'Mumpreneurs' Could Be Lifeline To Recovery

By Poppy Trowbridge, Business and Economics Correspondent

It has been five years since the depths of the financial crash and still the key to kick-starting growth eludes the coalition Government.

The British economy started 2013 with zero momentum, but could more measures to help mums open businesses help get Britain growing again?

According to StartUp Britain, a group that supports entrepreneurs, 60% of small businesses are started from home.

And a growing number of those are being started by women who've left the workforce to have, or care for, their children.

Julia Hunter is a former City bond trader, and mum. Starting a family prompted her to start a business.

"I was looking to start my own business rather than work for somebody else purely because of the family side of things. It is important to me to just be around."

Mum-run companies are contributing a significant amount to the economy already.

According to Mumpreneur UK, there are 300,000 mum-run companies in the UK today.

As a group, they add about £7.4bn a year to the economy. Yet the average startup cash they require is only £500.

That's a low-risk, high-reward ratio that the Chancellor would admire.

Ms Hunter says British business needs more support from the Chancellor. She believes cutting VAT would be one way to encourage enterprise in the upcoming Budget.

Becky Jones from StartUp Britain says big banks and established companies should be encouraged more to support smaller startups.

She told Sky News: "Giving them support at the early stage can be a complete game changer for the life of a small business."

After all, these are the firms that will hire, produce, sell and export - at each stage contributing to the tax that the Government so desperately needs to slowly pay down debt.

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Ed Balls Joins Calls For Emergency Tax Cuts

Shadow chancellor Ed Balls has joined calls for an emergency tax cuts in next week's Budget.

Chancellor George Osborne is under pressure to make bold tax moves on Wednesday to kick-start the UK's flagging economy.

The looming prospect of a triple-dip recession and the recent loss of the UK's once-cherished AAA credit rating have heightened demands for a change of course.

But the Chancellor is expected to keep faith with his tough austerity programme, with Prime Minister David Cameron declaring the Budget would be about "sticking to the course".

In an interview with The Daily Telegraph, Mr Balls said temporary borrowing to fund a cut in the basic rate of income tax would pay for itself.

Labour has proposed a temporary VAT reduction as the best way to stimulate recovery, but Mr Balls said he would "applaud" any any type of tax cut.

"Something must be done now ... you need some fiscal action," he said.

"If George Osborne announced a temporary cut in the basic rate we would applaud him because we would say, 'At last he is finally doing something to get some spending power back into the economy'."

Former cabinet minister Liam Fox is leading Tory calls for a change of course - calling for Corporation Tax to be reduced to zero and more cuts to public spending.

A successful Budget - after last year's embarrassing U-turns - is seen one key to calming restive Tory MPs amid poor poll ratings and the Eastleigh by-election failure.

Other prominent backbench demands include cancelling a fuel duty rise due in the autumn and scrapping the beer duty escalator that automatically ups the price of a pint.

Mr Osborne is tipped to announce extra investment in housebuilding and road projects - called for by leading business groups - and help for people to buy homes.

But he will not abandon "Plan A" by increasing borrowing to fund it - a move being floated by Liberal Democrat Business Secretary Vince Cable.

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Economic Recovery 'In Sight', Says Mervyn King

Recovery is finally "in sight" for Britain's beleaguered economy, the governor of the Bank of England has said.

Sir Mervyn King said that "momentum" was building within the economy which would become apparent during the course of the current year.

But in an interview with ITV News, he cautioned that it did not mean a return to pre-recession levels of private consumption and public spending.

Instead, he said there would have to be a "big shift" in resources towards exports and manufacturing investment as the economy re-balanced.

"There's no point pretending we can go back to the pattern of demand we saw in 2006-2007," he said.

"We need a big shift of resources towards exports, towards manufacturing and business investment. The consequence of that is we have to accept that private consumption and public spending will not grow as rapidly.

"We will get back to the level of unemployment and the path of output, we won't get back to the pattern in which we had a big trade deficit, consumption was high and exports were relatively weak.

"That balance has to be changed. Policies are in place to achieve it. We are on track to achieve it. Recovery is in sight."

He said that the economy would even have grown last year by 1.5% if it was not for falls in construction and North Sea oil production.

"There is momentum behind the recovery that's coming. And I think that during the course of 2013 we will see the recovering come into sight. When - I can't possibly tell you and it would be silly of me to pretend that I could," he added.

Mr King, who is due to retire from the central bank in June, used similar language when he presented the BoE's quarterly economic forecasts last month.

He will be replaced at the helm by Bank of Canada governor Mark Carney.

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Samsung Launches Galaxy S4 Smartphone

Samsung has unveiled its new Galaxy S4 smartphone at the Radio City music hall in New York, with a performance by a tap-dancing child and a story about a lovestruck backpacker to show off its new features.

The highly-anticipated smartphone - the fourth generation of the Galaxy S - is likely to pose a major threat to Apple and its popular iPhones.

Samsung unveiled a host of new features with its S4, including a dual camera function that allows users to take simultaneous photos and videos using both rear and front cameras, which can then blend the pictures together.

A story album function allows users to create a photo album which is personalised around a timeline of special occasions and events in their lives, and lets them manage associated content such as comments on social networks, locations and weather information.

Group play lets people enjoy music, photos and games with people around them, and the Samsung "smart pause" function allows users to control the screen using their eyes.

Paul Thompson, managing director of mobile advertising company BlisMedia, said: "Again the S4 is setting the benchmark on how to really integrate a mobile device into your everyday life."

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Morrison's In Talks Over Ocado Venture

By Mark Kleinman, City Editor

Wm Morrison, Britain's fourth-biggest supermarket chain, is in talks over a partnership with Ocado that would involve utilising the online retailer's warehouse capacity and technological expertise as it plays catch-up with its larger rivals.

I have learned that Morrison's, which will on Thursday announce its intention to launch a fully-fledged online grocery business, is in detailed talks with Ocado's management team about the joint venture.

The details have not yet been finalised and the negotiations will not be completed in time for an announcement to be made tomorrow, according to insiders.

One person close to the talks said that while they had been taking place for some time, the talks might not lead to an agreement, and added that Morrison's online strategy was not reliant on striking a deal with an external partner such as Ocado.

Under the terms of the deal being discussed, Morrison's would pay to use part of Ocado's new distribution centre in Dordon, north Warwickshire, and would harness Ocado's acknowledged digital technology expertise to build its customer-facing website.

People close to the two companies said it was possible, although unlikely, that Morrison's would also acquire a small equity stake in Ocado.

Even if Morrison's did become a shareholder in Ocado, it should not be viewed as the prelude to a full takeover, which has been widely speculated in the City for some time.

Dalton Philips, Morrison's chief executive, will use tomorrow's full-year results announcement to signal the company's move into online retailing and will outline the chain's plans to build a substantial convenience store business.

Morrison's recently bought 49 Blockbuster UK outlets following the DVD rental chain's collapse into administration.

The two new strategic objectives for Morrison's come years after all of its main competitors – Asda, J Sainsbury and Tesco – built a major presence on the internet.

Tesco is now the world's biggest online food retailer, while Waitrose, which backed Ocado's launch, also has its own digital service.

Morrison's is also drawing up plans to open two so-called 'dark stores', which are used to fulfil online orders, as part of its internet strategy.

If the talks with Ocado conclude successfully, the partnership would deliver additional revenue for the online retailer, which has struggled to break even since its launch more than a decade ago, despite winning plaudits from customers.

Sir Stuart Rose, the former chairman of Marks & Spencer, recently joined the board of Ocado and will replace Lord Grade as its chairman in the coming months.

His arrival fuelled speculation that Ocado would become a takeover target, although this was dismissed as a "red herring" by those close to the company.

Morrison's and Ocado, which will issue an interim management statement tomorrow, declined to comment.

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Samsung Galaxy S4 Smartphone Set For Launch

Technology fans are gearing up for one of the biggest product launches so far in 2013 - Samsung's Galaxy S4 smartphone.

The unveiling will take place later in New York with the South Korean firm hoping to set a new benchmark for its rivals.

Rumours circulating on the internet suggest the handset will have a high definition five-inch screen, 13-megapixel camera and a powerful eight-core processor.

There is also speculation that users may be able to scroll the screen using eye movements.

The handset's predecessor, the Galaxy S3, was a massive success for Samsung following its release last year.

It quickly became the standard bearer for Android phones and, combined with the firm's other devices, helped the company overtake Apple as the world's biggest-selling smartphone maker.

However, the iPhone is still the most popular smartphone globally and Apple also has a slightly larger market share in the US.

The stateside launch is being seen as a bold move by Samsung to tip that balance.

Samsung has teased the S4 with YouTube videos and, in recent days, a shadowy picture of the phone.

Greg Isbister, CEO of mobile advertising company BlisMedia, said if the rumours are true then the new device has great potential and the "ability to disrupt the mobile market".

HTC's new device is one of the phones hoping to win customers from Samsung

He pointed out that data from any eye tracking technology could also prove useful to advertisers.

"(It could) determine the effectiveness of advertising campaigns and generally give us a feel for what content – format, colour and position on the screen - holds our attention the most."

But Isbister is also hoping that Samsung will improve the usefulness of the Near Field Communication (NFC) technology that featured in the S3.

"Currently the feature is completely useless," he told Sky News. "There should be payment integration and the ability to integrate travel such as oyster systems."

Recent months have also seen Samsung's rivals launching flagship products, keen to steal customers from the big two.

Taiwanese firm HTC is looking to turnaround a big drop in profits with the HTC One handset - which has been widely praised by technology sites.

Canada's Blackberry is also hoping to boost its flagging fortunes with the Blackberry 10, while China's Huawei last month unveiled what it claims is the 'fastest' phone yet - the Ascend P2.

Apple's next shot in the smartphone arms race is expected this summer with an update to the iPhone 5.

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Thomas Cook Plots £400m Share Issue

By Mark Kleinman, City Editor

Thomas Cook, Britain's biggest tour operator, is drawing up plans to tap shareholders for more than £400m in a bid to secure the company's long-term future.

I can reveal that Thomas Cook is working on the equity-raising alongside a wider overhaul of its capital structure that will include new long-term borrowing facilities with its lenders.

The news, which is expected to be announced in the coming weeks, will be designed to restore investor confidence in one of the most prominent names on British high streets less than a year after a deal with its banks hauled it back from the brink of collapse.

Last week, Thomas Cook's new chief executive, Harriet Green, announced plans to axe 2500 jobs in its UK operations, which have been hit hard by competition from internet travel agents. Nearly 200 high street outlets are closing as part of the changes.

People close to Thomas Cook said the financial restructuring would follow details of a renewed focus for the company that will be announced by Ms Green alongside a trading update tomorrow. The strategic review is likely to include pruning a number of the group's brands as well as sell non-core assets such as its stake in National Air Traffic Services, the organisation responsible for controlling Britain's commercial airspace.

Other businesses that analysts have speculated will be sold include Neilson, its skiing business, Elegant Resorts, its upmarket travel agent, and Gold Medal, a long-haul specialist.

Insiders said it was unlikely that Thomas Cook would announce details of any of the disposals tomorrow.

The capital-raising that will be revealed in the coming weeks is expected to take the form of a share placing rather than a more conventional rights issue, and will aim to make a significant dent in Thomas Cook's £800m debt-pile. The plans remain subject to change, insiders said today.

Under stock exchange guidelines, companies can place up to 10 per cent of their market capitalisation without requiring the approval of shareholders, although if it confirms plans to raise more than £400m - a figure equivalent to roughly half its current £754m market value - it would require investors' consent.

"The deal will take the issue of the company's financial future off the table," one person familiar with Thomas Cook's plans said.

The equity placing and broader overhaul of the company's capital structure are being worked on by Credit Suisse, the investment bank that is Thomas Cook's retained financial adviser.

Details of the overhaul of Thomas Cook's other financing facilities were unclear on Tuesday, although it is likely to include reworked debt facilities that replace a 400m euro bond that is due to mature in 2015.

Ms Green's comments tomorrow about the future of Thomas Cook will be closely-watched by the City. She joined last year from Premier Farnell, a distributor of electronic components, where she was credited with an acceleration of the growth in revenues derived from digital channels.

Thomas Cook, which reports results for the first half of its financial year in May, describes itself as the oldest and best-known name in leisure travel, with sales of £9.5bn last year, more than 30,000 employees and 23 million customers.

Last November, it revealed a £590m loss for the year, a figure exacerbated by goodwill and other writedowns valued at £369m.

Analysts at Morgan Stanley predicted that a capital-raising would be on Ms Green's agenda in December.

"The company's own 'fiscal cliff' is in 2015 when the £1.2bn bank facilities (May) and the 400m euro bond (June) mature. It will need to have financing in place for these by September 2014 at the very latest in order to be audited as a going concern," they said.

"Prudence would suggest the company starts a year early, so we think management could think about raising capital in 2013, ideally not too soon after the Spring strategic review. We think an equity raise is the most logical route as the debt level needs to be reduced."

It is understood to have deliberated for months about the UK shop closures and job losses disclosed last week. Peter Fankhauser, the head of Thomas Cook's Continental Europe & UK division, said when the news was announced:

"It is never easy to make decisions that impact directly on our people, but we also owe it to our customers to shape the business effectively and ensure that, when they book their holiday with us, our administrative costs are as low as possible.

"As we improve and develop our online capabilities, maintaining a strong presence on the High Street is an important part of our omni-channel strategy. Even after these changes we will still have one of the largest retail networks in UK travel."

A spokeswoman for Thomas Cook said that a capital-raising would not be announced tomorrow but said she could not comment on "speculation" about such a development in future.

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Minimum Alcohol Pricing: Anger Over 'U-Turn'

Conservative MPs have spoken out as speculation grows that David Cameron's plans for minimum pricing of alcohol are being scrapped.

The Prime Minister has backed the controversial policy, which medical groups argued would save lives.

A base price of 45p per unit was suggested in a consultation document issued last year, with the Government yet to release its conclusions.

But a number of Cabinet ministers including Theresa May, Andrew Lansley and Michael Gove have signalled their doubt over the scheme.

And more MPs have been reacting to increasing numbers of reports that the coalition Government will not try to implement the plan.

Posting on Twitter this evening, Totnes MP Sarah Wollaston - a former GP - wrote: "Very concerned about suggestion that minimum pricing to be dropped from alcohol strategy."

Fellow Conservative Tracey Crouch said: "I really hope rumours of u-turn on minimum unit pricing for alcohol are not true. We must tackle problem of easily accessible cheap alcohol."

Miles Beale, chief executive of the Wine and Spirit Trade Association, said consumers would welcome the move.

"Minimum unit pricing would penalise responsible drinkers and treat everyone who is looking for value in their shopping as a binge-drinker," he said.

"Evidence has also shown it will do little to tackle problem drinking," he said.

Labour's shadow home office minister Diana Johnson said: "This is weak leadership and weak government. The Home Secretary and the Prime Minister said this measure would cut crime and prevent alcohol abuse. What's changed?"

Eric Appleby, chief executive of Alcohol Concern, said: "MUP (minimum unit pricing) is a targeted measure designed to protect the young and the vulnerable heavy drinker.

"All the evidence shows it will save lives and reduce crime and we mustn't allow the interests of big business to derail this important policy."

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Pound Falls To Another Low Against Dollar

The pound has continued to fall against the dollar, hitting a level last seen in the early days of the Coalition.

It fell to $1.4868 on Monday, after slipping below $1.49 for the first time in more than two and a half years on Friday.

The last time it was at this level was around the time of the General Election in 2010, and during the recession of 2008/2009.

The slide highlights the differing fortunes of two of the world's largest economies.

Last week, the US economy was given a boost when its jobless rate fell to 7.7% - the lowest since December 2008.

But concerns that the UK is heading for a triple dip recession remain, following a string of weak economic data and the downgrading of its credit rating by Moody's.

Sterling has been one of the worst performing major currencies this year, falling by around 8.5% against the dollar and 7% against the euro to date.

It also lost ground against the euro on Monday, which was up 0.3% against sterling at 87.34p.

Market analyst Nawaz Ali from Western Union said the falls come as investors prepare themselves for next week's Budget.

"The overriding concern is that the Government is giving little indication that it will take its foot off austerity which is hurting economic growth," he said.

He said speculation is also mounting that Chancellor George Osborne may announce a review of the Bank of England's remit.

"Investors are eyeing a change to the bank's inflation targeting, which may give Governor King and the incoming Mark Carney more room to explore new monetary stimulus," he added.

More quantitative easing is likely to hit sterling further because it increases its supply and drives its exchange value lower.

The currency movements came the day before industrial and manufacturing data for January, both of which are expected to show little or no growth over the month.

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Danger As Electrical Product Recalls Ignored

Millions of potentially deadly electrical appliances are sitting in homes around the country despite attempts to recall the products, consumers are being warned.

The Electrical Safety Council (ESC) says one person is killed every seven days by an electrical accident and 350,000 people are injured annually, partly because of a "shockingly low" response to product alerts.

The charity found the average success rate of a product recall is just 10%-20%.

With 266 product recalls in the last six years and manufacturers making hundreds of thousands of items, it is thought millions of dangerous items stay in people's homes.

Research by the ESC shows almost two million adults have knowingly ignored a recall notice and a further one million admit owning an electrical item that has been recalled.

The researchers also found many consumers would jeopardise their safety if sending back a recalled product was too inconvenient or meant going without a luxury item such as a television or hair straighteners.

The ESC is launching an online tool that will allow users to quickly and easily discover if they own an electrical product that has been recalled.

The charity's Emma Apter said: "The small inconvenience of returning a recalled item is worth it when you consider that faulty products can electrocute or cause a fire.

"We firmly believe that there is more that retailers and manufacturers can do to help ensure customers are aware when a product has been recalled, and what to do if they need to return an item."

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Coalition Seeks To Deliver Posties’ Share Plan

The Government is accelerating plans to privatise Royal Mail by canvassing external advisers to run a share scheme that will give the postal operator's 145,000 employees a stake in the company.

I have learnt that ministers at the Department for Business, Innovation and Skills (BIS) last week launched a tender process to recruit an administrator for the staff share ownership programme, heralding what will be the largest privatisation for 30 years.

Advisers are expected to be appointed in the coming weeks. The chosen party will be responsible for overseeing the placement of at least 10% of Royal Mail's shares in the hands of its staff, fulfilling a commitment made by the Government as part of its plan to inject private capital into the company.

The adviser will also oversee the necessary back-office infrastructure to supervise the scheme, insiders said.

Sky News revealed last month that Michael Fallon, the Business Minister overseeing the privatisation plans, has asked officials to devise an employee equity scheme designed to avoid the process of 'stagging', which blighted the huge privatisations of the 1980s under Margaret Thatcher. Stagging is the term given to those who buy or receive shares at the offer price of a flotation and then sell them immediately into the market.

It is unclear how long Royal Mail employees would be obliged to hold onto their shares but experts say it would be likely to be for a period of several months at least.

Officials pointed out that by setting a floor for employee share ownership of 10%, they were preparing for the largest statutory commitment to staff participation of any UK Government privatisation.

The sell-off plan, which would be the largest since BT was privatised in 1984, could take the form of a sale to a single buyer or, more likely, a stock market listing that would place Royal Mail on the cusp of the FTSE-100.

Under the Postal Services Act passed in 2011, the Government cannot sell a single share in Royal Mail until it has made provisions for workers to own a stake in the company.

A team of officials from BIS and the Shareholder Executive, which oversees the management of state-owned companies, is working for Mr Fallon on the employee share offering.

The plans are not yet finalised but senior Government sources confirmed that an 'anti-stagging' clause was likely to be included in the scheme to avoid the prospect of millions of pounds-worth of additional shares being dumped in the market as soon as the listing takes place.

Under Moya Greene, Royal Mail's Canadian chief executive, the company has been discussing the company's prospects with potential investors in the UK, Canada and the US as it tries to familiarise fund managers with its financial performance.

Ms Greene, who joined about two years ago, has been cutting thousands of jobs as part of a move to automate many of Royal Mail's processes and modernise the company. Her actions have caused some tensions with trade unions, but their hostility to a privatisation process appears to have eased in the context of previous efforts.

The company's efforts have begun to pay off, with operating profit increasing from £12m to £144m in the six months to September 2012, on the back of a surge in demand for sending parcels as consumers switch their buying habits to online retailers.

A BIS spokesman declined to comment.

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Apprenticeships: Cameron's Pledge On Training

David Cameron will today pledge to make it the "new norm" for school leavers to take an apprenticeship or go to university.

The Prime Minster wants the country to follow Germany's lead where work-based training sits alongside higher education as the automatic options considered by teenagers when they finish their exams.

During a visit to a training academy in Buckinghamshire to mark the start of National Apprenticeship Week, Mr Cameron will call on employers, schools and colleges, and his own ministers to expand apprenticeship opportunities for young people.

The Government will formally respond to the Richard Review, which has looked at ways to improve the quality of apprenticeships, later this week.

Mr Cameron said: "Apprenticeships are at the heart of our mission to rebuild the economy, giving young people the chance to learn a trade, to build their careers, and create a truly world-class, high-skilled workforce that can compete and thrive in the fierce global race we are in.

"There are record numbers of people taking up an apprenticeship, with a million starting one in the last few years. And as we take forward the Richard Review, our drive to reform and strengthen apprenticeships, raising standards and making them more rigorous and responsive to the needs of employers - means that an apprenticeship is increasingly seen as a first choice career move.

"But we need to challenge ourselves to go even further, that is why I want it to be the new norm for young people to either go to university or into an apprenticeship. We need to look at how we can expand apprenticeship opportunities so that they are available to all young people who are ready and eager to take them up, and aspire to get ahead in life."

Barclays is launching a new programme to help get 10,000 people into work

Barclays is launching a new nationwide scheme today to support 10,000 young people into work. The Barclays Bridges Into Work programme will see local Barclays teams matching up suitable apprentices and businesses in their area.

In addition, it is doubling the number of apprentices that it is recruiting into its own workforce to 2,000 specifically helping young people in long-term unemployment with little or no qualifications into permanent and fully paid jobs.

British Airways has said it will recruit up to 200 apprentices across a variety of different departments this year, covering engineering, operations, IT, finance and project management courses.

Meanwhile, a new study has revealed fewer than one in five parents believe apprenticeships have the same status as university education.

The survey of 400 working parents by the Chartered Institute of Personnel and Development also showed that almost half thought apprenticeships were more appropriate for manual or blue-collar jobs.

A report by the Centre for Economics and Business Research showed that apprenticeships are forecast to contribute £3.4bn a year to the economy through productivity gains by 2022.

The number of people completing apprenticeships is predicted to increase from 260,000 in the current financial year, to 480,000 by 2022, said the report.

Shadow business secretary Chuka Umunna said: "We are proud to be celebrating National Apprenticeships Week, launched by Labour in government and now in its sixth year.

"However, the recent fall in the number of apprenticeships for under 19s is greatly concerning, as well as recent evidence showing that one in five apprentices say they are not receiving training and that many are not being paid. Ministers need to get a grip and back Labour's plans for more, better quality apprenticeships."

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Vince Cable: Tories Waging 'Economic Jihad'

Vince Cable has accused right-wing Conservatives of waging "idealogical jihad" on public spending and warned that the Liberal Democrats would block efforts to implement some cuts.

Speaking at a fringe event on the eve of the party's spring conference in Brighton, the Business Secretary also warned that Tory efforts to reduce immigration were "causing a great deal of harm to the economy".

He said: "What we have to make absolutely clear is that there is a difference between managing public spending, controlling public spending in that context - having that financial discipline - and the kind of thing that a lot of right-wing Conservatives are wishing for, which is a kind of British Tea Party.

"A kind of ideological jihad against public spending and public services."

Kicking-off the gathering on Friday, party leader Nick Clegg denied the Lib Dems were in crisis in the wake of sexual harassment allegations and the conviction of ex-Cabinet minister Chris Huhne.

Deputy PM Nick Clegg admitted the party had 'let people down'

But the Deputy Prime Minister did admit the party had recently "let people down" and needed to take a "long, hard look in the mirror".

He said: "No doubt you will be aware of the recent allegations that have been made about sexual harassment in our party.

"When concerns were brought to the attention of members of my team we acted to address them.

"But this should not have just been the responsibility of a few individuals acting with the best of intentions.

"It must be the responsibility of the party as a whole to make sure we have the processes and support structures in place now and in the future.

Disgraced MP Chris Huhne was praised for his constituency record

"We didn't, and as a result we let people down. Liberal Democrats, that is not acceptable to me."

Delegates gave disgraced former Energy and Climate Change Secretary Huhne a round of applause after Baroness Shirley Williams praised his record as a constituency MP.

She described as "domestic tragedy" the situation of Huhne and Vicky Pryce, his ex-wife, who was found guilty of perverting the course of justice after she took speeding points on his behalf.

"We can only say of them that this is a tragedy that sometimes overcomes people; not least those in public life," she told the conference.

The party is bracing itself for showdowns with activists next week over so-called secret courts legislation and the coalition's economic strategy.

Labour has also challenged Mr Clegg to break coalition ranks by supporting the introduction of a mansion tax - long favoured by Lib Dems - in a Commons vote next week.

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'Mummy Tax': Cameron Under Fire Over Cuts

By Tadhg Enright, Business Correspondent

David Cameron will have a mother's day card delivered to his door by campaigners for new mums whose benefits are about to be capped.

Labour has accused the Government of imposing a "mummy tax" and said the welfare reforms are part of a series of austerity measures which unfairly target mothers.

Shadow minister for women Yvette Cooper MP told Sky News: "It's like David Cameron and George Osborne have a blindspot about women because they're paying three times more than men in tax and benefit and pay and pension changes.

"That is so unfair when women earn less and own less than men.

"It shows that the Prime Minister and the Chancellor just don't get it and it's outrageous that new mums are hurt hardest."

Yvette Cooper says the changes are unfair

Around 340,000 women claim either statutory maternity pay or maternity allowance every year.

Until now their benefits have gone up in line with inflation which currently stands at 2.7% according to the Consumer Price Index.

But from next month new mothers' benefits will go up by just 1% every year as part of a three-year cap on welfare increases.

So by 2015 critics have calculated the benefits will be effectively cut by £180 because they will not increase by as much as the cost of living will.

Conservative MP Amber Rudd said: "The fact is there are so many good things we are doing to try to help mothers.

"What mothers really want is welfare that works, improved education and jobs.

"That's what they talk to me about on the doorstep and I feel this Government is doing a lot on that front.

"And it's rank hypocrisy of labour to accuse us on this front when they have made no suggestions about how to reduce the deficit."

Single mum-to-be Helen Mockridge has one clear suggestion for a better way to reduce the deficit.

"Taxing really rich people, obviously, that's where the money should come from," she said.

"For me it's a real no-brainer and it makes me really angry that certain parts of society are very, very wealthy and the gap between rich and poor is getting bigger.

"That's where the money should be coming from, not from single mothers or the disabled or any other vulnerable group."

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