House Prices Surge For Fourth Month In A Row

House prices rose for the fourth consecutive month in August, as Government schemes and improved mortgage lending continued to fuel the revival in the property market.

Property values rose by 3.5% compared with a year ago, taking the average price for a UK home to £170,514, according to the Nationwide building society.

This marked a slight fall on the 3.9% surge seen in July, which was the biggest annual rise for three years.

"Consumer confidence has increased significantly in recent months, thanks to further modest gains in employment and signs that the UK economy is finally gathering momentum," Nationwide chief economist Robert Gardner said.

Prices rose 0.6% between July and August, which was also marginally lower than the 0.9% monthly hike seen in July.

But Nationwide said the quarter-on-quarter change showed underlying price rises have remained robust, up 1.4% in the three months to August - the strongest pace of increase since mid-2010.

The data comes after Bank of England (BoE) governor Mark Carney warned earlier this week over the risks of another housing bubble amid fears that Government stimulus measures are stoking unsustainable price rises.

He said the BoE is "acutely aware" of the potential threats and said action will be taken to clamp down on mortgage lending if needed.

Policy measures such as Funding for Lending and Help to Buy are boosting the market as they help first-time buyers in particular on to the property ladder.

Figures from the Council of Mortgage Lenders recently showed that first-time buyers accounted for 45% of house purchase loans in the second quarter - the highest since records began in 2005.

The Funding for Lending Scheme encourages banks and building societies to lend more in return for discounted loans, and has been credited with improving mortgage availability and reducing rates.

Chancellor George Osborne also launched Help to Buy in April, which allows people to buy a property with a 5% deposit, with the state lending buyers 20% of the value of a new home worth up to £600,000, interest-free for five years.

But there are concerns that these schemes will push up house prices and borrowing levels, rather than spurring on more new home construction.

Mr Gardner added: "While there have been encouraging signs that house building is starting to recover, construction is still running well below what is likely to be required to keep up with demand."

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Data Watchdog Warning Over Staff Home Working

The data watchdog has warned employers about security breaches caused by staff working from home, after it fined a council £100,000 for posting sensitive information about vulnerable children.

The Information Commissioner's Office (ICO) hit Aberdeen City Council with the penalty over what it called a "serious data breach" by social services.

The breach of data occurred after a council employee accessed documents, including meeting minutes and detailed reports, from her home computer.

A file transfer programme installed on the machine automatically uploaded the documents to a publicly-accessible website.

The sensitive information revealed details about several vulnerable children and their families, including details of alleged criminal offences.

The files were uploaded between November 8 and 14, 2011 and remained available online until February 2012.

They were only taken down when another member of staff spotted the documents after carrying out an online search linked to their own name and job title.

The breach was later reported to the ICO.

The ICO's investigation found that the council had no relevant home working policy in place for staff and did not have sufficient measures in place to restrict the downloading of sensitive information from the council's network.

ICO assistant commissioner for Scotland Ken Macdonald said: "As more people take the opportunity to work from home, organisations must have adequate measures in place to make sure the personal information being accessed by home workers continues to be kept secure.

"In this case Aberdeen City Council failed to monitor how personal information was being used and had no guidance to help home workers look after the information.

"On a wider level, the council also had no checks in place to see whether the council's existing data protection guidance was being followed."

He added: "The result was a serious data breach that left the sensitive information of a vulnerable young child freely available online for three months.

"We would urge all social work departments to sit up and take notice of this case by taking the time to check their home working setup is up to scratch."

The council is now in the process of agreeing an undertaking with the ICO, which commits the organisation to improving its compliance with the Data Protection Act.

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TUC Warning Over Future State Pensions

State pensions received over a lifetime vary by tens of thousands of pounds because of differing life expectancies and locations, according to a new report.

The study by the Trade Unions Congress (TUC) showed that women in their late forties living in East Dorset can expect to live nine years longer than a woman in Corby, Northamptonshire.

As a result, they will receive £67,000 more in state pension.

East Dorset has the longest life expectancy in the UK for both men and women.

It said women in Corby - the area with the lowest female life expectancy - will receive £12,000 less in state pension over their lifetime than women retiring there in 2016, despite working for two more years.

The state pension divide for men living in East Dorset and Manchester – the area with the shortest male post-65 life expectancy – is estimated to be £53,000.

A man in his late forties living in Manchester will receive £7,500 less during his retirement than those retiring in 2016, the report said.

Life expectancy is longer in East Dorset than in Manchester

The state pension age is due to rise to 66 by 2018 and to 67 by 2028, while the divide in life expectancies between different types of workers is also expected to grow.

The report said a female managerial worker in 2028 can expect to live 3.8 years longer than a female manual worker. Their male counterparts face a gap of 3.1 years.

As a result, the amount of state pension received by different occupations varied by up to £29,000 for women and £23,000 for men.

TUC general secretary Frances O'Grady said that the Government should abandon its plan to raise the state pension age and set up an independent commission to examine health inequalities and their impact on people's expected retirement incomes.

"It cannot be right that people living in a wealthy area can receive tens of thousands of pounds more in state pension than someone living in a less well off part of the country," Ms O'Grady said.

"Particularly as richer people are likely to have earned more during the career and have a bigger private pension too.

The TUC has long fought for state pension rights

"The Government's decision to accelerate the rise in the state pension age will mean millions of people having to work for longer in order to receive less in retirement."

However, a Department for Work and Pensions spokesman said: "Life expectancy is rising across the whole of the UK and we need a sustainable state pension system.

"Future rises in the state pension age will be independently reviewed, taking in a range of relevant factors.

"These are expected to include variations in healthy life expectancy, variations between different socio-economic groups, regional variations, and wider economic considerations."

:: The lifetime state pension for men will fall from £147,000 in 2016 when the single-tier scheme is introduced, to an expected £146,000 in 2028.

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Shelter: 1.8m Priced Out Of Housing Market

Almost two million families in the UK are unable to climb on to the property ladder and are being forced to rent according to new research.

Charity Shelter says that rising house prices have created a generation of 'forgotten families' and that the Government's Help to Buy scheme is still leaving many people priced out of the market.

The study revealed that millions of middle-income families earning between £20,000 and £40,000 could find themselves stuck on the first rung of the property ladder or facing the prospect of years of private renting.

It says monthly mortgage repayments on a family-sized home are simply too much for those on low or average salaries.

Shelter said: "This means that the only option for many will be years spent bringing up children in private lets, paying out dead money in rent and facing the insecurity of short-term tenancy contracts of just six or twelve months."

It comes as a report by the Royal Institute of Chartered Surveyors showed house prices were rising at their fastest rate in seven years.

Having found that 95% of families on low or middle incomes could afford mortgage repayments for a shared ownership home, Shelter is now calling for a major new house building programme.

It says an investment of £12bn could build 600,000 new shared ownership homes.

But housing minister, Mark Prisk argues the Government is already doing this.

He said: "Shelter's report fails to take into account the billions of pounds we're investing to getting Britain building, leading to the fastest rate of affordable house building for two decades, on top of the 19,000 shared ownership homes we've delivered over the past two years."

Kay Boycott, director of campaigns and policy at Shelter said: "So far, years of piecemeal policies and an alphabet soup of confusing schemes have meant that shared ownership has failed to reach its potential, leaving it nowhere close to meeting the needs of England's forgotten families."

She added: "For the many young people desperate to do what generations have before them and find a stable home of their own, a national shared ownership programme is the bold and radical solution we need."

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Co-op Reports £559m Loss Due To Bank Troubles

The Co-operative group has announced a half-year pre-tax loss of £559m amid a writedown of £496m on loans at its troubled banking arm.

The Co-operative Bank alone made a pre-tax loss of £709.4m in the six months to June and the group said there will be "no quick fixes" as it embarks on a four-year turnaround plan.

It admitted it does not expect its banking arm to make a profit for years and warned a restructuring of the business makes job losses "inevitable".

Part of the loss has been blamed on the installation of a new computer system by the group's former management team.

However, as part of an ambitious growth strategy, it was designed for a much bigger institution and those currently in charge say it does not suit the company's needs as a smaller operation.

Group chief executive Euan Sutherland said: "This has been a very difficult first half for The Co-operative Group and the results highlight both the well-documented challenges faced by The Co-operative Bank and the significant work to do at Group level.

"Importantly, today's announcement also underlines the need for the £1.5bn Capital Action Plan we announced in June to stabilise the Bank, which we reaffirm today and which remains on track."

He said the Co-op has "no plan B" for rescuing the bank and is confident bond holders will accept the current proposals.

He added: "We remain convinced of the considerable potential to be realised across the Group and are confident that we are well placed to restore the Co-operative brand to its rightful place at the heart of communities up and down Britain." 

Mr Sutherland took his position in May and said he has since been focused on stabilising the bank.

Banking Group chief executive Niall Booker said the business continued to see the withdrawal of corporate deposits, while retail customers remained.

Other parts of the business reported profits, with the Co-op's food group making £117m in the same period.

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Vodafone Confirms '$100bn' Verizon Sale Talks

Vodafone has confirmed it is in talks with Verizon Communications about selling its stake in their joint US venture, potentially worth more than $100bn (£64.5bn).

The FTSE 100-listed firm owns a 45% stake in Verizon Wireless - America's largest mobile phone operator.

While Vodafone insisted the talks may not lead to a deal, its shares rose 9% on opening as investors welcomed the prospect of a windfall for the company which would amount to one of the largest ever corporate transactions.

While a sale would likely be used by Vodafone to pay off debt , the proceeds would probably also result in a special dividend to shareholders, boost pension funds and Treasury coffers through tax.

Confirmation of the discussions came on the day Vodafone and O2 launched their 4G services in the UK.

Verizon Wireless is America's largest mobile operator

It is thought that Verizon wants to pay around $100bn although reports have suggested that Vodafone would press for as much as $130bn (£84bn).

Vodafone has a market worth of just under £100bn, which means the bulk of its value is locked up in a business where it has no day-to-day control.

The Newbury-based company - which recently spent £9.1bn on securing more business in Germany - said today: "Vodafone notes the recent press speculation and confirms that it is in discussions with Verizon Communications regarding the possible disposal of Vodafone's US group whose principal asset is its 45% interest in Verizon Wireless.

"There is no certainty that an agreement will be reached."

Vittorio Colao is Vodafone's chief executive

Talk of a sale emerged earlier this year when it was reported that Verizon had hired advisers on a possible buyout.

Then, it was suggested that any bid would consist of a roughly 50/50 cash and stock offer.

Joe Rundle, head of trading at ETX Capital said a deal would likely see Vodafone become the "new darling" of the telecom sector.

"Very welcome news for Vodafone," he said.

"This disposal was an overhang in the stock price for some time given the speculation around this and more importantly, it allows the group to pay down its debt.

"In fact, if Verizon buys all of the holding company, it could spare Vodafone from paying as much as $35bn in taxes, another key positive of this proposed disposal."

The potential value of a deal compares with AOL's $164bn (£105bn) takeover of Time Warner in 2001 and Vodafone's own merger with German group Mannesmann in 2000 worth $185bn.

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Private Healthcare: Patients 'Paying Too Much'

An investigation by the Competition Commission (CC) has found most patients pay too much for private healthcare.

The provisional findings of the inquiry into the £5.5bn sector - dominated by three firms - could lead to the sell-off of up to 20 individual hospitals to boost competition, the CC said.

It found that a lack of choice in local areas across the UK meant private patients were having to pay higher private medical insurance premiums than would otherwise be the case.

The CC said the three major players' dominance caused "consumer detriment" of £173m to £193m annually between 2009 and 2011.

It identified 101 hospitals which it said faced little local competition, some of them clusters of hospitals under the common ownership of one of the major groups - BMI, Spire and HCA - which were found to have earned high profits in recent years.

It said competition was being hampered by high costs, the response from existing operators and flat demand and the lack of choice meant insurers had little choice but to use the incumbent operator - meaning higher premiums for all patients.

Patients who funded their own care were also hit with higher charges in areas with little competition, the CC concluded.

The regulator found HCA charges significantly higher prices to insurers than other operators, with BMI the next most expensive for insurers.

The Competition Commission found high barriers to private market entry

The CC's findings - which now go out to consultation - followed a market referral by the Office of Fair Trading (OFT).

It had discovered that some parts of the country, such as Edinburgh, Exeter and Hull, only had one private hospital or healthcare facility.

The OFT said it believed the industry "could work better for patients" and reduced choice could also have an impact on the quality of patient care.

The Commission ruled that incentives to doctors could also be slashed and private hospitals barred from further tie-ups with NHS hospitals in areas where there is little competition.

CC Chairman and Chairman of the Private Healthcare Inquiry Group Roger Witcomb said: "Curing these ills and trying to get a better deal for patients is not going to be straightforward.

"High costs and other factors mean that new competing facilities are not going to spring up so we may look to increase competition and require sales of hospitals to other operators where we can.

"We will also look at ways that will stop hospital operators using local strength in one area as leverage in their negotiations nationally.

"Although many patients don't pay directly for the services as they do in other markets, we think that greater comparable information of the sort that is available elsewhere would help drive greater competition on price and quality, potentially improving both.

"We now want to discuss which of these measures and in what form will be most effective in bringing about the change this market needs," he added.

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G4S To Raise £600m To Cut Debt Pile

G4S, the security firm whose reputation was badly damaged by its failure to deliver enough staff to cover its London Olympics contract, has announced plans to raise £600m to cuts its debt pile.

The company said it planned to sell shares and assets and focus on emerging markets under a strategy drawn up by new chief executive Ashley Almanza.

Mr Almanza, a former executive at oil and gas firm BG Group, was promoted from finance chief in June after Nick Buckles left following a series of blunders including a failed takeover bid in 2011, the botched contract to staff security at the 2012 Games and a profit warning in May.

The new man at the helm of the world's biggest security services firm said he would give a detailed plan in November, but that the initial measures he was putting in place should help to avoid a costly credit-rating downgrade, improve profit margins and start to deliver tangible benefits in 2014.

News of the fundraising and fresh approach helped G4S shares rise more than 3.5% in early trading on the FTSE 100.

The company also confirmed a Sky News story that it had appointed Himanshu Raja as its new chief financial officer to drive its plans forward.

G4S, which runs services from managing prisons to transporting cash, has come under pressure as governments in developed markets cut back services.

The company had hoped to benefit from the outsourcing of more public sector work but that has largely failed to materialise.

The company said its first-half operating profit margin slipped to 5.5% from 5.9% in the same period last year, reflecting a lost prison contract in the Netherlands and squeezed pricing in Britain and elsewhere in Europe.

Net debt rose to £1.95bn as of June 30.

G4S said that as part of its efforts to address that figure it would place 140.9 million new ordinary shares representing up to 9.99% of its existing share capital with new and existing investors via an accelerated bookbuild.

That equates to around £350m at current prices.

The company said its largest shareholder, Invesco, supported the placing and intended to participate in it.

G4S also said it would sell a number of businesses, likely to be in developed markets, which could raise up to £250m in the next year and would restructure other units.

It had agreed, the company confirmed, to sell its Canadian cash security and Colombia Data solutions businesses for £100m.

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Ryanair Ordered To Sell 25% Of Aer Lingus Stake

Ryanair has been ordered to sell nearly 25% of its shares in Aer Lingus.

The Competition Commission said the budget airline must cut its stake in its Irish rival from 29.8% to 5%.

Ryanair said it will appeal against the decision to the UK Competition Appeal Tribunal.

The Commission ruled that Ryanair's shareholding "had led or may be expected to lead to a substantial lessening of competition between the airlines on routes between Great Britain and Ireland."

It follows a lengthy probe which Ryanair boss Michael O'Leary claimed was "bizarre and manifestly wrong."

In a statement he said:  "From the first meeting with the UKCC it has been clear to us that Simon Polito's and Roger Davis' minds had been made up in advance and no truth or evidence was going to get in the way of their story.

"This prejudicial approach to an Irish airline is very disturbing, coming from an English government body that regards itself a model competition authority."

But in its final report the watchdog added: "We consider that there is a tension between Ryanair's position as a competitor and its position as Aer Lingus's largest shareholder, and that Ryanair has an incentive to weaken its rival's effectiveness as a competitor."

Ryanair has made three attempts to buy Aer Lingus, with its latest bid blocked by the European Commission.

Mr O'Leary told Sky News: "Just 5 months ago the EU prohibited our third offer for Aer Lingus on the very basis that competition had intensified between Ryanair and Aer Lingus.

"So here we have this crazy situation where the EU prohibits our offer because competition has intensified and 5 months later the UK Competition Commission says we should be forced to sell down our stake because competition has lessened."

He added: "They clearly have no evidence for that ruling."

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Countryside Fears Over Solar Energy Growth

By Emma Birchley, East of England Correspondent

Rural campaigners say the push to generate green energy through giant solar farms is having an unacceptable impact on Britain's rural landscape.

Developments like Burntstalks Solar Farm in Norfolk, which has nearly 50,000 photovoltaic panels and captures enough of the sun's rays to power nearly 4,000 homes, are heralded as a sensible solution to the UK's energy needs.

However, some claim the sites are yet another blot on the landscape and are ruining the countryside.

David Hook, from the Campaign to Protect Rural England, told Sky News: "I think that if policy is not changed ... the industrialisation through solar farms and extra wind turbines is going to have a dramatic effect on the countryside, and a very negative effect."

It is only two years since the UK's first large scale sun park began generating electricity in Lincolnshire.

There are now nearly 160, mostly in rural areas, with a further 229 under construction or awaiting approval.

David Hook wants policy to change

Lightsource Renewable Energy owns and operates dozens of solar farms, including Burntstalks, near King's Lynn.

Mark Turner, the company's operations director, said: "The balance we have to strike is between a solar farm that can generally only be seen by people very close up to it and usually by fleeting glimpses through hedgerows as you are driving along, versus potential wind farms or the other alternatives of non-renewables including nuclear power stations and coal-fired power stations.

"The amount of ground taken up by the farm is minimal and what we then try to do, as far as possible, is to use the land for dual use.

"We graze sheep or plant wild flowers, so the land is used for the kind of purpose it would be used for before the panels were here."

The Government has made it clear it backs the production of solar energy, which it hopes will eventually produce 20GW of energy every year - eight times more than at present and enough to power around six million homes.

Its priority is for panels to be put on brownfield sites and the roofs of factories, hospitals and houses but according to Mr Turner, that is not always possible.

"Finding roof tops that are owned by companies we can rely on to be there in the 25 years we need to return the investment is extremely difficult," he said.

"And finding brownfield sites that are sufficiently far enough south to generate enough electricity, are close enough to the grid and aren't dedicated to other purposes, is extremely difficult."

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Post Office Staff In Fresh Wave Of Strikes

Workers at Crown post offices are staging a fresh wave of strikes in a five-month row over jobs, pay and closures.

A UK-wide stoppage is being held today, staff in Scotland will strike on Monday, and union members in England, Wales and Northern Ireland will stop work on Tuesday.

The Communication Workers Union said the dispute involves up to 4,000 staff and shows no sign of being resolved.

The industrial action is linked to plans to franchise or close more than 70 Crown sites - the larger branches usually found on high streets.

The 373 Crown offices, which are usually the larger ones, represent just 3% of the total post office network.

But the CWU says its staff deal with a fifth of all customers and handle 40% of financial transactions involving things like banking and credit cards.

Dave Ward, CWU deputy general secretary, said: "This is the first time we have announced two days of strikes at the same time and the first time we have announced back-to-back days of strike action.

"Coupled with the 90% yes vote by members for industrial action short of strike, the message can't be much stronger to Post Office management.

"Crown post office workers do not agree with management's slash-and-burn approach and are prepared to take prolonged industrial action to defend jobs and services and win a fair pay rise.

"This is a company which made £94m profit last year and paid out £15.4m in bonuses to senior managers.

"It's a clear case of double standards and trampling those at the bottom for the benefit of those at the top. Enough is enough. It's time to resolve this."

Kevin Gilliland, network and sales director at the Post Office, said he was "extremely disappointed" at the CWU's decision to call further strike action.

"This action can only cause disruption to customers, cost our people money and place further pressure on the Crown network which is currently losing £37m a year.

"We must continue with our plans to turn around the Crown network to ensure we keep these branches on high streets and in city centres across the UK.

"We remain open to discussions with the CWU on pay options which do not add to the current loss of public money."

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Britain Is Boom Destination For Tourists

By David Crabtree, Midlands Correspondent

A record number of visitors are choosing the UK as a holiday destination following the success of the 2012 London Olympics.

There were almost 2.9 million tourists in June, a record for the month, according to the latest figures from VisitBritain.

Data from the Office for National Statistics showed they spent a record £1.84bn in June, an increase of 13% on 2012, which was another record.

There has been a significant rise in the number of people coming from China, the US and various parts of Europe.

Visitors from overseas spent £8.72bn in Britain in the six months to June, up 11% on the same period last year.

But it is not just overseas visitors who have been swelling the numbers.

VisitBritain predicts that over the Bank Holiday 4.5 million Britons will be taking an overnight holiday trip in the UK, a factor helped by a spell of good weather.

In Stratford-on-Avon, the draw of Shakespeare has never been so popular.

Rachel Hudson, from The Shakespeare Birthplace Trust, said: "We have seen a boost due to the success of the Olympics and I think people around the world realise that we have something really special to offer.

"Shakespeare is a worldwide brand and more people want to enjoy the experience in his home town."

Patricia Yates, VisitBritain's director of strategy and communications, said: "The Olympic bounce has well and truly sprung with the best start to a year since 2008.

"This has seen us achieve record-breaking spend figures for 2013 to date and record visitor numbers.

"We are surpassing our spend forecast for 2013, which is testament to the fact that our great campaign has capitalised on the showcasing of Britain through 2012 to turn viewers into visitors.

"Our marketing and promotion of Britain as a great place to visit will ensure we are well positioned to deliver continued growth through 2013 and beyond, achieving positive results for the UK tourism industry and increasing the 2.6 million job supported by the sector."

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Countryside Fears Over Solar Energy Growth

By Emma Birchley, East of England Correspondent

Rural campaigners say the push to generate green energy through giant solar farms is having an unacceptable impact on Britain's rural landscape.

Developments like Burntstalks Solar Farm in Norfolk, which has nearly 50,000 photovoltaic panels and captures enough of the sun's rays to power nearly 4,000 homes, are heralded as a sensible solution to the UK's energy needs.

However, some claim the sites are yet another blot on the landscape and are ruining the countryside.

David Hook, from the Campaign to Protect Rural England, told Sky News: "I think that if policy is not changed ... the industrialisation through solar farms and extra wind turbines is going to have a dramatic effect on the countryside, and a very negative effect."

It is only two years since the UK's first large scale sun park began generating electricity in Lincolnshire.

There are now nearly 160, mostly in rural areas, with a further 229 under construction or awaiting approval.

David Hook wants policy to change

Lightsource Renewable Energy owns and operates dozens of solar farms, including Burntstalks, near King's Lynn.

Mark Turner, the company's operations director, said: "The balance we have to strike is between a solar farm that can generally only be seen by people very close up to it and usually by fleeting glimpses through hedgerows as you are driving along, versus potential wind farms or the other alternatives of non-renewables including nuclear power stations and coal-fired power stations.

"The amount of ground taken up by the farm is minimal and what we then try to do, as far as possible, is to use the land for dual use.

"We graze sheep or plant wild flowers, so the land is used for the kind of purpose it would be used for before the panels were here."

The Government has made it clear it backs the production of solar energy, which it hopes will eventually produce 20GW of energy every year - eight times more than at present and enough to power around six million homes.

Its priority is for panels to be put on brownfield sites and the roofs of factories, hospitals and houses but according to Mr Turner, that is not always possible.

"Finding roof tops that are owned by companies we can rely on to be there in the 25 years we need to return the investment is extremely difficult," he said.

"And finding brownfield sites that are sufficiently far enough south to generate enough electricity, are close enough to the grid and aren't dedicated to other purposes, is extremely difficult."

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Post Office Staff In Fresh Wave Of Strikes

Workers at Crown post offices are staging a fresh wave of strikes in a five-month row over jobs, pay and closures.

A UK-wide stoppage is being held today, staff in Scotland will strike on Monday, and union members in England, Wales and Northern Ireland will stop work on Tuesday.

The Communication Workers Union said the dispute involves up to 4,000 staff and shows no sign of being resolved.

The industrial action is linked to plans to franchise or close more than 70 Crown sites - the larger branches usually found on high streets.

The 373 Crown offices, which are usually the larger ones, represent just 3% of the total post office network.

But the CWU says its staff deal with a fifth of all customers and handle 40% of financial transactions involving things like banking and credit cards.

Dave Ward, CWU deputy general secretary, said: "This is the first time we have announced two days of strikes at the same time and the first time we have announced back-to-back days of strike action.

"Coupled with the 90% yes vote by members for industrial action short of strike, the message can't be much stronger to Post Office management.

"Crown post office workers do not agree with management's slash-and-burn approach and are prepared to take prolonged industrial action to defend jobs and services and win a fair pay rise.

"This is a company which made £94m profit last year and paid out £15.4m in bonuses to senior managers.

"It's a clear case of double standards and trampling those at the bottom for the benefit of those at the top. Enough is enough. It's time to resolve this."

Kevin Gilliland, network and sales director at the Post Office, said he was "extremely disappointed" at the CWU's decision to call further strike action.

"This action can only cause disruption to customers, cost our people money and place further pressure on the Crown network which is currently losing £37m a year.

"We must continue with our plans to turn around the Crown network to ensure we keep these branches on high streets and in city centres across the UK.

"We remain open to discussions with the CWU on pay options which do not add to the current loss of public money."

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Britain Is Boom Destination For Tourists

By David Crabtree, Midlands Correspondent

A record number of visitors are choosing the UK as a holiday destination following the success of the 2012 London Olympics.

There were almost 2.9 million tourists in June, a record for the month, according to the latest figures from VisitBritain.

Data from the Office for National Statistics showed they spent a record £1.84bn in June, an increase of 13% on 2012, which was another record.

There has been a significant rise in the number of people coming from China, the US and various parts of Europe.

Visitors from overseas spent £8.72bn in Britain in the six months to June, up 11% on the same period last year.

But it is not just overseas visitors who have been swelling the numbers.

VisitBritain predicts that over the Bank Holiday 4.5 million Britons will be taking an overnight holiday trip in the UK, a factor helped by a spell of good weather.

In Stratford-on-Avon, the draw of Shakespeare has never been so popular.

Rachel Hudson, from The Shakespeare Birthplace Trust, said: "We have seen a boost due to the success of the Olympics and I think people around the world realise that we have something really special to offer.

"Shakespeare is a worldwide brand and more people want to enjoy the experience in his home town."

Patricia Yates, VisitBritain's director of strategy and communications, said: "The Olympic bounce has well and truly sprung with the best start to a year since 2008.

"This has seen us achieve record-breaking spend figures for 2013 to date and record visitor numbers.

"We are surpassing our spend forecast for 2013, which is testament to the fact that our great campaign has capitalised on the showcasing of Britain through 2012 to turn viewers into visitors.

"Our marketing and promotion of Britain as a great place to visit will ensure we are well positioned to deliver continued growth through 2013 and beyond, achieving positive results for the UK tourism industry and increasing the 2.6 million job supported by the sector."

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Microsoft Boss To Leave Amid 'New Direction'

Microsoft Revamp Amid PC Decline

Updated: 3:28pm UK, Friday 23 August 2013

By Thomas Moore, Sky News Science Correspondent

Microsoft has struggled as the PC market has declined.

Five years ago more than 90% of computers ran a version of the Windows operating system, according to tech analysts Forrester.

By 2012 - with Apple and Google dominating mobile computing - it was found on just 30% of devices.

In an effort to revamp its image for the touchscreen era, the company launched Windows 8 late last year.

But the lack of the iconic 'start' button and the new interface of tiled apps irritated users tied to a keyboard and mouse.

It's now done a U-turn and a soon-to-be-launched update - Windows 8.1 - will restore the start button.

Microsoft will hope the tweaks will breathe life into the operating system.

It has failed to convince PC users to upgrade so far, despite a marketing budget that's estimated to top $1bn  (£600m).

Eight months old and Windows 8 is still only found on 5.4% of computers, according to data from Net Applications.

Windows 7 still dominates, with a share of 44.5%.

The malaise is affecting PC makers.

HP recently reported that sales of desktop and notebook computers had slumped by 8% in a year.

So the stakes are high for Microsoft and the industry that relies on its software.

If the new-look Windows fails to stop the slide in sales many will ask whether the PC has a future.

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Countryside Fears Over Solar Energy Growth

By Emma Birchley, East of England Correspondent

Rural campaigners say the push to generate green energy through giant solar farms is having an unacceptable impact on Britain's rural landscape.

Developments like Burntstalks Solar Farm in Norfolk, which has nearly 50,000 photovoltaic panels and captures enough of the sun's rays to power nearly 4,000 homes, are heralded as a sensible solution to the UK's energy needs.

However, some claim the sites are yet another blot on the landscape and are ruining the countryside.

David Hook, from the Campaign to Protect Rural England, told Sky News: "I think that if policy is not changed ... the industrialisation through solar farms and extra wind turbines is going to have a dramatic effect on the countryside, and a very negative effect."

It is only two years since the UK's first large scale sun park began generating electricity in Lincolnshire.

There are now nearly 160, mostly in rural areas, with a further 229 under construction or awaiting approval.

David Hook wants policy to change

Lightsource Renewable Energy owns and operates dozens of solar farms, including Burntstalks, near King's Lynn.

Mark Turner, the company's operations director, said: "The balance we have to strike is between a solar farm that can generally only be seen by people very close up to it and usually by fleeting glimpses through hedgerows as you are driving along, versus potential wind farms or the other alternatives of non-renewables including nuclear power stations and coal-fired power stations.

"The amount of ground taken up by the farm is minimal and what we then try to do, as far as possible, is to use the land for dual use.

"We graze sheep or plant wild flowers, so the land is used for the kind of purpose it would be used for before the panels were here."

The Government has made it clear it backs the production of solar energy, which it hopes will eventually produce 20GW of energy every year - eight times more than at present and enough to power around six million homes.

Its priority is for panels to be put on brownfield sites and the roofs of factories, hospitals and houses but according to Mr Turner, that is not always possible.

"Finding roof tops that are owned by companies we can rely on to be there in the 25 years we need to return the investment is extremely difficult," he said.

"And finding brownfield sites that are sufficiently far enough south to generate enough electricity, are close enough to the grid and aren't dedicated to other purposes, is extremely difficult."

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Post Office Staff In Fresh Wave Of Strikes

Workers at Crown post offices are staging a fresh wave of strikes in a five-month row over jobs, pay and closures.

A UK-wide stoppage is being held today, staff in Scotland will strike on Monday, and union members in England, Wales and Northern Ireland will stop work on Tuesday.

The Communication Workers Union said the dispute involves up to 4,000 staff and shows no sign of being resolved.

The industrial action is linked to plans to franchise or close more than 70 Crown sites - the larger branches usually found on high streets.

The 373 Crown offices, which are usually the larger ones, represent just 3% of the total post office network.

But the CWU says its staff deal with a fifth of all customers and handle 40% of financial transactions involving things like banking and credit cards.

Dave Ward, CWU deputy general secretary, said: "This is the first time we have announced two days of strikes at the same time and the first time we have announced back-to-back days of strike action.

"Coupled with the 90% yes vote by members for industrial action short of strike, the message can't be much stronger to Post Office management.

"Crown post office workers do not agree with management's slash-and-burn approach and are prepared to take prolonged industrial action to defend jobs and services and win a fair pay rise.

"This is a company which made £94m profit last year and paid out £15.4m in bonuses to senior managers.

"It's a clear case of double standards and trampling those at the bottom for the benefit of those at the top. Enough is enough. It's time to resolve this."

Kevin Gilliland, network and sales director at the Post Office, said he was "extremely disappointed" at the CWU's decision to call further strike action.

"This action can only cause disruption to customers, cost our people money and place further pressure on the Crown network which is currently losing £37m a year.

"We must continue with our plans to turn around the Crown network to ensure we keep these branches on high streets and in city centres across the UK.

"We remain open to discussions with the CWU on pay options which do not add to the current loss of public money."

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Bank Holiday Discounts: Warning From Watchdog

The consumer watchdog has urged shoppers to quiz carpet and furniture retailers before they buy this long weekend - after it found some used artificially high prices to exaggerate sales and price cuts.

The Office of Fair Trading (OFT) is investigating six chains after discovering many retailers in the sector were misleading customers into thinking they were getting a bargain by artificially inflating the original price.

It found "systematic" examples of artificially inflated reference pricing within the industry, through the use of "was" prices formerly charged by the retailer, "after sale" prices that the trader intended to charge in the future, or recommended retail prices (RRPs) set by the manufacturer.

During monitoring of the six companies, the overall average of sales of items at the reference price was just 5%.

OFT director Gaucho Rasmussen said: "This bank holiday sale season we would recommend that consumers ask sales staff when and for how long the reference price was used and also how many sales they achieved at this price."

The OFT said there were a significant number of products sold by some retailers where no sales at all took place at the artificially inflated price.

In all cases, no explanation of how and when these higher prices were established were provided.

The consumer watchdog has written to the six retailers asking them to stop using the pricing practices that mislead consumers, giving them until autumn to respond.

The OFT did not name the companies in the hope of reaching a quick resolution, however Carpetright has since confirmed it has been contacted as part of the investigation.

It said: "Carpetright strives to operate fully within all laws and regulations at all times. Carpetright is co-operating fully with the OFT and will respond to the letter in due course."

"There is no suggestion in the letter of Carpetright having behaved in a manner which breaches competition law."

Approached by Sky News, retailer DFS declined to comment.

Furniture Village said: 'We are aware of ... the ongoing investigations being undertaken, and it would be inappropriate for us to comment until such time as its findings are published.

"Furniture Village is fully supportive of any initiative which ensures that, industry-wide, future pricing policies and practices are fair and accurate."

Mr Rasmussen said: "OFT research has found that reference pricing can mislead consumers into thinking the item they have bought is of higher value and quality.

"(With) pressure them to buy there and then so they don't 'miss out' on the deal and also impair their judgment, as buying an item immediately means they do not get the chance to search the market for the real best deals.

"This will help them to determine whether they are getting a good deal."

Richard Lloyd, executive director of Which?, the consumer campaigning charity, added: "The OFT's warning sends a clear message to carpet and furniture stores that special offers really have to be special.

"It's unacceptable that shoppers are misled into thinking they're getting a good deal when that might not be the case."

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Pump Sales Slump Amid Summer Price Hike

A surge in pump prices led to last month's petrol and diesel sales crashing to winter levels, according to a motoring group's analysis of Government figures.

The AA said drivers bought nearly 1.48 billion litres of petrol in July 2013 - an 8% fall on the June 2013 figure.

This was only 45 million litres more than the record low in February this year and just 11 million litres more than the January 2013 total.

July 2013 sales of diesel were down 5% on June's, dropping  to just over 2.21 billion litres. These figures include commercial usage.

The AA added that in June 2013, when the average cost of petrol levelled at 134.6p a litre after surging to 140.0p in the spring, stable lower prices lifted petrol sales to a level last seen in November 2011.

But last month, a sudden 5p-a-litre rise in wholesale costs raised the average pump price from a low of 133.7p on the last day of June to 135.8p by the middle of July and 137.2p by the end of the month.

It finally started to level off at 137.6p in the first week of August.

Tax income from duty on petrol and diesel sales fell £142m in July compared to June and £35m compared to July 2012, the AA said.

Its president Edmund King added: "It's staggering that when brilliant weather sent consumers into the shops and gave the UK's retail sector a strong boost, the complete opposite happened at the pumps.

Motorists have complained of rising fuel prices this year

"Not only are petrol sales shadowing the record lows of this winter, but are lower than last July which included a week of Olympics football, opening ceremony and initial events."

He went on: "It seems that, as each penny increase registers on fuel forecourt price boards, drivers automatically cut back - even if they're in the mood to spend elsewhere."

Meanwhile, a survey of more than 13,500 motorists by What Car? has ranked car dealerships by the service they give owners.

Jaguar, Lexus and Honda topped the list while Fiat, Alfa Romeo and Chevrolet were at the bottom.

Popular makes such as BMW and Audi were in the middle of the 27 marques ranked.

Whatcar.com editor Nigel Donnelly told Sky News: "People have a perception that main dealer pricing can be on the steep side but what we are finding is that dealers now appreciate that retaining that next sale is making sure people have a good experience.

"If you use independent dealers you really want to be make sure they are using quality parts, correct oils and a proper breakdown of what has been done to the car.

"For most people, if it looks like the garage can't look after itself it probably can't look after your car."

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UK GDP Revised Upward In Second Quarter

UK GDP output for the second quarter of 2013 has been revised upwards, according to officially released figures.

The Office for National Statistics (ONS) said the economy grew by 0.7% in the three months.

The ONS gross domestic product (GDP) figure was up 0.1% from the estimate released in July.

Rosier growth was seen across all sectors of the economy, with small upward revisions across manufacturing, construction and parts of services.

Second-quarter growth more than doubled from 0.3% expansion in the first three months, raising hopes that the economy is now powering out of its five-year slump.

The Treasury said the upward revision confirmed the UK is "moving from rescue to recovery".

A spokeswoman said: "There is still a long way to go, but the economy is on the right track and the Government is committed to its economic plan that has already cut the deficit by a third and enabled the private sector to create over 1.3 million new jobs."

Construction was one of the hardest hit sectors in the global crisis

Output from the UK's building sites expanded by 1.4% in the second quarter from an initial 0.9% estimate as the housing market was ignited by state stimulus schemes, including Help to Buy and Funding for Lending.

There were also brighter signs from factories, which grew output by 0.7% during the quarter, up from an initial 0.4% estimate.

And output from distribution, hotels and catering firms, was revised up to 1.7% from 1.5%, while growth across business services and finance firms was also revised higher to 0.6% from 0.5%.

The overall services sector expanded by an unchanged 0.6%, but output from the agriculture sector was revised up to 1.7% from the 1.1% first estimate.

Britain's shrinking net trade deficit, which dropped to £3.2bn in the second quarter from a £4.3bn deficit in the first quarter, also contributed to the increase in output as exports leapt to a record level.

James Knightley, economist at ING Bank, said the higher estimate of GDP will "boost optimism on the economy".

Markit chief economist Chris Williamson added it was a "very encouraging picture of a broad-based upturn across almost all sectors of the economy".

But Chris Leslie MP, Labour's shadow financial secretary to the Treasury, said: "These figures confirm that after three wasted years of flatlining we finally have some welcome but long overdue growth.

"But for all George Osborne's complacent claims that the economy is now fixed, for ordinary people things are getting harder. While millionaires have been given a huge tax cut most people are still seeing prices rising much faster than wages.

Agricultural output was revised upward by more than half

"And real risks remain. The Governor of the Bank of England is right to warn that the recovery is weak, and it is the slowest on record."

Pay and pension contributions increased by 2.4% in the second quarter - the highest quarterly increase since late 2000 - with the pay spike boosted by unusually high bonus payments in April.

The ONS said spending across various parts of the economy contributed to growing output.

Spending by households increased 0.4% in the quarter, raising hopes that higher consumer spending will drive the recovery, and is now 1.6% higher than a year earlier.

The ONS said overall economic output is now 3.2% below its peak in the first quarter of 2008 - it dropped as low as 7.2% below the peak in the second quarter of 2009.

The first estimate published in late July was based on 44% of data, while today's estimate is based on 88% of data.

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UK Vehicle Production 'Hits The Skids'

A sharp fall in the manufacture of commercial vehicles in the UK is being part-blamed on the closure of Ford's Transit plant in Southampton.

While car production accelerated ahead last month, the production of commercial vehicles including vans tumbled by 11.8% year on year in July according to the Society of Motor Manufacturers and Traders (SMMT).

There were 7,942 such vehicles produced in the country during the month - 56,459 in the year to date - a 13.3% fall on the first seven months of last year.

Nigel Base, SMMT Commercial Vehicle Manager, said: "Commercial vehicle manufacturers continue to battle against weak demand, despite a moderate increase in exports in July.

"The outlook for commercial vehicle manufacturing for the rest of the year continues to be tough, especially following the closure of the Ford facility in Southampton at the end of July.

However, there are some areas, such as bus and coach production, where we are continuing to see growth as operators take advantage of the wide range of vehicles built in the UK."

A total of 128,873 cars were made in the UK in July - a  7% rise on the July 2012 figure, the SMMT said.

Engine production last month rose 26.4% to 232,545 and is up 2.1% for the year so far at just over 1.55 million.

SMMT interim chief executive Mike Baunton added: "Car manufacturing is continuing to follow the wider UK trend for more positive economic growth.

"We are starting to see slight signs of recovery from Europe which will support stronger production levels this year, and UK manufacturers will continue to build and develop innovative, high-quality products that appeal to a global customer base."

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Markets Feel Pain Over Cheap Money Addiction

Financial pain is being felt world-wide as the US Federal Reserve remains on track to ease its economic stimulus programme from as early as next month.

Minutes from the Fed's last meeting confirmed that some policymakers were in favour of immediately slowing down bond-buying, although others preferred to wait until later in the year as economic recovery gathers pace.

Since the financial crisis of 2008, the Fed has spent more than $2tn (£1.3tn) buying bonds to pump money into the US economy - cash that has eventually spread further afield.

But while the flood of cheap money into the world has helped growth, the prospect of its eventual withdrawal has markets in a spin.

Confirmation on Wednesday night that the Fed's current programme - of making $85bn (£55bn) of bond purchases monthly - is set to be slowed prompted a spike in US bond yields.

It also drove up borrowing costs globally on Thursday despite surprisingly strong manufacturing data from China.

Rising yields make borrowing more expensive (yields correct at 0840 BST)

Emerging markets in Asia have suffered most in recent weeks as many countries have come to rely on cheap dollars to underpin domestic demand and fund current account deficits.

Currencies in Indonesia, Malaysia and Thailand all hit multi-year lows, while the Indian rupee fell to another historic low against the dollar.

Their stocks markets all fell between 1% and 2% - on top of previous recent falls - with investors instead running for the perceived safety of the dollar.

After a 1% fall on Wednesday in anticipation of the Fed minutes, the FTSE 100 gained 0.7% in early trading on Thursday and other major European stock markets followed suit as keenly-watched activity surveys bolstered hopes the Eurozone recovery is gaining momentum.

However, the UK's 10 year debt yield climbed towards 2.8%.

The minutes had sent 10-year US Treasury yields up as far as 2.93%, highs last seen in July 2011.

US yields tend to set the benchmark for borrowing costs across the globe so the rise will make it more difficult for indebted countries and companies to pay their bills.

Plunging currencies also force up import costs, hitting consumers and companies alike.

While the looming slowdown in Fed bond-buying is a reaction to improved economic performance, it remains to be seen whether the world will be ready for the withdrawal of US stimulus.

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Millions To Share £1.3bn Bank Compensation

CPP Mis-Selling Scandal Q&A

Updated: 11:27am UK, Thursday 22 August 2013

As the UK's battered financial services industry prepares to tell seven million people they may have been the victim of the latest mis-selling scandal, here are some answers to common questions.

:: Why is this happening?

Regulator the Financial Conduct Authority (FCA) has found widespread mis-selling of card protection and identity protection policies which were provided by CPP and sold by several banks, credit card issuers and directly by the firm.

Products offered by banks and card issuers were often sold when customers called to register or activate a debit or credit card.

Customers were given misleading and unclear information about the policies so they bought cover that either was not needed, or to cover risks that had been exaggerated.

:: Which banks and credit card issuers have agreed to the compensation scheme?

Customers bought and renewed about 23 million policies from CPP, a bank or credit card issuer.

The 13 companies which have signed up to the redress scheme are Bank of Scotland, Barclays, Canada Square Operations (formerly Egg Banking), Capital One, Clydesdale Bank, Home Retail Group Insurance Services, HSBC, MBNA, Morgan Stanley, Nationwide Building Society, Santander, RBS and Tesco Personal Finance.

The involvement of the banks and credit card issuers reflects their involvement in introducing customers to CPP's products and so they must share responsibility for putting the situation right.

:: What sort of sum are those entitled to compensation likely to receive?

The total compensation bill could be up to £1.3bn, with redress per customer depending on the type of policy or policies owned and the length of time they were held for.

If you are entitled to compensation you will have the premiums you have paid since January 14 2005 returned to you, less any sums paid out under the policy, plus 8% interest on the amount owed.

This date in 2005 has been chosen because it is the date that the sale of general insurance products came under the scope of FCA regulation.

Card protection costs were around £30 a year and identity protection costs were about £80 a year.

:: What do customers need to do to get their compensation?

Nothing at this stage and they will not have to pay a claims management firm to chase compensation.

CPP is going to write to affected policyholders from August 29 to explain how the compensation scheme will work and what they need to do next.

:: How will the compensation scheme work?

Compensation payouts are expected to be made from next spring and there are several approval hurdles which will need to be cleared first.

After policyholders have received their initial letter from CPP, they will be invited as the scheme's "creditors" to vote on whether they want it to go ahead. This process is a legal requirement.

If the vote goes in favour of the scheme, the High Court will be asked to approve it. If the scheme gets the green light from the High Court, CPP will write to policyholders again to ask whether they want to be considered for compensation.

This would include a claim form that must be completed, signed and returned to CPP before a specified deadline.

Customers who voted against the scheme going ahead would still be able to submit a claim for compensation.

If a customer does make a claim, their policy will be cancelled - even if their claim is rejected.

The FCA advises customers to therefore think carefully about whether they find some features of the product useful before they make a claim.

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Sale Of Businesses Generates £500m For Lloyds

Lloyds Banking Group has sold off more than £500m of non-core assets as it seeks to strengthen its financial position and meet regulatory capital requirements.

The bank, which is 39% owned by the taxpayer following a financial bailout in 2008, has sold its loss-making German life insurance business Heidelberger Lebensversicherung AG for £250m and a portfolio of loans for £254m.

In June, the Bank of England told Lloyds it must find a further £8.6bn in provision funds against potential future losses.

Heidelberger Lebensversicherung AG, which has been bought subject to regulatory approval by a Cinven Partners and Hannover Ruck joint partnership, underwrites policies worth some £7.2bn.

The loan portfolio, which has been bought by Goldman Sachs subsidiary ELQ Investors II, has assets of £283m and generated a profit of £11m in 2012.

A Lloyds statement on the sale of the insurance business said: "The sale is in line with the Group's strategy of rationalising its international presence and ensuring value for shareholders."

In recent weeks Lloyds' share price has surged, prompting speculation that the government may seek to sell its stake in the bank, generating some £20bn for taxpayers.

In the first six months of this year, the bank announced a £2.1bn profit compared to a £456m loss during the same period last year.

Lloyds recently sold off its $5 billion US mortgage book, Spanish retail banking operations and international private banking business.

Lloyds says it aims to halve its non-core loan book by the end of 2014 from 141 billion at the end of 2011.

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Surprise Deficit In July A Blow To Osborne

Official figures have revealed a surprise deficit in the UK's finances for July as the Government struggles to rein in spending.

The Office for National Statistics (ONS) showed a £62m shortfall for July this year, compared to a £823m surplus in the same month of 2012.

An increase in central government spending outstripped a rise in tax receipts - a blow during a month when the state is typically in the black because of company tax payments.

It is the first time there has been net borrowing in July since 2010.

Public sector net debt as a proportion of the UK's gross domestic product (GDP) also hit a record for July at 74.5%.

Once a transfer of around £400m for quantitative easing (QE) cash was included, public sector net borrowing was £885m higher than a year earlier.

The ONS said higher central government spending was spread across departments and that the Treasury expects the figure to be revised down in the coming months.

The Office for Budget Responsibility (OBR) expects the deficit to come in at around £120bn for the year to the end of next March, up on last year's £116.5bn.

Total tax receipts excluding QE cash were 3.4% higher year-on-year at £54.1bn in July, helped by increases in VAT sales tax, income tax, National Insurance contributions and stamp duty on home purchases.

But corporation tax receipts dipped to £7bn from £7.1bn a year earlier, despite increasing signs of growth in the economy.

Central government spending rose by 4% to £51.2bn.

Martin Beck, UK economist at consultancy Capital Economics, said the figures show the public purse has "yet to benefit from the economic upturn".

He said: "While signs of economic recovery should eventually feed through into an improvement in the public finances, it looks like the Chancellor will have to wait a while yet."

Recent figures showed the economy expanded by 0.6% in the second quarter, double the 0.3% in the first three months of the year.

Economists increasingly believe the UK is on course to match or beat second quarter growth in the July to September quarter.

A Treasury spokesman said: "Strong tax receipts in July confirm that the economy is moving from rescue to recover.

"There is still a long way to go as the UK recovers from the biggest economic crisis in living memory, and the Government is sticking to the economic plan that has already cut the deficit by a third and enabled the private sector to create over 1.3 million new jobs."

Shadow financial secretary to the Treasury Chris Leslie accused Chancellor George Osborne of complacency.

"Another month of disappointing figures raises very serious concerns that borrowing continues to be way off track," he said.

"He's borrowing billions more than planned simply to pay for the costs of his economic failure and his promise to balance the books by 2015 is now in tatters."

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Court Approves Plan To End Kodak Bankruptcy

Fallen photography giant Kodak could emerge from bankruptcy after a court in the US approved a plan to reorganise the iconic company.

The plan permits Kodak to reduce its debt and divest its film and printing business, among other steps, to reemerge as a player in the commercial printing business.

Kodak also plans to continue to sell film for movie productions.

"Today, the court confirmed Kodak's plan of reorganisation. This critically important milestone marks the final step in the court process," said Kodak chairman and chief executive Antonio Perez.

"Next, we move on to emergence as a technology leader serving large and growing commercial imaging markets - such as commercial printing, packaging, functional printing and professional services, with a leaner structure and a stronger balance sheet."

Kodak still has some final steps to take, such as completing an agreement over the pensions of retirees and ex-employees. The company expects to clear these hurdles in time to resume business on September 3. 

Kodak filed for bankruptcy protection from its creditors in January 2012, after 131 years in business, as the company fell behind rivals in digital photography.

Kodak, founded in 1892, had led the way in popularising photography around the world.

Kodak was among the early developers of digital imaging, but lost ground to rivals as the company failed to adapt its business lines.

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Men Get Bigger Bonuses As Gender Pay Gap Widens

Average bonuses for male managers were twice as much as those of their female counterparts last year, according to new research.

The Chartered Management Institute (CMI) said the gender pay gap was widening as a result of bonuses.

Last year male managers received average bonuses of £6,442, compared to £3,029 for females.

The CMI said that was on top of basic salaries almost 25% higher for men.

The study of 43,000 managers showed the difference in bonuses would equate to over £141,000 more for males, than females doing the same job over the course of a working lifetime.

According to the report, the pay gap is particularly large at senior levels, with female directors paid an average bonus of £36,270, compared to £63,700 for males.

Ann Francke, chief executive of the CMI, said: "Despite genuine efforts to get more women on to boards, it's disappointing to find that not only has progress stalled, but women are also losing ground at senior levels.

"Women are the majority of the workforce at entry level but still lose out on top positions and top pay. The time has come to tackle this situation more systemically.

"If organisations don't tap in to and develop their female talent right through to the highest levels, they will miss out on growth, employee engagement, and more ethical management cultures. And that's not good for business."

Mark Crail of salary specialists XpertHR, which helped with the research, added: "There is no good reason for men to still be earning more in bonuses than women when they are in very similar jobs.

"But it's often the case that men and women have different career paths, with 'male' roles more likely to attract bonuses.

He added: "While women are generally getting lower bonuses than men, especially at senior levels, they may be entering occupations where there is less of a culture of bonus payments.

"The question for employers is why that's the case."

Minister for Women and Equalities Maria Miller said, "These figures are yet another damaging example highlighting that, in the world of work, women still lose out to their male counterparts and that the playing field is far from equal."

It comes as figures from the Office for National Statistics show that £36.9bn was paid out in bonuses in 2012/13.

That is up 1% on the previous year and equates to an average of around £1,400 per employee.

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Gary Bolton Jailed Over Fake Bomb Detectors

A businessman has been sentenced to seven years in prison for making and selling fake bomb detectors.

Gary Bolton, 47, made millions of pounds selling the devices around the world, boasting they could detect explosives, drugs, ivory, tobacco and even money.

In actual fact they consisted of nothing more than empty boxes with handles and antennae which he made at home and at his Global Technology Ltd offices in Kent.

He denied two counts of fraud as a judge at the Old Bailey described the equipment as "useless" and "dross".

Bolton had background in research or security

Sky's crime correspondent Martin Brunt, at the court, said Bolton spent £1.82, plus the glue and antennae, on each product and then sold them for up to £15,000 each.

The court was told Bolton's company had a turnover of almost £3m, with up to 5,000 devices made.

Prosecutor Richard Whittam QC said tests proved the detectors, first called the Mole and later remarketed as the GT200, performed no better than random searches for explosives.

Bolton claimed they worked with a range of 700 metres at ground level and 2.5 miles (4km) in the air and said they were effective through lead-lined and metal walls, water, containers and earth.

But "double-blind" tests on a Mole device as far back as 2001 showed it had a successful detection rate of just 9%.

Sentencing the father-of-three, judge Richard Hone QC said Bolton had maintained the "little plastic box" was a piece of working equipment, and that he continued to "peddle" it to scores of international clients - including for use by armed forces - despite evidence proving it was "useless".

He added: "You were determined to bolster the illusion that the devices worked and you knew there was a spurious science to produce that end.

"They had a random detection rate. They were useless.

Bolton's company had a turnover of almost £3m

"Soldiers, police officers, customs officers and many others put their trust in a device which worked no better than random chance.

"The jury found you knew this but you carried on. Your profits were enormous."

Mr Whittam said Bolton admitted in interview to having no background in science, research, training or security, the court heard.

Around 1,200 devices were sold to Mexico, while orders were also shipped to parts of Asia and the Middle East.

The devices are still being used in Thailand.

Detective Inspector Roger Cook, from the City of London Police's Overseas Anti-Corruption Unit, said Bolton put "people's lives and livelihoods at serious risk, but his sole consideration was how much money he could make".

"Bringing Bolton to justice is the result of a long, complex and far reaching international investigation and his seven-year prison sentence should act as a warning to others who seek to act corruptly overseas with the belief that they will go undetected," he added.

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Mortgage Lending Up By Nearly A Third

Mortgage lending was up by 29% in July compared to the same month last year, new figures show.

The Council for Mortgage Lenders (CML) said that total gross lending increased to £16.6bn in July, up from £14.8bn in June.

It is the highest monthly estimate since before the financial crisis hit, with lending pitched at £18.6bn in October 2008.

CML market and data analyst Caroline Purdey said: "An improvement in sentiment and activity continues to show in the UK housing and mortgage markets, with a more positive picture also starting to emerge in the economy.

"Our forward estimate of gross mortgage lending in July reinforces a growing evidence base of a strengthening in the housing and mortgage markets."

The lift follows Government initiatives to boost the housing market, which include the Funding for Lending and Help to Buy schemes.

Persimmon also announced strong results on the same day as the CML figures.

The housebuilder's pre-tax profit jumped by 40% to £135m in the first six months of 2013.

Bovis Homes previously reported its half year profits rose by 19% to £18.6m, with average prices up 15% to £188,500.

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Housing Market: Builder Plots Acceleration

The boss of Bovis Homes has told Sky News the company is to step up its building of new houses as the market recovery gathers pace.

David Ritchie was speaking after the builder posted a 19% increase in first half pre-tax profit to £18.6m.

It said that while market house price increases were estimated at up to 2% over the year to date, its own average sale price had risen to £188,500 on average - a rise of 15%.

Bovis, like its competitors, has credited Government measures such as the Help to Buy shared equity scheme for improved activity in the market, benefiting first-time buyers especially.

Funding for Lending has aided borrowers in that it has brought down mortgage costs.

David Ritchie sees construction accelerating this year and next

The company spoke of an acceleration in business, with trading in the 32 weeks to August 9 realising a 43% increase in private reservations to 1,712 homes.

Mr Ritchie said: "The group has performed strongly during the first half of 2013 and has delivered a 50% increase in housing operating profit.

"We have plan in place this year to increase our production by around 25% year over year and we expect to increase our production again in 2014.

"So we are stepping up and building significantly more homes because of the initiatives the Government have put in place and our strategy being deployed."

Official data and other market surveys have all pointed to a recovery in activity, with the Royal Institution of Chartered Surveyors (RICS) suggesting there were signs of a recovery "round the corner" with every region of the country showing growth.

The speed of the market improvement in recent months has led ministers to dismiss fears that the Government's intervention risks creating a market bubble.

The property website Rightmove's latest report found the revival continued in August, despite the month seeing the first dip in sellers' asking prices during 2013.

It said asking prices edged down by 1.8% month-on-month to £249,199 on average - but the string of price increases seen over the last seven months meant they were still £20,000 higher now than at the start of the year.

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CBI Lifts Growth Forecast Amid Optimism

The CBI has lifted its forecast for economic growth for this year from 1% to 1.2% amid signs of a pick-up in business confidence.

Optimism about performance across the services, construction and manufacturing sectors has added to hopes that the recovery is gathering pace after 0.6% growth in the second quarter.

The CBI, which represents 240,000 UK businesses, has also increased its forecast growth for 2014, from 2% to 2.3%, predicting that increasing disposable income and business and housing investment will boost demand.

However, the body warns that a hoped-for rebalancing of the economy to become less reliant on consumer spending and more focused on investment and trade is taking longer than expected.

Its upgrade comes after figures last week showed that the eurozone, Britain's biggest trading partner, had emerged from recession.

The CBI says improvements in Europe together with a broader global recovery will give a positive boost to exports.

CBI chief John Cridland says recovery is still in its early days

However a recovering domestic situation should also mean more imports so the trade contribution will remain small, it warns.

Meanwhile the organisation says that the Bank of England's recently-announced "forward guidance" policy - designed to provide reassurance that interest rates will remain low for some time to come - will add to positive sentiment.

CBI director-general John Cridland said: "The economy has started to gain momentum and confidence is picking up, but it's still early days.

"We need to see a full-blown rebalancing of our economy, with stronger business investment and trade before we can call a sustainable recovery. We hope that will begin to emerge next year, as the eurozone starts growing again."

Stephen Gifford, CBI director of economics, warned that while a gradual increase in UK investment and UK trade was expected, risks remained including from the eurozone and a new regulatory financial environment.

"Meanwhile, emerging markets are facing structural challenges, particularly as China rebalances towards domestic consumption, which indicates muted growth prospects," he added.

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Tesco Fined Over Strawberry Promotion

Tesco has been fined £300,000 for misleading customers over a strawberry promotion.

The case - brought by Birmingham City Council - related to the price of 400g punnets of British strawberries.

More follows...

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Mortgages 'Most Affordable For 14 Years'

By Nick Martin, News Correspondent

Mortgages are more affordable now than at any time in the past 14 years, according to the latest figures.

Monthly payments now account for 27% of a new borrower's income in the second quarter of 2013, well below the average for the past 30 years.

Lower house prices and reduced mortgage interest rates have been the main drivers behind the significant improvement in affordability, according to the Halifax.

Halifax mortgage director Craig McKinlay said: "Substantial mortgage rate reductions and lower house prices have led to a significant improvement in mortgage affordability since the peak of the housing market six years' ago.

"The Funding for Lending Scheme has helped lenders to cut mortgage rates causing a further modest improvement in affordability over the past year despite the modest rise in house prices nationally."

It is good news for first-time buyers.

James Almond from Bramhall near Stockport has just got on to the properly ladder.

The 38-year-old bar manager said he felt the right deals were available to take the plunge.

He said: "I used a mortgage broker to look at the best deals and in the end it was quite affordable.

"Many of my friends aren't so lucky and are still living with their parents because the deposits required are so large."

But there remains a clear north-south divide when it comes to mortgage affordability, according to the Halifax.

Mortgage payments are at their lowest in Northern Ireland where they are just 17% of incomes compared to 36% in Greater London.

Independent mortgage consultant Richard Ignatowicz said the market can change quickly.

 "We can't just say mortgages are now more affordable than ever. It doesn't mean much in isolation.

"Borrowers need to be cautious about changes on the horizon. Will they still be able to afford a mortgage when the rate reverts to 5%? Tthat's the real question."

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A £350m Donation To Nation That Can't Be Used

An unspent donation made to the Government 85 years ago, which is now worth £350m, cannot be touched because it won't fulfil conditions of its use - paying off the national debt.

The anonymous donation of £500,000 was made in 1928 and established a fund which was designed to help the Government pay off the UK's debt.

It was made with a strict request that it should not be touched until it was able to reduce the national debt to zero.

Although it has grown 700-fold since the 1920s, it is unlikely to achieve its target - the national debt currently stands at £1.3trillion.

While the fund is growing at a rate of £5m to £10m a year, Britain's national debt rocketed by an estimated £121bn in 2011/12.

In the meantime, the fund, called The National Fund, is now managed by Barclays and is likely to keep on growing.

The anonymous donor who set it up at its outset is believed to have done so in response by a call from Conservative Prime Minister Stanley Baldwin, who wrote to the Financial Times in 1919.

He suggested it would be patriotic for British citizens to contribute towards paying off the national debt, which at that point had reached 140% of the total amount of money earned in one year by the UK (GDP).

Barclays Wealth and Investment Management is the fund's trustee

By 1927, the national debt had reached 160% of GDP and it is thought that the donor was prompted to set up the fund with the belief that it would grow sufficiently to pay it off.

The National Fund has now grown to become one of the largest charities in the UK by net assets.

But unlike most charities, it takes in no donations and provides no handouts to needy causes.

Papers lodged with the Charities Commission in 2012 said: "The aim of the charity is to create a fund, that either on its own or combined with other funds, is sufficient to discharge the National Debt.

"The ultimate beneficiary of the National Fund is the National Debt Commissioners."

The papers say the fund increased in value by £12m in 2012 which all came from dividends on investments. Last year it spent £570,000 on managing the fund and £430,000 on other activities.

Barclays has been trying for four years to get permission to use the money to make charitable grants or to turn it over to the Treasury, but any change would have to be approved by a court.

A spokesman for Barclays said: "We've been working ever since we became the trustee to change the original objects, which say the funds can be used only to pay off the entire national debt.

"We are working with the Charity Commission and the attorney general's office to look at how best to take the fund forward."

This week it emerged Joan Edwards left £520K to the Government

A spokesman for the attorney general's office said: "There has been correspondence between the Charity Commission, the trustees and ourselves over the National Fund.

"We are looking at a number of options for the future of the Fund, consistent with its object of extinguishing or reducing the national debt.

"It would not be right to comment further whilst this process continues."

A spokeswoman for the Charity Commission said is it continuing dialogue with the trustee and the attorney general's office regarding the charity.

This week, the Tories and Liberal Democrats gave up a £520,000 bequest from former nurse Joan Edwards amid confusion over whether she actually meant the money to go to the state or to the political parties in power.

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Swedes Plot £1bn Swoop For UK Manufacturer

By Mark Kleinman, City Editor

Another slice of Britain's industrial base is poised to fall into European hands with a near-£1bn takeover of Edwards Group, a Sussex-headquartered high-tech manufacturer.

Sky News can reveal that Edwards, which is listed on New York's Nasdaq stock exchange, is in advanced talks about a takeover by Atlas Copco, a major Swedish industrial combine.

A deal for Atlas Copco to buy Edwards could be announced as soon as next week, according to banking sources in the US.

Although it is not quoted in London and specialises in making products such as high-pressure vacuum pumps which are unfamiliar to the general public, the deal will nevertheless be closely-watched in Britain.

Edwards' takeover by Atlas Copco will follow a recently-agreed £3.4bn deal for Schneider Electric of France to buy Invensys, another British manufacturing stalwart.

Edwards employs hundreds of people at its Crawley head office and manufacturing facilities and is widely-held to be among the world's most advanced companies in its field. Its products are an important component in the supply chains of flat-screen television and solar cell manufacturers.

Vince Cable, the Business Secretary, would be alarmed if the deal was predicated upon the closure of any UK facilities but such a move from Atlas Copco was unlikely, said one banker.

Wall Street insiders said the Swedish group, which has a market capitalisation of more than £20bn, planned to offer around $9.20-a-share for Edwards, a healthy premium to the $8 at which it listed on Nasdaq last year.

It is unclear whether Edwards' board has formally voted to approve the bid, but insiders said that investment bankers at Barclays and Lazard, who are advising the British-based company, had recommended that it should do so.

Edwards opted for a listing on Nasdaq over London last year after concluding that it would achieve a higher rating for its shares if it went to the US, and next week's deal will signal the end of its brief tenure on the technology-focused exchange.

A supplier of vacuum pumps to the world's largest semiconductor manufacturers, Edwards was spun out of the BOC gases group after it was acquired by Linde, a German rival, in 2006.

Large chunks of Edwards' shares are still held by CCMP Capital and Unitas, the two private equity firms which acquired it from BOC.

Edwards had a market value of just over $950m (£608m) at Friday's closing share price of $8.45.

The offer from Atlas Copco, which is larger than Electrolux and Volvo, two other big Swedish manufacturers, is expected to crystallise another big financial gain for CCMP and Unitas.

It will also add another dimension to the Stockholm-based company's operations, which include making machines for the mining industry, air compressors and power tools.

Edwards employs more than 3000 people around the world, although it has shifted some jobs from the UK to lower-cost manufacturing sites overseas, including in Asia, recently unveiling plans for a vast factory in China's Shandong Province.

The company is now chaired by Nick Rose, a former finance director of Diageo, the drinks company, who is on the boards of BAE Systems, BT Group and Williams Grand Prix Holdings, the owner of the Formula One team.

Atlas Copco's bid comes six months after Edwards named Jim Gentilcore, who already sat on the company's board, as its chief executive, replacing former Jaguar Land Rover and JCB executive Matthew Taylor.

It was unclear on Saturday whether Mr Gentilcore would remain in place if the takeover of Edwards is completed.

Neither Atlas Copco nor Edwards could be reached for comment.

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Online Gambling Firms To Pay 15% Tax In UK

Online betting companies based in offshore havens to sidestep Britain's gambling taxes will be hit with a new levy that may raise £300m for the taxpayer.

The Government is to impose a 15% tax rate on operators in the £2bn remote gambling market.

The rules state that from December 2014 gambling must be taxed according to where customers are based rather than where the online operator is registered.

UK-based firms are already taxed

"It is unacceptable that gambling companies can avoid UK taxes by moving offshore, and the Government is taking decisive action to ensure this can no longer happen," Economic Secretary to the Treasury Sajid Javid said.

"These reforms will ensure that remote gambling operators who have UK customers make a fair contribution to the public finances."

The shift will affect some of the industry's largest players.

Ladbrokes, Bwin.party, William Hill and Betfair all have online operations based in Gibraltar, where taxes are levied at 1% and capped at £425,000.

The proposed 15% rate, which the Government said will be confirmed in its Budget statement next March, would mean that offshore operators are taxed at the same level as domestic internet betting companies.

Officials estimates that the new rules will bring in £300m a year in additional tax revenue.

Plans to bring offshore gaming companies under the UK tax system were outlined in the 2012 Budget, but the industry had been waiting for the detail - most crucially the rate at which they will be taxed.

William Hill, which has the largest share of the UK's remote gambling market, has previously suggested that it could challenge the changes on the grounds that they breach European Union competition law.

The Gambling Commission said that the estimated worldwide remote gross gambling yield (GGY) - excluding telephone betting - was £21.08bn during 2012, up 5% on the previous year.

It said the UK consumer GGY generated with operators regulated overseas, which includes telephone betting, is estimated to have grown approximately 1% between 2011 and 2012.

The commission said remote GGY for operators licensed in Great Britain accounts for approximately 4% of the global total.

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City Investors Bank On £55m RBS Branch Payout

By Mark Kleinman, City Editor

A consortium of City investors vying to buy 315 branches from Royal Bank of Scotland is in line to receive £55m in annual interest payments from the state-backed lender - even before they complete a deal.

Under the proposal W&G Investments, a vehicle set up by the former Tesco finance director Andy Higginson, would be paid a 5% "coupon" on a £1.1bn down-payment to acquire the branch network.

The payments would be made by RBS during the period between it agreeing to sell the branches to W&G and the completion of a deal, which analysts expect could take as long as two years.

If it takes longer, RBS could have to pay an even bigger sum to the consortium.

The details are disclosed in a document published on Friday by W&G, which will formally list on London's junior AIM stock market next week.

It marks the latest stage of RBS's protracted efforts to offload the business, codenamed Project Rainbow, under the orders of the European Commission in return for the banks's £45bn taxpayer bailout in 2008.

Santander pulled out of a deal to buy the RBS branches

RBS wants to revive the venerable banking brand-name Williams & Glyn to entice bidders and has granted W&G Investments a licence to use the name during the auction.

The admission documents include, however, dozens of risk factors that could inhibit a takeover of the branches by W&G, which is backed by leading investors such as Lansdowne Partners, Schroders, Talisman and Toscafund.

The potential barriers to a successful acquisition of Rainbow include the greater scrutiny of bank bosses by financial regulators and the drawn-out nature of a deal.

W&G said: "During the period between the Signing Date and the Completion Date, which is anticipated by RBSG to be approximately two years, it is expected that the Company [W&G] will have rights to monitor the performance of the Rainbow Assets.

"However... the Company may not have the ability or right to intervene and the value of the Rainbow Assets may be materially adversely impacted."

It also pointed to the ongoing review of Britain's small business banking market by the Office of Fair Trading, which it said could jeopardise investors' willingness to back a deal.

And it said adverse customer reaction to a takeover could put at risk the bank's desired funding model.

It said: "The currently anticipated funding model for Rainbow is dependent on deposits, rather than wholesale funding.

"There is a risk that there may be adverse public reaction to the Company post acquisition of Rainbow which could lead to depositors withdrawing their money.

"Certain customers and depositors may seek to change banks if they perceive the Separation or the acquisition of Rainbow by the Company might put their money at risk.

"This could result in a funding gap that would need to be addressed by accessing funding in the wholesale markets (provided that such funding were to be available) which is likely to be a more expensive form of funding for the Company than deposit-based funding."

W&G also warns in the documents that the recommendations of the Vickers Commission on banking reform could scupper a deal because of moves to force banks to make themselves safer by ring-fencing retail activities from investment banking operations.

Although the RBS network falls within the permissible limit of £25bn of deposits to avoid having to be treated as a ring-fenced bank, the W&G directors point to uncertainty over the legislation as another risk.

It said: "The draft secondary legislation to the Financial Services (Banking Reform) Bill provides that the requirement to ring-fence will not apply to UK banks holding less than £25,000,000,000 in 'core deposits'. At this stage it is unclear what the finalised threshold will be and therefore whether Rainbow would be a ring-fenced bank."

An earlier deal to sell the network, which comprises all RBS-branded branches in England and NatWest branches in Scotland, fell through last year when Santander UK pulled out citing concerns about IT systems.

Santander had initially agreed to pay £1.65bn for the branches, which include £19bn of assets, 250,000 small business customers and approximately 5,000 staff.

The rival bidders remaining in the RBS auction include a private equity bid from Corsair Capital and Centerbridge that is backed by the Church of England's pension fund, and one led by Blackstone, the US private equity group.

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