China Figures Suggest Tough Landing Ahead

China's Statistics Bureau has published the country's GDP figure for the first quarter of 2015 - a growth rate of 7%.

For most Western markets that's an enviable figure. For China though, it represents the slowest growth for six years.

Yet the Chinese government says this is the "new normal". Gone are the days of double digit growth.

Vacant floor space in China

It says 7% is "within a reasonable range" and in line with controlled adjustments designed to slow the economy down to a level of sustainable growth.

China is in the midst of shifting its economy from an export-based market to one driven by domestic consumption.

Video: January: China Growth Slows to 7.4%

Since the global crash of 2008, China has been unable to rely on its exports to drive its economy.

Despite a partial recovery globally, trade growth across the world remains well below pre-crash trends. So China is trying to increase the spending power of its own people.

The question is whether the declining GDP figures over the past 18 months or so point to a controlled slowdown or hard landing.

"Slower growth should not be viewed as bad news if it means the economy is adjusting to a more sustainable path," says Andrew Colquhoun, head of Asia-Pacific Sovereigns at Fitch Ratings.

"But the adjustment needs support from consumption while the economy adapts to slower investment. It's sobering that the economy has become so reliant on construction and real estate to generate jobs."

The property market is a key risk for the Chinese economy. It makes up about 15% of GDP.

Take a look at our recent visit to a Chinese ghost city for a snapshot of the property market in China.

A breakdown of the first quarter (Q1) figures for this year is revealing too. Industrial output grew at a rate of 5.6%, down from 6.8% in the fourth quarter (Q4) of 2014.

The predicted rate for Q1 was 6.9%, so the actual rate was slower than expected. Factories were shut for some time over Chinese New Year, which falls in Q1, but analyst predictions would have taken this into account.

Video: January: Inside China's Ghost City

Retail sales in Q1 of 2015 grew 10.2%, with the prediction for 10.9%. The figure in Q4 of 2014 was 11.7%.

Given that the plan is to increase domestic consumption, this isn't a good trend.

It's also odd that retail sales would be slow during Chinese New Year when people would traditionally be shopping.

China's crackdown on corruption might be part of the explanation: the tradition of buying "gifts" (bribes) at Chinese New Year is on the decline.

A final thought. Can we trust the 7% figure? Could the true figure be different?

China's Prime Minister Li Keqiang once said that GDP figures were "for reference only". For the true figure, he said, look at things like electricity output.

Erik Britton from UK consultancy Fathom has done just that.

His firm's analysis of Chinese rail freight, electricity production and bank lending, suggests that Chinese growth is running at closer to 3%, not the 7% Beijing is boasting.

That, says Mr Britton, is a hard landing in the making.

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Oil Find Near Gatwick 'Clarified' By Owner

The company which reported a massive upgrade to an oil find near Gatwick Airport has conceded it was not in a position to properly size it up.

Last week's announcement that up to 100 billion barrels, a potentially "world-class" discovery, had been identified in the Weald Basin sparked excitement and scepticism.

That caution extended to other partners in the project, as previous estimates were as high as 40 billion and as low as 4.4 billion.

Shares in UK Oil & Gas Investments (UKOG) rose by more than 300% at one stage following its original statement last Thursday.

UKOG did not repeat the words "world class" in today's update, which was requested by the junior AIM market on which the company's shares trade.

Video: 'Effectively A Sponge Full Of Oil'

It said on Wednesday that the oil volumes in the Horse Hill-1 well in the Weald Basin, estimated by US exploration firm Nutech, "should not be considered as either contingent or prospective resources or reserves."

The company, which holds a 20% stake in the Horse Hill development, also admitted further work was needed to "prove its commerciality."

Its chairman David Lenigas had claimed last week the discovery would create "many thousands of jobs" but did say it would take a long time to begin production.

Another partner in the Weald Basin project, Solo Oil, exercised caution at the time of UKOG's upgrade.

Video: Major Oil Find Near Gatwick

Solo chief executive Neil Ritson told Sky News: "We're not actually putting out that number of a hundred billion barrels. I know that a leading academic - Professor Fraser at Imperial - is talking about 40 billion.

"Certainly those numbers are possible, but that's not where we are at the moment. It's early days."

UKOG had said last week that Nutech had estimated that recovery of the oil would be limited at between 3% and 15% of the total.

It also confirmed there would be no use of the controversial extraction method known as fracking to get access to the oil.

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EU Charges Google With Abusing Market Position

The EU has formally charged Google with abusing its search market position in Europe, leaving it open to a fine of more than $6bn.

The European Commission has been examining whether Google, which holds about 90% of the search market in Europe, has been illegally rigging its search results to favour its own services.

Tech rivals such as Microsoft, who urged the EU to bring the case, want more competition in areas like online maps, search and shopping.

EU competition commissioner Margrethe Vestager said Google has given "an unfair advantage to its own comparison shopping service".

Rivals object to the firm placing adverts for its Google Shopping service ahead of other links in relevant searches.

The EU has issued a statement of objections which Google has 10 weeks to respond to before action can be taken.

Ms Vestager said that a separate antitrust investigation has been ordered into Google's mobile operating system Android.

She said: "In the case of Google I am concerned that the company has given an unfair advantage to its own comparison shopping service, in breach of EU antitrust rules.

"Google now has the opportunity to convince the Commission to the contrary. However, if the investigation confirmed our concerns, Google would have to face the legal consequences and change the way it does business in Europe."

An internal Google memo informed staff that the company believes it has a "strong case". In a blog post the tech giant used a series of graphs to show that competition continues to thrive.

The company has repeatedly denied any wrongdoing. It could face an eventual fine of up to 10% of its worldwide turnover, which reached $66bn (£44.7bn) in 2014.

The filing of charges may increase pressure on Google to settle, to avoid a potentially damaging case and massive fine resulting from the allegations.

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PPI Scandal: Clydesdale Handed £20.7m Fine

A £20.7m fine has been slapped on Clydesdale Bank for failures in its handling of payment protection insurance (PPI) complaints and attempts to mislead the City regulator.

The Financial Conduct Authority (FCA) said the penalty was the largest it had imposed for failings relating to PPI - a product mis-sold by the financial services industry that has cost it billions in redress and administration to date.

The watchdog said the fine partly reflected "inappropriate policies" introduced in mid-2011 by Clydesdale which meant its PPI complaint handlers were "not taking into account all relevant documents when deciding how to deal with complaints".

The statement continued: "In addition, between May 2012 and June 2013, Clydesdale provided false information to the Financial Ombudsman Service in response to requests for evidence of the records Clydesdale held on PPI policies sold to individual customers.

"A team within Clydesdale's PPI complaint handling operation altered certain system print outs (in a small number of cases) to make it look as if Clydesdale held no relevant documents and deleted all PPI information from a separate print out listing the products sold to the customer.

"These practices were not known to or authorised by Clydesdale's PPI leadership team or more senior management."

The regulator said that as a result of Clydesdale's conduct, of the 126,600 PPI complaints decided between May 2011 and July 2013, up to 42,200 may have been rejected unfairly and up to 50,900 upheld complaints may have resulted in inadequate redress.

The FCA confirmed the bank would be contacting customers affected as Clydesdale continued to review past cases.

Georgina Philippou, acting director of enforcement and market oversight at the FCA, said: "Clydesdale's failings were unacceptable and fell well below the standard the FCA expects.

"The fact that Clydesdale misled the Financial Ombudsman by providing false information about the information it held is particularly serious and this is reflected in the size of the fine."

Clydesdale qualified for a 30% reduction on the size of the fine because it settled the case early, the FCA said.

Acting chief executive of Clydesdale and Yorkshire Banks, Debbie Crosbie, said: "In 2011 we introduced changes to our policies and procedures that were designed to help us respond to PPI complaints.

"A number of these changes were inappropriate and have disadvantaged some of our customers. We got this wrong and I am sorry for that.

"We deeply regret any instance which led to the Financial Ombudsman Service receiving incorrect or incomplete information from us.

"These practices were not authorised or condoned by the Banks. As soon as this issue was discovered, we took immediate steps to stop it; we made the regulator aware and rapidly introduced strict new monitoring procedures to prevent any recurrence."

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Right To Buy: What Is It And How Does It Work?

David Cameron has announced a future Tory government would give 1.3 million housing association tenants the chance to buy their homes.

:: So what is Right to Buy?

The existing scheme allows council tenants to buy their home at a discount of up to 70% - a maximum of £102,700 in London and £77,000 across the rest of of the country.

:: Full Coverage Of General Election 2015

The Conservatives have made extending this to 1.3 million housing association tenants a centrepiece of their manifesto for the May election.

Video: May On Home-Owning 'Dream'

:: This all seems familiar?

It is indeed. The scheme was trailblazed by Margaret Thatcher on coming to power in 1979 with the Tories hailing it "the biggest step towards a home-owning democracy ever taken" in their 1983 manifesto.

And in extending the scheme to housing tenants, David Cameron is hoping to recapture that aspirational spirit in the face of criticism of the negative tone of the Tory campaign to date.

Unveiling the plan, the PM echoed the words of the Thatcher-era by talking of "building a property-owning democracy for generations".

:: So that's the background, how will it work?

It will be funded by requiring councils to sell off the most expensive properties when they become empty, and replacing them with more affordable social homes.

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Around 15,000 houses and flats are expected to become available in this way each year, but the Conservatives stress no one will be forced out of their home.

It has been claimed the sales would raise an estimated £4.5bn which could then be used to build between 80,000 to 170,000 new properties a year.

:: Do I hear a "but" coming here?

You do indeed. The move, unsurprisingly, is not without its critics and has been branded "deeply unfair" by housing associations.

The National Housing Federation warns it would mean using £5.8bn of taxpayers' cash to "gift" up to £100,000 to people already living in good secure homes, on some of the country's cheapest rents.

Meanwhile, the group argues it would do nothing to help the millions in private rented properties desperate to buy, or those forced to live at home with their parents because they cannot afford to rent or buy.

It points out the £5.8bn would be enough to finance 300,000 new shared ownership homes "open to everyone, not just the lucky few".

Political opponents have also waded in with Labour dismissing it as "yet another uncosted, unfunded and unbelievable announcement".

And the Tories' Lib Dem coalition partners claim the scheme would would result in longer waiting lists for homes and fewer social houses.

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PM Promises 'Good Life' For 'Working People'

David Cameron has claimed the Conservatives are the "party of the working people" as he made pledges on homeownership, £5,000 of free childcare and an income tax-free minimum wage.

Launching the Tory manifesto, Mr Cameron repeatedly made offers to voters who worked hard and wanted to get on the "good life".

Cameron and Thatcher: the "property-owning" dream

The manifesto set out measures for families from cradle to grave - identifying measures to help people over six stages of their lives.

Mr Cameron opened his speech by saying: "At the heart of this manifesto is a simple proposition. We are the party of working people, offering you security at every stage of your life."

Video: May On Home-Owning 'Dream'

He promised 30 hours of childcare for three and four-year-olds - five hours more than promised in Labour's manifesto yesterday - to help working parents.

He said if the party is returned to power, it will give 1.3 million families the chance to buy their housing association home at least a 20% discount.

Speaking at a university technical college in Swindon, Mr Cameron laid out his vision for a "property-owning democracy" echoing the phrases used in Margaret Thatcher's 1983 manifesto.

And he said the Conservatives would introduce a tax-free minimum wage, linking the minimum wage to the income tax personal allowance so the lowest paid would never have to pay tax.

He urged voters not to "waste the last five years" and let "Labour drag us back" to the past, and asked to be allowed to "finish the job".

Mr Cameron promised: "This buccaneering, world-beating, can-do country - we can do it all over again."

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:: All You Need To Know About Party Manifestos

:: Sky's Anushka Asthana On Five Things We've Learned From The Tory Manifesto

Among other measures included in the manifesto, which has the phrase "strong leadership, a clear economic plan, a better more secure future" on the cover, are:

:: Raising the personal allowance for tax to £12,500

:: Increasing the starting salary for the 40p rate to £50,000

Video: The Greens' Main Policies

:: No increase in income tax, VAT, National Insurance

:: Raising the inheritance tax threshold for family homes to £1m

:: Seven-day access to GP service

:: An annual £8bn boost for NHS funding

:: Repeal the Hunting Act

:: Increase state pension by at least 2.5% with a triple lock

:: 200,000 starter homes built

:: Committed to four-boat Trident nuclear deterrent

Mr Cameron's repeated pledges on a "good life" available to people in the UK prompted a question on whether he saw himself as the impoverished Tom and Barbara characters from the BBC sitcom, played by Felicity Kendal and Richard Briers, or the rich Margot and Jerry characters played by Penelope Keith and Paul Eddington.

To fund Right to Buy, the Conservatives would force councils to sell their most expensive properties when vacant - estimated to raise £4.5bn a year - and replace the properties sold.

However, the Housing Federation claims the cost to the taxpayer would be £5.8bn and 40 years of failure on house-building means the UK still does not have the homes needed.

Since Baroness Thatcher introduced Right to Buy in 1980, 1.88 million council properties have been sold - only 345,000 new social housing properties have been built.

Video: Ed Miliband 'Ready' To Be PM

As well as extending Right to Buy at a discount to housing association tenants, the party has promised a £1bn fund for building 400,000 new properties on brownfield sites.

Mr Cameron's claim that the Conservatives are the party for workers comes after Labour said it wanted to be seen as the fiscally responsible option for government.

:: Right To Buy: Your Questions Answered

:: Labour's Manifesto At A Glance

Conservative activists gathered for the manifesto launch were shown a video called The Note.

The video refers to the missive left for the coalition by the outgoing Labour treasury minister Liam Byrne after the 2010 election. It said: "There is no money."

But Labour has claimed the Conservatives have failed to explain properly how their measures will be funded.

The Tories say some £1.4bn a year of the funding will come from reducing the tax relief on pensions for those earning more than £150,000. Mr Cameron said their track record showed they could deliver on their pledges.

Labour leader Ed Miliband said the Conservatives were "trying to fund Right to Buy on a bounced cheque".

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Car Rental Giant To Accelerate With US Deal

By Mark Kleinman, City Editor

One of the biggest car rental operators in the UK is to snap up Auto Europe, a US rival, in a move that will create a transatlantic industry powerhouse.

Sky News understands that CarTrawler, which is based in Dublin and has been majority-owned by BC Partners for the last year, is in advanced talks about a takeover of Auto Europe, which targets Americans planning holidays overseas.

The deal, which could be announced as soon as this week, will give CarTrawler a substantial presence in the vast US market.

One source described the transaction as "transformational" for CarTrawler, whose operations include the well-known Holiday Autos brand.

Auto Europe is being acquired from Court Square, a New York-based private equity firm, and will represent an important phase of a strategy known in the private equity industry as a 'buy-and build'.

Speaking last year when BC announced its takeover of CarTrawler, Matthew Tooth, a partner at the buyout firm, said it was keen to grow the company "on a global scale".

"CarTrawler offers a truly unique proposition to its online travel partners, enabling them to optimise the revenue potential from car rental through offering end customers access to an unrivalled breadth of rental options across many suppliers," he said. 

"For suppliers, CarTrawler facilitates access to many distribution channels that would otherwise not be available."

CarTrawler's portfolio of partners includes some of the world's leading international airlines, hotel groups and online travel retailers, including Aer Lingus, Virgin Australia and Starwood Hotels.

The company's rapid growth was illustrated by its sale for well over £350m in March 2014, just two years after it had changed hands for little more than £75m.

The previous takeover of CarTrawler, by ECI Partners, another investment firm earned multimillion pound windfalls for Greg and Niall Turley, the brothers who founded the business and oversaw its expansion into more than 170 countries.

CarTrawler announced the acquisition of the online assets of Holiday Autos in 2013, buying them from Travelocity Global, which was then the parent company of Lastminute.com, the online leisure bookings company.

In 2013, CarTrawler, which has become a popular platform for companies to rent cars online, had annual bookings of around 5 million vehicles, and sales of more than £425m.

Last year's deal also saw Insight Venture Partners, another private equity group, acquire a minority stake in CarTrawler.

The value of the Auto Europe deal was unclear on Monday.

BC Partners declined to comment.

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Conservatives Promise To Cut Inheritance Tax

The Conservatives have said they will take family homes out of inheritance tax by introducing a new allowance which effectively increases the threshold for tax to £1m.

David Cameron said that if his party wins the 7 May election, parents will be offered a new £175,000 allowance to enable them to pass property on to children tax-free after they die.

For properties worth more than £2m, the allowance will be gradually tapered away so that those worth more than £2.35m do not benefit.

Full coverage: General Election 2015

Inheritance tax is currently payable at a rate of 40% on the value of an estate above the £325,000 threshold - or £650,000 if a couple takes advantage of the existing allowance.

Video: Day 14 In 60 Seconds

It is thought around 22,000 families will benefit from the move by 2020 and Mr Cameron said the costs would be paid for by a £1bn raid on pension tax relief for people earning more than £150,000.

Mr Cameron said: "We will take the family home out of inheritance tax.

"That home that you have worked and saved for belongs to you and your family.

"You should be able to pass it on to your children. And with the Conservatives, the taxman will not get his hands on it."

The Conservatives promised a £1m inheritance tax threshold in the 2010 election, but were blocked by Liberal Democrats from implementing it when in coalition.

Video: PM Outlines Tax Position

Shadow home secretary Yvette Cooper told Sky's Murnaghan programme it is the "wrong priority" and "won't affect 90% of estates".

She said: "They are talking about a £140,000 tax cut for properties that are worth around £2m at a time when you've got families still losing their homes because of the bedroom tax, at a time when pensioners and families have had to pay more VAT."

The Institute For Fiscal Studies said the change would "disproportionately" benefit those on higher incomes.

In an observation published on its website after the announcement, the IFS said: "Since the children of those with very large estates are disproportionately towards the top of the income distribution the gains from this (and in fact any) IHT cut will also go disproportionately to those towards the top of the income distribution."

Meanwhile, Labour has revealed its plans to crackdown on tax-dodgers if it wins the election, hoping to cut avoidance and evasion by at least £7.5bn a year by the middle of the next Parliament.

Video: Election: Seven Days, Seven Facts

Shadow chancellor Ed Balls said it would take a Labour government to "call time" on the Tories' "lax approach", adding that Labour would set targets for HMRC to reduce tax avoidance by at least £7.5bn a year.

He said: "We will close the loopholes the Tories won't act on, increase transparency, toughen up penalties and abolish the non-dom rules.

"And our first Budget will make sure that, following an immediate review of HMRC, it has all the powers and resources it needs to come down hard on tax avoidance and evasion."

Conservative Treasury minister David Gauke said: "Ed Miliband and Ed Balls turned a blind eye to aggressive tax avoiding and evading for 13 years when they were in charge - they were the tax avoiders' friends."

The Lib Dems have also set out their tax plans, promising "light at the end of the tunnel" with moves to eliminate Britain's deficit by 2017/18.

Video: The Faisal Files: Day 13

Nick Clegg said his plan has "a heart as well as a brain", trying to drive home his claim that his party will cut less than the Conservatives and borrow less than Labour.

Spelling out plans for a consolidation totaling £27bn by 2017/18, made up of £12bn in additional tax, £12bn in public spending reductions and £3bn in welfare cuts, Mr Clegg challenged the other parties to spell out in similar detail how they would balance the nation's books.

He said: "We are going to spread the burden of finishing the job of fixing the economy fairly across society.

"Yes that means more cuts, but it also means asking the wealthiest to pay their fare share too."

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Miliband: 'I Am Ready' To Lead Better Britain

Ed Miliband has attempted to convince voters he can be trusted with the economy pledging to cut the deficit year on year and saying: "I am ready" to lead the country.

The Labour leader promised to get the Budget back into surplus "as soon as possible" and said that everything listed in the party's manifesto could be paid for.

The manifesto, launched by Mr Miliband on the set of Coronation Street and titled Britain Can Be Better, promised to "secure the family finances of the working people of Britain".

:: Full Coverage Of General Election 2015

:: All You Need To Know About Party Manifestos

Video: Labour's Manifesto Pledge On Tax

Mr Miliband said the manifesto was not a "shopping list of proposals"  as he sought to persuade a sceptical public he could be trusted with the nation's finances by introducing a "triple lock" of responsibility.

He said a Labour Government would: cut the deficit every year, that every measure contained in the manifesto was fully funded and Labour would meet fiscal rules with the national debt falling.

Mr Miliband attempted to capitalise on the Conservatives' refusal to spell out how they would find the extra £8bn of funding for the NHS and said David Cameron's party had proposed £20bn of unfunded commitments.

He said: "Nothing is more dangerous to our NHS than pretending you'll be able to protect it without being able to say where the money's coming from. You can't fund the NHS with an IOU and the Conservative Party need to learn that."

But Mr Miliband made some eye-catching pledges in the 84-page Labour Party Manifesto 2015 including:

:: Wrap around childcare - primary schools to provide care from 8am-6pm

:: Raising the minimum wage to £8 an hour

:: Abolishing non-dom rules, abolishing zero-hour contracts

:: £2.5bn Time to Care fund for NHS off back of mansion tax and tobacco firm levy

::  Increase income tax for those earning more than £150,000

:: No increase in income tax, VAT, National Insurance for those on basic and higher rate income tax

:: Scrap winter fuel allowance for pensioners with an income of more than £42,000 a year

:: Freeze energy prices

:: Tighten tax avoidance rules to yield £7.5bn a year

:: Cut tuition fees to £6,000

:: More powers for the Welsh and Scottish Parliament

:: Extend the vote to 16-year-olds

With 24 days to go until the General Election, Mr Miliband said: "The reason we can make these commitments is because we will make sure those with the broadest shoulders bear the greatest burden.

"So we'll reverse David Cameron's tax cut for millionaires to help pay down the deficit.

"We'll crack down on hedge funds who avoid paying their fair share. We'll stop HMRC operating double standards.

"And we'll do something that no government has done for over 200 years - we'll say enough is enough to the people who live here, work here, send their kids to school here but don't want to pay taxes here and we will abolish the non-dom rule."

:: Ed Miliband Profile

:: Live Blog: General Election 2015

Polls show that voters trust Labour less with the economy than the Conservatives and Mr Miliband has struggled to play down forgetting to mention the deficit in his conference speech.

Labour says it will have the current Budget in surplus by the end of the next parliament, however, the Conservatives and the Liberal Democrats have said they will do so by 2017/18.

In an answer to recent criticism that Labour is against big business and wealth-creators, Mr Miliband said Labour was "pro business but not pro business as usual".

He said Labour would champion small and medium-sized businesses with a cut in business rates to help them create the jobs, wealth and profits of the future.

Mr Miliband also said he would champion the little man against the giant energy firms and painted himself as the man who would stand up for the little people against the powerful interests.

He said: "With me as Prime Minister, no powerful interest, will outweigh the interests of working people."

The Labour leader said the last four-and-a-half years had tested whether he was ready to become leader.

He said: "I am ready. Ready to put an end to the tired old idea that as long as we look after the rich and powerful we will all be OK. Ready to put into practice the truth that it is only when working people succeed, that Britain succeeds."

The Institute for Fiscal Studies (IFS) has said that Labour's plans would leave the deficit at £30bn - it currently stands at £90bn - by 2020.

Speaking after Mr Miliband's speech, IFS director Paul Johnson told The Daily Politics: "The Labour party have repeated what they have said over the last several months, which is that they want to get to get to current budget balanced as soon as they can in the next parliament.

"Now, it really, really matters how soon that is. If they want to get there within three years, which is sort of what they might be thought to have signed up to in the fiscal responsibility charter earlier this year, that's a really significant amount of spending cuts or tax rises over the next three years.

"If they are happy to wait til the end of the parliament, which is also sort of consistent with what they signed up to, then actually we don't need any spending cuts over the next five years.

"So, which one of those paths really, really matters. And we've got no additional clarity today about whether we would be signing up to additional spending cuts or tax rises or not."

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UK Holidaymakers Being Conned Out Of Millions

A warning has been issued to those booking holidays online, as it is revealed that British holidaymakers were conned out of £2.2m last year.

Criminal groups have targeted online booking firms to steal cash from unsuspecting customers and many only find out they have been conned when they arrive at their hotel and find no record of their booking.

A report from the National Fraud Intelligence Bureau found that in one case a holidaymaker lost £62,000 in a fraud relating to a dodgy timeshare scheme.

But losses are not just financial, with a third of victims saying the fraud has a substantial impact on their health as well as their finances and 167 victims said the impact of the crime was so severe they needed medical treatment.

The scams see a spike in the summer months and in December, which mean that many ruined trips will be for those trying to visit loved ones for Christmas.

The report shows that, during a 12-month period, 1,569 cases of holiday booking fraud were reported to the police action fraud team, with most relating to plane tickets, hacking accounts, posting fake adverts online and setting up bogus websites.

Sports and religious trips were an attractive target because of limited availability and higher prices and the 2014 Commonwealth Games in Glasgow and World Cup in Brazil were also targeted, with many people paying for fake tickets or accommodation.

Those aged between 30 and 49 were most often targeted and most victims were defrauded by methods such as bank transfers or cash with no means of getting their money back. Only a small number paid by credit or debit card where some form of redress is available.

Mark Tanzer, ABTA chief executive, said: "Holiday fraud is a particularly distressing form of fraud as the loss to the victim is not just financial but it can also have a high emotional impact.

"Many victims are unable to get away on a long-awaited holiday or visit to loved ones and the financial loss is accompanied by a personal loss. 

"We would also encourage anyone who has been the victim of a travel-related fraud to report it so that the police can build up a case, catch the perpetrators and prevent other unsuspecting people from falling victim."

Detective chief superintendent Dave Clark, the City of London Police head of economic crime, said: "Online shoppers must be vigilant and conduct all the necessary checks before booking a break to ensure the conmen are kept at bay."

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