September 8, 2010, 5:31 pm
![Image]( "Cameron mourns 'hero figure' father")
Prime Minister David Cameron is in France following the sudden death of his father Ian on Wednesday.
Mr Cameron rushed to his 77-year-old father's bedside in hospital in the Mediterranean port of Toulon after he suffered a stroke while on holiday.
The Prime Minister was able to see his father before he died, thanks to the intervention of French President Nicolas Sarkozy, who arranged a helicopter from Nice airport to the hospital.
Mr Sarkozy also arranged for Mr Cameron to stay overnight in France, but Downing Street have not yet released details of how long the premier will stay before returning to the UK.
Condolences were offered to the Cameron family by politicians on all sides of the House of Commons, including Deputy Prime Minister Nick Clegg, Labour's acting leader Harriet Harman and former Prime Minister Gordon Brown.
Mr Cameron's mother Mary telephoned at around 6am on Wednesday to alert him to the situation, which arose as the couple were halfway through a two-week holiday.
After speaking to local doctors about his father's condition, the premier took a commercial flight from London's City Airport, accompanied by brother Alex and sister Clare.
Mr Cameron was said to be "relieved" to have been at the bedside, and "pleased" that his father died peacefully during a "happy family holiday".
Friends said Ian Cameron was "proud" to see his son become Prime Minister and had visited both 10 Downing Street and Chequers. However, the family's various holiday plans meant he had not met his latest granddaughter Florence.
Mr Cameron previously described his father as a "huge hero figure" and praised his optimism.
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September 8, 2010, 5:31 pm
![Image]( "Backlash against BP spill report")
BP's investigation into the Gulf of Mexico spill sparked a backlash from its contractors and US politicians who accused the oil giant of attempting to shift some of the blame.
The internal inquiry, led by the company's head of safety and operations, Mark Bly, found BP was responsible in part for the tragedy, but also pointed the finger at rig owner Transocean and cement contractor Halliburton.
The report said a "complex and interlinked" series of events involving mechanical failures and human judgments led to the disaster.
The explosion on April 20 killed 11 workers and caused an estimated 4.9 million barrels of oil to gush into the Gulf - the largest offshore spill in history.
Commenting on yesterday's findings, outgoing chief executive Tony Hayward, who was forced to stand down in the wake of the disaster, said: "The investigation report provides critical new information on the causes of this terrible accident. It is evident that a series of complex events, rather than a single mistake or failure, led to the tragedy. Multiple parties, including BP, Halliburton and Transocean, were involved."
The four-month investigation found shoddy cement work at the bottom of the Deepwater Horizon well failed to hold gas and oil in its reservoir, which leaked into the casing.
BP and Transocean employees then incorrectly accepted negative pressure readings in the crucial minutes before the explosion - meaning they did not spot the gas leak, the inquiry found.
Further mechanical failures then allowed gas to be vented directly on to the rig rather than being diverted overboard - where it ignited. The rig's blow-out preventer, a protective valve, should have sealed the well but failed to operate.
Based on its key findings, the investigation team proposed a total of 25 recommendations designed to prevent such an incident. The recommendations are directed at strengthening blow-out preventers, well control, pressure-testing for wells, emergency systems, cement testing, rig audit and verification, and personnel competence.
Accepting full responsibility for the disaster could lead to BP being found guilty of gross negligence and fined up to 20 billion US dollars (£13 billion) so it was always likely to maintain its stance that other parties were involved.
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September 8, 2010, 5:31 pm
![Image]( "Coulson faces new hacking claim")
Labour is set to step up pressure on the Prime Minister's communications director Andy Coulson, as the Commons debates allegations of phone-hacking at the News of the World.
The emergency debate came amid fresh allegations by a former senior reporter on the Sunday tabloid that journalists routinely used private investigators to hack phones and access confidential records when Mr Coulson was editor.
Speaking to The Guardian, Paul McMullan, a former features executive and member of the NoW's investigations team, questioned Mr Coulson's assertion that he was not aware of hacking by staff.
The Guardian said that Mr McMullan was one of six former reporters to back up claims that obtaining information by potentially illegal means was rife on the paper during Mr Coulson's tenure from 2003-07 - something the News of the World strenuously denies.
He and the other former reporters said that private investigators were used routinely to gather information, and that reporters had to go through desk editors in order to commission their services. Mr McMullan told The Guardian that he personally commissioned private investigators to commit several hundred acts which could be regarded as unlawful.
As deputy features editor on the News of the World, he was in daily contact with a private investigator who sold confidential information from phone companies and government databases. And he said that reporters did not believe at the time that it was illegal to hack into voicemail.
"I don't think at the time senior editors at the paper thought it was an issue," said Mr McMullan. "Everybody was doing it. Coulson would certainly be well aware that the practice was pretty widespread. He is conceivably telling the truth when he says he didn't specifically know every time a reporter would do it. I wouldn't have told him. It wasn't of significance for me to say I just rang up David Beckham and listened to his messages. In general terms, he would have known that reporters were doing it."
And he added: "How can Coulson possibly say he didn't know what was going on with (private investigators)? He was the brains behind the investigations department. How can he say he had no idea about how it works?"
Mr Coulson has always denied any knowledge of the illegal eavesdropping at the NoW, for which ex-royal editor Clive Goodman and a private detective were jailed in 2007. The News International-owned paper insists that the Goodman case was isolated and there was no widespread culture of wrong-doing among staff. But former reporter Sean Hoare reignited the row last week by publicly claiming his boss had been aware of the activities.
Metropolitan Police officers are planning to interview Mr Hoare about his claims, and Assistant Commissioner John Yates said he is likely to speak to Mr Coulson as he considers whether to reopen the police probe.
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September 8, 2010, 5:31 pm
![Image]( "House prices edge ahead by 0.2%")
House prices were broadly unchanged during August as activity in the property market remained subdued, figures have shown.
The average cost of a home edged ahead by just 0.2% during the month to stand at £167,953, following a 0.7% rise in July, according to Halifax.
The recent gains have reversed most of the falls seen during the previous three months, leaving house prices at a similar level to the end of last year, but around 16% below their August 2007 peak.
The figures came as the National Association of Estate Agents (NAEA) said activity in the market had suffered its traditional seasonal dip during August.
The average number of potential buyers registering with estate agents fell sharply to 250 during August, down from 292 the previous month.
The average number of properties sold per branch also dipped slightly during the month to seven, down from eight in July.
But the group stressed that while activity had fallen compared with July, the figures compared well with August 2009, and suggested the market was broadly stable.
It said: "A drop-off in activity is always to be expected in August and there is nothing in this month's figures to suggest that anything other than this cyclical pattern is to blame for slightly lower figures.
"September will be the telling month to give an indication as to the current strength of the market."
Both the Halifax and the NAEA figures are more upbeat than ones reported by Nationwide last week, which showed that house prices had fallen by 0.9% during August, following a drop of 0.5% in July.
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September 8, 2010, 5:45 pm
![Image]( "Capello will quit after Euro 2012")
England manager Fabio Capello will quit as national coach after Euro 2012 to enjoy "life as a pensioner", the Italian has confirmed.
After an abysmal World Cup performance, many pundits believe Capello was fortunate to remain in his £6million-a-year post.
Heading into this week's qualifying double-header, there were still doubts over the 64-year-old's tenure, with many believing two poor results would force the Football Association to take decisive action.
Those concerns have now been removed after a couple of excellent performances against Bulgaria and Switzerland that have yielded six points and seven goals.
That the tally was achieved despite the absence of skipper Rio Ferdinand and Chelsea duo John Terry and Frank Lampard through injury is even more impressive.
Another victory against Montenegro at Wembley next month would put England in an excellent position to secure a place at the next European Championships in Poland and the Ukraine.
Last night he said: "Absolutely. Yes," when asked whether he would be leaving after Euro 2012, repeating the assertion to make sure everyone understood.
"We have to qualify first of course but after that I will be too old - I want to enjoy my life as a pensioner."
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September 8, 2010, 5:45 pm
![Image]( "Safety call after mid-air plunge")
Air investigators have called for a tightening of procedures after an easyJet Boeing 737 plunged 9,000ft on a post-maintenance check flight.
There was "confusion between the two pilots" as the aircraft pitched rapidly nose-down before control was recovered, a report by the Air Accidents Investigation Branch (AAIB) said.
The co-pilot had received "no formal training" to conduct such a flight, while various elements of the flight "demonstrated practices which would have been deemed unacceptable in normal operations", the report added.
When things started going wrong on the flight, there was "a lack of any kind of communication" between the pilots and the two observers for more than one-and-a-quarter minutes.
The report added that the co-pilot "only realised something was wrong" when the captain made an emergency PAN call - one stage down from a Mayday call.
The AAIB said one of the observers had been seated on a storage cupboard behind the captain's seat and was not restrained by a safety harness.
The incident happened in skies west of Norwich on the afternoon of January 12 2009.
The report questioned the overseeing of post-maintenance and customer demonstration flights, saying that airlines had "few options other than to devise their own demonstration schedule".
The AAIB made a number of recommendations to Boeing and to the European Aviation Safety Agency. The report said that a number of safety actions had already been taken since the incident.
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September 8, 2010, 5:45 pm
![Image]( "MPs reject shadow cabinet plan")
Labour MPs have rejected proposals to give their new leader the right to choose his or her own shadow cabinet.
The Parliamentary Labour Party voted down reforms which would have ended the party's practice in opposition of selecting the shadow cabinet by a ballot of MPs.
Wednesday's vote - which also rejected alternatives under which the leader could have appointed half or one-third of the top team - will create a headache for whoever is elected Gordon Brown's successor on September 25.
An elected shadow cabinet is almost certain to mean the new leader having to find front-rank jobs for MPs with whom they do not see eye-to-eye politically. And some of the new leader's closest political allies may be denied shadow cabinet posts if they are unable to persuade enough of their parliamentary colleagues to back them.
The system forced Tony Blair, in opposition, to have left-wingers like Michael Meacher, Frank Dobson and Gavin Strang round his top table. It may hand a place in the new shadow cabinet to Diane Abbott if she fails in her bid for the leadership. The leader will, however, have the power to decide which portfolio to hand to each member of the shadow cabinet.
The vote also increases from four to six the minimum number of women among the 19 elected shadow cabinet places. But MPs rejected alternative proposals for a 40% or 50% minimum. The PLP also approved a change to its rulebook which will see the chief whip elected separately to serve a full Parliament.
This change strengthens the chief whip's position, and there is speculation at Westminster that the current holder of the post, Nick Brown, is aiming to retain it for the coming five years to create an independent power base for his close confidant Mr Brown.
In a further change to the rulebook, MPs voted to make the shadow cabinet elections two-yearly, rather than annual as they were when the party was last in opposition 13 years ago.
Nominations open at the start of the Labour conference on September 26 for the 19 elected members who will make up the shadow cabinet alongside ex-officio members like the party leader, deputy leader and chief whip.
The party's 257 MPs will vote for their 19 preferred candidates - of whom at least six must be women and six men - over a number of days and the result will be announced on October 7. The rulebook changes must be formally endorsed at a meeting of the PLP next week.
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September 8, 2010, 5:45 pm
![Image]( "Interest rates set to be held again")
Signs of a weakening recovery are expected to see the Bank of England deliver its 18th consecutive decision to hold interest rates.
The Bank's policymakers will give their latest verdict at noon as recent economic indicators led to fears of a double dip recession.
Economists widely expect the nine-strong Monetary Policy Committee (MPC) to keep rates at 0.5% and to maintain its Quantitative Easing (QE) programme at £200 billion, with members torn between the pressures of stubbornly high inflation and faltering growth.
The MPC left rates unchanged at their historic lows since March 2009.
But a split was emerging among members, with above-target inflation leading Andrew Sentance to vote for a quarter point rate increase in each of the past three months.
Consumer Prices Index (CPI) inflation was 3.1% in July and warnings suggest cost pressures will worsen, with food prices expected to increase over the coming months.
Experts at Barclays Capital believe CPI edged up again in August, to 3.2%, which could leave the MPC facing a further dilemma.
However, the majority so far opted to prioritise the need to support the economy over efforts to rein in inflation and this is likely to remain the case for at least the rest of the year.
While the UK economy rose by a far-better-than-expected 1.2% in the second quarter, the signs point to slower growth since then.
Vicky Redwood at Capital Economics said the next move by the Bank was likely to be a boost to QE.
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September 8, 2010, 5:45 pm
![Image]( "Young 'drink to bond with peers'")
Young people get drunk to bond with their social group, an academic has said.
Teenagers regard their ability to drink excessive amounts of alcohol as a mark of "personal esteem" among their friends and for many it is key to being accepted as part of a social group.
Professor Christine Griffin, of the University of Bath, said she had carried out detailed research into the reasons for young people drinking, including extensive interviews.
She said Government campaigns targeting the availability of cheap drink, such as in off licenses or supermarkets, would not tackle young people's drinking habits alone.
"Extreme inebriation is often seen as a source of personal esteem and social affirmation amongst young people," Prof Griffin said.
"Our detailed research interviews reveal that tales of alcohol-related mishaps and escapades are key markers of young peoples' social identity."
In 2007 Prof Griffin led research for the Economic and Social Research Council (ESRC) that suggested a radical re-thinking of national alcohol policy was required to take into account the social character of alcohol consumption and the identity implications for young people.
Prof Griffin spoke out ahead of a presentation at the British Psychological Society's annual conference at the University of Winchester on Thursday.
She is reporting on the findings from the ESRC-funded study of intensive research with young drinkers in a major metropolitan area and in two towns in semi-rural locations.
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September 8, 2010, 11:53 pm
![Image]( "BAE Systems axes almost 1,000 jobs")
Unions have reacted with shock after manufacturing giant BAE Systems announced plans to axe almost 1,000 jobs, mainly from its military division.
Officials warned that the job losses in BAE's Military Air Solutions and Insyte (Systems Integrated System Technologies) divisions could be the "tip of the iceberg".
The Confederation of Shipbuilding and Engineering Unions warned that the outcome of the forthcoming strategic defence and security review and the cuts being demanded by the Treasury mean "worrying prospects" for the defence industry.
CSEU general secretary Hugh Scullion said: "The unions are shocked at the scale of these losses and will be demanding an explanation from BAE.
"Talks will begin locally in the first instance to attempt to mitigate the planned losses and if necessary national negotiations will follow. The unions will oppose any compulsory redundancies."
"With the forthcoming defence review these cuts may be the tip of the iceberg but knee-jerk reactions from employers could make things even worse.
"Cuts are being demanded before the shape of the defence industry has been decided. The defence industry will suffer more than necessary, if employers make poor judgment calls."
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September 9, 2010, 12:07 am
![Image]( "Clegg urges quick probe on hacking")
Deputy Prime Minister Nick Clegg has urged the police to probe new phone-hacking allegations swirling around No 10 communications chief Andy Coulson "as quickly and thoroughly as possible".
He spoke out as MPs prepared to debate whether the row should be referred to the Commons' powerful Standards and Privileges Committee.
Mr Clegg said people are entitled to "ask questions and make inquiries" while conflicting claims are made on whether Mr Coulson knew of phone-hacking when he was editor of the News of the World, something he has vehemently denied.
"If there are claims and counter-claims everyone is entitled to both ask questions and make inquiries," Mr Clegg told BBC Radio 4's Today programme.
"I believe that the most important thing of all is that the police now, since new allegations have been made, should look now as quickly and thoroughly as possible at these new allegations."
The emergency debate in the Commons comes amid fresh allegations by a former senior reporter on the Sunday tabloid that journalists routinely used private investigators to hack phones and access confidential records when Mr Coulson was editor.
Speaking to The Guardian, Paul McMullan, a former features executive and member of the NoW's investigations team, questioned Mr Coulson's assertion that he was not aware of hacking by staff.
The Guardian said Mr McMullan was one of six former reporters to back up claims that obtaining information by potentially illegal means was rife on the paper during Mr Coulson's tenure from 2003-07 - something the News of the World denies.
He and the other former reporters said that private investigators were used routinely to gather information, and that reporters had to go through desk editors to commission their services.
Mr McMullan told The Guardian he personally commissioned private investigators to commit several hundred acts which could be regarded as unlawful.
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September 9, 2010, 12:07 am
![Image]( "Aircraft carriers face cuts threat")
Doubts have been raised over whether the Government will press ahead with £5 billion plans for two new Royal Navy aircraft carriers amid drastic efforts to tackle the deficit.
The chief executive of BAE Systems disclosed that the firm has been asked to provide detailed figures for cancelling one or both of the 65,000-ton warships.
Sir Ian King reportedly told the Commons Defence Select Committee: "We have been asked recently to look at a number of options.
"The programme is for two vessels but the options range from one vessel to no vessels, but having an equivalent programme to maintain skills."
He also warned on Wednesday that scrapping the projects would cause permanent damage.
"We are at a critical point with some programmes where if you cut back those programmes you would not be able to reconstitute that capability in the UK," he added.
More than £1 billion is already believed to have been invested in HMS Queen Elizabeth and HMS Prince of Wales, which are due to launch in 2016 and 2018 respectively.
But the Ministry of Defence (MoD) is under huge pressure to cut its £36.9billion annual budget by up to 20%. The department also faces footing the bill for replacing the Trident nuclear deterrent - a cost which was previously met directly by the Treasury.
An MoD spokesman stressed that no final decisions have been made on the carriers.
"The Defence Secretary has made clear that tough decisions will need to be made but the complex process of a Strategic Defence and Security Review (SDSR) will be concluded in the autumn and speculation at this stage about its outcome is entirely unfounded," he added.
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September 9, 2010, 12:07 am
![Image]( "Immigration centres 'harm children'")
Children face psychological harm, violence and physical health problems in immigration detention centres, a medical charity has claimed.
Medical Justice, which sends doctors to the centres, said more than half of the children in the 141 cases it had looked at since April 2004 suffered psychological harm, with symptoms including bed wetting, loss of bowel control, heightened anxiety and food refusal.
Six of these expressed suicidal ideas and three girls tried to end their lives, the report said.
Deputy Prime Minister Nick Clegg described the detention of children as a "moral outrage" earlier this year and the Government plans to end child detention as soon as possible.
Jon Burnett, author of the charity's State Sponsored Cruelty report, said: "The dossier of evidence we are publishing brings to light the extent to which detaining children causes harm, suffering and anguish.
"Children have attempted to end their own lives, and have been left seriously physically and psychologically damaged."
The Medical Justice report said 74 of the children were psychologically harmed and 92 reported physical health problems which were either exacerbated or caused by their detention, including fever, vomiting and abdominal pains.
"Some children were left in severe pain," the charity said.
It also found 48 of the children witnessed violence, mostly during attempts to remove them from the UK, and 13 were physically harmed as a result of violence in detention.
And 38 children were separated from their families, sometimes after parents were put in isolation having voiced concerns about the way their children were being treated, the charity said.
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September 9, 2010, 12:07 am
![Image]( "Cameron tribute to 'amazing' father")
David Cameron has paid tribute to his "amazing" father Ian, saying he had "touched a lot of lives in lots of different ways".
The Prime Minister also thanked French President Nicolas Sarkozy for arranging a helicopter so he could reach the 77-year-old's bedside after he suffered a stroke while on holiday near Toulon.
A statement released by Downing Street on behalf of the premier and his family said: "Our dad was an amazing man - a real life enhancer. He never let the disability he was born with or the complications in later life get in the way of his incredible sense of fun and enjoyment.
"He touched a lot of lives in lots of different ways and was a brilliant husband and father.
"You could never be down for long when he was around. We will miss him terribly but have a bank of memories that can never be exhausted."
Mr Cameron cancelled his duties in the UK and took a commercial flight to France on Wednesday after learning that his father had been taken ill.
Thanks to the assistance of Mr Sarkozy, he arrived at the hospital along with brother Alex and sister Clare shortly before Mr Cameron senior died.
The family's statement said: "This was unexpected and sudden, but he was having a wonderful holiday and was with great friends.
"Above all he was with Mum, to whom he was devoted, and he was happy - and the end came quickly. We will treasure all the joy he brought us."
The PM added: "I am extremely grateful to President Sarkozy, who helped me get to the hospital while Dad was still with us, so I could say goodbye. We would like to thank Nicolas and everyone at the hospital who worked so hard to look after Dad."
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September 9, 2010, 3:29 am
![Image]( "Clegg warns over cuts backlash")
Nick Clegg has admitted that the coalition was likely to suffer a damaging backlash from the public over its efforts to tackle the deficit.
But the Deputy Prime Minister insisted the Government had to rise above day-to-day bad headlines in order to secure the long-term future of the country.
Mr Clegg issued an effective plea for understanding from the public with just six weeks to go until the results of an unprecedentedly tough Comprehensive Spending Review (CSR) are revealed. His comments came as research predicted the north of England would be hardest hit by cuts.
Mr Clegg conceded there was still a danger that sharp reductions in government expenditure would hamper the bounce-back from recession, telling BBC Radio 4's Today programme people should be braced for a "choppy and uneven" recovery.
However, he stressed cuts would begin next April and be spread over four years so there was no "Sword of Damocles that's going to come down straight away".
Delivering a speech at the Institute for Government in London, Mr Clegg said: "We know that decisions taken for the long-term are, in the short-run, difficult, painful or unpopular - or all three.
"The need to tackle our inheritance of debt is the most obvious case in point. I am under no illusions about the significant political risks both parties in the coalition are now taking by facing up to these difficult decisions in government.
"But I also think people will see, even through these tough times, that the coalition Government is acting in the interests of a better future."
Mr Clegg criticised the previous Labour government for succumbing to "short-termism" and chasing headlines, saying he expected much of the coalition's best work to go unheralded.
The DPM also said his and David Cameron's generation had "failed", running up huge debts despoiling the planet and allowing key institutions to wither.
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September 9, 2010, 3:29 am
![Image]( "Interest rate on hold for 18th time")
The Bank of England has maintained its emergency support for the economy by keeping interest rates at 0.5% for the 18th month in a row.
Policymakers also continued with the Bank's 200 billion quantitative easing (QE) programme amid uncertainty over the path of the UK's recovery.
While the UK economy rose by a far better-than-expected 1.2% in the second quarter, recent data has pointed to sharply slower growth since then.
Fears that UK exporters will struggle to fill the gap left by weaker Government and consumer spending were highlighted earlier in the day when figures showed a record deficit in the trade of goods during July.
Recent surveys from the manufacturing and services sectors have also suggested the rally may be fading as firms begin to see much slower demand.
The Bank's nine-strong Monetary Policy Committee (MPC) has left rates unchanged at their historic lows since March 2009. Rates have been on hold for the longest spell since the Bank was given responsibility for setting monetary policy in 1997.
The previous record during the MPC's time was when rates were on hold at 4% for 15 months, between November 2001 and February 2003.
MPC members are torn between the pressures of stubbornly high inflation and the threat of a double-dip recession. But a split is emerging among members, with above-target inflation leading Andrew Sentance to vote for a quarter-point rate increase in the previous three months.
Consumer Prices Index (CPI) inflation was 3.1% in July and warnings suggest cost pressures will worsen, with food prices expected to increase over the coming months. Experts at Barclays Capital believe CPI edged up again in August, to 3.2%, which could leave the MPC facing a further dilemma.
However, the majority so far opted to prioritise the need to support the economy over efforts to rein in inflation and experts believe this is likely to remain the case for at least the rest of the year.
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September 9, 2010, 3:29 am
![Image]( "Sleaze watchdog to probe hacking")
MPs have referred the News of the World phone-hacking row to the parliamentary sleaze watchdog for further investigation.
Authorisation for the Standards and Privileges Committee to launch a probe was nodded through the Commons without a formal vote.
The move followed an hour-long debate sparked by Labour frontbencher Chris Bryant, who insisted that MPs should not be "supine" amid allegations that their phones were hacked.
Mr Coulson has always denied any knowledge of the illegal eavesdropping at the News of the World, for which ex-royal editor Clive Goodman and private investigator Glenn Mulcaire were jailed in 2007.
The News International-owned paper insists the Goodman case was isolated and there was no widespread culture of wrongdoing among staff.
Mr Bryant told the Commons he was one of the MPs who had contacted the Metropolitan Police and been told that he was on a list of those allegedly targeted by Mulcaire.
But he said he suspected that was the "tip of the iceberg" and hacking extended not just to Labour MPs but also to Liberal Democrats and Tories.
The committee should not "shy away" from asking the Commons to enforce any decisions it made - including calling someone to the Bar of the House for a public dressing-down.
Commons Leader Sir George Young backed the call for the issue to be referred to the committee, chaired by Labour's Kevin Barron. "It's right that the matter is referred to the Committee on Standards and Privileges who have the powers to consider it," he told MPs.
In a statement, the News of the World said: "This matter, which largely relates to alleged behaviour five years ago, has become intensely partisan. As we have always made clear, we have a zero-tolerance approach to wrongdoing and will take swift and decisive action if we have proof."
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September 9, 2010, 3:32 am
![Image]( "Tax repayment written off for many")
Nearly one million people who did not pay enough income tax have had their repayment demands written off, it has emerged.
An estimated 900,000 workers will not receive a letter from HM Revenue & Customs (HMRC) demanding extra money after the Government raised the threshold under which it writes off any tax that is owed from 50 to 300.
It is thought that 2.3 million people have underpaid income tax during the past two tax years due to errors in their Pay As You Earn (PAYE) tax code, but only 1.4 million of these will be chased for the money.
Those who will have to make up the shortfall collectively owe around 2 billion, or an average of 1,428 each.
But Exchequer secretary David Gauke promised that the Government would make collecting the money people owed "as painless as possible".
People who owe less than 2,000 will be able to pay the money in monthly instalments taken from their salary during the 2011/2012 tax year.
Those who can show they are unable to afford to repay all of the money in one year will also be given the option of paying it back over three years.
Mr Gauke said: "In total, the Exchequer is owed approximately 2 billion. Being left with the worst deficit in peacetime history means we simply cannot afford to write off all of these underpayments.
"To ensure that the tax system is fair for everyone, where everyone pays their fair share, we are taking action to recoup these funds as painlessly as possible."
But those who owe more than 2,000 could be charged interest of 3% - six times higher than the Bank of England base rate - on the money they owe if they do not repay it within deadlines set by HMRC.
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September 9, 2010, 3:32 am
![Image]( "Lansley denies NHS Direct closure")
The Health Secretary has been accused of a climbdown over plans to scrap NHS Direct.
Andrew Lansley said he had "not announced plans to scrap NHS Direct", just to phase out its telephone number. This appears to contradict statements from the Department of Health last month, including to the BBC, which said the service would be scrapped.
The Department also confirmed many of the services offered by NHS Direct "may be subsumed" by the new 111 telephone service for non-urgent needs.
More than 16,000 people have signed a petition to save NHS Direct, which provides general health advice and information about out-of-hours GPs, walk-in centres, emergency dentists and 24-hour chemists.
Former health secretary Andy Burnham said Mr Lansley was "rowing back" from previous statements.
In a reply to Mr Burnham's inquiries about the future of NHS Direct, Mr Lansley wrote: "I have not announced plans to scrap NHS Direct. I have announced plans to phase out the NHS Direct number."
Later in the letter, he reiterates "we have not announced the closure of NHS Direct," adding: "I am aware that some people are claiming, incorrectly, that NHS Direct is to be shut down."
Mr Burnham said: "Mr Lansley's own department confirmed to the BBC that it was planning to scrap NHS Direct - he now says all he wants to change is the phone number.
"NHS Direct is a much-valued service that saves the NHS money," said Mr Burnham. "This is a welcome climbdown and great news for the staff who work for NHS Direct and all of us who rely on it. It's an incredible victory for the campaign to save NHS Direct."
The Royal College of Nursing said last month it would be "short-sighted" of ministers to axe expert nurses who had helped save the NHS more than 200 million by dispensing advice over the phone.
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September 9, 2010, 3:32 am
![Image]( "Police reveal plans to protect Pope")
The Pope's visit to Britain will be met with an unprecedented police operation across the country, police chiefs have said.
South Yorkshire Police Chief Constable Meredydd Hughes, who is co-ordinating the police operation, said no previous state visit had involved so many different sites around the country.
It was unusual for such dignitaries to "venture outside of London", he said. "It is different because this blend of civil event and religious event is something we have to look at."
Nobody wants "a giant security operation with a religious service bolted on the back", he said.
Pope Benedict is due to arrive next week on a four-day visit that will see him attend events in London, Scotland and the West Midlands.
While the policing cost of the visit is not known, Mr Hughes said it was estimated at being in the region of 1 million to 1.5 million. He added that while officers would look after the "safety and dignity" of the Pope, they would also protect those wishing to see him and any people protesting against his visit too.
"There is no intelligence to suggest any specific group will attack the Pope," he said, adding that the last few attacks on the pontiff were by Catholics.
Commander Bob Broadhurst, of the Metropolitan Police who will be responsible for protecting the Pope, warned people not to underestimate the "passion and the fervour" that the visit would bring.
"People get very passionate and very, very emotional," he said. "We may at times be protecting the protesters from the faithful if one or two people get hot under the collar."
The Pope's itinerary will include an evening prayer vigil in Hyde Park in London on Saturday September 18. The Protest the Pope campaign is expecting about 2,000 people to attend a march and rally in central London that day.
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Prime Minister David Cameron is in France following the sudden death of his father Ian on Wednesday.
Mr Cameron rushed to his 77-year-old father's bedside in hospital in the Mediterranean port of Toulon after he suffered a stroke while on holiday.
The Prime Minister was able to see his father before he died, thanks to the intervention of French President Nicolas Sarkozy, who arranged a helicopter from Nice airport to the hospital.
Mr Sarkozy also arranged for Mr Cameron to stay overnight in France, but Downing Street have not yet released details of how long the premier will stay before returning to the UK.
Condolences were offered to the Cameron family by politicians on all sides of the House of Commons, including Deputy Prime Minister Nick Clegg, Labour's acting leader Harriet Harman and former Prime Minister Gordon Brown.
Mr Cameron's mother Mary telephoned at around 6am on Wednesday to alert him to the situation, which arose as the couple were halfway through a two-week holiday.
After speaking to local doctors about his father's condition, the premier took a commercial flight from London's City Airport, accompanied by brother Alex and sister Clare.
Mr Cameron was said to be "relieved" to have been at the bedside, and "pleased" that his father died peacefully during a "happy family holiday".
Friends said Ian Cameron was "proud" to see his son become Prime Minister and had visited both 10 Downing Street and Chequers. However, the family's various holiday plans meant he had not met his latest granddaughter Florence.
Mr Cameron previously described his father as a "huge hero figure" and praised his optimism.
BP's investigation into the Gulf of Mexico spill sparked a backlash from its contractors and US politicians who accused the oil giant of attempting to shift some of the blame.
The internal inquiry, led by the company's head of safety and operations, Mark Bly, found BP was responsible in part for the tragedy, but also pointed the finger at rig owner Transocean and cement contractor Halliburton.
The report said a "complex and interlinked" series of events involving mechanical failures and human judgments led to the disaster.
The explosion on April 20 killed 11 workers and caused an estimated 4.9 million barrels of oil to gush into the Gulf - the largest offshore spill in history.
Commenting on yesterday's findings, outgoing chief executive Tony Hayward, who was forced to stand down in the wake of the disaster, said: "The investigation report provides critical new information on the causes of this terrible accident. It is evident that a series of complex events, rather than a single mistake or failure, led to the tragedy. Multiple parties, including BP, Halliburton and Transocean, were involved."
The four-month investigation found shoddy cement work at the bottom of the Deepwater Horizon well failed to hold gas and oil in its reservoir, which leaked into the casing.
BP and Transocean employees then incorrectly accepted negative pressure readings in the crucial minutes before the explosion - meaning they did not spot the gas leak, the inquiry found.
Further mechanical failures then allowed gas to be vented directly on to the rig rather than being diverted overboard - where it ignited. The rig's blow-out preventer, a protective valve, should have sealed the well but failed to operate.
Based on its key findings, the investigation team proposed a total of 25 recommendations designed to prevent such an incident. The recommendations are directed at strengthening blow-out preventers, well control, pressure-testing for wells, emergency systems, cement testing, rig audit and verification, and personnel competence.
Accepting full responsibility for the disaster could lead to BP being found guilty of gross negligence and fined up to 20 billion US dollars (£13 billion) so it was always likely to maintain its stance that other parties were involved.
Labour is set to step up pressure on the Prime Minister's communications director Andy Coulson, as the Commons debates allegations of phone-hacking at the News of the World.
The emergency debate came amid fresh allegations by a former senior reporter on the Sunday tabloid that journalists routinely used private investigators to hack phones and access confidential records when Mr Coulson was editor.
Speaking to The Guardian, Paul McMullan, a former features executive and member of the NoW's investigations team, questioned Mr Coulson's assertion that he was not aware of hacking by staff.
The Guardian said that Mr McMullan was one of six former reporters to back up claims that obtaining information by potentially illegal means was rife on the paper during Mr Coulson's tenure from 2003-07 - something the News of the World strenuously denies.
He and the other former reporters said that private investigators were used routinely to gather information, and that reporters had to go through desk editors in order to commission their services. Mr McMullan told The Guardian that he personally commissioned private investigators to commit several hundred acts which could be regarded as unlawful.
As deputy features editor on the News of the World, he was in daily contact with a private investigator who sold confidential information from phone companies and government databases. And he said that reporters did not believe at the time that it was illegal to hack into voicemail.
"I don't think at the time senior editors at the paper thought it was an issue," said Mr McMullan. "Everybody was doing it. Coulson would certainly be well aware that the practice was pretty widespread. He is conceivably telling the truth when he says he didn't specifically know every time a reporter would do it. I wouldn't have told him. It wasn't of significance for me to say I just rang up David Beckham and listened to his messages. In general terms, he would have known that reporters were doing it."
And he added: "How can Coulson possibly say he didn't know what was going on with (private investigators)? He was the brains behind the investigations department. How can he say he had no idea about how it works?"
Mr Coulson has always denied any knowledge of the illegal eavesdropping at the NoW, for which ex-royal editor Clive Goodman and a private detective were jailed in 2007. The News International-owned paper insists that the Goodman case was isolated and there was no widespread culture of wrong-doing among staff. But former reporter Sean Hoare reignited the row last week by publicly claiming his boss had been aware of the activities.
Metropolitan Police officers are planning to interview Mr Hoare about his claims, and Assistant Commissioner John Yates said he is likely to speak to Mr Coulson as he considers whether to reopen the police probe.
House prices were broadly unchanged during August as activity in the property market remained subdued, figures have shown.
The average cost of a home edged ahead by just 0.2% during the month to stand at £167,953, following a 0.7% rise in July, according to Halifax.
The recent gains have reversed most of the falls seen during the previous three months, leaving house prices at a similar level to the end of last year, but around 16% below their August 2007 peak.
The figures came as the National Association of Estate Agents (NAEA) said activity in the market had suffered its traditional seasonal dip during August.
The average number of potential buyers registering with estate agents fell sharply to 250 during August, down from 292 the previous month.
The average number of properties sold per branch also dipped slightly during the month to seven, down from eight in July.
But the group stressed that while activity had fallen compared with July, the figures compared well with August 2009, and suggested the market was broadly stable.
It said: "A drop-off in activity is always to be expected in August and there is nothing in this month's figures to suggest that anything other than this cyclical pattern is to blame for slightly lower figures.
"September will be the telling month to give an indication as to the current strength of the market."
Both the Halifax and the NAEA figures are more upbeat than ones reported by Nationwide last week, which showed that house prices had fallen by 0.9% during August, following a drop of 0.5% in July.
England manager Fabio Capello will quit as national coach after Euro 2012 to enjoy "life as a pensioner", the Italian has confirmed.
After an abysmal World Cup performance, many pundits believe Capello was fortunate to remain in his £6million-a-year post.
Heading into this week's qualifying double-header, there were still doubts over the 64-year-old's tenure, with many believing two poor results would force the Football Association to take decisive action.
Those concerns have now been removed after a couple of excellent performances against Bulgaria and Switzerland that have yielded six points and seven goals.
That the tally was achieved despite the absence of skipper Rio Ferdinand and Chelsea duo John Terry and Frank Lampard through injury is even more impressive.
Another victory against Montenegro at Wembley next month would put England in an excellent position to secure a place at the next European Championships in Poland and the Ukraine.
Last night he said: "Absolutely. Yes," when asked whether he would be leaving after Euro 2012, repeating the assertion to make sure everyone understood.
"We have to qualify first of course but after that I will be too old - I want to enjoy my life as a pensioner."
Air investigators have called for a tightening of procedures after an easyJet Boeing 737 plunged 9,000ft on a post-maintenance check flight.
There was "confusion between the two pilots" as the aircraft pitched rapidly nose-down before control was recovered, a report by the Air Accidents Investigation Branch (AAIB) said.
The co-pilot had received "no formal training" to conduct such a flight, while various elements of the flight "demonstrated practices which would have been deemed unacceptable in normal operations", the report added.
When things started going wrong on the flight, there was "a lack of any kind of communication" between the pilots and the two observers for more than one-and-a-quarter minutes.
The report added that the co-pilot "only realised something was wrong" when the captain made an emergency PAN call - one stage down from a Mayday call.
The AAIB said one of the observers had been seated on a storage cupboard behind the captain's seat and was not restrained by a safety harness.
The incident happened in skies west of Norwich on the afternoon of January 12 2009.
The report questioned the overseeing of post-maintenance and customer demonstration flights, saying that airlines had "few options other than to devise their own demonstration schedule".
The AAIB made a number of recommendations to Boeing and to the European Aviation Safety Agency. The report said that a number of safety actions had already been taken since the incident.
Labour MPs have rejected proposals to give their new leader the right to choose his or her own shadow cabinet.
The Parliamentary Labour Party voted down reforms which would have ended the party's practice in opposition of selecting the shadow cabinet by a ballot of MPs.
Wednesday's vote - which also rejected alternatives under which the leader could have appointed half or one-third of the top team - will create a headache for whoever is elected Gordon Brown's successor on September 25.
An elected shadow cabinet is almost certain to mean the new leader having to find front-rank jobs for MPs with whom they do not see eye-to-eye politically. And some of the new leader's closest political allies may be denied shadow cabinet posts if they are unable to persuade enough of their parliamentary colleagues to back them.
The system forced Tony Blair, in opposition, to have left-wingers like Michael Meacher, Frank Dobson and Gavin Strang round his top table. It may hand a place in the new shadow cabinet to Diane Abbott if she fails in her bid for the leadership. The leader will, however, have the power to decide which portfolio to hand to each member of the shadow cabinet.
The vote also increases from four to six the minimum number of women among the 19 elected shadow cabinet places. But MPs rejected alternative proposals for a 40% or 50% minimum. The PLP also approved a change to its rulebook which will see the chief whip elected separately to serve a full Parliament.
This change strengthens the chief whip's position, and there is speculation at Westminster that the current holder of the post, Nick Brown, is aiming to retain it for the coming five years to create an independent power base for his close confidant Mr Brown.
In a further change to the rulebook, MPs voted to make the shadow cabinet elections two-yearly, rather than annual as they were when the party was last in opposition 13 years ago.
Nominations open at the start of the Labour conference on September 26 for the 19 elected members who will make up the shadow cabinet alongside ex-officio members like the party leader, deputy leader and chief whip.
The party's 257 MPs will vote for their 19 preferred candidates - of whom at least six must be women and six men - over a number of days and the result will be announced on October 7. The rulebook changes must be formally endorsed at a meeting of the PLP next week.
Signs of a weakening recovery are expected to see the Bank of England deliver its 18th consecutive decision to hold interest rates.
The Bank's policymakers will give their latest verdict at noon as recent economic indicators led to fears of a double dip recession.
Economists widely expect the nine-strong Monetary Policy Committee (MPC) to keep rates at 0.5% and to maintain its Quantitative Easing (QE) programme at £200 billion, with members torn between the pressures of stubbornly high inflation and faltering growth.
The MPC left rates unchanged at their historic lows since March 2009.
But a split was emerging among members, with above-target inflation leading Andrew Sentance to vote for a quarter point rate increase in each of the past three months.
Consumer Prices Index (CPI) inflation was 3.1% in July and warnings suggest cost pressures will worsen, with food prices expected to increase over the coming months.
Experts at Barclays Capital believe CPI edged up again in August, to 3.2%, which could leave the MPC facing a further dilemma.
However, the majority so far opted to prioritise the need to support the economy over efforts to rein in inflation and this is likely to remain the case for at least the rest of the year.
While the UK economy rose by a far-better-than-expected 1.2% in the second quarter, the signs point to slower growth since then.
Vicky Redwood at Capital Economics said the next move by the Bank was likely to be a boost to QE.
Young people get drunk to bond with their social group, an academic has said.
Teenagers regard their ability to drink excessive amounts of alcohol as a mark of "personal esteem" among their friends and for many it is key to being accepted as part of a social group.
Professor Christine Griffin, of the University of Bath, said she had carried out detailed research into the reasons for young people drinking, including extensive interviews.
She said Government campaigns targeting the availability of cheap drink, such as in off licenses or supermarkets, would not tackle young people's drinking habits alone.
"Extreme inebriation is often seen as a source of personal esteem and social affirmation amongst young people," Prof Griffin said.
"Our detailed research interviews reveal that tales of alcohol-related mishaps and escapades are key markers of young peoples' social identity."
In 2007 Prof Griffin led research for the Economic and Social Research Council (ESRC) that suggested a radical re-thinking of national alcohol policy was required to take into account the social character of alcohol consumption and the identity implications for young people.
Prof Griffin spoke out ahead of a presentation at the British Psychological Society's annual conference at the University of Winchester on Thursday.
She is reporting on the findings from the ESRC-funded study of intensive research with young drinkers in a major metropolitan area and in two towns in semi-rural locations.
Unions have reacted with shock after manufacturing giant BAE Systems announced plans to axe almost 1,000 jobs, mainly from its military division.
Officials warned that the job losses in BAE's Military Air Solutions and Insyte (Systems Integrated System Technologies) divisions could be the "tip of the iceberg".
The Confederation of Shipbuilding and Engineering Unions warned that the outcome of the forthcoming strategic defence and security review and the cuts being demanded by the Treasury mean "worrying prospects" for the defence industry.
CSEU general secretary Hugh Scullion said: "The unions are shocked at the scale of these losses and will be demanding an explanation from BAE.
"Talks will begin locally in the first instance to attempt to mitigate the planned losses and if necessary national negotiations will follow. The unions will oppose any compulsory redundancies."
"With the forthcoming defence review these cuts may be the tip of the iceberg but knee-jerk reactions from employers could make things even worse.
"Cuts are being demanded before the shape of the defence industry has been decided. The defence industry will suffer more than necessary, if employers make poor judgment calls."
Deputy Prime Minister Nick Clegg has urged the police to probe new phone-hacking allegations swirling around No 10 communications chief Andy Coulson "as quickly and thoroughly as possible".
He spoke out as MPs prepared to debate whether the row should be referred to the Commons' powerful Standards and Privileges Committee.
Mr Clegg said people are entitled to "ask questions and make inquiries" while conflicting claims are made on whether Mr Coulson knew of phone-hacking when he was editor of the News of the World, something he has vehemently denied.
"If there are claims and counter-claims everyone is entitled to both ask questions and make inquiries," Mr Clegg told BBC Radio 4's Today programme.
"I believe that the most important thing of all is that the police now, since new allegations have been made, should look now as quickly and thoroughly as possible at these new allegations."
The emergency debate in the Commons comes amid fresh allegations by a former senior reporter on the Sunday tabloid that journalists routinely used private investigators to hack phones and access confidential records when Mr Coulson was editor.
Speaking to The Guardian, Paul McMullan, a former features executive and member of the NoW's investigations team, questioned Mr Coulson's assertion that he was not aware of hacking by staff.
The Guardian said Mr McMullan was one of six former reporters to back up claims that obtaining information by potentially illegal means was rife on the paper during Mr Coulson's tenure from 2003-07 - something the News of the World denies.
He and the other former reporters said that private investigators were used routinely to gather information, and that reporters had to go through desk editors to commission their services.
Mr McMullan told The Guardian he personally commissioned private investigators to commit several hundred acts which could be regarded as unlawful.
Doubts have been raised over whether the Government will press ahead with £5 billion plans for two new Royal Navy aircraft carriers amid drastic efforts to tackle the deficit.
The chief executive of BAE Systems disclosed that the firm has been asked to provide detailed figures for cancelling one or both of the 65,000-ton warships.
Sir Ian King reportedly told the Commons Defence Select Committee: "We have been asked recently to look at a number of options.
"The programme is for two vessels but the options range from one vessel to no vessels, but having an equivalent programme to maintain skills."
He also warned on Wednesday that scrapping the projects would cause permanent damage.
"We are at a critical point with some programmes where if you cut back those programmes you would not be able to reconstitute that capability in the UK," he added.
More than £1 billion is already believed to have been invested in HMS Queen Elizabeth and HMS Prince of Wales, which are due to launch in 2016 and 2018 respectively.
But the Ministry of Defence (MoD) is under huge pressure to cut its £36.9billion annual budget by up to 20%. The department also faces footing the bill for replacing the Trident nuclear deterrent - a cost which was previously met directly by the Treasury.
An MoD spokesman stressed that no final decisions have been made on the carriers.
"The Defence Secretary has made clear that tough decisions will need to be made but the complex process of a Strategic Defence and Security Review (SDSR) will be concluded in the autumn and speculation at this stage about its outcome is entirely unfounded," he added.
Children face psychological harm, violence and physical health problems in immigration detention centres, a medical charity has claimed.
Medical Justice, which sends doctors to the centres, said more than half of the children in the 141 cases it had looked at since April 2004 suffered psychological harm, with symptoms including bed wetting, loss of bowel control, heightened anxiety and food refusal.
Six of these expressed suicidal ideas and three girls tried to end their lives, the report said.
Deputy Prime Minister Nick Clegg described the detention of children as a "moral outrage" earlier this year and the Government plans to end child detention as soon as possible.
Jon Burnett, author of the charity's State Sponsored Cruelty report, said: "The dossier of evidence we are publishing brings to light the extent to which detaining children causes harm, suffering and anguish.
"Children have attempted to end their own lives, and have been left seriously physically and psychologically damaged."
The Medical Justice report said 74 of the children were psychologically harmed and 92 reported physical health problems which were either exacerbated or caused by their detention, including fever, vomiting and abdominal pains.
"Some children were left in severe pain," the charity said.
It also found 48 of the children witnessed violence, mostly during attempts to remove them from the UK, and 13 were physically harmed as a result of violence in detention.
And 38 children were separated from their families, sometimes after parents were put in isolation having voiced concerns about the way their children were being treated, the charity said.
David Cameron has paid tribute to his "amazing" father Ian, saying he had "touched a lot of lives in lots of different ways".
The Prime Minister also thanked French President Nicolas Sarkozy for arranging a helicopter so he could reach the 77-year-old's bedside after he suffered a stroke while on holiday near Toulon.
A statement released by Downing Street on behalf of the premier and his family said: "Our dad was an amazing man - a real life enhancer. He never let the disability he was born with or the complications in later life get in the way of his incredible sense of fun and enjoyment.
"He touched a lot of lives in lots of different ways and was a brilliant husband and father.
"You could never be down for long when he was around. We will miss him terribly but have a bank of memories that can never be exhausted."
Mr Cameron cancelled his duties in the UK and took a commercial flight to France on Wednesday after learning that his father had been taken ill.
Thanks to the assistance of Mr Sarkozy, he arrived at the hospital along with brother Alex and sister Clare shortly before Mr Cameron senior died.
The family's statement said: "This was unexpected and sudden, but he was having a wonderful holiday and was with great friends.
"Above all he was with Mum, to whom he was devoted, and he was happy - and the end came quickly. We will treasure all the joy he brought us."
The PM added: "I am extremely grateful to President Sarkozy, who helped me get to the hospital while Dad was still with us, so I could say goodbye. We would like to thank Nicolas and everyone at the hospital who worked so hard to look after Dad."
Nick Clegg has admitted that the coalition was likely to suffer a damaging backlash from the public over its efforts to tackle the deficit.
But the Deputy Prime Minister insisted the Government had to rise above day-to-day bad headlines in order to secure the long-term future of the country.
Mr Clegg issued an effective plea for understanding from the public with just six weeks to go until the results of an unprecedentedly tough Comprehensive Spending Review (CSR) are revealed. His comments came as research predicted the north of England would be hardest hit by cuts.
Mr Clegg conceded there was still a danger that sharp reductions in government expenditure would hamper the bounce-back from recession, telling BBC Radio 4's Today programme people should be braced for a "choppy and uneven" recovery.
However, he stressed cuts would begin next April and be spread over four years so there was no "Sword of Damocles that's going to come down straight away".
Delivering a speech at the Institute for Government in London, Mr Clegg said: "We know that decisions taken for the long-term are, in the short-run, difficult, painful or unpopular - or all three.
"The need to tackle our inheritance of debt is the most obvious case in point. I am under no illusions about the significant political risks both parties in the coalition are now taking by facing up to these difficult decisions in government.
"But I also think people will see, even through these tough times, that the coalition Government is acting in the interests of a better future."
Mr Clegg criticised the previous Labour government for succumbing to "short-termism" and chasing headlines, saying he expected much of the coalition's best work to go unheralded.
The DPM also said his and David Cameron's generation had "failed", running up huge debts despoiling the planet and allowing key institutions to wither.
The Bank of England has maintained its emergency support for the economy by keeping interest rates at 0.5% for the 18th month in a row.
Policymakers also continued with the Bank's 200 billion quantitative easing (QE) programme amid uncertainty over the path of the UK's recovery.
While the UK economy rose by a far better-than-expected 1.2% in the second quarter, recent data has pointed to sharply slower growth since then.
Fears that UK exporters will struggle to fill the gap left by weaker Government and consumer spending were highlighted earlier in the day when figures showed a record deficit in the trade of goods during July.
Recent surveys from the manufacturing and services sectors have also suggested the rally may be fading as firms begin to see much slower demand.
The Bank's nine-strong Monetary Policy Committee (MPC) has left rates unchanged at their historic lows since March 2009. Rates have been on hold for the longest spell since the Bank was given responsibility for setting monetary policy in 1997.
The previous record during the MPC's time was when rates were on hold at 4% for 15 months, between November 2001 and February 2003.
MPC members are torn between the pressures of stubbornly high inflation and the threat of a double-dip recession. But a split is emerging among members, with above-target inflation leading Andrew Sentance to vote for a quarter-point rate increase in the previous three months.
Consumer Prices Index (CPI) inflation was 3.1% in July and warnings suggest cost pressures will worsen, with food prices expected to increase over the coming months. Experts at Barclays Capital believe CPI edged up again in August, to 3.2%, which could leave the MPC facing a further dilemma.
However, the majority so far opted to prioritise the need to support the economy over efforts to rein in inflation and experts believe this is likely to remain the case for at least the rest of the year.
MPs have referred the News of the World phone-hacking row to the parliamentary sleaze watchdog for further investigation.
Authorisation for the Standards and Privileges Committee to launch a probe was nodded through the Commons without a formal vote.
The move followed an hour-long debate sparked by Labour frontbencher Chris Bryant, who insisted that MPs should not be "supine" amid allegations that their phones were hacked.
Mr Coulson has always denied any knowledge of the illegal eavesdropping at the News of the World, for which ex-royal editor Clive Goodman and private investigator Glenn Mulcaire were jailed in 2007.
The News International-owned paper insists the Goodman case was isolated and there was no widespread culture of wrongdoing among staff.
Mr Bryant told the Commons he was one of the MPs who had contacted the Metropolitan Police and been told that he was on a list of those allegedly targeted by Mulcaire.
But he said he suspected that was the "tip of the iceberg" and hacking extended not just to Labour MPs but also to Liberal Democrats and Tories.
The committee should not "shy away" from asking the Commons to enforce any decisions it made - including calling someone to the Bar of the House for a public dressing-down.
Commons Leader Sir George Young backed the call for the issue to be referred to the committee, chaired by Labour's Kevin Barron. "It's right that the matter is referred to the Committee on Standards and Privileges who have the powers to consider it," he told MPs.
In a statement, the News of the World said: "This matter, which largely relates to alleged behaviour five years ago, has become intensely partisan. As we have always made clear, we have a zero-tolerance approach to wrongdoing and will take swift and decisive action if we have proof."
Nearly one million people who did not pay enough income tax have had their repayment demands written off, it has emerged.
An estimated 900,000 workers will not receive a letter from HM Revenue & Customs (HMRC) demanding extra money after the Government raised the threshold under which it writes off any tax that is owed from 50 to 300.
It is thought that 2.3 million people have underpaid income tax during the past two tax years due to errors in their Pay As You Earn (PAYE) tax code, but only 1.4 million of these will be chased for the money.
Those who will have to make up the shortfall collectively owe around 2 billion, or an average of 1,428 each.
But Exchequer secretary David Gauke promised that the Government would make collecting the money people owed "as painless as possible".
People who owe less than 2,000 will be able to pay the money in monthly instalments taken from their salary during the 2011/2012 tax year.
Those who can show they are unable to afford to repay all of the money in one year will also be given the option of paying it back over three years.
Mr Gauke said: "In total, the Exchequer is owed approximately 2 billion. Being left with the worst deficit in peacetime history means we simply cannot afford to write off all of these underpayments.
"To ensure that the tax system is fair for everyone, where everyone pays their fair share, we are taking action to recoup these funds as painlessly as possible."
But those who owe more than 2,000 could be charged interest of 3% - six times higher than the Bank of England base rate - on the money they owe if they do not repay it within deadlines set by HMRC.
The Health Secretary has been accused of a climbdown over plans to scrap NHS Direct.
Andrew Lansley said he had "not announced plans to scrap NHS Direct", just to phase out its telephone number. This appears to contradict statements from the Department of Health last month, including to the BBC, which said the service would be scrapped.
The Department also confirmed many of the services offered by NHS Direct "may be subsumed" by the new 111 telephone service for non-urgent needs.
More than 16,000 people have signed a petition to save NHS Direct, which provides general health advice and information about out-of-hours GPs, walk-in centres, emergency dentists and 24-hour chemists.
Former health secretary Andy Burnham said Mr Lansley was "rowing back" from previous statements.
In a reply to Mr Burnham's inquiries about the future of NHS Direct, Mr Lansley wrote: "I have not announced plans to scrap NHS Direct. I have announced plans to phase out the NHS Direct number."
Later in the letter, he reiterates "we have not announced the closure of NHS Direct," adding: "I am aware that some people are claiming, incorrectly, that NHS Direct is to be shut down."
Mr Burnham said: "Mr Lansley's own department confirmed to the BBC that it was planning to scrap NHS Direct - he now says all he wants to change is the phone number.
"NHS Direct is a much-valued service that saves the NHS money," said Mr Burnham. "This is a welcome climbdown and great news for the staff who work for NHS Direct and all of us who rely on it. It's an incredible victory for the campaign to save NHS Direct."
The Royal College of Nursing said last month it would be "short-sighted" of ministers to axe expert nurses who had helped save the NHS more than 200 million by dispensing advice over the phone.
The Pope's visit to Britain will be met with an unprecedented police operation across the country, police chiefs have said.
South Yorkshire Police Chief Constable Meredydd Hughes, who is co-ordinating the police operation, said no previous state visit had involved so many different sites around the country.
It was unusual for such dignitaries to "venture outside of London", he said. "It is different because this blend of civil event and religious event is something we have to look at."
Nobody wants "a giant security operation with a religious service bolted on the back", he said.
Pope Benedict is due to arrive next week on a four-day visit that will see him attend events in London, Scotland and the West Midlands.
While the policing cost of the visit is not known, Mr Hughes said it was estimated at being in the region of 1 million to 1.5 million. He added that while officers would look after the "safety and dignity" of the Pope, they would also protect those wishing to see him and any people protesting against his visit too.
"There is no intelligence to suggest any specific group will attack the Pope," he said, adding that the last few attacks on the pontiff were by Catholics.
Commander Bob Broadhurst, of the Metropolitan Police who will be responsible for protecting the Pope, warned people not to underestimate the "passion and the fervour" that the visit would bring.
"People get very passionate and very, very emotional," he said. "We may at times be protecting the protesters from the faithful if one or two people get hot under the collar."
The Pope's itinerary will include an evening prayer vigil in Hyde Park in London on Saturday September 18. The Protest the Pope campaign is expecting about 2,000 people to attend a march and rally in central London that day.
