Council tax up despite incentives

27 February 2013 Last updated at 20:11 ET

More than 40% of councils in England are planning to increase council tax this year, according to a survey.

This is despite local authorities being offered money by the government to freeze bills.

However the Chartered Institute of Public Finance and Accountancy (Cipfa) survey suggested that the overall average increase would be less than 1%.

The Local Government Association said it had been a difficult decision for councils in the face of cuts.

Tight budgets

Local authorities in England are being given extra money by central government for the third year running if they freeze bills.

But this time a larger number of councils are increasing council tax (41%) - last year 85% took up the government's offer.

Cipfa said 102 out of 250 authorities surveyed planned to put up council tax in April, typically by about 1% percent.

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All councils are having to strike an increasingly difficult balance between protecting hard-pressed taxpayers and maintaining local services"

End Quote Ian Carruthers Director of policy, Chartered Institute of Public Finance and Accountancy

Any increase over 2% percent is supposed to trigger a local referendum - but some councils are finding ways to increase it by more than that without a poll.

These councils have taken legal advice and plan to use a loophole that allows them to increase waste and transport costs by more than the 2% cap. Others have opted to put up taxes by 1.99%.

A small number of authorities are managing to reduce council tax by finding more efficient ways to deliver services.

Regional variations included an average 1.2% rise across Yorkshire and Humber, and a 0.1% increase in London.

Cipfa director of policy Ian Carruthers said tight budgets meant councils had to make difficult choices between tax rises and cuts in services.

"Councillors must take council tax decisions based on local priorities," he said.

"As the pressures from this period of unprecedented austerity intensify, all councils are having to strike an increasingly difficult balance between protecting hard-pressed taxpayers and maintaining local services.

"The imminent changes to local authority funding systems are bringing added uncertainty to councils' financial management and making it more difficult than ever for councillors to take the medium and longer term decisions required."

'Fully accountable'

Communities Secretary Eric Pickles said the small average increase across England meant it was "a tax cut in real terms".

A Local Government Association spokesman said: "This has been a tricky decision for councils.

"Collectively local authorities are facing a 33% cut in funding from government at the same time as the cost of providing services like adult social care is climbing through the roof.

"The council tax grant from government is very small when set against those pressures and it lasts just two years with no certainty beyond that.

"Ultimately councils have to take a long-term view. Some have clearly decided that increasing council tax is one way of meeting current costs and alleviating pressure in the longer term.

"Councils are fully accountable to their electorates for these decisions."

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High Street store closures soar

27 February 2013 Last updated at 23:52 ET

The number of stores closed by retail chains in Britain has soared over the past 12 months, according to research.

Analysis from PwC and the Local Data Company revealed that chains shut an average of 20 shops a day last year.

The figure increased in the last three months of 2012 as a spate of household names went into administration.

There was a decline in shops selling products such as computer games, cards and clothes, but a rise in payday loan providers, pound shops and bookmakers.

Convenience stores opened by supermarkets were also taking over empty units.

The survey found a reduction of nearly 1,800 shops for the whole of 2012, a 10-fold increase on the year before.

The figures were based on a survey of 500 town centres.

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WINNERS

• Payday Loans +20%
• Pawnbrokers +13.2%
• Poundshops +13%
• Supermarkets +3.6%
• Coffee shops +3.4%
• Betting shops +3.3%
• Charity shops +2.7%

LOSERS

• Computer Games -45%
• Health food -24.7%
• Card shops -23.4%
• Recruitment -15.1%
• General clothes -8.7%
• Women's clothes -7.2%
• Banks/financial -2.9%

Net change in units in 2012. Source: Local Data Company

High-profile administrations, such as Comet and Jessops, were not the only problem as retailers also shed many stores when leases came up for renewal.

With the rise of online shopping the chains did not need as many stores as they did in the past, a trend that looks set to accelerate this year.

According to the study, more High Street chains fell into insolvency in 2012 than ever before.

The research found a total of 7,337 closures, ranging from 1,281 in London to 353 in Scotland and 213 in Wales.

BBC business correspondent Emma Simpson said the figures showed just how dramatic the fallout has been on our High Streets.

"The scale of the net figure was something unheard of before the recession," she added.

Mike Jervis, insolvency partner and retail specialist at PwC, said: "The failed chains generally shared two problems - too many stores and too little multi-channel activity.

"A number of them had failed to deal with their underlying issues by hiding behind light touch restructuring processes, especially Company Voluntary Arrangements. 2013 has seen the downward trend become even worse."

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Rising costs 'add to divorce misery'

28 February 2013 Last updated at 02:09 ET

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Sam Feely says the cost of her divorce "escalated out of control"

Spiralling costs and poor quality legal services are adding to the misery of divorce, the law watchdog has said.

A report by the Legal Ombudsman for England and Wales showed complaints by clients in divorce and family law were higher than in any other category.

The Legal Ombudsman's role is to resolve disputes between lawyers and their clients.

The Law Society said it hoped the study would help to remind solicitors to provide clear information about costs.

Photocopying bill

Some 13% of clients were dissatisfied with their lawyers in divorce cases, almost double the level in other areas of the law.

About a quarter of those complaints related to cost, and one in five people said they were not given a cost estimate at the outset.

In one case a woman was charged £15,000 more than had been agreed at the outset, including £4,000 for photocopying, despite asking for proceedings to be stopped.

Continue reading the main story

It's not an easy time emotionally and the last thing you want is to be taken for a ride by lawyers"

End Quote Samantha Feely

She took her case to the Legal Ombudsman which ordered the firm to waive the final bill.

"I did not know where to turn to - it was absolutely horrendous because I had no means at all of paying that bill," said Samantha Feely.

"And it was literally as a last resort... I went to the ombudsman. And ultimately the ombudsman has ruled in my favour that the bill should be wiped off - I didn't have to pay it. But it was a 12-month process."

She added: "I feel really bitter about it - I trusted the legal representation who were working for me."

She went on: "It doesn't matter whether you've been overcharged by £50, £500 or £15,000.

"There's a service there to be used, lawyers should be a bit more conscious and considerate to the situation that people are in - they are very vulnerable when they are going through this. It's not an easy time emotionally and the last thing you want is to be taken for a ride by lawyers that just think they have got a licence to print money."

In some cases bills exceeded what people were expecting by more than £30,000.

Apart from cost, 18% of divorce complaints involved a failure to provide an adequate service. This was often in the form of poor information.

In April, cuts to legal aid will result in 200,000 cases a year of divorce and family breakdown being removed from public funding, meaning more people will be paying privately.

'Raise game'

The Legal Ombudsman recognised this and called on lawyers to improve the experience for clients.

Chief Legal Ombudsman Adam Sampson said: "Clearly lawyers could be doing more to reduce complaints by providing accurate cost information, providing decent service levels and by taking complaints seriously.

"I think this report challenges lawyers to raise their game and make the divorce process less painful for consumers."

Acrimonious divorces were exploited by some unscrupulous lawyers to maximise their earnings, Mr Sampson said.

"The best of the lawyers prioritise the needs of the individual, other lawyers however prioritise trying to get as much money as possible out of the individual client," he said.

"That can mean in something like a divorce, if you've got a very highly-charged vulnerable client sitting in front of you who's angry at their ex, then you don't actually choke off what the client wants which is to punish them through the courts, but you encourage them and the result is a massive bill."

BBC legal affairs correspondent Clive Coleman said the report would make uncomfortable reading for lawyers.

The Law Society, which represents solicitors in England and Wales, said lawyers had a professional obligation to provide clients with clear information about charges, and the report would be very helpful to lawyers and clients in reminding them of this.

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Disabled comment councillor resigns

28 February 2013 Last updated at 03:35 ET

A Cornwall councillor at the centre of a row over his remark about disabled children has resigned.

Collin Brewer had told a charity worker at an event that disabled children should be "put down" because they cost the authority too much money.

He made the comments to a Disability Cornwall member at a stall at County Hall in Truro in 2011.

Mr Brewer said it was unlikely he would be a candidate in the May elections. "I was wrong, I admit it," he said.

"I will continue to apologise," he added.

Steve Paget, the chairman of Disability Cornwall, said: "Finally he's seen sense and resigned. This situation should never have got to this stage.

"I'm publicly calling on the council to provide disability equality training for all councillors. I'm appalled it has taken this long to reach a conclusion."

Mr Brewer's comments came to light following a report by the council's standards committee after the charity made a formal complaint.

Continue reading the main story

He's done the right thing. He didn't have any choice. "

End Quote Phil Wills Parent

The committee ordered Mr Brewer to write an apology, which he completed.

Speaking after the report was made public, councillor John Wood, leader of the Independent Group, said: "As soon as I heard of the standards committee's findings I wrote to Mr Brewer and said as far as I was concerned he was no longer a member of our group.

"If I was in his position I would resign."

Theresa Court, who was on the Disability Cornwall stall, said she was "absolutely horrified" when she heard the "depraved comment".

Sue Bennie from Camborne, who has a 15-year-old son with disabilities, said: "All I can say is good job. He's probably helped a load of people.

"But if he had his ruling I would not have met my son. I'm glad the Cornish people have had words, and it's worked."

Phil Wills from Truro, whose son Josh is severely autistic, said: "He's done the right thing. He didn't have any choice.

"In any other job, you say that sort of thing, you would get sacked or suspended."

A Facebook page called "Cornwall Councillor Collin Brewer should resign", set up in response to the council's report, attracted 3,692 supporters.

Mr Brewer said: "It's very painful. I didn't sleep last night. I probably won't sleep tonight.

"I'm not eating. I think it will live with me. It's continual regret. I'm hoping I will cope with it. We will see."

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RBS lost £5.2bn in 'chastening' year

28 February 2013 Last updated at 03:30 ET

Royal Bank of Scotland (RBS) has reported its fifth annual loss since it was rescued by the government in 2008.

The bank made a pre-tax loss of £5.17bn, hit by a series of charges. The year before, it lost £766m.

In a statement, the bank said it had been a "chastening" year, during which it sought to "put right past mistakes".

It has set aside money to cover PPI mis-selling, the mis-selling of interest rate swaps and its fine for attempting to fix Libor.

RBS is 81% owned by the government.

Much of the pre-tax loss came from a £4.6bn accounting charge for changes in the value of its own credit, which is a measure of how much it would cost to buy back its own liabilities.

'Another choppy year'

It reported an operating profit of £3.5bn, which excludes all of the special charges and is a considerable improvement on the previous year's performance.

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In a conference call for journalists, chief executive Stephen Hester warned of "another choppy year ahead of us", but added that "the light at the end of the tunnel is coming much closer".

The fine for attempting to fix the inter-bank lending rate, Libor, knocked £381m off the bank's profits, although it said it would be recovering £302m of that by reducing 2012 bonuses and clawing back previous ones.

It has taken a charge of £700m in the year for money it expects to have to pay out to cover mis-selling interest rate swaps.

It also took a £450m charge in the last three months of the year to cover mis-selling of Payment Protection Insurance, taking its total provision to £2.2bn.

RBS set aside £215m to pay bonuses to its investment bankers, which Mr Hester stressed was considerably lower than other comparable banks.

Continue reading the main story

Mr Hester said that the list of charges was "a powerful critique" of where the banking industry had gone wrong in the past, but added that he was confident that the "biggest and most wrenching cases can be recognised by the end of the year".

He also told the BBC that the bank would be in a "condition fit to sell" before the next election in 2015, but added: "There is no guarantee that the shares will be worth more than the government paid for them by that time."

Citizens sale

RBS has announced that it is going to begin the process of selling some of its US business, Citizens, on the stock exchange in about two years.

The announcement was welcomed by Chancellor George Osborne as a sign of a greater focus on the UK.

"I have been very clear that I want to see RBS as a British-based bank, focused on serving British businesses and consumers, with a smaller international investment bank to support that activity, rather than to rival it," he said.

"I welcome RBS's announcement today to accelerate that strategy."

Its Ulster Bank division reported an annual loss of more than £1bn, due to £1.4bn of loan impairments, which are write-offs to cover loans that were unlikely to be repaid.

Ulster Bank made up a significant proportion of the £5bn of loan impairments reported by the whole group.

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Excess drinking 'is under reported'

26 February 2013 Last updated at 22:53 ET

The amount of alcohol consumed in England could be much higher than previously thought, a study suggests.

University College London researchers compared alcohol sales figures with surveys of what people said they drank.

They found there was a significant shortfall with almost half of the alcohol sold unaccounted for in the consumption figures given by drinkers.

This suggests as many as three-quarters of people may be drinking above the recommended daily alcohol limit.

The researchers reached their estimates by factoring in the "missing" alcohol - and found excess drinking was far more than suggested by official figures, they told European Journal of Public Health.

Experts said much alcohol use went unreported, partly because drinkers did not admit or keep track of how much they consumed.

'Health implications'

The study found that 19% more men than previously thought were regularly exceeding their recommend daily limit - and 26% more women.

Total consumption across the week was also higher than officially thought - with 15% more men, and 11% more women drinking above the weekly guidelines.

The current recommendation set by the UK Chief Medical Officers is not to regularly exceed four units per day for men and three units a day for women; the Royal College of Physicians recommends weekly alcohol limits of 21 units for men and 14 units for women - although these are currently under review.

A unit of alcohol is roughly equivalent to half a pint of ordinary strength beer, or nearly one small glass of wine.

Sadie Boniface, lead author of the study at University College, said: "Currently we don't know who consumes almost half of all alcohol in England. This study was conducted to show what alcohol consumption would look like when all of what is sold is accounted for, if everyone under-reported equally.

"The results are putative, but they show that this gap between what is seen in the surveys and sales potentially has enormous implications for public health in England."

The team used alcohol sales data from Revenue and Customs and compared it with two self-reporting alcohol consumption surveys conducted in 2008 - the General Lifestyle Survey (GLF) which analysed average weekly alcohol consumption in 12,490 adults, and the Health Survey for England (HSE) which looked at consumption on the heaviest drinking day in the previous week among 9,608 adults.

Counting units

The researchers say they will now look at the characteristics of those that are under-reporting the number of drinks they have had, and why.

They suggest it may be down to drinking patterns and habits - those that are mixing drinks, and drinking at different venues, may be more likely to under-report.

The charity Alcohol Concern suggests irregular and chaotic drinking behaviour may play a part: "When we're totting up our drinks total we don't always count some occasions as proper drinking.

"We may underestimate drink sizes and their alcoholic content, and not count holidays and special occasions like weddings, birthdays and Christmas when we often drink a great deal more than usual."

The researchers suggest that government drinking guidelines need to reflect actual consumption instead of reported drinking - especially when ascertaining what levels are associated with harm.

The Department of Health says this will be taken into consideration in their alcohol consumption review.

It said: "We already know people underestimate what they drink and many drink too much. That's why we work to help people make healthier decisions, including the recent Change For Life campaign to help them track consumption and understand the impact on their health.

"We're also tackling excessive drinking through our proposed minimum unit price at 45p per unit, tougher licensing laws, more GP risk assessments, better access to specialist nurses and more specialised treatment."

Diane Abbott MP, Labour's shadow public health minister, said: "This has got to be a wake-up call for the government and the country, because after more than two years of bitter internal rows, the government has got cold feet about its only proposed alcohol harm policy.

"More needs to be done to tackle problem drinking, which costs the country £21bn."

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Ofsted chief wants paid governors

27 February 2013 Last updated at 02:42 ET By Sean Coughlan BBC News education correspondent

Ofsted's chief inspector says he wants some school governors in England to be paid and to provide more professional leadership.

Sir Michael Wilshaw is to launch an online at-a-glance report card for each school, which he wants governors to use to hold head teachers to account.

He is also set to attack governors who are "ill-informed" and "not able to make good decisions".

But the National Governors' Association says it opposes paying governors.

"Governors can do a professional businesslike job without being paid," said Emma Knights, the association's chief executive.

And she said that most of the information in the new online reports - called the "School Data Dashboard" - was already available, and that "most governing bodies will be using more detailed data".

"We are all on the same mission, the question is how you do that," she said.

'Data dashboard'

In a speech on Wednesday, Sir Michael will say weaknesses in leadership, including governing bodies, were a common problem among the 6,000 schools rated less than good.

He will liken the worst governors to jurors who are incapable of understanding their responsibilities in a court case.

Continue reading the main story

In the worst cases, governors can be rather like the jury that was dismissed from a high-profile trial last week: ill-informed and not able to make good decisions"

End Quote Sir Michael Wilshaw Ofsted chief inspector

The Ofsted chief is set to launch the School Data Dashboard to provide information for an estimated 300,000 school governors.

This data, also available to the public, will provide key information about the performance of every state primary and secondary school.

Sir Michael says this will make sure that governors understand their schools' strengths and weaknesses.

"But for those that don't, there are now no excuses. Inspectors will be very critical of governing bodies who, despite the dashboard, still don't know their school well enough," Sir Michael is expected to say in a speech in London.

He will praise the best governors for focusing on the "big issues", such as "the quality of teaching, the progress and achievement of their pupils, and the culture which supports this".

But he will condemn weak governing bodies for paying too much attention to "marginal" concerns.

"Too much time spent looking at the quality of school lunches and not enough on maths and English," Sir Michael will say.

"In the worst cases, governors can be rather like the jury that was dismissed from a high-profile trial last week: ill-informed and not able to make good decisions."

Financial incentives

A large majority of school governors are unpaid volunteers from the local community.

But Sir Michael will repeat his calls for some governors to be paid.

An Ofsted spokeswoman said that offering incentives might attract talented governors to very challenging schools.

This could be "more than just expenses", she said.

But Ms Knights said that volunteering was an important part of the ethos of parents and the community supporting local schools.

There are already provisions for paying governors in certain circumstances, such as where temporary governing bodies are installed to turn around a failing school.

Ms Knights argues that in most cases there is no evidence that schools would be improved by paying governors.

Brian Lightman, general secretary of the Association of School and College Leaders, cautioned against the over-simplified use of school performance data.

"All data, especially 'simple' statistics, comes with a health warning. It should encourage people to ask more questions, not to draw premature conclusions," said Mr Lightman.

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Rocket launcher find 'saved lives'

27 February 2013 Last updated at 03:15 ET

The recovery of a rocket launcher and what has been described as a warhead in west Belfast has saved lives, the Police Service of Northern Ireland have said.

Officers investigating dissident republican activity seized the weapons during a search of a house in Hawthorn Street, off the Springfield Road.

Homes were evacuated during the security alert on Tuesday evening.

The items have been taken away for examination.

A PSNI spokesman said: "These weapons systems are clearly intended to kill and we should be in no doubt that the recovery of these items has saved lives."

West Belfast MP Sinn Fein's Paul Maskey said it was a "very worrying development".

"This community welcomes the fact this weapon is now off the streets," he said.

'Shocked'

"(I have) no idea where it comes from, who had it. Obviously some form of dissident republicans have brought this into the area.

"Some people are stuck in the past and don't want to come out of it."

He said local people wanted the dissidents to come forward and explain why they have such weapons and why they are attacking the PSNI.

SDLP councillor Colin Keenan, who lives in Hawthorn Street, said local people were "shocked" that such weapons had been found in their area.

Mr Keenan said up to 10 houses had been evacuated and residents were given shelter in a nearby parish hall during the operation which began at about 20:00 GMT on Tuesday.

The residents were later allowed to return to their homes.

Earlier this month rocket launchers were intercepted in County Tipperary.

Irish police seized four rocket launchers and explosives believed to be en route to Northern Ireland.

Two men have already appeared before the Special Criminal Court in Dublin in connection with that find.

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Colder weather boosts British Gas

27 February 2013 Last updated at 03:16 ET

British Gas has said its profits have risen because a colder 2012 meant people used more gas.

It reported profits from residential energy supply of £606m for 2012, up 11% from the previous year. It said gas consumption had been up 12%.

Profits were up 16% to £312m at its residential services unit, which covers services such as repairing boilers.

Centrica, which owns British Gas, reported an adjusted operating profit of £2.7bn for 2012, up 14% from 2011.

Centrica chief executive Sam Laidlaw told the BBC that the firm's profit margins per household "actually went down", adding that the company had made just under £50 profit per customer household.

"A 5% margin on the business is the sort of margin we require" to make investments in new sources of energy, he added.

Centrica's dividends to shareholders have risen 6% and the company is also returning £500m to them.

The company announced that Phil Bentley was stepping down from his role as managing director of British Gas to pursue his ambition to be a chief executive.

Cheapest tariff

British Gas raised its gas and electricity prices by 6% in November, which Mr Laidlaw stressed was "lower than any of our competitors".

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But Anne Robinson, director of consumer policy at the price comparison website Uswitch, said: "Seven out of 10 of us actually went without heating at some point during this winter and over a third of us have reported that we feel it's actually affected the quality of our life and also our health.

"So no, I don't think customers will be celebrating. I think they'll be wondering why on earth British Gas had to take this move in November when they are making such high profits."

All of the big six energy suppliers raised prices this winter, prompting Prime Minister David Cameron to step in and say he was going to force them to put customers on their cheapest tariffs.

Energy regulator Ofgem provided details of the plan last week, which will also limit the number of tariffs that suppliers can offer and force them to make bills clearer.

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Farmers 'angry' at horsemeat crisis

27 February 2013 Last updated at 03:23 ET

Farmers' anger at the horsemeat scandal will be reflected at their national conference, union leaders have said.

Many farmers believe the crisis over mis-labelled food has damaged consumer confidence in the supply chain.

National Farmers' Union (NFU) president Peter Kendall said: "Farmers have been furious about what has happened."

Environment Secretary Owen Paterson and Tesco chief executive Philip Clarke will address the conference, which starts in Birmingham on Wednesday.

Gate to plate

Mr Kendall said: "Farmers have spent many years working to ensure the British supply chain is fully traceable from farm to pack, and have upheld strong principles which are embodied in assurance schemes like Red Tractor.

"For me this is fundamental for consumer confidence."

But there is also a growing sense that this may be a moment of opportunity for British farmers.

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Chief Executive Philip Clarke tells the BBC why customers should trust Tesco

They believe that tight regulations, including those introduced in response to the BSE crisis, mean their part of the food industry now sets the standard for others to follow.

Farmers have long called for the food supply chain, which can involve many traders and processors between farm gate and consumer plate, to be overhauled and simplified.

BBC rural affairs correspondent Jeremy Cooke said they hoped the horsemeat scandal could mean the rest of the industry - and the government - was ready to listen.

'Signal change'

Meanwhile, a poll for the NFU suggested that more than three-quarters of people wanted supermarkets to stock more food from British farms.

Some 43% of the 1,000 people surveyed said they were more likely to buy food traceable from UK farms in the wake of the horsemeat scandal.

Mr Kendall said: "Our research also demonstrates the strong demand for British-farmed products, and so retailers, processors and food service companies have a responsibility to ensure there is clear country of origin labelling on the products that consumers purchase."

Speaking to the BBC, Mr Clarke said his supermarket would work more closely with British farmers in response to the horsemeat scandal.

He said: "The reason I'm here today talking to the NFU is to signal a change, a change which means we'll have the most stringent testing regime, a change that means we'll bring production closer to home, and a change that means we'll have more partnerships with farmers here in the UK.

The director of the International Meat Trade Association, Liz Murphy, said passing off horsemeat as beef was criminal behaviour that had to be stamped out, as imported meat should be of equal standard to that produced in the UK.

"The public health and animal health conditions have to be the same," she said.

"So when we supply meat from outside the EU, that has to comply with the same conditions that our farmers do and our manufacturers and factories do in the UK."

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Warning about student 'money mules'

25 February 2013 Last updated at 19:03 ET By Simon Gompertz Personal finance correspondent, BBC News

Fraud experts are warning that hundreds of thousands of people are in danger of being duped into laundering money for fraudsters.

They are being recruited as unwitting "money mules" who allow their own bank accounts to be used to disguise the proceeds of crime.

The study was carried out by Financial Fraud Action, which tackles fraud on behalf of banks.

It said that students and jobseekers could be especially vulnerable.

Some 19% of students who had been approached had agreed to become money mules.

"It's a very serious problem," warns DCI Dave Carter, an investigator from Financial Fraud Action.

"Almost every single criminal transaction that goes on depends on money mules, to turn the money from crime into something the criminals can spend themselves."

How it works

Continue reading the main story

It just makes you feel sick. I don't want it to happen again."

End Quote Kayleigh Rance job-seeker

The fraudsters contact likely targets by sending out mass emails offering employment, or after sifting through CVs posted by job seekers on employment websites.

Then they offer jobs as "money transfer agents", "payment processing agents" or "administration assistants" for salaries of hundreds of pounds a week.

It looks like a proper job offer, but the real purpose is to channel cash from criminal activity through a person's own bank account, making them the fraudster's money mule.

Kayleigh Rance has been hunting for work for a year. She was taken in and even signed a contract. Then, luckily, she pulled out.

"It just makes you feel a bit sick," she complains, "I feel like I've got to go through all the websites now and take my CV off because I don't want it to happen again."

The dirty cash comes from credit card fraud, money stolen from bank accounts and other rip-offs.

Paying it into the money mule's account disguises where it comes from. The mule transfers it to an account in an overseas bank, controlled by the fraudster. It is classic money laundering.

Some money mules are paid by a straightforward cut of the cash being handled. A typical share would be 8%.

Campaign

The first mules tended to be new entrants to the UK, processing funds generated by crime within their own communities in London and other major cities.

But the power of the internet has allowed the perpetrators to start targeting other groups, including students desperate to earn some extra cash.

Financial Fraud Action commissioned ICM to question 2,000 adults along with separate groups exclusively made up of students, jobseekers and new entrants to the UK.

Around 15% had received the suspect job offers. Overall 6% of those who had been approached accepted the offers, rising to 13% of the unemployed, 19% of students and 20% of new entrants.

Crimestoppers is running a campaign in universities across the UK to warn students not to be fooled into becoming involved, telling them: "Don't be a mule!".

'Colossal Risk'

Megan Owen, who is studying criminology, volunteered to help at one recent event in Birmingham City University.

"Lots of students we approached said they'd been affected or their friends had been affected," she said.

Extrapolating from its survey, Financial Fraud Action concludes that 380,000 people could have become unwitting money mules.

The figure is a stab in the dark, but it's clear that the problem is becoming worse and that few of those who become involved understand the risks they are running.

Their bank accounts could be frozen. If prosecuted, they could be sent to prison for up to 10 years.

"It's a colossal risk," warns DCI Carter, "In fact you are taking almost all the risk on behalf of the criminal. That's why they ask - the money mules are the ones most likely to be caught."

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Dementia in care homes 'more common'

25 February 2013 Last updated at 19:28 ET By Nick Triggle Health correspondent, BBC News

More than 320,000 of the 400,000 people living in care homes in England, Wales and Northern Ireland now have dementia or severe memory problems, the Alzheimer's Society charity estimates.

It said the figure was almost 30% higher than previous estimates because of the rise in the ageing population and improvements in data collection.

Of 2,000 adults surveyed, 70% said they would be scared about going to a home.

Another two-thirds felt the sector was not doing enough to tackle abuse.

And just 41% of 1,100 family members and carers surveyed thought their loved ones' quality of life was good

Continue reading the main story

• Dementia is an umbrella term describing a serious deterioration in mental functions, such as memory, language, orientation and judgement.
• There are many types, but Alzheimer's disease, which accounts for two-thirds of cases, is the most well-known.

Alzheimer's Society chief executive Jeremy Hughes said: "Society has such low expectation of care homes that people are settling for average.

"Throughout our lives we demand the best for ourselves and our children. Why do we expect less for our parents?

"We need government and care homes to work together to lift up expectations so people know they have the right to demand the best."

David Rogers, of the Local Government Association, which represents councils, said: "This report shows the lack of confidence in a care system which is buckling under the weight of rapidly growing demand and years of underfunding.

"Local authorities want to offer a service which goes beyond a basic level of care but this is becoming increasingly difficult as our population ages, costs climb and the already significant funding shortfall becomes even more severe."

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Secrecy bid for Litvinenko inquest

25 February 2013 Last updated at 23:07 ET

A coroner is to hear an application by the government to keep some information secret at the forthcoming inquest into the death of Alexander Litvinenko.

The former Russian security service officer was poisoned by radioactive polonium in London in 2006.

Tuesday's hearing will consider an application for a broad Public Interest Immunity (PII) certificate.

It is expected to be opposed by lawyers for Mr Litvinenko's widow as well as media organisations, including the BBC.

The PII certificate would exclude some information from the inquest when it opens later this year.

They are usually issued on the grounds of national security.

At an earlier pre-inquest hearing the lawyer for Mr Litvinenko's widow said the Russian had been a paid agent of MI6 and argued the inquest should examine the secret service's relationship with him.

Sir Robert Owen, a judge acting as the coroner, has said he would examine what was known of threats to Mr Litvinenko's life and also whether the Russian state was responsible for his death.

Continue reading the main story

The last pre-inquest hearing contained a major revelation - namely that Alexander Litvinenko had been a paid agent of MI6.

It raised the question over whether this work was linked to his death.

That has pushed Litvinenko's relationship with British intelligence much higher up the agenda.

But how much will we learn about that relationship?

That's the subject of Tuesday's hearing in which the government is applying for a broad Public Interest Immunity Certificate which would mean that information considered sensitive could be excluded.

He has also agreed that a group representing Russian state prosecutors can be accepted as a party to the inquest process.

A legal review, ahead of the inquest, has heard that Mr Litvinenko was working alongside Spanish spies for MI6 in the days before his death.

British government documents that implied Russia was behind the 43-year old's murder were also revealed.

Moscow has previously denied any involvement in Mr Litvinenko's death.

The inquest is due to begin on 1 May.

Mr Litvinenko died in November 2006 after ingesting the polonium-210 isotope, allegedly during a meeting at the Millennium Hotel in central London with ex-KGB contacts Andrei Lugovoi and Dmitry Kovtun.

Russia has refused to extradite main suspect Mr Lugovoi to the UK for questioning.

Neil Garnham, representing the Home Office, told the review he could "neither confirm nor deny" whether Mr Litvinenko was employed by British intelligence.

The Kremlin has indicated it would like to become an interested party in the inquest, which would allow representatives of the Russian state to cross-examine witnesses and examine evidence.

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Police to meet Lib Dems over Rennard

26 February 2013 Last updated at 02:49 ET

Liberal Democrat officials are to meet Metropolitan Police officers to discuss allegations made against the party's former chief executive Lord Rennard.

The Met said it was working with the party to establish whether any criminal activity had taken place.

A number of women have accused the peer of sexually inappropriate behaviour. Lord Rennard denies the allegations.

The Lib Dems are carrying out their own investigations. Lord Rennard has told of his "shock" at the allegations.

Election shadow

The question of how to handle the claims against Lord Rennard will be considered not only by the party but by the Specialist Investigations Command of the Metropolitan Police.

The meeting between the Met and Lib Dem officials on Tuesday follows a complaint by Labour MP John Mann.

Mr Mann told the BBC he had contacted the police because it was the "appropriate action" to take.

He said the Liberal Democrats had been trying to "politically manage" the issue rather than conducting a "proper investigation" into the allegations.

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Ex-Lib Dem activist Alison Smith who reported inappropriate behaviour by Lord Rennard in 2007, spoke to Newsnight

BBC political correspondent Ross Hawkins said Lord Rennard disputed allegations that were first broadcast last week and have cast a long shadow over the party's by-election campaign in Eastleigh.

The Lib Dems are preparing to defend the Hampshire seat on Thursday, following the resignation of Chris Huhne.

Alison Smith, one of those who has made allegations about his conduct, told the BBC's Newsnight that there was an "intolerable" culture within the party.

The Lib Dem investigations will consider claims about how allegations made among Lib Dems were handled in the past and what action should be taken in the future.

The party's deputy leader Simon Hughes said the police announcement was "compatible with what we want to do which is to make sure that nobody thinks that we're trying to hide anything.

"We're not, we're an open and transparent party."

Key strategist

The Lib Dems are conducting two inquiries - one into the specific complaints against Lord Rennard, which will be chaired by Alistair Webster QC, a criminal lawyer and former head of the Lib Dem Lawyers Association.

The other is into how the allegations were handled in the past, which will be independently chaired.

Two women told Channel 4 last Thursday that Lord Rennard had abused his position by inappropriately touching and propositioning them.

One of the women said she had spoken to two senior party figures about her claims but said no action had been taken.

Allegations from more women were broadcast on Friday. The incidents are alleged to have taken place between 2003 and 2007.

Lord Rennard, who was also a key strategist and adviser to a succession of party leaders, said he was "deeply shocked" about the allegations and said they were a "total distortion" of his character.

The peer said he knew of no complaints against him in his 27 years working for the party but he has temporarily stood aside from the Lib Dem group in the Lords to avoid "embarrassment" to the party.

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Egypt balloon crash kills tourists

26 February 2013 Last updated at 03:22 ET

British, French and Japanese nationals are reported to be among 19 tourists killed in a hot air balloon crash near the southern Egyptian city of Luxor.

The balloon was flying at 1,000 ft (300m) when it caught fire and exploded, plunging onto fields west of Luxor, officials said.

Two people, including the balloon's pilot, reportedly survived the crash.

Luxor lies on the banks of the River Nile and is home to some of Egypt's most famous pharaonic-era ruins.

Hot air ballooning at dawn is a popular way for tourists to see Luxor's famous sites, such as Karnak temple and the royal tombs in the Valley of the Kings.

Previous crashes

US photographer Christopher Michel was in another balloon, taking some aerial shots, at the time.

"We flew over the ancient ruins. Just before landing in the cornfields, I heard an explosion and saw smoke. I think it was the balloon behind mine," he told the BBC.

Continue reading the main story

• Site of ancient city of Thebes
• Temples of Karnak and Luxor in city itself
• Royal tombs in Valley of the Kings and Queens lie across River Nile
• Dawn hot air balloon rides popular way to see sites
• Luxor has seen a drop in visitor numbers since the 2011 uprising

"I wasn't sure what had happened at first. It was only when we landed we heard the full extent of what happened."

Ahmed Aboud, a representative of balloon firms in Luxor, told Reuters news agency: "There were 20 passengers aboard. An explosion happened and 19 passengers died. One tourist and the pilot survived."

The British foreign office told the BBC it was making urgent inquiries with its colleagues in Egypt to confirm reports of British casualties.

NBC News quoted a Luxor health official as saying that the victims include nine from Hong Kong, four from Japan, two from the United Kingdom and two from France, with two yet to be identified.

Hot air balloon crashes have happened in Luxor before. Two British women were among 16 injured when their balloon came down in April 2009.

Luxor, like many other parts of Egypt, has seen a sharp downturn in visitor numbers since the uprising in early 2011 that forced long-time President Hosni Mubarak to step down.

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UK oil investment 'at 30-year high'

24 February 2013 Last updated at 19:05 ET

Investment in the North Sea is the highest for 30 years and rising, according to a report by an oil and gas trade body.

Companies looking for offshore energy invested £11.4bn in 2012, said Oil and Gas UK, which comprises more than 320 companies active in the area.

That will rise to £13bn this year, it predicted.

It credited the recent introduction of tax relief to encourage investment in "difficult projects".

"Here is some really good news for the UK," said Malcolm Webb, Oil and Gas UK's chief executive. "After two disappointing years brought about by tax uncertainty and consequent low investment, the UK continental shelf is now benefitting from record investment in new developments and in existing assets and infrastructure, the strongest for more than three decades."

Continue reading the main story

Oil and Gas UK, representing the sector and carrying out this survey, links the sharp drop in production over the past couple of years to tax raids by Gordon Brown last decade and by George Osborne in 2011"

End Quote

Chancellor George Osborne passed new relief measures last year so that gas fields in shallow waters will be exempt from a 32% tax on the first £500m of income. The UK government also plans to change tax rules on decommissioning.

"The recent introduction of targeted tax allowances to promote the development of a range of difficult projects, coupled with the government's ground-breaking commitment to provide certainty on decommissioning tax relief, has prompted global companies and independent businesses alike to take another look at the UK as an investment destination," Mr Webb said.

'New discoveries needed'

The number of projects submitted to the Department of Energy and Climate Change and given development approval almost doubled between 2011 and 2012. Thirty-three have been approved since January 2012.

But the body warned that the reserves that are now moving through into production have not been fully replaced with new discoveries.

Production in the UK fell to the equivalent of 1.55 million barrels of oil per day in 2012, down by 14% from 2011 and by 30% from 2010.

Mr Webb added: "Only 21 exploration wells per year on average were drilled over the last three years. As a result, in 2012 not enough barrels were discovered to replace all those produced.

"However, again, there is real cause for encouragement as the survey results lead us to forecast 130 exploration wells over the next three years which, alongside the use of new and improved sub-surface technology, should result in many more barrels being discovered."

According to the Scottish government, there are still 24 billion barrels of oil still to be recovered in the North Sea with a wholesale value of £1.5 trillion.

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Campaigners criticise PCC elections

24 February 2013 Last updated at 22:04 ET

The elections for police and crime commissioners "failed both candidates and voters alike", a report by the Electoral Reform Society has said.

The polls took place in 41 police force areas in England and Wales, and had a turnout of just 15%, a peacetime low.

The Electoral Reform Society said a poll it commissioned showed almost 90% of people still do not know who their elected representative is.

The Home Office said it would look at the points made in the report.

PCCs replaced police authorities in England and Wales - except in London - in what the Home Office described as "the biggest democratic reform in policing in our lifetimes".

The commissioners will be in post until 2016 and will have the power to set policing priorities, budgets and also to hire and fire chief constables.

'Left in the dark'

In its report, the Electoral Reform Society, an independent campaign group, described November's elections as "chaotic".

It said turnout was affected because they were held in winter, and voters were not given enough information.

A Populus poll commissioned by the society, and carried out last month, showed just 11% of the 1,624 respondents knew who their elected PCC was, it said.

The society has recommended that:

• Another major election should never be held in winter months, as it discourages people from turning out
• Voters should not be "left in the dark" about who or what they are voting for
• There should be a level playing field for candidates through well-designed election rules

Katie Ghose, chief executive of the Electoral Reform Society said: "This was a flagship policy designed to reconnect the public and the police. Yet, after spending £75m, nearly 90% of Britons have no idea who their elected police and crime commissioner even is.

"November's bungled poll failed both candidates and voters. Government mismanagement has handed our elected commissioners a poisoned chalice, and it remains unclear how they can overcome it.

"The Electoral Commission's forthcoming review must not pull its punches. The government has singularly failed to accept any responsibility and would like to see nothing more than a whitewash."

'Bigger mandate'

Last week, the Home Office was criticised for not having "sufficient resources or the level of expertise" required to run effective elections.

The Association of Electoral Administrators (AEA) - a body for electoral staff, which has more than 1,700 members - also criticised the timing of the PCC elections, saying it was "not in the interests of voters".

The Home Office gave an identical response to the latest criticisms.

"More than five million people turned out to vote for the first ever election of police and crime commissioners, giving them an infinitely bigger mandate than the unelected and invisible police authorities they replaced," a spokeswoman said.

"That number will only grow in the future as people see the real impact PCCs are already making in their areas, delivering on public priorities in tackling crime.

"The Home Office will look at the points made in this report, along with the conclusions of the Electoral Commission's upcoming assessment."

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Day-Lewis makes Oscars history

25 February 2013 Last updated at 02:02 ET

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Watch some of the key moments of the ceremony

Daniel Day-Lewis has made Oscars history by becoming the first person to win the best actor prize three times.

The British-born star, who had been the runaway favourite, was rewarded for his role in Steven Spielberg's Lincoln.

"I really don't know how any of this happened. I do know I've received much more than my fair share of good fortune in my life," he said.

Ben Affleck's Iran-set rescue thriller Argo won the prize for best picture.

In a live broadcast from the White House, First Lady Michelle Obama joined Jack Nicholson to help present the best picture prize at the end of the night.

Continue reading the main story

"Start Quote

I do know I've received much more than my fair share of good fortune in my life."

End Quote Daniel Day-Lewis

Argo is the first best picture winner not to have a concurrent nomination for best director since 1989's Driving Miss Daisy.

But despite Affleck's omission from the best director category, the film had been widely-tipped to take the top prize.

Oscars host Seth MacFarlane joked at the start of the ceremony: "Argo's story is so top-secret that its director remains unknown to the Academy."

Accepting his award alongside fellow producers George Clooney and Grant Heslov, Affleck paid tribute to the "genius" Steven Spielberg who lost out in the same category.

Referring to his previous Oscar success with 1997's Good Will Hunting, he said: "I never thought I would be back here and I am because of so many of you who are here tonight".

Continue reading the main story

OSCARS - Main winners

Life Of Pi - Four awards, including best director for Ang Lee

Argo - Three awards, including best film

Les Miserables - Three awards, including best supporting actress for Anne Hathaway

Django Unchained, Lincoln, Skyfall - Two awards apiece

He added: "It doesn't matter how you get knocked down in life, all that matters is that you get up."

The Oscar victory for Daniel Day-Lewis puts him ahead of Hollywood legends Jack Nicholson, Marlon Brando, Dustin Hoffman and Tom Hanks - who all have two best actor wins to their name.

Day-Lewis, who holds UK-Irish citizenship, previously won for My Left Foot (in 1990) and There Will Be Blood (2008) and has a reputation for immersing himself in his roles.

Jennifer Lawrence won the Oscar for best actress for her role as a troubled young widow in Silver Linings Playbook. The 22-year-old actress, who stumbled over her dress on her way to the stage, joked: "You guys are just standing up because you feel bad that I fell over and that's embarrassing."

Surveying the huge audience in Hollywood's Dolby Theatre, she added: "This is nuts." It was the first Oscar win for Lawrence, who was previously nominated for best actress in 2011 for her performance in Winter's Bone.

Anne Hathaway won the Oscar for best supporting actress for her role as tragic factory worker Fantine in movie musical Les Miserables.

With her cropped hair and gaunt face, Hathaway's teary version of I Dreamed a Dream had made her an Oscar favourite. "It came true," the actress said when she collected her statuette.

Continue reading the main story

"Start Quote

It came true."

End Quote Anne Hathaway on her best supporting actress win

Hathaway's Oscar was her first, the actress having been previously nominated in 2008 for Rachel Getting Married.

Hathaway said: "Here's hoping that someday in the not too distant future, the misfortunes of Fantine will only be found in stories and not in real life."

British singer Adele won the Oscar for best original song for her Bond theme Skyfall, which she also performed during the show.

She struggled through tears to thank the Bond producers and her co-writer Paul Epworth, who collected the award alongside her.

Ang Lee won his second Oscar for directing Life of Pi, the adaption of Yann Martel's fantasy novel about a boy stranded in a lifeboat with a Bengal tiger. The film won four Oscars in total, more than any other film.

The Taiwanese-born director, who won previously for Brokeback Mountain (2006), exclaimed: "Thank you, movie god!"

Life of Pi picked up two Oscars in the early stages of the awards for cinematography and visual effects.

Cinematographer Claudio Miranda admitted in an emotional acceptance speech: "This movie was quite a beast to make." Later, Mychael Danna picked up the statuette for Life of Pi's original score.

Christoph Waltz won his second Oscar for best supporting actor in a Quentin Tarantino film, this time as a German bounty hunter in the slave revenge story Django Unchained.

Picking up the first award of the night, Waltz offered thanks to his character Dr King Schultz and to "his creator and the creator of his awe-inspiring world, Quentin Tarantino."

The Austrian actor won his first Oscar as a Nazi colonel in Tarantino's Inglourious Basterds in 2010.

Tarantino won the original screenplay prize for Django Unchained, adding to the Oscar he won for writing Pulp Fiction in 1994. "I have to cast the right people to make those characters come alive and boy this time did I do it," he said.

The best adapted screenplay Oscar went to Chris Terrio for Ben Affleck's Iran-set siege thriller Argo.

The best short animated film category was won by Paperman, while Pixar's Scottish adventure Brave won best animated feature.

The award for costume design went to Briton Jacqueline Durran for Anna Karenina. She described the win as "completely overwhelming" and paid tribute to her children who were "fast asleep in England".

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Adele: "Mum, I love you, baby"

The make-up and hairstyling award went to fellow Brits Lisa Westcott and Julie Dartnell for Les Miserables. Tom Hooper's musical also picked up the Oscar for sound mixing.

Unusually, there was a tie in the sound editing category - the Oscar was shared by Zero Dark Thirty and Skyfall.

Searching for Sugar Man, which tells the story of musician Rodriguez who disappeared from public view in the early 1970s but developed a cult following in South Africa, won the Oscar for best documentary.

Producer Simon Chinn said: "Rodriguez isn't here tonight because he didn't want to take any of the credit himself."

Austrian drama Amour won the Oscar for best foreign language film.

The French-language film, directed by Michael Haneke, portrays the indignities of an elderly Parisian couple - Anne and Georges - as they cope with Anne's wish to die after a stroke.

Host Seth MacFarlane kicked off the ceremony at the Dolby Theatre in Los Angeles with the quip: "I honestly cannot believe I'm here. It's an honour that everyone else said 'no'".

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Watch the stars arrive at the 2013 Academy Awards

After an exchange with William Shatner, who appeared as Star Trek's Captain Kirk, the Family Guy creator launched into a satirical song about topless appearances by actresses in the movies.

Almost an hour into the three-and-a-half hour show, Halle Berry introduced a tribute to the James Bond franchise, followed by Dame Shirley Bassey who sang her theme song to the 1960s Bond classic Goldfinger.

The show also featured a salute to movie musicals of the past decade, with Chicago Oscar-winner Catherine Zeta-Jones and Dreamgirls winner Jennifer Hudson joining Les Miserables cast members that included Hugh Jackman, Anne Hathaway, Russell Crowe, Helena Bonham Carter and Amanda Seyfried.

During the section of the show that pays tribute to those who died in 2012, Barbra Streisand sang the late Marvin Hamlisch's The Way We Were, from the 1973 romantic drama in which she starred with Robert Redford. It was Streisand's first Oscars performance for 36 years.

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Sterling falls on loss of AAA rating

25 February 2013 Last updated at 03:25 ET Continue reading the main story

Sterling fell during trading in Asia as financial markets reacted to the loss of Britain's top AAA credit rating.

The pound fell to a 31-month low against the dollar and a 16-month low against the euro.

Further falls are expected when markets open in Europe amid concerns that the credit downgrade points to further problems for UK economic recovery.

Ratings agency Moody's made the downgrade on Friday evening, the first cut since the 1970s.

The value of sterling has been edging down for several weeks following concerns about the worsening outlook for the UK economy and speculation that the AAA rating was under threat.

In trade in Asia on Monday, it fell to as low as $1.5073. Against the euro it was 1.145 euros, making a euro worth 87.3 pence. As trading began in Europe, it moved back up to $1.5158.

The government has played down Moody's move, but Labour described it as a "humiliation" for the coalition, and said ministers must change course.

The pound fell late on Friday after the downgrade, with Moody's warning that growth would "remain sluggish" over the next few years.

Moody's also said the government's debt reduction programme faced significant "challenges".

Continue reading the main story

The prospect of the pound being weaker is actually very bad news for the economic recovery and very bad news for families who are already struggling "

End Quote Rachel Reeves MP Shadow chief secretary to the Treasury

Business Secretary Vince Cable dismissed the downgrade as "largely symbolic". Mr Cable likened credit ratings agencies to "tipsters" and part of the "background noise we have to take into account", suggesting they had a "pretty bad record" on economic and corporate forecasting.

He said the US and France had both survived similar cuts to their ratings in the past.

"In terms of the real economy, there is no reason why the downgrade should have any impact... these things do not necessarily affect the real economy but they do reflect the fact that we are going through a very difficult time," he said.

A weaker pound, while making exports cheaper, is also likely to push up the cost of imports and put upward pressure on inflation.

Shadow chief secretary to the Treasury, Rachel Reeves, said if the downgrading affects the value of the pound people could really start to suffer.

She told the BBC on Monday: "I think the prospect of the pound being weaker is actually very bad news for the economic recovery and very bad news for families who are already struggling with rising gas and electricity prices, rising petrol prices, rising transport prices and for pensioners as well who've seen those essentials go up it's really, really tough for them right now."

'Difficult time'

Former Conservative chancellor Ken Clarke said the coalition should "stick to" its policy, adding: "I think the way in which we will recover confidence is making clear we're a strong firm government, that the strategy we're on is the one that is eventually going to get things better and that the alternatives frankly are a bit odd."

The UK is at risk of slipping back into recession for the third time since 2008.

The economy grew in the third quarter of last year, boosted by the impact of the Olympics, but shrunk again by 0.3% in the last three months of 2012 and would enter a triple dip recession if it contracted in the first quarter of 2013.

Germany and Canada are the only major economies to currently have a top AAA rating, as much of the world has been shaken by the financial crisis of 2008 and its subsequent debt crises.

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Clegg denies Lord Rennard cover-up

25 February 2013 Last updated at 03:32 ET

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Nick Clegg: "I am angry and outraged at the suggestion that I would not have acted if these allegations had been put to me"

Lib Dem leader Nick Clegg has denied claims of a cover-up over the alleged inappropriate behaviour of the party's former chief executive, Lord Rennard.

Mr Clegg said he was made aware in 2008 of "indirect and non-specific concerns" about inappropriate behaviour towards women by the peer.

The deputy PM said his office acted to deal with the allegations, which have been strongly denied by Lord Rennard.

But party president Tim Farron told the BBC "we screwed this up a a party."

The issue comes as the Lib Dems prepare to defend the seat of Eastleigh in Hampshire on Thursday, in a by-election caused by the resignation of Chris Huhne.

Mr Clegg told BBC Radio Solent that he had acted on "general concerns" expressed about Lord Rennard's conduct in 2008 but none of the women concerned, including one who worked in his office, had raised specific allegations with him personally at the time.

"I have nothing to hide. The party has nothing to hide. We have to listen to the women who feel they were not listened to and to get to the truth."

'Half-truths and slurs'

On Thursday and Friday, Channel 4 News broadcast allegations by four women of sexual impropriety by Lord Rennard in incidents spanning several years, the first in 2003.

Continue reading the main story

Analysis

Nick Clegg believes the timing of these allegations - not the allegations themselves - are an attempt to undermine his leadership and dent his party's prospects in a crucial by-election.

Hence the strong denial that he was involved in any cover-up.

But his statement was politically risky - because he had to say something about what he knew and when.

That meant admitting that he had heard of "non-specific concerns" about Lord Rennard's conduct five years ago.

But he insists that unless specific allegations were brought to his attention, there really was a limit to what he could do.

His critics will say he perhaps should have been more curious.

The Lib Dems say this issue is a sensitive one and should not be treated as a political football.

But in denying a cover up, it might be seen as something of an own goal by Nick Clegg not to take media questions on his statement.

And Labour have certainly entered the political arena by calling for an independent inquiry.

Some reports questioned if Mr Clegg, who was on holiday in Spain when the story surfaced, had known of the claims years ago.

Liberal Democrat deputy leader Simon Hughes, who was the party's president between 2004 and 2008, said it "was not the case that the party at senior level received specific allegations at that time".

"I can independently attest there were no allegations that came specifically or generally about the then chief executive," he told the BBC.

"I saw nothing and heard nothing that suggested there had been inappropriate behaviour."

In a statement on Sunday, Mr Clegg, who became party leader in 2007, denied he was involved in a cover-up, and emphasised he had not known about the specific allegations until the first Channel 4 broadcast.

"I totally reject the insidious suggestion that my office or I are responsible in any way for a deliberate cover-up... in the meantime, I will not stand by and allow my party to be subject to a show trial of innuendo, half-truths and slurs," he said.

He said the "concerns" had been put to Lord Rennard in 2008 by his then-chief of staff Danny Alexander, who "warned him that any such behaviour was wholly unacceptable". But Lord Rennard "categorically denied that he had behaved inappropriately and he continues to do so", said Mr Clegg.

'Took action'

The Lib Dems are now conducting two inquiries - one into the specific complaints against Lord Rennard, and the other - which will be independently chaired - into how the allegations were handled in the past.

The inquiry under the party's disciplinary procedures will also look at whether Lord Rennard stood down in 2009, after six years as chief executive, for reasons other than the health grounds stated at the time.

Continue reading the main story

Profile: Lord Rennard

Chris Rennard was born in Liverpool in 1960, and was an active Liberal Party member in his teens and later as chairman of the University Liberals and Social Democrats at Liverpool University.

He went on to become deputy chairman of the Liverpool Liberal Party, organising many of the party's successful election campaigns.

He was the most successful Liberal agent in the country while working in the Liverpool Mossley Hill constituency of David Alton (now Lord Alton of Liverpool), helping achieve a winning 14% swing against the Conservatives in 1983.

A key member of many Liberal/Alliance by-election campaign teams in the 80s, he also wrote party publications on campaigning.

In 1989, he was made an MBE, married Ann McTegart, and was appointed the Liberal Democrats' director of campaigns and elections.

In the 1997 general election, he oversaw the campaign which more than doubled the party's MPs - from 18 to 46. He also directed the 2001 and 2005 campaigns.

As party chief executive from 2003 to 2009, he also chaired the general election campaign from summer 2006 until he stood down.

Source: Liberal Democrats website

Speaking on Monday, Mr Clegg said the party had acted quickly after the specific allegations emerged, adding that he "hoped and believed that people can have confidence in the investigations we have launched".

In the face of demands for "instant justice", he said the party must follow "due process" in looking into the complaints but he said he suspected the investigations would find that the party's procedures may have been "flawed".

Shadow equalities minister Kate Green said: "Nick Clegg's statement raises more questions than it answers... Only with a fully independent investigation can the public have confidence that the truth will prevail and lessons learned for the future."

Two women told Channel 4 Lord Rennard had abused his position by inappropriately touching and propositioning them.

One of the women said she had spoken to two senior party figures about her claims, but said no action had been taken. Allegations from more women were broadcast on Friday.

"Gradually his hand started to rub the outside of my leg," one of the women - a very active member of the Lib Dems - told Channel 4.

"I thought at first he'd just brushed against me. Then I moved away and it happened again. And he moved closer - and I moved away again. And he moved closer, and he just kept brushing parts of me that I didn't want to be brushed."

Mr Clegg's former parliamentary aide, Jo Swinson, and now equalities minister, has said she "took action" after some women had confided in her, but she has not specified what form that action took.

The Mail on Sunday reported that one of the women who came forward to Channel 4 News had discussed the allegations with a friend on Facebook in January 2009.

"I just don't know how nick can know and not do anything.. :-( makes me very sad," she wrote, according to the paper.

Lord Rennard, who was also a key strategist and adviser to a succession of party leaders, said on Friday he was "deeply shocked" about the allegations and said they were a "total distortion" of his character.

The peer said he knew of no complaints against him in his 27 years working for the party, but he has temporarily stood aside from the Lib Dems' group in the Lords to avoid "embarrassment" to the party.

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Three dead in suspected CO poisoning

23 February 2013 Last updated at 15:55 ET

An elderly couple and their daughter have died from suspected carbon monoxide poisoning at a caravan park.

Firefighters from Camborne and a specialist hazardous material advisor attended the property at Tremarle Home Park, North Roskear, Camborne.

Cornwall Fire and Rescue Service said the alarm was raised about 13:00 GMT.

Carbon monoxide (CO) poisoning is thought to have been the cause of a woman's death in St Ives, Cornwall, earlier this month.

Insp David Eldridge of Devon and Cornwall Police said: "Shortly before 1pm this afternoon, we were called to a caravan park near Camborne in Cornwall, where a helper had been unable to get a reply from an elderly couple who lived in the caravan.

Forced entry

"We were able to see that there was a figure sat in a chair but they were unresponsive to knocks at the door.

"Cornwall Fire and Rescue were called. They forced entry into the property and found that the three occupants were all dead."

Camborne Town Council member David Biggs said the deaths were an "appalling tragedy".

He said: "Tremarle Park is a residential caravan site and has provided homes for people for many years.

"It's a well established facility and is very well run. It was a shock to learn that three people have died there."

An investigation into what caused the deaths is under way, but the incident is not being treated as suspicious.

CO is a colourless, odourless gas produced by the incomplete burning of fuels, including gas, oil, wood and coal. Inhaling it reduces the blood's ability to carry oxygen and can be fatal.

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Foreign doctors 'must speak English'

23 February 2013 Last updated at 20:59 ET By James Gallagher Health and science reporter, BBC News

Foreign doctors wanting to treat NHS patients in England will have to prove they have the necessary English skills, the government has confirmed.

Concerns were raised after a German doctor, Dr Daniel Ubani, gave a patient a fatal overdose on his first and only shift in the UK.

He had earlier been rejected for work because of poor English skills.

From April there will be a legal duty to ensure a doctor's English is up to scratch before they are employed.

Foreign doctors will have to prove they can speak a "necessary level of English" before they are allowed to treat patients in hospitals or in GP surgeries, the Department of Health said.

Dr Ubani had been refused work by Leeds Primary Care Trust, but was later employed in Cambridgeshire.

From April, there will be a national list of GPs to prevent doctors being rejected in one part of the country and then cropping up somewhere else. GPs will have to prove their language skills before being put on the list.

Health minister Dr Dan Poulter said the measures were about protecting patients, who "should be able to understand and be understood by their doctor if we are to give them the best care they deserve".

"These new checks will ensure that all doctors who want to work in the NHS can speak proficient English and to prevent those who can't from treating patients," he said.

New powers for the body which regulates doctors in the UK - the General Medical Council - are also being discussed. A change of law could give it powers to test the communication skills of doctors from within the EU as it already can for non-EU doctors.

Niall Dickson, chief executive of the GMC, said tighter rules would "strengthen patient safety".

He added: "Our position is clear - patients must be confident that the doctor who treats them has the right communications skills to do the job.

"If doctors cannot speak English to a safe standard then the GMC must be able to protect patients by preventing them from practising in the UK.

"At present we can do that for doctors who have qualified outside Europe but we cannot do it for doctors within the European Union.

"We have been working hard for some time to close this loophole in UK legislation which has caused so much concern to patients and their families and we are delighted that the government has decided to act."

Katherine Murphy, chief executive of the Patients Association, said: "New language checks for doctors are welcome, and long overdue.

"Lessons from the past have served to highlight the tragic consequences of poor language skills."

Dean Royles, director of the NHS Employers organisation, said foreign doctors had made an "invaluable contribution" but safety needed to be the "top priority".

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Cardinal 'accused over behaviour'

23 February 2013 Last updated at 22:25 ET

Britain's senior Roman Catholic cleric has been reported to the Vatican over historical allegations of inappropriate behaviour, a newspaper has said.

The Observer said three priests and one former priest made the complaint against Cardinal Keith O'Brien, 74, leader of the Scottish Catholic Church.

They have also demanded his immediate resignation, the paper said.

A statement from the Scottish Catholic Church said Cardinal O'Brien contested the claims and was taking legal advice.

The Observer newspaper reported the cardinal was accused of behaving inappropriately towards priests and seminarians in his care. The allegations date back to the 1980s.

The paper reported that the three priests and a former priest wrote to the Pope's representative to Britain, Antonio Mennini, giving details of what they claimed was the cardinal's inappropriate behaviour towards them.

BBC religious affairs correspondent Robert Pigott says one of the four men claimed he resigned as a priest when Cardinal O'Brien was first made a bishop, in order to "preserve his own integrity".

Pope vote

Cardinal O'Brien, who was born in Ballycastle, Northern Ireland, has been the Archbishop of St Andrews and Edinburgh since 1985. He is also the president of the Bishops' Conference of Scotland.

He stood down from some front-line duties in the Catholic Church in Scotland last year due to his age. He is due to retire next month.

Cardinal O'Brien has been an outspoken opponent of plans to legalise same-sex marriage and was named "bigot of the year" by gay rights charity Stonewall last November, prompting a storm of controversy.

Before his retirement, the cardinal will have a say in who succeeds Pope Benedict XVI when the pontiff stands down on 28 February. Cardinal O'Brien is Britain's only representative in the election for a successor.

In an interview with BBC Scotland, broadcast on Friday, he said he had not yet decided who should be elected as Pope during the conclave, which is expected to be held next month.

The cardinal said he believed it might be time for a younger pontiff from part of the developing world, where the Catholic faith is thriving.

He also said he believed priests should be able to marry and have children if they wished to do so.

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Designer of TV's Daleks dies at 84

24 February 2013 Last updated at 00:18 ET

The designer of the Daleks from the BBC's Doctor Who has died aged 84 after a short illness, his daughter has said.

Former BBC designer Ray Cusick died of heart failure in his sleep on Thursday, Claire Heawood added.

The Daleks became the iconic villains in cult science fiction series Doctor Who, which is due to mark its 50th anniversary with events this year.

Mr Cusick, from Horsham, West Sussex, leaves two daughters and seven grandchildren, his family said.

The official Doctor Who Magazine tweeted: "It's with great sadness that we report the death of Ray Cusick - the designer of the Daleks. Half a century on, his iconic design lives on."

Doctor Who actor and writer Mark Gatiss tweeted: "Farewell to the great Ray Cusick. His passing is especially sad in this anniversary year but his creation remains immortal. Daleks forever!"

'System of logic'

The designer gave form to the concept of the Daleks, created by Doctor Who screenwriter Terry Nation and which first appeared in series one of Doctor Who nearly 50 years ago.

Continue reading the main story

People say I was inspired by a pepper pot - but it could have been the salt pot I picked up"

End Quote Ray Cusick Designer of the Daleks

In the show, the race of Daleks was said to have been developed by a scientist to survive a war on their home planet of Skaro. However, the scientist was later killed by his own creation.

The Daleks, mutants encased in studded, tank-like machinery that appear to glide over the ground, became a cultural sensation, with generations growing to love their famous electronic command of "Exterminate".

In a 2008 episode of BBC Three's Doctor Who Confidential, Mr Cusick visited the BBC props department and explained his inspiration for the design of the Daleks, which has changed very little over the years.

"People do say I was inspired by a pepper pot - but I always think 'If that's all it takes to become a designer then it's a doddle'."

He explained that, in fact, the pepper pot detail came from a lunch with Bill Roberts, the special effects expert who would make the Daleks, when Mr Cusick picked up a pepper pot and moved it around the table, telling him: "It's going to move like that - no visible means."

"Ever since then people say I was inspired by a pepper pot - but it could have been the salt pot I picked up," he said.

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He went on: "When I'm asked what I was inspired by I suppose it was really a system of logic because I realised that you've got to have an operator to operate them. If you had anything mechanical, 10 to one on the take it would go wrong, so you've got a human being in there who would be absolutely totally reliable...

"I then thought 'Well, the operator's got to sit down', [so I] drew a seat, ergonomic height, 18in, got the operator down, and then drew round him. That's how the basic shape appeared."

David Graham, who created the original voice of the Daleks, said the villains' success in frightening generations of viewers was a combination of "brilliant design" and the synthesised voice added to it.

He said Mr Cusick was responsible for "one of the most iconic designs of television sci-fi".

"They captured the imagination of so many people. It was a wonderful thing," he told BBC Radio 5 live's Stephen Nolan show.

Nicholas Briggs, who voices the modern Daleks, said the show would not be the same without them.

"Extinction is not an option - If you say Doctor Who to someone in the street about the second thing they're going to say is 'Exterminate'," he said.

"Lots of my friends who are not Doctor Who fans think that the programme is 'Doctor Who and the Daleks' - that surely the Daleks are in it all the time - which isn't true but that is the impression.

"That's the brilliance of the creation of the Daleks. They've made an indelible stamp on the series really."

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Clegg 'knew nothing' of peer claims

24 February 2013 Last updated at 02:53 ET

The Liberal Democrats have "categorically" denied claims leader Nick Clegg knew of allegations of misconduct against the party's former chief executive, Lord Rennard.

The party launched two inquiries after Channel 4 News aired claims of sexual impropriety towards women by the peer.

Aides to the deputy PM have insisted he only learned of the complaints after the broadcast. Some press reports suggest he was told four years ago.

Lord Rennard denies the allegations.

The Lib Dems have launched an internal investigation into the allegations against Lord Rennard under the party's disciplinary procedures.

Party president Tim Farron is also reviewing the way the party has dealt with allegations of this sort in the past.

On Thursday, Channel 4 News broadcast allegations by two women of sexual impropriety over several years by Lord Rennard.

The women told the news programme he abused his position for years by inappropriately touching and propositioning them.

'Brushing parts of me'

"Gradually his hand started to rub the outside of my leg," one of the women - a very active member of the Lib Dems - told Channel 4.

Continue reading the main story

He wants to get to the bottom of this and the complaints. These are very serious allegations"

End Quote Spokesman for Nick Clegg

"I thought at first he'd just brushed against me. Then I moved away and it happened again. And he moved closer - and I moved away again. And he moved closer, and he just kept brushing parts of me that I didn't want to be brushed."

One of the women said she had spoken to two senior party figures about her claims, but said no action was taken. Allegations from more women were broadcast on Friday.

Following newspaper reports that Mr Clegg had been told about allegations concerning Lord Rennard, a Lib Dem spokesman said: "Nick categorically did not know about these allegations."

The Mail on Sunday reported that one of the women who came forward to Channel 4 News discussed the allegations with a friend on Facebook in January 2009.

"I just don't know how nick can know and not do anything.. :-( makes me very sad," the paper said she posted.

The spokesman said: "There are no basis for claims that Nick knew - there is no way of verifying these allegations or checking who these people are."

Mr Clegg has been on holiday on Spain since the story surfaced, but is likely to give his response on Sunday.

The spokesman said Mr Clegg was happy to give evidence and participate in the two inquiries.

"He wants to get to the bottom of this and the complaints. These are very serious allegations," he said.

Mr Clegg's former Parliamentary aide, Jo Swinson, and now equalities minister, has said she "took action" after some women had confided in her, but she has not specified what form that action took. She said she welcomed the review so that "lessons can be learned".

'Deeply shocked'

Announcing the inquiries on Saturday, Lib Dem chief executive Tim Gordon expressed regret that "it appears that we did not fully live up to our political ideals" when handling complaints about Lord Rennard.

He said a five-strong panel of party figures - including at least three women - would be assembled to conduct a "thorough and in-depth" investigation into the allegations.

Mr Gordon also said he was establishing a review of the party's procedures for dealing with such issues, which would involve non-party members and advice from external professional sources.

It is thought the inquiries could take three months to complete. Their proceedings would be confidential but the results would be made public, the Lib Dems said.

The inquiry will also look at whether Lord Rennard stood down as chief executive in 2009 for reasons other than that he gave at the time of health grounds.

Mr Gordon said: "We will not tolerate harassment in this party... we reaffirm not only our commitment to equality provisions but also to taking appropriate disciplinary sanctions against any employee or member who is found, following due process, to have engaged in harassment or impermissible discrimination."

Lord Rennard, a key party strategist and adviser to a succession of Lib Dem leaders, said he was "deeply shocked" about the allegations and said they were a "total distortion" of his character.

The peer said he knew of no complaints against him in his 27 years working for the party, but he has temporarily stood aside from the Lib Dems' group in the Lords to avoid "embarrassment" to the party.

The latest statement issued on his behalf said: "I absolutely deny any suggestion of improper touching, nor did I invite a woman to join me in my room."

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UKIP MEP defects to Conservatives

22 February 2013 Last updated at 17:52 ET

A senior member of the UK Independence Party has said she is leaving the party to join the Conservatives.

Marta Andreasen, a South East region MEP, sent her resignation letter to UKIP leader Nigel Farage on Friday.

It comes two weeks after she accused the UKIP leader of bullying and being "anti-women" and "a Stalinist" and threatened to leave the party.

In response, Mr Farage said the Tories "deserve what is coming to them" and added: "The woman is impossible."

Ms Andreasen, 58, said resigning from UKIP to join the Conservatives was not a decision that she took lightly.

In an open letter expressing her dissatisfaction with UKIP, she accused Mr Farage of treating any views other than his own with contempt.

Ms Andreasen said she did not believe the party could offer "real leadership".

Continue reading the main story

The woman is impossible"

End Quote Nigel Farage UKIP leader

She said Mr Farage surrounded himself with "an old boys club of like-minded sycophants", whereas Conservative leader David Cameron had shown "he can listen, adapt and do what is right for the country, not just for personal gain".

The MEP said the prime minster's speech on Britain's relationship with the EU last month had convinced her the Conservatives were the "true referendum party".

Conservative Party Chairman Grant Shapps said he was "delighted" to welcome her to his party.

"She brings a wealth of experience - and a dedication to fight for what's best for the British people in Europe," he said.

Meanwhile, in a statement issued on Friday, the UKIP leader said: "Having left the OECD, the European Commission and UKIP in unpleasant circumstances, the Conservative Party deserve what is coming to them.

"The woman is impossible."

Sole female

Relations between Ms Andreasen and Mr Farage had been strained for some time, with Ms Andreasen calling for Mr Farage to quit after the party's poor performance in council elections in 2011.

Since then, UKIP's fortunes have improved and it recorded its best performance in a parliamentary by-election in Rotherham in December.

Ms Andreasen, who is Spanish but was born in Argentina, worked as an auditor and financial director for various companies before working as an accountant for the European Commission in 2002.

She later joined UKIP and was elected in 2009. She currently sits on six committees in the European Parliament.

Ms Andreasen had been UKIP's sole remaining female MEP, after Nikki Sinclaire was expelled from the party in 2010.

Ms Sinclaire later brought a sexual discrimination case against the party which was subsequently dropped.

At the time, UKIP issued a statement affirming its "opposition to discrimination on all grounds as prescribed by law and otherwise" and stressed that sexuality was "no bar to involvement or advancement" within the party.

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