Eurozone And IMF Reach Greece Debt Deal

Eurozone finance ministers and the International Monetary Fund have reached an agreement on Greek debt, which paves the way for the release of much-needed loans.

After nearly 10 hours of talks, it was agreed that the country's public debt should fall to 124% of GDP in 2020 through a package of extra debt cutting measures.

The deal emerged in Brussels after a meeting of finance ministers from the 17 eurozone countries, the European Central Bank and the IMF on how to make Greek debt sustainable - their third meeting on the issue in as many weeks.

"It's going very slow, but we have financing and a Debt Sustainability Analysis. We've filled the financing gap until the end of programme in 2014," one official said, adding that talks on the details of the debt cutting measures with the IMF were still ongoing.

The deal is a breakthrough towards releasing the next tranche of loans to Greece after its 31.2bn (£25bn) aid package was suspended in the summer over concerns it was not meeting the conditions of its bailout programme.

The Greek finance minister Yannis Stournaras said earlier that Athens had fulfilled its part of the deal by enacting tough austerity measures and economic reforms, and it was now up to the lenders to do their part.

The IMF has said Greece's debt as a proportion of GDP must be cut to around 120% by 2020, from a forecast 190% next year, for it to be manageable in the long term.

It was not immediately clear how the debt would be reduced from its currently forecast level of 144% in 2020 to the target, but it is expected to involve a series of measures including the lowering of interest rate on loans to Greece.

Last week Greek Prime Minister Antonis Samaras criticised the failure to deliver bailout funds to Athens after 12 hours of emergency talks among the eurozone finance ministers and representatives of the troika of lenders had ended without agreement.

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Apprenticeships: Call For 'High Quality' Schemes

Urgent reform of the Government's apprenticeship programme is needed for it to succeed, according to a new report.

Its author, entrepreneur and former Dragons' Den star Doug Richard, said the quality of apprenticeships needed improving to deliver the skills and qualifications of "tangible value" to workers and employers.

He recommended the introduction of a new work-based programme to support entry into employment, to replace Level 2 apprenticeships.

Mr Richard also suggested apprenticeships should be redefined, with one qualification for each occupation, while everyone on a programme should reach a good level in English and Maths.

The founder of School for Startups, said: "With the myriad of learning experiences which are currently labelled as apprenticeships, we risk losing sight of the core features of what makes apprenticeships work.

"My conclusion is that we need to look again at what it means to be an apprentice and what it means to offer an apprenticeship as an employer.

"Apprenticeships need to be high quality training with serious kudos and tangible value both to the apprentice and the employer.

"I want to hear about an 18-year-old who looked at their options and turned down a place at Oxbridge to take up an apprenticeship if that is the right path for them and I want to hear that their parents were thrilled."

Education Secretary Michael Gove said: "We must raise the bar on apprenticeships if we are to have a programme fit for the future.

"It is vital that the qualifications and assessment involved in every apprenticeship are rigorous, trusted, and give employers confidence in the ability of their apprentices."

Steve Radley, director of policy at EEF, the manufacturers' organisation, said: "The challenges we face in the coming decades are enormous and only a revolution in ambitions and approach to apprenticeships will ensure that we meet them."

The Richard Review - an independent review into the future of apprenticeships - was launched last June.

Ministers said they will respond to the recommendations in the New Year.

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Too Many Transport Schemes 'Stuck In Slow Lane'

Too many transport projects crucial to business growth are being sidelined by the Government, the British Chambers of Commerce says.

Of 13 key projects identified as vital before the 2010 general election, just three are going ahead, with two having some funding committed and eight delayed, cancelled or under consideration.

BCC director of policy Dr Adam Marshall told Sky News that bold action was needed from the Government to improve transport infrastructure.

"We need to see projects delivered with some pace and some urgency," he said.

"We know there are limited resources available but business can deliver growth and jobs if it has the transport infrastructure it needs."

Crossrail construction at Moorgate station in London

The three BCC-earmarked projects going ahead are:

:: Birmingham Motorway Scheme - Variable speed limits and cars using hard shoulder on M5, M6, M40 and M42, with work due to be completed in spring 2014

:: Forth Replacement Crossing: A replacement for the deteriorating existing road bridge was given the go ahead by the Scottish Government and Transport for Scotland in January 2011 and will be complete by 2016

:: Crossrail, London: The cross-London rail link is well under way and expected to be fully operational in 2019, improving capacity across the capital.

The BCC said it had awarded an "amber light" to two projects where some funding had been committed and a planning process was under way, but there was no date for final delivery.

One of these was the so-called Northern Hub rail improvement scheme to deliver £4bn of benefits to the economy of northern England.

The BCC said the Government committed to the scheme in summer 2012, that planning was still in the very early stages and delivery of all projects was uncertain, "but there have been confident steps forward in recent months".

The other "amber" scheme was the A453 widening from the M1 junction 24 to the A52 at Nottingham in the East Midlands.

The M4 relief road scheme in Wales has been given a red light

The BCC said construction was due to start in 2013 following a Government commitment to the project, but "more concrete steps need to be taken to push the project to its conclusion".

The rest of the 13 projects received the BCC "red" signal, including the scrapped third runway plan at Heathrow airport in west London and the delayed A14 road improvement scheme in East Anglia.

Others given a red light included the Cardiff-Newport M4 relief road scheme in Wales, the M1 Westlink project in Northern Ireland, the A19 improvement work around the Tyne Tunnel in north east England and the A303/A358 road improvement scheme to improve links to southwest England.

The BCC said: "While the Government has taken important steps to boost infrastructure funding and delivery since the first Budget, the updated assessment shows that too many transport projects, which are crucial to business growth, are stuck in the slow lane."

But Transport Minister Norman Baker insisted the issue was a "top priority" for the Government.

He said: "That is why, despite the economic challenges we face, we have committed to building HS2, a hugely ambitious infrastructure project which will support and sustain long-term growth across the whole country.

"In addition, our massive programme of investment - the biggest since the 19th Century - in the current railway system includes substantial investment to increase capacity on the East Coast Main Line over the next two years as well as £240m for the industry to spend on the route between 2014 and 2019.

"This is on top of the £1.8bn we are spending on local major transport projects and the £3bn we are providing to start work on 20 major road schemes and to complete work on another eight between 2010 and 2015."

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'UK's Austerity Era Could Last Eight Years'

A key financial target of the Chancellor's Autumn Statement next week may have to be abandoned, according to a leading think tank.

The Institute for Fiscal Studies (IFS) has said that the target that debt should be falling in the 2015-16 tax year may be too difficult to achieve.

The IFS added that George Osborne may even be forced to announce yet more spending cuts or tax increases for the next Parliament in order to meet his other fiscal targets.

Mr Osborne will reveal his Autumn Statement on December 5. It is expected to provide an update on the Government's plans for the economy based on the latest forecasts from the Office for Budget Responsibility (OBR).

The latest OBR forecasts will be published alongside the Chancellor's Autumn Statement.

According to independent forecasters, the OBR will take into account a weaker outlook for the UK economy and concern over tax revenues during the last seven months.

The issue of corporation tax has become a hot political issue in the last two weeks after it emerged major US multinationals such as Google, Amazon and Starbucks greatly restrict their tax liability through complex offshore structures.

The angry backlash was prompted by the revelation that Starbucks has only paid £8.6m UK corporation tax in the past 13 years, on sales of £3.1bn.

The IFS said that if the trend for borrowing so far this year persists for the remainder of the year, public debt borrowing in 2012-13 would total £133bn.

The era of austerity could run for eight more years, according to the IFS

Excluding the one-off impact of the transfer of assets from the Royal Mail Pension Plan, the borrowing figure would be £13bn higher than forecast by the OBR.

This would mean that underlying borrowing rose between 2011-12 and 2012-13 rather than fell as the Chancellor had intended.

This £13bn overshoot in borrowing arises from an estimated shortfall in receipts of £17bn, offset partially by a £4bn underspend by Whitehall departments.

IFS deputy director Carl Emmerson, said: "Since the budget, the outlook for the UK economy has deteriorated and Government receipts have disappointed by even more than this year's weak growth would normally suggest.

"If much of the additional weakness this year feeds into a permanently higher outlook for borrowing, the planned era of austerity could run for eight years - from 2010/11 to 2017/18."

TUC general secretary Brendan Barber reacted angrily to the IFS prediction. "This analysis shows that the Chancellor's economic strategy is failing on all counts," he said.

"The UK should be on the road to recovery by now. Instead we could be set for a prolonged period of debilitating austerity well beyond the next election.

"The Chancellor should use his Autumn Statement next week to change course. Sadly he looks set to drive the economy even faster in the wrong direction."

IFS researchers will present their analysis at a briefing the following day, Thursday 6 December.

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'Black Friday' Discount Day Reaches UK

Some of the UK's biggest retailers are cashing in on a US tradition which sees millions of frenzied shoppers make the most of discounted prices.

Amazon, Asda and Apple are among the companies that have launched so-called Black Friday sales in Britain - despite many consumers being unaware of the custom.

In the US, thousands of stores discount their prices the day after Thanksgiving, and many open for longer hours.

Last year a record number of people visited stores over the Black Friday weekend, spending a total of $52bn (£32.6bn) - an average of around $400 (£250) each, according to the National Retail Federation.

And this year, some eager shoppers have been caught on camera phones battling to get to the best bargains first, after queuing for hours. 

Many retailers opened their stores at midnight, and this year the trend to open at 8pm on Thursday started to spread.

Some US stores were frantic

While the shift was denounced by some store employees and traditionalists as pulling people away from families on Thanksgiving, many shoppers welcomed the chance to shop before midnight.

"I think it's better earlier. People are crazier later at midnight," hotel worker Renee Ruhl, 52, said as she shopped at a Target store in Orlando, Florida.

Online retailer Amazon was one of the first companies to bring the trend to the UK.

It launched a week-long Black Friday sale on Monday, which it claims "offers millions of pounds of savings on hundreds of Christmas gifts".

Tech giant Apple and Asda, owned by Walmart, are also hoping to make the most of the Christmas shopping rush by offering one-day discounts of their own.

Hotel Chocolat emailed customers to say that as it offered US customers 20% off it would do the same for UK buyers.

"There are more retailers launching sales this year than ever before - and many British consumers are becoming aware of the tradition for the first time," Retail Week's Gemma Goldfingle told Sky News.

"In the US it is an absolute phenomenon, with people queuing up all night to snap up the best deals."

Amazon launched its sale on Monday

In Orlando at least one family camped outside a Best Buy shop for a full week, sleeping in two tents.

"It has not reached that level here and whether it ever will is another matter," Ms Goldfingle said.

She said that Americans have Thanksgiving to kick-start the event – whereas in the UK it is just a normal day. Boxing Day, when UK sales traditionally begin, is a normal work day for Americans.

"A lot of British retailers would prefer not to have it," Ms Goldfingle said.

"They want to be selling items at full price ahead of Christmas, especially given the tough economic conditions."

While a limited number of UK chains have labelled their sales as Black Friday, many others have needed to show weekend price drops to lure customers.

Furniture chain dfs has taken to advertising in newspapers about its discounts while Topshop offered online weekend deals.

Black Friday, which is thought to refer to the first day of the year that retailers go "into the black", comes just ahead of Cyber Monday - which the marketing industry claims is the busiest day in the online shopping calendar.

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Tax Backlash Prospect For Independent Shops

By Poppy Trowbridge, Business & Economics correspondent

Independent businesses could benefit from public uproar over low rates of corporation tax paid by global giants Starbucks, Amazon and Google, according to retail experts.

The backlash has been prompted by the revelation that Starbucks has paid just £8.6m UK corporation tax in the past 13 years, on sales of £3.1bn, when most businesses will pay a corporation tax rate of 24% this year.

In 2011, Google paid £6m tax against sales of £395m, while Amazon paid no tax at all in the UK - despite sales here reaching £3.3bn.

Matthew Stych, research director at analysts Planet Retail, believes British retailers can make the most of the furore by highlighting their own contributions and good practices.

"It's a golden opportunity that comes along once in a decade or so, to really capitalise on the negative publicity that some global retailers are receiving at the moment," he says.

"I think it's a huge opportunity that independent retailers in the community must seize now".

Google and Amazon are also accused of paying low taxes on big profits

Independent booksellers in Hertfordshire are doing just that. With support from the Booksellers Association they have launched an advertisement campaign to publicise the fact they pay their taxes.

"People need to think about where they are spending their money and we are hoping that this campaign will bring that to their attention," said Sheryl Shurville, co-owner of Chorleywood Bookshop.

But other analysts are not convinced such consumer campaigns will have any long-term benefit.

"We're unlikely to see any massive dip in the sales of these companies under scrutiny," says Douglas McNeill, chief analyst at Charles Stanley.

"Whilst ethical issues can temporarily make people pause for thought, consumers make their choices on the basis of eternal basics of price, quality and convenience."

Mr Stych says large brands may yet find a way to turn around the negative publicity.

"As far as Amazon and Starbucks are concerned, I think there's an opportunity to strike a more conciliatory note," according to Mr Stych. 

"This is for them also an ideal opportunity to regain or re-forge that bond with local consumers".

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'Black Friday' Discount Day Reaches UK

Some of the UK's biggest retailers are cashing in on a US tradition which sees millions of frenzied shoppers make the most of discounted prices.

Amazon, Asda and Apple are among the companies that have launched so-called Black Friday sales in Britain - despite many consumers being unaware of the custom.

In the US, thousands of stores discount their prices the day after Thanksgiving, and many open for longer hours.

Last year a record number of people visited stores over the Black Friday weekend, spending a total of $52bn (£32.6bn) - an average of around $400 (£250) each, according to the National Retail Federation.

And this year, some eager shoppers have been caught on camera phones battling to get to the best bargains first, after queuing for hours. 

Many retailers opened their stores at midnight, and this year the trend to open at 8pm on Thursday started to spread.

Some US stores were frantic

While the shift was denounced by some store employees and traditionalists as pulling people away from families on Thanksgiving, many shoppers welcomed the chance to shop before midnight.

"I think it's better earlier. People are crazier later at midnight," hotel worker Renee Ruhl, 52, said as she shopped at a Target store in Orlando, Florida.

Online retailer Amazon was one of the first companies to bring the trend to the UK.

It launched a week-long Black Friday sale on Monday, which it claims "offers millions of pounds of savings on hundreds of Christmas gifts".

Tech giant Apple and Asda, owned by Walmart, are also hoping to make the most of the Christmas shopping rush by offering one-day discounts of their own.

Hotel Chocolat emailed customers to say that as it offered US customers 20% off it would do the same for UK buyers.

"There are more retailers launching sales this year than ever before - and many British consumers are becoming aware of the tradition for the first time," Retail Week's Gemma Goldfingle told Sky News.

"In the US it is an absolute phenomenon, with people queuing up all night to snap up the best deals."

Amazon launched its sale on Monday

In Orlando at least one family camped outside a Best Buy shop for a full week, sleeping in two tents.

"It has not reached that level here and whether it ever will is another matter," Ms Goldfingle said.

She said that Americans have Thanksgiving to kick-start the event – whereas in the UK it is just a normal day. Boxing Day, when UK sales traditionally begin, is a normal work day for Americans.

"A lot of British retailers would prefer not to have it," Ms Goldfingle said.

"They want to be selling items at full price ahead of Christmas, especially given the tough economic conditions."

While a limited number of UK chains have labelled their sales as Black Friday, many others have needed to show weekend price drops to lure customers.

Furniture chain dfs has taken to advertising in newspapers about its discounts while Topshop offered online weekend deals.

Black Friday, which is thought to refer to the first day of the year that retailers go "into the black", comes just ahead of Cyber Monday - which the marketing industry claims is the busiest day in the online shopping calendar.

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Tax Backlash Prospect For Independent Shops

By Poppy Trowbridge, Business & Economics correspondent

Independent businesses could benefit from public uproar over low rates of corporation tax paid by global giants Starbucks, Amazon and Google, according to retail experts.

The backlash has been prompted by the revelation that Starbucks has paid just £8.6m UK corporation tax in the past 13 years, on sales of £3.1bn, when most businesses will pay a corporation tax rate of 24% this year.

In 2011, Google paid £6m tax against sales of £395m, while Amazon paid no tax at all in the UK - despite sales here reaching £3.3bn.

Matthew Stych, research director at analysts Planet Retail, believes British retailers can make the most of the furore by highlighting their own contributions and good practices.

"It's a golden opportunity that comes along once in a decade or so, to really capitalise on the negative publicity that some global retailers are receiving at the moment," he says.

"I think it's a huge opportunity that independent retailers in the community must seize now".

Google and Amazon are also accused of paying low taxes on big profits

Independent booksellers in Hertfordshire are doing just that. With support from the Booksellers Association they have launched an advertisement campaign to publicise the fact they pay their taxes.

"People need to think about where they are spending their money and we are hoping that this campaign will bring that to their attention," said Sheryl Shurville, co-owner of Chorleywood Bookshop.

But other analysts are not convinced such consumer campaigns will have any long-term benefit.

"We're unlikely to see any massive dip in the sales of these companies under scrutiny," says Douglas McNeill, chief analyst at Charles Stanley.

"Whilst ethical issues can temporarily make people pause for thought, consumers make their choices on the basis of eternal basics of price, quality and convenience."

Mr Stych says large brands may yet find a way to turn around the negative publicity.

"As far as Amazon and Starbucks are concerned, I think there's an opportunity to strike a more conciliatory note," according to Mr Stych. 

"This is for them also an ideal opportunity to regain or re-forge that bond with local consumers".

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EU Budget: 'Long Way To Go' Before Deal

David Cameron has demanded billions in pay and pension cuts from the EU's civil service in support of austerity-hit workers across Europe.

Ahead of a crucial budget summit last night, he presented EU heads with a paper setting out how Brussels could slash at least six billion euro (£4.8bn) off its staff costs at a stroke by upping retirement ages, lowering pensions and trimming lavish salaries.

President of the European Council Herman Van Rompuy and President of the European Commission Jose Manuel Barroso were caught by surprise during the private talks with the Prime Minister.

Mr Cameron's position was to impose a real-terms freeze in spending in common with national public sector cuts, including a solidarity gesture by targeting the 60bn euro-a-year (£48bn) administrative budget which pays the 40,000-plus civil service behind the Commission, Council and European Parliament.

Following the meeting Downing Street said there was "a long way to go" before EU leaders could agree a long-term budget.

A Downing Street spokesman said: "The Prime Minister set out our position that while the latest proposals were a step in the right direction, they did not go far enough and that we think more can be done to rein in spending."

Mr Cameron said he would be fighting "very hard" to secure a good deal for British taxpayers and to keep the rebate negotiated by Margaret Thatcher in the 1980s.

Cameron meets Barroso and van Rompuy prior to the summit

"These are very important negotiations. Clearly at a time when we are making difficult decisions at home over public spending it would be quite wrong - it is quite wrong - for there to be proposals for this increased extra spending in the EU," he said.

He has welcomed proposals from Mr Van Rompuy which would deliver a small real-terms cut in EU spending commitments, but has made clear he is unhappy with other details of the package, which demands a reduction in the £2.9bn UK rebate.

The start of the meeting was delayed until mid-evening as the rest of the EU's leaders held their own "confessionals" throughout the day, setting out their positions on how much cash the EU should be given to pay for policies between 2014 and 2020.

A pre-summit compromise is already on offer - a seven-year budget "envelope" of 973bn euro (£785bn) for 2014/2020, a cut of nearly 5bn euro (£3.8bn) compared with the 2007/2013 ceiling.

The move was seen in Downing Street as being in the right direction - although the "cut" is in a spending ceiling which officials say has not been reached.

It is also above the 886bn euro (£712bn) originally pitched by the Treasury as in line with the real-terms freeze Mr Cameron wants.

The EU headquarters in Belgium

But in the complex world of EU budget economics, with financial "commitments" different from "payments", a range of calculation options, rebates for some countries, and contributor and beneficiary member states, Mr Cameron and his colleagues have plenty of scope for claiming summit success.

The Prime Minister's allies for budget belt-tightening, including Sweden and the Netherlands, have demanded hefty financial cuts.

Germany, France, Finland and Austria want to freeze the maximum Brussels can draw from member states every year - leaving plenty of scope to argue over the actual spending figures within the ceiling.

And 15 countries, led by Poland, are backing budget increases, not least to preserve the scale of cash aid they receive as "net beneficiaries" from the EU kitty.

Britain is arguing for a shake-up in EU spending priorities, cuts in agriculture spending and subsidies - fiercely defended by France - and cuts in EU staff levels and pay and perks, in line with national civil servants.

But the European Commission still insists that a spending increase is necessary, not least to pay for polices already agreed by member states.

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Discount Day: 'Black Friday' Reaches The UK

Some of the UK's biggest retailers will cash in on a US tradition this Friday, as they slash their prices ahead of Christmas.

Amazon, Asda and Apple are among the companies that have launched so-called Black Friday sales in Britain - despite many consumers being unaware of the custom.

In the US, thousands of stores discount their prices the day after Thanksgiving, and many open for longer hours.

Last year a record number of shoppers visited stores over the Black Friday weekend, spending a total of $52bn (£32.6bn) - an average of $398 (£249) each, according to the National Retail Federation.

Amazon launched its sale on Monday

US online retailer Amazon was one of the first companies to bring the trend to the UK.

It launched a week-long Black Friday sale on Monday, which it claims "offers millions of pounds of savings on hundreds of Christmas gifts".

Tech giant Apple and Asda, owned by Wal Mart, are also hoping to make the most of the Christmas shopping rush by offering one-day discounts of their own. 

"There are more retailers launching sales this year than ever before - and many British consumers are becoming aware of tradition for the first time," Retail Week's Gemma Goldfingle told Sky News.

"In the US it an absolute phenomenon, with people queuing up all night to snap up the best deals.

"It has not reached that level here and whether it ever will is another matter."

She said that American's have Thanksgiving to kick-start the event – whereas in the UK it is just a normal day.

"A lot of British retailers would prefer not to have it," she said.

"They want to be selling items at full price ahead of Christmas, especially given the tough economic conditions."

Black Friday, which is thought to refer to the first day of the year that retailers go "into the black", comes just ahead of Cyber Monday - which the marketing industry claims is the busiest day in the online shopping calendar.

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