Microsoft Boss To Leave Amid 'New Direction'

Microsoft Revamp Amid PC Decline

Updated: 3:28pm UK, Friday 23 August 2013

By Thomas Moore, Sky News Science Correspondent

Microsoft has struggled as the PC market has declined.

Five years ago more than 90% of computers ran a version of the Windows operating system, according to tech analysts Forrester.

By 2012 - with Apple and Google dominating mobile computing - it was found on just 30% of devices.

In an effort to revamp its image for the touchscreen era, the company launched Windows 8 late last year.

But the lack of the iconic 'start' button and the new interface of tiled apps irritated users tied to a keyboard and mouse.

It's now done a U-turn and a soon-to-be-launched update - Windows 8.1 - will restore the start button.

Microsoft will hope the tweaks will breathe life into the operating system.

It has failed to convince PC users to upgrade so far, despite a marketing budget that's estimated to top $1bn  (£600m).

Eight months old and Windows 8 is still only found on 5.4% of computers, according to data from Net Applications.

Windows 7 still dominates, with a share of 44.5%.

The malaise is affecting PC makers.

HP recently reported that sales of desktop and notebook computers had slumped by 8% in a year.

So the stakes are high for Microsoft and the industry that relies on its software.

If the new-look Windows fails to stop the slide in sales many will ask whether the PC has a future.

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Post Office Staff In Fresh Wave Of Strikes

Workers at Crown post offices are launching a fresh wave of strikes today in a five-month row over jobs, pay and closures.

A UK-wide stoppage is being held today, staff in Scotland will strike on Monday, and union members in England, Wales and Northern Ireland will stop work on Tuesday.

The Communication Workers Union said the dispute involves up to 4,000 staff and shows no sign of being resolved.

The industrial action is linked to plans to franchise or close more than 70 Crown sites - the larger branches usually found on high streets.

The 373 Crown offices, which are usually the larger ones, represent just 3% of the total post office network.

But the CWU says its staff deal with a fifth of all customers and handle 40% of financial transactions involving things like banking and credit cards.

Dave Ward, CWU deputy general secretary, said: "This is the first time we have announced two days of strikes at the same time and the first time we have announced back-to-back days of strike action.

"Coupled with the 90% yes vote by members for industrial action short of strike, the message can't be much stronger to Post Office management.

"Crown post office workers do not agree with management's slash-and-burn approach and are prepared to take prolonged industrial action to defend jobs and services and win a fair pay rise.

"This is a company which made £94m profit last year and paid out £15.4m in bonuses to senior managers.

"It's a clear case of double standards and trampling those at the bottom for the benefit of those at the top. Enough is enough. It's time to resolve this."

Kevin Gilliland, network and sales director at the Post Office, said he was "extremely disappointed" at the CWU's decision to call further strike action.

"This action can only cause disruption to customers, cost our people money and place further pressure on the Crown network which is currently losing £37m a year.

"We must continue with our plans to turn around the Crown network to ensure we keep these branches on high streets and in city centres across the UK.

"We remain open to discussions with the CWU on pay options which do not add to the current loss of public money."

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Countryside Fears Over Solar Energy Growth

By Emma Birchley, East of England Correspondent

Rural campaigners say the push to generate green energy through giant solar farms is having an unacceptable impact on Britain's rural landscape.

Developments like Burntstalks Solar Farm in Norfolk, which has nearly 50,000 photovoltaic panels and captures enough of the sun's rays to power nearly 4,000 homes, are heralded as a sensible solution to the UK's energy needs.

However, some claim the sites are yet another blot on the landscape and are ruining the countryside.

David Hook, from the Campaign to Protect Rural England, told Sky News: "I think that if policy is not changed ... the industrialisation through solar farms and extra wind turbines is going to have a dramatic effect on the countryside, and a very negative effect."

It is only two years since the UK's first large scale sun park began generating electricity in Lincolnshire.

There are now nearly 160, mostly in rural areas, with a further 229 under construction or awaiting approval.

David Hook wants policy to change

Lightsource Renewable Energy owns and operates dozens of solar farms, including Burntstalks, near King's Lynn.

Mark Turner, the company's operations director, said: "The balance we have to strike is between a solar farm that can generally only be seen by people very close up to it and usually by fleeting glimpses through hedgerows as you are driving along, versus potential wind farms or the other alternatives of non-renewables including nuclear power stations and coal-fired power stations.

"The amount of ground taken up by the farm is minimal and what we then try to do, as far as possible, is to use the land for dual use.

"We graze sheep or plant wild flowers, so the land is used for the kind of purpose it would be used for before the panels were here."

The Government has made it clear it backs the production of solar energy, which it hopes will eventually produce 20GW of energy every year - eight times more than at present and enough to power around six million homes.

Its priority is for panels to be put on brownfield sites and the roofs of factories, hospitals and houses but according to Mr Turner, that is not always possible.

"Finding roof tops that are owned by companies we can rely on to be there in the 25 years we need to return the investment is extremely difficult," he said.

"And finding brownfield sites that are sufficiently far enough south to generate enough electricity, are close enough to the grid and aren't dedicated to other purposes, is extremely difficult."

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Nasdaq Trading Halted Due To Computer Glitch

By Sky News US Team, in New York

Trading in the Nasdaq, a major stock exchange dominated by the biggest names in technology, has resumed after a three-hour halt caused by a technical glitch.

The disruption sent brokers scurrying to figure out what went wrong and raised new questions about the pitfalls of computer-driven stock trading.

Other US exchanges were trading normally.

The Nasdaq freeze echoed earlier stock market problems, such as the sudden plunge in stocks in May 2010 that came to be known as the "flash crash" and the glitch-plagued initial public offering of Facebook last year.

The exchange sent out an alert to traders saying that trading was being halted until further notice because of problems with a quote dissemination system.

Nasdaq said it would not be cancelling any open orders, but that customers could cancel orders if they wanted to.

Securities and Exchange Commission spokesman John Nester said: "We are monitoring the situation and are in close contact with the exchanges."

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Bank Holiday Discounts: Warning From Watchdog

The consumer watchdog has urged shoppers to quiz carpet and furniture retailers before they buy this long weekend - after it found some used artificially high prices to exaggerate sales and price cuts.

The Office of Fair Trading (OFT) is investigating six chains after discovering many retailers in the sector were misleading customers into thinking they were getting a bargain by artificially inflating the original price.

It found "systematic" examples of artificially inflated reference pricing within the industry, through the use of "was" prices formerly charged by the retailer, "after sale" prices that the trader intended to charge in the future, or recommended retail prices (RRPs) set by the manufacturer.

During monitoring of the six companies, the overall average of sales of items at the reference price was just 5%.

OFT director Gaucho Rasmussen said: "This bank holiday sale season we would recommend that consumers ask sales staff when and for how long the reference price was used and also how many sales they achieved at this price."

The OFT said there were a significant number of products sold by some retailers where no sales at all took place at the artificially inflated price.

In all cases, no explanation of how and when these higher prices were established were provided.

The consumer watchdog has written to the six retailers asking them to stop using the pricing practices that mislead consumers, giving them until autumn to respond.

The OFT did not name the companies in the hope of reaching a quick resolution, however Carpetright has since confirmed it has been contacted as part of the investigation.

It said: "Carpetright strives to operate fully within all laws and regulations at all times. Carpetright is co-operating fully with the OFT and will respond to the letter in due course."

Approached by Sky News, retailer DFS declined to comment.

Mr Rasmussen said: "OFT research has found that reference pricing can mislead consumers into thinking the item they have bought is of higher value and quality.

"(With) pressure them to buy there and then so they don't 'miss out' on the deal and also impair their judgment, as buying an item immediately means they do not get the chance to search the market for the real best deals.

"This will help them to determine whether they are getting a good deal."

Richard Lloyd, executive director of Which?, the consumer campaigning charity, added: "The OFT's warning sends a clear message to carpet and furniture stores that special offers really have to be special.

"It's unacceptable that shoppers are misled into thinking they're getting a good deal when that might not be the case."

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Seaside Towns Given More Government Cash

More cash is being offered to coastal towns as part of a Government bid to boost deprived areas.

The Coastal Communities Fund is being expanded to £29m next year and will now last another 12 months to 2016.

The fund, created by the coalition in 2012, is used to invest in seaside towns and villages and is expanding due to rising marine revenue.

It is paid for by channelling money equivalent to 50% of the profits from the Crown Estate's marine activities.

Previous projects to have benefited include the harbour on the Island of Barra in the Western Isles and the North York Moors railway.

Making Wadebridge in Cornwall the first solar-powered town in Britain was also among the 51 bids to receive money in the first year.

The Treasury believes the cash already approved should deliver 5,000 jobs and 500 apprenticeships.

Chief Secretary to the Treasury Danny Alexander said: "The Coastal Communities Fund is giving our seaside towns and villages a real chance to grow as the nation benefits from our marine resources."

Communities Secretary Eric Pickles added: "This Government is committed to supporting our seaside towns and we know the Coastal Communities Fund is really making a difference."

The funding for 2014/15 financial year is split between each of the UK countries.

England receives £22.15m, Scotland's Highlands and Islands £2.85m, the rest of Scotland £1.95m, Wales £1.55m and Northern Ireland £0.6m.

Expansion of the fund comes after the Centre for Social Justice (CSJ) warned some seaside towns were becoming "dumping grounds for poverty and social breakdown".

Its study revealed seven of the 20 areas in the UK with the highest level of working-age people on out-of-work benefits were on the coast.

On key poverty measures such as teenage pregnancy and school failure, it found some resorts now suffer from problems as severe as deprived inner-city areas.

CSJ director Christian Guy said: "Investment in our seaside towns is welcome, but this should be only the start.

"We need to boost skills, attract businesses, provide decent housing and encourage family stability.

"This would breathe new life into these towns - not just for visitors, but the people that live there."

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Facebook Plans Cheap Web For Poorer Countries

Some of the world's biggest technology companies have joined forces to provide cheaper internet access for people in developing countries.

Led by Facebook, the project aims to get more of the world's seven billion people online by providing low-cost smartphones.

It hopes to cut the cost of providing mobile internet services to 1% of its current level within the next decade.

Developers will also make apps that use less data, allowing networks to run more efficiently with a greater number of users.

Facebook, for example, hopes to reduce the amount of data its Android app consumes from an average of 12MB per user per day to 1MB.

Mark Zuckerburg, founder and CEO of the social networking site, said: "Connecting the world is one of the greatest challenges of our generation.

"There are huge barriers in developing countries to connecting and joining the knowledge economy.

"Internet.org brings together a global partnership that will work to overcome these challenges, including making internet access available to those who cannot currently afford it."

An estimated two-thirds of the world's population is still without internet access, with the number of people using websites and email growing at around 9% a year.

Internet.org, which is backed by mobile phone manufacturers Samsung, Nokia and Ericsson, as well as engineering companies Qualcomm and Mediatek and software provider Opera, is one of a number of projects aimed at increasing internet usage.

Google recently announced Project Loon, which uses balloons to provide internet access in remote parts of the world, while Twitter has made its service free on some mobile phone networks.

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Threat To 250 Jobs At Heinz UK And Ireland

Food giant Heinz has warned that almost 250 jobs could be cut in the UK and Ireland.

The firm said it had developed a new "streamlined structure", which could include the loss of 248 office jobs, adding it regretted the impact it would have on its employees.

Earlier this month, Heinz laid off 600 employees in the United States. 

Heinz said in a statement: "As part of our transition to a private company, the senior leadership team has examined every part of our global business to better position Heinz for accelerated growth in a very competitive global market.

"The proposal is subject to a consultation process with employees and their representatives, and Heinz is committed to ensuring all employees are treated with the utmost respect and compassion."

It added that if a decision is made to proceed with the proposals, the company would offer enhanced severance benefits and help affected employees to pursue new career opportunities.

"The difficult actions we are proposing to take will, if implemented, better position the company to support and fund our next chapter of growth while further strengthening our world-leading brands," it added.

"Our new organisational structure will simplify, strengthen and leverage the company's global scale, while enabling faster decision-making, increased accountability, and accelerated growth."

In June, Berkshire Hathaway, the private equity firm operated by former richest man in the world Warren Buffett, and 3G Capital, which owns Burger King, acquired Heinz for £14.85bn. 

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Millions To Share £1.3bn Bank Compensation

Regulators have confirmed a compensation fund of £1.3bn for up to seven million victims of another insurance mis-selling scandal.

The announcement, which was made 12 hours after Sky News was handed details of the Financial Conduct Authority's agreement with banks, outlined how Card Protection Plan Limited (CPP) and 13 high street banks and credit card issuers would pay.

The FCA said the mis-selling centred on CPP's Card Protection and Identity Protection policies between 2005 and 2011 - with many people not even needing the cover.

York-based CPP - which has already been fined £10.5m for its behaviour - was brought to the brink of bankruptcy by the case but secured a new financing deal with its lenders last month to assure its future.

The FCA said today: "Customers were given misleading and unclear information about the policies so that they bought cover that either was not needed, or to cover risks that had been greatly exaggerated.

CPP needed new funding to survive the mis-selling scandal

"As well as CPP selling directly to customers, high street banks and credit card issuers introduced millions of customers to CPP," the regulator said.

It named those institutions as Bank of Scotland, Barclays, Canada Square Operations (formerly Egg), Capital One, Clydesdale, Home Retail Group Insurance Services, HSBC, MBNA, Morgan Stanley, Nationwide Building Society, Santander UK, The Royal Bank of Scotland and Tesco Personal Finance.

The scandal - while already in the public domain - marks another round of compensation by banks for their past behaviour in the wake of the mis-selling of Payment Protection Insurance (PPI) which may eventually cost UK banks a total of £20bn.

This means redress itself is not expected to be paid out until Spring 2014. The time between now and then will be spent seeking Court approval of the Scheme and ensuring CPP customers' voices are heard.

The compensation scheme must be approved by victims

Martin Wheatley, chief executive of the FCA, commented: "We have been encouraged that, working closely with the FCA and despite their different business needs, a large number of firms have voluntarily come together to create a redress scheme that will provide a fair outcome for customers.

"This kind of collaborative and responsible approach is a good example of how firms are taking more responsibility and helping - step by step - to rebuild trust.

"We believe this will be a good outcome for customers who may have been mis-sold the card and identity protection policies.

"Subject to CPP's customers approving the scheme, these policy holders will be able to claim a full refund of premiums with interest."

The FCA added that if the scheme were approved, it could start making payments to victims from spring 2014.

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Tax Office Warns Football Clubs Over Low Pay

By Enda Brady, Sky News Correspondent

Dozens of top-flight English football clubs are to receive a letter from tax inspectors warning them that they must pay staff the minimum wage or face a fine of up to £5,000 and potential prosecution.

HM Revenue and Customs (HMRC) says it will soon begin "targeted checks" amid claims that some club mascots are not paid at all for their match-day work.

National minimum wage laws make it illegal not to pay people classed as workers.

"Paying the National Minimum Wage (NMW) is not a choice, it's the law," said Michelle Wyer, assistant director of HMRC's minimum wage team.

"It can't be right that as some players are paid millions of pounds, other members of staff are paid below the legal limit.

"HMRC enforces the rules, protecting workers from rogue employers and ensuring they get at least the wage to which they are legally entitled.

"Where an employer ignores these rules, we will take steps to ensure arrears are paid out in full and the employer fined. In the most serious cases, criminal prosecution can follow."

The move is being described as "pre-emptive" ahead of a "series of targeted checks" within football after HMRC received complaints about non-payment from at least one current club mascot.

In April Swansea City and Reading advertised for unpaid interns, including one position which lasted for a year.

Many people will be surprised that this happens within football - where some players can earn as much as £250,000 per week - but given the high profile nature of the English game clubs will always have a ready supply of young people keen to break into what they see as a glamorous, attractive industry.

Last year HMRC enforcement action resulted in 708 employers receiving automatic penalty charges of up to £5,000 and 26,519 employees receiving back pay totalling over £4m, topping up wages that had previously been below the legal minimum rate.

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Gary Bolton Jailed Over Fake Bomb Detectors

A businessman has been sentenced to seven years in prison for making and selling fake bomb detectors.

Gary Bolton, 47, made millions of pounds selling the devices around the world, boasting they could detect explosives, drugs, ivory, tobacco and even money.

In actual fact they consisted of nothing more than empty boxes with handles and antennae which he made at home and at his Global Technology Ltd offices in Kent.

He denied two counts of fraud as a judge at the Old Bailey described the equipment as "useless" and "dross".

Bolton had background in research or security

Sky's crime correspondent Martin Brunt, at the court, said Bolton spent £1.82, plus the glue and antennae, on each product and then sold them for up to £15,000 each.

The court was told Bolton's company had a turnover of almost £3m, with up to 5,000 devices made.

Prosecutor Richard Whittam QC said tests proved the detectors, first called the Mole and later remarketed as the GT200, performed no better than random searches for explosives.

Bolton claimed they worked with a range of 700 metres at ground level and 2.5 miles (4km) in the air and said they were effective through lead-lined and metal walls, water, containers and earth.

But "double-blind" tests on a Mole device as far back as 2001 showed it had a successful detection rate of just 9%.

Sentencing the father-of-three, judge Richard Hone QC said Bolton had maintained the "little plastic box" was a piece of working equipment, and that he continued to "peddle" it to scores of international clients - including for use by armed forces - despite evidence proving it was "useless".

He added: "You were determined to bolster the illusion that the devices worked and you knew there was a spurious science to produce that end.

"They had a random detection rate. They were useless.

Bolton's company had a turnover of almost £3m

"Soldiers, police officers, customs officers and many others put their trust in a device which worked no better than random chance.

"The jury found you knew this but you carried on. Your profits were enormous."

Mr Whittam said Bolton admitted in interview to having no background in science, research, training or security, the court heard.

Around 1,200 devices were sold to Mexico, while orders were also shipped to parts of Asia and the Middle East.

The devices are still being used in Thailand.

Detective Inspector Roger Cook, from the City of London Police's Overseas Anti-Corruption Unit, said Bolton put "people's lives and livelihoods at serious risk, but his sole consideration was how much money he could make".

"Bringing Bolton to justice is the result of a long, complex and far reaching international investigation and his seven-year prison sentence should act as a warning to others who seek to act corruptly overseas with the belief that they will go undetected," he added.

In May James McCormick was jailed for 10 years for also selling fake bomb detectors. He made £50m selling his devices for up to £27,000 each to groups including the Iraqi military and police in Kenya.

Prosecutors in the case said British officers in Iraq believed the detectors may have cost dozens of lives.

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Top Taxman Takes Foxtons' Estate Agency Role

By Mark Kleinman, City Editor

Britain's top taxman is joining the board of Foxtons as the estate agency chain seeks to exploit the buoyant housing market with a £500m-plus flotation.

Sky News understands that Ian Barlow, the lead non-executive director at HM Revenue & Customs (HMRC), will be among a crop of new board members unveiled alongside Foxtons' intention to list on the stock market next week.

Mr Barlow, who spent 37 years with KPMG, will join the resurgent company alongside Annette Court, a former boss of Direct Line Group and Zurich Financial Services, and Garry Watts, the one-time chief executive of SSL International, the consumer products group.

News of the appointments comes on the day that figures from the Council of Mortgage Lenders (CML) showed that borrowing by homebuyers soared last month to its highest level since the 2008 financial crisis.

The CML said gross mortgage lending rose to £16.6bn in July, with Caroline Purdey, an analyst at the trade body, adding that the data "reinforces a growing evidence base of a strengthening in the housing and mortgage markets".

Part of the housing market revival is down to Government stimulus packages such as Help to Buy, George Osborne's initiative to offer assistance to first-time buyers. The scheme will be extended to a wider pool of buyers early next year.

Mr Barlow also serves as a director of companies including Smith & Nephew, the medical devices maker, but his appointment at Foxtons will be intriguing because of the importance attached to efficient tax-planning by private equity-backed companies.

Foxtons' owner, BC Partners, is expected to announce the flotation plan next week.

The estate agency chain, known for its garish shops and fleet of cars, rode the property boom under its founder, Jon Hunt, before selling to BC for £375m in 2007 - a deal which catapulted him into the ranks of Britain's super-rich.

The subsequent financial crisis and recession-hit UK economy, however, led to a sharp downturn in the property market, and left estate agents such as Foxtons unable to service their debts.

The company was taken over by its lenders before BC bought them out in 2012. Foxtons' profits have surged during the last two years, buoyed by the booming London housing market, which has increasingly diverged from much of the rest of the country.

The rival chain Countrywide took advantage of buoyant equity markets to go public, while Romans, a smaller estate agents based in Berkshire, is on the verge of being sold to Bowmark Capital, another private equity firm, for about £50m.

A BC Partners spokesman declined to comment on the appointment of the new board members.

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Anti-Fracking Protesters Cleared By Police

Police have been forcibly clearing protesters from a road outside a potential site for fracking in Balcombe, West Sussex.

Activists are taking part in a six-day Reclaim The Power demonstration after Cuadrilla began carrying out exploratory drilling at the site.

Hundreds of people have staged noisy protests in the face of a police presence of more than 400 officers.

Campaigners have submitted a formal complaint about the "violent" arrest of one protester, claiming he was detained by an officer without any identifying number.

Police said that 29 people had been arrested at Balcombe for public order offences, including Green Party MP Caroline Lucas.

They were held after Sussex Police served a notice under section 14 of the Public Order Act, believing the crowd might cause public disorder, serious damage to property or serious disruption to the life of the community.

Caroline Lucas joined protesters at the site, and was among those arrested

Shouts of "shame on you" and "no violence" erupted from the crowd as police tried to move the protesters back to the main gate of the site.

Demonstrators chanted: "We are peaceful, what are you?"

The No Dash For Gas group said that the "excessive force" used on one man was caught on camera and is demanding the police officer be suspended.

A protester is removed from the Cuadrilla HQ in Lichfield

It claims: "He was violently arrested, wrestled to the floor, his head pushed into the ground by an officer's hands and knees, whilst the officer in question was not wearing epaulettes with an ID number."

Sussex Police said it was looking into the video and that the officer's epaulette may have fallen or been pulled off.

Vanessa Vine, founder of Frack Free Sussex and Britain and Ireland Frack Free, said the police presence was disproportionately heavy and added that Reclaim The Power were "not nasty, violent people" but "altruistic people who are challenging what the Government is doing".

Protesters glued their hands together through a plastic pipe

Earlier, Sussex Police said on Twitter: "We would like to reiterate that protesters aren't being kettled and are free to leave the site as they wish."

Cuadrilla condemned the "illegal direct actions" against its staff and operations.

Campaigners opposing the controversial process of extracting shale gas blockaded the firm's headquarters while others superglued themselves to the building occupied by a PR firm used by the energy company.

The action at Cuadrilla in Lichfield, Staffordshire, and at PR company Bell Pottinger in central London comes on the first of two days of "mass civil disobedience" which campaigners have pledged to carry out.

Protesters' tents outside the office in Lichfield

In a statement, Cuadrilla said: "Protesters broke into our Lichfield office, harassed our staff and chained themselves to filing cabinets.

"The police are on site dealing with this. We condemn all illegal direct actions against our people and operations."

The firm insisted that the morale of its staff at various sites is "fine", and they and the teams supporting the company are "doing a magnificent job".

"They know that what we are doing is legal, approved and safe, and that shale gas is essential to improve our energy security, heat our homes, and create jobs and growth," the firm said.

"Cuadrilla is rightly held accountable for complying with multiple planning and environmental permits and conditions, which we have met and will continue to meet.

"Clearly we are held to one set of legally enforceable standards while some protesters believe that they can set out and follow their own."

Campaign group No Dash For Gas said six protesters superglued themselves to the glass door of Bell Pottinger at 8am and deployed reinforced arm tubes to stop anyone else getting inside.

Meanwhile, it said 20 protesters shut down the Cuadrilla site in Lichfield by blockading it with their bodies. It said two people inside the building had also hung banners from it saying: "Reclaim the power" and "Power to the people".

A group of around 20 protesters also demonstrated outside the constituency office of Balcombe MP and Cabinet Office minister Francis Maude.

Activists also targeted the home of former Tory minister and George Osborne's father-in-law Lord Howell, who drew criticism recently when he said fracking should take place in England's "desolate" North.

The group erected an estate agent's sign outside the Peer's house reading 'For Shale - Desolate Properties Ltd'.

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Petrol Price Warning As Retailers Forecast Hikes

Fuel prices are set to rise by as much as 5p a litre, according to the Petrol Retailers' Association (PRA).

It comes amid civil unrest in Syria and Egypt as well as a reduction in Libya's oil exports, which are down by a third.

The PRA's forecast follows a rise in Brent crude oil, which pushed past the $110 a barrel mark last week, a 10% increase since the end of June.

Goldman Sachs Group has also predicted that oil prices could go up to $115 a barrel in the 'very near term'.

Brian Madderson chairman of the PRA said: "UK petrol prices have not yet seen the full impact of this crude oil increase due to the rapid and slightly unexpected revaluation of pound sterling from $1.48 to $1.56.

"Therefore it was concerning to read recent comments from the City that the 'pound is overblown' and will soon come hurtling down towards the $1.45 level."

He added: "We calculate at current wholesale prices that this will add a further 5p per litre at the pump before the end of September and hit businesses and households in the pocket at a time when pundits are forecasting a continued increase in retail sales to drive growth in the economy. 

"Should the Middle East tensions escalate further and crude oil prices react accordingly, the Bank of England's new inflation targets could be significantly challenged.

"The sooner the EU Competition investigation into allegations of oil price fixing is completed, the more certain we can be that our retail fuel prices are only being influenced by macro-economic and political factors and not anti-competitive actions of the oil companies."

The average price of petrol across the UK is currently £1.37 a litre, according to Experian Catalist.

The PRA explained that if its predictions are right and prices rise, it will be fast approaching the record high of £1.42 a litre, which the nation saw in April.

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Men Get Bigger Bonuses As Gender Pay Gap Widens

Average bonuses for male managers were twice as much as those of their female counterparts last year, according to new research.

The Chartered Management Institute (CMI) said the gender pay gap was widening as a result of bonuses.

Last year male managers received average bonuses of £6,442, compared to £3,029 for females.

The CMI said that was on top of basic salaries almost 25% higher for men.

The study of 43,000 managers showed the difference in bonuses would equate to over £141,000 more for males, than females doing the same job over the course of a working lifetime.

According to the report, the pay gap is particularly large at senior levels, with female directors paid an average bonus of £36,270, compared to £63,700 for males.

Ann Francke, chief executive of the CMI, said: "Despite genuine efforts to get more women on to boards, it's disappointing to find that not only has progress stalled, but women are also losing ground at senior levels.

"Women are the majority of the workforce at entry level but still lose out on top positions and top pay. The time has come to tackle this situation more systemically.

"If organisations don't tap in to and develop their female talent right through to the highest levels, they will miss out on growth, employee engagement, and more ethical management cultures. And that's not good for business."

Mark Crail of salary specialists XpertHR, which helped with the research, added: "There is no good reason for men to still be earning more in bonuses than women when they are in very similar jobs.

"But it's often the case that men and women have different career paths, with 'male' roles more likely to attract bonuses.

He added: "While women are generally getting lower bonuses than men, especially at senior levels, they may be entering occupations where there is less of a culture of bonus payments.

"The question for employers is why that's the case."

Minister for Women and Equalities Maria Miller said, "These figures are yet another damaging example highlighting that, in the world of work, women still lose out to their male counterparts and that the playing field is far from equal."

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Mortgages 'Most Affordable For 14 Years'

By Nick Martin, News Correspondent

Mortgages are more affordable now than at any time in the past 14 years, according to the latest figures.

Monthly payments now account for 27% of a new borrower's income in the second quarter of 2013, well below the average for the past 30 years.

Lower house prices and reduced mortgage interest rates have been the main drivers behind the significant improvement in affordability, according to the Halifax.

Halifax mortgage director Craig McKinlay said: "Substantial mortgage rate reductions and lower house prices have led to a significant improvement in mortgage affordability since the peak of the housing market six years' ago.

"The Funding for Lending Scheme has helped lenders to cut mortgage rates causing a further modest improvement in affordability over the past year despite the modest rise in house prices nationally."

It is good news for first-time buyers.

James Almond from Bramhall near Stockport has just got on to the properly ladder.

The 38-year-old bar manager said he felt the right deals were available to take the plunge.

He said: "I used a mortgage broker to look at the best deals and in the end it was quite affordable.

"Many of my friends aren't so lucky and are still living with their parents because the deposits required are so large."

But there remains a clear north-south divide when it comes to mortgage affordability, according to the Halifax.

Mortgage payments are at their lowest in Northern Ireland where they are just 17% of incomes compared to 36% in Greater London.

Independent mortgage consultant Richard Ignatowicz said the market can change quickly.

 "We can't just say mortgages are now more affordable than ever. It doesn't mean much in isolation.

"Borrowers need to be cautious about changes on the horizon. Will they still be able to afford a mortgage when the rate reverts to 5%? Tthat's the real question."

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A £350m Donation To Nation That Can't Be Used

An unspent donation made to the Government 85 years ago, which is now worth £350m, cannot be touched because it won't fulfil conditions of its use - paying off the national debt.

The anonymous donation of £500,000 was made in 1928 and established a fund which was designed to help the Government pay off the UK's debt.

It was made with a strict request that it should not be touched until it was able to reduce the national debt to zero.

Although it has grown 700-fold since the 1920s, it is unlikely to achieve its target - the national debt currently stands at £1.3trillion.

While the fund is growing at a rate of £5m to £10m a year, Britain's national debt rocketed by an estimated £121bn in 2011/12.

In the meantime, the fund, called The National Fund, is now managed by Barclays and is likely to keep on growing.

The anonymous donor who set it up at its outset is believed to have done so in response by a call from Conservative Prime Minister Stanley Baldwin, who wrote to the Financial Times in 1919.

He suggested it would be patriotic for British citizens to contribute towards paying off the national debt, which at that point had reached 140% of the total amount of money earned in one year by the UK (GDP).

Barclays Wealth and Investment Management is the fund's trustee

By 1927, the national debt had reached 160% of GDP and it is thought that the donor was prompted to set up the fund with the belief that it would grow sufficiently to pay it off.

The National Fund has now grown to become one of the largest charities in the UK by net assets.

But unlike most charities, it takes in no donations and provides no handouts to needy causes.

Papers lodged with the Charities Commission in 2012 said: "The aim of the charity is to create a fund, that either on its own or combined with other funds, is sufficient to discharge the National Debt.

"The ultimate beneficiary of the National Fund is the National Debt Commissioners."

The papers say the fund increased in value by £12m in 2012 which all came from dividends on investments. Last year it spent £570,000 on managing the fund and £430,000 on other activities.

Barclays has been trying for four years to get permission to use the money to make charitable grants or to turn it over to the Treasury, but any change would have to be approved by a court.

A spokesman for Barclays said: "We've been working ever since we became the trustee to change the original objects, which say the funds can be used only to pay off the entire national debt.

"We are working with the Charity Commission and the attorney general's office to look at how best to take the fund forward."

This week it emerged Joan Edwards left £520K to the Government

A spokesman for the attorney general's office said: "There has been correspondence between the Charity Commission, the trustees and ourselves over the National Fund.

"We are looking at a number of options for the future of the Fund, consistent with its object of extinguishing or reducing the national debt.

"It would not be right to comment further whilst this process continues."

A spokeswoman for the Charity Commission said is it continuing dialogue with the trustee and the attorney general's office regarding the charity.

This week, the Tories and Liberal Democrats gave up a £520,000 bequest from former nurse Joan Edwards amid confusion over whether she actually meant the money to go to the state or to the political parties in power.

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Swedes Plot £1bn Swoop For UK Manufacturer

By Mark Kleinman, City Editor

Another slice of Britain's industrial base is poised to fall into European hands with a near-£1bn takeover of Edwards Group, a Sussex-headquartered high-tech manufacturer.

Sky News can reveal that Edwards, which is listed on New York's Nasdaq stock exchange, is in advanced talks about a takeover by Atlas Copco, a major Swedish industrial combine.

A deal for Atlas Copco to buy Edwards could be announced as soon as next week, according to banking sources in the US.

Although it is not quoted in London and specialises in making products such as high-pressure vacuum pumps which are unfamiliar to the general public, the deal will nevertheless be closely-watched in Britain.

Edwards' takeover by Atlas Copco will follow a recently-agreed £3.4bn deal for Schneider Electric of France to buy Invensys, another British manufacturing stalwart.

Edwards employs hundreds of people at its Crawley head office and manufacturing facilities and is widely-held to be among the world's most advanced companies in its field. Its products are an important component in the supply chains of flat-screen television and solar cell manufacturers.

Vince Cable, the Business Secretary, would be alarmed if the deal was predicated upon the closure of any UK facilities but such a move from Atlas Copco was unlikely, said one banker.

Wall Street insiders said the Swedish group, which has a market capitalisation of more than £20bn, planned to offer around $9.20-a-share for Edwards, a healthy premium to the $8 at which it listed on Nasdaq last year.

It is unclear whether Edwards' board has formally voted to approve the bid, but insiders said that investment bankers at Barclays and Lazard, who are advising the British-based company, had recommended that it should do so.

Edwards opted for a listing on Nasdaq over London last year after concluding that it would achieve a higher rating for its shares if it went to the US, and next week's deal will signal the end of its brief tenure on the technology-focused exchange.

A supplier of vacuum pumps to the world's largest semiconductor manufacturers, Edwards was spun out of the BOC gases group after it was acquired by Linde, a German rival, in 2006.

Large chunks of Edwards' shares are still held by CCMP Capital and Unitas, the two private equity firms which acquired it from BOC.

Edwards had a market value of just over $950m (£608m) at Friday's closing share price of $8.45.

The offer from Atlas Copco, which is larger than Electrolux and Volvo, two other big Swedish manufacturers, is expected to crystallise another big financial gain for CCMP and Unitas.

It will also add another dimension to the Stockholm-based company's operations, which include making machines for the mining industry, air compressors and power tools.

Edwards employs more than 3000 people around the world, although it has shifted some jobs from the UK to lower-cost manufacturing sites overseas, including in Asia, recently unveiling plans for a vast factory in China's Shandong Province.

The company is now chaired by Nick Rose, a former finance director of Diageo, the drinks company, who is on the boards of BAE Systems, BT Group and Williams Grand Prix Holdings, the owner of the Formula One team.

Atlas Copco's bid comes six months after Edwards named Jim Gentilcore, who already sat on the company's board, as its chief executive, replacing former Jaguar Land Rover and JCB executive Matthew Taylor.

It was unclear on Saturday whether Mr Gentilcore would remain in place if the takeover of Edwards is completed.

Neither Atlas Copco nor Edwards could be reached for comment.

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