US Jobless Rate Steady Despite Massive Hiring

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

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.

Video: Lorry Drivers Could Bring Xmas Woe

"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

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.

Video: Osborne Says Britain In Recovery

:: 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.

Video: Stamp Duty: Good News For Buyers

:: 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'

Video: Number Crunching The Changes

:: 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.

Video: Autumn Statement: The Highlights

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.

Video: Miliband Laughs Off Osborne Jibe

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%.

Video: Autumn Statement Reaction

:: "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.

Video: Stamp Duty: Good News For Buyers

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."

Video: House Buyer's Delight

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.

1/5

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'

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.

Video: George Osborne's Autumn Statement

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.

Video: Autumn Statement: Debt Vs Deficit

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.

Video: Nigel Lawson On Autumn Statement

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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