Rail Fare Protests As Charges Set To Increase

Thousands of people are set to protest at 50 stations across the UK against the rapid rise of rail fares compared to the average earnings.

Passengers will learn how much more they will be paying from next January when inflation figures are released later.

Analysts predict the latest RPI figure - which is used to calculate next year's rail fare rise - will be 3.3%.

This would see regulated rail fares increasing by 4.3% in January, well above average wage rises.

Campaigners claim train fares have risen three times faster than wages in the last six years.

The next price hike will be the sixth time in seven years that rail fares have outstripped wages, they say.

Between 2008 and next January rail fares will have jumped by 40%, compared with a 15% increase in average earnings, it is claimed.

Prostest are planned at 50 stations including Birmingham New Street

The TUC warned some season tickets could rise by 9%, against forecasts of a 2.4% increase in average earnings next year.

The union said rail privatisation was costing taxpayers £1.2bn a year despite "minimal" investment in trains and stations.

TUC general secretary Frances O'Grady said: "Every year hard-pressed rail commuters have to hand over an ever greater share of their earnings just to get to and from work.

"Wage-busting fare rises are not even going on much needed service improvements either. Instead, passenger and public subsidies are lining the pockets of the shareholders of private rail companies."

The TUC and the Action for Rail campaign group have planned a series of demonstrations at stations including Birmingham New Street, Bristol Temple Meads, Glasgow Central, Manchester Piccadilly, Newcastle Central and London's Paddington and Victoria.

Stephen Joseph, chief executive of Campaign for Better Transport, said: "Getting to work is now the biggest single monthly outgoing for many commuters - more than food, more than housing.

"One of the surest ways of stamping on any green shoots of recovery is to price people off the trains and out of the jobs market. For the sake of the economy, we should end above-inflation fare increases now and start planning for fare reductions."

A Department for Transport spokesman said: "The Government is investing record amounts into our railways, which will help deliver economic growth, improve performance and significantly boost passenger capacity.

"However, we also recognise it is tough for passengers. That is why we are already limiting these rises by capping the average regulated fares increase at 1% in real terms and will be announcing further measures to ensure greater fairness on fares for passengers later this year."

11.46 | 0 komentar | Read More

Housing Market Recovery 'Round The Corner'

House prices have risen at their fastest pace since 2006 sparked by a rising demand for property across the country.

According to the latest housing market report by the Royal Institution of Chartered Surveyors (Rics) there are signs a recovery is "round the corner".

The West Midlands and the North East, areas which Rics said have "suffered more than most" since the market crash, experienced the biggest increases in buyer activity in July.

And growth in buyer numbers was seen across the UK as the upswing in activity, which has been particularly concentrated in London and the South East, spread outwards.

Around 53% more surveyors reported increases rather than falls in demand.

As buyer numbers strengthened, prices rose across the country for the fourth month in a row, growing at their fastest rate since the market peak of November 2006, Rics said.

Looking ahead, a balance of 35% more surveyors expect prices to continue their increase rather than fall, while 53% more surveyors expect sales to rise over the next three months.

Peter Bolton King, Rics global residential director, said: "It is clearly good news that those parts of the property market that were struggling are at last showing some signs of life."

Lenders, estate agents and property websites have been reporting big uplifts in activity this year following the launch of various Government schemes to unblock the housing market.

More first-time buyers have been seen entering the market and sellers also appear to be more confident about sticking close to their asking prices amid improved mortgage availability.

But fears have been raised that the initiatives must not lead to a property bubble.

Particular concerns have been raised about a Government scheme called Help to Buy, which will underwrite £130bn of low-deposit mortgage lending with state guarantees from next year.

11.46 | 0 komentar | Read More

RBS Sell-Off Unlikely Until 2018 - Cable

Business Secretary Vince Cable has signalled that the Government is unlikely to sell its stake in Royal Bank of Scotland for another five years.

Mr Cable claimed it was "pretty unrealistic" to expect the bailed-out bank to be back in private ownership before the current parliament ends in 2015.

And the senior Lib Dem went on to suggest that the Government would probably retain its 82% stake for most of the next parliament.

"I don't think it would be sensible for the Government to set a rigid timetable, but given where we start from I think it is pretty unrealistic to think of RBS going back into private ownership this Parliament or probably within five years," he told The Sunday Telegraph.

His comments conflict with remarks by David Cameron, who earlier this year said the holding should be sold "as soon as possible".

'Pretty unrealistic': Vince Cable

RBS chairman Sir Philip Hammond has also suggested the sale process could start as early as next year.

It indicates the two coalition parties will go into the next general election with different visions about how and when RBS will return to the private sector.

The Government spent £45bn on keeping RBS afloat in 2008 in the wake of the financial crisis, buying shares at 502p each. After Friday trading, the price was 325.6p.

The prospect of a lengthy spell in private ownership will increase the pressure on the bank to be broken up.

Assets such as Ulster Bank and the RBS commercial property book, which is worth £63bn, could be hived off and recapitalised separately.

Investment bank Rothschild has been tasked with reviewing whether the 81% state-owned lender should be split into a "good" and "bad" bank.

Mr Cable said: "I think there is a very strong argument for saying that the bank got too big and indeed that was the source of its undoing.

"But we are having to balance the benefits of breaking up the bank (and) the potential benefits for competition (with) the significant costs, particularly in terms of disrupting IT systems.

"My colleagues in the Treasury are doing very detailed work on that cost-benefit calculation, because there is no simple yes or no answer."

Asked if RBS would be better as a UK-focused retail and corporate bank, he added: "The Chancellor and I have the same view about this. We are not nationalists and of course there is an argument for international banking.

"But we do need to have strong UK banks, particularly supporting our business community. At the moment that market does not function well."

If the Government does keep its stake in RBS for longer, it would be able to increase pressure on the bank to lend more.

Speculation about the company's future has intensified after it announced earlier this month that it had returned to profit.

The firm made a half-year pre-tax profit of £1.37bn, compared to a £1.68bn loss in the same period last year, and has now seen its first two quarters of consecutive growth since the crash.

11.46 | 0 komentar | Read More

Fracking Must Be Accepted By Britain, Says PM

David Cameron says the country should accept fracking, claiming the controversial method of extracting gas will attract "real public support" when the benefits are explained.

The Prime Minister said the process would not damage the countryside and cause only "very minor change to the landscape".

Writing in The Daily Telegraph, Mr Cameron said: "I want all parts of our nation to share in the benefits: north or south, Conservative or Labour."

He added: "If neighbourhoods can really see the benefits - and get proper reassurance about the environment - then I don't see why fracking shouldn't get real public support."

Mr Cameron has written in support of the controversial fracking method

The intervention follows comments from former Government adviser Lord Howell of Guildford, the father-in-law of Chancellor George Osborne, who suggested that fracking should be confined to "desolate" areas of northern England.

Fracking - the process of extracting gas by the hydraulic fracturing of rock using high pressure liquid - has transformed the energy market in the US.

It has cut costs for households and businesses, and ministers hope for a similar effect in the UK.

The PM said it has "real potential to drive energy bills down" and insisted the Government was not "turning our back" on a low carbon generation but needed to secure a mix of energy sources.

In an effort to persuade communities of the benefits of fracking, firms will offer £100,000 of benefits for each exploratory well.

Anti-fracking protester in Balcombe, West Sussex

Mr Cameron added: "Companies have agreed to pay £100,000 to every community situated near an exploratory well ... If shale gas is then extracted, 1% - perhaps as much as £10m - will go straight back to residents."

He sought to play down fears about the environmental dangers posed by fracking, claiming there was "no evidence" that it would cause contamination of water supplies or other damage if properly regulated.

Last week Mr Cameron said Britain would be "making a big mistake" if it did not seriously consider fracking and the prospect of cheaper gas prices.

The village of Balcombe in West Sussex has become the focal point of anti-fracking protests as energy company Cuadrilla attempts to drill there.

11.46 | 0 komentar | Read More

Apple Wins Samsung Patent Case In US

Apple has won the latest victory in a long and bitter global battle with Samsung over alleged patent infringement.

The US International Trade Commission (ITC) found Samsung was in violation of two patents and banned American imports of some of its devices.

However, the ban is currently on hold because US President Barack Obama has 60 days to review the decision and could veto it.

Just days ago, the Obama administration overturned an ITC ruling from June that would have banned the sales of some older iPhones and iPads in the US for violating Samsung patents.

Letting the ban on Samsung devices stand after having so recently intervened in the Apple case could spur allegations of favouritism towards the Californian company.

Samsung's Galaxy 4 (front) and Apple's iPhone 5

The South Korean firm was cleared of infringing four other patents involved in the dispute, which has deepened as competition between the two firms intensifies.

Apple claims Samsung's Android phones copy vital iPhone features but the rival has fought back with its own complaints.

It has recently cut into Apple's market share and is now the leading smartphone manufacturer, as well as having growing success with its Android tablet computers.

The legal cases typically involve older products that are no longer widely sold but a victory could affect future features and therefore slow down a rival's momentum.

Apple could also seek to ban imports of phones released since the case was filed in 2011.

The so-called 'Steve Jobs patent' was one of those upheld

Samsung spokesman Adam Yates said the company was disappointed but vowed it would continue to release new products.

He added that measures had been taken to ensure they would continue to be available in the US.

Apple said in a statement that the ITC "has joined courts around the world in Japan, Korea, Germany, Netherlands and California by standing up for innovation and rejecting Samsung's blatant copying of Apple's products."

It continued: "Protecting real innovation is what the patent system should be about."

The patents supported by the ITC ruling included the so-called "Steve Jobs patent" which relates to the use of touchscreens, and one covering the audio socket.

11.46 | 0 komentar | Read More

High Street Housing Plans Come Under Fire

Store Vacancies Hit New High Level

Updated: 11:50am UK, Monday 20 May 2013

A surge in shopping centre vacancies means almost one in every eight British stores is now empty, according to a new survey.

Empty shops now account for 11.9% of retail space, after failures including Comet and Jessops knocked holes in the shopping hubs and out-of-town retail parks.

The percentage of UK shop vacancies in April worsened from 10.9% in January and was the highest rate since the British Retail Consortium (BRC) and Springboard survey began in 2011.

It said high streets have been "vastly outperforming" malls and retail parks, boosted by a 5% increase in evening drinkers, diners and clubbers.

The retail sector has been battered by a wave of failures this year, with entertainment retailer HMV and camera chain Jessops both entering administration in January.

Electricals retailer Comet slumped into administration in November.

BRC director general Helen Dickinson said: "It's a major concern that the vacancy rate has reached a record high, driven by increases in almost every part of the UK, with some regions like the South West seeing a significant leap in empty shop numbers."

But rising temperatures lifted April footfall 1% on a year earlier, a marked improvement on the 5.2% fall in March, as more shoppers ventured out compared with a rainy April 2012.

Ms Dickinson added: "The unsettled weather at the start of the month seems to have created pent-up demand, which brought many of us out to shop when more spring-like weather finally made an appearance."

High street footfall was up 3.4%, the strongest performance since December 2011, but shopping centre visitors fell 3%.

Greater London was the strongest-performing region with footfall rising 4.2% and just 7.4% of its shops vacant.

Footfall in Northern Ireland slumped 6.4% in April, while its shop vacancy rate hit 18.1%. In Wales, shoppers were down 2.1%, with a vacancy rate of 17.9%.

The South West saw footfall slide 1.3% and shop vacancies hit 14%.

The UK's surging vacancy rate follows recent downbeat sales figures from the BRC, which showed retail sales slumped at the fastest rate for a year in April as the timing of Easter and a freezing start to the month offset improvements in fashion and beauty.

Like-for-like sales fell 2.2% in April from a year earlier, with the early Easter hitting food sales in particular, it said.

11.46 | 0 komentar | Read More

RBS Gets Heated Over £230m Radiator Deal

By Mark Kleinman, City Editor

The taxpayer-backed Royal Bank of Scotland (RBS) is risking a renewed political outcry by opposing the restructuring of a major British-based manufacturer that would preserve hundreds of UK jobs.

Sky News has learnt that RBS intends to vote against a proposed takeover of Ideal Stelrad, which makes boilers and radiators, by Bregal Capital, a private equity firm, in a move which will potentially prevent a transition to new ownership.

Bregal has tabled an offer valuing Ideal Stelrad's equity and debt at roughly £230m, a sum sufficient to enable the company's senior lenders to recover their original exposure to it.

RBS, which holds approximately 15% of Ideal Stelrad's shares, is understood to be holding out for a better offer despite the fact that the group's lenders have run an auction lasting well over six months.

Bank of Ireland, another major financial institution that was bailed out by taxpayers during the banking crisis of 2008, is also said to be opposing the deal, although it speaks for only around 5% of the company's shares.

The takeover bid from Bregal is understood to require the approval of at least 75% of Ideal Stelrad's shareholders, but with time running out ahead of an initial deadline on Friday evening, support for the deal is understood to have stalled at around the 70% mark.

Although it is possible for Ideal Stelrad's board to extend the deadline, many of the manufacturer's lenders are understood to be frustrated at RBS's stance and are concerned that Bregal could withdraw its interest.

A spokeswoman for RBS declined to comment, although a source close to the bank said that several options for the future of Ideal Stelrad remained under consideration. RBS did not have the power on its own to block a deal and the bank was intent upon remaining as an investor even after a transaction, they said.

RBS has frequently encountered a political backlash over its lending activities since it was rescued by taxpayers in 2008, with complaints ranging from its choice of customers to its perceived willingness to lend to British companies seeking funds to expand.

Headquartered in Newcastle, Ideal Stelrad has manufacturing facilities in Hull and Mexborough, south Yorkshire. It employs roughly 1,800 people in the UK and at its international operations in countries including Holland, Romania and Turkey, and Bregal is understood to have indicated that it would maintain the manufacturing capacity in the UK.

Ideal Stelrad is one of hundreds of companies in which RBS ended up holding a significant equity stake after the banking crisis and subsequent recession, with these shareholdings apportioned to dedicated teams within the taxpayer-backed bank.

Insiders said that relations between Ideal Stelrad's chairman, Richard Connell, and RBS had been strained for some time.

The bank is said to have been keen for the radiator and boiler divisions of the company to be sold separately in an effort to maximise value. Insiders said on Friday, however, that profits had been in decline at the radiator unit while trade buyers had not made compelling bids for the boiler business.

Bregal is a private equity firm whose investors include the billionaire Brenninkmeijer family, founders of the high street retailer C&A. Its investments in the UK include the fast-growing education company Cognita, and Zephyr, a wind-power generator.

The prospective buyer is understood to have structured its offer to allow existing shareholders to remain owners of up to 24.9% of the company if they wish to remain exposed to it.

If Bregal does succeed in acquiring Ideal Stelrad, it would become the third private equity firm to own the manufacturer in less than a decade.

Previously called Caradon Plumbing, the company was acquired by Montagu, formerly HSBC's buyout division, for £496m in 2000. The new owners decided to break up the business, selling Twyford Bathrooms for £85m and Mira Showers for £301m, and selling the rump of the group to Warburg Pincus for £227m in 2005.

That investment went awry after Warburg Pincus refinanced Ideal Stelrad at the height of the debt boom in 2007. The company then breached its borrowing agreements and underwent a financial restructuring that culminated in a debt-for-equity swap.

The current auction is being run by BNP Paribas, another of Ideal Stelrad's shareholders. Among the other investors are understood to be HSBC, GSO, a division of the giant US investment firm Blackstone, and National Australia Bank.

BNP and Bregal, which is being advised on its bid by DC Advisory Partners, were both unavailable for comment.

11.46 | 0 komentar | Read More

Tesco Confirms China Merger Talks

Tesco has confirmed it is in exclusive talks over combining its Chinese operations with a major supermarket operator in the country.

While it is unclear at this stage whether a deal would mean the Tesco brand disappearing in China, Britain's biggest retailer updated investors on the talks after they were made public by Sky's City Editor, Mark Kleinman.

Its statement said: "Noting recent media speculation, Tesco Plc and China Resources Enterprise Limited (CRE) today announce that they have entered into a memorandum of understanding and are in exclusive talks to combine their Chinese retail operations to form the leading multi-format retailer in China."

Tesco said the proposed joint venture would create a business with sales of some £10bn, in which CRE and Tesco's effective interests are expected to be split 80% and 20% respectively.

The proposed deal - which would represent a significant watering down of Tesco's China operation - would involve CRE combining its CR Vanguard business, which operates 2,986 stores across China and Hong Kong, with Tesco China's 131 stores and shopping centre business.

"The intended partnership follows a series of highly successful joint ventures between CRE and other multinational corporations and is consistent with Tesco's stated strategy of focusing on profitable routes to growth in fast-growing but less mature markets," Tesco said in the statement.

"The transaction is subject to further due diligence and agreement of final terms. There is no certainty that a transaction will occur," it added.

According to Chinese media the company has failed to turn a profit in nine years in China.

Tesco recently closed its operations in Japan and in the US and it moved to improve its core UK supermarket business.

11.46 | 0 komentar | Read More

Tesco In Vanguard Of China Merger

By Mark Kleinman, City Editor

Tesco is on the verge of an agreement to merge its operations in China with the country's biggest retailer as it takes another step towards reshaping its international business.

Sky News has learnt that Tesco is expected to announce on Friday that it has signed a memorandum of understanding to combine its store estate in the world's most populous country with that of Vanguard, a subsidiary of China Resources Enterprise (CRE).

The deal, if completed, is also expected to involve Tesco paying several hundred million pounds to CRE as the British company's chief executive, Philip Clarke, grapples with the challenges of maintaining a viable business in China.

People close to the situation said Tesco was likely to emerge from the negotiations with CRE with a 20% stake in the enlarged business but cautioned that finalising an agreement was likely to take several months.

The new joint venture would have more than 3000 shops and would be easily the largest retailer in seven of the eight mainland Chinese provinces with the highest GDP rankings in the country.

Tesco's decision to abandon its go-it-alone approach in China may suggest that it is continuing its  international retrenchment after a decade of expansion which saw it become the world's second-biggest retailer behind Wal-Mart.

In 2011, Tesco announced plans for an aggressive expansion of its business in China, which currently has about 130 stores.

Analysts said the CRE joint venture would enable Tesco to reduce the amount of capital it committed to its business in China while accessing the greater local expertise of its new partner.

"It's a sensible-sounding deal because it will allow them to focus more on the core UK market," said one.

The City has been braced for a deal in China since a Financial Times report in May which said that Tesco was exploring a joint venture.

Mr Clarke is understood to have travelled to Asia in recent weeks to thrash out the agreement with CRE and Vanguard executives.

The Chinese joint venture will enable Mr Clarke and his executive colleagues to intensify their efforts to re-energise the British business which fuelled Tesco's rapid growth under his predecessor, Sir Terry Leahy.

Since taking over last year, Mr Clarke has had to contend with the fallout from the horsemeat scandal but has begun to win over shareholders with new ideas to reinvigorate its most important market.

Earlier on Thursday, Tesco unveiled a new concept store in Watford containing areas designed to appeal to diners and young mothers, part of Mr Clarke's campaign to re-engage consumers with the Tesco brand.

The chain's boss still has other international challenges to overcome, even if the CRE deal does get signed.

People close to the situation said Tesco was likely to decide in the coming weeks what to do about the future of its loss-making Fresh & Easy chain in the US, with a closure as well as a sale still on the table as potential options.

11.46 | 0 komentar | Read More

Revealed: The UK's Most Wanted Tax Fugitives

By Poppy Trowbridge, Business and Economics Correspondent

A rogues' gallery of the UK's most wanted tax fugitives has been released in a bid to collect hundreds of millions of pounds in unpaid duty.

One year on from releasing the details of the UK's 20 most sought after tax criminals, HM Revenue & Customs (HMRC) has now added the names and photographs of 10 more fugitives to that original target list.

Those on the list are being pursued for a range of crimes including VAT fraud, tax evasion and money laundering.

Together, their crimes have cost the taxpayer close to £720m.

Among the new names on the list are Michael "Arthur" Fearon, who is wanted in connection with evasion of excise duty on nearly £8.4m cigarettes, and is believed to be in the Republic of Ireland.

Chancellor George Osborne says tax evasion 'will not be tolerated'

Anish Anand, who is believed to be in the UK, is wanted in relation to £6m VAT and film tax credit fraud, while Michael George Voudouri is wanted in connection with £10m VAT fraud. He is believed to be in Northern Cyrpus.

And Sumir Soni (aka John Soni, John Miller, Samir Soni, Bhader Singh), who is believed to be in Kenya, is wanted in connection with evading duty of £3.6m from the illegal sale and distribution of alcohol, and the illegal importation of nine million cigarettes.

Anthony Judge, who was wanted for his role in over £350,000 of tax fraud and had been on the run for 10 years, was detained at Heathrow Airport last month as he attempted to enter the UK on a forged passport.

He is the second of HMRC's most wanted to be captured since the rogues' gallery was first published.

In May, John Nugent was apprehended in the US after the authorities there saw the list.

The gallery has been viewed over 1.5 million times, with new intelligence received from the public on the current whereabouts of 17 of the 20 named on the original list.

HMRC has also launched an interactive map of the world to illustrate where the tax fugitives are believed to be.

The crimes of those on the list have cost the taxpayer £720m

Chancellor George Osborne said: "Our message is clear, tax fraud and evasion is illegal and will not be tolerated.

"The Government has stepped up HMRC's enforcement activities to enable them to pursue tax cheats relentlessly around the world."

"This new list will help put more tax fraudsters in the spotlight and bring them to justice."

The Chancellor has faced public outrage in recent months over the number of large, multinational corporations operating in Britain that pay little or no corporation tax on earnings which can top billions of pounds each year.

Yet some tax experts say HMRC is missing the real problem in tackling tax avoidance.

Richard Murphy, of Tax Research UK, told Sky News: "The problem is very large companies who aren't paying very large amounts of tax that they might owe because of skilful tax avoidance by accountants and lawyers.

"The second problem is actually ordinary people avoiding and evading income tax by putting cash in their pockets … paying their builders, their plumbers, their cleaners, their tutors and everybody else without tax being paid and that is a massive problem in our economy.

"But the big problem is not this form of crime of which this list is being published about."

Taxpayers Alliance chief executive Matthew Sinclair said part of the difficulty was with the UK's "hugely complex and fundamentally dysfunctional tax system".

He said reforming taxes to make them simpler would reduce the scope for evasion and free up HMRC resources to focus on fraud.

11.46 | 0 komentar | Read More