General Motors Fined $35m For Recall Delay

The US government has fined General Motors the maximum $35m (£21m) for delayed recalls of vehicles with faulty ignition switches.

Thirteen people died in crashes linked to the problem, the company says, but lawsuits put the actual death toll at 53. 

GM has admitted it knew about the problem for more than a decade.

But it did not recall the vehicles until this year, even though car-makers are supposed to report safety defects within five days of discovery.

A deadly Chevy Cobalt crash in 2006 could be linked to the faulty switch

The Justice Department is investigating GM's delayed recall of 2.6 million Chevrolet Cobalts, Saturn Ions and other cars.

The Department of Transportation's National Highway Traffic Safety Administration is also looking into the scandal.

But that agency has itself been criticised for failing to act on reports it received in 2007 and 2010 about the faulty switches.

The defective part was prone to turning off, causing the engine to shut down and disabling the air bags.

A grieving mother watches GM's boss testify at Capitol Hill in April

The Detroit-based firm first spotted the problem during pre-production in 2001.

However, it was not until February 2014 that it instigated a recall.

GM engineers held meetings about the issue in 2005, but decided against a fix because it would take too long and cost too much money.

The switch plunger lacked pressure to stop it accidentally turning off

Transportation Secretary Anthony Foxx said in a news conference on Friday: "Literally silence can kill.

"GM did not act and did not alert us in a timely manner. What GM did was break the law." 

The fine amounts to less than a day's revenue for the car-maker, which made $37.4bn (£22.2bn) in the first quarter.

Mr Foxx is urging Congress to pass legislation that would raise the fine against GM to $300m (£178m).

As part of its agreement with the US government, GM has also acceded to government oversight on safety issues.

In a statement confirming the agreement, GM chief executive Mary Barra said: "GM's ultimate goal is to create an exemplary process and produce the safest cars for our customers - they deserve no less."

She appeared before Congress in April and offered her "sincere apologies" for the scandal.

On Thursday, General Motors said it had issued five more recalls, covering about 2.7 million vehicles in the US, mostly for tail lamp malfunctions.

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Rothschild Gears Up For £150m Autodata Deal

By Mark Kleinman, City Editor

A division of the Rothschild banking dynasty is preparing a swoop on one of the world's biggest suppliers of automotive data in a deal worth close to £150m.

Sky News understands that Five Arrows Principal Investments, which manages a £500m fund which invests in companies in Western Europe, has teamed up with Bowmark Capital to acquire Autodata.

Five Arrows and Bowmark, which owns businesses such as Drake & Morgan, a London-based restaurant chain, are understood to have been granted a period of exclusivity until next week to negotiate a takeover of Autodata.

The investment arm of the Rothschild empire is little-known outside the City but has invested in a number of UK-based businesses, including Kisimul, a provider of residential care, and The Binding Site, a medical diagnostics company.

The two funds are understood to have outbid rivals such as Hearst, the American publishing giant, Inflexion Private Equity and CAP, another automotive data provider which its owner, Montagu Private Equity, had planned to merge with Autodata.

CAP was eliminated from the auction several weeks ago, leading Montagu itself to re-enter as a bidder in its own right.

A deal is likely to cost as much as £150m, much higher than original estimates of the sale price, reflecting buoyant demand from the automotive after-market for vehicle data.

Autodata was put up for sale several months ago, with Livingstone Partners, an advisory firm, appointed to handle the sale.

The deal has attracted interest from at least a dozen potential buyers, according to people close to the situation, with Autodata expected to be valued at somewhere in the region of £50m.

Montagu's interest stems from its ownership of CAP, which it bought from Top Right Group - formerly Emap, the media conglomerate - in 2012 for £170m.

Autodata supplies information about 17,000 models produced by 80 vehicle manufacturers, giving professional workshops access to the relevant manufacturers' information needed for service repair and diagnostic work.

Among the other bidders for Autodata were Francisco Partners, Hg Capital and TA Associates, underlining the intense demand among private equity firms for places to invest the capital they have raised from investors.

Bowmark and Livingstone Partners declined to comment.

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Co-Op Vote On 'Slimmed-Down' Restructure

The future of the struggling Co-op group is to be decided today as radical reforms are voted on at its annual general meeting.

Former City minister Lord Myners has proposed a major shake-up of the 150-year-old business which reported losses of £2.5bn for 2013.

But Lord Myners fears that traditionalists within the organisation are "still stuck in denial" about its problems and will not support the plans.

These include sweeping away the existing 20-strong board of representatives from the co-operative movement, who currently include an engineer, a plasterer and a retired deputy head teacher.

He wants to replace this with a slimmed-down "plc and beyond" structure staffed by professionally-trained directors.

Lord Myners has said the Co-op is 'not fit for purpose'

The former Marks & Spencer chairman was appointed a director of the Co-operative Group in December but has announced he is to leave following this weekend's vote.

He has said it was apparent to him from the first time he attended a board meeting that not one of its members had the ability to address the complex issues faced by a group burdened with £1.4bn of debt.

Lord Myners believes that the Co-op will survive but faces the prospect of having to sell assets such as its £1bn funeral care business, in order to meet the demands of its lending banks, if it does not adopt reform.

Resistance to the changes saw chief executive Euan Sutherland leave the group earlier this year saying it was ungovernable.

This weekend's ballot will be decided by representatives of its independent societies and affiliated organisations - who hold 22% of the vote - and others voting on behalf of its regional membership boards making up the remaining 78%.

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Dixons Carphone Merger Is Boardroom Challenge

Dixons Carphone Eyes The World Of Future Tech

Updated: 11:53am UK, Thursday 15 May 2014

By Tom Cheshire, Technology Correspondent

It all sounds pretty retro.

The new company to be formed by the merger of Dixons and Carphone Warehouse will be called Dixons Carphone - very 1980s.

And one of its businesses is PC World - which feels slightly more recent, but is still about as dated as an episode of Friends.

But the £3.7bn merger could be the future of how we buy technology in the UK.

And it's all about internet-enabled toasters.

Let me explain.

For some time now, technologists have been prophesying the "internet of things".

This is the quasi-nirvana whereby physical objects in the real world - including toasters, but also cars, thermostats, washing machines, front doors - all become part of the network of networks that is the internet.

These devices all talk to each other, machine-to-machine, and are all controllable digitally - from the web, your smartphone or Google Glass. (The Sonos home music player, built into ceilings but controlled from your smartphone, is an existing example of this.)

According to research firm Gartner, 26 billion "things" will join the internet by 2016.

Tom Coates' house is what the internet of things looks like in the real world. A British designer working in San Francisco, he has installed sensors around his home - and given his house a Twitter account, @houseofcoates.

Weighing scales, light switches and thermostat all chip in, resulting in tweets like: "Tom just weighed himself. I'm going to leave it up to him to tell you if it's good news though."

The house is a playful first step towards an internet of things. It's easy to imagine where to goes next: lawn sprinklers which turn on if the house detects it has been days without rainfall, toasters that start toasting when your morning alarm goes off, lights that turn off when you're not in the room - or the weighing scales to go online and order healthier food if Mr Coates' weight increased too much. Then beyond.

Mr Coates is an early adopter. Recently he wrote: "For me the most important change is the move from Internet of Things concept cars and interaction design experiments, to a new world where the things we're building are simply, cleanly useful."

He cites Nest - the smart thermostat and alarm maker recently bought by Google - as an example of this.

At tech show CES this year, Samsung also showed off smart fridges and washing machines.

And this is where Dixons Carphone comes in. After all, you need somewhere to buy all this gear.

Carphone Warehouse has long excelled at reinventing itself with each wave of mobile technology, from carphones through mobiles, smartphones, tablets and the wearables to come.

The next stage is the integration of these mobile devices with the household - the territory of Currys and PC World.

The new company will be able to offer not just standalone products, but integrated, personalised systems.

It might help with some of the more complex installations in your house.

Rather than catching up with new consumer tech habits, Dixons Carphone is looking to get ahead of them.

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Dixons And Carphone Warehouse Merger Agreed

Dixons Carphone Eyes The World Of Future Tech

Updated: 11:53am UK, Thursday 15 May 2014

By Tom Cheshire, Technology Correspondent

It all sounds pretty retro.

The new company to be formed by the merger of Dixons and Carphone Warehouse will be called Dixons Carphone - very 1980s.

And one of its businesses is PC World - which feels slightly more recent, but is still about as dated as an episode of Friends.

But the £3.7bn merger could be the future of how we buy technology in the UK.

And it's all about internet-enabled toasters.

Let me explain.

For some time now, technologists have been prophesying the "internet of things".

This is the quasi-nirvana whereby physical objects in the real world - including toasters, but also cars, thermostats, washing machines, front doors - all become part of the network of networks that is the internet.

These devices all talk to each other, machine-to-machine, and are all controllable digitally - from the web, your smartphone or Google Glass. (The Sonos home music player, built into ceilings but controlled from your smartphone, is an existing example of this.)

According to research firm Gartner, 26 billion "things" will join the internet by 2016.

Tom Coates' house is what the internet of things looks like in the real world. A British designer working in San Francisco, he has installed sensors around his home - and given his house a Twitter account, @houseofcoates.

Weighing scales, light switches and thermostat all chip in, resulting in tweets like: "Tom just weighed himself. I'm going to leave it up to him to tell you if it's good news though."

The house is a playful first step towards an internet of things. It's easy to imagine where to goes next: lawn sprinklers which turn on if the house detects it has been days without rainfall, toasters that start toasting when your morning alarm goes off, lights that turn off when you're not in the room - or the weighing scales to go online and order healthier food if Mr Coates' weight increased too much. Then beyond.

Mr Coates is an early adopter. Recently he wrote: "For me the most important change is the move from Internet of Things concept cars and interaction design experiments, to a new world where the things we're building are simply, cleanly useful."

He cites Nest - the smart thermostat and alarm maker recently bought by Google - as an example of this.

At tech show CES this year, Samsung also showed off smart fridges and washing machines.

And this is where Dixons Carphone comes in. After all, you need somewhere to buy all this gear.

Carphone Warehouse has long excelled at reinventing itself with each wave of mobile technology, from carphones through mobiles, smartphones, tablets and the wearables to come.

The next stage is the integration of these mobile devices with the household - the territory of Currys and PC World.

The new company will be able to offer not just standalone products, but integrated, personalised systems.

It might help with some of the more complex installations in your house.

Rather than catching up with new consumer tech habits, Dixons Carphone is looking to get ahead of them.

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E.ON To Pay Customers £12m Over Mis-Selling

Energy Complaints Soar By Staggering 224%

Updated: 1:53am UK, Monday 07 April 2014

Complaints about energy companies have trebled in the first quarter of this year, according to the energy sector's ombudsman who is calling for "increased transparency".

The record figures showing a 224% rise in the first three months of this year come after regulator Ofgem said it was referring the energy sector to the Competition and Markets Authority for a full-scale competition inquiry.

Between January and March, complaints trebled to 10,638, compared with 3,277 received during the same period last year.

More than 2,000 consumers complained about not receiving bills, 1,474 people made complaints about billing charges, and over 1,000 consumers criticised the quality of customer service.

The numbers suggest that 2014 will see more complaints overall, as there were 17,960 complaints made over a 12-month period last year.

Chief Energy Ombudsman Lewis Shand Smith said: "Consumer frustration and dissatisfaction is something that we hear about every day, and we welcome any attempts by Ofgem to make the energy market fairer.

"With energy complaints trebling in the first quarter of this year and problems relating to billing the greatest concern, increased transparency is something that should be addressed."

A spokeswoman for Energy UK, the trade body that represents the industry, said most customers had no problems with their energy company, but accepted that sometimes things go wrong.

She added: "If a customer has any concerns relating to their bills, they should contact their provider as soon as they can, and if possible have an up-to-date meter reading to hand which will ensure their bill is as accurate as possible.

"Energy companies work very hard to resolve problems and most complaints are fixed within a few working days with no more than a phone call."

The spokeswoman said there were new rules in force which made matters "more open and clear for customers including: explaining bills so people understand what they are paying; making it easy to switch; ensuring customers are on the right deals; and simplifying tariffs".

But Richard Lloyd, executive director of Which?, the consumer watchdog, said the rise in complaints was "further proof that the energy market is broken".

He added it was "right" that the energy sector had been referred for a full-scale investigation.

A Department of Energy and Climate Change spokeswoman said the figures were "worrying", and added: "We would advise consumers to shop around and switch to find a better deal, whether on cost or customer service."

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Interest Rate To Remain Low For 'Some Time'

Affordability Gap: Figures In Detail

Updated: 11:45pm UK, Tuesday 13 May 2014

The 10 most affordable and least affordable areas to buy a property in England and Wales.

They are listed by their affordability gap - the ratio between average house prices and average earnings of locals in each area.

The first figure is the average house price in that area, the next is the average local earnings, and the third is the affordability gap - calculated by dividing the first figure by the second...

Top Ten    

Kensington and Chelsea £935,000 £42,957  21.8  

Westminster £748,500   £38,355  19.5  

Camden £595,000   £37,372  15.9  

Hammersmith and Fulham £550,000 £34,778  15.8

Islington £450,100 £34,876  12.9 

Elmbridge £444,500 £36,161  12.3 

Wandsworth £450,000   £36,618  12.3 

Richmond upon Thames £475,000   £38,860  12.2 

Hackney £378,500   £31,023  12.2 

Brent £340,000  £27,950  12.2 

Bottom Ten   

Wigan £105,000   £25,589  4.1

Neath Port Talbot £93,750   £23,462  4.0

Stoke-on-Trent £88,000   £22,620  3.9

Merthyr Tydfil £86,000   £22,396  3.8   

Rhondda, Cynon, Taff £93,000   £24,872  3.7

Pendle £85,000   £22,932  3.7

Barrow-in-Furness £92,500   £27,794  3.3

Blaenau Gwent £70,000   £21,034  3.3

Copeland £115,000   £35,105  3.3

Burnley £71,500   £24,612  2.9 

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Japanese Rush To Beat Sales Tax Increase

Japan's economy grew at its fastest rate for almost three years in the first quarter as firms and consumers rushed to beat the implementation of a sales tax rise.

Official figures showed GDP growth at an annualised rate of 5.9% - or 1.5% on the previous quarter.

Economists suggested the performance was mostly down to efforts to avoid extra tax.

Japan raised its sales tax to 8% from 5% on April 1 and the move is expected to have resulted in a quarter-on-quarter GDP contraction in the current quarter though a quick rebound is forecast for the second half of the year.

Prime Minister Shinzo Abe, who took office in 2012, has sought to get Japan's growth back on track through a combination of heavy government spending, ultra-loose monetary policy and economic reforms.

His so-called "Abenomics" formula is credited with boosting corporate profits and helping Japan escape from a long-time deflationary rut.

Price increases are slowly moving toward a 2% official inflation target, thanks to the flood of money in the economy and to higher costs for imports due to a weakening in the Japanese yen.

The recovery in the US and Europe may help Japan increase exports, so far an area that has lagged expectations as soaring import costs for energy, food and industrial components have outpaced increases in demand for Japanese products overseas.

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Dixons And Carphone Warehouse Merger Agreed

The owner of Currys/PC World, Dixons Retail, and Carphone Warehouse have confirmed an all-share 'merger of equals' to capitalise on the growing digital market.

While the combined entity, to be known as Dixons Carphone, will continue to sell traditional products associated with each brand there will be a focus on capturing demand for mobile connectivity with electrical products in the home - the so-called 'Internet of Things'.

The group sees the mobile phone as a remote control for the household.

Sebastian James - the current CEO at Dixons Retail - told Sky News: "Today, most people are using the phone to control their audio systems and increasingly it will be security systems and lighting and heating and that's beginning already.

"I think we'll be the only people, together, who can really tell that story end-to-end for our customers."

It was estimated the 50/50 deal - subject to shareholder approval - would save the combined mobile phone to electricals group up to £80m annually from 2017/18 and value the firm at more than £3.7bn.

The two companies currently have almost 2,900 stores - 1,300 of them in the UK.

The UK store portfolio would not be cut, they argued, because Currys/PC World stores were largely out of town while Carphone operations were concentrated on the high street.

Carphone chairman Sir Charles Dunstone, who is set to become chairman of Dixons Carphone, confirmed he expected the deal to create jobs in the long term.

Growth of 4% in the combined group's current workforce of 43,500 people by the end of 2016 was forecast, though the increase would be partially offset by the combination of operational and support function cuts causing a 2% drop in total headcount initially.

Sir Charles said: "We are incredibly excited about the opportunity today's news brings to our organisations, our consumers and our investors.

"Both Carphone and Dixons have a huge commitment to delivering the consumer the very best service, product and advice around the connected world.

"We have a deep respect for each other and we see the merger of these two great companies as an opportunity to bring our skills together for the consumer and create a new retailer for the digital age.

"We are also creating jobs and we see many opportunities for further growth."

More follows...

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City Star Woodford To Meet Pfizer Boss Read

By Mark Kleinman, City Editor

The City's most prominent fund manager will meet the boss of Pfizer this week for talks about the US pharmaceuticals giant's proposed £63bn takeover of AstraZeneca.

Sky News has learnt that Neil Woodford, an influential figure in the Square Mile, is to meet Ian Read, Pfizer's chief executive, just days after expressing scepticism about the potential deal.

Mr Woodford, who launched his investment management business this month after leaving Invesco Perpetual, may prove to be a key figure in Pfizer's battle to win control of AstraZeneca despite managing only a small stake in the British-based drug-maker.

"A cashing-out exercise is no use to me - there isn't another AstraZeneca out there," he said last week.

He also questioned the legitimacy of Pfizer's pledge to base at least 20% of a merged group's research and development staff in the UK.

Mr Woodford said that and other commitments were "not set in stone" or legally-binding, an assertion contradicted on Monday by Pfizer, whose best-known products include Viagra.

On Tuesday, Mr Read will appear before MPs on the Business, Innovation and Skills Select Committee, when he is likely to face hostile questioning about the motivation for his interest in AstraZeneca.

Anders Borg, Sweden's finance minister, told Sky News on Monday that Pfizer's track record with major takeovers was a cause for concern.

"Our experience is rather bad when it comes to Pfizer," he said.

"AstraZeneca has been a well-functioning alliance between the UK and Sweden, it is a major exporter and taxpayer and a very important part of our life science business," he said.

"It is clear that we are worried [given] Pfizer's long history of taking over companies. In Sweden they gave the impression that they had a commitment to life sciences but a couple of years later the business had shrunk.

"In the long run it is a clear risk that they will cut back on research and development and jobs in the UK and Sweden."

Mr Read will also meet other leading AstraZeneca investors during his visit to the UK this week, many of which have backed the rejection of Pfizer's latest £50-a-share proposal.

The value of that offer fluctuates depending upon Pfizer's own share price, meaning that a further offer is likely to need to be pitched significantly higher if it is to convince AstraZeneca shareholders to sell.

The British company's chief executive, Pascal Soriot, and Vince Cable, the Business Secretary, will also give evidence to MPs on Tuesday.

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Pfizer Chief To Face MPs Over AstraZeneca Jobs

Pfizer's chief executive is to be questioned by MPs later about the US drugs company's commitments to UK jobs as part of its £63bn takeover plan for AstraZeneca.

Ian Read has questioned the British drugmaker's ability to stand alone for much longer and said the planned merger would create a "UK-based scientific powerhouse".

He said Pfizer's pledges to complete AstraZeneca's new research centre in Cambridge and put a fifth of its research staff in Britain if the deal goes ahead were legally binding.

In a written statement ahead of his appearance before the Commons Business, Innovation and Skills Committee, Pfizer took a swipe at AstraZeneca's go-it-alone strategy by arguing it lacked the financial muscle to make the most of its experimental medicines.

"Looming patent expiries and near-term revenue losses jeopardise its ability to deliver on its very promising pipeline," it said.

If the deal goes ahead, it would be the largest foreign takeover of a British firm.

Critics claim the Viagra maker's pledges are worthless, and are calling on the Government to stop any deal.

AstraZeneca has rejected the offer as "inadequate".

The offer has revived bitter memories of when American food giant Kraft abandoned jobs pledges after buying Cadbury in 2010.

The GMB and Unite unions are calling on Business Secretary Vince Cable to block the proposed takeover.

"Assurances given by Pfizer ... are worthless. If this takeover is allowed it will be a serious blow to the UK's science economy," said GMB national officer Allan Black.

MPs will also question Mr Cable and AstraZeneca's CEO Pascal Soriot.

A second parliamentary committee on Wednesday will question both CEOs again, along with Science Minister David Willetts.

Meanwhile, Sky's City Editor Mark Kleinman has learnt Neil Woodford, the City's most prominent fund manager, will meet Mr Read this week for talks about the proposed takeover.

Mr Woodford may prove to be a key figure in Pfizer's battle to win control of AstraZeneca despite managing only a small stake in the British-based drugmaker.

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Npower Tops Citizens Advice Complaints Table

Energy giant Npower topped a 'big six' complaints list, at the same time it announced inflation-busting price hikes.

The Citizens Advice Bureau (CAB) said that between October and December, it received 10 times as many complaints as the best performing rival, SSE.

Late last year German-owned Npower wrote to 3.4 million customers, after it suffered a sharp rise in customer complaints over billing failures.

This followed an announcement imposing the highest price hikes of the major suppliers, at 10.4%.

CAB said Npower received 306 complaints per 100,000 customers in the period. It has a total of 5.9 million customers.

The figure was three times as many as the second worst for customer complaints, Scottish Power, which received 100 complaints for every 100,000 customers.

In January, Npower retail director Roger Hattam issued a second apology, over complaints it received due to a new billing system, with some customers hit with inaccurate charges.

At the time, Consumer Futures revealed Npower had attracted nearly half of all complaints of 'big six' firms between July and September, at 253 per 100,000 customers.

CAB said complaints against the company jumped by 300% between January 2012 and December 2013.

It slammed the rise as "unacceptable" adding that some customers were financially damaged over Npower's billing failures.

Complaints included direct debits being stopped, late billings and new accounts not being set up correctly.

CAB chief executive Gillian Guy said: "Things are getting worse not better for Npower customers.

"It is unacceptable that Npower has not yet sorted out the serious failings in its billing systems and customer service which are causing so many complaints and serious problems for its customers.

In late January, Npower was slammed by watchdog Ofgem and the Department of Energy and Climate Change over a 14-page report it issued trying to explain cost structures of household bills and green taxes.

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'Zombie Bank Accounts Cost Savers £4bn A Year'

Savers are losing more than £4bn a year by having their money in poor-paying accounts, according to consumer group Which?

The group found more than a third of accounts closed to new customers, dubbed 'zombie accounts', paid 0.5% interest or less.

This compares with the best-paying Isa savings accounts which offer up to 2.75%.

Three-quarters of people surveyed thought banks did not do enough to help savers get a good deal.

Which? also found more than a third of people had not switched their main savings account because they did not think it would make a difference.

The group's analysis suggested there was a difference of £4.3bn a year between the amount savers would have received if they were all paid the average interest rate and the amount they would have received if they all had money in a top-paying account.

According to Which?, 82% of the 1,999 easy access savings accounts and cash Isas on the market in March were zombie accounts.

Nearly four in 10 (39%) of those accounts paid 0.5% interest or less and 16% paid 0.1% or less.

Which? said the savings market could be "confusing", with some accounts paying very different rates of interest despite having similar names.

It wants banks to move people's money into one default easy access or Isa account at the end of fixed terms.

Which? executive director Richard Lloyd said: "With many savers never switching because they don't think it will make a difference, savings providers should do more to help their customers get the best deal.

"They need to be clear about interest rates, let people know when bonus rates come to an end and make it easier for people to switch Isas."

Andrea Leadsom, the economic secretary to the Treasury, said: "The Chancellor announced a number of measures to help and support savers, notably increasing the cash Isa limit to £15,000, at this year's Budget.

"These changes will give savers more flexibility and choice."

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Billionaire Britain: New Nation Of Super-Rich

Top 25 Billionaires In Britain

Updated: 12:54am UK, Sunday 11 May 2014

The top 25 names on the 2014 Sunday Times Rich List, including their total fortune and the change from last year.

1. Sri and Gopi Hinduja, £11.9bn, up £1.3bn

2. Alisher Usmanov, £10.65bn, down £2.65bn

3. Lakshmi Mittal and family, £10.25bn, up £250m

4. Len Blavatnik, £10bn, down £1bn

5. Ernesto and Kirsty Bertarelli, £9.75bn, up £2.35bn

6. John Fredriksen and family, £9.25bn, up £450m

7. David and Simon Reuben, £9bn, up £719m

8. Kirsten and Jorn Rausing, £8.8bn, up £3.691bn

9. Roman Abramovich, £8.52bn, down £780m

10. The Duke of Westminster, £8.5bn, up £700m

11. Galen, Hilary and George Weston and family, £7.3bn, up £650m

12. Charlene de Carvalho-Heineken and Michel de Carvalho, £6.365bn, down £635m

13. Mohamed Bin Issa Al Jaber and family, £6.16bn, up £1.645bn

14. Carrie and Francois Perrodo and family, £6.14bn, new

15. German Khan, £6.08bn, new

16. Sir David and Sir Frederick Barclay, £6bn, up £3.65bn

17. Hans Rausing and family, £5.9bn, up £1.18bn

18. Nicky Oppenheimer and family, £4.57bn, up £785m

19. Earl Cadogan and family, £4.2bn, up £525m

20. Joseph Lau and family, £4.03bn, down £570m

21. Sir Philip and Lady Green £3.88bn, no change

22. Denis O'Brien, £3.854bn, up £486m

23. Mike Ashley, £3.75bn, up £1.45bn

24. Sir Richard Branson and family, £3.6bn, up £86m

25. Idan Ofer, £3.43bn, new

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CBI Says Home Loans To Rise In Early 2015

Homeowners are to come under more pressure early next year amid a prediction of interest rates rising.

According to the Confederation of British Industry (CBI), the UK base rate will jump from the current historic low of 0.5% to 0.75% in the first quarter.

The CBI had earlier predicted a rate rise in the third quarter of 2015.

The Office for National Statistics said that in 2010 more than 9 million UK households had property debt.

The Council of Mortgage Lenders said that in February 22,200 first-time buyers received loans, 26,200 home-movers and 14,300 buy-to-let applicants.

CBI director-general John Cridland said property values were expected to rise by 8.2% in 2014 and 5.1% next year, prompting more fears of prices overheating.

"We have to remain alert to the risks posed by unsustainable house price inflation, and the (Bank of England) Financial Policy Committee is poised to act when necessary," he said.

"Housing has come back under the spotlight as annual house price inflation figures have reached double digits on some measures.

"While housing transactions are still running almost 30% below their last peak in 2006, they are picking up steadily."

London house prices have climbed a quarter above their pre-crash peak, partially prompted by foreign buyers in the prime property segment.

"Outside London, prices remain around 2% below peak figures with an even greater difference when you move outside the South East," Mr Cridland said.

The predictions come amid increased scrutiny of mortgage applications by lenders, in response to a market review by the Financial Conduct Authority.

Mortgage providers are seeking reassurance that applicants will have sufficient income to cover any potential rises in interest rates.

The FCA said new rules were "hardwiring common sense" into the market.

Mortgage broker firm John Charcol said families are the most likely to face scrutiny under the new regime, as their outgoings were potentially greater.

Spokesman Ray Boulger said: "The most common reason to knock people back is childcare costs.

"It's particularly bad if people have more than one child or if they are under school age."

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'Zombie Bank Accounts Cost Savers £4bn A Year'

Savers are losing more than £4bn pounds a year by having their money in poor-paying accounts, according to consumer group Which?

The group found more than a third of accounts closed to new customers, dubbed 'zombie accounts', paid 0.5% interest or less.

This compares with the best-paying Isa savings accounts which offer up to 2.75%.

Three-quarters of people surveyed thought banks did not do enough to help savers get a good deal.

Which? also found more than a third of people had not switched their main savings account because they did not think it would make a difference.

The group's analysis suggested there was a difference of £4.3bn a year between the amount savers would have received if they were all paid the average interest rate and the amount they would have received if they all had money in a top-paying account.

According to Which?, 82% of the 1,999 easy access savings accounts and cash Isas on the market in March were zombie accounts.

Nearly four in 10 (39%) of those accounts paid 0.5% interest or less and 16% paid 0.1% or less.

Which? said the savings market could be "confusing", with some accounts paying very different rates of interest despite having similar names.

It wants banks to move people's money into one default easy access or Isa account at the end of fixed terms.

Which? executive director Richard Lloyd said: "With many savers never switching because they don't think it will make a difference, savings providers should do more to help their customers get the best deal.

"They need to be clear about interest rates, let people know when bonus rates come to an end and make it easier for people to switch Isas."

Andrea Leadsom, the economic secretary to the Treasury, said: "The Chancellor announced a number of measures to help and support savers, notably increasing the cash Isa limit to £15,000, at this year's Budget.

"These changes will give savers more flexibility and choice."

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Amazon Paid £10m Tax On £4.3bn UK Sales

Online retailer Amazon paid a UK corporation tax bill of £10m last year, despite sales in Britain reaching £4.3bn, it has been revealed.

Amazon.co.uk saw a 56% rise in profit to £17m during 2013, along with a 13% rise in UK revenue.

The company reports most of its European profit through a tax-exempt Luxembourg partnership.

Amazon has faced previous criticism for its complex tax structures, through which sales are logged in the European location despite goods being sourced, stored and sold within Britain.

In a statement to Sky News, the company insisted it paid all applicable taxes in jurisdictions that it operates within.

It said: "Amazon EU serves tens of millions of customers and sellers throughout Europe from multiple consumer websites in a number of languages dispatching products to all 28 countries in the EU.

"We have a single European headquarters in Luxembourg with hundreds of employees to manage this complex operation."

Other large multinationals, including Google and Starbucks, have been grilled alongside Amazon by MPs on the Public Accounts Committee.

Amazon.co.uk is funded by its Luxembourg-based affiliates.

Executies from Amazon, Google and Starbucks were grilled by MPs in 2012

The rates of such inter-company remuneration are usually agreed with the UK tax authority, but HM Revenue and Customs (HMRC) declined to comment on the tax paid by Amazon.

In 2013, intercompany fees paid to Amazon.co.uk Ltd rose 40% to £449m.

This led to Amazon's current tax bill for 2013 being its biggest ever.

"It's possible Amazon may have come under pressure from HMRC to adjust their inter-company agreements," Prem Sikka, Professor of Accounting at Essex University, told Reuters.

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Billionaire Britain: New Nation Of Super-Rich

Top 25 Billionaires In Britain

Updated: 12:54am UK, Sunday 11 May 2014

The top 25 names on the 2014 Sunday Times Rich List, including their total fortune and the change from last year.

1. Sri and Gopi Hinduja, £11.9bn, up £1.3bn

2. Alisher Usmanov, £10.65bn, down £2.65bn

3. Lakshmi Mittal and family, £10.25bn, up £250m

4. Len Blavatnik, £10bn, down £1bn

5. Ernesto and Kirsty Bertarelli, £9.75bn, up £2.35bn

6. John Fredriksen and family, £9.25bn, up £450m

7. David and Simon Reuben, £9bn, up £719m

8. Kirsten and Jorn Rausing, £8.8bn, up £3.691bn

9. Roman Abramovich, £8.52bn, down £780m

10. The Duke of Westminster, £8.5bn, up £700m

11. Galen, Hilary and George Weston and family, £7.3bn, up £650m

12. Charlene de Carvalho-Heineken and Michel de Carvalho, £6.365bn, down £635m

13. Mohamed Bin Issa Al Jaber and family, £6.16bn, up £1.645bn

14. Carrie and Francois Perrodo and family, £6.14bn, new

15. German Khan, £6.08bn, new

16. Sir David and Sir Frederick Barclay, £6bn, up £3.65bn

17. Hans Rausing and family, £5.9bn, up £1.18bn

18. Nicky Oppenheimer and family, £4.57bn, up £785m

19. Earl Cadogan and family, £4.2bn, up £525m

20. Joseph Lau and family, £4.03bn, down £570m

21. Sir Philip and Lady Green £3.88bn, no change

22. Denis O'Brien, £3.854bn, up £486m

23. Mike Ashley, £3.75bn, up £1.45bn

24. Sir Richard Branson and family, £3.6bn, up £86m

25. Idan Ofer, £3.43bn, new

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