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Human Rights Act divides Tories

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Human Rights Act divides Tories The depth of divisions at the heart of Government over the Human Rights Act have been exposed after Justice Secretary Kenneth Clarke flatly dismissed a call from Home Secretary Theresa May for it to be repealed. Mrs May won a standing ovation at the Conservative Party conference in Manchester after telling party activists that the Act "needs to go" to restore "sanity" to the UK's ability to deport foreign nationals. She said she is planning to change the rules which prevented the deportation of some prisoners on human rights grounds, and sparked audible gasps from the audience as she reeled off a list of cases of offenders who could not be deported because it would breach their right to a family life. "We all know the stories about the Human Rights Act: the violent drug dealer who cannot be sent home because his daughter, for whom he pays no maintenance, lives here; the robber who cannot be removed because he has a girlfriend; the illegal immigrant who cannot be deported because, and I am not making this up, he had a pet cat," said Mrs May. But Mr Clarke said such cases had "nothing to do with the Human Rights Act" and cast doubt over whether they are genuine. He offered to have a bet with Mrs May that no individual had ever escaped deportation because of ownership of a cat, and he condemned the "trivialisation" of human rights issues which, he said, are very important to British people. Speaking in a meeting hosted by the Telegraph on the fringe of the conference, Mr Clarke said: "She has given her opinion. We all have our opinions. It is not my opinion, as it happens. I have never had a conversation on the subject with Theresa. I shall have to look into these strange cases she is throwing out. They are British cases and British judges she is complaining about and I can't believe that anybody has had deportation refused on the basis of owning a cat." Mr Clarke suggested that some of the cases which Mrs May complained about may be down to misinterpretation of the rules by immigration officers and said he would be "quite content" for her to make changes to their procedures. Referring to the case involving the cat, a Judicial Office spokeswoman said: "This was a case in which the Home Office conceded that they had mistakenly failed to apply their own policy - applying at that time to that appellant - for dealing with unmarried partners of people settled in the UK. That was the basis for the decision to uphold the original tribunal decision - the cat had nothing to do with the decision." Ms May was pressed about the accuracy of her account of the case in an interview with BBC Radio 4's World at One. She responded: "Of course the things I said in my speech were checked before they went in my speech but... if somebody has said that there is a different situation then obviously we will look at the quote that has come out and have another look at the case."

Landlady hails TV football victory

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Landlady hails TV football victory Pub landlady Karen Murphy has spoken of her joy after defeating the Premier League in a bid to show football matches via a foreign TV decoder. Mrs Murphy took up her battle against the league after being told she could not use a cheap foreign provider to show games at her pub, The Red White and Blue, in Portsmouth. But the European Court of Justice said the exclusive system was "contrary to EU law", leaving Mrs Murphy thrilled. She said: "It's been the battle of the little guy - these corporate people feel they can throw money at things and just win." Mrs Murphy said: "My reaction is relief, excitement, I'm thrilled. It has taken rather a long time, this has been going on for six years, but obviously it's been worth it. It's taken quite a chunk of my life but I'm glad I took it on. It's been like Karen versus Goliath." Mrs Murphy said she took on the battle because she could not afford the subscription fees. She said: "I am sure the likes of the FA and Sky will do anything to protect their interests. I don't know how it will pan out, I hope it doesn't go back to the way it was as it's not fair for the customer, it's not a free market. "I paid £800 for a year's subscription compared to £700 a month for Sky in my small pub. In this climate that's a massive, massive boost to our income, I couldn't afford to have Sky and I couldn't afford to have it again, ever." Mrs Murphy said the ruling will now return to the High Court which had referred it to the EU for clarification of the law. The judgment said: "The Court of Justice holds that national legislation which prohibits the import, sale or use of foreign decoder cards is contrary to the freedom to provide services and cannot be justified either in light of the objective of protecting intellectual property rights or by the objective of encouraging the public to attend football stadiums." The verdict could mean a major rethink by the Premier League of its current exclusive agreements with Sky Sports - which provides the League with most of its television income - and ESPN.

School arrest by riot probe police

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School arrest by riot probe police Detectives investigating August's outbreak of looting and disorder have arrested a further 14 people in a series of dawn raids. West Midlands Police said those detained in the latest wave of arrests include a 14-year-old boy who was taken into custody at a school in Wolverhampton on suspicion of burgling a jewellery store in the city. The raids were carried out in Birmingham, Tipton, Oldbury, Warley and Wolverhampton early on Tuesday morning as part of Operation View, bringing the total number of riot-related arrests in the West Midlands to 671. Detective Inspector Paul Drover, who is leading the operation, said: "For the second time in five days we have gone out and targeted suspected outstanding offenders. "Hopefully the message is now starting to get through to those involved in the disorder that we simply will not stop until we have located and arrested you. "We continue to trawl hours and hours of CCTV footage to identify suspects and these arrest missions are set to continue for the foreseeable future for as long as we still have offenders outstanding." In a direct message to those involved in the disorder, the officer added: "The best thing you can do if you don't want us knocking on your door, is hand yourself in at your local police station."

Charlotte Church inquiry request

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Charlotte Church inquiry request Charlotte Church and former Crimewatch presenter Jacqui Hames have asked to be included in the inquiry into media ethics and phone hacking. In a preliminary hearing for the Leveson Inquiry, David Sherborne, who represents a group of "victims", asked for the two celebrities to be added to the list of Core Participants (CPs) in the first stage of the probe. He told the hearing, held at the High Court, that both had been victims of hacking by News Group Newspapers and other "media wrongdoing". If the applications - which will be ruled on by Lord Justice Leveson at a later date - are successful, the total group of victims who are Core Participants in the inquiry will be 48. The group, represented by Mr Sherborne, already includes actress Sienna Miller, PR guru Max Clifford, serving MPs and Christopher Shipman, son of mass murderer Harold Shipman. The first part of the inquiry will look at the culture, ethics and practices of the press and its relationship with the police and politicians. Core participants for this part also include former MPs such as Lord Prescott and Mark Oaten, as well as football agent Sky Andrew and Coronation Street actress Shobna Gulati. But Rebekah Brooks, former editor of The Sun, The News of the World and chief executive officer of News International, was refused the status by Lord Justice Leveson previously. He said her involvement is more focused on the second part of the inquiry. He also refused the status to Elaine Decoulos, who made an application in person during the hearing, saying she had been the victim of libel by newspapers in Scotland, England and the US. Lord Justice Leveson said oral evidence for the first part, which will be televised live, could start as early as next month.

Government to consider 'fat tax'

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Government to consider 'fat tax' The Government will consider introducing a "fat tax" to tackle Britain's growing levels of obesity, David Cameron has said. The Prime Minister said drastic action was needed to prevent health costs soaring and life expectancy falling. Under measures introduced recently by Denmark, a surcharge is being placed on foods that contain more than 2.3% saturated fat. The levy is targeting high-fat products such as butter, milk, cheese, pizza, meat, oil and processed food in a bid to improve health. Danish consumers have criticised the step, while retailers have complained about excessive bureaucracy. However, Mr Cameron said a similar move should not be ruled out in the UK. "I think it is something that we should look at," he told 5 News during a round of broadcast interviews at Tory conference in Manchester. "The problem in the past when people have looked at using the tax system in this way is the impact it can have on people on low incomes. "But frankly, do we have a problem with the growing level of obesity? Yes. "Do we have a kind of warning in terms of, look at America how bad things have got there, about what happens if we don't do anything? Yes, that should be a wake-up call."

Cameron warns of 'moment of danger'

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Cameron warns of 'moment of danger' David Cameron has warned that the world economy is at a "moment of danger" as stock markets plunged. The FTSE 100 Index closed below the 5,000-point mark, down 2.6%, for the first time since July 2010 after a shock profit warning from Germany's Deutsche Bank added to fears of a Greek debt default. Britain's top 100 companies saw £34 billion wiped from their value from Tuesday's falls alone after alarm bells over the health of Europe's banks continued to ring. One European lender, Dexia, was fighting for its future as it buckles under the weight of its exposure to Greece's burgeoning debt pile. Chancellor George Osborne has left the Conservative Party conference in Manchester to join EU finance ministers in Luxembourg for the latest round of talks on how to stabilise the chaotic situation. He said: "I think there is, of course, a risk out there in the European banking system and you have seen that with trouble with the Dexia bank, the Franco-Belgian bank, that has got itself into trouble. "Now I think eurozone members can get ahead of the curve, make sure their banks have got adequate amounts of capital, again there was a broad agreement about that and we need to get on now and strengthen the eurozone banks." Share prices have continued to fall around the globe following Athens' admission on Monday that it will miss its deficit reduction targets, and on concerns about stalling growth. Speaking to the BBC at the Conservative Party conference in Manchester, Mr Cameron said: "I think it is a moment of danger. I think there are some very serious clouds on the horizon, chief amongst them is the problems in the eurozone where the French economy, the German economy have both stalled, and that is a real problem for the British economy. "I think what we've got to do is line up the problems. Dealing with the eurozone, that's absolutely vital, then we've got to the look at the British economy and say look we've got a deficit reduction plan, that's good, that keeps our interest rates low, but we need more on the growth front."

Hugh Grant's hacking plea to Tories

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Hugh Grant's hacking plea to Tories Actor Hugh Grant has appealed to the "tradition of bravery" within the Tory Party as he met Prime Minister David Cameron to talk about phone-hacking. The 51-year-old star of Love Actually said the Conservatives had reason to fear the findings of the Leveson Inquiry, but he wanted to discover whether Mr Cameron is a "man of principle" who would stand up to Rupert Murdoch. "There's a negative way of looking at it, there's plenty of negative ways of looking at it," he said. "But there are positive ways of looking at it as well. "It's an opportunity, an opportunity for the Conservatives, even the Conservatives who have been so in bed with News International, they must have quite enjoyed that sense of fresh air in July - 'Oh my God, we can be our own people, we can say what we like now, we don't have to obey our masters'. "So maybe there is some appetite there to maintain that freedom and then there is a history, and the Conservatives are proud of their history of standing up to bullies, whether it was the City, whether it was Europe, or whether it was the unions. "And here we are faced with another bully who has undemocratically had a massive sway over the running of this country for 20 years and maybe this will appeal to their traditions of bravery." Speaking shortly before meeting Mr Cameron at the Conservative Party Conference in Manchester, he said their conversation would be "pricklier" but he wanted to take the "temperature" of the Prime Minister and the Conservatives for changes to the media in the wake of the scandal. The actor was speaking on behalf of the Hacked Off campaign, launched shortly after it emerged that Milly Dowler's voicemail had been intercepted. He said he found it "hard to believe" that Mr Cameron did not know what was going on at News International when he appointed his ex-communications chief, former News of the World editor Andy Coulson. "There are after all many reasons why the Conservative Party in particular might not have the appetite for the kind of media reform that we think is necessary," he said. "It's going to be important to see whether the... Prime Minister is a man of principle or whether he was just sounding good in July."

Apple unveils new version of iPhone

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Apple unveils new version of iPhone The latest iPhone has been unveiled by software giant Apple. Phil Schiller, senior vice president of Apple, said the iPhone 4s looks similar to the previous iPhone4 model and shares its glass front and back. He added: "But don't be deceived. Inside it's all new." He said the new A5 chip in the device would allow it to use much faster graphics for gameplay, and would allow users to download data twice as fast as the previous model. Mr Schiller added that its camera has five lenses, one more than the iPhone4, which will result in sharper pictures. Speaking from a videolink to a press conference at Apple's California base, he also showed off a series of photographs he described as "stunning" which were taken with the new phone. The phone also allows users to take HD video. Senior vice president of iPhone Software Scott Forstall then showed off the phone's voice recognition software, called Siri, which allows users to ask the phone questions and get answers. He said it works as "your humble, intelligent personal assistant that goes everywhere with you and can do anything for you just by asking". Mr Forstall said Siri understood the language and context of users' questions and then gave a series of examples by asking the phone about the weather, his diary and the stockmarkets. "I've been in the AI (artificial intelligence) field for a long time and this still blows me away," he said. The phone will be available in the UK on October 14 - the same day as the United States. The 64gb version will cost £260, the 32gb £195 and the 16gb £130.

Ministers in row over human rights

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Ministers in row over human rights Senior Cabinet ministers have become embroiled in a furious row over human rights, after Justice Secretary Kenneth Clarke publicly questioned claims made by Home Secretary Theresa May in a speech to the Conservative Party conference. Announcing plans to change rules which prevent the deportation of foreign offenders on human rights grounds, Mrs May cited the case of an illegal immigrant who she said had escaped being sent back to his home country because he had a pet cat. But Mr Clarke said he did not believe that any such case existed, and issued a challenge to his Cabinet colleague to accept his bet that she could not provide details of it. The Judicial Office, which represents judges, later said that the cat - named Maya - had "nothing to do" with the 2009 decision to allow a Bolivian man to remain in the UK, and civil rights group Liberty said it was "dangerously unbecoming" of Mrs May to use the case to bolster her argument. But aides to the Home Secretary insisted that she was right, pointing out that the immigration judge who initially heard the case cited the cat as a factor in his conclusion that the man and his partner enjoyed a family life together in the UK. And Downing Street backed the Home Secretary, with a source close to Prime Minister David Cameron saying that the Justice Secretary would doubtless back Mrs May now she had produced her evidence. The Justice Secretary agreed with the rule changes being introduced by Mrs May, said the source. The row, quickly dubbed "Catgate", dominated the day's proceedings at the Manchester conference. Mrs May had earlier won a standing ovation after telling Tory activists that the Human Rights Act "needs to go" to restore "sanity" to the immigration system She sparked audible gasps from the audience as she reeled off a list of offenders who she said could not be deported because of rulings that it would breach their right to a family life - including the cat allegation. But Mr Clarke said such cases had "nothing to do with the Human Rights Act" and cast doubt over whether they were all genuine. He condemned the "trivialisation" of serious issues in the current political debate over the Act. He pointed out that Mrs May had been expressing a personal opinion on repeal of the HRA, and that official Government policy was to await the conclusions of a review of its effectiveness. "The British are great believers in human rights. We invented the idea. It goes back to Magna Carta," said Mr Clarke.

Apple unveils 'all new' iPhone

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Apple unveils 'all new' iPhone The latest "all new" iPhone complete with voice recognition software has been unveiled by technology giant Apple. The iPhone 4S will go on sale in the UK on October 14 - the same day it is released in the United States. Phil Schiller, senior vice-president of Apple, said the new phone looks similar to the previous iPhone4 and shares its glass front and back and trademark stainless steel band. He added: "But don't be deceived. Inside it's all new." The phone has a new A5 chip inside which allows it to use much faster graphics for gameplay and download data twice as fast. Senior vice-president of iPhone Software Scott Forstall came on stage to show off the voice recognition software, called Siri, which allows users to ask the phone questions and get answers. He said it works as "your humble, intelligent personal assistant that goes everywhere with you and can do anything for you just by asking". He said: "I've been in the AI (artificial intelligence) field for a long time and this still blows me away." The press conference at Apple's California base was carried by videolink to its store in Covent Garden, central London. The 64gb phone will sell for £260, the 32gb for £195 and the 16gb for £130. But technology expert Ernest Doku of uSwitch.com said some people would be "bitterly disappointed" at the announcement of an upgraded phone rather than a brand new model. He added: "A phone which talks to you and answers your questions? That's the iPhone 4S. Slightly disappointing from a hardware standpoint, but Siri has the potential to revolutionise how we use our mobiles. Apple is gambling that people will see this as a reinvention of the wheel."

99 Afghan casualty incidents probed

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99 Afghan casualty incidents probed At least 30 Afghan civilians are reported to have died in incidents involving British forces over the past six years, documents obtained under the Freedom of Information act have revealed. The Royal Military Police (RMP) has investigated almost 100 incidents between January 2005 and March this year in which troops are alleged to have killed or injured civilians in Afghanistan, the Guardian reported. They include road traffic accidents, the alleged shootings of civilians and the alleged murder or manslaughter of a man on a motorcycle who was said to have been shot by a sniper. The Ministry of Defence (MoD) said in the documents that the RMP had launched 99 investigations into "incidents in which Afghan civilians have allegedly been killed or wounded by British military personnel in Afghanistan", according to the Guardian. However, the Service Prosecuting Authority would not tell the newspaper how many soldiers had been prosecuted as a result of the investigations. The edited details of 50 investigations were handed over to the Guardian. An MoD spokesman said: "The protection of the Afghan civilian population is at the core of our military strategy. "The International Security Assistance Forces (Isaf) have worked extremely hard to reduce civilian casualties, introducing new rules to govern the use of force. And we have had considerable success. "However, the vast majority of civilian casualties are caused by the Taliban. "When we are made aware of an incident or alleged incident, the UK follows the robust Isaf process to investigate it."

Britons hurt in US helicopter crash

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Britons hurt in US helicopter crash Three British tourists have been taken to hospital after a helicopter crash in New York which left a fourth person dead. The four passengers were pulled out of the East River after the accident happened at 3.22pm local time. Two of those injured, both women, are in a critical condition. A man is in a stable condition in hospital. All are believed to be from England, a New York Police Department spokesman said. NYPD spokesman John Grimpel said the names and ages of those involved are not yet known. A spokesman for the New York Fire Department said: "We got the call at 3.22pm for us to respond to a helicopter crash. "We did, and four people were pulled from out of the water. "Two females are in a critical condition. One had suffered a cardiac arrest and one a respiratory arrest. "They were both taken to Bellevue Hospital." The injured man was taken to NYU Hospital. A Foreign and Commonwealth Office spokesman said: "We are urgently investigating reports."

Our plan is working, says Cameron

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Our plan is working, says Cameron Prime Minister David Cameron is to acknowledge that anxious voters cannot yet see signs of his Government's economic strategy taking Britain out of recession. But he will insist that the coalition's deficit-reduction programme is laying the foundations for a better future and will urge Britons to stick with the task of paying down debt. In a high-profile speech to the Conservative conference in Manchester, Mr Cameron will tell activists that he believes there are better times ahead for the UK and call on its people to show the spirit of "can-do optimism" needed to fight their way out of adversity. He will say that he has the leadership needed to "turn this ship around" and set the country on course for a more prosperous future. Aides said that the speech amounted to an acknowledgement that the economic situation over the past 18 months - during which growth forecasts have been repeatedly downgraded - has been worse than predicted when the coalition took power. But Mr Cameron will say that it is vital for the country not to be "paralysed by gloom and fear" but to show the energy and appetite needed to compete with emerging economic giants like China, India and Brazil. He will make clear that he has no intention of following Labour calls to slow down the pace of cuts and offer temporary tax breaks to stimulate growth, warning that voters would be "fooling ourselves" if they believed they could solve the country's problems without abandoning the "failed ideas" of the past. And he will tell the conference: "Our plan is right. And our plan will work. "I know you can't see it or feel it yet, but think of it like this: The new economy we are building is like building a house. The most important part is the part you can't see - the foundations that make it stable. "Slowly but surely we're laying the foundations for a better future. But this is the crucial point: It will only work if we stick with it."

Britons tourists in chopper crash

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Britons tourists in chopper crash Three British tourists are believed to have been on board a helicopter that crashed into the East River in New York, the city's mayor has said. There were a total of four adult passengers on the flight, one of whom has died. Two of the injured are now fighting for their lives in hospital. The accident happened just after 3.20pm local time, shortly after the helicopter had taken off. New York Mayor Michael Bloomberg said it had been "a terrible accident" involving people who had come "to see the best of our city". He added: "We think, and bear in mind the story changes every minute, but we believe two were Brits who lived in Portugal, two lived in Australia, one probably was Australian and one was English, but that's changed a number of times, and we're still trying to talk to the families. "All New Yorkers feel for this family, and we wish it had not happened and our prayers are with the deceased. "And our prayers are also that those three people in the hospital recover from their injuries." He said the privately-owned Bell Helicopter crashed "just after taking off" from the 34th Street helipad. The pilot is thought to have known the passengers personally, he added.

Cameron 'fares poorly on economy'

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Cameron 'fares poorly on economy' Most voters have a poor impression of David Cameron's handling of the economy, according to an opinion poll. The ComRes survey for ITV News found 54% rate the Prime Minister's leadership on economic matters "fairly or very poor" and 57% said the same of his efforts to manage the eurozone crisis to the UK's advantage. Mr Cameron received positive reviews, though, for his ability to appear statesmanlike, 51% saying he does that "fairly or very well", and for his response to the riots (50%). And he fared well when pitted against his six most recent predecessors in 10 Downing Street, being rated as good or better than them all. More than one in five (21%) said he is a better prime minister than Margaret Thatcher though slightly more (22%) ranked him worse than the man he removed from power, Labour's Gordon Brown. ComRes interviewed 2,047 adults online between September 30 and October 2 and data was weighted to be demographically representative of all adults.

'British woman' killed in NY crash

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'British woman' killed in NY crash A woman who died in a helicopter crash in New York is believed to have been a 40-year-old British woman living in Australia, police said. She was one of four tourists on board the aircraft that plunged into the East River shortly after taking off. Two of the injured are now fighting for their lives in hospital and another passenger is in a serious but stable condition. Three of the four passengers are believed to be British, New York Mayor Michael Bloomberg said. A spokesman for the New York Police Department said of the casualties: "Two females are in an extremely critical condition at Bellevue Hospital and one male is in a serious but stable condition at NYU Hospital. "All four were known to each other. We do not know if they were blood relatives or just friends, but they were travelling in a group." A spokesman from the New York City Fire Department said one of the injured women had suffered a cardiac arrest and the other a respiratory arrest. The American pilot, Paul Dudley, director of Linden Airport in New Jersey, did not need hospital treatment. The accident happened just after 3.20pm local time on Tuesday, shortly after the helicopter lifted off from the busy 34th Street Heliport. Mayor Bloomberg said it had been "a terrible accident" involving people who had come "to see the best of our city".

'British woman' killed in NY crash

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'British woman' killed in NY crash A woman who died in a helicopter crash in New York is believed to have been a 40-year-old British woman living in Australia, police said. She was one of four tourists on board the aircraft that plunged into the East River shortly after taking off. Two of the injured are now fighting for their lives in hospital and another passenger is in a serious but stable condition. Three of the four passengers are believed to be British, New York Mayor Michael Bloomberg said. A spokesman for the New York Police Department said of the casualties: "Two females are in an extremely critical condition at Bellevue Hospital and one male is in a serious but stable condition at NYU Hospital. "All four were known to each other. We do not know if they were blood relatives or just friends, but they were travelling in a group." A spokesman from the New York City Fire Department said one of the injured women had suffered a cardiac arrest and the other a respiratory arrest. The American pilot, Paul Dudley, director of Linden Airport in New Jersey, did not need hospital treatment. The accident happened just after 3.20pm local time on Tuesday, shortly after the helicopter lifted off from the busy 34th Street Heliport. Mayor Bloomberg said it had been "a terrible accident" involving people who had come "to see the best of our city".

Stress now main work sickness cause

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Stress now main work sickness cause Stress has become the main cause of long-term sickness absence for the first time across British industry, a new study has revealed. Research in almost 600 organisations also found a link between job security and mental health issues, with employers planning redundancies "significantly" more likely to report problems among their staff. Stress-related absence has increased more in the public sector, according to the report by the Chartered Institute of Personnel and Development (CIPD) and health firm Simplyhealth. Restructuring and organisational change were the main causes of stress among public sector workers, highlighting the impact of cuts in jobs, pay and pensions, said the report. Public sector staff were also being affected the most by job insecurity amid redundancies planned in the coming months, it was found. Dr Jill Miller, a CIPD adviser, said: "The survey this year shows that stress is for the first time the number one cause of long-term sickness absence, highlighting the heightened pressure many people feel under in the workplace as a result of the prolonged economic downturn. "Stress is a particular challenge in the public sector, where the sheer amount of major change and restructuring would appear to be the root cause. "To a large degree, managing stress is about effective leadership and people management, particularly during periods of major change and uncertainty. "Line managers need to focus on regaining the trust of their employees and openly communicating throughout the change process to avoid unnecessary stress and potential absences. "They also need to be able to spot the early signs of people being under excessive pressure or having difficulty coping at work and to provide appropriate support."

Inflation 'held by food prices'

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Inflation 'held by food prices' Higher food bills kept the rate of shop price inflation unchanged last month, despite falls for clothing and footwear as retailers stepped up clearance sales to entice shoppers. Food prices rose by 5% in September, unchanged from August and up by 0.1% over the month, even though the price of some commodities eased back, according to the British Retail Consortium (BRC). Overall, the rate of shop price inflation was 2.7% in September, unchanged from August, but the mounting pressures on the high street meant non-food prices rose by slightly lower than the previous month, at 1.3%. Clothing and footwear prices fell by 3.4% year on year, against a 1.7% fall in August, and the fastest fall in annual prices in the sector for nearly two years. Retailers cleared stocks to make way for new ranges, which contributed to the decrease, the BRC said. There were offsetting rises in the costs of gardening equipment and DIY, and furniture and furnishings, with household textiles up especially sharply. Stephen Robertson, BRC director general, said: "The pressures on prices from world commodities, import inflation and January's VAT rise haven't gone away but they haven't worsened either." He said the food inflation figure was unchanged as higher commodity costs earlier in the year are still feeding into the figures. But the prices of oil and corn have fallen recently, which has a direct influence on the cost of meat, while wheat now costs less than a year ago. Earlier this month Tesco also launched its Big Price Drop and committed £500 million towards reducing the price of 3,000 lines including milk, bread, fruit and vegetables. Mr Robertson added: "Fundamental conditions are unlikely to change much this side of Christmas but next month we'll see what effect the supermarket price war, based on straight price cuts rather than other forms of promotion, is having on food inflation."

Employers 'cautious about hiring'

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Employers 'cautious about hiring' Confidence among employers is "fragile", with demand for staff increasing at its slowest pace for two years, a new report has shown. A survey of 400 recruitment and employment firms showed that permanent and temporary staff appointments "moderated" last month. The Recruitment & Employment Confederation (REC) said demand for staff increased at the slowest pace since October 2009, while the number of available candidates was increasing. Pay rises were "subdued", with hourly rates for temporary workers showing a "modest" increase last month. Kevin Green, chief executive of the REC, said: "Employers are being very cautious about hiring at the moment. This has been exacerbated by weak consumer confidence which leads to people staying in their current role rather than changing jobs. "The private sector is still producing new jobs but not in the quantity needed to offset the job losses in the public sector. It's vital that we look at ways to boost these numbers, particularly for young people who continue to be disproportionately affected by unemployment." The REC urged the Government to introduce a National Insurance holiday for at least a year to encourage smaller firms to take on young people and called on the Bank of England to resume quantitative easing. Bernard Brown, head of business services at KPMG, which helped with the report, added: "The employment agencies surveyed reported that the slower expansion of placements was linked to a lack of confidence among clients over the economic outlook." A Department for Work and Pensions spokesman said: "We always said that the recovery would be choppy and we do not underestimate the scale of the challenge that we face to help people into employment. "The Government is committed to support the economy and encourage businesses to invest and create jobs. The new Work Programme is now up and running and will offer jobseekers flexible support tailored to their needs to help them into employment."
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