US Jobless Rate At July 2008 Low Of 5.8%

The US jobless rate has hit its lowest level since July 2008, with the economy creating 214,000 net new jobs in October.

The fall in the rate from 5.9% in September was unexpected - and highlighted some greater resilience in the labour market as more people joined the workforce.

The data was released just three days after voters, frustrated by the economy, gave President Barack Obama a kicking in the midterm elections.

Economists polled by Reuters had forecast 231,000 new jobs last month but the performance meant that job growth, following revisions, has now exceeded 200,000 in each of the last nine months, sufficient strength to keep the economy on a higher growth path.

It expanded at an annualised rate of 3.5% in the third quarter, despite early signs of weaker global demand.

The market focus was on wages, in addition to the core job numbers, as employment gains on their own will probably not be enough to convince the Federal Reserve to start raising interest rates before the second half of 2015.

Kept at near-zero since December 2008, economists expect the Fed will want to see real evidence of rising wages before raising rates so not to risk choking off economic recovery.

The Labor Department data said average hourly earnings rose only three cents last month, leaving the year-on-year change below pre-recession levels at 2%.

The participation rate, or the share of working-age Americans who are employed or at least looking for a job, increased to 62.8% while the employment-to-population ratio also rose to its highest level since 2009.

World stock markets barely moved in reaction to the figures - seen as a crucial indicator of US economic strength - with the data doing little to alter rate rise forecasts.

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Royal Mail In Stand-Off Over MPs' Inquiry

By Mark Kleinman, City Editor

Royal Mail has been secretly resisting pressure from MPs for it to appear alongside rival postal operators as part of a new probe into competition in the industry.

Sky News has learnt that Royal Mail made representations to the Business, Innovation and Skills (BIS) Select Committee requesting that it should not be forced to give evidence during the sale session as Whistl and UK Mail.

Sources said that Moya Greene, Royal Mail's chief executive, would appear before the Committee on 26 November, adding that the MPs had refused to bow to the company's desire for it to appear separately.

Royal Mail boss Moya Greene is due to appear before the BIS committee

The row is the latest development in Royal Mail's efforts to persuade politicians and regulators to commit to reforms that it says are necessary to protect the Universal Service Obligation (USO), which obliges it to deliver to every UK address for a fixed price.

"This decision might make good theatre but it won't make for good analysis of the issues," a source said on Friday.

The BIS Committee announced the launch of its inquiry in September following complaints from the privatised Royal Mail that its ability to meet its USO obligations is being undermined by the expansion plans of Whistl, the rebranded TNT Post.

Sky News also understands that Dave Ward, a senior official at the CWU union, has also been asked to appear before MPs this month, while Ed Richards, Ofcom chief executive, will give evidence in early December.

The hearings will mark the latest phase of an intensive period of lobbying by Ms Greene, who has been vocal in her criticism of the industry's regulatory regime.

Last month, she and her chairman, Donald Brydon, attended an Ofcom board meeting to warn that a review of postal markets planned for the end of next year must be accelerated to safeguard the USO.

Since listing on the stock market as part of its contentious £3.3bn privatisation last year, Ms Greene has complained that Whistl's expansion plans could cost Royal Mail £200m in lost revenue by 2017.

Ofcom is expected to decide whether to bring forward its assessment shortly.

Reiterating previous statements on the issue, a spokesman for the regulator said: "Protecting the universal service is at the heart of Ofcom's work, and our own evidence clearly shows that the service is not currently under threat.

"We are listening to the views of Royal Mail and other parties regarding competition in the market. We would assess any emerging threat to the service quickly, in the interests of postal users."

Royal Mail's shares have had a bumpy ride since last autumn's sale by the Government.

They initially surged, leading to accusations that Vince Cable, the Business Secretary, had cost the taxpayer £1bn by underpricing them.

However, the UK regulatory framework, an impending financial settlement with French competition authorities and the growing impact of greater competition - exemplified by Amazon UK's recent launch of a same-day delivery service - have weighed on Royal Mail shares in recent months.

On Friday, they were trading at just over 462p, down 20% during the last 12 months but exactly 40% higher than the price at which they floated last year.

Taxpayers continue to own 30% of Royal Mail, although there is little prospect of a sale of the remaining shares ahead of next year's General Election.

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PM Trying To 'Fool' Public Over EU Surcharge

The Prime Minister has been accused of "trying to take the British people for fools" for claiming the UK has managed to wrangle a 50% reduction on the £1.7bn EU surcharge.

Chancellor George Osborne said Britain would now pay the European Union just £850m of the original demand.

Mr Cameron described it as a victory for Britain and praised the Chancellor for securing the deal.

But shadow chancellor Ed Balls claimed the deal had not saved the UK "a single penny" and accused the pair of "trying to take the British people for fools".

"By counting the rebate Britain was due anyway, they are desperately trying to claim that the backdated bill for £1.7bn has somehow been halved," he said.

Video: Has Surcharge Really Been Halved?

"But nobody will fall for this smoke and mirrors."

The demand was made by Brussels after a recalculation of Britain's gross national income in relation to other EU states.

Mr Osborne said the deal, struck after meeting finance ministers in Brussels, was "far beyond what anyone expected us to achieve".

He said it meant the bill would be paid in two interest-free instalments after next year's election.

"Instead of footing the bill we have halved the bill, we have delayed the bill, we will pay no interest on the bill and if there are any mistakes in the bill we will get our money back," he said.

Video: Cameron: 'Good News' On EU Bill

But political opponents, including UKIP, claimed the reduction had been achieved only by bringing forward a rebate to which the UK would have been entitled anyway.

UKIP leader Nigel Farage wrote on Twitter: "Osborne trying to spin his way out of disaster. UK still paying full £1.7 billion, his credibility is about to nose dive."

Sky's Europe Correspondent Robert Nisbet said it appeared the EU would still get the full £1.7bn as a result of what he said some would call "clever accounting".

"Next year there will be two instalments that will equal £850m that will be paid to Brussels by the UK and it will get its rebate in full. So far, so good," explained Nisbet.

"But what will happen in 2016 is that an extra rebate based on increased VAT receipts will be used to settle the rest of the bill.

Video: Migrant Movements 'Not Unqualified'

"That allows the EU to claim it's getting its money, the UK to claim it's negotiated a great deal for Britain and for opposition parties to cry foul."

A Number 10 source insisted there was "no guarantee the rebate would have applied to this" before the deal was struck, and added: "Our view is that this is a very good deal."

However, Conservative MEP Daniel Hannan suggested the devil was in the detail, saying: "The EU sticks us with a bill. Ministers double it, apply the rebate, return to the original figure and claim victory. We're meant to cheer?

"Britain is worse off in absolute terms, but a straw man has been knocked down. A prelude to how the pro-EU side will fight the referendum."

Mr Osborne said EU rules would now be changed forever "so this never happens again", claiming he had got his counterparts to agree to change the system for calculating adjustments to member states' contributions.

Video: How Is The UK Seen In Europe?

The PM had earlier warned there would be a "major problem" if Brussels insisted on Britain paying the bill in full.

Mr Cameron went on the offensive after a meeting with other European leaders in Finland, saying Britain would not pay "anything like" the full amount ahead of a looming 1 December deadline.

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PM To Warn EU Leaders Over £1.7bn Demand

By Darren McCaffrey, Sky News Politics Reporter

The scale and timetable of Britain's proposed £1.7bn extra contribution to the European Union is unacceptable, both David Cameron and George Osborne will tell EU leaders today.

The Chancellor, who is attending a meeting of Economic and Financial Affairs Council (ECOFIN) ministers in Brussels, will start negotiations with the intention of delaying and reducing what the UK should pay.

Speaking before the meeting, Mr Osborne said the demand is "unacceptable", and pledged to "get a better deal for Britain".

Meanwhile, Mr Cameron, at a meeting of northern European leaders in Helsinki, is trying to gain support for Britain's position with the message that it is the UK this time - but could be another country next.

The meeting is part of a two-day summit of Scandinavian and Baltic state leaders called the Northern Future Forum.

Video: PM: £1.7bn EU Surcharge 'Appalling'

The primary aim is to promote growth and economic reform throughout Europe, but Downing Street is clear the Prime Minister will be raising other issues such as budget control and migration.

Mr Cameron's hopes of winning allies in his attempt to curb internal migration within the EU have been met with strong resistance from other European leaders, including hosts Finland.

Finnish leader Alexander Stubb told the Financial Times: "We need to understand what the UK wants, and the UK needs to learn where are the limits of other member states.

"Whether some kind of arrangement can be found, I don't know.

Video: PM Defiant Over £1.7bn EU Bill

"But to start putting restrictions on free movement in one way or another I would find quite difficult."

Sweden and Germany's opposition to migration reform have made the Prime Minister's task very difficult.

But Mr Osborne may have more success with the surcharge.

There are suggestions Brussels may be willing to allow interest-free instalments rather than the UK having to pay the full amount on 1 December.

Video: EC Chief: £1.7bn UK Surcharge Fair

Former cabinet minister Ken Clarke said a lot of the anger over the bill is "synthetic", and pointed out that the UK had accepted rebates in previous years when the calculations worked out in its favour.

He told BBC Radio 4's Today programme it is "quite reasonable" for the PM to say he would not pay the full amount, but warned the Government should not default on its debts.

The Labour Party has piled on the pressure, with Ed Balls and Douglas Alexander saying "the Government must have all eyes on the detail of the deal being discussed, not looking back over their shoulders at the Eurosceptic backbenchers who still seem to be pulling the strings".

A programme of instalments will not go far enough for the UK, but could be the start of a process allowing for an acceptable agreement that Mr Cameron can sell to his party and the country.

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Canary Wharf Owner Rejects Takeover Proposal

The owner of Canary Wharf in London has rejected a takeover proposal that could have yielded the country's biggest property deal in years.

Songbird Estates - the majority owner of the sprawling financial area, including the headquarters for HSBC and Barclays - said the joint offer by the Qatar Investment Authority and US investor Brookfield Property Partners undervalued the business.

The Qatar fund, which already has a 29% stake in Songbird, is looking to capitalise on a strong commercial property market.

Its other property interests in London include The Shard, the tallest skyscraper in western Europe.

The offer represented a price of 295p-per-share - below Thursday night's close of 320p which gave it a market value of £2.3bn.

Canary Wharf is on Crossrail's stops when services begin in 2018

Songbird said on Friday: "The board of Songbird has reviewed the proposal with its advisers and has unanimously concluded to reject the proposal on the grounds that it materially undervalues Songbird.

Chairman David Pritchard added: "This proposal significantly undervalues Songbird and does not reflect the inherent value of the business and its underlying assets.

"The group has an exceptional management team with a clear vision to deliver additional shareholder value, including from our 11 million square foot development pipeline, the largest in London."

Canary Wharf - once the powerhouse for London's shipping trade - is currently home to a working population of more than 100,000 people.

In addition to the headquarters of Barclays and HSBC, it is also the European home to other major banks, including Citi.

The estate is on track to secure its first residential development while Crossrail, the planned link between east London and Reading via Heathrow, will also serve Canary Wharf and it set to also add considerable value to the estate.

The tunnels for Crossrail needed in Docklands were completed two weeks ago.

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Box Office Magic For Disney As Profits Surge

Walt Disney's movie releases have been credited with driving a surge in profits during the entertainment firm's fourth quarter.

The success of animated tale Frozen and Marvel movie Guardians of the Galaxy helped revenue surpass expectations, rising 7% to $12.39bn (£7.82bn), ahead of market expectations.

Profits for the period rose 8% to $1.5bn with merchandise sales from Frozen - the biggest-grossing animation - aiding the performance.

Following the release of the results, Disney chief executive Bob Iger said that the company's movie and TV offerings were helping it compete in a "new golden age for content".

The Walt Disney Studios business has had a string of hits that is likely to continue with the first of its new Star Wars movies launching next year, titled The Force Awakens.

Disney has released five Marvel franchise movies

The company also announced on Thursday that Toy Story 4 will hit cinemas in 2017, directed by John Lasseter, who created the blockbuster franchise and directed the first two movies.

Mr Iger said the five Marvel movies that Disney has released since acquiring the brand in 2009 have averaged $1bn in global box office receipts.

Disney Studios had the strongest results among the media company's divisions, with revenue climbing 18% to $1.78bn.

Revenue from media and cable networks rose 5% while parks and resorts enjoyed growth of 7% to $4bn.

Disney's market value, which has almost doubled in two years, fell back slightly from a record high after the results were posted.

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Petrol Price Guarantees Demanded By Treasury

A failure by petrol firms and supermarkets to pass on the full benefit of falling oil prices to customers filling up at the pumps would be an "outrage", a Cabinet Minister will warn.

Treasury Chief Secretary Danny Alexander is to demand guarantees from fuel companies and distributors that they are doing all they can to pass on the price cuts to hard-pressed motorists.

Danny Alexander is seeking assurances on petrol prices

Mr Alexander will use a speech in Aberdeen to say consumers feel petrol prices rise "like a rocket" when oil costs go up, but fall "like a feather" when they come down.

And people would "rightly be angry" if they felt prices were not coming down as much as they should.

Video: 'We Still Pay Too Much For Fuel'

Brent crude slumped as low as $82 (£51) a barrel earlier this week, its lowest level in just over four years due to concerns about over-supply.

The Liberal Democrat frontbencher will say: "Especially in the current economic circumstances people would rightly be angry if they feel that pump prices don't fall as much as they should on the back of falling oil prices.

"I believe it's called the rocket and feather effect.

"The public have a suspicion that when the price of oil rises, pump prices go up like a rocket.

"But when the price of oil falls, pump prices drift down like a feather."

However, investigations into the failure to pass on the fall in the price of oil has been inconclusive.

Mr Alexander is to write to the industry's major players "seeking their assurance that they are doing all they can to pass on the benefit of falling oil prices as quickly as possible".

He will say: "When the price of oil falls, the public have a right to expect pump prices to fall like a stone, not a feather."

Video: Cuts: A Loss Leader Or Real Deal?

However, motoring organisations were quick to say there was more then Government could do that just put pressure on oil firms.

RAC Foundation director Professor Stephen Glaister said: "It is encouraging that Mr Alexander shares the concerns of the nation's drivers but in a way he is passing the buck.

"The biggest driver of pump prices remains the Government. Well over 60% of the price is tax."

AA president Edmund King said: "They themselves could do more.

"First, policies to help strengthen the pound by just 10 cents against the dollar would double the potential for a 2p-a-litre fall in the price of petrol to 4p.

"Secondly, the Government's failure to introduce fuel price transparency, showing the relationship between oil, wholesale and pump prices, has helped no one."

Shadow chief secretary to the Treasury Chris Leslie said: "Of course it's right that drivers should benefit from falling oil prices with lower prices at the pumps.

"But since 2011 people have paid 3p more on every litre of petrol because the Lib Dems broke their promise and backed the Tories in raising VAT."

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Banking Industry Competition Probe Ordered

Regulators have ordered a full market inquiry into banks over fears the dominance of the largest lenders is stifling competition.

The Competition and Markets Authority (CMA) said its investigation would scrutinise the personal current account and small business  retail banking sectors.

Sky News reported on Tuesday night how major banks had called off their efforts to stall the inquiry.

The UK's four largest banks, Lloyds, RBS, Barclays, and HSBC collectively supply 77% of personal current accounts in the UK - a market worth £8bn.

The 'Big Four' also control about 85% of all small and medium-sized business accounts, an industry worth another £2bn.

Video: 'Retail Banking Isn't Working'

The CMA said there has been "very little movement" in their collective market share as the level of customers shopping around and switching current accounts is "low".

It blamed limited transparency in the sector and had previously suggested a banking comparison website as a first step to improving transparency and aid competition.

Challenger banks, such as Metro Bank and supermarket lenders, have grown their customer bases but failed to make the impact that had been hoped for to aid lending to small firms in particular.

The seven-day switch initiative - to ease the amount of time customers would have to wait to change bank - has helped grow numbers changing their lender.

The spin-off of TSB from Lloyds and the looming flotation of Virgin Money may also help boost competition.

But the CMA said it was concerned about continuing barriers of entry and expansion in the banking sector, which limit the ability of smaller and newer providers to develop their businesses.

The investigation is tipped to take up to two years to complete.

The chief executive of the bank industry group the BBA, Anthony Browne, said of the probe: "All the banks will co-operate fully with any investigation.

"There are already substantial changes currently underway across the banking industry to strengthen competition, which improves choice and service for customers.

"Banks are pro-competition - they compete for business every day.

"This summer we published a series of ideas to help new banks set up and smaller players to grow. We hope these suggestions will be taken up by regulators and politicians."

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Morrisons Sales Slump 6.3% In Third Quarter

Morrisons has reported another big fall in sales as the supermarket sector scraps for market share amid the challenge from discounters.

The grocer posted a 6.3% drop in like-for-like sales in its third quarter to 2 November - a figure that hit 8% when the effects of fuel sales were included.

Morrisons said competition in the sector remained "intense" and it would take time for its pricing initiatives to help sales recover.

As part of a wider plan announced in March to invest £1bn in price cuts over three years, the company recently launched a new loyalty card scheme which promises to match prices at the hard discounters Aldi and Lidl.

There have been signs that the strategy is starting to pay off after closely-watched data from Kantar Worldpanel pointed to an improved sales trend.

Chief executive Dalton Philips said today: "Morrisons is meeting the challenges created by a period of intense industry competition and structural change with quick and decisive action."

He insisted the initiatives designed to help the chain recapture market share were showing some encouraging signs.

The like-for-like sales drop for the third quarter did represent an improvement on the 7.4% drop Morrisons endured in the previous six-month period.

The group, which trails market leader Tesco, Asda and Sainsbury's in annual sales, said it remained confident in its full year 2014-15 profit outlook.

It now expects underlying profit before tax to be in the narrower range of £335m-£365m versus previous guidance of £325m-£375m.

Such a performance would represent a halving of profit on the previous financial year.

The Morrisons share price rose 2% in early trading on the FTSE 100, with investors apparently encouraged by improving trends.

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Primark Posts 'Magnificent' 30% Profit Rise

The chairman of Primark's owner has hailed a "magnificent" year for the discount clothing retailer, with profits rising 30% to £662m.

Associated British Foods (ABF) said the performances of its fashion and grocery divisions offset the adverse impact of lower prices in its sugars business, helping the group to achieve annual profits growth of 6% in the year to 13 September.

It also confirmed that Primark was shrugging off the effects of the current warm autumn weather, which has prompted rivals including Next to warn on profits, with sales for the first six weeks of its new financial year up 10%.

Annual sales at Primark, which now operates in nine countries, were 17% ahead of last year.

The results statement said: "This excellent result was driven by an increase in retail selling space, like-for-like sales growth of 4%, and superior sales densities in the new stores.

Primark opened its first French store in April

"The year was characterised by success for our autumn/winter and spring/summer ranges.

"Sales over the Christmas period were excellent and were boosted in the third quarter by warm weather, especially in the spring and early summer.

"We began trading in France in December last year and sales across all five stores have been exceptional.

"Eight years on from our initial entry into Iberia, this year's like-for-like growth achieved by our Spanish stores was particularly strong."

ABF chairman Charles Sinclair added: "We recently announced that the next new market would be in the north-east of the US, with the first stores expected to open late in 2015 and with up to 10 stores by the end of 2016."

Almost 400 people were killed in the Rana Plaza collapse

Primark also confirmed it had committed a total $12m (£7.5m) in compensation and other support to workers and families of the victims following the collapse of the Rana Plaza factory in Bangladesh last year.

The retailer said that while most of its Rana Plaza staff were making garments for its competitors when the building collapsed, it was "committed to meeting its responsibilities in full and to paying long-term compensation to the workers employed by its supplier or their dependants".

"The safety of the staff employed by our suppliers is a high priority," Primark said.

"We have now undertaken structural assessments of all of our supplier factories in Bangladesh.

"We further strengthened our in-country teams of ethical trading specialists who are critical in supporting sustainable improvements within supplier factories, and providing greater visibility across the supply chain.

"We conducted 2,058 audits in the last calendar year, and ethical trade training continues to be provided to every new Primark employee," the company added.

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Holiday Pay Ruling Threatens Big Business Bill

By Poppy Trowbridge, Consumer Affairs Correspondent

Businesses could face a big bill for backdated holiday pay if a ruling by the Employment Appeals Tribunal, the UK's top employment law court, goes against them.

The cases before the tribunal involve two engineering companies, Hertel and Bear Scotland.

Workers for these companies claim their holiday pay was less than it should have been because their employers did not factor in voluntary overtime completed in the period prior to time off.

Holiday pay is averaged from the basic wage ahead of the time off and currently does not include what is earned in overtime, or commission.

A case being heard later in the year will look at whether commission should also be factored into rates of holiday pay.

The issue could be tied up in European and UK courts for years to come, but some of the high streets bigger business names have begun to prepare for a payout.

John Lewis reviewed its policies this summer, and set aside £40m to reimburse workers.

The Department for Business says voluntary overtime should not be included in holiday pay and it recognises the potential impact on employers.

"We understand the deep concern felt by many employers and have intervened in the Employment Appeal Tribunal cases to make our views clear," a spokesperson said.

Business groups are calling on the Prime Minister to make this employment policy a priority.

Employers are worried about the cost of backdating the ruling to 1998 - when Brussels put in employment restrictions.

Simon Walker from the Institute of Directors, said: "The holiday pay timebomb could have a hugely detrimental impact on businesses up and down the country.

"It is not an exaggeration to say that some small businesses could end up being wiped out if employers, who have acted compliantly and in good faith, face underpayment claims backdated as far as 1998."

The EU's Working Time Directive took effect in 1998.

Employment solicitor, Jessica Learmond-Criqui, said: "If one wants to be a good employer and is using good practice, one would want to be collaborative with employees and reach some sort of agreement to settle any back claims so that you've got certainty, because certainty is so important for business."

Barry Smith, legal officer of the GMB union, said: "We hope the ruling will clarify the elements to be included in the calculation of holiday pay.

"For many workers, overtime, shift payments, unsociable hours payments and other allowances are currently excluded from their holiday pay and they should be included."

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Virgin Money Flotation Is Back On Track

Virgin Money has confirmed it will go ahead with its stock market flotation, after postponing the listing last month.

The challenger bank confirmed on Tuesday an earlier report by Sky News that it was now satisfied market conditions had settled amid volatility last month on global economic growth worries.

The company, backed by Sir Richard Branson, plans to raise around £150m from the sale of new shares, valuing the firm at up to £2bn.

Virgin Money chief executive Jayne-Anne Gadhia said in a statement that new Bank of England leverage rules set out last week had provided clarity for the UK banking sector, meaning the time was right to push ahead.

She said: "Given this and given more stable market conditions, we now plan to move forward with our IPO (Initial Public Offering) with the aim of being admitted by the end of November.

Ms Gadhia had previously stated that Virgin Money had performed strongly during its third quarter, winning a 4.5% share of new mortgage applications.

"Looking to the future, we have a powerful brand, a strong balance sheet, a strong core business franchise and considerable opportunities to continue to extend our product range," she said.

Virgin Group and WL Ross, a US-based investment vehicle, collectively own just over 90% of Virgin Money.

Bank of America Merrill Lynch, Barclays, Citi, Goldman Sachs and Keeffe Bruyette & Woods are working on the Virgin Money flotation.

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Ryanair Profit Soar 32% On Higher Fares

No-frills carrier Ryanair has seen half-year profit rise by a third, on the back of fare increases and being "nicer" to passengers.

It said a 5% rise in ticket prices and 4% boost in seat loading were key factors behind the 32% rise in pre-tax profit, to €907.5m (£709m), in the six months to the end of September.

The average fare rose 5% in the period, to €68.95 (£53.90).

Half-year revenue was up 9% to €3,53bn (£2.76bn), with profit after tax rising from €602m (£470m) to €795m (£620m), compared with the same period last year.

Shares were up 8% in early trading as a result of the profit boost.

The airline now expects full-year net profit to would now be around €760m (£595m), compared with its previous forecast of €650m (£510m).

Speaking to Sky's Eamonn Holmes, Ryanair chief executive Michael O'Leary said: "We've had a very strong summer, by keeping fares low and being nicer to our customers."

The company has successfully cut its overheads, improved website offerings and expanded its business passenger options amid its battle against key rivals EasyJet and British Airways, amid an ambitious plan to overhaul its attitude to customers.

Mr O'Leary added: "It's a new-found experience I must admit for me, but if it works this well I wish I'd been nicer to our customers much earlier. It's better late than never.

"We've been listening to our customers in the last 12 months … I think this being nicer to customers is really a new and winning strategy for me and Ryanair."

Mr O'Leary confirmed the airline was considering an entry into the packaged tour market, but downplayed talk of transatlantic routes in the near-term.

He said a lack of long-haul aircraft hampered the idea, but with a big order book for short-haul planes he now expects a near-doubling of annual passenger numbers to 150 million in the next decade.

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Millions To Receive New Tax Payments Summary

Millions of taxpayers will receive a new annual tax payments summary from this week under a scheme introduced by Chancellor George Osborne.

Some 16 million Pay As You Earn (PAYE) taxpayers will receive the summaries in the post, which set out exactly how much they pay into the Exchequer.

Mr Osborne announced the personalised summaries - which will also set out how taxpayers' money is spent - as part of his 2012 Budget.

The statements will be delivered in the post over the next seven weeks.

Eight million people who complete self-assessment returns will also be able to access their statements online.

Mr Osborne said: "I promised that taxpayers would know much more about how much direct tax they pay and how that money is spent.

"Now we're delivering on that promise by giving 24 million taxpayers a new personal tax summary.

"It is a revolution in transparency and it will show how hard-working taxpayers have to pay for what governments spend."

Labour's Shadow Treasury Minister Shabana Mahmood said: "This Government's record on tax is giving millionaires a huge tax cut while everyone else pays more.

"Families and pensioners are paying more in higher VAT, but that tax isn't part of these statements.

"By next year families will be £974 a year worse off because of tax and benefit changes since 2010."

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Thousands To Benefit From Rise In Living Wage

By Katie Spencer, Sky News Reporter

Around 35,000 people are set to benefit from a 20p rise in the UK living wage, but more than five million people are still earning below its hourly basic rate of £7.85.

Care worker Perrine Roland told Sky News about the struggles she used to have "living in poverty" on the national minimum adult wage of £6.50.

She said: "Sometimes, at the end of the month, I wouldn't have enough money for food so I would have to ask people to help me."

Today her current employer, Penrose Care, pays her the living wage, one of more than 1,000 employers to adopt the voluntary rate.

"Now I'm living in a very nice house share. I have my own room and it's really improved my standard of living," she said.

The living wage is now set at £7.85 an hour in the UK outside London - significantly higher than the minimum wage of £6.50 an hour for those over 21 and £5.13 for those aged 18 to 20. A new living wage rate for London is to be set later today.

While the minimum wage is legally enforceable, the living wage shows the minimum pay rates workers need to lead a decent life.

The living wage is currently calculated by the Centre for Research in Social Policy at Loughborough University, while the London living wage has been calculated by the GLA since 2005.

Robert Stephenson-Padron, the managing director of Penrose Care, says his company's decision to adopt the wage is about "respecting the humanity of our workers".

He insists there are benefits for both employee and employer.

"We've had extremely low staff turnover, we've got exceptional care workers, and that's really flowed through into the quality of care we provide."

The number of companies signed up to pay the living wage has more than doubled this year. It includes firms like Google, Barclays and food giant Nestle.

Campaigners have targeted chains like Ritzy Cinema, Tesco and Amazon for not signing up.

Bex Hay, from Amazon Anonymous, believes employers must face up to how people are struggling.

"A lot of workers talk about earning 1p over the minimum wage," she told Sky News.

"That doesn't allow them to meet costs of raising family, paying rent and all their bills. They have to work a lot of overtime, lots of seven days a week, long hours, it's demoralising and degrading."

The argument from small businesses is that, given the UK's sluggish economy, they would struggle to pay more than the minimum wage of £6.50 an hour.

However, campaigners are adamant that figure no longer reflects the real cost of living.

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RBS Grows Profit But Sets Aside Further £780m

Royal Bank of Scotland (RBS) has set aside a further £780m to cover the costs of conduct issues, including the PPI mis-selling scandal.

The news was released alongside its third-quarter results which demonstrated that the bank's recovery was continuing to build despite the burden of extra provisions for past mistakes.

RBS said it was taking a £400m charge in anticipation of regulatory action over the alleged manipulation of foreign exchange markets - following a similar move by rival Barclays 24-hours earlier.

It added £100m to its bill for PPI - taking the total to £3.3bn - citing "higher than expected reactive complaint volumes."

The bank, which is 80% owned by the taxpayer after its rescue during the financial crisis, said its profits for the third quarter were up to £1.27bn, compared with a loss of £634m in the same period last year.

It is the first time the bank has reported a profit for three quarters in a row since its bailout.

RBS also confirmed it was retaining Ulster Bank following a strategic review of the business.

Chief executive Ross McEwan said: "In February I placed trust at the heart of my new strategy for our bank.

"We have taken the first steps towards that goal, with early progress in making RBS simpler, clearer and fairer.

"We are reducing costs, and are on track to achieve our capital targets.

"UK and Ireland are showing signs of growth, and impairment trends are significantly better than we had anticipated at the start of the year.

"We have confirmed today that Ulster Bank remains a core part of our bank. We have a good market position and believe that, with investment, Ulster Bank can deliver attractive shareholder returns in the future.

"But we know we still have a long list of conduct and litigation issues to deal with and much, much more to do to restore our customers' trust in us."

The RBS share price rose 3% in early trading on the FTSE 100 in the wake of the update.

16.01 | 0 komentar | Read More

BBA: New Oversight Will Hurt Smaller Banks

By Mark Kleinman, City Editor

Smaller lenders would be hit by new rules heralding the world's toughest oversight regime for senior bankers, according to the industry's main City-based lobbying groups.

The warning is contained in a confidential paper submitted on Friday to UK watchdogs ahead of sweeping reforms that will include the threat of seven-year prison terms for directors of failed banks.

In a joint response to the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA), the British Bankers' Association (BBA) and Association for Financial Markets in Europe (AFME) said that smaller banks would suffer disproportionately high costs in order to comply with the new supervisory framework.

"Coupled with the existing funding, capital and payment access disadvantages already suffered, these new overheads will act as a further barrier to small banks which have fewer senior executives amongst whom responsibilities can be shared, reducing their ability to provide challenge and competitive alternatives in the UK retail and small business market," the lobby groups said.

Their submission, a copy of which has been obtained by Sky News, contains several other objections to the FCA and PRA proposals, including:

:: A suggestion that non-executive directors of banks would lose their independence and begin "man-marking" their full-time colleagues if they are covered by the same rules.

The response said: "The proposed regime could potentially alter the current nature of NED and executive director relationships, and impact the current collaborative and challenge-based board decision-making processes as individual NEDs seek to protect against their individual personal liability."

That warning comes weeks after Sky News revealed that two directors of HSBC's UK subsidiary were quitting in protest at the new rules, which will come into effect next year.

:: A concern that the FCA would have jurisdiction over the overseas employees of UK-based banks even when individuals have no direct connection with UK clients or a realistic possibility of causing harm to a UK-regulated firm.

:: A plan to discontinue the current FCA register of banking industry employees should be dropped because it "will have a negative effect on standards across the industry, in part because of a reduction in transparent (for the industry, consumers and regulators) of many individuals' conduct history".

:: Rejecting the idea that chairmen of banks should not be solely responsible for ensuring that whistleblowers are protected from detrimental treatment.

Regulators are likely to be particularly sensitive to the complaint about higher costs being imposed on smaller lenders following efforts led by George Osborne, the Chancellor, and Vince Cable, the Business Secretary, to pave the way for a new group of "challenger banks".

The new framework has emerged in the wake of pressure on regulators to toughen penalties in the wake of the financial crisis and subsequent trading scandals, including Libor and foreign exchange benchmarks.

Six banks are expected to pay well over £1bn to UK regulators alone to settle the forex issues, with an announcement expected next month.

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Energy Bills: UK Gas Prices Hit Record Low

UK wholesale gas prices have hit a record low, piling more pressure on energy firms to explain why household bills have not been slashed.

The latest fall in raw costs - for November and December delivery - has resulted in a 23% fall over the year so far though bills have remained largely static.

The latest drop was a response to Ukraine and Russia signing a deal to end the threat of supplies being choked off.

The deal will see Moscow resume gas flows over the winter despite their continuing sovereignty row.

The agreement also guarantees delivery to the EU. Russian gas makes up approximately 15% of UK supply.

Raw energy costs, including oil too, have been tumbling in recent months - with Brent Crude losing 25% of its value since June on the back of weaker demand as the world's economic recovery shows signs of easing.

The energy regulator Ofgem told Sky News this week it was seeking an explanation from household suppliers on why they had not passed on to customers the significant falls in wholesale costs.

So-called 'Big Six' firms responded to today's development by insisting that bills reflected long term gas costs not short term pricing.

Companies have recently been tinkering with their offerings, taking their lowest annual tariffs below an average £1,000, but are yet to signal any major cuts to bills despite their wholesale costs diving by almost a quarter during 2014.

Industry body Energy UK said: "There are good deals on the market for customers shopping around and looking to fix their payments.

"Wholesale prices are just part of the bill and, although reduced pressure on the wholesale gas market is good news in the long term, companies buy energy days, weeks, months - even years - in advance to protect customers from sudden changes in costs, and will have bought gas when prices were higher."

Energy firms must use either the wholesale market or a contract with an electricity generator to purchase their energy, which is then delivered to households.

But some suppliers are also part of companies that generate their own energy, so they effectively sell energy to themselves - a situation that has led to calls for greater transparency on profits by splitting generation and supply businesses.

Reported profit levels have recently fallen back to levels not seen since 2009 and companies have consistently argued that their profits are fair and bills reflect not only the timing of their raw gas purchases and hedging strategies but also and high investment costs.

National Grid's latest Winter Outlook report warned that spare capacity was at its weakest level for seven years - a result of several factors including the failure to keep pace with power station closures and unscheduled plant outages.

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