Morrisons Suffers Staff Payroll Data Theft

Data from supermarket chain Morrisons' staff payroll system, including bank account details, has been stolen and published on the internet, the company has confirmed.

In an email sent to staff and seen by Sky News, the company called it an "illegal theft" of data.

The information has since been taken off the website that published the details.

A data disk was also sent to a regional newspaper with the stolen data.

The theft included names, addresses and bank account details of an unspecified number of staff. It employs around 100,000 people.

The email warned that "this affects colleagues from all levels of the organisation".

Morrisons, which became aware of the theft on Thursday, said: "Initial investigations suggest that this theft was not the result of an external penetration of our systems.

"We can confirm there has been no loss of customer data and no colleague will be left financially disadvantaged."

The email warning was sent to senior staff who were asked to inform workers

So-called insider threats have become a serious concern for companies in recent years, due to the volume of data stored and its accessibility.

Sky News has confirmed that the data watchdog, the Information Commissioner's Office (ICO), has been alerted to the theft and may launch a probe.

An ICO spokesman said: 'We have been made aware of reports that Morrisons have suffered a potential data breach, and we will be making enquiries."

Morrisons, which is Britain's fourth biggest supermarket group, said it had called in police and cyber crime experts.

The criminal inquiry into the data theft from Bradford-based Morrisons is being led by West Yorkshire Police.

Detective Chief Inspector Nick Wallen said: "We are aware of the situation and are supporting Morrisons and their investigation into these matters."

It has also started communications with banks handling staff accounts and a credit rating agency, and has set up a helpline for employees.

The group has come under pressure recently over its performance in the ultra-competitive sector.

On Thursday, it launched a counter-attack in the supermarket price war after losing more than just ground to its rivals in its last financial year.

The chain, which has struggled amid strong challenges from discounters and because of its slow response to the online grocery and convenience markets, confirmed a pre-tax loss of £176m for 2013/14 after a profit of £879m in the previous 12 months.

Like-for-like sales fell 2.8% in the period, and its share price suffered a 10% drop on Thursday.

12.07 | 0 komentar | Read More

Investors Line Up To Back £4bn AA Listing

By Mark Kleinman, City Editor

A powerful group of City investors is lining up to back a £4bn-plus deal that would entail a change of ownership for the AA, Britain's biggest roadside recovery group.

Sky News can reveal that Cenkos Securities, a London-based investment bank, has tabled a proposal to the AA's parent company for it to list on the London Stock Exchange.

The offer, which has been made in recent days, would resurrect a technique known as an accelerated initial public offering (IPO), which gained traction more than a decade ago but which has only been used infrequently in recent years.

Sources close to the situation said that Cenkos had approached major institutional investors including Aviva, BlackRock, F&C Investments, JP Morgan Asset Management and Threadneedle about a transaction that would involve them acquiring stakes in the AA through a new stock market-listed company.

It is not clear which of the firms has formally committed funds to the bid yet.

The AA is part of Acromas Holdings, a private equity-backed group which also owns Saga, the financial services and travel specialist for the over-50s which is pursuing its own £3bn flotation.

The Cenkos-led proposal for the AA was not solicited by Acromas and it is unclear whether it is likely to be formally considered by the company's current owner given its focus on Saga's listing.

Acromas has been expected to retain ownership of the AA for some time, given the scale of its borrowings relative to its earnings.

The AA has net debt of about £3.2bn, putting its borrowings on a multiple of 7.6 times the level of its earnings before interest, tax, depreciation and amortisation.

In the third quarter of last year, the AA reported sales of £244m, with earnings up 8.2% to £104m.

The AA, which has styled itself as "the fourth emergency service", has 4m personal members and 9m business customers, giving it a 40% share of the roadside insurance market.

Some City observers believe that a separate listing of the breakdown recovery group may be difficult because of its debts and a financial mechanism known as a whole business securitisation that was undertaken last year.

The accelerated IPO was first used in the City more than a decade ago by Collins Stewart, the investment bank which a group of Cenkos executives left to set up.

The technique involves a more rapid listing process during which the sponsoring investment bank agrees to buy the shares before selling them on to other investors.

Like Saga, the AA has turned to new leadership, appointing Chris Jansen, a former British Gas executive, as its new boss.

The AA has taken advantage of strong financing markets by launching a £350m bond, the proceeds of which are being used to repay a chunk of Acromas's vast debt-pile.

Acromas is owned by Charterhouse, CVC Capital and Permira, three of the UK's biggest private equity groups, which acquired the AA from Centrica, the owner of British Gas.

The AA's principal rival, the RAC, is also expected to be the subject of a change of ownership in the next couple of years, with Carlyle, its private equity owner, likely to seek a stock market listing for the company.

Sky News disclosed on Thursday that Acromas is close to hiring Goldman Sachs and at least three other banks to work on a flotation that will put Saga on course for inclusion in the FTSE-100 index.

As many as half of the shares on offer, equating to hundreds of millions of pounds, could be sold to ordinary retail investors, meaning Saga is likely to vie with Royal Mail's privatisation for the status of the City's biggest retail offering for years.

A sale of part of the Government's remaining stake in Lloyds Banking Group, expected this year, will include a retail offering that will dwarf those of Saga and Royal Mail.

Cenkos and Acromas declined to comment.

12.07 | 0 komentar | Read More

Morrisons Plots Price Cuts After Annual Loss

Morrisons has launched a counter-attack in the supermarket price war after losing more than just ground to its rivals in its last financial year.

The chain, which has struggled amid strong challenges from discounters and because of its slow response to the online grocery and convenience markets, confirmed a pre-tax loss of £176m for 2013/14 after profits of £879m in the previous 12 months.

Like-for-like sales fell 2.8% in the period.

The £176m annual loss was largely explained by a £903m writedown relating to the value of its stores and its purchase of online children's wear retailer Kiddicare, which it now plans to sell following a poor financial performance.

Its share price fell 10% on opening on the FTSE 100 in response to the figures, with its plans to turn its fortunes around seemingly failing to impress.

Morrisons wants to focus more on value in a challenge to discounters

Sainsbury's and Tesco also saw steep falls in their values because of the implications of the price war, with Tesco having fired a new salvo the previous day with a fuel offer.

Morrisons said a £1bn programme of property disposals over three years would fund a major investment in its customer offer.

There would be £300m spent on its proposition during the current financial year and it would also introduce a loyalty card.

Chief executive Dalton Philips said Morrisons was investing the money to improve value and "defend and strengthen our competitive position," suggesting the grocery sector was facing its biggest structural shift since the 1950s.

The Yorkshire-based chain has been losing sales to hard discounters Aldi and Lidl faster than the rest of its so-called "big four" rivals.

In its annual results, it said of the discount market challenge: "It is currently worth £9.5bn (up 20%) over the prior year.

"This reflects a fundamental shift in the market and one that is likely to be structural rather than cyclical.

"It is a challenge we will address in 2014/15."

Morrisons also said it would do more to engage in the convenience sector as shoppers adopt more of a "little and often" approach at the expense of big basket weekly shops.

Its online grocery offer, in partnership with Ocado, only began at the start of the year.

However, Mr Philips said it was already producing market-leading performance for on-time deliveries and a low rate of substitutions.

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12.06 | 0 komentar | Read More

Which?: Energy Bills To Rise £640 By 2020

By Poppy Trowbridge, Consumer Affairs Correspondent

Annual household energy bills could rise by more than £600 within seven years so power companies can keep the lights on, consumer champion Which? has warned.

Sky News has learned the watchdog has written to the Treasury ahead of next week's budget to warn of rising costs.

In a new forecast, Which? has predicted energy companies will need to spend £118bn on new infrastructure between now and 2020.

This would include building new power stations, replacing grids and building wind farms as part of a drive to sustain Britain's power supply and cut down on carbon emissions.

Which? believes this cost will inevitably be passed on to consumers, and that households and businesses will foot the bill.

This would mean that the average bill would exceed £2,000 a year even if wholesale costs of gas and electricity remain stable - an annual rise of £640 per household.

Richard Lloyd, executive director of Which?, said: "I don't think consumers know that this is heading their way and that decision has already been made by the Government.

"This is a massive chunk potentially on everyone's bills. This means one thing: that household bills are set to rise, and to rise for many people very steeply for the foreseeable future."

Which? is campaigning for a full market investigation to find out if consumers are paying a fair price for energy.

Sky News also learned that at least one of the 'big six' energy firms is not guaranteeing to make the necessary investment should it not prove profitable for the company.

Energy companies rely on investors - who require a return on their investment - to finance certain projects.

Angela Knight, of Energy UK, the body representing the industry, said: "A lot of this is all about the policy that the Government and previous Government signed up to.

"Right now there is significant concern about the price of a bill and that is before much of this investment comes through.

"At the same time, a lot of our stuff is old and you do have to refresh and replenish."

One move Chancellor George Osborne may deploy to tackle the costs being passed through to consumer energy bills could be freezing the Carbon Floor Price in next week's budget.

The tax policy means polluting industries must pay a minimum amount of money for the right to pollute.

If Mr Osborne were freeze or abolish the Carbon Floor Price, the knock-on effect would prevent around £8 being added to bills each year, according to one energy company source.

In December 2013, HM Treasury released estimates of planned national infrastructure investments relating to 2013-2020 and beyond.

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Ex-Mirror Boss Bailey Lands £400,000 Payout

By Mark Kleinman, City Editor

The former chief executive of Trinity Mirror is to land a windfall of about £400,000 from an incentive scheme triggered by a recent surge in the newspaper publisher's share price.

Sky News can reveal that Sly Bailey, who stepped down as the boss of the Daily Mirror owner in June 2012, will receive the payout under its 2011 long-term incentive plan (LTIP).

The payment to Ms Bailey will be disclosed in Trinity Mirror's annual report for 2013, which will be published alongside its full-year results on Thursday.

It may cause consternation among the group's shareholders, who saw Trinity Mirror's share price slump under her leadership amid broader concerns about the future of the newspaper sector.

Under the 2011 LTIP scheme, Ms Bailey was entitled to a maximum award of just over 379,000 Trinity Mirror shares, which would have been worth almost £820,000 at Wednesday afternoon's share price of approximately 216p.

However, Trinity Mirror's remuneration committee is said to have decided that the share scheme should pay out about half of the potential maximum after an assessment of the share price performance of 15 UK-based media companies. That peer group includes BSkyB, the owner of Sky News.

An insider said that the board and remuneration committee had decided to make a further discretionary reduction in the LTIP awards, which the annual report makes clear it is entitled to do. The reduction applies to all recipients of the 2011 awards and not only Ms Bailey, they added.

The value of the award will appear to be lower in the 2013 annual report because it is calculated based on the average share price during the final three months of last year, since when Trinity Mirror's shares have continued to rise.

"Irrespective of TSR (total shareholder return) performance, before any vesting can occur the Committee must be satisfied that the underlying performance of the Company has been satisfactory throughout the relevant performance period," the company said last year.

People close to Trinity Mirror said its board had examined whether it was possible to cancel Ms Bailey's deferred share award altogether but had concluded that it was not possible.

Directors had not expected the 2011 scheme to pay out at all at the time of the award three years ago because of the challenges facing Trinity Mirror, a source said.

Since her departure, when she received a £900,000 payoff, Ms Bailey's successor, Simon Fox, has overseen a surge in its share price, including a market-beating 80% increase in the last 12 months.

Mr Fox receives a basic salary of £500,000, one-third less than the £750,000 pay of Ms Bailey, while his potential cash bonus and LTIP potential awards are much lower than her entitlement.

Trinity Mirror has in recent months been increasingly linked to the tabloid phone-hacking scandal, although it has consistently denied any wrongdoing.

Last month, it took impairment charges of £925m related to the value of assets on its balance sheet, but at the same time upgraded its profit forecasts for the year.

Trinity Mirror declined to comment.

12.06 | 0 komentar | Read More

Ex-Trade Minister Takes Reins At Jack Wills

By Mark Kleinman, City Editor

Lord Davies, the former trade minister, is to add a boardroom role at Jack Wills, the preppy British fashion brand, to his growing portfolio of jobs.

Sky News has learnt that Lord Davies is expected to be announced as Jack Wills' chairman on Thursday in a sign that the retailer is preparing for an eventual debut on the stock market.

Founded in 1999 by Peter Williams and Robert Shaw, two Devon-based friends, with an investment of just £40,000, the company is now estimated to be worth hundreds of millions of pounds.

Jack Wills, which has more than 80 stores on four continents, has styled itself as a premium retailer of casualwear, homewares and accessories using the slogan 'Fabulously British'.

In 2007, it sold a stake to Inflexion Private Equity, a firm which until January was in talks about buying a company co-founded by Jeremy Hunt, the Health Secretary.

Jack Wills prides itself on a commitment to "a sustainable British supply chain", sponsoring a flock of Wiltshire sheep to provide wool for its products.

Its existing board members include Rose Marie Bravo, a former Burberry director, and last year it appointed Wendy Becker, an ex-McKinsey and Vodafone executive, as its chief executive.

The presence of the two women on the Jack Wills board will be important for Lord Davies if the company decides to pursue a flotation in the coming years.

The peer served in the latter stages of Gordon Brown's government after a successful career in banking.

Since then he has led the drive to improve boardroom diversity, setting a target of having 25% of FTSE-350 directorships filled by women by next year.

He has also taken on a number of other roles, including a non-executive directorship at Diageo, the drinks giant, and the chairmanship of a company that is acquiring 315 branches from Royal Bank of Scotland under the name Williams & Glyn.

Jack Wills is said not to be in a hurry to secure a stock market listing, although its investors are understood to be watching closely the current deluge of retailers which are going public.

In the last year for which accounts are available, Jack Wills recorded a near-£10m loss, after Ms Becker decided to close the sister brand Aubin & Wills.

Jack Wills could not be reached for comment.

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12.06 | 0 komentar | Read More

Bob Crow: Sudden Death Of Union Leader

Tributes Pour In For 'Tireless' Bob Crow

Updated: 3:05pm UK, Tuesday 11 March 2014

Union leaders and politicians have praised the tough-talking "giant of the labour movement" Bob Crow after learning of his death.

Labour leader Ed Miliband: "I didn't always agree with him politically but I always respected his tireless commitment to fighting for the men and women in his union. He did what he was elected to do, was not afraid of controversy and was always out supporting his members across the country."

Paul Kenny, general secretary of the GMB union: "Bob's strength, personal integrity and straightforward speaking won many battles for his members. He took his job very seriously and never stopped working. A giant of the labour movement. He is irreplaceable."

London Mayor Boris Johnson: "I'm shocked. Bob Crow was a fighter and a man of character. Whatever our political differences, and there were many, this is tragic news. Bob fought tirelessly for his beliefs and for his members."

Mick Whelan, general secretary of the train drivers' union Aslef: "It's a tragedy that he was taken from us at such a young age. Bob always did his best for his members, and the industry in which he worked. Our thoughts, at this sad time, are with his family and all his colleagues in the trade union movement."

UKIP leader Nigel Farage: "Sad at the death of Bob Crow. I liked him and he also realised working-class people were having their chances damaged by the EU."

Manuel Cortes, leader of the TSSA rail union: "Bob Crow was admired by his members and feared by employers, which is exactly how he liked it. It was a privilege to campaign and fight alongside him because he never gave an inch."

Sir Peter Hendy, London's Transport Commissioner: "We are shocked by this terribly sad and unexpected news. Our thoughts are with Bob Crow's family, friends and all those he represented."

TUC general secretary Frances O'Grady: "This is shocking news. Bob was an outstanding trade unionist, who tirelessly fought for his members, his industry and the wider trade union movement."

Fire Brigades Union leader Matt Wrack: "Bob was a good friend to me personally and to the Fire Brigades Union as a whole. He was a strong leader for the labour movement and he'll be sorely missed by those who knew him."

Network Rail chief executive Mark Carne: "Bob possessed a deep understanding of the rail industry and his contribution to its success was significant, in particular the focus he gave to working with Network Rail on improving passenger and workforce safety."

Former mayor of London Ken Livingstone: "He fought really hard for his members. The only working-class people who still have well-paid jobs in London are his members."

Cathy Warwick, chief executive of the Royal College of Midwives: "He was a staunch supporter and advocate of rights for workers and a fairer and more just world for working people. He invested his work with passion, commitment and dedication. He will be missed by his colleagues across the union world."

Millwall Football Club: "Millwall Football Club would like to extend our condolences to the family of Bob Crow who passed away on Monday night at the age of 52."

Prime Minister's Official Spokesman: "The Prime Minister expresses his sincere condolences to Mr Crow's family and friends."

Sir Brendan Barber, chairman of the conciliation service Acas, and former TUC general secretary: "His bluff exterior masked a shrewd and intelligent negotiator who actually won high respect from employers as well as deep loyalty and support from his members."

Transport Secretary Patrick McLoughlin: "While we may not always have agreed on how to run our railways, he was a powerful advocate who led his organisation from the front and made an important contribution to the debate around the future of rail services in this country."

Len McCluskey, general secretary of Unite: "Bob was a life-long, and highly successful fighter for the interests of his members and for working people as a whole. I am sure that is the only epitaph he would have wanted."

Unison general secretary, Dave Prentis: "Bob was a tough, no-nonsense union leader who always did his best for his members, and it was very much down to his tough stance that their pay and conditions improved."

Communication Workers Union general secretary Billy Hayes: "Bob Crow was a great leader and he was a great inspiration to rail workers and trade unionists around the world."

Public and Commercial Services union general secretary Mark Serwotka: "Bob was a tireless fighter for RMT members and working class people and a towering force in the trade union movement."

12.06 | 0 komentar | Read More

Co-Op Must 'Work To Rebuild Customer's Trust'

The chairman of the Co-operative Group has told Sky News that the mutual will need to work hard to rebuild customers' trust.

Ursula Lidbetter said the Co-op must also implement governance reform in the wake of chief executive Euan Sutherland's resignation.

"The situation we are in is very sad, but the basis of the organisation is still there," Ms Lidbetter told Sky's Poppy Trowbridge.

"Our members, our customers, our staff, the members who get involved in our democracy - they are such good people.

"The organisation, fundamentally, is really good and sound but we need to get the public's support back with us.

Richard Pennycook is now running the Co-op Group

"It's all about customer confidence. It's about doing the right thing."

The Group confirmed a Sky News report this morning that Mr Sutherland had left his job, despite efforts by the board to change his mind.

Mr Sutherland resigned on a point of principle, citing the Group's structure as "ungovernable".

He was also known to be furious over a number of leaks to the media - leaks that he believed had come from the top of the organisation and included details of his pay.

Mr Sutherland said in a statement: "It is with great sadness that I have resigned as chief executive.

"I have given my all to the business and had hoped to be able to lead its revival. However, I now feel that until the Group adopts professional and commercial governance it will be impossible to implement what my team and I believe are the necessary changes and reforms to renew the Group and give it a relevant and sustainable future.

"Saving The Co-operative Bank and with it The Co-operative Group from administration was a huge task, but the changes required do not stop there, with fundamental modernisation needed to safeguard the 11 future for our 90,000 colleagues and millions of members.

"The Group must reduce its significant debt and drive major efficiencies and growth in all of its businesses, but to do so also urgently needs fundamental governance reform and a revitalised membership.

The appointment of now ex-bank chair Paul Flowers is being investigated

"I will not accept the retention payments and long term incentive payments previously agreed for the delivery and protection of value in the Group and the Bank, even though this was successfully delivered."

Ms Lidbetter confirmed Richard Pennycook - who was chief financial officer - had been appointed interim chief executive pending the appointment of a permanent successor to Mr Sutherland.

She said she had accepted his resignation with "deep regret."

An emergency board meeting on Monday night - held to discuss Mr Sutherland's resignation - also proposed a restructuring that would result in the current 21-member board being disbanded and replaced by two different structures.

One would be a PLC-type board while the other would represent members.

Ms Lidbetter has described the planned reforms as urgent.

The decisions were taken following a crisis for the Co-op which has seen its banking operation subjected to regulatory scrutiny after control was lost to US hedge funds.

A £1.5bn black hole in the bank's balance sheet sparked the Co-op's problems but the restructuring of the lender left the Group with just a 30% stake.

Mr Sutherland's own role was in focus at the weekend over plans to raise his own pay to £3.6m despite the mutual's problems and an expected worst-ever loss for 2013 of £2bn, due to be announced at the end of the month.

The Co-op could sell 15 farms and its pharmacy business

The debate over rising awards at the Co-op began just weeks after Mr Sutherland admitted the Group had "lost touch" with customers.

At that time he launched an online poll so the public could make suggestions about its future direction.

A plan to sell parts of its business also left question marks over more than six thousand jobs.

Mr Sutherland has only been in the job since last April.

He expressed fury about media leaks on Sunday in a Facebook posting to an employees' group after the news on pay awards appeared in a national newspaper.

He said: "I'm very sorry to have to report that we have had yet another leak to the media.

"This time it is to the Observer newspaper and concerns levels of annual Executive remuneration, including my salary, and also proposed changes to the Group Executive team.

"It appears that, once again, the leak has come from our Group Boardroom.

"We seem to have an individual, or individuals, determined to undermine me personally, my team and the rest of the Group Board regardless of the uncertainty and disruption this causes to our 90,000 colleagues and our supportive members.

"Despite this, I am determined that we will see through the vital transformation of our business."

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12.06 | 0 komentar | Read More

Fidelity Criticises Pay 'Mess' At Barclays

By Mark Kleinman, City Editor

The fund management giant Fidelity International has become the first big City institution to publicly criticise Barclays over its £2.4bn bonus pot, intensifying the pressure on the bank ahead of a potentially-fiery annual meeting next month.

Speaking exclusively to Sky News, Dominic Rossi, Fidelity's global chief investment officer, said he was "disappointed" Barclays had landed itself in a "public relations mess" by hiking bonus awards for 2013 by 10% despite a significant fall in profits.

He joined critics including the Institute of Directors in expressing dismay Barclays had decided to hand out almost three times as much in bonuses to staff as it was handing out in dividends to shareholders.

One of the most influential shareholder voices in the City, Mr Rossi oversees billions of pounds in investments made by Fidelity, which is among the biggest owners of UK-listed shares.

"We are disappointed that the distributions between employees and shareholders did not favour shareholders more. It is disappointing that a year after making various commitments on pay, they have got themselves into a PR mess again," he said.

Mr Rossi's remarks about Barclays underline the difficulty facing Sir David Walker, Barclays' chairman, who will step down next year, and Antony Jenkins, the chief executive, as they attempt to keep both investors and top-performing employees happy.

His remarks are likely to be particularly painful for Barclays since one of the bank's non-executive directors, Simon Fraser, spent 27 years at Fidelity, including a stint in the role that Mr Rossi now occupies.

Mr Fraser is to step down from the Barclays board this year.

Sir David Walker, chairman of Barclays

Mr Rossi has been among one of the most vocal advocates of remuneration reform in British boardrooms, recently threatening to vote against companies' pay policies unless they force top executives to hold onto share awards for at least five years from 2015.

Barclays is among the companies which have pledged to ensure executives such as Mr Jenkins hold onto share options for at least five years, which Mr Rossi said on Monday he welcomed.

Other commentators, including the Parliamentary Commission on Banking Standards, have called for banks to lengthen to as long as ten years the period until managers receive bonuses, which Mark Carney, the Bank of England Governor, said last week would be considered as part of a consultation on the issue.

It is unclear how Fidelity will vote on the Barclays remuneration report for 2013 at next month's annual general meeting.

It seems unlikely, however, that it will use its vote on future pay policy - the binding nature of which is new this year following reforms led by Vince Cable, the Business Secretary - to embarrass Barclays given the bank has moved to lengthen the deferral period for executive share awards.

Last autumn, Mr Rossi wrote to hundreds of UK companies to warn them of a tougher stance on that issue.

"Despite a broadly positive response to our initiative, change on the ground has been slow and we continue to be concerned that incentive schemes are too short-term in their orientation."

He added that longer deferral periods would "change corporate governance for the better, reduce the temptation of management to maximise short-term financial performance and instead promote investment and growth".

"It's quite clear that a number of leading companies are going to move," Mr Rossi said in his letter.

"It's also clear that a number aren't, and therefore we will find ourselves voting against a material number of reports next year."

Last week, Mr Jenkins ran into another row over pay, saying in a newspaper interview he had had to pay bigger bonuses to avoid its investment bank falling into "a death spiral".

In total, 481 Barclays workers' remuneration broke through the £1m threshold, a 10% increase on the previous year despite the sharp decline in profits.

The row over bonuses could be especially damaging given shareholders injected almost £6bn last year to help shore up Barclays' finances through a rights issue.

A round of shuttle diplomacy involving Mr Jenkins and Tushar Morzaria, Barclays' new finance director, has attempted to reassure investors they will exert a tighter grip on the bank's cost-base during the next 12 months.

Since replacing Bob Diamond, his lavishly-paid predecessor, Mr Jenkins has pledged to make Barclays a stakeholder-friendly bank by boosting shareholder dividends and punishing employees whose behaviour does not meet exacting standards.

However, Barclays has continued to face legacy issues including a Serious Fraud Office probe into a rescue fundraising in 2008, and, like other banks, sizeable compensation bills for insurance and other product mis-selling.

Barclays is not the only bank to have made troubling pay-related disclosures in recent days, however.

More than 100 employees at state-backed Lloyds Banking Group and Royal Bank of Scotland were paid more than £1m last year.

At the weekend, it emerged Euan Sutherland, chief executive of the Co-operative Group, would be paid more than £3.5m this year, including a £1.5m guaranteed retention bonus.

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12.06 | 0 komentar | Read More

Bankers' Bonus Tax To Pay For Labour Job Plan

By Anushka Asthana, Political Correspondent

Labour is including a £5.5bn "jobs guarantee" in its manifesto under which the long-term unemployed will be told to take up taxpayer-subsidised work or lose their benefits.

The party is to fund the policy with a tax on bankers' bonuses and by reducing the rate of pension tax relief among higher earners to 20% from 45%.

Labour had initially pledged the jobs guarantee scheme for one year when it was first unveiled in January, however, now it will run until 2020, if the party is successful in 2015.

The scheme will see those under 25 given jobs for six months, with 25 hours a week paid at the minimum wage. 

People aged under 25 will be asked to take on the positions after a year on jobseekers' allowance, while for everyone else they will kick in after two years.

Ed Miliband floated the job guarantee scheme in 2012

Private companies and voluntary sector organisations will be given incentives to provide the jobs by the offer of a wage subsidy. They will also be given £500 to provide an additional 10 hours a week of training.

Labour insists the policy is funded, claiming the bankers' bonus tax will raise between £1.5bn and £2bn and the pension relief rate cut between £900m and £1.3bn each year.

However, the Conservatives said the policy would cost more than Labour had estimated - around £2.6bn a year - and as such would not be covered by the banker bonus tax and change to pensions.

They also pointed out that Alistair Darling, the former Labour chancellor, had said the bonus tax would be a "one off" because City chiefs would soon find a way to evade it.

Financial Secretary to the Treasury: 'Sums don't add up'

Financial Secretary to the Treasury, Sajid Javid, said: "Labour's sums don't add up. They are proposing yet more unfunded spending, meaning more borrowing and more taxes to pay for it.

"And Labour's bank tax is a short-term political gimmick that they want to spend ten times over."

Labour wants to present itself as the "party of work" but this policy is also borne out of a perception that it needs to be tougher on welfare.

Internal polling suggests people support Government welfare reforms by two-to-one, rising to seven-to-one with swing voters.

Rachel Reeves, the shadow work and pensions secretary, said she was prepared to be even tougher than the Government when she took up this role.

"Our Basic Skills Test and Compulsory Jobs Guarantee will give young and long-term unemployed people the chance to work and will help us to earn our way out of David Cameron's cost-of-living crisis," she said.

Speaking at a visit to a building site in south London, Labour leader Ed Miliband, who first floated the scheme two years ago, said: "We can't have a recovery that's just for a few banks.

"We've got 56,000 young people who have been unemployed for over 12 months. A Labour government will tax the bankers' bonuses and put our young people back to work."

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UK Economy 'To Reach 2008 Peak In Summer'

The size of the UK economy will surpass its pre-recession peak by the summer, according to an upgraded forecast from the British Chambers of Commerce.

The business lobby group believes the UK will grow by 2.8% this year and that the second quarter will see gross domestic product rise to the level seen in the first quarter of 2008.

A year ago, the BCC predicted the pre-recession peak would not be reached until 2016.

The group's director general, John Longworth, said Britain's economic recovery is gaining momentum.

"Businesses across the UK are expanding and creating jobs, and our increasingly sunny predictions for growth are a testament to their drive and ambition," he said.

The BCC expects the first increase in interest rates will happen in the autumn next year - one quarter earlier than previously envisaged, before rising to 1.5% in the second half of 2016. GDP will be 2.5% next year and in 2016.

The BCC boss says unemployment remains a 'major issue'

But Mr Longworth warned business investment is likely to remain below pre-crisis levels for some time to come.

"Major issues remain, such as the unacceptably high level of youth unemployment," he added.

"We urge the Chancellor to use this month's Budget wisely by incentivising businesses to hire young people so that the next generation of workers are not left behind.

"We just hope that as the general election gets closer, politicians are not tempted to abandon a drive for long-term economic security in favour of short-term vote winners.

"No government over the next decade can afford to get distracted - and our leaders must do everything in their power to ensure the economy goes from being merely good, to being truly great."

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12.06 | 0 komentar | Read More

Energy Bills To Show Codes To Help Consumers

By Rhiannon Mills, Sky Correspondent

Homeowners are being offered a new way to potentially save money on their energy bills - QR (or Quick response) codes.

The Department for Energy and Climate change want all energy companies to add the codes to their bills, to give customers an easier way of finding out how much they have spent on gas and electricity.

Ed Davey says the move will make a 'real difference'

The codes are small box shapes with unique combinations of black and white dots, and are similar to barcodes, providing easy access to information through your smartphone.

In order to read them, customers will need to download a QR reader app on their phones.

This is the latest announcement from the Government to help consumers get a better deal, with collective switching and simpler tariffs already introduced.

Secretary of State for Energy and Climate Change Edward Davey said: "We're determined to make energy markets work better for consumers - and despite all the evidence showing that QR codes on bills would make a real difference to people, energy companies still haven't done anything about it.

"That's why we're acting to make sure people have a quick, straightforward way to compare the best deal for them with a simple swipe of their phone.

"With so many of us using smart phones and tablets nowadays it would be strange if we weren't using the latest technology to help us save money at home."

The big six energy companies have all raised prices in recent months

The Government says studies have shown that the technology would be helpful for customers, but there has been no voluntary move by the energy sector to introduce QR codes, therefore they are taking action under the Energy Act to modify the energy company licences to have QR codes included as part of energy bills.

Energy UK, which represents the industry, told Sky News: "Energy companies are working hard to streamline tariffs, improve customer information and encourage choice so people have all they need to compare and switch.

"And it's working - around quarter of a million customers switch every month and nearly a million did last November and December alone."

Despite concerns from some campaign groups, ministers insist the QR codes will also benefit vulnerable consumers or those who do not use smart phones, because people with smartphones will be able to help friends and family less comfortable with technology.

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US Jobs Up As Part-Time Work Hits New Record

The number of new jobs in the United States accelerated in February, as the number of part-time workers in the month reached an all-time high.

The rise of 175,000 jobs helped ease fears of an economic slowdown.

The dollar rose sharply on the news and the Federal Reserve is now expected to continue tapering its quantitative easing stimulus package.

The US Labor Department said the 35% job jump comes on the back of 129,000 new positions in January.

The unemployment rate, however, rose 0.1% to 6.7%. The previous figure was at a five-year low.

"This bodes well for the economy since there were massive head winds," Adam Sarhan, chief executive at Sarhan Capital in New York, said.

"This report plays perfectly into the Fed's script of tapering."

US shares opened higher on the data. The British pound dropped at first against the dollar before recovering.

The dollar also hit a six-week high against the yen.

Analysts had expected harsher figures as snow and ice hampered economic activity across swathes of the US.

Economists had expected non-farm payroll numbers rising by only 149,000 jobs.

Revised figures for December and January were also released, showing 25,000 more jobs being created in that period than previously thought.

Last month's weather did impact average working hours, with February being the lowest level since January 2011.

Economists now expect a reversal once the weather improves.

A smaller survey of households, from which the unemployment rate is derived, showed that 6.9 million people with jobs reported they were working part-time.

That was the highest reading for February since the series started in 1978.

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TV Licence Dodgers May Not Be Prosecuted

Pressure Grows Over TV Licence Prosecutions

Updated: 1:18pm UK, Saturday 08 March 2014

By Anushka Asthana, Political Correspondent

What crime led to 180,000 people being hauled in front of magistrates in 2012, resulted in 70 prison sentences and accounted for one in nine of all cases heard by the courts?

OK, OK, I know you've read the news story and realise the answer is failure to pay a television licence fee.

Magistrates have long objected to being asked to deliver criminal records to these offenders, who tend to be poor, are often older and about two-thirds of whom are women.

They think it is an over-reaction and a waste of court time.

Instead, they want to divert cases to the civil system, along with parking offences or failure to pay your gas bill.

So could their argument be gathering steam in Parliament?

An amendment calling for the change by Conservative MP Andrew Bridgen is gathering support from across the political divide with a variety of motivations.

Some object to the "poll tax" nature of the fee - a £145.50 levy on the rich and poor is clearly regressive.

Others feel that criminal sanctions including prison are simply not the right response, particularly given the vulnerability of those it affects.

Then there is the idea of easing pressure on courts and prisons appeals across the political system.

And finally, there are those who simply detest the BBC.

The corporation itself would be uneasy about the change because of fears it would reduce the incentive to pay.

Even a 1% rise in evasion would cost £35m, which the Beeb tells us is equivalent to 10 local radio stations (or, to put a different spin on it, 11 Jeremy Clarksons).

What is notable about this story is that Chris Grayling, the Justice Secretary, has called Mr Bridgen's intervention "really interesting".

He says Maria Miller, the Culture Secretary, agrees and both departments will be doing some "serious work on the proposal".

In reality, any such change would be discussed as part of BBC Charter renewal.

The next round is due to be completed by the end of 2016, with talks starting around 18 months beforehand.

That means the middle of next year - probably not until after the General Election.

The magistrates, it seems, will have to wait.

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