, but he needs to go further.

He has also insisted that the UK's £3bn a year rebate, which was negotiated to compensate Britain for money disbursed to other nations, is not up for discussion.

He told MPs yesterday he would be "fighting incredibly hard" to get the best deal for the UK, but he could use the veto to protect British interests.

The budget has to be agreed by all 27 members and by a majority in the European Parliament.

Other countries also have reservations with the proposals on the table: France and Ireland want to protect agricultural payments to their farmers, Italy is unhappy that other countries' rebates due to expire in 2013 might be renewed while Denmark wants to negotiate its own rebate.

Earlier this month Mr Cameron was blindsided by a Tory rebellion calling for a budget cut, not just a freeze. He may yet face their wrath.

The budget being discussed is about setting an absolute limit on EU spending, but the money spent is always considerably less.

So while the PM might be able to claim a victory in securing a freeze in total EU spending limits, UK taxpayers may still have to fork out more cash to Brussels.

If no agreement is reached, more summits will be held in the new year.

If there are still problems, the annual budget will roll over with an extra 2% added to take account of inflation.

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Supermarkets 'Over-Promote' Unhealthy Food

Supermarkets are over-promoting fatty and sugary products using special offers and price reductions, according to a study.

Professor Paul Dobson, from the University of East Anglia (UEA), led a three-year study of consumer behaviour towards food and the impact on overeating and food waste.

He concluded that unhealthy foods receive too much promotion from supermarkets, and said the food industry must do more to promote healthy living.

"It is simply irresponsible for supermarkets to overly promote foods with high sugar and fat content," he said.

"The food industry must play a much greater role in promoting healthy diets.

"Food producers can do more by reducing the fat, sugar and salt content of processed foods, while food retailers can ensure that healthy and nutritious choices are available and affordable to all consumers and that they practice responsible marketing."

Prof Dobson said that if retailers and producers did not take responsibility, regulation might be needed.

Supermarket giants including Tesco and Asda were the focus of the study

Special offers are worth more than £50bn in sales to supermarkets and account for over a third of all consumer spending.

The research team analysed weekly price and nutrition data of a full range of food and drinks products sold over a year by four UK supermarkets - Tesco, Asda, Sainsbury's and Ocado.

They found a bias towards sugary products for price promotions, while straight price discounts were on average more skewed towards unhealthy products.

Special offers also tended to be slanted towards more unhealthy products, especially those with high sugar content.

However, multi-buys were on average more biased towards healthier items.

"While price promotions can offer savings for consumers they may not be so good for our waistlines and health," he added.

"With almost a quarter of the population classed as obese, overeating and food waste are serious concerns for modern society."

Prof Dobson is outlining his findings at a lecture in London.

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Tax Avoidance: UK Missing Out On Billions

The Treasury is losing billions in revenue because officials are failing to clamp down effectively on agressive tax avoidance, according to Whitehall's spending watchdog.

The National Audit Office (NAO) revealed that HM Revenue and Customs (HMRC) has a backlog of 41,000 cases worth £10.2bn in tax revenue.

They relate to schemes aimed at small businesses and individuals in what has been described by MPs as "eye-watering" potential avoidance.

The NAO said officials are struggling to cope with the volume of schemes being "mass-marketed", often by small specialist tax advisers.

HMRC believes most of the schemes are not valid and would be "defeated" if tested in court but closing them down can take years of legal wrangling.

Margaret Hodge, the chair of the Commons Public Accounts Committee which oversees the NAO's work, called on HMRC to get a grip on the problem.

"People who pay their taxes promptly and in full will be dismayed to discover that the enormous level of tax avoidance taking place is overwhelming HMRC's efforts to combat it. The scale of the problem is staggering," she said.

"Without a credible plan to resolve these cases and to stamp out future avoidance, the public will lose confidence in the tax system's ability to collect even-handedly what is due from all individuals and companies."

She urged officials to step up enforcement and impose more fines so that they act as a deterrent.

Experts who design and sell such schemes have to notify HMRC under a regime known as Disclosure of Tax Avoidance Schemes (Dotas).

The NAO said this had helped target legal loopholes but that it had little effect on the overall scale of tax avoidance activity.

"There is little evidence that HMRC is making progress in addressing this problem and it must now be vigorous in seeking more effective counter-measures, proposing legislative change where necessary," it said.

Between 2004 and 2011, around 2,300 avoidance schemes were disclosed to HMRC, with over 100 new schemes emerging in each of the past four years.

Since April 2010, litigation has been opened in 110 avoidance cases. Of the 60 cases where judgments have been reached, HMRC was successful in 51.

The NAO said there was no evidence that this level of litigation was proving an effective deterrent.

Its chief, Amyas Morse, said: "HMRC must push harder to find an effective way to tackle the promoters and users of the most aggressive tax avoidance schemes.

"It is inherently difficult to stop tax avoidance as it is not illegal. But HMRC needs to demonstrate how it is going to reduce the 41,000 avoidance cases it currently has open."

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Greece Made To Sweat On Bailout Funds

Greek Prime Minister Antonis Samaras has rounded on the country's lenders over the latest failure to deliver bailout funds to Athens.

12 hours of emergency talks among eurozone finance ministers and representatives of the troika of lenders in Brussels ended without agreement but they pledged to meet again next Monday "for further technical work on some elements of the package".

Greece is sweating on 31.2 billion euros (£25bn) in aid - suspended in the summer over concerns it was not meeting the conditions of its bailout programme.

In reaction, Mr Samaras said on Wednesday: "Greece did what it had committed it would do . Our partners, together with the IMF, also have to do what they have taken on to do."

The statement continued: "Any technical difficulties in finding a technical solution do not justify any negligence or delays."

While the strict spending plans imposed on Athens are now seen as back on track, one of its lenders - the International Monetary Fund - has demanded no let up in the commitments agreed by the Greeks in return for aid.

A major bone of contention is whether to give Greece, which faces a sixth year in recession, an extra two years until 2022 to arrive at a point where it can raise its own funds.

The Eurogroup statement released after the Brussels meeting said it had "made progress in identifying a consistent package of credible initiatives aimed at making a further substantial contribution to the sustainability of Greek government debt".

Head of the IMF, Christine Lagarde added: "It was progress but we have to do a little bit more."

The IMF, which along with the European Central Bank (ECB) and the European Commission (EC) form the troika overseeing the Greek bail-out, has argued that if Greek debt is to be sustainable in the long run, it must be reduced to 120% of GDP by 2020.

Greece's debt burden is currently nearly 180% of GDP.

Options being considered to help Athens include recycling ECB profits on Greek bonds and lowering the interest rate Greece has to pay.

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Hovis-Owner To Cut 900 Bread Jobs

The owner of Hovis has announced plans to cut 900 jobs in its struggling bread business as profits become harder to come by.

In a statement, Premier Foods said it was to close two bakeries and reform its delivery network.

The biggest impact will be felt in Birmingham, where 511 jobs are to be lost with the closure of a factory and distribution operation.

Hovis operations at Greenford in west London will also shut costing 196 jobs while Premier said it was also preparing to close distribution sites at Plymouth and Mendlesham in Suffolk resulting in 95 job cuts.

The closures are subject to consultation with employees but are scheduled to take place during the course of 2013.

St Albans-based Premier, which also makes Mr Kipling cakes and Bisto gravy, has seen its Hovis division hit by intense competition in the bread market and a surge in wheat price inflation caused by poor weather.

As a result it is set to lose a £75m-a-year contract with a major grocery chain from the middle of next year after Premier was unable to agree a new deal on sufficiently attractive terms.

It is cutting 130 distribution routes and closing the supply centres to take into account the expected reduction in volumes.

Premier chief executive Michael Clarke said: "We recognise the impact these actions will have for our employees at the sites affected.

"Decisions will not be taken lightly but they are necessary if we are to build a strong and successful future for the bread division and those who remain with our business."

Sky's City Editor Mark Kleinman revealed last month how the business had recruited Goldman Sachs to find a buyer for Hovis.

Premier has offloaded several well known brands in recent times, including Sun-Pat Peanut Butter and Branston Pickle, as it looks to concentrate on a portfolio of what it sees as core brands.

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Cheaper Power Tariffs Under Energy Shake-Up

Energy Secretary Ed Davey will flesh out proposals later to ensure all households are on the cheapest gas and electricity tariffs available.

After weeks of confusion about the Government's plans to simplify the market and reduce bills for hard-pressed families, the Liberal Democrat is expected to use an appearance before the Energy Select Committee to give more details.

It is thought energy firms may be prevented from offering more than four tariffs and be required to automatically move customers on to the cheapest one.

The move comes amid long-standing concerns that many households are paying hundreds of pounds a year more than is necessary for gas and electricity because of the confusing array of tariffs.

Ed Davey insists the Government backs a low carbon economy

The issue has become more acute in recent years because of rising wholesale prices that have seen energy charges soar.

Meanwhile, MPs have called on Chancellor George Osborne to reassure investors the Treasury is committed to moving towards a greener economy.

Mr Osborne must use the autumn statement next month to end the uncertainty over the direction of energy policy, which is undermining investment in the UK's power sector, the parliamentary Environmental Audit Committee (EAC) said.

MPs say George Osborne must "end the uncertainty"

The EAC also added its voice to calls from business leaders, trade unions and green groups for the Energy Bill, due to be published before the end of November, to include a target to slash emissions from the power sector by 2030.

The cross-party committee's chairwoman Joan Walley said: "The Treasury must end the uncertainty on energy policy and give investors and businesses the confidence to seize the enormous opportunities presented by new clean technologies."

Friends of the Earth's head of campaigns Andrew Pendleton said: "MPs are right to slam the Chancellor - his gas-fuelled economic strategy will send fuel bills soaring, jeopardise jobs and scupper UK efforts to tackle climate change.

"The Treasury seems hell-bent on killing off Britain's growing green economy, despite the tens of thousands of jobs it can create and business leaders' group CBI's pleas for more backing."

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easyJet Profit Soars By Over 27%

easyJet has reported a rise in pre-tax profit of 27.9% to £317m over the year to the end of September.

The budget airline said a surge in late summer bookings to destinations including Malaga, Alicante and Faro helped helped boost its revenue, which increased by 11.6% to £3.85bn.

Passenger numbers were up by over 7% at the company - which is Europe's second-largest budget airline after Ryanair - and it more than doubled its full year dividend from 10.5p to 21.5p, or £85m.

The company said its strong results come despite a rise of £182m in fuel costs and low consumer confidence across Europe as a result of the ongoing debt crisis.

Less disruption from weather and strikes helped easyJet reduce its amount of cancelled flights - fewer than 1,000 were cancelled over the last financial year, compared with over 4,000 in 2011.

Chief executive Carolyn McCall said: "These results demonstrate that easyJet is a structural winner in the European short-haul market against both legacy and low cost competition."

She added: "Whilst there is always the potential for unexpected events to temporarily impact financial results the Board of easyJet is confident that its business model, strategy and people will consistently continue to generate superior returns and growth for shareholders."

The airline has outperformed rivals, which continue to struggle with the tough economic conditions facing the sector.

Earlier this month, IAG's Spanish airline Iberia reported profit of just £13.5m, and announced pay cuts and 4,500 job losses. 

While Spanair and Hungary's Malev have both ceased operations - leaving gaps in the market that easyJet has been able to take advantage of.

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Warning Over 'Burnout Britain' For Workers

More than half of British employees are now working longer hours than they were three years ago, a new report suggests.

Researchers said some 58% of workers say their job demands have expanded, while 34% believe they are affected by excessive pressure.

The study, published by professional services firm Tower Watson, surveyed 32,000 employees worldwide for its global workforce study (GWS), including 2,600 workers in the UK.

It claimed Britain is heading for a "well-being meltdown" due to the pressure of the recession.

"From pay cuts to longer working hours, the GWS highlights the demands on workers that the recession has brought about, with only half (53%) of UK workers feeling their stress levels at work are manageable," it said.

"Despite increasing requirements for businesses to provide workers with advice on health and well-being, just a third (31%) of employees feel that their senior leaders support such policies."

Researchers added that British workers feel a need to display their commitment to the job as more than a 25% have failed to maximise their annual holiday or personal time off entitlements since 2009.

Exacerbated by the trend of cutting workforce numbers, one-in-five employees now feels that the amount of work they are asked to do is unreasonable, meanwhile 30% believe their organisation is under-funded in human resources.

The study showed results for the UK were broadly in line with those seen across Europe, the Middle East and Africa, with similar numbers of workers feeling that there was excessive pressure, longer working hours and fewer resources.

Towers Watson said it also identified a clear link between the levels of well-being and engagement in a company's workforce and organisational performance.

It said that firms with low engagement produced an average operating margin of around 10% while organisations with high sustainable engagement performed nearly three times better - with operating margins of over 27%

Another issue that appeared was career development being hampered because staff were retiring at a later age, with a trend appearing of three generations appearing in the workforce.

Towers Watson's Nick Tatchell, who was involved in the research, said: "About a quarter of the people we interviewed thought because people weren't retiring it was becoming an issue.

"There is another issue and that is of people being 'stuck'. The want to contribute and they want to do a good job.

"But only about half of them say they have the 'tools' to achieve that and believe they are 'stuck'.

He added: "So they feel they are stuck both with tools and resources and also in their careers. People feel that is lacking at the moment."

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Empty Shops Rate Sets 'Alarm Bells Ringing'

One in 10 shops in UK high streets and shopping centres were empty in October - the worst figure since the British Retail Consortium's nationwide survey began in July 2011.

As retailers continue to battle against stagnating sales and rising costs, the new figures showed last month's town centre vacancy rate at 11.3%.

A fifth of store units are currently empty in Northern Ireland, while the rate for Wales is 15.1% and for the North & Yorkshire region the rate is 14.6%. Greater London had 7.6% of its units lying empty.

BRC director general Stephen Robertson said the latest figures would set "alarm bells ringing" and the financial challenges for both customers and retailers were far from over.

Big brands including JJB Sports, Clinton Cards, Blacks Leisure, Game and Peacocks have either disappeared or scaled back their presence in town centres after going into administration.

And the collapse of electricals chain Comet this month will be another blow.

Mr Robertson renewed his call for Chancellor George Osborne to freeze business rates, which are set to increase by 2.6% in April.

He said: "Many retailers are battling stagnating sales and rising costs, and next year's threatened business rates increase can only make matters worse.

"If the Government wants to breathe life back into our town centres and ensure the retail industry can play its full role in job creation, it needs to freeze rates in 2013."

In response, a Department for Communities and Local Government spokesman said: "Empty shops are a wasted economic opportunity that spoil the town centre.

"That is why we are proposing to scrap the damaging red tape that is keeping so many shops boarded up, allowing young entrepreneurs to open pop-up shops and turn the high streets into an exciting start-up launchpad.

"The best thing Government can do to help businesses is to provide them with a stable economic environment, which is why we want to protect local firms from soaring tax bills.

"We've postponed the revaluation, which will stop soaring tax bills for 800,000 firms, and given businesses the option of spreading this year's increases out over three years.

"Councils also have the power to grant discretionary discounts, and we've temporarily doubled small business rate relief, meaning approximately a third of a million businesses - including many small shops - are currently paying no rates at all."

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Business Bosses Slam 'School Exams Factory'

Britain's education system is fostering a "cult of the average", failing to help the brightest youngsters or those most in need, business leaders have warned.

In a new report, the CBI says too many children fall behind and never catch up, and that in some cases, secondary schools have become little more than exam factories.

Decades of "patchwork" reforms have confused schools, encouraged a tick box culture that has put off teachers and resulted in a narrow focus on exams and league tables, the UK's biggest business group adds.

The report calls for a major overhaul to ensure that all children can succeed.

It recommends radical changes, such as reducing the importance of GCSEs and making A Levels the main exam for school leavers, and moving away from league tables in favour of Ofsted reports.

"The education system fosters a cult of the average: too often failing to stretch the most able or support those that need most help," the CBI says.

CBI director-general John Cridland said while businesses want school leavers to have a rigorous education, they also want it to be "rounded and grounded".

"Today we have a system where, sadly, a large minority of our young people fall behind," he said.

"They fall behind and never catch up. It's not the fault of any individual concerned. It's not the fault of children, parents or teachers. It's a system failure. It's not acceptable any more than it's not acceptable that the top 10% are not stretched enough."

Mr Cridland added: "This generation of young people are as streetwise as any, but sometimes in the education system we're not always bottling that.

"In some cases secondary schools have become an exam factory. Qualifications are important, but we also need people who have self-discipline and serve customers well."

Ministers have announced plans to scrap GCSEs and replace them with new English Baccalaureate Certificates in English, maths and science. Reviews of A Levels and the national curriculum are also under way.

Mr Cridland said: "Government reforms are headed in the right direction, but are not sufficient on their own. They need to go further and they need to go faster."

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Miliband Warns Of 'Sleepwalk' Towards EU Exit

Ed Miliband has called for major reforms of the European Union and a "hard-headed" approach taken by Britain, ahead of a crunch EU budget summit this week.

The Labour leader - who last month joined forces with Tory rebels to defeat the Government over its strategy to freeze the EU budget - said Labour must not ignore the legitimate concerns of eurosceptics.

He said reform was needed on the budget, on immigration rules, state aid restrictions and austerity measures - but declined to promise a referendum on the UK's future within the EU.

"What I would say is: never shrink from being open about the problems of the European Union," he told the Sunday Telegraph.

Mr Cameron travels to Brussels on Thursday facing pressure from his backbenchers to push for the real-terms spending cut approved in the non-binding Commons vote Labour helped secure.

The Prime Minister, who insists a rise in line with inflation is a more realistic target in the negotiations, has threatened to use the UK's veto if the rise proposed by the Commission is not drastically reduced.

He is under mounting pressure to set out plans for a referendum, with restless MPs increasingly concerned about the threat posed to the Conservatives by the UK Independence Party at the next general election.

Ukip scored its best parliamentary by-election result in Corby, coming in third ahead of the Liberal Democrats and an opinion poll today showed more than a quarter of Tory supporters would "seriously consider" switching.

Mr Miliband - who told French president Francois Hollande in the summer that he saw Britain's place as "firmly in Europe" - was accused of opportunism for voting with the Tory rebels.

But he insisted his party could be at once a keen supporter of EU membership and "realist" campaign for reform.

Mr Miliband, who is due to reinforce his points in a speech to business leaders at a CBI conference on Monday, said he believed bosses were "genuinely worried that we're going to sleepwalk towards an exit under Cameron".

"Nobody thinks he's at those negotiations with anything other than with an arm up his back from the people in his own party," he told the newspaper.

"People are always writing us off as if to say that these guys are going toward the exit. That's very dangerous for us."

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Jaguar Land Rover Launches China Expansion

By Mark Stone, China Correspondent

Jaguar Land Rover is to manufacture cars outside the United Kingdom for the first time.

The company has entered into a joint venture with one of China's largest car makers Chery.

The two firms began work to build a factory near Shanghai today.

"For the first time one of the most famous names in the British automotive industry, Jaguar Land Rover, is poised to begin manufacturing in a market outside the United Kingdom," the company's CEO Dr Ralf Speth said at the stone-laying ceremony.

"It seems only fitting that this new venture will take place here, in the People's Republic of China, the world's fastest-growing market for premium vehicles."

Kay Francis, the company's director of global corporate communications, told Sky News: "This is our first ever manufacture plant outside the UK."

"The facility here in China will include research and development, engine plants and production lines. Start to finish, the cars will be made in China," Ms Francis added.

Executives at Jaguar Land Rover have been in complicated negotiations with their counterparts at Chery for months.

Chery is a state-owned company and Chinese government approval was required before any deal could be signed.

The joint venture project was approved by China's National Development and Reform Commission last month.

The first bricks of the new factory were laid at a ceremony in Changshu, Jiangsu Province, to the northwest of Shanghai.

Yin Tongyao, the president of Chery Automobile, and Dr Speth were both there.

"Soon, on this very site, will be a fully-fledged manufacturing plant, to create employment, stimulate the supply chain and develop game-changing environmental technologies for China. A total of 10.9bn renmimbi (£1bn) will be invested in this joint venture," Dr Speth said.

"In our shared vision with Chery, this partnership will offer Chinese customers the latest generation models from Jaguar and Land Rover, as well as vehicles designed specifically for Chinese customers," he said.

The company hopes that the first cars will roll off the production line in 2014.

It is understood the first vehicle to be built at the factory will be the Land Rover Freelander.

The company would not confirm that suggestion.

"We intend to build Jaguar and Land Rover branded products here... It's likely that a Land Rover badged vehicle will be the first to come out of the plant when it opens in 2014," Ms Francis said.

Volkswagen already manufactures VWs, Audis, Skodas and Seats in China

China has become Jaguar Land Rover's largest market and experts say it has not even begun to reach its potential.

Sales of the company's cars reached 53,000 there in the first nine months of this year - that's up 80 per cent from the year before.

The reason behind the boost is China's demand for luxury goods.

Jaguar Land Rover has sold 20,000 Range Rover Evoques this year alone.

The firm hopes to boost last year's record £1.5bn profits when the new Chinese factory begins work.

Building cars in China rather than importing them from the UK allows the company to avoid massive import duties.

Chinese-made vehicles can be sold for less and the hope is that more will be bought.

The company insists the expansion to China is in addition to their business in the UK and that no UK jobs will be lost as a result.

"Everything we do in China is in addition to our UK operation. We are not shifting production and it doesn't impact the head count and state of play of the plants in Britain," Ms Francis said.

Jaguar Land Rover does have a factory in Pune, India, but that acts simply as an assembly plant, constructing flat-packed cars which are manufactured in the UK.

Compared with other European car makers, Jaguar Land Rover is very late in expanding production to China.

Volkswagen began its first joint venture in China in 1984. Volkswagen Group China now manufactures VWs, Audis, Skodas and Seats in China with year-on-year record sales.

Ageing Volkswagens are a common sight in Beijing; a sign of just how long the company has been operating here.

Audi is now the favoured brand for the political elite in China. Black Audi A6 cars, manufactured in China, are seen all over Beijing.

Jaguar Land Rover says that as well as building cars identical to those built in the UK, it plans to build a new vehicle designed specifically for the Chinese market. 

"We may also build a brand of car that is a blend of the two: a car that is new and designed and developed entirely in China," Ms Francis said.

"Having Chinese research and development means we can tailor cars for Chinese tastes."

British brands are very popular in China. Combine that with the fact that China has an increasingly wealthy urban population and there are significant opportunities which could help strengthen the UK economy.

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British Airways 'Twitter Account Hacked'

British Airways has launched an investigation after its Twitter account was apparently hacked and an offensive message retweeted.

The official BA Twitter account seemingly retweeted an offensive and racist message on Saturday afternoon.

After the offensive retweet was deleted, staff at the airline then tweeted an apology.

It said: "Apologies for the last RT. We are sorry for any offence caused and are investigating how this may have happened."

Within minutes, hundreds of Twitters users resent the retweet and later more than 160 followers had retweeted the apology.

The BA account has more than 210,000 followers.

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