First-Time Homebuyers At Five-Year High

The number of first-time homebuyers has risen to the highest level in five and a half years, porviding further evidence of a recovery in the housing market.

According to the Council of Mortgage Lenders (CML), 25,100 loans worth £3.4bn were advanced to people taking their first step on the property ladder during May.

The figure is up 42% on the same time last year, and is the highest volume since November 2007.

It was a marked contrast to the low point of the global financial crisis when just 8,500 loans were given, in January 2009.

The overall £8.4bn of lending for house purchases accounted for 57% of all mortgage lending in May, by value.

Meanwhile remortgaging of £4bn accounted for 27% of all lending.

Other lending, including lifetime, buy-to-let and further advances, amounted to £2.3bn - or 16% of the total.

Paul Smee, director general of the Council of Mortgage Lenders, said: "Although monthly lending is still running at far less than half its typical monthly level during the peak, there is no doubt that the mortgage market is firmly open for business.

"Both the borrowing appetite of first-time buyers, and the availability of attractive mortgages for them, have improved markedly since a year ago.

"What is interesting is that, in contrast to some recent assertions, this is happening in parallel with the strengthening buy-to-let market."

Mr Smee added: "It is perfectly possible for both the buy-to-let market and the first-time buyer market to improve at the same time, as the evidence clearly demonstrates.

"It is important that the supply of housing steps up, as increased housing supply is a crucial factor in ensuring that housing is affordable over the long term."

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Twitter Takes On Tax Expert To Avoid Woes

By Pete Norman, Sky News Online

Twitter is bolstering its international operations ahead of an expected flotation by employing its first full-time tax manager, to ensure complex company structures comply with laws across Europe.

Based in its international headquarters in Dublin, it will include oversight of the preparation and filing of all business tax returns.

The social media giant described the new role as being "in a fast-moving, challenging yet fun environment".

Sky News understands Twitter is hiring a number of new key finance personnel as part of its extensive international expansion plan.

The tax manager will be responsible for taxation affairs across Europe, the Middle East and Africa (EMEA) and is expected to "implement and monitor transfer pricing strategy".

Transfer pricing is a system whereby goods or services are supplied and charged between arms of a multinational firm, sometimes across national borders and jurisdictions.

Twitter UK Ltd answers to Twitter International Company in Ireland, which is wholly-owned by Twitter Inc - one of at least three companies California-based Twitter has formed in the US state of Delaware.

However, leading American multinationals have been under increasing UK parliamentary scrutiny in recent months over transfer pricing.

The tax expert role advertised by Twitter International

Last week the UK arm of Twitter filed its abbreviated accounts for the year ended December 31, with the business regulator Companies House.

Twitter declined to confirm that UK sales were routed through Ireland.

But its accounts revealed that "turnover represents the value of services provided to other Twitter group companies".

A Twitter UK spokesperson told Sky News: "Since Twitter UK opened in 2011 we have been steadily building our team, focusing on promoting great uses of Twitter by all elements of UK society - the arts, sport, Government, and brand partners."

UK profit for 2012 was listed as £108,907, up from £16,499 in the previous year. Twitter UK was formed in June 2011.

The company's taxation and social security liability also increased from £36,800 in 2011 to £326,949 in 2012.

"There have been a number of significant changes and you can see the company's tangible assets in the 2012 accounts have substantially increased to £504,595 from £2,696 in 2011," Maung Aye, corporate solicitor and Mackrell Turner Garrett associate, told Sky News.

"Another factor to consider is whether the assets and equipment of the now dissolved TweetDeck Ltd were absorbed into Twitter UK Ltd so that the application can be continued for its users."

Last December Sky News revealed that Twitter UK and its sister firm TweetDeck Ltd were fined by Companies House for failing to file their 2011 accounts on time.

Twitter CEO Dick Costolo resigned his role as Twitter UK director

Two of Twitter's top American officials, chief executive Dick Costolo and head of trust Alex Macgillivray, were directors of the TweetDeck. The two executives, along with chief operating officer Ali Rowghani, were directors of Twitter UK.

Although Twitter UK finally filed its 2011 accounts TweetDeck did not and was forcibly dissolved by the business regulator on May 7 this year.

On May 9, Mr Costolo resigned his remaining British directorial role - with Twitter UK - and his position was taken by Irish ex-'Big Four' chartered accountant Laurence O'Brien, who is in charge of international operations in Dublin.

Forbes magazine has reported that Twitter may seek a public flotation in 2014, saying it could be worth more than $11bn (£6.8bn) to investors if it successfully monetises the service without disenfranchising users.

Meanwhile, the micro-blogging site has fought against spam attacks masquerading as legitimate tweets.

In January, hashtags for the World Economic Forum in Davos were bombarded with so-called spam bots and porn bots, while a recent swamping involved diet aid spams.

In both cases Mr Costolo responded to complaints personally by tweeting that the company was dealing with the problems.

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UK Motor Industry Gets £1bn Hi-Tech Boost

Britain's motor industry is to receive more than £1bn in new funding over the next decade to improve its global competitiveness.

The joint UK motor industry and Government automotive strategy has agreed to the deal to help secure the growth and development of the vehicle and component manufacturing sector.

This new funding supports multi-billion pound investments announced in the last few years by global automotive companies to boost production levels and develop new technologies and models.

Developed under Automotive Council guidance, both industry and the Government will fund the investments.

The range of projects include the creation of an Advanced Propulsion Centre (APC), thousands of new motor industry apprenticeships and the development of an Automotive Investment Organisation.

The APC is expected to research, develop and commercialise technologies for the vehicles of the future.

What Car? editor-in-chief Chas Hallett told Sky News: "The British motor industry is booming at the moment but companies are still struggling to attract top quality young people.

"Any incentives to provide apprenticeships in order to attract the brightest and best should be welcomed."

The UK car industry covers several major regional areas

The development of the strategy also sees the provision of finance for tooling investments in the supply chain, and a renewed commitment to encourage the UK as a lead market in the production and sale of low emission vehicles.

The financial commitment is backed by 27 companies in the motor industry sector, including supply chain companies, and it is expected to secure at least 30,000 jobs currently linked to producing engines and create many more in the supply chain.

It was also announced that the Automotive Council, co-chaired by Mr Cable and Professor Richard Parry-Jones, is aiming to recruit more than 7,600 apprentices and 1,700 graduates over the next five years.

In addition, the newly-created Automotive Investment Organisation will aim to double the number of jobs created or secured in the automotive supply chain over the next three years to 15,000.

In a further announcement, the Technology Strategy Board launched a £10m competition that could see successful projects fast-tracked for commercialisation through the APC.

Businesses are being invited to bid for support on innovative, collaborative low-carbon vehicle projects.

Announcing the total initiative with Prof Parry-Jones at the Goodwood Festival of Speed in West Sussex on Friday morning, Mr Cable said: "The UK automotive sector has been incredibly successful in recent times, with billions of pounds of investment and new jobs.

"With the next generation of vehicles set to be powered by radically different technologies we need to maintain this momentum and act now. Our industrial strategy will ensure we keep on working together to make our automotive industry a world leader."

Prof Parry-Jones said: "Businesses prefer consistency, stability and a clear path to the future in order to make investment plans.

"This is critical to sustaining and growing a thriving UK automotive sector in a highly competitive global industry."

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GlaxoSmithKline Denies China Drug Bribes

Britain's biggest drug maker has told Sky News it rejects claims by Chinese authorities that it offered bribes to doctors and hospitals.

GlaxoSmithKline (GSK) had been accused by China's Public Security Bureau (PSB) of offering free travel as "large bribes".

It said the bribes were "to open new sales channels and increase drug revenues" and given to doctors, hospitals, foundations and medical associations.

In a statement to Sky News, GSK said: "We take all allegations of bribery and corruption seriously. We continuously monitor our businesses to ensure they meet our strict compliance procedures

"We have done this in China and found no evidence of bribery or corruption of doctors or government officials."

It added: "We are aware of the statement from the PSB. We are willing to co-operate with the authorities in this inquiry.

"But this is the first official communication GSK has received from the PSB in relation to the specific nature of its investigation."

The Chinese authorities allegedly identified employees only as "high officials" but gave no details of the size of payments or who received them.

The Chinese authorities said the investigation took place in Shanghai and the cities of Changsha and Zhengzhou.

"After questioning, the suspects confessed to the crime," the PSB statement said.

Sky sources confirmed that a British national was detained and questioned by Chinese authorities in Shanghai and has has now been released.

Sources revealed that dozens of Chinese police entered the GSK Shanghai offices on June 27, entered the offices of senior British staff and seized paperwork.

After the raid GSK circulated an internal memo which said: "At this stage, it is unclear about the precise nature/purpose of their visit and investigation.

"We will of course cooperate with their inquiries, but are unable to comment further at this stage."

It added: "Generally speaking, travel to China can continue as planned, unless you are planning to visit the GSK Pharmaceuticals offices to meet with senior management, in which case you should check with your host to ensure that the current meeting arrangements still stand."

A Foreign Office spokesman told Sky News: "We are aware of the Chinese investigation, and we are providing consular assistance to a British national.

"We are in contact with GSK and are in the process of seeking further information from the Chinese authorities."

Sky News Asia Correspondent Mark Stone, reporting from Beijing, said: "This comes a week after police in a city in south-central China said they were investigating high level Chinese staff."

Police in Changsha announced two weeks ago that GSK employees had been detained for questioning about unspecified "economic crimes".

Brentford-based GSK said in June that it had investigated an accusation that its salespeople in China bribed doctors and found no evidence of wrongdoing.

Last week Chinese state media reported that the government was investigating production costs for 60 foreign and domestic drug companies in a possible first step toward changing state-set maximum prices.

The announcement gave no indication any companies were suspected of wrongdoing.

:: In late Thursday trading in London shares in GSK remained virtually flat.

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Nokia Lumia 1020: 41-Megapixel Camera Unveiled

Nokia has unveiled a smartphone which boasts a market-beating 41-megapixel camera in a move to make up lost ground on its rivals.

Experts have praised the Lumia 1020 for taking "mobile photography to the next level" but doubt whether it will be enough of an incentive to woo customers away from Apple and Samsung.

At a launch event in New York, the firm said that the camera allows users to zoom in and reframe their photos without worrying about reducing image quality.

A new feature called dual capture also enables two photos to be taken simultaneously at once - one at a high-resolution of 38-megapixels and another at 5-megapixels which is easier to share on social networks.

The device's camera beats the iPhone 5's 8-megapixels

Nokia chief executive Stephen Elop said the new device "will change how you shoot and how you create forever."

But the Finnish company currently trails the two giants of the smartphone market - Apple and Samsung - by a long way.

In the past two years Nokia have reportedly sold around 20 million of their Lumia devices, which run on Microsoft software.

That's compared to Apple's 248 million iPhones and Android's 800 million handsets, many of which are manufactured by Samsung.

Experts doubt whether the Lumia 1020 will entice customers from rivals

The Telegraph's Consumer Technology Editor Matt Warman told Sky News: "The problem that Nokia have got is ... when consumers go into a shop, then how good the camera doesn't decide whether they're going to buy that particular phone.

"It's a great piece of engineering but is it going to be enough to save Nokia? Not of itself, no, I don't think it is."

A UK release date was not confirmed but the device is expected to go on sale in Europe in the next few months.

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UK Motor Industry Gets £1bn Hi-Tech Boost

Britain's motor industry is to receive more than £1bn in new funding over the next decade to improve its global competitiveness.

The joint UK motor industry and Government automotive strategy has agreed to the deal to help secure the growth and development of the vehicle and component manufacturing sector.

This new funding supports multi-billion pound investments announced in the last few years by global automotive companies to boost production levels and develop new technologies and models.

Developed under Automotive Council guidance, both industry and the Government will fund the investments.

The range of projects include the creation of an Advanced Propulsion Centre (APC), thousands of new motor industry apprenticeships and the development of an Automotive Investment Organisation.

 The APC is expected to research, develop and commercialise technologies for the vehicles of the future.

The development of the strategy also sees the provision of finance for tooling investments in the supply chain, and a renewed commitment to encourage the UK as a lead market in the production and sale of low emission vehicles.

The financial commitment is backed by 27 companies in the motor industry sector, including supply chain companies, and it is expected to secure at least 30,000 jobs currently linked to producing engines and create many more in the supply chain.

It was also announced that the Automotive Council, co-chaired by Mr Cable and Professor Richard Parry-Jones, is aiming to recruit more than 7,600 apprentices and 1,700 graduates over the next five years.

In addition, the newly-created Automotive Investment Organisation will aim to double the number of jobs created or secured in the automotive supply chain over the next three years to 15,000.

In a further announcement, the Technology Strategy Board launched a £10m competition that could see successful projects fast-tracked for commercialisation through the APC.

Businesses are being invited to bid for support on innovative, collaborative low-carbon vehicle projects.

Announcing the total initiative with Prof Parry-Jones at the Goodwood Festival of Speed in West Sussex on Friday morning, Mr Cable said: "The UK automotive sector has been incredibly successful in recent times, with billions of pounds of investment and new jobs.

"With the next generation of vehicles set to be powered by radically different technologies we need to maintain this momentum and act now. Our industrial strategy will ensure we keep on working together to make our automotive industry a world leader."

Prof Parry-Jones said: "Businesses prefer consistency, stability and a clear path to the future in order to make investment plans.

"'Driving Success', the automotive industrial strategy, sets out how industry will work together with government over the next 20 or 30 years.

"This is critical to sustaining and growing a thriving UK automotive sector in a highly competitive global industry."

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Royal Mail Sale: Cable Outlines Flotation

Royal Mail staff will get free shares under the Government's plans for the privatisation of the service, despite strong opposition to the sell-off among the workforce.

The Business Secretary confirmed in a statement to MPs the intention to float a majority stake in Royal Mail initially, with the rest following depending on market conditions.

Vince Cable told the Commons: "These shares will be free to eligible employees, recognising that many of them would otherwise find them unaffordable."

Royal Mail workers took to a 'protest' bus in London to make their point

As he announced that staff would hold 10% of the business under proposals first revealed by Sky News, members of the Communication Workers Union (CWU) took to an open-top bus in the City to denounce the sell-off.

Some of the protesters - most of them employees of the postal service - held placards reading: "Save our Royal Mail" or "You own it, don't buy it."

They argued that they cared more about the future of the service, their pensions, jobs and working conditions than the prospect of a windfall worth more than £2,000 each for the 150,000-strong workforce.

Chuka Umunna questioned the Government's motives for the sale

The union's deputy general secretary, Dave Ward, dismissed reassurances about future employment rules to warn of the prospect of strikes unless legally-binding agreements were put in place to guarantee his members' conditions.

But  the chief executive of Royal Mail assured staff their pay and conditions would not be changed without their agreement.

Moya Greene said: "As we move into the private sector, the current legal position is that all terms and conditions that apply to Royal Mail employees would remain in place, on the same basis.

"To provide further reassurance, we will create a legally-binding and enforceable contract with the CWU. Pay and protections could not be changed for the period of the contract without CWU agreement."

Mr Cable said the flotation, which was expected to value the business at £3bn, would begin over the next year and the shares would be listed on the London Stock Exchange. They will be available to the general public as well as institutional investors.

"This is logical, it is a commercial decision designed to put Royal Mail's future on to a long-term sustainable basis," he said.

"It is consistent with developments elsewhere in Europe where privatised operators in Austria, Germany and Belgium produce profit margins far higher than the Royal Mail but have continued to provide high-quality and expanding services.

"Now the time has come for Government to step back from Royal Mail, allow its management to focus wholeheartedly on growing the business and planning for the future."

Labour said it would oppose the flotation.

Shadow business secretary Chuka Umunna said: "Having nationalised the organisation's debts by taking on its pension liabilities, they now want to privatise the profit at the very time it is making money.

"There is every sign this treasured national institution is being sold off on the cheap to get income quickly to a Treasury whose economic strategy has failed."

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Debt Warning For Mortgage Payers Over Rates

Millions of people are at risk of entering a spiral of debt over mortgage interest rates, according to new research.

The study published by the Resolution Foundation think tank analysed the effects on families if interest rates rise by the expected 1.9% in four years.

It also considered the "adverse but plausible" scenario that they could increase by a further 2% by 2017.

It calculated that more than 800,000 families will be forced to spend half of their income on debt repayments by 2017 if interest rates rise by current predictions and household income is squeezed.

It found Britain could be left in a fragile position with a major surge in families with dangerous debt levels.

A "best case scenario" where interest rates rise by current expectations and family household income growth is strong will see 700,000 households spending more than 50% of their income on repayments.

But if household growth is weak and uneven, the figure increases to 810,000.

It further rises to 1.2 million if interest rates exceed expectations and reach 3.9% by 2017.

Resolution Foundation senior economist Matthew Whittaker said: "There is now the real prospect that a large number of households already burdened with debt could collapse under its weight if economic conditions tighten.

"Even if interest rates stay in line with expectations, we are likely to see a rise in the number of families struggling with heavy levels of repayment over the coming years.

"But if the squeeze on household incomes continues, Britain could be left in a fragile position, with even moderate additional increases in interest rates leading to a major surge in families with dangerous debt levels - especially among worse-off households.

Since 2007 the number of households spending at least 50% of their income on repayments has dropped by 270,000 to 600,000 because of falling interest rates.

But a rise in interest rates in the next four years could see Britain return to higher levels of household debt than before the financial crisis, which was sparked by US homeowners being unable to service their mortgage debt.

Meanwhile, according to the Office of National Statistics, Britain is now a more unequal country than at any point since 1986.

It said benefits and tax credits have helped protect the incomes of the poorest amid ongoing wage stagnation.

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Regional Growth Fund Winners Are Announced

Regional Growth Fund Bidders

Updated: 7:58am UK, Thursday 11 July 2013

A list of bidders to the Regional Growth Fund with conditional offers by region.

North West

:: Accelerating Business Growth PLUS (Blackburn with Darwen Borough Council -Programme)

:: Bright Future Software Limited

:: Unleashing Cumbria's Potential (Cumbria County Council - Programme)

:: Cygnet Group Limited

:: EA Technology Limited

:: Turning Discovery Science and Knowledge into Jobs and Growth (GM Local Enterprise Partnership - Programme)

:: Helical Technology Limited

:: Liverpool City Region Small Business Support Fund (Liverpool City Region LEP - Programme)

:: N Brown Group Plc (Programme)

:: Novartis Vaccines & Diagnostics Ltd

:: Patterson & Rothwell Limited

:: Redx Pharma Ltd

:: Sidcot Investments Limited

:: St Helens Jobs and Growth Fund (St Helens Chamber - Programme)

:: Tratos Ltd

:: Unilever UK Central Resources Limited

:: Catalyst for Growth (University of Chester - Programme)

:: Vix Technology (UK) Ltd

Yorkshire and Humber

:: Beatson Clark Ltd

:: Paull Strategic Employment Site : Capturing Siemens Tier 1 Suppliers (East Riding of Yorkshire Council)

:: Harrison Spinks Beds Ltd

:: The enhanced Business Growth Programme (Leeds City Region LEP - Programme)

:: Developing the UK's Leading Food Manufacturing Cluster in Greater Lincolnshire (North East Lincolnshire Council - Programme):: Optare Plc

:: Really Useful Products Limited

:: Unlocking (more) Business Investment (Sheffield Council - Programme)

:: Silkstone Finance Limited

:: Centre for Innovation in Rail (University of Huddersfield)

:: York, North Yorkshire & East Riding Business Grant Programme West Midlands

:: GBS Mezzanine Funding Programme (Birmingham City Council Programme)

:: Coventry and Warwickshire Business Finance (Coventry and Warwickshire LEP - Programme)

:: The Marches and Worcestershire Redundant Building Grant Programme (Herefordshire Council - Programme)

:: Jaguar Land Rover Ltd

:: King Automotive Systems Ltd

:: Malvern Instruments Ltd

:: NVC Lighting Ltd

:: Robinson Brothers Ltd

:: Growing Priority Sectors in the Black Country (Sandwell MBC - Programme)

:: Innovative Growth in Stoke on Trent and Staffordshire (Stoke on Trent City Council - Programme):: Tata Steel UK Ltd

:: TRW Automotive - College Road

:: Wade Ceramics Limited

:: Worcestershire Expansion Fund (Worcestershire County Council - Programme)

North East

:: Air Fuel Synthesis Ltd / Crane Services (UK) Ltd

:: JDR Cable Systems Limited

:: JDR Enterprises Limited

:: Molplex Limited

:: NET Power Europe

:: Tees Valley Innovation and Skills Growth Hub (Stockton Borough Council - Programme)

:: Sunderland City Deal Infrastructure Development (Sunderland City Council - Programme)

:: Bringing Finance to Businesses in the North East (Sunderland City Council - Programme)

:: Thomas Swan & Co. Ltd.

:: Tinsley Special Products Limited

South West

:: AgustaWestland Limited

:: Atlantic Inertial Systems Limited

:: Avanti Communications Group plc

:: Cooper Tire & Rubber Company Europe Ltd

:: Johnson Matthey Fuel Cells Ltd (JMFC)

:: Marine Current Turbines Ltd

:: GAIN Growth Fund Plus (Plymouth City Council - Programme)

:: Trackwise Designs Ltd

:: Innovation for Growth Programme (University of the West of England - Programme)

East of England, South East

:: Eastern England Agri-Tech Growth Initiative (Cambridgeshire County Council - Programme)

:: Coast to Capital City High Growth and Innovation Fund (Coast to Capital LEP - Programme)

:: Cummins Power Generation Limited (CPG)

:: e2v Technologies (UK) ltd.

:: East Sussex Invest (East Sussex County Council - Programme)

:: Element Six Limited

:: Fianium Limited

:: GE Aviation Systems

:: Harwell Science and Innovation Campus GP

:: SUCCESS - Southeast Urban Coast Creative Enterprise Support Scheme (Hastings Borough Council - Programme)

:: Escalate - the Innovation and Growth Fund (Kent County Council - Programme)

:: Portsmouth/Southampton (Programme)

:: STRUCTeam Ltd

:: New Anglia Growing Business Fund (Suffolk County Council - Programme)

:: TAG Farnborough Airport Ltd

:: The Oxford Trust/Science Oxford

:: SPI Lasers UK Ltd

East Midlands

:: UK Stem Cell Provision (Anthony Nolan)

:: Bifrangi UK Limited

:: Chinook Sciences Limited

:: "Global Derbyshire" Small Business Support Programme (Derbyshire County

Council - Programme)

:: Dynex Semiconductor Limited

:: Fairline Boats Limited

:: Frontier Agriculture Ltd (Programme)

:: Leicester and Leicestershire Enterprise Partnership Accelerating Prosperity Programme (Leicester City Council - Programme)

:: Northamptonshire Enterprise Partnership (Programme)

:: Oclaro Technology Ltd

:: Toyota Motor Manufacturing (UK) Ltd

:: The Lincoln Growth Fund (University of Lincoln - Programme)

:: VF Northern Europe Limited

Nationwide

:: Tooling Loan Fund (Birmingham)

:: Community Development Finance Association

:: Creative England

:: Deutsche Leasing UK Ltd

:: Five Arrows Leasing Group Limited (FALG)

:: HSBC

:: Wave 2 City Deals Growth Hubs

:: RBS

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Miliband Vows To Reform Labour's Union Ties

Ed Miliband has made one of the biggest gambles of his leadership by vowing to radically reform Labour's relationship with the unions.

In a move that could cost his party millions in funding and lost membership, Mr Miliband unveiled a series of steps to weaken union influence.

Under the plans, union members would no longer be automatically affiliated to Labour and candidates would have to obey a new code of conduct.

Spending caps for would-be candidates and any organisation backing them would apply in domestic and European parliamentary elections.

And standard constituency agreements with unions would aim to ensure no one involved in the selection process could be subjected to "undue local pressure".

A system of US-style primaries would also be used to pick Labour's next candidate for mayor of London and potentially future parliamentary candidates in certain constituencies.

In a bid to shift the pressure onto other party leaders, Mr Miliband also laid down a challenge by pledging to limit MPs' outside earnings if he wins power in 2015.

Unite boss Len McCluskey

And he called for the reopening of stalled talks on party funding, repeating his offer to cap donations from individuals, businesses and trade unions.

His speech in London was sparked by the Falkirk ballot-rigging scandal, which the party leader said was an example of the "death throes of the old politics".

Police are investigating after the Unite union was accused of trying to use its members to secure the selection of a particular candidate in the Scottish constituency.

"Every time something like Falkirk happens, it confirms people's worst suspicions," Mr Miliband said. "I want to build a better Labour Party - and build a better politics for Britain."

His reforms would see union members given the change to "opt in" to a £3 donation which currently goes straight to the party.

"I do not want any individual to be paying money to the Labour Party in affiliation fees unless they have deliberately chosen to do so," he said.

Officials acknowledge ending automatic affiliation will represent a financial "hit" for the party but Mr Miliband claimed it was also an opportunity to mobilise union members.

"It could grow our membership from 200,000 to a far higher number, genuinely rooting us in the life of more people of our country," he said.

In a surprise move, the Labour leader also attacked MPs who earn significant amounts from outside jobs and raised the wider issue of party funding.

He insisted being an MP was a "privilege and a duty" rather than a sideline and called for new rules to limit second jobs and avoid conflicts of interest.

Union affiliations of Labour Party members

Unite general secretary Len McCluskey described Mr Miliband's plans as "very brave" and suggested they could be historic if his vision is realised.

He made clear he too wanted the status quo to change and said he was "attracted" by the ideas set out because it would make trade unionists more active.

But he warned "dramatically" fewer union members would sign up to be affiliated to Labour if an opt-in was adopted.

"I think this is in a sense a dangerous road for him," he said on Sky's Boulton & Co show.

Conservative Party Chairman Grant Shapps claimed the "weak" plans were meaningless and pointed out that a code of conduct already exists.

"It would still be the same old Labour Party - bankrolled by the unions, policies rigged by the unions and candidates chosen by the unions," he said.

"The reality is Ed Miliband cannot change Labour because he cannot stand up to the union barons who elected him. That means he's too weak to stand up for hardworking people and too weak to run the country."

But former prime minister and Labour leader Tony Blair told Sky News he believed it was a defining moment for his successor.

"It is bold and strong. It is real leadership," he said. "He is carrying through a process of reform in the Labour Party that is long overdue and frankly probably I should have done it when I was leader.

"At the same time what he is doing is sending a very strong message to the country that in the end he will do what is right and that he will govern for all the country and not simply one section of it."

Party sources insist Mr Miliband had always intended to deliver reforms but did not deny that the timing was linked to the Falkirk scandal.

After his speech, the leader insisted: "We are going to make this change happen, let me make that clear", but admitted no timetable had yet been set out.

He has appointed former Labour general secretary and union official Lord Collins of Highbury to lead work on the introduction of the new system.

Deputy Prime Minister Nick Clegg said he was prepared to work with Labour to legislate for an opt-in using the Third Party Funding Bill and called on Mr Miliband to "turn words into actions".

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City Watchdog Boss Got £86,000 Bonus In 2012

By Mark Kleinman, City Editor

Martin Wheatley, the boss of the new City conduct regulator, received a near six-figure bonus last year despite criticism of its handling of a string of mis-selling scandals.

Sky News can reveal that Mr Wheatley, chief executive of the Financial Conduct Authority (FCA) was paid an annual bonus of £86,000 in 2012-13, part of a total package worth more than £650,000.

The pay deal, which will be disclosed in the FCA's annual report due to be published on Wednesday, made Mr Wheatley one of the UK's best-paid public servants.

He is understood to have been paid a base salary of about £430,000 and received pension contributions and other benefits of approximately £150,000 on top of his annual bonus.

It is unclear whether the FCA annual report will detail the precise performance criteria on which Mr Wheatley's bonus was decided. If it does not, it will provoke accusations of hypocrisy given the scrutiny to which the watchdog subjects the pay plans of the firms it supervises.

The former head of the markets regulator in Hong Kong, Mr Wheatley was recruited back to London in 2011 while the Financial Services Authority was still in existence.

In March, the FSA was abolished under George Osborne's plans to overhaul City regulation and was replaced by the FCA and Prudential Regulation Authority, which has responsibility for the safety of the financial system.

Mr Wheatley has played a key role in changes to the operation of the scandal-hit Libor interbank borrowing rate. Sky News revealed on Tuesday that Libor's administration would be taken on by NYSE Euronext, owner of the New York Stock Exchange.

However, the FCA has faced criticism for not moving swiftly enough to force banks to pay compensation to victims of the interest rate swaps mis-selling scandal.

The FCA chief's base salary in 2012-13 was similar to his pay the previous year, when he also received a £29,000 bonus for seven months' work. His total package that year amounted to £399,657.

A source pointed out that Mr Wheatley's remuneration was significantly lower than that of Sir Hector Sants, the former FSA chief executive who now works in a highly-paid job at Barclays.

In a speech in London on Tuesday, Mr Wheatley said the FSA had been guilty of "implausible economic assessments" and a "flawed approach" to regulation.

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Royal Mail Privatisation Plans To Be Unveiled

By Poppy Trowbridge, Business and Economics Correspondent

The Business Secretary will announce plans for one of the biggest UK privatisations in decades when he makes a statement on the future of the Royal Mail later.

Vince Cable will tell the House of Commons how the Government plans to sell off the 375-year-old postal operator.

It wants to sell stock in the company to market investors, which could see the company valued at around £2.5bn.

Moya Greene, chief executive of Royal Mail, has held talks with scores of potential investors in recent months in an attempt to persuade them to back the plans.

She faces opposition from unions and many employees, who fear privatisation will lead to a shake-up of services and cuts.

Many Royal Mail staff will be offered free shares in the company

Steve Butts, a Royal Mail staff member for the past 32 years, told Sky News: "I think privatisation will only bring a race to the bottom for employees.

"Any private investor would always want to make money and the way they are going to do that is to drive down our terms and conditions."

Mr Cable's announcement comes after Sky News revealed many of Royal Mail's 150,000 staff will receive free shares worth as much as £300m as part of the privatisation.

The share sale would raise hundreds of millions of pounds that experts say could help modernise the mail system in Britain.

Robert Hammond, director of post and market analysis at Consumer Futures, told Sky News: "I would hope that a privatised Royal Mail would be looking to expand on their products and services, and to make those services ready for 21st century consumers."

Mr Cable is expected to deliver his statement after Prime Minister's Questions.

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Fallon To Unveil £2.5bn Royal Mail Flotation

By Mark Kleinman, City Editor

The Government will this week fire the formal starting-gun on the most ambitious privatisation in decades by unveiling plans for a £2.5bn autumn stock market listing of Royal Mail.

Sky News can exclusively reveal that Michael Fallon, the Business Minister, is expected to disclose the news in a statement to the House of Commons. The statement has been provisionally scheduled for Wednesday although the timing could still change, according to people close to the situation.

Mr Fallon's announcement will end any lingering suggestions that the Government could abandon plans for a flotation of Royal Mail in the face of escalating public hostility from trade unions.

The Communication Workers' Union rejected an 8.6pc basic pay rise offer – spread over three years – from the company's management last week, a deal which Mr Fallon described as "pretty reasonable".

It will also confirm the widely-held expectation that the Government wants to pursue a listing in which members of the public can participate, although there may be restrictions on the number of shares for which individuals can apply.

Mr Fallon had previously said the Coalition's "preferred route" to injecting capital into Royal Mail was a stock market flotation but insisted that other options remained under consideration.

Last week, the Government hired three investment banks to add to an existing quartet of advisers that will work on the share sale. They are expected to earn up to £15m in total, a relatively small fee pool for such a sizeable listing.

It is unclear whether this week's statement will include full details of the terms of an initial public offering (IPO), such as the mechanism through which Royal Mail's 130,000 staff will receive shares in the company.

Sources said the Government was leaning towards the option of giving the equity to staff for free rather than at a discount.

However, Sky News understands that the employee share offer, which will take place over a period of some months, will only include those Royal Mail staff who are based in the UK.

Ministers and officials have been deliberating over whether the roughly 13,000 people who are employed by General Logistics Systems (GLS), Royal Mail's European parcels business, should be involved in a staff share ownership scheme.

The Government has been sensitive to potential accusations that they are orchestrating a share giveaway worth hundreds of millions of pounds from which thousands of French, German and Italian citizens would stand to benefit.

GLS, which delivers more than 360 million parcels to 220,000 customers every year, is one of the most profitable parcel delivery businesses in the world. Its earnings have been one of few financial bright spots during the restructuring of Royal Mail during the last decade.

The company has staged a significant financial turnaround under the leadership of Donald Brydon, its chairman, and Moya Greene, the Canadian who was parachuted in to lead the restructuring in 2010.

Royal Mail's annual report, which could also be published this week, is expected to show that she will receive an annual bonus worth almost £500,000 after nearly trebling the company's operating profit to £403m last year.

The Department for Business, Innovation and Skills and Royal Mail both declined to comment.

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Bad Bankers Face Criminal Charges And Jail

Reckless bankers could face criminal charges and jail after the Chancellor pledged to implement most of the recommendations produced by the Parliamentary Commission on Banking Standards.

George Osborne is also backing calls for tighter control of bonuses but he has rejected the Commission's recommendation that UK Financial Investments (UKFI) - the body that handles the state's holdings in the Royal Bank of Scotland and Lloyds Banking Group - be abolished.

In a statement, the Government set out key proposals from the commission to be added to the banking reform Bill in the autumn.

These are to include a new offence of "reckless misconduct" for senior bankers, with those found guilty facing a possible jail sentence.

Lloyds then RBS face returns to private ownership after taxpayer bailouts

Mr Osborne also backed moves to allow bonuses to be deferred for up to 10 years and enable 100% "claw back" of bonuses where banks are propped up by the state.

Further measures, designed to improve competition, will include asking the new payments regulator to look into making it easier to switch between accounts, and beefing up the role of the new Prudential Regulation Authority.

Labour has accused the Government of ducking radical reforms and is demanding that ministers explain how it will protect taxpayers' interests when the state-owned stakes in Lloyds and RBS are sold off.

The commission, chaired by Conservative MP Andrew Tyrie, was set up by the Chancellor in the wake of the financial crisis and the Libor rate-rigging scandal.

Mr Osborne said the main recommendations of its report, published last month, were being delivered.

He said cultural reform was necessary in banking "to move the whole sector from rescue to recovery and ensure that UK banks demonstrate the highest standards, and are able to support business and drive economic growth."

He added: "The Government is determined to raise standards across the banking industry to create a stronger and safer banking system."

Business Secretary Vince Cable said: "If we're to get our economy back on track, we need to get the banking system back on track first.

"Creating new powers to jail bankers who are reckless with other people's money and getting more competition into banking, is a start."

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M&S Clothing Sales Continue To Unravel

Retailer Marks and Spencer has seen a continued decline in its troubled clothing department, according to its latest trading update.

It said like-for-like clothing sales declined by 1.6% during the 13 weeks to the end of June.

Clothing sales has been a particularly disappointing area for the retailer in recent years.

It overhauled key staff in the department an attempt to reconnect with shoppers but has been unable to halt the section's decline for eight straight quarters.

Meanwhile, lIke-for-like food sales increased 1.8% in the quarter and total UK like-for-like sales were up 0.3%.

M&S' food business contributes over half of group sales.

The retailer's annual general meeting is to be held at 1100 today.

The performance will ratchet up the pressure on management to deliver a swift turnaround when new season ranges start hitting the shops later this month.

In May the company revealed a pre-tax annual profit of £665.2m for 2012/13, down 6% on a reported profit for 2011/12 of £705.9m.

At the time boss Marc Bolland said: "In a challenging market, M&S sales grew by 1.3%. Three of the four parts of the business made strong progress.

"We are working hard to get the general merchandise performance back on track."

The 129-year-old group serves 21 million customers a week from 766 UK stores.

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Ex-Trade Minister Plots £10bn Raid On Lloyds

Lord Davies, the former trade minister, is masterminding a £10bn raid on Lloyds Banking Group that would allow the Government to offload a big chunk of its shareholding in Britain's biggest high street lender.

Sky News can exclusively reveal that Lord Davies, who served in the last Labour administration, has assembled a consortium of blue-chip City and international investors to buy as much as half of the taxpayer's 39% stake in Lloyds.

Lord Davies has been working on the plan for more than a year, according to insiders, and approached the Treasury about his proposal several months ago.

Corsair Capital, the financial services-focused private equity firm where he is a senior partner, would be part of the consortium but would not buy the stake on its own.

A former chairman and chief executive of Standard Chartered, the emerging markets bank, Lord Davies has enlisted the backing of sovereign wealth funds in Asia and major City institutions.

The deal would be structured to acquire the Lloyds stake at somewhere close to the current share price, which by one measure is now above the taxpayers' break-even price.

HSBC and JP Morgan, the Wall Street bank from which Corsair was spun out several years ago, are said to be helping Lord Davies to structure and finance a deal.

The Government paid more than £20bn to rescue Lloyds during the banking crisis of 2008, although it quickly recouped £2.5bn as a fee for the implicit guarantee the bank had enjoyed from its prospective participation in a giant scheme to insure toxic banking assets.

Lord Davies is understood to be in active dialogue with the Treasury about his proposal, which would be structured to allow the Government to share in any future rise in the Lloyds share price.

Arranging it in this way would allow George Osborne, the Chancellor, to avoid any future accusation that he had sold the Lloyds shares too cheaply.

Gordon Brown was dogged by criticism that he had sold Britain's gold reserves too cheaply, leading to broader questions about his economic competence.

The Government paid more than £20bn to rescue Lloyds

Institutions such as Standard Life Investments have been approached about participating in Lord Davies' deal, although sources played down the likelihood that Temasek Holdings, the Singaporean state-backed fund, would be involved.

The Treasury has not yet decided whether to proceed with a transaction with Lord Davies's consortium, although the former trade minister is said to be positive about the prospects of a deal.

However, one insider insisted on Saturday that it could still not happen because of competing proposals from other investors keen on buying the Government's Lloyds shares.

The exact size of the stake that the consortium would buy is unclear, although it is likely to be much larger than 10%, or a quarter of the Government's shareholding.

Lord Davies would not seek board representation as part of any deal, a source said, despite the fact that - if it bought 20% of the bank - it would become easily the biggest private sector shareholder in Lloyds.

At Friday's closing share price of 64.63p, Lloyds had a market capitalisation of £46.1bn.

Antonio Horta-Osorio, Lloyds' chief executive, will receive a larger bonus if the Treasury sells at least a third of its stake for more than 61p-a-share.

The bank's share price has recovered sharply during the last year as its underlying earnings power has become apparent.

Lloyds has been the most heavily punished of the UK banks from the scandal surrounding the mis-selling of payment protection insurance, having had to pay out well over £4bn to date.

Mr Osborne said in his Mansion House speech last month that he was actively considering proposals to sell Lloyds shares and it is conceivable that the first disposal could come as soon as  the next few weeks.

UK Financial Investments, the agency which manages the taxpayer's stake in Lloyds, is understood to be aware of Lord Davies's consortium.

The Lloyds stake is not the only state-backed banking asset for which Lord Davies is trying to make an offer. Corsair is also among three remaining bidders for more than 315 Royal Bank of Scotland branches, and has secured the backing of the Church Commissioners for England in an attempt to provide an ethical dimension to its plans.

Lloyds and Lord Davies were unavailable for comment.

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Billionaire Backs UK Music Dotcom Shazam

By Mark Kleinman, City Editor

Carlos Slim, the Mexican telecoms magnate who has become the world's richest man, is investing tens of millions of pounds in Shazam, the British digital music company.

Sky News can reveal that Mr Slim, whose net worth is estimated at $73bn (£49bn), is injecting $40m (£26.8m) through his wireless group, America Movil.

The investment will see America Movil, which is the biggest mobile network in Mexico, become a significant minority shareholder in Shazam, which uses sophisticated technology to help users identify music and then proceed to buy the track with a single click.

The deal represents a coming-of-age for Shazam, which has in the past struggled to convince many in the technology industry that it can make a sustained move into profitability.

America Movil has more than 262 million wireless subscribers across Latin America, one of the world's fastest-growing regions for mobile services.

The exact size of Mr Slim's stake in Shazam is unclear although people familiar with the deal said his investment valued the technology company at broadly the same sum as its most recent fundraising round in 2011.

That would reflect investors' caution over the valuations being attached to even the most well-known digital companies, with the soaring multiples enjoyed by some groups evoking echoes of the original dotcom boom.

Shazam came to London in 2000 after failing to secure funding in Silicon Valley, and has since gone on to become one of the UK's most internationally-recognised technology start-ups.

The music company, which is branching out into television and other consumer services, recently appointed Rich Riley, a senior Yahoo! executive, as its new chief executive.

The appointment was interpreted by technology analysts as a signal that Shazam is likely to pursue a stock market listing in the next few years.

Andrew Fisher, Shazam's executive chairman, said when Mr Riley was appointed that he expected the company to be worth $1bn (£671m) when it went public.

America Movil's investment in Shazam - which describes itself as "the world's leading media engagement company" - will be accompanied by a strategic partnership across the markets in which the telecoms group operates.

The music company now has roughly 350m users around the world, a figure that has doubled in the last two years. Its number of active monthly users has trebled to more than 70m, with sales of digital products now more than $300m (£201m) annually through affiliates such as Apple's iTunes service.

Shazam declined to comment ahead of an announcement about the investment from America Movil, which insiders said was likely as soon as Monday.

Mr Slim's wealth is estimated by Forbes magazine to put him marginally ahead of Bill Gates, the Microsoft founder.

The UK-based company employs more than 180 people and has offices in Australia, South Korea and the US.

Among Shazam's existing investors are Kleiner Perkins Caufield & Byers, one of the most prolific  firms in Silicon Valley, and Brent Hoberman, the co-founder of Lastminute.com who has gone on to create a string of other tech start-ups.

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Retailers Agree Bangladesh Factory Inspections

Leading names in European retail have backed plans for co-ordinated inspections of factories in Bangladesh, in an attempt to prevent a repeat of the building collapse that killed 1,129 people in April.

The collapse of Rana Plaza, a factory built on swampy ground outside Dhaka, ranked among the world's worst industrial accidents and galvanised brands to look more closely at their suppliers.

The new accord led to the creation of a team of inspectors to evaluate fire, electrical, structural and worker safety in factories supplying signatory brands.

Crowds gathered when news of the collapse spread on April 24

In a report published on Monday, the implementation team said the brands now had to provide full details of the Bangladesh factories from which they source goods - the first time such data would be collected or shared in such a comprehensive way.

The world's two biggest fashion retailers, Zara-owner Inditex and H&M, have agreed to accept legal responsibility for safety at their Bangladesh factories.

The scale of the disaster overwhelmed rescuers

But a number of US chains, including Asda parent firm Wal-Mart, Gap, Macy's, Sears and JC Penney have shunned the deal, saying that it gives labour unions too much control over ensuring workplace safety and have proposed a non-binding initiative.

Under the accord, every factory will undergo an initial inspection within the next nine months, with repairs initiated where necessary.

Relatives were desperate for news on their loved ones

"Brand signatories are responsible to ensure that sufficient funds are available to pay for renovations and other safety improvements," the report said.

Tesco, the world's third-largest retailer and one of the accord's backers, said last month that it had stopped sourcing clothes from a Bangladesh site because of safety concerns.

Some were lucky to make it out of the building alive

European, Bangladeshi and US officials will meet in Geneva on Monday for talks aimed at improving safety conditions and discussing the country's trade benefits, which the EU has threatened to suspend without greater action from the Bangladesh government.

Bangladesh has pledged to improve safety, but it has not offered new money to relocate dangerous buildings.

An estimated 3.6 million people work in Bangladesh's clothing sector, employing mostly women on wages as little as £30 a month.

Tax concessions offered by Western countries and the low wages paid by the manufacturers have helped to turn Bangladesh's garment exports into a £12.7bn a year industry, with 60% of clothes going to Europe.

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Superfast Broadband Roll-Out Running Late

The Government programme to roll out superfast broadband to 90% of the population is running late and lacks strong competition to protect public value, the National Audit Office has reported.

It has already announced that superfast broadband will reach 95% of the population by 2017, just two years after the original target of 90%.

Just nine out of 44 local projects are expected to reach the original target, according to the report, with the delay partly attributed to the EU State Aid process taking six months longer than expected.

The NAO said that competition among suppliers had been "limited", leaving BT as the only active participant and expected to win all 44 local projects.

It warned that the Department for Culture, Media and Sport (DCMS) had "secured only limited transparency" over the costs in BT's bids.

And it said the DCMS now expected BT to provide just 23% of the overall projected funding of £1.5bn - £207m less than expected.

Amyas Morse, head of the NAO, said: "The rural broadband project is moving forward late and without the benefit of strong competition to protect public value.

"For this we will have to rely on the department's active use of the controls it has negotiated and strong supervision by Ofcom."

Public Accounts Committee chairwoman Margaret Hodge said. "The DCMS has not had a good enough grip on its rural broadband programme."

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Slump In Pound Signals Gloom For Holidaymakers

The pound has fallen heavily against the dollar for the second time this week after key US jobs figures showed better than expected evidence of an economic recovery.

While stock markets rallied, seemingly shrugging off recent fears about US stimulus being slowly withdrawn, sterling lost two cents against the world's reserve currency when news of the positive employment data from the US emerged.

The pound, which had also dropped heavily the previous day when the Bank of England confirmed the base rate of interest was to remain at its current level for at least two years, fell below the $1.48 mark.

While such exchange rates are good news for exporters, it will hit the spending power of British holidaymakers heading to America.

The euro has also strengthened against the pound.

The US payroll rose by 195,000 in June and the jobless rate remained the same at 7.6% - raising hopes for a stronger economy in the second half of 2013. The forecast was for around 165,000.

Hiring was more robust in the two previous months than earlier estimated, with some 70,000 net new jobs in May and April.

The positive data was seen as suggesting that the US Federal Reserve may start to ease off its support for the economy as early as this autumn - while quantitative easing and low interest rates will continue to push down the pound in the UK.

The US job market and the economy have proved surprisingly resilient this year. Hiring and consumer confidence have remained steady despite higher taxes and federal spending cuts.

The US economy has added an average of 202,000 jobs a month for the past six months, up from 180,000 in the previous six. That suggests businesses are growing more confident in the economy.

If the gains continue, the Federal Reserve might start to scale back its bond purchases before the year ends.

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Ex-Trade Minister Plots £10bn Raid On Lloyds

Lord Davies, the former trade minister, is masterminding a £10bn raid on Lloyds Banking Group that would allow the Government to offload a big chunk of its shareholding in Britain's biggest high street lender.

Sky News can exclusively reveal that Lord Davies, who served in the last Labour administration, has assembled a consortium of blue-chip City and international investors to buy as much as half of the taxpayer's 39% stake in Lloyds.

Lord Davies has been working on the plan for more than a year, according to insiders, and approached the Treasury about his proposal several months ago.

Corsair Capital, the financial services-focused private equity firm where he is a senior partner, would be part of the consortium but would not buy the stake on its own.

A former chairman and chief executive of Standard Chartered, the emerging markets bank, Lord Davies has enlisted the backing of sovereign wealth funds in Asia and major City institutions.

The deal would be structured to acquire the Lloyds stake at somewhere close to the current share price, which by one measure is now above the taxpayers' break-even price.

HSBC and JP Morgan, the Wall Street bank from which Corsair was spun out several years ago, are said to be helping Lord Davies to structure and finance a deal.

The Government paid more than £20bn to rescue Lloyds during the banking crisis of 2008, although it quickly recouped £2.5bn as a fee for the implicit guarantee the bank had enjoyed from its prospective participation in a giant scheme to insure toxic banking assets.

Lord Davies is understood to be in active dialogue with the Treasury about his proposal, which would be structured to allow the Government to share in any future rise in the Lloyds share price.

Arranging it in this way would allow George Osborne, the Chancellor, to avoid any future accusation that he had sold the Lloyds shares too cheaply.

Gordon Brown was dogged by criticism that he had sold Britain's gold reserves too cheaply, leading to broader questions about his economic competence.

The Government paid more than £20bn to rescue Lloyds

Institutions such as Standard Life Investments have been approached about participating in Lord Davies' deal, although sources played down the likelihood that Temasek Holdings, the Singaporean state-backed fund, would be involved.

The Treasury has not yet decided whether to proceed with a transaction with Lord Davies's consortium, although the former trade minister is said to be positive about the prospects of a deal.

However, one insider insisted on Saturday that it could still not happen because of competing proposals from other investors keen on buying the Government's Lloyds shares.

The exact size of the stake that the consortium would buy is unclear, although it is likely to be much larger than 10%, or a quarter of the Government's shareholding.

Lord Davies would not seek board representation as part of any deal, a source said, despite the fact that - if it bought 20% of the bank - it would become easily the biggest private sector shareholder in Lloyds.

At Friday's closing share price of 64.63p, Lloyds had a market capitalisation of £46.1bn.

Antonio Horta-Osorio, Lloyds' chief executive, will receive a larger bonus if the Treasury sells at least a third of its stake for more than 61p-a-share.

The bank's share price has recovered sharply during the last year as its underlying earnings power has become apparent.

Lloyds has been the most heavily punished of the UK banks from the scandal surrounding the mis-selling of payment protection insurance, having had to pay out well over £4bn to date.

Mr Osborne said in his Mansion House speech last month that he was actively considering proposals to sell Lloyds shares and it is conceivable that the first disposal could come as soon as  the next few weeks.

UK Financial Investments, the agency which manages the taxpayer's stake in Lloyds, is understood to be aware of Lord Davies's consortium.

The Lloyds stake is not the only state-backed banking asset for which Lord Davies is trying to make an offer. Corsair is also among three remaining bidders for more than 315 Royal Bank of Scotland branches, and has secured the backing of the Church Commissioners for England in an attempt to provide an ethical dimension to its plans.

Lloyds and Lord Davies were unavailable for comment.

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