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US Jobless Rate Steady Despite Massive Hiring

Written By Unknown on Sabtu, 06 Desember 2014 | 14.47

US job creation smashed estimates last month with 321,000 new positions, although the jobless rate remained static.

The Labor Department said it was the strongest monthly performance in almost three years and wages also increased - a development which may bring the Federal Reserve closer to raising interest rates.

But the unemployment rate held steady at a six-year low of 5.8% despite the big increase in employment.

November marked the tenth-straight month that job growth has exceeded 200,000, the longest stretch since 1994 and further
confirmed the economy is weathering slowdowns in China and the eurozone.

Average hourly earnings rose 2.1% in the year to November - still below the increase of 3% or more that economists say would make the Fed comfortable lifting rates, but an improvement.

There was also positive news in terms of fresh four-year lows in the numbers giving up looking for work and in long-term unemployment figures.

Job gains were also broad-based across the economy, with retail payrolls rising strongly ahead of the holiday shopping season.

Separate figures showed the US trade deficit fell slightly in October as exports rebounded while oil imports dipped to the lowest level in five years amid the rush for US shale oil.

The Commerce Department says the deficit edged down 0.4% to $43.4bn (£27.7bn).

Exports climbed 1.2%.

The figures sparked a rally in world stocks, with the FTSE 100's gains hitting 1% on the day shortly after the announcements.

US futures pointed to a slightly higher openings on Wall Street.


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Treasury Heavyweight Leads Race For Ofcom Job

By Mark Kleinman, City Editor

A top civil servant is in line to become the next head of the communications regulator Ofcom, Sky News can exclusively reveal.

Sharon White, the Second Permanent Secretary to the Treasury, is understood to have been recommended to the Culture Secretary Sajid Javid as Ofcom's new chief executive, according to sources in Whitehall.

Ms White's appointment has not yet been ratified by Mr Javid and could yet fall through, resulting in another candidate being selected, they said.

If it is approved, however, she could be officially confirmed in the role as early as next week.

The next chief executive of Ofcom will assume responsibility for a bulging in-tray just months before the General Election next May.

Among the companies which Ofcom is responsible for regulating is Sky plc, the owner of Sky News.

Earlier this week, the regulator angered Royal Mail by rejecting its claims that opening the end-to-end delivery market to competitors was jeopardising the viability of the Universal Service Obligation, which requires the company to deliver to every UK address for the price of a stamp.

It is also engaged in an inquiry relating to the sale of Premier League broadcasting rights, and is drawing up plans for a review to launch before Christmas of public service broadcasting in the UK.

Ofcom has one of the widest regulatory remits in Britain, overseeing the TV and radio sectors, fixed line telecoms, mobiles, postal services, and the airwaves over which wireless devices operate.

Ms White, who would become the first woman to head Ofcom, has spent 25 years as a civil servant, initially at the Treasury during the 1990s, before stints in Washington and at the Number Ten policy unit.

Regarded as "a star performer" by many of her Whitehall colleagues, she has also worked at the World Bank at the Department for Work and Pensions and Ministry of Justice.

She rejoined the Treasury in 2011 to lead a review of the department's response to the financial crisis, and now has responsibility for the public finances.

Ms White, who has been in her current role for just over a year, is also part of one of Britain's most influential couples: her husband is Robert Chote, chairman of the Office for Budget Responsibility, which scrutinises the Government's spending plans.

Ofcom's current chief executive, Ed Richards, will step down at the end of this month, having run the organisation for just over eight years. He has been on its board since March 2003.

Announcing his intention to step down in October, Mr Richards said:

"It has been a privilege to lead Ofcom during such an exciting and dynamic period in the evolution of the UK's communications sector.

"It is never easy leaving a job that you enjoy greatly but I have always felt that once I had completed eight years as chief executive this would be the right time to move on."

Patricia Hodgson, the chairman, said Mr Richards would leave "an impressive legacy", adding:

"Under his leadership, Ofcom has helped to deliver superfast broadband, 4G, lower prices, innovation, competition, and sustainable public service broadcasting in the UK."

The search for Ofcom's new chief executive has been led by The Zygos Partnership, a search firm.

Ofcom declined to comment on Friday.


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Shoppers Urged To Support Small Shops Today

UK shoppers are being encouraged to "shop small" today to support Small Business Saturday, which aims to boost smaller enterprises.

The event, now in its second year, is backed by hundreds of trade organisations and more than 60 local councils are showing their support by waiving parking charges for the day.

Last year, independent businesses took £468m across the UK on the day and #SmallBizSatUK trended on Twitter all day.

Business and Enterprise Minister Matthew Hancock said: "There's never been a better time to start a business and I am proud that the Government has thrown its weight behind small business.

"This Saturday we have a first-rate opportunity to celebrate the hard working heroes of our economy and I will be shopping small throughout the day whilst visiting my family in Nottingham.

"Let's make this year's Small Business Saturday even better than the last."

To encourage the nation to get involved again this year, supporters of the initiative have been rallying the British public.

Artist Sir Peter Blake, who created the sleeve design for the Beatles' album Sgt Pepper's Lonely Hearts Club Band, created a piece of celebratory art featuring more than 60 UK shopkeepers with the tools of their trade.

Model Daisy Lowe will lend her support at an independent shop today.

She said: "I'm passionate about small, independent shops and have picked up some of my most treasured outfits from one-of-a-kind boutiques. I'm normally asked to model for big brands, but I jumped at the chance to be involved in Small Business Saturday and show my support for small, independent businesses too.

"I hope people around the country get involved and join me in shopping small."


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Hiring Rate Slows Amid Growing Skill Shortage

Written By Unknown on Jumat, 05 Desember 2014 | 14.47

The shortage of skilled labour is becoming more acute as firms hired staff at the slowest rate for 18-months in November, a report has warned.

The monthly Recruitment and Employment Confederation (REC) and KPMG survey pointed to uncertainty over the European economic outlook and looming UK General Election for the slowdown.

But the report also said that while starting salaries have continued to increase, this was being part-driven by a shortage of skilled labour.

REC chief executive Kevin Green said: "Over a quarter of recruiters say that starting salaries for equivalent jobs are getting better by the month, driven by competition between employers for quality candidates.

"If there's a cloud on the horizon for 2015 it's the intensifying skills shortages which now spans many sectors and is particularly acute in high-skilled areas like engineering, IT and medicine.

"It's not just about graduates, vacancies for skilled manual jobs are getting harder to fill as well.

"The shortage of licensed HGV drivers and forklift operators could mean retailers struggle to meet the Christmas demand generated by Cyber Monday and eager shoppers on the high streets."

The unemployment rate currently stands at 6% and the Bank of England, which is looking for firm wage increases in the economy before deciding if it will raise the base rate of interest, is forecasting the jobless total to continue falling next year.

Higher wages are also essential to drive the forecast recovery in weak tax receipts included in the chancellor George Osborne's Autumn Statement.

Labour has argued that weak wage growth has been one factor behind a cost of living crisis for working families.


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Canary Wharf Owner Rejects Raised Qatar Bid

A bid by Qatar's sovereign wealth fund and a Canadian partner to buy the firm behind London's Canary Wharf, has been rejected.

The Qatar Investment Authority (QIA) and Brookfield Property Partners had raised their all-cash offer for Songbird Estates from £2.2bn to £2.6bn, just hours before a bid deadline expired last night.

Songbird, which had rejected the lower offer last month on the grounds that it "significantly undervalued" the business, said on Friday that the latest bid was also too low in the opinion of its board.

The statement said: "The board believes the offer from QIA and Brookfield does not reflect the full value of the company, its unique position and future growth potential." 

Songbird is the majority owner of the sprawling financial area that is Canary Wharf - once the powerhouse for London's shipping trade - and is home to the headquarters for HSBC and Barclays.

The estate is on track to secure its first residential development while Crossrail, the planned link between east London and Reading via Heathrow, will also serve Canary Wharf and is set to add considerable value to the estate.

The Qatar fund already has a 29% stake in Songbird but is looking to capitalise on a strong commercial property market.

Its other property interests in London include The Shard, the tallest skyscraper in western Europe.

QIA also owns Harrods, which it bought for £1.5bn four years ago.


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Rail Travellers Face 2.2% New Year Price Hike

Commuters face another rail rise at the beginning of next year with fares rising by an average of 2.2% from 2 January.

The increase, announced by rail industry body the Rail Delivery Group, means that more rail travellers will be paying £5,000 for their season tickets than ever before.

Although the average rise is 2.2% - the lowest average rise for five years - the rise for regulated fares, including season tickets, will be up to 2.5%.

That means south east travellers commuting from Canterbury East to London, for example, will have to pay more than £40 extra in 2015 than they did for this year's season ticket as the price rises from £4,960 to more than £5,000.

Tickets for those travelling from Folkestone Central to London will also pass the £5,000 mark, up from £4,984 in January 2014.

Other travellers will soon be joining the ranks of those already paying £4,000 a year for their annual return commute to work.

The season ticket from West Malling in Kent to London, for example, is going beyond £4,000 for the first time, up from £3,996 paid in January of this year.

While the January 2015 rise is limited to a maximum of 2.5%, unregulated fares, such as off-peak leisure tickets, can go up by as much as the train companies decide.

Rail Delivery Group director general Michael Roberts said: "Money from fares goes towards running and maintaining the railway.

"This benefits not just passengers and businesses but communities across the country, by improving journeys, creating employment and helping to boost the economy.

"Over the next five years, Network Rail is spending on average £27m a day on a better railway, alongside commitments made by train companies to improve services. That will mean more seats, better stations and improved journeys."

He went on: "For every £1 spent on fares, 97p goes on track, train, staff and other costs while 3p goes in profits earned by train companies for running services on Europe's fastest growing railway.

"The industry is continuing to work together to get more for every pound we invest to enable government to make fares decisions which work best for passengers."

Manuel Cortes, leader of the TSSA rail union, said: "It is time to stop this annual persecution of passengers with year-on-year hikes in fares. We have seen fares jump by as much as 245% on key routes since privatisation 20 years ago.

"It is now cheaper for a family of four to fly to Iceland to see Father Christmas - £224 - than it is for one person to buy an any-time walk on return rail fare from London to Manchester - £321."


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British Gas Pays £11.1m Penalty For Failings

Written By Unknown on Kamis, 04 Desember 2014 | 14.47

The energy regulator says the country's biggest household provider is to pay £11.1m for failing to meet key targets.

Ofgem announced the penalty against British Gas just a week after power generators Drax and InterGen were stripped of a record £39m sum for similar failures.

The watchdog said the latest penalty would benefit vulnerable customers after its investigation found British Gas missed its environmental obligations under the Community Energy Saving Programme (CESP) and Carbon Emissions Reduction Target (CERT).

Under CESP, energy suppliers and generators were required to deliver energy saving measures to households by the end of December 2012.

Ofgem found that British Gas delivered just 62.4% of its obligations on time, meaning 6,750 households in low income areas experienced delays in receiving energy saving measures.

Claire Miles, the managing director of British Gas New Energy, said: "We're hugely committed to the success of our energy efficiency programmes and are sorry that we missed the December 2012 deadline.

"However, we're pleased that in the end we managed to help more vulnerable people under this scheme than was required.

"The donation we're making will further help those struggling to keep their homes warm.

"We take our responsibilities to our customers very seriously and do all we can to help them keep their bills as low as possible. 

"Providing free insulation is a big part of that, as well as giving our customers ways to manage and understand their energy use through smart meters and other new technologies."

British Gas pointed out that because it was the largest supplier of energy to UK homes, it was obliged to deliver more efficiency measures than any other company.

It said that in the last five years it had insulated more than 2.5 million homes.


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Autumn Statement: The Key Points At A Glance

The main measures and forecasts as outlined by the Chancellor George Osborne in his Autumn Statement:

TAX

:: Stamp Duty rates overhauled. Top rate now 12% on properties worth more than £1.5m effective from midnight Wednesday. There will be no duty on properties worth up to £125,000 then 2% rate on the portion up to £250,000 then 5% up to £925,000, then 10% up to £1.5m.

:: Higher rate income tax threshold to rise to £42,385 next year.

:: Income tax-free personal allowance to rise to £10,600 rather than the planned £10,500 next year, giving wage boost of £825 a year.

:: ISAs can be inherited tax free.

:: Fuel duty remains frozen. 

:: People who die under 75 to be able to pass on annuities, tax free.

CORPORATE TAX

:: A so-called  'Google Tax'  will introduce a levy of 25% on profits shifted abroad by multi-national firms. The Diverted Profits Tax aims to raise more than £1bn over five years.

:: Banks to pay almost £4bn more in tax over next five years, with profits which can be offset by losses for tax purposes to be limited to 50%.

:: Inflation-linked increase in business rates capped at 2% and discount for shops, pubs and cafes increased by 50% to £1,500.

SAVINGS

:: Limit on saving in New ISAs to rise to £15,240

DEVOLUTION & 'NORTHERN POWERHOUSE'

:: Business rates for Wales to be devolved to Welsh Government.

:: Plans law to devolve corporation tax to Northern Ireland if the Northern Ireland executive shows it can manage the financial implications.

:: Investment of £250m in new advanced material science institute in Manchester with branches in Leeds, Sheffield and Liverpool. Tendering for new franchises for Northern Rail and Trans-Pennine Express to ensure modern trains.

EDUCATION

:: Government-backed student loans of up to £10,000 are to be made available for postgraduates.

TRAVEL

:: Air Passenger Duty for under-12s abolished from May 2015. Scrapped from 2016 for under-16s.

SAVINGS

:: A further £10bn of Whitehall efficiencies is planned while £5bn more is sought from crackdown on tax evasion and avoidance.

:: Public service pension reforms will be completed, saving £1.3bn annually.

SPENDING

:: NHS gets additional £2bn every year for frontline services. A £1.2bn investment in GP services will be paid for from foreign exchange fines.

:: Government spending £10bn less than forecast this year but warns the coming years will require "very substantial savings in public spending."

PUBLIC FINANCES

:: Office for Budget Responsibility (OBR): Forecast 2014 GDP growth upgraded to 3% from 2.7%. 2015 forecast raised to 2.4%.

:: "Deficit is falling this year and every year." Deficit now cut in half. OBR forecasts borrowing to fall from £97.5bn in 2013/14 to  £91.3bn in 2014/15 (£5bn above annual target). Budget surplus of £23bn predicted for 2019/20.

:: Osborne says deficit reduction better than some predicted as welfare spending is lower and interest paid on national debt is considerably lower.

:: OBR predicts wage growth above inflation for the next five years.


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Bonus For Buyers As Stamp Duty Changes Begin

Historic stamp duty changes that could cut £4,500 off the cost of an average home have come into force - a move welcomed by thousands of buyers.

Detailed verdicts from leading financial experts will be delivered later on all the contents of George Osborne's Autumn Statement.

But the Chancellor's shake-up of stamp duty was the most eye-catching policy.

He has scrapped the "slab rate" of stamp duty - which means huge increases in tax when house values enter a new band.

In future, he said, the tax would apply progressively, like income tax.

The new rates will see house-buyers pay 0% on the first £125,000 then 2% on the portion up to £250,000, 5% up to £925,000, 10% up to £1.5m and 12% on anything above that.

First-time buyer Martin Gaine, from west London, said the change could save him as much as £4,000 on his prospective purchase.

"It's a lovely surprise because it wasn't trailed in any of the newspapers," he told Sky News as he viewed a two-bedroom flat in Chiswick, on the market for £600,000.

"Stamp duty is a big outlay and it's an up-front cost that you don't get back so this is brilliant news. Every little bit helps at the moment, so to save that money will be fantastic for me."

Mr Osborne told the Commons: "It is a fair, workable, lasting reform to the taxation of housing."

The changes will cost the Treasury "nearly £400m" over the next four months, according to the Office for Budget Responsibility (OBR).

The Chancellor also announced a plan to cut the cost of air travel for millions of families by abolishing air passenger duty for children under the age of 16 over the next two years.

On the controversial issue of the deficit, Mr Osborne was cheered by his own MPs and jeered by the opposition as he revealed better-than-expected figures.

He said the OBR's forecasts show borrowing is falling and would continue to fall until a budget surplus is achieved in 2018/19.

Labour shadow chancellor Ed Balls said the Chancellor's policies had left workers £1,600-a-year worse off.

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  1. Gallery: Stamp Duty: How Much Will You Save?

    Homes bought for under £125,000, such as these terrace houses, are unchanged by the new rules and buyers still do not have to pay any Stamp Duty

Someone choosing a typical three-bedroom semi-detached costing £185,000 would pay £1,200 instead of £1,850 under the old rules - a £650 saving

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Osborne Pledges More An 'Autumn Restatement'

Written By Unknown on Rabu, 03 Desember 2014 | 14.47

So far it has been more of the Autumn Restatement than anything else - with the big headline numbers on road building and flood defences already known.

A third of the extra £2bn for the NHS already exists. Even the headline measures of what the tabloids will call a "White Van Man" Budget, on fuel duty and air passenger duty for children, are small fry.

Approving the principle of devolving corporation tax to Northern Ireland is a significant step in the context of the Democratic Unionist Party's possible parliamentary bargaining power.

The Scottish government too has shown its concerns.

And watch out for the impact of the Welfare Cap.

A series of fascinating discussions have gone on between the Office for Budget Responsibility (OBR) and the Department for Work and Pensions.

Essentially the OBR will judge whether capped welfare (excluding pensions) can be kept under £119.5bn next year.

The big picture will be a fiscal announcement with no net giveaways - basically fiscally neutral - but perhaps even a small symbolic takeaway.

That is because, as we know, the cupboard remains bare even after four years of deficit reduction.

So the main story will be the big macroeconomic numbers. There will be a lot to boast about.

From the best growth figures in the G7 to the extraordinary jobs numbers. But given that, the deficit numbers and poor tax receipts cancelled any hope for proper pre-election goodies.

Nigel Lawson's pre-election income tax cut of 2p in the pound was never going to be repeated, except as a vague conditional Conservative Conference aspiration.

For there is a nagging doubt at the heart of the Conservatives. After a year of recovery and a rapid rise in the feel good factor (measured by consumer confidence) and rises in house prices, Conservative poll ratings have remained stubbornly anchored in the low 30s. The feel good factor is missing in action.

That rise in consumer confidence flattened out in the summer, and is now dipping slightly. Black clouds are emerging from the continent.

More than that, the Miliband economic narrative on "cost of living crisis" remains strong, even if not all those who believe it will vote Labour.

Economic pessimists are fuelling UKIP's surge up the polls.

The sight of the Chancellor and Prime Minister apparently crowing about macroeconomic success has not been a vote winner in these circumstances.

It did not work in a thoroughly normal constituency such as Rochester and Strood.

So yes, the aim of this Autumn Statement will be to get the argument away from Europe and immigration and on to the economy.

But Mr Osborne will also try to modulate the boasts. The argument to be made will be a relative one.

People might not feel it everywhere, but a corner has been turned, and if they don't feel good, at least they might feel less bad than they would under "an untested Opposition with no economic plan".

That is more "feel better" than necessarily "feel good".


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Autumn Statement Bingo: What To Listen Out For

Political Editor Faisal Islam and Economics Editor Ed Conway pick out five key words and phrases likely to pass the lips of the Chancellor during the Autumn Statement.

Faisal's Five

:: Long-Term Economic Plan

The four word slogan drilled in to every piece of Conservative messaging online, offline, from speeches to mugs.

Designed to offer the electorate a feeling that the good times will return if they stick to the plan.

:: Northern Powerhouse

It was a phrase scratched together quickly by a clever Number 11 adviser to head off a Labour initiative on rebalancing the economy.

But it has grown in to a multifaceted plan for transport, science, devolving powers to create a mini-London along the M62.

:: The Choice

From now until the election the Conservative strategy is to shake the electorate into viewing the election not as a fight over policy, but as a straightforward choice between two prime ministers.

David Cameron with a growing economy after tough choices. And Ed Miliband, who they want the nation to view as an unconvincing anti-business former adviser to Gordon Brown.

:: Our NHS

In Conservative speeches the NHS has acquired a possessive pronoun.

The party knows public trust is weak for them on this, so they are after a score draw with Labour, neutralising claims of "privatisation" and attacking the Labour record in Wales.

:: In it Together

The old ones are the best. Many would argue that by promising unfunded tax cuts and further cash freezes in benefits, this phrase is now old hat.

But look out for the Chancellor trying to make the argument that British austerity was modest and moderate, in comparison to that seen in say Spain and Greece.

Ed's Five

:: A recovery for all

The point behind this buzzphrase is that the Treasury is worried about the perception that the recovery is not being shared by all - that the wealthiest have benefited most from its post-crisis policies while the poorest have faced the biggest squeeze.

:: Cutting the deficit by a third

There is bound to be some kind of line about how much the Government has cut the deficit - though the precise configuration tends to change from year to year.

:: "760,000 new businesses since 2010"

This recent buzzphrase is being trotted out repeatedly by Government ministers.

It's intended to underline how dynamic the business community is at the moment. And, indeed, the number of businesses being created right now is rising very quickly.

However, some notes of caution are in order: it is likely that a significant chunk of these new businesses are single-person companies.

:: Strongest growth in the Western world

The Chancellor will almost certainly point towards figures showing Britain is growing faster than many of its peers.

And indeed, the improvement in GDP, and the fall in unemployment, have been sharper in the UK than in many other developed countries.

:: Full employment

Earlier this year, the Chancellor pledged to try to "fight for full employment in Britain".

Expect this to resurface at some point in the Autumn Statement. In part this is another bit of political signalling - an effort to get people to focus on the positive news from the labour market.


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Osborne 'To Stay On Course To Prosperity'

By Darren McCaffrey, Sky Political Reporter

Around a billion pounds of investment for small and medium sized businesses, relief on petrol prices and changes to business rates to help the High Street are just some of the Autumn Statement measures to be announced later.

Plans to make stamp duty more progressive, easing the bill for people buying at the bottom end of the market but with possible heavier charges on more expensive homes, could also be unveiled by George Osborne later in what has been described as the "Government's last big economic event".

The Chancellor will say: "Our long-term economic plan is working. I say: we stay the course. We stay the course to prosperity.

"We support people who want to work hard and get on. And it is for their sakes that we resolve to stay on course to prosperity."

The Treasury and the Bank of England have agreed to extend the Funding For Lending (FLS) scheme by another year to January 2016 - underwriting loans specifically for smaller firms.

Mr Osborne is also allocating an extra £400m to expand the state-owned British Business Bank's venture capital programme.

And it will be handed funding to guarantee up to £500m of new lending in 2015-16.

The Chancellor is also expected to scrap the Fair Fuel Stabiliser, which would have seen petrol prices increase by 1p next March.

Air Passenger Duty on children's flights is also due to be abolished, which could reduce the cost of long haul flights by hundreds of pounds for families.

And there could be help for the High Street, with a review of business rates and how it is calculated due to be completed by early 2016. Rising rates have in part been blamed for hitting traditional town centre shops.

The Chancellor is expected to have to acknowledge that net borrowing will miss targets and reach about £90bn – greater than the £86.5bn predicted in March during the budget.

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  1. Gallery: See How The UK's Economy Is Doing

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Flooding Fund: £2.3bn To Protect 300,000 Homes

Written By Unknown on Selasa, 02 Desember 2014 | 14.47

Flooding Fund: £2.3bn To Protect 300,000 Homes

We use cookies to give you the best experience. If you do nothing we'll assume that it's ok.

More than 1,400 projects will receive a share of £2.3bn to protect against flooding for 300,000 homes.

But environmental group Friends of the Earth has suggested that figure is not high enough and there is still a £500m shortfall in the flood defences budget in the next parliament.

The spending includes major investment in areas including the Humber Estuary, with £80m set to be spent, and £196m for the Thames Estuary.

Ministers will also commit to spending £15.5m on flood defences in Somerset in the next six years - including £4.2m on the Somerset Levels which were hit badly by flooding last winter.

The Government has come under fire over funding for flood defences.

Danny Alexander MP, Chief Secretary to the Treasury, said: "We all saw the destruction and heartache caused by flooding last year and that is why this investment is vital to build up Britain's defences for the future.

"The projects we are announcing today will protect some of the country's most at risk locations ensuring that we will be as prepared as possible for future severe weather."

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  1. Gallery: Somerset Flooding - Before & After

    Before: a farm in West Yeo, near Bridgewater on the Somerset Levels. Pic: Bing maps

After: The flooded farmland in West Yeo

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Before: The village of Moorland near Bridgewater on the Somerset Levels. Pic: Bing maps

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After: Flooded properties in Moorland

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Before: Walton-On-Thames, Surrey

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Flooding Fund: £2.3bn To Protect 300,000 Homes

We use cookies to give you the best experience. If you do nothing we'll assume that it's ok.

More than 1,400 projects will receive a share of £2.3bn to protect against flooding for 300,000 homes.

But environmental group Friends of the Earth has suggested that figure is not high enough and there is still a £500m shortfall in the flood defences budget in the next parliament.

The spending includes major investment in areas including the Humber Estuary, with £80m set to be spent, and £196m for the Thames Estuary.

Ministers will also commit to spending £15.5m on flood defences in Somerset in the next six years - including £4.2m on the Somerset Levels which were hit badly by flooding last winter.

The Government has come under fire over funding for flood defences.

Danny Alexander MP, Chief Secretary to the Treasury, said: "We all saw the destruction and heartache caused by flooding last year and that is why this investment is vital to build up Britain's defences for the future.

"The projects we are announcing today will protect some of the country's most at risk locations ensuring that we will be as prepared as possible for future severe weather."

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  1. Gallery: Somerset Flooding - Before & After

    Before: a farm in West Yeo, near Bridgewater on the Somerset Levels. Pic: Bing maps

After: The flooded farmland in West Yeo

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Before: The village of Moorland near Bridgewater on the Somerset Levels. Pic: Bing maps

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After: Flooded properties in Moorland

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Before: Walton-On-Thames, Surrey

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Autumn Statement Bingo: What To Listen Out For

Political Editor Faisal Islam and Economics Editor Ed Conway pick out five key words and phrases likely to pass the lips of the Chancellor during the Autumn Statement.

Faisal's Five

:: Long-Term Economic Plan

The four word slogan drilled in to every piece of Conservative messaging online, offline, from speeches to mugs.

Designed to offer the electorate a feeling that the good times will return if they stick to the plan.

:: Northern Powerhouse

It was a phrase scratched together quickly by a clever Number 11 adviser to head off a Labour initiative on rebalancing the economy.

But it has grown in to a multifaceted plan for transport, science, devolving powers to create a mini-London along the M62.

:: The Choice

From now until the election the Conservative strategy is to shake the electorate into viewing the election not as a fight over policy, but as a straightforward choice between two prime ministers.

David Cameron with a growing economy after tough choices. And Ed Miliband, who they want the nation to view as an unconvincing anti-business former adviser to Gordon Brown.

:: Our NHS

In Conservative speeches the NHS has acquired a possessive pronoun.

The party knows public trust is weak for them on this, so they are after a score draw with Labour, neutralising claims of "privatisation" and attacking the Labour record in Wales.

:: In it Together

The old ones are the best. Many would argue that by promising unfunded tax cuts and further cash freezes in benefits, this phrase is now old hat.

But look out for the Chancellor trying to make the argument that British austerity was modest and moderate, in comparison to that seen in say Spain and Greece.

Ed's Five

:: A recovery for all

The point behind this buzzphrase is that the Treasury is worried about the perception that the recovery is not being shared by all - that the wealthiest have benefited most from its post-crisis policies while the poorest have faced the biggest squeeze.

:: Cutting the deficit by a third

There is bound to be some kind of line about how much the Government has cut the deficit - though the precise configuration tends to change from year to year.

:: "760,000 new businesses since 2010"

This recent buzzphrase is being trotted out repeatedly by Government ministers.

It's intended to underline how dynamic the business community is at the moment. And, indeed, the number of businesses being created right now is rising very quickly.

However, some notes of caution are in order: it is likely that a significant chunk of these new businesses are single-person companies.

:: Strongest growth in the Western world

The Chancellor will almost certainly point towards figures showing Britain is growing faster than many of its peers.

And indeed, the improvement in GDP, and the fall in unemployment, have been sharper in the UK than in many other developed countries.

:: Full employment

Earlier this year, the Chancellor pledged to try to "fight for full employment in Britain".

Expect this to resurface at some point in the Autumn Statement. In part this is another bit of political signalling - an effort to get people to focus on the positive news from the labour market.


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New Garden City To Be Built In Bicester

A new garden city will be built in Oxfordshire under Coalition plans to deal with a housing shortage.

The new town, which would have up to 13,000 homes, would be built near Bicester and would include a £44m capital investment from the Government for roads including a new junction on the M40.

The plans will be outlined in the National Infrastructure Plan set to be published on Wednesday ahead of the Autumn Statement, alongside a range of other housing measures.

A Government loan would be provided for the development of amenities including green transport.

Ebbsfleet in Kent was announced earlier this year as the location for the first modern garden city.

Bicester has also expressed an interest and could receive a new railway station as part of the proposals announced by Deputy Prime Minister Nick Clegg.

Mr Clegg told the Daily Telegraph: "The Liberal Democrats have long argued that garden cities are an idea whose time has come again.

"I am delighted that Bicester can now be confirmed as a pioneer in what I hope will be another wave of garden cities in this country.

"Bicester will get help from the Government with both significant capital investment and in helping developers build the amenities that are required to be a true garden town."

Under the proposals, a series of new communities with green spaces, sustainable transport and spacious housing will be built.

Mr Clegg has previously promised at least 10 would be created if the Liberal Democrats are part of the next Government.

:: Watch Sky News for the Chancellor's Autumn Statement live on Wednesday, 3 December, on Sky channel 501, Virgin Media channel 602, Freeview channel 132 and Freesat channel 202.


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Weak Growth Will Force More Cuts From Osborne

Written By Unknown on Senin, 01 Desember 2014 | 14.47

Britain is slowly getting back on its feet, but the recovery is still doing little to heal the public finances.

In the space of a year, the jobless rate in the UK has reduced rapidly, from 7.6% a year ago, to just 6% now.

Unemployment is back to pre-crisis levels and more people in work should mean more taxes and national insurance flowing to the Exchequer.

The Chancellor had certainly been counting on that cash to reduce shortfall between its resources, and its spending commitments.

Even the Government's accountants had predicted a 7% rise in income tax receipts for this year.

Yet the current tally shows they are only up about 0.4%.

Still, the tax year isn't over yet and the Office For Budget Responsibility expects tax receipts to be what they call "end-loaded" in 2014-15.

That is partly due to the shifting tax band brackets and a glut of self-assessment payments they expect to pour in after the deadline in January.

However, over the past year alone, factors such as weaker-than-expected wage growth, lower-than-expected residential property transactions and lower oil and gas revenues make it unlikely that either the Chancellor's or his accountants' expectations will be met.

Especially if you then factor in the lasting effects of the past six years.

Over the course of the financial crisis many highly paid jobs, like banking, have been lost and not yet replaced.

Meanwhile, the newly created jobs have been low paid and more workers are classed as "self-employed" - with both these groups paying less tax.

You will have noticed your tax free allowance has risen - to £10,500.

And with wage growth virtually stagnant, fewer workers are moving into higher tax brackets.

That all eats into the Chancellor's take.

This leaves the Treasury with far less revenue than predicted - and forced to make cuts and borrow more.

That's just what we expect George Osborne to do in the Autumn Statement on 3 December.

:: Watch Sky News for the Chancellor's Autumn Statement live on Wednesday, 3 December, on Sky channel 501, Virgin Media channel 602, Freeview channel 132 and Freesat channel 202.


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Cyber Monday: Retailers Brace For Online Surge

Retailers are preparing for another half-a-billion-pound online shopping surge on Cyber Monday today.

The event is the online-only follow-up to Black Friday, which saw bargain hunters spend £1.6bn across the high street and internet.

Card payment firm Visa said £600m of the £1.6bn raked in was spent on the internet.

Amazon, Currys and Tesco are among the big players lining up new deals and hoping their websites hold up to the virtual stampede.

Electronics retailer ao.com predicts today will be its best ever day of sales, with televisions and small kitchen appliances expected to be the best performing categories, and is offering a host of fresh deals.

Amazon.co.uk is planning to release hundreds of limited "lightning deals" which offer discounts for a specific period, with new offers coming online every 10 minutes.

Some sites, such as Currys, Argos and Game, crashed under the demand on Friday - the biggest ever online shopping day in the UK, according to Visa.

Visa Europe chief Kevin Jenkins said: "Compared to Black Friday last year online spend on Visa cards increased more than 30% and high street spend by about 20%.

"Heading into Cyber Monday we're likely to see a further £500m spent online, peaking in the early evening as workers return home and log on."

But security experts have warned consumers to be wary of cyber crime and take basic precautions as they shop.

Giovanni Ruberto, online security expert at Intel Security, said: "Cyber Monday is set to be the biggest online shopping day this year, and of course the bad guys know this.

"Whilst consumers are logging on from their laptop or smartphone to grab a bargain, you can bet cybercriminals will be doing all they can to trick unwitting consumers to hand over credit card information and personal details."

Recent years have seen online shopping peak on the first Monday in December.

It is thought to be down to many people's last payday before Christmas falling on the previous Friday and a weekend spent browsing the shops before buying online.

However, some retailers have been criticised for whipping people into a shopping frenzy and not having proper security at Black Friday events.

Shoppers were filmed arguing and fighting each other for cut price televisions, with witnesses saying some bargain hunters behaved "like animals".

Former Archbishop of Canterbury Dr George Carey on Sunday called the supermarkets "irresponsible" and said the event "serves no useful purpose".

Black Friday was introduced in America on the day after Thanksgiving and is thought to have been given its name because brisk business was said to have helped retailers back into profit - into the black.

The event was introduced to this country by Amazon in 2010.


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BG Group CEO Sees Share Package Cut By 53%

Oil and gas exploration giant BG Group has cut the pay package, originally worth up to £25m, for its incoming chief executive.

Helge Lund's share award has been revised downwards by some 53%, from around £10m to about £4.7m.

He will continue to receive a salary, pension and benefits package of £15m.

Last week the Institute of Directors warned that the pay deal for the new CEO was "excessive" and "inflammatory" and urged shareholders to vote against the deal.

The share award reduction now means the proposal does not have to be approved by shareholders, and is within policy guidelines formulated last May.

Mr Lund takes over BG Group in early 2015, after previously turning Norway's Statoil into a publicly-traded company.

The share award turnaround comes as the price of oil continues to fall.

Brent crude is down 40% since mid-June and approaching five-year lows.

However forecourt prices have only dropped 6% during 2014, according to the AA motoring group.

Despite the downward pressure on prices, potentially increasing the use of motor vehicles, fuel sales have dropped in the last year.

The AA said October sales were down 20% on the same month last year, even though pump prices were 8p a litre cheaper.

The declining sales strikes another chord of concern for the Government, as it sees reducing tax and duty receipts as a result.

Chancellor George Osborne has seen income tax revenue remain static, confounding a forecast 7% rise as the jobless count drops.

More follows...


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