Autumn Statement: CPS Calls For Action On Debt

George Osborne should introduce cash freezes to avoid missing his debt target, a right-wing think tank has said just days before the Autumn Statement.

The Centre for Policy Studies (CPS) claimed the country's debt will be between £20bn and £30bn higher than Government forecasts in 2015/16.

To avoid this, the organisation urged the Chancellor to save money by introducing freezes on international aid and all benefits except for the state pension.

The halt on public sector pay rises should also be clarified, it added, as "many departments have interpreted the existing freeze very differently".

These measures need to be part of a plan to reduce Government spending to 38% of GDP within four years, the CPS said, adding that a simplification of the UK's "dysfunctional tax system" is also needed.

The calls come ahead of the Autumn Statement on December 5, when Mr Osborne will reveal his latest economic plans to Parliament.

The CPS' head of economic research, Ryan Bourne, said it is clear that assumptions about the potential underlying growth of the economy have been over-optimistic.

"It's increasingly obvious that a further spending review is necessary, and this should go further in looking at the scope of government activity," he said.

And Tim Knox, the director of the CPS, stressed that need for a "great reduction in Government activity".

"The Chancellor has a choice: will he put the long-term economic health of the country above the temptations of short-term political gain?" he said.

"If he tweaks the numbers to meet his rules and if he announces a wide range of policy initiatives which might grab a few headlines, then we will know that this is a statement inspired more by politics than economics."

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Corporation Tax Transparency Call From KPMG

Companies that operate in the UK have been urged to accept greater transparency over their complicated tax structures by a top professional services firm.

KPMG described it as a "sea change" for companies as they learn to disclose more account details.

The firm's head of tax Jane McCormick said: "We believe that corporations are going to have to embrace transparency to explain what taxes they are paying and where they are paying them."

But resistance still remains with some top firms to greater openness, according to a KPMG survey of 57 senior tax executives at leading British and UK subsidiaries of foreign multinationals (MNCs).

Some 40% of the executives still oppose a General Anti-Abuse Rule (GAAR) targeting highly abusive or artificial tax planning.

Ms McCormick added: "By doing so they will also illustrate how their presence contributes to the economies in which they operate whether that be by generating employment (income taxes), sales (indirect taxes), paying business rates or through corporation tax."

The push for transparency comes amid unprecedented public outcry over MNCs' tax avoidance through complex offshore mechanisms.

Ms McCormick added: "The risk is that, without this transparency, the current debate may turn into a witch-hunt, deterring businesses from investing in the UK."

Her comments come just days before the Commons Public Accounts Committee (PAC) is expected to release a report on its questioning of executives from three leading MNCs.

The PAC questioned representatives of Starbucks, Amazon and Google about the amount of corporation tax they pay in Britain.

When grilled by its chair Margaret Hodge, Starbucks' chief financial officer Troy Alstead said his firm had only made a profit once in the 15 years it has been doing business in the UK.

Amazon director of public policy Andrew Cecil was forced to explain why a CD or a book bought in pounds on Amazon.co.uk delivered from a UK warehouse by the Royal Mail is registered in Luxembourg.

Earlier in the year it was reported Amazon - Britain's largest online retailer - generated UK sales over the past three years of between £7.6bn and £10.3bn, but paid virtually no corporation tax.

Google's UK unit paid just £6m to the Treasury in 2011 on revenue of £395m, according to another news report.

Despite the reluctance from some top tax executives KPMG believes that details of tax arrangements will increase in annual company reports as firms seek to clarify their positions to the public, the media and politicians.

"We predict that a tax report will, in time, become as much a feature of the annual report as a Corporate Social Responsibility statement is today," Ms McCormick said.

"With improved transparency on tax, hopefully the 'bigger picture' of how a business-friendly tax system can attract corporates will emerge, demonstrating how the UK's ambition to create the most competitive tax regime in the G20 can play a key role in rebuilding the economy and fuelling the recovery."

She added: "The risk is that without this transparency, the current debate may turn into a 'witch-hunt' deterring businesses from investing in the UK."

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Data Watchdog Gives Christmas Warning

By Pete Norman, Sky News Online

The data protection watchdog has told Sky News that consumers need to be increasingly wary of what companies do with credit card details given over the phone or online.

The warning from the Information Commissioner's Office (ICO) comes as record numbers use internet and telephone shopping services ahead of Christmas.

ICO head of strategic liaison Jonathan Bamford told Sky News: "Although Christmas is the season for giving, be very, very careful when you give your personal details.

"It's really valuable - treat it like your money."

He added: "You should be very wary of who you are dealing with in an online transaction, if you are not confident with the organisation don't proceed with it."

Card details given online can carry data breach risks

Further concerns have been raised by the increasing use of audio recording of customers' telephone calls by companies.

While many firms tape calls for "training and quality purposes", recordings which contain bank or card details are at risk of fraudulent use if proper precautions are not taken.

"Organisations that do use audio recordings need to make sure they don't hold those for any longer than they need to really verify the transaction," Mr Bamford said.

"Data protection law requires them to get rid of information when they don't need it any longer and that applies to audio recordings, along with any other personal details, which may have credit card information."

Banks have long used audio recordings to pursue internal fraud investigations but retail firms are using the audio technology too.

Many firms increasingly record customers' card details

The watchdog can impose penalties of up to £500,000 data protection breaches by organisations.

Earlier this month the Prudential was hit with a £50,000 fine over errors on two customer accounts.

Greater Manchester Police was also fined £120,000 after an unencrypted memory stick was stolen that contained details of more than 1,000 people with links to serious crime investigations.

"If there are real concerns about what happens to our information we have rights of access to find out about that," Mr Bamford told Sky.

"If the worst comes to the worst, the Information Commissioner has powers to make sure companies look after our information properly."

Corporate solicitor Maung Aye, of Mackrell Turner Garrett, told Sky News: "Companies should take their data protection obligations very seriously.

"There are not only substantial financial penalties which the Information Commissioner can impose but a number of other potential ramifications including adverse publicity affecting the company's image, brand and reputation and even criminal liability for directors which could ultimately result in imprisonment."

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Energy Bills 'Will Be Lower' Under New Policy

Energy Secretary Ed Davey has said the Government's long-delayed Energy Bill would see consumers pay less for energy in the long-run.

As he introduced the legislation to Parliament, Mr Davey said: "The net effect of Government policy on energy bills is downwards not upwards."

His comments come despite admissions by the Department for Energy and Climate Charge (DECC) last week that the additional investment in green power would add £95 to energy bills by 2020. 

When considered alongside all other energy efficiency policies, however, the Government insists that bills will be £94 less in 2020 if the measures are introduced.

The cost to consumers is "the greatest concern", Mr Davey said, stressing that energy companies will come under pressure to help lower bills.

"We intend to underpin this with reforms to the retail market to simplify tariffs and make sure consumers are able to get the best deal for them," he said.

The Government estimates an extra £110bn is needed over the next ten years to restore the UK's ageing energy infrastructure, much of which is set to be allocated to low-carbon power sources.

By pumping more money into these renewable and "green" power generation, it also hopes to help bolster the country's ability to withstand energy shortfalls.

Any new coal plants built must have carbon capture and storage

The Bill outlines a rise in the amount of investment in green power from £2.35bn a year in 2012 to £7.6bn in 2020.

"In an era of rising global energy prices, by shifting to more home grown sources of power and by becoming more energy efficient, we can cushion our economy and households from the fluctuations of world gas markets," Mr Davey said.

Measures detailed in the Bill included a requirement that any new coal plants built have carbon capture and storage, and plans for long-term contracts that see firms paid a guaranteed price for the electricity they generate from low-carbon sources.

A "capacity mechanism" scheme, which would see companies bid for support to provide power sources or reduce demand during peak demand, was also outlined.

In addition, the Government published proposals to cut demand for energy in the UK, as the DECC estimates a 10% reduction in electricity use could save £4bn by 2030 and reduce carbon emissions significantly.

But Mr Davey's lack of a target to decarbonise the power sector led to criticism from Labour's Caroline Flint said.

The shadow energy secretary demanded "a clear commitment" to decarbonise the energy sector by 2030.

She added: "Not just businesses in the renewables sector but elsewhere are really concerned about the lack of a vision of the Government on this issue.

"I make no bones about it: we support a clear decarbonisation target on the face of the Bill."

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Nintendo Wii U: Games Fans Queue For Console

Games fans queued outside a store in London's Oxford Street, eager to be among the first in the UK to own the much-anticipated Wii U.

The first major home console launch since 2006 has already proved popular in the US, despite mixed reviews, and there has been a high demand for pre-orders in the UK, launch hosts HMV said.

The Wii U features the GamePad controller, a tablet-type device that allows users to continue playing after the connected television has been turned off or switched to another channel.

The controller boasts a 6.2in touchscreen display and a three to five-hour battery life.

Among the games expected to be best-sellers are ZombiU, which carries an 18 age restriction, NintendoLand - the Wii Sports for the new console - and New Super Mario Bros U.

The console launched in the US earlier in November, with most concerns surrounding the amount of games that will be available to justify the minimum £250 cost.

Others have mentioned the controller's weak battery performance, a lack of stand-out launch games and frustrating menus and online services.

Nintendo UK marketing director Shelly Pearce told Sky's Jeff Randall Live the Wii U's inbuilt screen "fundamentally changes the way you play video games".

She said all existing games can be played on the new console and it offers "a really deep gaming experience".

The new Wii U GamePad and Console launched at E3 2012 in Los Angeles

Earlier she said: "We can't wait to get the Wii U into the hands of our fans in the UK."

Over the summer at the Electronic Entertainment Expo in Los Angeles, Nintendo illustrated how New Super Mario Bros. U could be played on either a TV or the touchscreen controller.

The latest instalment in the brick-smashing, coin-collecting franchise lets up to four people play simultaneously with traditional controllers, while another can join in with the touchscreen controller to jab enemies and build platforms.

New Super Mario Bros. U and NintendoLand demonstrate what Nintendo calls "asymmetric gameplay" - where a group of people playing together are having very different play experiences on a single game.

And after taking on board criticism of the original Wii's awkward online system, Nintendo has boosted the new console's connected capabilities.

"The system will know when you're playing with your user account - everything that you've played in the past, what your preferences are," said Nintendo of America president Reggie Fils-Aime.

"So it will truly be an experience unique to you. Versus if your wife or your children want different experiences, they really are tailored for each particular consumer."

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Supermarkets Back New Price Promotion Rules

What The Supermarkets Say

Updated: 3:19am UK, Friday 30 November 2012

Eight major supermarkets have signed up to a new code on special offers and price promotions, while Asda is considering whether to take part. Here is what some of the retailers had to say...

Lidl: "At Lidl, we consider customer satisfaction and transparency to be at the forefront of our business, and the OFT's set of principles for fair pricing practices is fully in line with our own pricing policies we have set ourselves.

"For example we do not inflate prices of products before a promotion to artificially imply a saving to the customer.

"For this reason the pricing of products in Lidl stores will not be affected as we will continue to apply these principles to our prices in stores."

Tesco: "We work hard to ensure we offer competitive prices and fair, meaningful promotions to our customers.

"We always try to use simple and clear information, so we welcome the OFT's clarity on good practices and support their wish to see a consistent approach to promotions across the sector."

Waitrose: "Waitrose already has clear principles in place to ensure that our pricing is clear and transparent for our customers - so we are supportive of the OFT's code announced today."

Morrisons: "We are happy to sign up to the Office of Fair Trading's principles because they reflect good promotional practice and we are working towards convergence."

Sainsbury's: "These principles are in line with what we already do at Sainsbury's as we have always been committed to fair and transparent pricing. We will continue to ensure that our pricing and promotions are as clear as possible for our customers."

Co-Operative: "We understand how important it is for shoppers to be able to easily understand what the promotional offer is, so they can spot the best deal, and we are committed to providing clear and accurate labelling for our customers so they can make informed purchasing decisions.

"We have been working closely with the Office of Fair Trading, and are fully supportive of the principles set."

Asda: "We're not sure (the OFT's draft code) best helps customers in these challenging times, so we are taking the time to consider its proposals in detail."

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Comet: Jobs At Risk As Shops Face Closure

Comet's administrators have confirmed a further 125 stores will close by the end of the year if they fail to get a firm offer for the whole business.

Around 70 stores of the original 236 will remain open until the electricals retailer's remaining stock is sold, Deloitte added. 

Some 5,000 jobs remain in the balance at the embattled retailer, which called in the administrators earlier this month.

Deloitte's Chris Farrington said a "small number of interested parties" remained and he hoped a positive outcome could still be achieved.  

"Should any acceptable offers be received for stores we will delay the closure process," he said.

"Unfortunately, in the absence of a firm offer for the whole of the business, it has become necessary to begin making plans in case a sale is not concluded."

Stores will begin closing in December, he added.

Since Deloitte was appointed to work for the electricals chain, some 1,500 jobs have already been axed.

Last week, the entrepreneur behind Appliances Online confirmed he had tabled a bid for Comet's web-based operations - but not for the whole business.

John Roberts said he had put in a "seven-figure offer" for Comet's website, although the deal would see the business disappear from the UK's high streets.

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BP Banned From New US Government Contracts

The US Environmental Protection Agency has suspended BP from new government contracts as three BP employees deny criminal charges.

The temporary ban stemmed from the British oil giant's conduct in the blowout at its Deepwater Horizon rig, which killed 11 workers in April 2010.

Meanwhile two BP rig supervisors and a former BP executive pleaded not guilty to criminal charges. BP well site leaders Robert Kaluza and Donald Vidrine are charged with manslaughter in the deaths of 11 rig workers and accused of disregarding abnormally high pressure readings.

BP's vice president of exploration for the Gulf David Rainey was charged separately with concealing information from Congress about the amount of oil that was leaking from the well. All three have been released on bail.

It comes after the company has agreed to plead guilty to charges over its part in the largest environmental disaster in US history, and to admit lying to Congress about the amount of oil that was spilling from the Macondo well.

"EPA is taking this action due to BP's lack of business integrity as demonstrated by the company's conduct with regard to the Deepwater Horizon blowout, explosion, oil spill, and response," the agency said.

"Suspensions are a standard practice when a responsibility question is raised by action in a criminal case."

The move prevents BP from getting new government contracts or grants "until the company can provide sufficient evidence to EPA demonstrating that it meets federal business standards," EPA added.

Existing agreements between the company and the government are not affected.

BP said it had made "significant enhancements" since the accident, including at its safety and risk operations, upstream business and drilling standards.

The company said it was working with EPA to demonstrate "present responsibility" and have the temporary suspension lifted.

"BP has been in regular dialogue with the EPA and has already provided both a present responsibility statement of more than 100 pages and supplemental answers to the EPA's questions based on that submission," it said in a statement.

The agency has informed BP that it is preparing an agreement that "would effectively resolve and lift this temporary suspension", the statement said.

Professor Joe Lampel from Cass Business School said EPA's decision dealt a blow to BP.

"The ban comes at the end of a complex process during which BP has settled most of the claims against it," he said.

"Therefore this suspension should be seen as an additional penalty rather than a pressure tactic that the US government often uses when it wants to force firms to concede liability."

He said the ban would most probably be lifted after a sufficient grace period has passed.

"BP has been working hard to repair its reputation and I suspect that it will do whatever it takes to satisfy regulators that it now meets all the necessary standards," he added.

At the end of last month, BP revealed the disaster had cost it more than $38bn (£23.7bn) to date.

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Dixons 'To Benefit' From Comet As Sales Rise

This year's summer of sport gives Dixons Retail Group a boost in the UK, as it prepares to benefit as a result of Comet entering administration.

Like-for-like sales at the retailer - which owns Currys and PC World - were up 3% in the UK for the six months to October 13, helping its UK and Ireland division post a profit for the first time in five years.

Dixons said it expects its market position in Britain to go "from strength-to-strength" following the collapse of its rival Comet, which called in administrators earlier this month.

"While there may be some disruption while Comet completes the 'fire-sale' of its stock in the short term, Currys and PC World will benefit from the consolidation and we look forward to re-investing further gains into the offer for customers," the company said in a statement.

Despite increasing sales, Dixons still reported a loss

Retails analysts Conlumino said there were crucial differences between the business models of Dixons and Comet.

"In the UK and Ireland, Dixons has given a great example of how to get back to basics and has been left with a leaner, more competitive business as a result," analyst Matt Piner said.

"Improvements to service and instore experience meant Dixons was able to compete against the rise of non-specialist rivals in a way that Comet was unable to."

He said Comet's collapse would provide some "much needed relief" for the company, especially in sales of tablets, smart televisions and small kitchen appliances.

"There will be further pain along the way but in two to three years time Dixons is likely to be a more efficient business excellently poised to capitalise on a market recovery," he added.

The group reported a loss before tax, including one off charges, of £79.5m - compared with a profit of £2.4m over the same period last year.

When these exceptional charges are deducted, its underlying loss before tax narrowed from £25.3m to £22.2m.

Dixon's chief executive, Sebastian James, said the company had made good progress in the first half of the year.

"I am particularly encouraged by our performance in the UK and Ireland and in Northern Europe and we were particularly busy during the sporting and cultural events during the summer," he said.

"While August and September were, as expected, a bit quieter, we remain cautiously optimistic about the outlook."

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UK's First 'Green' Bank Opening For Business

The UK's first ever 'green' bank will be officially declared open for business later.

The Green Investment Bank (GIB) is funded with £3bn of Government money earmarked for helping develop a green economy.

It will be launched by Business Secretary Vince Cable at its headquarters in Edinburgh.

He will say: "The Green Investment Bank - a key coalition pledge - is now a reality.

"It will place the green economy at the heart of our recovery and position the UK in the forefront of the drive to develop clean energy.

"Three billion pounds of Government money will leverage private sector capital to fund projects in priority sectors from offshore wind to waste and non-domestic energy efficiency, helping to deliver our commitment to create jobs and growth right across the UK.

"Having the headquarters in Edinburgh is a powerful vote of confidence in the Union, and a testimony to our commitment to helping Scotland lead the green revolution."

First to benefit from the fund is a project in the north east of England that will generate energy from waste.

Around £8m will go to the construction of an anaerobic digestion (AD) plant at Teesside, the first of six planned over the next five years.

This will be matched with a further £8m from the private sector, according to the Government.

The GIB will also invest £5m to fit manufacturer Kingspan's UK industrial facilities with systems that will reduce its energy consumption by 15%.

Bank chief executive Shaun Kingsbury will set out his plans during the event, which will also be attended by Secretary of State for Energy and Climate Change Edward Davey.

Mr Davey said: "The Green Investment Bank will help attract the capital required to allow the green economy to blossom, encouraging investors to market and kick-starting low-carbon and energy efficiency projects.

"In combination with our electricity market reforms, there will be lasting economic benefit as a result, with new expertise and jobs created, that will give the UK a competitive edge."

Dan Barlow, of environmental group WWF Scotland, said the launch of the bank represented an exciting step towards a low carbon economy, while Scottish energy minister Fergus Ewing said it presented "huge opportunities" for green energy projects north of the border.

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Rail Fares Set To Rise Above Inflation Again

New Season Rail Ticket Prices

Updated: 1:08am UK, Wednesday 28 November 2012

According to Passenger Focus, these are examples of the new season ticket prices and fare percentage increases on 2012 that will take effect from January 2013:

:: Gillingham to London, £3,672 (4.2%)

:: Canterbury to London, £4,860 (5.9%)

:: Tonbridge to London, £3,796 (5.2%)

:: Guildford to London, £3,224 (4.3%)

:: Portsmouth to London, £4,668 (4.2%)

:: Bournemouth to London, £5,988 (4.2%)

:: Reading to London, £3,960 (4.2%)

:: Oxford to London, £4,532 (4.2%)

:: Hove to London (Victoria), £3,860 (4.1%)

:: Eastbourne to London (Victoria), £4,228 (4.1%)

:: Aylesbury to London, £3,632 (3.2%)

:: Colchester to London, £4,556 (4.1%)

:: Shenfield to London, £2,704 (-0.6%)

:: Huntingdon to London, £4,700 (4.2%)

:: Cambridge to London, £4,400 (3.8%)

:: Morpeth to Newcastle, £1,008 (5.0%)

:: Peterborough to London, £6,888 (4.2%)

:: North Berwick to Edinburgh, £1,604 (3.9%)

:: Ellesmere Port to Chester, £720 (2.3%)

:: Tain to Inverness, £1,204 (3.8%)

:: Stirling to Glasgow, £1,916 (3.9%)

:: Llanelli to Swansea, £624 (5.4%)

:: Bangor to Llandudno, £1,140 (5.2%)

:: Ludlow to Hereford, £1,992 (5.3%)

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'Fears For 5,000 Comet Jobs Before Christmas'

Comet's staff have been informed they could be made redundant before Christmas amid plans to close stores by December 18, according to reports.

If a buyer is not found for the embattled retailer - which called in the administrators earlier this month - some 5,000 jobs could go, The Sun said.

The paper also reported that a memo reveals Comet's distribution centre in Harlow, Essex, will close at the end of the week.

It comes as entrepreneur Clive Coombes prepares for talks with the administrator about buying 180 of Comet's stores, The Sun said.

But Deloitte said the "chances of an acceptable offer" from the business-turnaround specialist are slim, The Sun added.

The administrator told the newspaper it has to "begin taking the necessary steps to best realise the remaining stock and exit from all the remaining stores".

Deloitte told Sky News it would release an update on Comet this morning.

Since it was appointed to work for the electricals chain, some 1,500 jobs have already been axed.

It is continuing to search for a buyer for the business, but has so far failed to clinch a rescue deal.

Last week, the entrepreneur behind Appliances Online confirmed he had tabled a bid for Comet's web-based operations.

John Roberts said he had put in a "seven-figure offer" for Comet's website - although if accepted, the deal would see the business disappear from the UK's high streets.

Deloitte was not available for comment.

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Eurozone And IMF Reach Greece Debt Deal

Eurozone finance ministers and the International Monetary Fund have reached an agreement on Greek debt, which paves the way for the release of much-needed loans.

After nearly 10 hours of talks, it was agreed that the country's public debt should fall to 124% of GDP in 2020 through a package of extra debt cutting measures.

The deal emerged in Brussels after a meeting of finance ministers from the 17 eurozone countries, the European Central Bank and the IMF on how to make Greek debt sustainable - their third meeting on the issue in as many weeks.

"It's going very slow, but we have financing and a Debt Sustainability Analysis. We've filled the financing gap until the end of programme in 2014," one official said, adding that talks on the details of the debt cutting measures with the IMF were still ongoing.

The deal is a breakthrough towards releasing the next tranche of loans to Greece after its 31.2bn (£25bn) aid package was suspended in the summer over concerns it was not meeting the conditions of its bailout programme.

The Greek finance minister Yannis Stournaras said earlier that Athens had fulfilled its part of the deal by enacting tough austerity measures and economic reforms, and it was now up to the lenders to do their part.

The IMF has said Greece's debt as a proportion of GDP must be cut to around 120% by 2020, from a forecast 190% next year, for it to be manageable in the long term.

It was not immediately clear how the debt would be reduced from its currently forecast level of 144% in 2020 to the target, but it is expected to involve a series of measures including the lowering of interest rate on loans to Greece.

Last week Greek Prime Minister Antonis Samaras criticised the failure to deliver bailout funds to Athens after 12 hours of emergency talks among the eurozone finance ministers and representatives of the troika of lenders had ended without agreement.

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Govt 'Failing On Its Key Environmental Pledges'

The Government is failing on its key environmental targets, including action on flooding, according to a report by leading charities.

Ministers are failing to improve flood defences and prevent unnecessary building in areas at high risk of flooding, it found.

The Nature Check report comes amid a spate of bad weather across the country, with a week of torrential rain resulting in widespread flooding in the South West, the Midlands, Wales and Northern England.

Experts warned not enough money is being spent on flood defences and called for a greater alignment between flood management and other policies such as protecting nature.

They also called for a halt to building on flood plains, unless vital and approved by the Environment Agency.

The traffic light assessment by Wildlife and Countryside Link, which includes 38 groups, also gave the Government a "red" for failing to introduce a carefully managed and science-led badger control policy to tackle TB in cattle and to bring in a ban on wild animals in circuses.

Two badger cull pilots have been delayed until next summer because of costs

The Government was also judged to have failed on its pledge to ensure marine conservation measures were brought in.

The report found the Government was only fully delivering on two international-focused commitments: to oppose the resumption of commercial whaling and pressing for a ban on ivory sales.

The remaining pledges scored an amber grade, including action to protect wildlife and promote green spaces, to reform the water industry to improve competition and conservation and maintain the green belt.

Progress on reviewing the direction of forestry and woodland policy, creating a presumption in favour of sustainable development in planning and reforming the planning system to give more control to communities were commended.

But environmental and wildlife groups warned that without renewed political will and action, the Government was in danger of slipping backwards again.

A sell-off of state-owned woodland was abandoned last year

Only 17% of people polled for the organisations said they thought the Coalition was the "greenest government ever", as pledged by Prime Minister David Cameron when he came to power in 2010.

Dr Elaine King, director of Link, said: "The Government lags behind public opinion on the environment, as the attempt to sell off our forests demonstrated. It needs to catch up.

"A healthy environment - and the public benefits it brings - is a critical part of everyone's quality of life, not an optional add-on.

"The Government's continued use of rhetoric that promotes growth over the environment is a worrying sign that the fragile progress made so far may not last.

"We want to see the Government recognise the value of nature and ensure that all departments recognise that the natural environment underpins sustainable growth."

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Apprenticeships: Call For 'High Quality' Schemes

Urgent reform of the Government's apprenticeship programme is needed for it to succeed, according to a new report.

Its author, entrepreneur and former Dragons' Den star Doug Richard, said the quality of apprenticeships needed improving to deliver the skills and qualifications of "tangible value" to workers and employers.

He recommended the introduction of a new work-based programme to support entry into employment, to replace Level 2 apprenticeships.

Mr Richard also suggested apprenticeships should be redefined, with one qualification for each occupation, while everyone on a programme should reach a good level in English and Maths.

The founder of School for Startups, said: "With the myriad of learning experiences which are currently labelled as apprenticeships, we risk losing sight of the core features of what makes apprenticeships work.

"My conclusion is that we need to look again at what it means to be an apprentice and what it means to offer an apprenticeship as an employer.

"Apprenticeships need to be high quality training with serious kudos and tangible value both to the apprentice and the employer.

"I want to hear about an 18-year-old who looked at their options and turned down a place at Oxbridge to take up an apprenticeship if that is the right path for them and I want to hear that their parents were thrilled."

Education Secretary Michael Gove said: "We must raise the bar on apprenticeships if we are to have a programme fit for the future.

"It is vital that the qualifications and assessment involved in every apprenticeship are rigorous, trusted, and give employers confidence in the ability of their apprentices."

Steve Radley, director of policy at EEF, the manufacturers' organisation, said: "The challenges we face in the coming decades are enormous and only a revolution in ambitions and approach to apprenticeships will ensure that we meet them."

The Richard Review - an independent review into the future of apprenticeships - was launched last June.

Ministers said they will respond to the recommendations in the New Year.

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Too Many Transport Schemes 'Stuck In Slow Lane'

Too many transport projects crucial to business growth are being sidelined by the Government, the British Chambers of Commerce says.

Of 13 key projects identified as vital before the 2010 general election, just three are going ahead, with two having some funding committed and eight delayed, cancelled or under consideration.

BCC director of policy Dr Adam Marshall told Sky News that bold action was needed from the Government to improve transport infrastructure.

"We need to see projects delivered with some pace and some urgency," he said.

"We know there are limited resources available but business can deliver growth and jobs if it has the transport infrastructure it needs."

Crossrail construction at Moorgate station in London

The three BCC-earmarked projects going ahead are:

:: Birmingham Motorway Scheme - Variable speed limits and cars using hard shoulder on M5, M6, M40 and M42, with work due to be completed in spring 2014

:: Forth Replacement Crossing: A replacement for the deteriorating existing road bridge was given the go ahead by the Scottish Government and Transport for Scotland in January 2011 and will be complete by 2016

:: Crossrail, London: The cross-London rail link is well under way and expected to be fully operational in 2019, improving capacity across the capital.

The BCC said it had awarded an "amber light" to two projects where some funding had been committed and a planning process was under way, but there was no date for final delivery.

One of these was the so-called Northern Hub rail improvement scheme to deliver £4bn of benefits to the economy of northern England.

The BCC said the Government committed to the scheme in summer 2012, that planning was still in the very early stages and delivery of all projects was uncertain, "but there have been confident steps forward in recent months".

The other "amber" scheme was the A453 widening from the M1 junction 24 to the A52 at Nottingham in the East Midlands.

The M4 relief road scheme in Wales has been given a red light

The BCC said construction was due to start in 2013 following a Government commitment to the project, but "more concrete steps need to be taken to push the project to its conclusion".

The rest of the 13 projects received the BCC "red" signal, including the scrapped third runway plan at Heathrow airport in west London and the delayed A14 road improvement scheme in East Anglia.

Others given a red light included the Cardiff-Newport M4 relief road scheme in Wales, the M1 Westlink project in Northern Ireland, the A19 improvement work around the Tyne Tunnel in north east England and the A303/A358 road improvement scheme to improve links to southwest England.

The BCC said: "While the Government has taken important steps to boost infrastructure funding and delivery since the first Budget, the updated assessment shows that too many transport projects, which are crucial to business growth, are stuck in the slow lane."

But Transport Minister Norman Baker insisted the issue was a "top priority" for the Government.

He said: "That is why, despite the economic challenges we face, we have committed to building HS2, a hugely ambitious infrastructure project which will support and sustain long-term growth across the whole country.

"In addition, our massive programme of investment - the biggest since the 19th Century - in the current railway system includes substantial investment to increase capacity on the East Coast Main Line over the next two years as well as £240m for the industry to spend on the route between 2014 and 2019.

"This is on top of the £1.8bn we are spending on local major transport projects and the £3bn we are providing to start work on 20 major road schemes and to complete work on another eight between 2010 and 2015."

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UBS Fined £29m Over London Rogue Trader

The City watchdog has fined Swiss investment bank UBS £29.7m over the biggest fraud in British history.

The Financial Services Authority (FSA) fined the bank for system and control failings within its corporate structure that allowed London rogue trader Kweku Adoboli to cause £1.4bn losses through unauthorised trading.

The FSA originally fined UBS £42.4m but discounted the penalty for early settlement.

At one point, Adoboli had stood to run up losses of £7.5bn for his employer.

The FSA said in a statement: "The systems and controls failings revealed serious weaknesses in the firm's procedures, management systems and internal controls."

In a damning judgment of UBS' internal controls, the FSA said the bank's computerised risk management system was "not effective".

UBS boss Oswald Gruebel resigned over the massive fraud

It said Adoboli exploited "significant deficiencies" in the disparate trading system to conceal his unauthorised trades.

The FSA said Adoboli's actions on the Exchange Traded Funds Desk (ETFD) were helped by a culture of support sections working on the principle of efficiency and not risk management.

The Global Synthetic Equities (GSE) division was responsible for managing the ETFD.

The FSA said "the supervision arrangements within GSE were poorly executed and ineffective".

UBS was fined 15% of the revenue of the GSE division by the FSA.

Tracey McDermott, FSA director of enforcement and financial crime, said: "UBS' systems and controls were seriously defective.

"UBS failed to question the increasing revenue of the desk and failed to ensure that there was a corresponding increase in the controls in place over the desk.

"As a result Adoboli, a relatively junior trader, was allowed to take vast and risky market positions, and UBS failed to manage the risks around that properly.

Kweku Adoboli was jailed for seven years over the fraud

"Failures of this type in firms of the size and standing of UBS not only damage the firms concerned but also wider confidence in the integrity of the markets and the financial system.

"It is imperative that the markets we regulate are seen by investors to be orderly and a safe place to do business."

Last week Adoboli, 32, was found guilty - he admitted to the bad trades, but denied any wrongdoing.

He was sentenced to seven years for one count of fraud and four years for the other, to be served concurrently.

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'Austerity Era Could Last Up To Eight Years'

A key financial target of the Chancellor's Autumn Statement next week may have to be abandoned, according to a leading think tank.

The Institute for Fiscal Studies (IFS) has said that the target that debt should be falling in the 2015-16 tax year may be too difficult to achieve.

The IFS added that George Osborne may even be forced to announce yet more spending cuts or tax increases for the next Parliament in order to meet his other fiscal targets.

Mr Osborne will reveal his Autumn Statement on December 5. It is expected to provide an update on the Government's plans for the economy based on the latest forecasts from the Office for Budget Responsibility (OBR).

The latest OBR forecasts will be published alongside the Chancellor's Autumn Statement.

According to independent forecasters, the OBR will take into account a weaker outlook for the UK economy and concern over tax revenues during the last seven months.

The issue of corporation tax has become a hot political issue in the last two weeks after it emerged major US multinationals such as Google, Amazon and Starbucks greatly restrict their tax liability through complex offshore structures.

The angry backlash was prompted by the revelation that Starbucks has only paid £8.6m UK corporation tax in the past 13 years, on sales of £3.1bn.

The IFS said that if the trend for borrowing so far this year persists for the remainder of the year, public debt borrowing in 2012-13 would total £133bn.

The era of austerity could run for eight more years, according to the IFS

Excluding the one-off impact of the transfer of assets from the Royal Mail Pension Plan, the borrowing figure would be £13bn higher than forecast by the OBR.

This would mean that underlying borrowing rose between 2011-12 and 2012-13 rather than fell as the Chancellor had intended.

This £13bn overshoot in borrowing arises from an estimated shortfall in receipts of £17bn, offset partially by a £4bn underspend by Whitehall departments.

IFS deputy director Carl Emmerson, said: "Since the budget, the outlook for the UK economy has deteriorated and Government receipts have disappointed by even more than this year's weak growth would normally suggest.

"If much of the additional weakness this year feeds into a permanently higher outlook for borrowing, the planned era of austerity could run for eight years - from 2010/11 to 2017/18."

TUC general secretary Brendan Barber reacted angrily to the IFS prediction. "This analysis shows that the Chancellor's economic strategy is failing on all counts," he said.

"The UK should be on the road to recovery by now. Instead we could be set for a prolonged period of debilitating austerity well beyond the next election.

"The Chancellor should use his Autumn Statement next week to change course. Sadly he looks set to drive the economy even faster in the wrong direction."

IFS researchers will present their analysis at a briefing the following day, Thursday, December 6.

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'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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