Vast Food: Restaurants Urged To Cut Portions

By Poppy Trowbridge, Consumer Affairs Correspondent

Restaurants should cut portion sizes or charge more for large servings to help reduce food waste and fight obesity, experts have said.

The Chartered Institute of Environmental Health said the measures would also mean significant savings for food outlets and catering firms.

Jenny Morris, policy officer at the professional body for environmental and public health, told Sky News: "Many of us eat too much.

"The portions we expect to see are too big.

"It seems obvious to me, that an easy solution is to only produce the amount of food that is going to be consumed or that is needed."

She also added that there was some rationale for restaurants to charge a premium for large servings, in a bid to combat rising obesity rates.

Campaigns have sought to encourage consumers to cut back on food waste for years, but the CIEH says the industry itself must drive the changes.

Anthony Worrall Thompson says 97p per customer is lost in food waste

"I think that it is business that needs to lead on it because it is business that is in control," Ms Morris said.

"It hasn't always been the focus up until now."

While big business has begun to measure appropriate portion sizes and reduce food waste, the majority of Britain's food businesses are missing out.

Ms Morris said small and medium-sized restaurants could save hundreds of pounds a week by simply reducing how much meat and produce is wasted.

Celebrity chef Anthony Worrall Thompson estimates that 97p per customer is lost in food waste.

"When you add that amongst the thousands of customers we have every year, it's a huge amount of money," he said.

Recycling body WRAP estimates the cost of food being wasted in the UK from the hospitality and food service sector will reach £3bn per year by 2016.

Ms Morris said: "We are in a very privileged situation at the moment where food is relatively cheap. It won't be in the future.

"It doesn't matter whether a business is small or large, it can save a lot of money." 

12.06 | 0 komentar | Read More

Vauxhall Recall: Warning Over Corsa Steering

Vauxhall has warned owners of around 3,000 models to stop driving their vehicles until they have been inspected because of a steering problem.

The UK carmaker said the affected vehicles are Adam and Corsa/Corsavan models registered since May 2014, which had been manufactured with a steering system part "that did not meet specification".

The discovery was made during a routine quality control exercise at two of the firm's manufacturing plants - one in Germany and one in Spain.

The company said it was not aware of any accident or injury related to the issue.

Vauxhall said: "As a precaution, these vehicles should not be driven prior to inspection.

"Vauxhall puts the safety and convenience of its customers first and as this condition concerns their safety, the company is taking immediate action."

The firm said customers could check on their website from today, whether their vehicle was affected, and that it would also contact buyers directly.

It added: "Alternatively customers can call the Vauxhall customer assistance centre for advice on 0800 026 0034 between 9am and 5.30pm."

12.06 | 0 komentar | Read More

Low Fare? The £23.7bn Cost Of Return Flight

By James Sillars, Sky News Business

A would-be holidaymaker has spoken of her shock after an online travel agency almost charged her a whopping £23.7bn for two return flights to Portugal.

Marion Sessions, who owns and runs two holiday cottages in Derbyshire with her husband, was about to click 'proceed' on the eDreams website for flights from Birmingham to Faro for them when she noticed the return baggage check-in cost.

She told friends on Facebook: "How's this for a great price?

"I have just tried to book cheap flights... for a weekend trip to stay with some good friends.

"I Googled 'cheap flights to Faro', found eDreams ('Great Trips at Great Prices' is their slogan) were offering the best, with Ryanair and Monarch Airlines, at a cost for the two of us of £164.07.

"I duly booked and fortunately was alert enough to realise - before clicking 'confirm' that the final cost was the truly - as advertised - great price of £23,659,382,125.95!!!"

She added: "Don't think our current account would have run to it this month..."

Neither Ryanair nor Monarch are responsible for eDreams' pricing or booking processes.

This is not the first time eDreams has come under pressure on an issue of price.

In February, research by Which? suggested travellers booking flights or holidays with the company could face additional service charges of up to 25% of the headline ticket price.

MoneySupermarket.com reported last year that easyJet had referred eDreams to regulators, claiming it was overcharging customers for tickets on its flights.

Mrs Sessions, who has written a blog on her experience, told Sky News: "I thought i must have made a mistake.

"I couldn't believe my eyes but it was so lucky I noticed the final price.

"I shudder to think what may have happened had I agreed... I tried to contact them but there was an out-of-hours message."

A spokeswoman for Spain-based eDreams told Sky News: "eDreams would like to apologise to Mrs Sessions for any inconvenience caused.

"We are continuing to investigate, however it appears to be an isolated incident that we have been unable to replicate.  If it is a bug, we will find it and make every effort to fix it immediately.

"eDreams would like to re-iterate that at no point was there any attempt to make this purchase. We would also like to provide the added re-assurance that any attempt at a transaction of this size would automatically be rejected by our systems and unable to proceed."

12.06 | 0 komentar | Read More

Wonga Profit Slumps After Disastrous Year

By Mark Kleinman, City Editor

Wonga saw its profits slump last year amid trading difficulties in its overseas and small business operations, underlining the task facing its new boss to improve the payday lender's performance.

Sky News has learnt that Wonga is expected to publish annual results for 2013 showing a slump in pre-tax profits from £84.5m last year to roughly £50m in 2013, a source close to the company said.

The period covered by Wonga's results is understood to pre-date the scandal triggered earlier this summer when it emerged that the company had invented a number of law firms in order to pursue customers for unpaid debts.

The episode prompted Wonga to agree with financial regulators to pay at least £2.6m to compensate 45,000 customers for sending them letters from non-existent firms such as Barker and Lowe and Chainey, D'Amato and Shannon.

Wonga's disclosures next week are expected to include a big one-off exceptional charge - possibly running to tens of millions of pounds - to cover legal and regulatory costs related to the fake legal letters scandal, although it is unclear which year the charge will be applied to its accounts.

The controversy marked a nadir for Wonga's reputation, and prompted the company to recruit Andy Haste, a respected City figure, as its executive chairman with a brief to clean up the company's affairs.

Mr Haste will be paid £500,000 a year during an initial period while Wonga seeks a permanent chief executive, after which his annual salary will be reduced to £300,000.

A new chief financial officer is expected to be appointed in the coming days, while Mr Haste has also hired a former RSA colleague, Tara Kneafsey, to run its UK business.

Wonga's small and medium-sized business-lending arm, Everline, is thought to be losing money, as are some of the company's international operations.

Its accounts are also expected to show that Wonga bought back around 2.5m shares from Errol Damelin, the founder who stepped down as chairman earlier this year.

"I want to ensure that the business operates responsibly while providing an effective and reliable service for our customers. I have a clear mandate from the shareholders in Wonga to lead that process, both in the UK and across our international operations," Mr Haste told Sky News in July.

"I have asked all the questions I can think of asking, and I believe I've been made aware of everything," he said.

"Time will tell whether that's the case."

The fall in profits in 2013 may be repeated this year, according to company insiders, because of continued underperformance in parts of Wonga's business.

The City regulator is also bearing down on providers of short-term credit, proposing in July a cap on payday lending meaning that from next January, interest and fees must not exceed 0.8% per day of the amount borrowed.

The Financial Conduct Authority is also imposing a cap on the overall cost of a payday loan so that it cannot exceed 100% of the original sum borrowed.

Asked about Wonga's 2013 results, Damian Peachey, a Wonga spokesman, said the company did not comment on "rumour and speculation" and would not confirm that next week's announcement would cover 2013's audited numbers alone.

He added that Wonga wanted to release its results "in a democratic way".

Last year, the company launched an initiative called OpenWonga, aimed at increasing transparency with stakeholders.

12.06 | 0 komentar | Read More

GSK To Name RBS's Hampton As Next Chairman

By Mark Kleinman, City Editor

GlaxoSmithKline (GSK), Britain's biggest pharmaceuticals company, will this week name Sir Philip Hampton as its next chairman, just days after it was fined nearly £300m for bribery by Chinese authorities.

Sky News has learnt that GSK will announce the appointment of Sir Philip as chairman-designate before the weekend, triggering a separate statement from Royal Bank of Scotland (RBS), where he has chaired the board since its taxpayer bailout in 2008.

Sir Philip, one of the UK's leading business figures, is expected to join GSK's board as a non-executive director around the turn of the year before taking over from Sir Christopher Gent sometime after the general election in May.

In a statement issued to Sky News on Wednesday, a GSK spokesman said: "Succession planning for the chairman is well underway."

The confirmation of Sky News' disclosure that Sir Philip was the leading candidate to replace Sir Christopher is likely to be welcomed by GSK investors, who are keen for the company's board to be strengthened with greater corporate experience.

A former finance director of BT, Sir Philip has also held the same role at British Gas and British Steel.

The process of recruiting a new chairman at GSK has been complicated by RBS's need to appoint a successor to Sir Philip, who is likely to want to know which party will form the next government given the state's majority stake in the bank.

Parachuted in alongside Stephen Hester shortly after the bank's £45.5bn taxpayer rescue in early 2009, Sir Philip will mark his sixth anniversary at RBS next February.

He has said repeatedly that company chairmen should look to serve for between five and seven years, although colleagues say he is unlikely to leave RBS until his successor is in place.

Sky News revealed last month that RBS's board had hired Egon Zehnder International, a headhunter, to identify its next chairman.

The Government remains years away from a full privatisation of its majority stake in the bank, while RBS faces uncertainty from a UK competition inquiry and regulatory probes covering alleged manipulation in foreign exchange markets.

Nonetheless, Sir Philip's in-tray at GSK could prove to be only slightly less challenging than the one with which he has been confronted during his RBS tenure.

One of his most important tasks at the drug-maker will be to identify a successor over the long term to Sir Andrew Witty, the chief executive, who apologised last week for GSK's misdemeanours in China.

The company's shares have also suffered, having warned on profits during the summer as the company seeks new blockbuster products to offset a decline in sales of Advair, its best-selling asthma medicine.

Mark Reilly, the former head of GSK's operations in China, was handed a three-year suspended jail term by Chinese prosecutors for bribing doctors to prescribe GSK products.

He will be deported back to the UK following his trial.

12.06 | 0 komentar | Read More

Apple 'Pulls Back' iOS 8 Update Due To Flaws

New iPhone Selling For Thousands In China

Updated: 12:17pm UK, Tuesday 23 September 2014

Consumers in China are willing to pay as much as £2,000 to get their hands on a new iPhone 6.

The latest phone from Apple is not yet available in China, despite being made there, but that has not stopped the most dedicated of consumers from trying to buy from overseas sellers.

Sky News has seen numerous posts on Chinese social media websites where the phones are being sold at massive premiums.

One phone, apparently bought in Hong Kong, is now being advertised on China's Taobao marketplace for RMB19,500 (£1,950). Another appears to have been bought in Britain and shipped out to China for re-sale.

A standard iPhone 6 retails at £539 in the UK without a contract, and is as little as £99 with a contract.

The border between China and Hong Kong has been a smuggling route for centuries. The trade was once opium and weapons, but now it is phones.

Over the past three days, 600 iPhone 6 handsets have been seized by customs in the southern Chinese city of Shenzhen, having been smuggled over the border with Hong Kong.

According to the China's Guangzhou Daily newspaper, smugglers had hidden the phones in boxes of tea, coffee and toothpaste.

The iPhone 6 has not yet been given a launch date in mainland China because the telecoms authorities are yet to give it a licence.

But even without access to the Chinese consumer market, Apple still managed to sell 10 million of the new handsets globally in one weekend alone.

Tim Cook, Apple's chief executive, said: "Sales for iPhone 6 and iPhone 6 Plus exceeded our expectations for the launch weekend, and we couldn't be happier."

The first batch of iPhones was only available in the US, Japan, Australia, Singapore, Hong Kong, Canada, France, Germany and the UK. The limited release has caused mayhem among the Apple faithful.

In Japan, the release marked the first time that iPhones were sold without a SIM lock. This prompted dozens of Chinese buyers to fly to Japan and queue outside Japanese Apple stores.

At one Apple store in the city of Osaka, police were called after Chinese customers' anger boiled over when the store ran out of the phones.

An Apple representative in Beijing refused to comment on the unofficial market and would not confirm when the phone would be released in China. 

12.06 | 0 komentar | Read More

Singaporean Fund Revs Up £2bn RAC Takeover

By Mark Kleinman, City Editor

A Singaporean state fund is in secret talks to lead a £2bn-plus takeover of the RAC, a move that would end the prospect of a stock market listing of the famous roadside recovery business.

Sky News can reveal that the Government Investment Corporation of Singapore (GIC) is discussing with Carlyle, the RAC's existing owner, a deal that could be struck within days.

GIC is understood to have been interested in participating in a takeover of the RAC, which has 8.2 million members, for some time, having been enticed by the company's stable cashflows and growth prospects, according to a person close to the situation.

The precise structure of a deal had not been finalised on Tuesday, and it was unclear whether GIC wanted to buy the motoring organisation, whose heritage dates back to the late 19th Century, on its own or in conjunction with other investors.

CVC Capital Partners, the biggest shareholder in Formula One motor racing, is also understood to have expressed interest in buying the RAC.

An insider said it was possible that GIC would instead take a large minority stake in the RAC ahead of an initial public offering (IPO).

GIC, which manages assets worth tens of billions of pounds, is one of the world's largest sovereign wealth funds, and has become one of the most prolific Asian investors in the UK.

The fund was among a group of controversial so-called priority investors in Royal Mail when it was privatised almost a year ago, while it also owns shares in other listed UK companies such as SSP, the catering group.

Insiders said that RAC's board would meet in the coming days to decide whether to press the button on a stock market listing or pursue a sale.

The AA, its larger rival, reported half-year results on Tuesday which sent its shares up by 4%.

A flotation has been seen as the likeliest exit route for Carlyle, with more than a handful of investment banks lined up to lead a listing and a new board of heavyweight directors appointed last month.

Sky News revealed in August that Sir Mike Rake, the CBI president and chairman of BT Group, was to become the RAC's new chairman, replacing Rob Templeman, the prominent businessman who earned windfalls by turning around retailers including Debenhams and Homebase.

The RAC's chief executive is Chris Woodhouse, with whom Mr Templeman worked at Debenhams.

Aviva sold the RAC in 2011 to focus on its core insurance operations but was widely regarded to have undervalued the RAC by offloading it for £1bn.

Last November, the RAC paid its owners a £163m dividend, while the company made £142m in pre-tax profit last year, almost double its 2010 earnings.

The RAC and CVC declined to comment while GIC could not be reached.

12.07 | 0 komentar | Read More

Pubs And Bars Slash Prices In VAT Cut Campaign

Thousands of pubs, bars and restaurants will slash their prices today as part of a campaign to cut VAT.

Tax Equality day - which will see 15,000 establishments reduce the price of food and drink by 7.5%, has been launched to show the benefits of cutting VAT.

Jacques Borel, the man behind the campaign, has managed to get VAT cuts in a number of European countries, including France, Germany, Belgium and Finland.

"Our message is clear - a reduction in the level of VAT on a long-term basis will generate growth and create jobs in the important leisure and hospitality sector," he said.

"At present all food and drink in pubs is subject to 20% VAT, compared to supermarkets which benefit from a zero VAT rate."

A Treasury spokesperson said: "We are committed to supporting the leisure and hospitality industry and have cut the tax on a typical pint of beer by one penny at Budget 2013 and by a further one penny at Budget 2014, making a pint of beer 8p cheaper than under inherited duty plans.

"We are also providing additional support to businesses in a number of ways.

"For example, from April 2014 businesses and charities have been able to benefit from up to £2,000 off their employer national insurance contributions bill and over £1bn of business rates support has been provided."

12.06 | 0 komentar | Read More

Tesco Profit Error: Could Something Be Amiss?

By Ian King, Business Presenter

Even from a lesser company, three profits warnings inside a year would be startling.

Coming from a blue-chip stalwart like Tesco, it is nothing short of astonishing.

In issuing a profits warning on top of a profits warning, Britain's biggest food retailer almost seems to be taking to an extreme the strategy so commonly seen in its stores, with three for the price of two.

So what exactly has Dave Lewis, the new chief executive, uncovered?

Well, in its own words, Tesco has identified an overstatement of its expected profit for the half year, principally due to the accelerated recognition of commercial income and delayed accrual of costs.

In other words, the reporting of costs incurred in the first half of the year appears to have been delayed so they are pushed into the second half, while profits enjoyed during the second half of the year appear to have been brought forward into the first half.

Mr Lewis' response indicates there may be more to this mistake

It is unclear what kind of activities generated these profits but commercial income, with regard to supermarkets, could mean rebates from third-party suppliers or payments from those suppliers to incentivise Tesco to give their goods better positions when they are displayed in its stores.

This latter practice is common place in the supermarket sector and, having worked previously at Unilever, Mr Lewis will be familiar with it.

The overall effect of these two actions will have been to pretty up Tesco's first-half numbers.

Cynics will suggest Mr Lewis has every reason to restate the numbers lower - after all, the period, the six months to August 23, was when his predecessor, Philip Clarke, was at the helm.

Some would say it is in Mr Lewis's interests to ensure that period is painted in as bad a light as possible in order to make any subsequent turnaround under him look better.

Tesco shares have fallen over 40% in the last year

It's known as "kitchen sinking" in the City - where every possible bad bit of news, including the proverbial kitchen sink, is thrown into the accounts to make them look bad.

But the sheer size of this overstatement, £250m, would suggest this is a bit more serious.

So is Mr Lewis' response: the suspension of four of Tesco's UK executives, his recruitment of the top City lawyers Freshfields to investigate and his hiring of outside auditors from Deloitte - Tesco's regular auditor is PwC - to examine what has happened.

At this time, there is no suggestion that anything illegal has been happening. After all, all businesses occasionally recognise revenues early or take their time to recognise costs in the accounts.

Yet the sheer aggression of the accounting policy in this instance and Mr Lewis' response to discovering it rather suggests he thinks something may be amiss.

And, with plenty of American investors - who tend to be more litigious than their European counterparts - on Tesco's shareholder base,  he is doing the prudent thing in checking this out as thoroughly as possible.

12.06 | 0 komentar | Read More

Tesco Suspends Bosses Over £250m Profit Error

Tesco Profit Error: Could Something Be Amiss?

Updated: 5:42pm UK, Monday 22 September 2014

By Ian King, Business Presenter

Even from a lesser company, three profits warnings inside a year would be startling.

Coming from a blue-chip stalwart like Tesco, it is nothing short of astonishing.

In issuing a profits warning on top of a profits warning, Britain's biggest food retailer almost seems to be taking to an extreme the strategy so commonly seen in its stores, with three for the price of two.

So what exactly has Dave Lewis, the new chief executive, uncovered?

Well, in its own words, Tesco has identified an overstatement of its expected profit for the half year, principally due to the accelerated recognition of commercial income and delayed accrual of costs.

In other words, the reporting of costs incurred in the first half of the year appears to have been delayed so they are pushed into the second half, while profits enjoyed during the second half of the year appear to have been brought forward into the first half.

It is unclear what kind of activities generated these profits but commercial income, with regard to supermarkets, could mean rebates from third-party suppliers or payments from those suppliers to incentivise Tesco to give their goods better positions when they are displayed in its stores.

This latter practice is common place in the supermarket sector and, having worked previously at Unilever, Mr Lewis will be familiar with it.

The overall effect of these two actions will have been to pretty up Tesco's first-half numbers.

Cynics will suggest Mr Lewis has every reason to restate the numbers lower - after all, the period, the six months to August 23, was when his predecessor, Philip Clarke, was at the helm.

Some would say it is in Mr Lewis's interests to ensure that period is painted in as bad a light as possible in order to make any subsequent turnaround under him look better.

It's known as "kitchen sinking" in the City - where every possible bad bit of news, including the proverbial kitchen sink, is thrown into the accounts to make them look bad.

But the sheer size of this overstatement, £250m, would suggest this is a bit more serious.

So is Mr Lewis' response: the suspension of four of Tesco's UK executives, his recruitment of the top City lawyers Freshfields to investigate and his hiring of outside auditors from Deloitte - Tesco's regular auditor is PwC - to examine what has happened.

At this time, there is no suggestion that anything illegal has been happening. After all, all businesses occasionally recognise revenues early or take their time to recognise costs in the accounts.

Yet the sheer aggression of the accounting policy in this instance and Mr Lewis' response to discovering it rather suggests he thinks something may be amiss.

And, with plenty of American investors - who tend to be more litigious than their European counterparts - on Tesco's shareholder base,  he is doing the prudent thing in checking this out as thoroughly as possible.

12.06 | 0 komentar | Read More

Miliband Sets Out Plan For £8 Minimum Wage

Labour leader Ed Miliband has pledged to raise the national minimum wage to at least £8 an hour if he becomes Prime Minister.

The minimum wage is due to rise from £6.31 an hour to £6.50 on October 1, but Mr Miliband plans to add £1.50 an hour on to that by 2020.

His increase would add around £60 a week, or £3,000 a year, to the pay packets of workers currently on the minimum wage.

And he said the rise would save the taxpayer "hundreds of millions of pounds" in welfare payments.

One in five UK workers - more than five million people - are categorised as being on low pay, defined as wages of less than £7.71 an hour.

Speaking to the Sunday Mirror, Mr Miliband said: "Too many working people have made big sacrifices but in this recovery they're not seeing the rewards for their hard work because, under the Tories' failing plan, the recovery is benefiting a privileged few far more than most families.

"One in five of the men and women employed in Britain today do the hours, make their contribution, but find themselves on low pay.

"But if you work hard, you should be able to bring up your family with dignity."

A Burger King worker was the inspiration for Labour's latest policy

Mr Miliband added: "This week Labour's Plan for Britain's Future will show how we can change and how we can become a country that rewards hard work once again. Because Labour is the party of hard work, fairly paid."

The announcement came on the eve of Labour's annual conference in Manchester - the last before next year's general election.

Mr Miliband said he was inspired to bring in the hike after meeting a woman who worked in Burger King.

He said: "She had worked there for six years and I think she was number two there, but was paid just above the minimum wage.

"She said, 'It's incredibly hard for me. I live three miles away. I can't afford a car and there aren't many buses. I often have to take a taxi. That's where my wages go.'"

Mr Miliband added: "It's just so ­grindingly hard, and it's time we stood up for people doing these hours."

The planned increase, which would affect around 1.4 million jobs, would be introduced in annual stages by the Low Pay Commission before October 2019.

The promised rate is said to be similar to that in force in Australia and EU countries such as Belgium and Germany, but still lower than in France and New Zealand.

Mr Miliband told the BBC's Andrew Marr show: "I can assure you, it doesn't cost money, it saves money. It saves hundreds of millions of pounds in getting the welfare bill down."

12.06 | 0 komentar | Read More

Balls To Freeze Child Benefit To Balance Books

Real-terms cuts in child benefit will form part of Labour's plan to balance the country's books, shadow chancellor Ed Balls will say at the party's conference.

Mr Balls will present a 1% cap on rises for the first two years of a Labour government as one of the "tough decisions" necessary to deal with the deficit if the party takes power next year.

In a speech in Manchester today, Mr Balls will pledge to "change the way our economy works" and to "not flinch from the tough decisions we must make".

He will say: "Three years of lost growth at the start of this parliament means we will have to deal with a deficit of £75bn  - not the balanced budget George Osborne promised by 2015. And that will make the task of governing hugely difficult.

"People know we are the party of jobs, living standards and fairness for working people. But they also need to know that we will balance the books and make the sums add up and that we won't duck the difficult decisions we will face if they return us to government.

"Working people have had to balance their own books. And they are clear that the Government needs to balance its books too."

Mr Balls will say a cap in child benefit rises will save £400m

Under austerity measures introduced by the coalition, child benefit was frozen from 2010 to this year.

It rose by 1% in April and is due to rise by the same amount in 2015/16, but Mr Balls will commit to extending below-inflation hikes for at least one more year.

He will tell delegates: "We will not spend money we cannot afford. So for the first two years of the next parliament we will cap the rise in child benefit at 1%.

"It will save £400m in the next parliament. And all the savings will go towards reducing the deficit."

Other elements of the Labour party's plans for the economy include cutting pay for ministers by 5%, reintroducing the 50p top rate of income tax for those earning more than £150,000, and ending the winter fuel allowance for the richest 5% of pensioners.

A 5% cut in ministerial salaries is also on the cards

The party also has plans to raise the minimum wage to £8 an hour, and introduce a jobs guarantee for young people and the long-term unemployed funded by a tax on bank bonuses and limiting pensions tax relief for the highest earners. 

Treasury Exchequer Secretary Priti Patel poured scorn on Mr Balls' plan for the economy, claiming Labour would put the deficit up, not down.

"These savings on ministerial pay only cut a miniscule fraction of the deficit - less than 1% of 1&. And it comes just days after the Institute for Fiscal Studies said Labour's economic policy means £28bn extra borrowing," he said.

"For all his bluster, Ed Balls still refuses to admit that Labour spent too much and he's opposed every decision we've taken to cut the deficit. All a Labour government would offer is more inefficient spending, more taxes and more debt than our children could ever hope to repay.'

12.06 | 0 komentar | Read More

Richard Branson Tops 'Most Admired' Boss Poll

Branson's Virgin To Pilot New Cruises Venture

Updated: 1:16pm UK, Friday 28 February 2014

By Mark Kleinman, City Editor

Sir Richard Branson is drawing up plans for a secret assault on the international cruises sector which will involve raising hundreds of millions of pounds in funding from external investors.

Sky News can reveal that Virgin Group has appointed the US-based corporate advisory firm Allen & Co to oversee the development of a cruise operation that would eventually aim to compete with industry giants including Carnival Corporation.

Virgin has been working with Allen & Co on a range of potential opportunities across the wider leisure sector, including an investment in a four-star city centre concept called Virgin Hotels.

The development of Virgin Cruises, which is expected to be the name of the new venture, is at an early stage, people close to the project cautioned on Friday.

However, Virgin executives and their advisers have already held detailed talks with banks about raising an estimated $1bn (£598m) of debt to finance the acquisition of the company's first vessels.

They also want to raise in the region of $700m (£418m) of equity by selling stakes in Virgin Cruises to outside investors.

Sir Richard and Josh Bayliss, chief executive of Virgin Management, are understood to believe the global cruises sector possesses many of the same characteristics which have led Virgin to build a significant presence in sectors such as aviation, rail and mobile telecoms.

The cruise market is dominated by fewer than a handful of companies, such as the FTSE-100 group Carnival, Royal Caribbean and Norwegian. Between them, the three companies have a global market share of approximately 80%.

"Cruises is a classic Virgin market, dominated by two or three players and where the product needs to be refreshed," an insider said.

The industry is forecast by Cruise Market Watch, an industry research group, to grow from 21.5 million passengers this year to 22.2 million passengers carried worldwide in 2015.

Virgin Cruises is expected to be headquartered in the US, reflecting North America's status as the world's biggest cruise market, the source said.

Globally, the industry is likely to generate revenue of $37.1bn (£22.2bn) this year, a 2.3% increase on 2013.

The plans for the launch of Virgin Cruises emerge as Sir Richard targets a flotation of his domestic US airline, Virgin America.

The carrier, which recently undertook a debt restructuring covering roughly $300m (£179.8bn) of borrowing obligations, has hired investment banks to prepare the listing.

A successful flotation of Virgin America would echo the model used several times by Sir Richard to take some of his business ventures, such as Virgin Mobile, to the public markets.

He has also frequently sold stakes in his companies to outside investors, including the sale of shares in Virgin Money, his banking operation, to an entity in Abu Dhabi and Wilbur Ross, a prominent US investor.

Other plans involving Virgin companies this year include the opening of the first City Centre hotel in Chicago in the autumn, with other venues expected in US cities served by the group's airlines.

The plan to break into the cruises market comes weeks after the publication of a new biography of Sir Richard by the author Tom Bower.

Mr Bower claimed the company's maiden flight of its space tourism venture was facing further delays, while Virgin insists it is on track to take off this year.

A Virgin spokesman declined to comment.

:: Watch Sky News live on television, on Sky channel 501, Virgin Media channel 602, Freeview channel 82 and Freesat channel 202.

12.06 | 0 komentar | Read More

Miliband Sets Out Plan For £8 Minimum Wage

Britain 'Can Afford' To Increase Minimum Wage

Updated: 9:25am UK, Friday 17 January 2014

Britain can afford to increase the amount its lowest-paid workers earn, the Chancellor has announced.

George Osborne said an above-inflation rise in the national minimum wage - currently set at £6.31 an hour - would "secure a recovery for all".

He has not revealed how much the wage could increase by, although he said it would need to rise by more than 10% to £7 an hour to match improvements to the economy.

"I believe Britain can afford an above-inflation increase in the minimum wage, so we restore its real value for people and make sure we have a recovery for all and that work always pays," he told the BBC.

Prime Minister David Cameron has also said the Conservatives have taken "difficult decisions" to "fix the economy" and could now afford to put "more money in people's pockets".

However, Labour accused Mr Osborne of "flailing around under pressure", while a Liberal Democrat source said the Chancellor had "dragged his feet" on making an announcement.

Chris Leslie, the Labour Treasury spokesman, said: "The Tories cannot hide from the fact that working people are on average £1,600 a year worse off since they came to office.

"We need action now to earn our way to higher living standards and tackle the cost-of-living crisis."

Any increase to the minimum wage would be recommended by the Low Pay Commission (LPC), which talks to businesses and looks at economic data before suggesting a rate.

The LPC, which is independent and overseen by Business Secretary Vince Cable, reviews rates each year and reports to the Government in February.

 It has been handed the Government's latest analysis on jobs and the economy ahead of its report next month.

The Government sets the rate based on the LPC's recommendation, with HM Revenue & Customs handling enforcement. 

An increase to the minimum wage would likely take effect in the autumn.

The Federation of Small Businesses backed an increase to the minimum wage but said it should rise by no more than the rate of inflation - currently 2%.

Its national chairman John Allan said: "The Low Pay Commission will recognise that in some industries, such as retail and social care, small businesses operate very fine margins and are still struggling with rising costs in areas such as utilities and business rates.

"At the same time, the recovery remains on a fragile footing in certain regions of the UK."

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