Tories To Freeze Train Fares For Five Years

Rail fares will be frozen in real terms for five years if the Tories win the General Election, David Cameron has pledged.

The Prime Minister said extending the Retail Price Index inflation cap on regulated ticket prices until 2020 would save the average commuter £400.

The coalition has imposed the same restrictions for the past two years, and also removed the "'flex" train that allowed operators to increase some fares by more than inflation as long as others went up by less.

According to the Conservatives, the policy means commuters are already paying £75 less than they would have been.

The announcement is part of an effort to blunt the Labour attack over the cost of living, and accusations that most people are not benefiting from the economic recovery.

Video: Prime Minister Explains Fare Rises

Mr Cameron, who is campaigning in the south west today, said: "The cost of commuting is one of the biggest household bills that hardworking families face and it is something we are determined to bear down on.

"It shouldn't just be taken for granted that people across the country who get up early and come home late, spend a large amount of the money they earn travelling to and from work.

"Because of the difficult decisions that we have taken to repair the economy, we have been able to hold down commuter fares for the past two years.

Video: Passengers Want 'Value for Money'

"If elected in May, we would freeze them in real terms for the next five."

But Mick Cash, leader of the Rail, Maritime and Transport union, said: "This latest stunt would still mean annual fare increases that would institutionalise the harsh reality that the British passenger pays the highest fares in Europe to travel on rammed out and unreliable trains.

"The only solution is to end the rip off of rail privatisation which would allow us to free up the hundreds of millions of pounds drained off in profits to invest in services and cut fares."

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M&S Sourcing Chiefs Set For Lavish Payday

By Mark Kleinman, City Editor

Two brothers hired to boost the efficiency of Marks & Spencer's (M&S) clothing business are in line for multimillion pound paydays which could make them the company's best-paid employees over a three-year period.

Sky News can reveal that Mark and Neal Lindsey, who were recruited just over a year ago, will receive a fixed proportion of the savings generated by the improvement in M&S's gross margin, in addition to basic salaries of £400,000 each.

The retailer said earlier this month that it remained on course to record a gross margin improvement of between 150 and 200 basis points, which analysts say would translate into an increase in profits worth tens of millions of pounds.

Sources said on Friday that the Lindseys had been hired on a three-year contract, with one adding that while their payout for 2014-15 would be substantial, it was likely to be far higher in the subsequent two years.

M&S refused to disclose the brothers' remuneration arrangements to Sky News because they are not on the company's main board.

However, company insiders said that their financial rewards would be aligned with the long-term interests of M&S shareholders, who have been boosted by third-quarter results showing the first improvement in general merchandise sales for more than three-and-a-half years.

One person close to the retailer insisted that the Lindseys would not be the highest-paid M&S employees for 2014-15, but conceded that their bonuses were directly tied to margin improvements in the general merchandise business.

A number of institutional shareholders have told Sky News that while they welcomed greater efficiency within the business, they were keen to understand the potential scale of the rewards that could accrue to them over the duration of their contract.

Unlike at banks and insurance companies, listed businesses in other sectors are not obliged to disclose - even anonymously - the remuneration of their most highly-paid employees.

The two sourcing chiefs were lured out of semi-retirement by M&S after an impressive track record as the architects of rival Next's widely-envied supply chain.

As the Hong Kong-based sourcing directors for general merchandise, the Lindseys have specific responsibility for clothing and footwear, overseeing M&S's network of regional sourcing offices around the world and its large London-based central sourcing team.

Although little-known in the UK, they played an important role in assisting Next's rise to prominence on the high street and its establishment as a darling of the City.

Speaking on 2 April, Marc Bolland, M&S's chief executive, said: "We have made strong progress over the quarter.

"We continued to deliver on General Merchandise gross margin, and are pleased that we have achieved this whilst also improving General Merchandise sales.

"M&S.com has returned to growth, as planned, with further improvement in customer metrics."

M&S shares were trading at just over 574p on Friday afternoon, giving the company a market value of £9.3bn.

The shares are up by 30% over the last 12 months.

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HSBC Tax Scandal: France Starts Criminal Probe

HSBC has expressed outrage at being placed on €1bn bail amid a criminal investigation in France into historical tax issues.

The UK-listed bank said it was informed on Wednesday that French magistrates were examining the "conduct of its Swiss private bank in 2006 and 2007 for alleged tax-related offences."

Its statement said the court's decision is "without legal basis and bail is unwarranted and excessive".

The bank added that it intended to appeal and "defend itself vigorously in any future proceedings".

Activities at the private bank are being examined in several other countries including Germany and Argentina in the wake of the publication of stolen files.

Video: HSBC Boss 'Sorry' For Tax Scandal

The papers claimed the Swiss operation had helped clients in more than 200 countries, including Britain, evade and avoid tax.

The accounts in question were said to contain £77bn ($119bn).

HSBC chief executive Stuart Gulliver apologised earlier this year for past practices at the Swiss arm.

He and chairman Douglas Flint told a committee of MPs in February they had completed a series of reforms to help restore trust and confidence.

Video: HSBC Whistleblower Speaks Out

Argentina last month stepped up its tax evasion row with HSBC by demanding it repatriates $3.5bn (£2.32bn) of cash allegedly moved from the country to its Swiss private bank.

The country's tax authorities issued the request weeks after the Central Bank of Argentina temporarily suspended HSBC Bank Argentina's operations of transferring money and assets abroad for a period of 30 days.

Argentina accuses HSBC of aiding more than 4,000 clients to evade taxes by shifting assets offshore.

HSBC Argentina denied the claim - insisting it respected Argentine law.

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Oil Find Near Gatwick May Be 'World Class'

The estimated size of an oil find near Gatwick Airport has been upgraded to 100 billion barrels by a company backing exploration of the area.

UK Oil & Gas Investments (UKOG) said the Horse Hill-1 well in the Weald Basin was now thought to hold 158 million barrels per square mile.

In May 2014, the British Geological Survey estimated the Weald Basin to hold around 4.4 billion barrels of shale oil.

UKOG described the find as a possible "world class" resource with the potential for "significant daily oil production".

The site at Horse Hill in Sussex

The company's chairman David Lenigas claimed it would create "many thousands of jobs" but cautioned that it would take a long time to begin production. 

He said: "You've got to work through government process and to work with the local community. Everybody expects you to snap your fingers and all of a sudden the magic panacea is there. The key thing is there is a potential resource of significance here - but the fast track or slow track nature is really going to be determined by Westminster".

But Solo Oil PLC, another stakeholder in the exploration, was cautious about the potential. 

UK Oil and Gas insist there will be no fracking at Horse Hill

Solo Oil chief executive Neil Ritson told Sky News: "We're not actually putting out that number of a hundred billion barrels. I know that a leading academic - Professor Fraser at Imperial - is talking about 40 billion.

"Certainly those numbers are possible, but that's not where we are at the moment. It's early days."

The US-based firm which studied the reservoir estimated that recovery of the oil would be limited at between 3% and 15% of the total.

Local residents are concerned about damage to the countryside

It also insisted there was no need to use the controversial extraction process, known as fracking, to get access to the oil.

Mr Lenigas said:  "Horse Hill is a conventional well, with conventional testing and we've got permission from the government authorities for a conventional programme. There will be no fracking at Horse Hill."

But local campaigners believe fracking will be necessary at some point in the future.

Anti-fracking campaigner Charles Metcalfe said: "South East England is the most densely populated corner of England. To start drilling holes all over the place will completely change the nature of our countryside forever. And if the result is that you're not getting very much oil out of it, then that's awful".

Environmental group Greenpeace urged people to focus on clean technologies.

Greenpeace's chief scientist Dr Doug Parr said : "To gleefully rub your hands at a new fossil fuel discovery you need to turn the clock back to the 19th century and ignore everything we have learnt about climate change since. We already have more than enough coal, oil, and gas reserves to fry the planet".

The UK currently produces 770,000 barrels of oil per day, compared to 11.1 million in the United States and 11.7 million in Saudi Arabia.

The announcement helped shares in UKOG rise more than 300% during trading on Thursday. 

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Federal Reserve Divided Over Rate Rise Timing

By Sky News US Team

The US Federal Reserve was split at its much-anticipated March meeting on when to raise interest rates, according to minutes.

The US central bank's policymakers were torn between putting up rates in June, September, or even waiting until 2016.

Stocks rose but trading was volatile after the release on Wednesday of the minutes of last month's Federal Open Market Committee (FOMC) meeting.

Fed officials remained confident in the strength of the recovery, the minutes showed, while acknowledging risks from overseas and a weak start to the year.

"Several" participants believed the time was right for a rate rise later in the year, the minutes said.

New York Fed President William Dudley said at a media event: "I could imagine circumstances where a June rate hike could still be in play.

"If the economy's strong, the unemployment rate is dropping, wages are rising, and the outlook is good, you could conceivably get to that point."

However, "a couple" of officials said the rise should remain unlikely until 2016.

Participants also expressed "a range of views" on the outlook for inflation.

The Fed dropped from its policy statement a previous line saying it would remain "patient" before acting - a hint that a rate increase could come sooner.

At the meeting, the Fed left its key federal funds rate unchanged near zero, where it has been since late 2008.

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FTSE-100 Giants Poised To Warn Over EU Vote

By Mark Kleinman, City Editor

Some of Britain's biggest companies will begin issuing formal warnings about uncertainties associated with an exit from the European Union if the outcome of the General Election triggers a timetable for a referendum on the issue.

Sky News can reveal that directors at dozens of major listed companies – ranging from banks and insurers to engineers and consumer goods groups - have begun discussing with their auditors and lawyers the potential requirement to include such warnings in corporate announcements from as early as this summer.

The need for FTSE-100 companies to highlight the risks of a British withdrawal from the EU would be sparked by a Conservative victory in next month's poll, company directors say.

The Tories have pledged to hold an "in-out" referendum on EU membership by the end of 2017, while Labour insists that it is committed to remaining in a reformed EU.

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Video: Blair Throws Weight Behind Miliband

The two parties' division over Europe raises the prospect of an imminent flood of corporate warnings over a British exit if the Tories win an outright majority or take the lead in a second-term Coalition administration.

Company directors approached by Sky News confirmed that many FTSE-100 companies would start to formally raise the issue as soon as next month if it became clear that a referendum would take place.

They cited banks including Barclays and HSBC, insurers such as Legal & General and consumer goods manufacturers including Diageo and Unilever as being among those likely to be obliged to make public statements on the subject.

Video: PM: Britons Should Have Say On EU

It is not unusual for major companies to cite political events in lists of risk factors attached to their financial results or annual results.

Last year, in the build-up to the Scottish referendum, companies including Lloyds Banking Group, Royal Bank of Scotland, Standard Life and Weir Group, the engineering firm, all highlighted potential disruption that could be triggered by a vote for independence.

However, many company directors are loathe to make formal references to an EU exit vote as early as this year because of concerns about how they may be perceived by customers, employees and other stakeholders.

Video: UKIP: 'Well, Bravo Tony Blair...'

Earlier this week, Tony Blair, the former Prime Minister, warned of the "chaos" that would ensue from "the possibility, never mind the reality, of Britain quitting Europe".

"There would be significant business uncertainty in the run-up to the vote but should the vote go the way of exit then there would be the most intense period of business anxiety... and instability since the war," he said.

As the country's biggest trading partner, an EU exit would have profound ramifications for the UK economy, although critics of Brussels argue that a framework could be agreed which would avoid significant harm to UK interests.

Video: Labour: UK's Future Lies In EU

Speaking after his company's annual results last month, Sir Martin Sorrell, the WPP Group chief executive, said there could be "no good outcome" for business from next month's election.

He said the poll presented a choice between an anti-business Labour leadership and a Tory team committed to an EU referendum which would fuel uncertainty.

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UK Bank Scandal Costs Hit £39bn - Report

Britain's biggest banks have collectively racked up a £39bn bill as a result of financial scandals over just three years, a report has found.

A study by auditors KPMG covered financial results from Royal Bank of Scotland (RBS), Lloyds, Barclays, HSBC and Standard Chartered from 2011 to 2014.

It found that more than 60% of their total profits were wiped out by customer remediation, conduct failings and fines over the period, with costs totaling £38.7bn.

Conduct costs last year stood at £9.9bn, just 8% down on 2013, with almost half of the cash relating to the continuing cost of Payment Protection Insurance (PPI) and interest rate hedging mis-selling.

However, the report showed the banks were "in a healthier shape and returning to profitability" in 2014.

Video: BBA: Banks Being Driven Overseas

Their combined pre-tax profits reached £20.6bn, up £7.9bn or 62%.

The boost in profits was against a backdrop of total income falling by 12% to £127.2bn, as banks focused on less riskier activities in the wake of the financial crisis.

It meant, the study said, that shareholders were still getting a low return on equity.

Head of financial services at KPMG, Bill Michael, said: "Banks are undergoing a once-in-a-lifetime change, as they face evolving regulation, technology and society's expectations. 

"At the same time, competition is increasing as new challenger banks and peer-to-peer platforms offer customers new ways to borrow and deposit and technology-led services such as PayPal and e-wallets change the way money is transferred and goods and services paid for.

"Domestically focused banking arms are focused on restructuring their business. Those with active investment banking arms face significant challenges around ring-fencing their retail and investment banking activities, which will become mandatory in 2019.

"The UK as a financial centre has largely been built on non-retail banking. If further regulation creates too many strictures on non-retail banking, the industry risks losing its global relevance."

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Labour Would Abolish 'Non-Dom' Tax Status

By Jason Farrell, Senior Political Correspondent

Labour leader Ed Miliband is to say he will abolish "non-domiciled" status if he wins the General Election.

"Non-dom" residency allows around 116,000 individuals to exempt their offshore income from UK tax for an annual charge.

In a speech in Warwickshire, Mr Miliband will say that the rich should not be allowed to "operate under different rules".

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"The next Labour government will abolish the non-dom rule. And we will replace it with a clear principle - anyone permanently resident in the UK will pay tax in the same way," he is expected to tell his audience.

Video: Election In 60 Seconds: Europe Row

The party expects the move to raise "hundreds of millions of pounds" which will be used to reduce the deficit.

There are an estimated 116,000 non-doms living in the UK who only have to pay UK taxes on money they bring into the country.

Their income from overseas investments does not have to be declared.

The 200-year-old rule has been criticised for being open to exploitation by a jet-set elite looking to minimise their tax liabilities.

However, it is argued that the tax law encourages skilled workers and large investors from abroad to locate here and contribute to the UK economy.

Mr Miliband will say: "The problem is it isn't true. It is a recipe that doesn't work for most working people, doesn't work for business and doesn't work for Britain.

"It works against every business and working person in this country who has to pay more as a result, everybody who relies on public services like the NHS, everybody who believes in Britain and a fair and modern country.

Video: The Faisal Files: Day 9

"The United States doesn't do it. No other major country in the developed world does it. No one would propose doing it now if didn't already exist. One rule for some and another for others? It is unjust, it does not work, it holds Britain back and we will stop it."

In 2008, Labour announced plans to charge non-doms £30,000 a year if they had been resident in the UK for seven of the previous 10 years.

George Osborne increased this to £90,000 for those who have lived here for 17 out of the past 20 years.

But a spokesman for Ed Miliband said: "UK citizens should pay tax on all gains, anywhere in the world."

He added: "There should be no different rules between rich and poor."

Famous "non-doms" include some of Britain's richest individuals, such as Indian steel tycoon Lakshmi Mittal and Russian billionaire Roman Abramovich.

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'Radical' Pension Changes Come Into Force

By Poppy Trowbridge, Consumer Affairs Correspondent

Major changes to pension rules come into effect today which will allow savers to have more control over their money when they retire.

People aged over 55 are now able to cash in their pensions and spend them as they wish.

The changes were announced by Chancellor George Osborne in his Autumn Statement and were expanded in last month's Budget.

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Retirees are no longer required to use their pension pot to buy an annuity when they retire.

Video: What Advice Is Available?

They can now take their pot in one go, or use it like a bank account to withdraw money in slices.

The changes will apply to the 320,000 people who retire each year with a defined contribution (DC) pension.

Around 540,000 people will be able to take control of their savings from today, according to estimates from the Government.

And from next year, as many as six million pensioners who already have an annuity will be allowed to sell them for cash.

Critics of the new system say savers will be tempted to go on a spending spree, leaving the state to pick up the tab later on.

But Pensions Minister Steve Webb told Sky News: "We're not going to have two million people making decisions this week or this month.

Video: How Will People Use Their Money?

"We certainly think there will be many thousands of people who have planned very carefully and put the capacity in place.

"But I think lots of people, although they in theory could use these new freedoms, in fact if you're in your late 50s and still working, you may go on saving into a pension for many years to come."

Government advisor and pension expert Ros Altmann said: "This is a radical departure from the past. I would trust people with their own money.

"Now it's up to the industry to offer better products and more choice."

The freedoms come at a price: those who choose to tap their defined contribution pension pots for cash should be aware of income tax thresholds.

Some 25% of a person's savings can be taken tax free. Any extra that is withdrawn is liable for income tax at 40% if the total exceeds £42,386 when added to annual income.

Video: SNP Leader Launches Pension Plan

The revenues from this could raise an extra £1bn for the Treasury, according to the Institute for Fiscal Studies.

The Government's free, impartial, Pension Wise service has been established to offer guidance to everyone eligible for the freedoms.

Pensions minister Steve Webb said: "It is right that people should have the power to make their own decisions about how they spend their own money after decades of careful saving - ending the effective obligation to buy an annuity will give people back control of their financial affairs."

It came as SNP leader Nicola Sturgeon launched her party's plan for pensioners, listing "the kind of policies" they will pursue if they secure a significant number of seats in the General Election.

"We will maintain the 'triple lock' on pensions, we'll set the single-tier pension at £160 a week, we'll resist any further increases in the state retirement age in Scotland until we have tackled and closed the life-expectancy gap (and) we will absolutely oppose any attempt to take away the winter fuel allowance."

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The Mobile Battery That Charges In One Minute

Scientists have developed a battery that could allow a mobile phone to be charged and ready for use in one minute.

The new aluminium power cell is also much safer than existing lithium technology, can be bent and damaged, and does not catch fire.

The researchers at Stanford University in California say the battery can be recharged more often than usual batteries without losing its effectiveness.

It has the potential to be an important breakthrough as electricity storage becomes increasingly important with the increasing popularity of renewable energy.

Hongjie Dai, a professor of chemistry at Stanford, said: "We have developed a rechargeable aluminium battery that may replace existing storage devices, such as alkaline batteries, which are bad for the environment, and lithium-ion batteries, which occasionally burst into flames.

"Our new battery won't catch fire, even if you drill through it. Lithium batteries can go off in an unpredictable manner - in the air, the car or in your pocket."

Besides safety, he said the team had achieved major breakthroughs in battery performance with "unprecedented charging times" of down to one minute being reported.

Unlike previously developed aluminium batteries, which have been reported to die after just 100 charge-discharge cycles, the Stanford prototype has been found to withstand up to 7,500 charges.

The typical Lithium battery lasts for 1,000 cycles.

In an article in this month's edition of the journal Nature, the authors wrote: "This was the first time an ultra-fast aluminium-ion battery was constructed with stability over thousands of cycles."

Ming Gong, co-lead author of the Nature study, added: "Another feature of the aluminium battery is flexibility.

"You can bend it and fold it, so it has the potential for use in flexible electronic devices. Aluminium is also a cheaper metal than lithium."

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Challenger Poaches Exec From Bank of England

By Mark Kleinman, City Editor

One of a new wave of banks set up to challenge the hegemony of the UK's established high street lenders will announce this week that it has poached a senior executive from the Bank of England.

Sky News has learnt that Bank and Clients (B and C) has lured Nicole Coll, the chief financial accountant at the Bank of England since June 2013, to become its first chief of finance and operations.

The appointment, which will be announced on Tuesday, underlines the extent to which start-up banks are turning to regulators and central banks to fill their executive ranks as they seek senior staff with significant experience.

Prior to joining the Bank of England, Ms Coll held senior roles at Societe Generale, the French banking group, and Marex Spectron, a broker-dealer.

B and C was set up recently by Ocean Capital, an investment firm, which paid £13m to acquire a banking licence held by Somerset-based Church House Trust.

Offering a range of mortgage and savings products, it had been relegated to a peripheral role at Virgin Money, which took ownership of it in 2009.

Ocean Capital provided loans to private and public companies across Europe and North America, and is led by two brothers, Edouard and Julien Bridel.

Under the B and C name, the bank now intends to strengthen its focus on business lending.

B and C's launch coincides with the stock market listings of two rival challenger banks, with shares in Aldermore and Shawbrook both performing strongly since making their stock market debuts in recent weeks.

A string of other start-up banks have begun to emerge in the years since the financial crash, including Metro Bank and OakNorth, which this week announced that Lord Turner, the former chairman of the Financial Services Authority, would join its board.

Meanwhile, Lord McFall, the previous chairman of the Treasury Select Committee, has joined Atom Bank, a digital-only venture, as a director.

Further measures to promote competition in banking were announced last month in George Osborne's final Budget before the General Election‎, with a particular focus on a new Midata tool to enable consumers to compare current accounts.

The Competition and Markets Authority is due to conclude an inquiry into the personal current accounts and SME banking markets later this year.

The perception that challenger banks will be assisted by Government policy ‎whatever the outcome of May's election was one factor in the timing of the decisions by Aldermore and Shawbrook to proceed with their listings in the early part of this year.

A spokesman for B and C declined to comment on Ms Coll's appointment.

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Tories Accused Of 'Secret Tax Plan' By Labour

The Conservatives have been accused by Labour of favouring the rich after the Chancellor refused to rule out cutting the top rate of income tax in a Sky News interview.

George Osborne told the Murnaghan programme his party had "no plans" to further reduce the top rate of tax and insisted it was not a priority.

Prime Minister David Cameron also said: "It's not our policy, it's not our plan."

But Labour claim the Chancellor has been "flushed out", pointing out Mr Osborne used the same words about VAT before the last election, which he then raised from 17.5% to 20%.

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Video: Election Day Seven: Milking It

The opposition has promised to bring back the 50p rate for those earning upwards of £150,000, claiming the cut to 45p had benefited the wealthiest by at least £85,000.

Pressed on whether top earners could be in line for another tax cut, Mr Osborne said: "You can judge us by what we say we want to do.

"And what we want to do is increase the tax-free personal allowance to £12,500 so people full-time on the minimum wage don't have to pay income tax and millions are better off.

"And when it comes to higher rate taxpayers our priority is increasing the threshold at which you pay that higher rate, the 40p rate, to £50,000.

"Those are our big tax commitments for the coming parliament."

Tackled repeatedly over whether the top rate could be cut further, Mr Osborne said: "If that was our priority or our plan we would have made it part of our plan and made it one of our priorities."

Video: Faisal Files: Decisive Devon

But Labour's Chris Leslie told Murnaghan this was the same argument previously used by Mr Osborne on VAT, which he had then increased.

The party's priority, he claimed, "is always about helping the very richest in society".

Mr Leslie said later: "The Conservative Party's secret plan has now been exposed.

"Asked four times, George Osborne repeatedly refused to rule out another top-rate tax cut for millionaires.

"The Tories have raised taxes for millions but cut them for millionaires.

"And it's now clear that if they win the election they'll do the same again."

Video: Osborne Won't Rule Out Top Tax Cut

But Treasury minister David Gauke hit back, claiming Labour have a "secret plan" of their own for £3,028 of tax rises for every working family.

He said: The British people have a right to know what these tax hikes are.

"Already Ed Balls has been forced to admit that Labour will drag a million more hardworking taxpayers into the 40p income tax rate.

"The reality is Labour also need a National Insurance rise to make their sums add up.

"Conservatives will freeze VAT, Income Tax and National Insurance.

"So the choice at this election is clear. Lower taxes under David Cameron. Or higher taxes under Ed Miliband and the SNP."

Video: Cameron: No Change To Top Tax Rate

The clash over tax is just the latest between the two main parties as the election campaign gets into full swing.

In recent weeks, Mr Cameron ruled out an increase in VAT while Labour committed not to increase National Insurance.

Mr Osborne also warned "an unholy alliance" between Labour and the SNP after the election would threaten the future of the UK and its economy.

SNP leader Nicola Sturgeon has offered to help Ed Miliband "lock David Cameron out of Downing Street" amid claims she had told the French ambassador she would prefer a Tory win.

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Pru Boss 'Irritated' By Labour Letter Row

By Mark Kleinman, City Editor

A row over company bosses' political affiliations ahead of the General Election deepened on Thursday amid allegations that Labour was trying to undermine the leaders of some of the UK's biggest businesses.

Friends of the Prudential chief executive, Tidjane Thiam, told Sky News that he was "irritated" at suggestions from Labour sources that he was reconsidering his backing for a pro-Conservative letter which appeared in The Daily Telegraph this week.

The letter, which was originally signed by 103 business leaders, expressed support for Tory economic policies and warned that a "change of course" could jeopardise Britain's economic recovery.

Despite indicating that Labour was unconcerned by bosses' backing for the Tories, one Labour aide suggested on Thursday that Mr Thiam had "regretted" his decision to sign the Telegraph letter.

That provoked a robust response from people close to the Prudential chief, who is leaving his role this year to head the Zurich-based banking group Credit Suisse.

Video: Labour 'Wants Business To Succeed'

"He made his views clear and they speak for themselves, so he is unlikely to be happy at anyone else trying to misrepresent his position," a friend of Mr Thiam said.

Labour had earlier seized on a decision by Pascal Soriot, chief executive of the drug-maker AstraZeneca, to withdraw his association with the pro-Tory letter.

Mr Soriot did not say why he had signed the letter, but issued a statement saying: "Neither I nor AstraZeneca endorse any political party and while I support such policies my name should not be used in the context of the letter."

Labour aides also tried to claim that the chief executive of Ladbrokes had also changed his mind about being a signatory but omitted to mention that Richard Glynn, whose name appeared on the list of supporters, stepped down this week.

Video: Business Leaders Back Tories

His successor, Jim Mullen, said he would not sign any similar letters during an election campaign.

A Conservative Party source said that Labour was trying to "intimidate or undermine" business leaders from speaking out on the economy.

Sky News revealed earlier this week that Stefano Pessina, the boss of Walgreens Boots Alliance, had been approached but declined to sign the letter just weeks after being attacked by Ed Miliband for saying that a Labour government could be "disastrous".

In Thursday's seven-way party leaders' debate, David Cameron referred to the support from business leaders as evidence for the need to keep the Tories in government.

Video: David Gauke Discusses Open Letter

The festering row about business support for the main parties was also reignited this week when Chuka Umunna, the Shadow Business Secretary, said that Paul Walsh should not become the next president of the CBI after opting to show support for the Conservatives.

Sky News revealed in February that Mr Walsh, the former chief executive of Diageo, was being lined up to succeed Sir Mike Rake, and his appointment is expected to be confirmed later this month.

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Sluggish US Economy Adds Only 126,000 Jobs

By Sky News US Team

A slow US economy added a lower-than-expected 126,000 jobs in March, though the unemployment rate held steady, as predicted, at 5.5%.

Friday's jobs reports broke a run of 12 consecutive months in which the economy added more than 200,000 jobs.

It was the smallest jobs gain since December 2013, said the Labor Department.

Job gains in February and January this year were also revised down by 69,000.

US manufacturing and construction activity is anaemic, while hiring at restaurants is down as the country emerges from a harsh winter.

Average hourly wages rose a modest 7 cents to $24.86 (£16.68) an hour.

The disappointing report could hold back the Federal Reserve from raising interest rates in the middle of this year.

Cheaper oil has hurt manufacturers as energy firms rein in orders for equipment, and has yet to show an impact on consumer spending. 

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