Fortnum Boss Warns of Scots Vote 'Disaster'

By Mark Kleinman, City Editor, in Dubai

The chief executive of Fortnum & Mason, the upmarket London-based grocer has warned that a 'yes' vote in the Scottish independence referendum would be a "disaster" for the country.

Speaking exclusively to Sky News, Ewan Venters, a Scot by birth, said that a break-up of the United Kingdom would create a damaging period of uncertainty for businesses.

"I think it would be a disaster. The UK is better as one. We are a small enough island as it is, we don't need to become smaller," he said.

"The consequences of an independent Scotland and an independent England could be very unfavourable economically. That uncertainty is not what the country needs."

Mr Venters, who has run the Queen's grocer since 2012, is one of the most senior English-based Scottish businessmen to articulate his views about the implications of the referendum vote which takes place in September.

A former executive at companies including J Sainsbury and Selfridges, which is owned by the same family as Fortnum & Mason, Mr Venters also criticised the fact that he would not be allowed to take part in the vote.

"It is very disappointing that Scots like myself are not allowed a vote, when someone could be from any nation, move to Scot and be allowed a vote.

Fortnum & Mason is a favourite of the Royal Family

"It is an ill-conceived set-up of the referendum by those in the establishment who know that many of those who have moved away from Scotland to build careers elsewhere are in favour of the union remaining intact."

He is the latest in a growing number of executives and companies to speak out on independence.

In recent weeks, Alliance Trust, Standard Life and Royal Bank of Scotland have highlighted contingency planning being undertaken to prepare for a 'yes' vote.

In its annual report published this week, the defence contractor BAE Systems also said a vote in favour of independence could be disruptive.

Mr Venters, 41, was speaking in Dubai during a trip to mark the opening of Fortnum & Mason's first overseas store, opposite the Burj Khalifa, the world's tallest skyscraper.

Fortnum & Mason, which operated solely from its shop on London's Piccadilly for more than 300 years, was founded in 1707, the year that the Act of Union binding England and Scotland came into being.

Mr Venters wants the Dubai store, which has been developed in conjunction with AKI, a local partner, to be the first step in a carefully and gradually orchestrated expansion of the business.

"It is a very important milestone because customers from this region are hugely important at our Piccadilly store," he said.

"Fortnum has a long history of taking products to customers around the world," he said, which included exporting Christmas hampers to 112 countries towards the end of last year.

Dubai was chosen as Fortnum's first international outpost because of the Emirates' status as the most important luxury retail centre in the world, behind London, he added.

"Tea is the most popular drink after water here. As tea merchants for more than three centuries, we felt it was important to be here," he said.

Mr Venters cautioned against expectations that the Dubai opening would lead to a chain of Fortnum & Mason stores opening around the world, although he has now overseen the launch of two outlets in little more than six months.

Last autumn, the company opened a shop next to the Eurostar terminal at London's St Pancras station, with sales understood to be performing strongly.

"We will carefully consider other opportunities in what I call surging economies rather than emerging markets.

"This is a good moment to look at taking firmer positions in the world on a gradual basis."

"Over half of our business is made up of consumers living in the UK. That trend has increased in recent times as we have tried to make it more relevant to domestic consumers," Mr Venters said.

He described Britain's economy as "two-tier", with London the dominant force, adding that this week's Budget statement by George Osborne was "business-friendly and broadly friendly to working people of Britain by ensuring there's more money in people's pockets".

Mr Venters also waded into the debate about the future of Britain's troubled high streets, calling for a significant increase in residential development in order to stimulate wider usage.

"The opportunity for the high street has never been so good. The drive to buy more online means people are shopping on a more frequent basis.

"With some proactive housing policies on high streets and sensible movement on business rates, there is no reason why you couldn't start to see a revival."

12.06 | 0 komentar | Read More

Business Round-Up And Week Ahead

Sky's Naomi Kerbel offers a round-up of what's coming up in the week's business news.

:: Monday March 24

On Monday, the Chancellor's budget "perk" to reduce beer duty by a penny comes into effect. 

:: Tuesday March 25

Energy provider, SSE will cut its dual fuel prices by 3.5% on Tuesday. The company's prices rose by 8.2% on average on November 15, 2013.

:: Wednesday March 26

On Wednesday, teachers who are members of the National Union of Teachers are due to strike against changes to their pay and pensions. 

:: Thursday March 27

It is a big day for Sky News Business on Thursday. At 7pm, Jeff Randall will host his final Jeff Randall Live business programme.

:: Friday March 28

On Friday, the ONS will deliver final growth figures for the fourth quarter in the UK. The last estimate showed growth of 0.7%.

Tweet your business stories to @SkyNKTweets

12.06 | 0 komentar | Read More

Hitachi In UK Move To Shunt HS2 Rail Rivals

Japanese engineering giant Hitachi is to move its rail division's decision-making hub to Britain, in an attempt to shunt its European rivals.

The shift is also seen as an attempt to lay a track for plans to bid for the High Speed Two (HS2) contracts.

Alistair Dormer, who has headed its London-based European rail section, will be responsible for refocusing the division away from a Japanese viewpoint to a greater global perspective.

"Europe is one of the largest rail markets in the world and has a lot of potential for new growth," an Hitachi spokesperson told Sky News.

"Passenger numbers are rising and it gives us a stronger focus in capability and business opportunities."

The announcement comes a day after Chancellor George Osborne told Parliament in his Budget speech that Britain has "under-invested for decades" in infrastructure.

The HS2 future project has been opposed by environmental groups

Mr Osborne said: "We've been reminded again this week of the benefits high-speed rail will bring to the north of our country and I'm determined it goes further north faster."

The company is building a new plant in Newton Aycliffe, County Durham, after winning a £1.2bn contract for 270 next generation intercity carriages.

That order, won last year, is part of the larger £5.8bn Intercity Express Programme.

Its 395 class high-speed trains have been in operation since December 2009 on lines from London to Kent, where it also has maintenance facilities in Ashford.

Its factory will initially employ 750 people and it hopes to increase the company's rail section workforce by 60%, taking the global total to 4,000.

Existing Intercity rolling stock is being replaced by Hitachi's new trains

Business Secretary Vince Cable called it a "huge vote of confidence for Britain".

"It's further testament to the Government's industrial strategy which is giving companies of Hitachi's stature the confidence to invest in the UK in an expanding rail sector," he said.

Hitachi is an engineering and electronics conglomerate with more than 320,000 staff, and its total profit for the last quarter of 2013 reached £725m.

It has a long rail history, making its first steam locomotive in 1920 and an electric version four years later - it also created the famous hi-tech Japanese 'bullet train' in 1964.

Rail has become an increasingly important issue in Britain amid expansion plans and contracts going to foreign firms.

Canadian-owned Bombardier, which has facilities in Derby and Germany, has won a £1bn Crossrail contract for 65 trains on the London line.

Germany's Siemens has also won a £1.6bn deal to build 1,140 state-of-the-art carriages for use on the Thameslink rail line.

Rival Bombardier has won a large contract for London's Crossrail

France's Alstom Transport is also a major player in Europe's high-speed rail infrastructure.

Britain's rail use has grown significantly in recent decades.

Although it remained roughly static between 1950 and 2000 at 20 billion passenger miles annually, it has nearly doubled since then.

12.06 | 0 komentar | Read More

Russia Hits Back As Obama Targets Oligarchs

US President Barack Obama has announced a series of fresh sanctions against Russia over its actions in Ukraine - prompting an immediate retaliation from Moscow.

In a speech on the White House lawn, Mr Obama said 20 individuals linked to the Russian government would be targeted for increased sanctions. A bank supporting those individuals will also be hit.

Among the senior Russian figures sanctioned by the US is Sergei Ivanov, one of President Vladimir Putin's closest associates. 

Also being hit is Yuri Kovalchuk, who is considered to be Mr Putin's private banker, and two life-long friends who have become multi-billionaires during Mr Putin's presidency.

Moscow immediately banned nine US officials and politicians from entering Russia in retaliation.

A list of banned individuals released by the Russian Foreign Ministry included Deputy National Security Adviser Benjamin Rhodes and senators John McCain, Harry Reid, Daniel Coats and Mary Landrieu.

Mr Obama speaks about the situation in Ukraine on the White House lawn

House of Representatives speaker John Boehner and the Head of the Senate Foreign Affairs Committee Robert Menendez are also barred, alongside Mr Obama's aides Caroline Atkinson and Daniel Pfeiffer.

The US is working with the European Union on a series of more stringent measures should the Kremlin continue in what Mr Obama described as an "illegitimate" incursion into the Crimean peninsula.

He said: "I signed a new executive order today that gives us the authority to impose sanctions not just on individuals but on key sectors of the Russian economy."

The US has declared Bank Rossiya, which serves a financial institution for senior Russian officials, and 20 individuals to be "Specially Designated Nationals".

Mr Putin with Russian Railways President Vladimir Yakunin

This means the individuals' assets in the US will be frozen and they will be banned from entering the country.

Russia's Foreign Ministry said its retaliatory sanctions will "hit the United States like a boomerang".

"There should be no doubt: each hostile attack will be met in an adequate manner," the ministry said.

A spokesman for Mr Boehner said he was "proud" to be among those named, while Mr McCain has also reacted to Moscow's decision, saying: "I'm proud to be sanctioned by Putin - I'll never cease my efforts & dedication to freedom & independence of #Ukraine, which includes #Crimea."

Mr Obama has ruled out military action but his statement comes as EU leaders meet in Brussels to discuss an expansion of its own sanctions.

Russian troops surround a Ukrainian base in Perevalnoe, Crimea

Further bank account freezes and travel bans on all those linked to the crisis is on the EU's agenda, and wider trade and financial restrictions are now under consideration.

The G8 - a group of leading industrial nations, including Russia - has been suspended until the crisis is resolved.

"The EU summit today and tomorrow will make clear that we are ready at any time to introduce phase-three measures if there is a worsening of the situation," German Chancellor Angela Merkel.

"As long as there is no political climate for an important format such as the G8, as is the case at the moment, the G8 no longer exists. Neither does the summit nor the format as such."

Europe's dependency on Russian gas will also be discussed by EU leaders.

Arriving at the summit, Prime Minister David Cameron revealed Ukraine would be offered closer links with the EU.

Despite the increasing threat of economic sanctions, the Kremlin has cranked up its attempt to absorb Crimea into Russia.

Russian businessman Gennady Timchenko is among those sanctioned by the US

Troops have seized military bases on the peninsula and on Thursday Russia's deputy defence minister Yuri Borisov said their military presence in Crimea would be bolstered to protect against "all possible encroachments" and to make it "a worthy representative of the Russian Federation".

This came as Russia's lower house of parliament overwhelmingly approved a treaty to annex Crimea from Ukraine.

There is now just one legal obstacle before Crimea is absorbed by Moscow - ratification from Russia's upper house - although little resistance is expected there.

The Russian coat of arms is put up at a Ukrainian navy base

Ukrainian troops in Crimea are currently being redeployed to the mainland by the Kiev government.

Ukrainian navy commander Serhiy Haiduk and several other hostages were detained by Crimean authorities on Wednesday but have now been released.

Meanwhile, United Nations Secretary-General Ban Ki-moon travelled to Russia to meet Mr Putin on Thursday.

As talks started, Mr Ban said he was "deeply concerned" at the current situation.

The UN chief will fly to Kiev for talks with Ukraine's acting president and prime minister on Friday.

12.06 | 0 komentar | Read More

Pension Firms 'Lose Billions' After Speech

Mixed Reaction To Budget Measures

Updated: 3:22pm UK, Wednesday 19 March 2014

Reaction to the Budget has been split, with industry praising measures to cut energy costs and unions criticising an "obsession" with austerity.

Paul Kenny, general secretary of the GMB, said: "This Budget reeks of the stuck-up complacency of the well-heeled elite.

"The Budget is doing very little to get the 912,000 unemployed aged 16-24 into proper jobs. As some 246,000 have been out of work for over a year, there is a grave danger of seeing a lost generation."

Public and Commercial Services union general secretary Mark Serwotka said: "This Government's obsession with austerity is causing misery for millions of people while the over-hyped economic recovery benefits only a wealthy few."

Dave Prentis, leader of Unison, said: "The Chancellor has run out of time and ideas. His claims that people are feeling the benefits of his austerity agenda are wearing thin."

Len McCluskey, Unite general secretary, said: "This was a blue rinse budget for the stockbroker belt who will celebrate their tax reductions and help with their savings."

TUC general secretary Frances O'Grady said: "There was nothing for the young who continue to face the worst job market in decades and unaffordable housing."

Matthew Reed, chief executive of The Children's Society, said: "Raising the personal allowance and lifting three million people out of taxation may appear a positive move.

"For hundreds of thousands of working families that depend on housing benefit to top up their meagre earnings, this will gain them very little."

Friends of the Earth campaigner David Powell said: "Merely weeks after promising action on flooding and global warming, the best the Chancellor can manage is a U-turn on his own reckless flood defence cuts, and caving in to big business lobbying on pollution tax."

British Chambers of Commerce director general John Longworth said: "Business wanted a Budget that was disciplined, focused, and geared toward the creation of wealth and jobs - and that's what the Chancellor has delivered.

"By making a better business environment his top priority, the Chancellor has recognised that successful and confident companies are the key to transforming Britain's growing economic recovery into one that is felt in homes and on high streets."

Terry Scuoler, chief executive of manufacturers' organisation EEF, said: "The Chancellor said this would be a Budget for manufacturers and he has delivered on his word.

"The Government clearly recognises the need to make the competitiveness of the UK a priority. We now have some of the building blocks in place which will help re-balance the economy."

John Allan, chairman of the Federation of Small Businesses, said: "The Chancellor delivered a Budget to maintain positive momentum in the economy, while incorporating fiscal prudence."

Simon Walker, director general of the Institute of Directors, said: "This is a responsible and imaginative Budget which should promote growth, exports and investment. It will be widely welcomed across the business community."

CBI director general John Cridland said: "This was a make or break Budget coming at a critical time in the recovery and the Chancellor has focussed his firepower on areas that have the potential to lock in growth."

Local Government Association chairman Sir Merrick Cockell said: "Much more can be done to build new homes, create jobs and stimulate the economy if local government's hands were untied by the Chancellor to drive this through at a local level."

Dot Gibson, National Pensioners Convention general secretary, said: "Pensioners will be concerned that benefits such as the winter fuel allowance, cold weather payments and the Christmas bonus have all been placed into the welfare cap, which could lead to cuts in the future, at a time when fuel bills in particular are continuing to rise."

12.06 | 0 komentar | Read More

Budget 2014: The Key Points You Need To Know

The Chancellor George Osborne has delivered his fifth budget. Here are the key points.

Savings

:: Tax-free ISAs to be boosted to £15,000 per year from July. Junior ISAs up to £4,000 a year.

:: Stocks and shares ISAs can be tranferred to new single ISA scheme.

:: Premium Bonds cap lifted from £30,000 to £40,000 in June, and to £50,000 next year.

:: 10p rate of tax for savers to be abolished.

:: Zero tax band to cover £5,000 of savings.

Reliefs

:: Alcohol escalator to be scrapped for all alcohol duties, instead a rise with inflation.

:: Scottish whisky duty to be frozen as it is "a huge British success story".

:: Cut of 1p in duty per pint of beer.

:: Export finance lending interest rate to be cut by a third and lending doubled to £3bn.

:: From 2015, all long haul air passenger flights carry same, lower, band B tax rate.

:: Right to Build scheme for builders of their own homes including £150m of finance to support it.

:: New £200m fund for councils "to bid for" to fix potholes across Britain.

:: Additional £140m help for flood damage.

:: September's fuel duty rise will not be brought in.

Taxes

:: Duty on fixed-odds betting terminals to rise to 25%.

:: Horse race betting levy to be extended to bookmakers based offshore.

:: Bingo duty will be halved to 10% "to protect jobs and protect communities".

:: Tobacco duty to remain at 2% above inflation and escalator will not be stopped.

:: Increased disclosed tax avoidance schemes scrutiny for the wealthy.

:: City fines over Libor rate-rigging to continue going to military charities and emergency service charities.

:: From midnight anyone buying home over £500,000 through corporate entity to pay 15% stamp duty to "avoid abuse".

:: "We will expand the tax on residential properties worth over £2m to those worth more than £500,000."

:: Private jets, previously not taxed, will see tax levied on flights.

Income Tax

:: Personal tax allowance rises to £10,500 next year, giving average saving of £800.

:: 40p tax rate threshold to rise from £41,450 to £41,865 from next month and then up by further 1% to £42,285 next year.

:: Transferable tax allowance for married couples rising to £1,050.

Pensions

:: All retirees on defined contribution pensions to be offered free, impartial, face-to-face advice.

:: No need for pensioners to buy annuities if they do not wish to.

:: Removal of all remaining tax restrictions on how pensioners have access to their pension pots.

:: Income requirement for flexible draw-down from £20,000 to £12,000, raised cap draw-down limit from 120% to 150%.

:: Lump sum small pot level lifted five-fold to £10,000.

:: Almost doubling total pension savings as a lump sum to £30,000.

:: £20m  to be spent in next two years working with consumer groups over pension advice.

:: New Pensioner Bond paying market leading rates, issued by National Savings and Investments, open to everyone aged 65 or over. Available from January next year.

 

Spending and Welfare

:: Foreign aid to be 0.7% of national income.

:: Public sector spending reduction to reach £1bn by 2015-16.

:: A permanent cap on welfare, excluding state pension, set at £119bn in 2015-16, rising in line with forecast inflation to £127bn in 2018-19.

Growth

:: Independent OBR growth forecast revised upwards to 2.7%, up from 2.4% in Autumn Statement.

:: Growth next year is also revised up to 2.3%, then 2.6% in 2016 and 2017, with growth expected to return to long-term trend of 2.5% in 2018.

:: 1.5 million new jobs forecast in next five years.

Borrowing

:: Deficit this year of 6.6% reduced to 5.5%  next year, then expected to be 4.2%, 2.4% and finally 0.8% in 2017-18. Following year forecast surplus of 0.2%.

:: Expect to borrow £108bn this year, £12bn less than forecast last year. No borrowing from 2018-19.

:: OBR forecasts public debt to be 74.5% of GDP this year; 77.3% next year; peaking at 78.7% in 2015-16 - lower than the 80% previously forecast - before falling to 78.3% in 2016-17, then falling to 76.5% and then 74.2% in 2018-19.

:: The new £1 coin to thwart forgery and "In honour of our Queen".

Jobs

:: Support for more than 100,000 new apprenticeships.

:: New Alan Turing Institute for computing "big data" to boost Britain's IT prowess.

Business

:: New allowance for ultra high pressure, high temperature oil field for North Sea oil and gas.

:: Tax relief of up to 25% for touring theatrical productions.

:: VAT relief on fuel for air ambulances and inshore rescue boat services across Britain, and a new air ambulance for London.

:: Accept recommendation to move collection of Class 2 NICs into self-assessment, abolishing for 5 million people "this wholly unnecessary bureaucracy".

:: Corporation tax - high street stores will get £1,000 off their rates, and businesses the £2,000 Employment Allowance.

:: From next year, corporation tax to drop from 21% to 20% and under-21s taken out of the jobs tax.

:: Business rates discounts and enhanced capital allowances will be extended for another three years.

12.06 | 0 komentar | Read More

Tax-Free Childcare 'To Help 2 Million Families'

A childcare tax break is to be expanded, with working parents set to receive more money for longer than previously planned.

The scheme will be worth up to £2,000 per child per year when it launches in autumn next year - £800 more than the £1,200 originally proposed.

It was only expected to apply to children under the age of seven, but parents will now be entitled to the money until their son or daughter's 12th birthday.

Nearly two million families could benefit from the scheme - twice as many as the present voucher scheme, which is only available where adopted by an employer.

David Cameron and Nick Clegg will unveil details of the childcare scheme

However, it has been criticised for excluding couples where one parent does not work and for applying to richer households with incomes of up to £300,000.

David Cameron said the policy, which effectively covers 20% of childcare costs up to a maximum of £10,000 a year, would help "hard-pressed families" and "provide financial security for the future".

Earlier this month, the Family and Childcare Trust said parents now spend more on part-time childcare than their mortgage repayments.

The Prime Minister is due to unveil details of the package during a joint appearance with his deputy Nick Clegg, who added: "We want to ensure everyone can get on and succeed."

However, Labour's Lucy Powell, the shadow minister for children, said the proposals were "too little, too late".

"Mr Cameron has cut support for children and families by £15bn since he came to office," she said.

"This Government has done nothing in this Parliament to help parents experiencing a cost-of-living crisis."

As well as the childcare tax break, the Government is to give an extra £50m to nurseries looking after the most deprived three and four-year-olds.

Families claiming Universal Credit will also have 85% of their childcare costs met, up from 70%.

The announcement comes as the Chancellor prepares to unveil this year's Budget.

George Osborne, who will set out the Government's spending plans for 2014-15 next Wednesday, has warned of "difficult decisions" to come.

12.06 | 0 komentar | Read More

Bank of England Recruits Habgood As New Chair

By Mark Kleinman, City Editor

The Treasury will name Anthony Habgood as the new chairman of the Bank of England's supervisory body on Tuesday, furthering a shake-up of its leadership since the arrival of Mark Carney as its Governor.

Sky News has learnt that a statement is expected to be made by the Treasury on Tuesday morning appointing Mr Habgood to a beefed-up role amid a series of challenges to the central bank's authority.

Mr Habgood is not a career banker, although he did serve on the board of National Westminster Bank prior to its takeover by Royal Bank of Scotland.

He is currently the chairman of two FTSE-100 companies: Whitbread, owner of the Costa Coffee chain, and Reed Elsevier, the academic publisher and event organiser.

Mark Carney has carried out a shake-up at the bank since becoming governor

Mr Habgood will succeed Sir David Lees, who has chaired the Bank of England's board, which is known as its Court, since 2009.

His arrival will come at a difficult time for the Bank, which said two weeks ago that it had suspended an employee as part of an investigation into its own role in the potential manipulation of foreign exchange markets.

The Bank's oversight committee subsequently announced that it had asked Lord Grabiner QC to lead a review on its behalf, which it hopes will allow it to overcome the perception that it has been slow to address critical governance issues.

The Court has nine independent directors, with the chair officially designated by the Chancellor.

Among the other members of the Court are Sir Roger Carr, the chairman of BAE Systems; John Stewart, chairman of Legal & General and Dave Prentis, general secretary of the Unison trade union.

The nature of the changes to the Court's role was unclear on Monday.

One source familiar with the changes said there would be a clear signal that Mr Carney was acknowledging the need for more robust oversight of the Bank of England's work.

Andrew Tyrie, the Conservative MP who chairs the Treasury Select Committee, has been a particularly vocal critic of the Court, telling the Financial Times this month that the Bank needed "a board worthy of the name".

Mr Carney is expected to announce a range of other reforms to the Bank of England's structure on Tuesday, including appointments aimed at more effectively integrating its regulatory and monetary policy powers.

Since assuming responsibility for regulating banks operating in Britain last year, the Bank has become an even more powerful decision-making body.

The Bank of England and the Treasury declined to comment.

12.06 | 0 komentar | Read More

Alibaba: Chinese Web Giant's Massive US IPO

A Chinese e-commerce business is bidding to list itself on one of the US stock exchanges in what could be the biggest IPO of 2014.

Alibaba Group is a privately-owned firm which incorporates a search engine, business-to-business web portals, online retail sites, payment service platforms and cloud computing services.

It was estimated to have generated more than £170bn in sales in 2012 and is believed to serve more than half of all online transactions in China.

The firm had looked at listing on stock exchanges in Hong Kong and London but has now ruled them out.

It is thought the group will use New York, rather than other exchanges such as the NASDAQ.

Speculation about a New York listing for Alibaba began last September.

The news comes two days after another Chinese tech giant, Twitter-like service Weibo, announced plans for a $500m (£300m) US listing.

A statement from the company said: "Alibaba Group has decided to commence the process of an initial public offering in the United States.

"This will make us a more global company and enhance the company's transparency, as well as allow the company to continue to pursue our long-term vision and ideals."

Analysts say the listing is expected to raise up to $15bn (£9bn), which would make it the technology industry's largest IPO since Facebook in 2012.

Talks between the world's largest online retailer and the Hong Kong Stock Exchange broke down last year.

Alibaba wanted an alternative class share structure to give selected minority shareholders extra control over the board, but the Hong Kong bourse declined to change its rules.

The firm did not rule out returning to the Chinese sub continent for a listing in the future.

It is not known why London was ruled out.

The Wall Street Journal reported Alibaba could launch its IPO as soon as April, which could allow trading to begin by the third quarter.

The report said up to five banks may be given lead underwriting roles.

Alibaba operates China's most popular e-shopping platform, Taobao, which has more than 500 million users.

12.07 | 0 komentar | Read More

HS2 Chairman Urges MPs To Speed Up Plans

The chairman of HS2 has called on politicians to accelerate the construction of the high-speed line to reduce the £50bn cost of the project.

In a new report, Sir David Higgins has proposed a fast-tracked building timetable for the northern, phase two, section of the highly controversial project.

Currently the scheme's first phase, which will see a new line connect London to Birmingham, is set for completion 2026.

The second phase, which will take the line in a Y-shape to the North West and North East, is due to be completed around 2032/33.

But now Sir David said building work on both phases should be started at the same time and the second phase completed six years earlier than planned - by 2027.

In addition, he said the line should stretch 43 miles further north than planned, to a new transport hub at Crewe in Cheshire.

He also proposed a brand new station at London Euston, but added that plans to link HS2 with HS1, the London to Kent Channel Tunnel high-speed rail link, should be reconsidered.

Sir David believes that speeding up the project would help keep costs under control because it will reduce uncertainty and limit the impact of inflation.

The current whole-line cost, including contingencies, is £42.6bn, with £7.5bn for the trains.

Mr Cable supports Sir David's proposals because of 'economic benefits'

Business Secretary Vince Cable expressed support for Sir David's proposals, saying there was clearly a "compelling argument" for speeding up the project.

In an interview with The Observer, the Liberal Democrat said: "Creating jobs outside London, and closing the gap between north and south, has been one of this Government's top priorities.

"On every visit I make to the north of England, I've heard businesses and council leaders make a compelling case for getting to the north more quickly by accelerating parts of the HS2 build.

"That would ensure the economic benefits can be shared sooner by everyone around the country and deserves serious consideration by government."

But shadow chancellor Ed Balls is concerned about the costs with other former Labour grandees expressing reservations about the scheme.

Last week, Mr Balls said Sir David needed to show that costs "have come down markedly".

Anti-HS2 groups have also cast doubt on the possibility of bringing forward the phase 2 work while the revamped Euston plan was seen as merely bringing "more wealth and work into London".

12.07 | 0 komentar | Read More

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

RBS Delays AGM Over Dividend Share Talks

By Mark Kleinman, City Editor

Royal Bank of Scotland (RBS) is to delay its annual shareholder meeting by several weeks as it seeks to cancel a special Government-owned share that prevents it paying dividends.

Sky News has learnt that RBS has decided to hold its 2014 AGM in late June amid advanced talks between the Treasury and the European Commission about the fate of the so-called Dividend Access Share (DAS).

Last year's AGM took place in May, while the event was traditionally held as early as April.  The decision by directors of RBS to delay the 2014 meeting was taken in the last few days.

The DAS was put in place as part of the £45.5bn taxpayer bail-out of RBS in 2008, and removing it would be a crucial step on the bank's long journey back to normality.

Doing so, however, will not be cheap for the state-backed lender.

The DAS, which confers enhanced dividend rights on RBS ahead of ordinary shareholders, was valued in the Treasury's books on March 31 last year at just under £1.5bn.

People close to the talks between the Treasury and Brussels said there was a realistic chance that an agreement could be reached by the end of June about the terms under which the DAS could be bought out without breaching state aid rules.

The cancellation of the DAS requires a vote that would only involve RBS's minority shareholders because of its status as what is known as a related-party transaction, meaning that the Government cannot vote on it.

The value of the DAS fluctuates based on a range of market data, including the RBS share price, the expected volatility of the stock over various time periods and the riskiness of the B-shares in RBS owned by the Government.

RBS's shares closed on Friday at 299.5p, suggesting that the cost of cancelling the DAS could be recorded at a lower level at the end of the month than it was last year.

That is because the cost reduces as RBS's share price rises, with a provision for cancelling the DAS altogether if the market price of RBS's ordinary shares exceeds 650p for at least 20 out of 30 consecutive trading days.

"The theoretical valuation does not necessarily reflect the price RBS would be prepared to pay to remove the DAS," the Treasury said in its annual report last year.

The DAS effectively acts as a block on dividend payments to ordinary investors because at least £1.8bn must be paid to the Treasury before any payout to other shareholders can take place.

Ross McEwan, the new RBS chief executive, is keen to resolve the issue of the DAS and said last month that "discussions with the UK Government...are well-advanced. A successful restructuring of the DAS will represent a significant step towards the normalisation of RBS's capital structure".

Insiders cautioned that the delay to the AGM did not offer a guarantee that the outstanding issues could be resolved in time and it remained uncertain whether the DAS-related resolution would be put to a vote on the same day.

The intention to do so is designed to avoid the cost of staging a separate investor meeting on another date.

Even if there is a vote on the DAS in June, the payment of the cancellation fee might not take place until ordinary dividends start being paid again.

With RBS not forecast to be profitable until 2016 and regulatory approval required for a resumption in dividend payments, that could mean the Treasury faces a three-year wait for the money.

News of the AGM delay comes weeks after Mr McEwan unveiled an annual loss of £8.2bn for 2013, and announced plans for an overhaul of RBS to focus it more clearly on improving service to personal and small business customers.

Delaying its AGM will also provide RBS with more time to resolve an issue that has provoked significant debate in Westminster: whether it should seek shareholder approval to pay out higher bonuses under new European rules.

Ed Miliband, the Labour leader, has demanded that the Government should block any attempt by RBS executives to secure approval for payments of up to twice the level of employees' salaries in bonus awards.

Mr McEwan has said that RBS needs the ability to pay competitively, implying that the bank will seek approval for the higher threshold, since every one of its rivals has said that they intend to do the same.

RBS declined to comment.

12.07 | 0 komentar | Read More