October 17, 2010, 9:58 pm
![Image]( "May: Terrorism threat very serious")
Home Secretary Theresa May has repeated Government warnings of a "very serious" threat from terrorism as the new National Security Strategy was set to be unveiled.
Mrs May urged the public to remain vigilant in the face of a "highly likely" attack by international terrorists.
"We are absolutely clear that we do have a very serious threat from international terrorism - that is why the threat level here in the UK is at severe," she told ITV1's Daybreak.
"That means that an attack is highly likely, so everybody does need to be vigilant. What we see today is more diverse sources of threat, but we are absolutely clear that we do have that very serious threat from international terrorism."
Mrs May was speaking as Britain's new National Security Strategy was expected to name terrorism and cyber-attacks on vital computer networks as the biggest threats to the UK in the immediate future.
The strategy, to be announced by David Cameron in a written statement to MPs, has been drawn up by the Prime Minister's new National Security Council as part of an assessment of Britain's defence needs which he ordered in May. It will set the scene for Tuesday's Strategic Defence and Security Review (SDSR), which will sketch out the shape of Britain's future armed forces and explain what equipment and manpower will have to be sacrificed to achieve the 7%-8% savings demanded by the Treasury.
A leaked draft of the national security document suggested that military conflict with another state will come only fourth in a list of potential threats to the UK, behind terror outrages by groups such as al Qaida, cyber-attacks and natural disasters.
The launch comes just days after the head of the Government's GCHQ eavesdropping centre, Iain Lobban, warned of the very real danger of cyber-terrorism directed at the UK's critical computer infrastructure.
Shadow foreign secretary Yvette Cooper said: "The Government seem to be producing a reheated security strategy to provide cover for a rushed defence spending review, rather than producing a renewed and careful consideration of the UK's defence and security priorities. The Government should show renewed vigour in the process towards a political settlement in Afghanistan, led by the Afghans, while supporting our 10,000 troops with the resources they need in creating the conditions on the ground for a more stable country.
"The strategy must also address new and emerging threats, including the prevalence of cyber-attacks; ambitions from terrorist groups to obtain chemical or biological weapons; and working to prevent conflict in failing states. The Government should also show more diplomatic activism in the Middle East, and be at the forefront of European Union support for the continuation of direct talks."
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October 21, 2010, 10:50 am
![Image]( "Church probing claims over priests")
An investigation is to be carried out into allegations that two priests were allowed to continue working despite being accused of serious child abuse offences, the Church of England has confirmed.
Collin Pritchard was the vicar of St Barnabas, in Bexhill-on-Sea, East Sussex, until 2007, despite having been first reported to police for sex offences 10 years earlier. He was only suspended when a new safeguarding officer at the diocese decided he was a risk to children.
He was charged with sexually abusing the two young boys the same year and was then jailed for five years in July 2008 when he pleaded guilty to four counts of indecent assault and three counts of committing an act of gross indecency on the two children.
Pritchard was in charge of a church in Wellingborough, Northamptonshire, in the early 1980s when he committed the offences, Northampton Crown Court was told.
Jurors heard one of the boys was also abused by Roy Cotton, who worked as a parish priest in Brede near Rye, East Sussex, but prosecutors decided there was not enough evidence to charge him before he died in September 2006.
The allegations emerged after an investigation by BBC South East following the acquittal of a former alter boy accused of murdering an elderly vicar.
Christopher Hunnisett was originally found guilty of murdering 81-year-old Ronald Glazebrook following a trial in 2002, but a jury cleared him at last month's re-trial at Lewes Crown Court after hearing evidence that the vicar had sexually abused him.
Cotton had also been convicted of a sexual offence against a boy in 1954, the BBC reported.
The Archdeacon of Lewes and Hastings, the Ven Philip Jones confirmed the Church had launched an investigation.
He said in a statement: "The Diocese of Chichester gives the protection of children the highest priority and takes seriously all concerns raised."
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October 21, 2010, 1:23 pm
![Image]( "Peers suspended over expenses claim")
Three peers have been given lengthy suspensions from the House of Lords after wrongly claiming thousands of pounds in expenses.
Labour peers Baroness Uddin and Lord Paul, and crossbencher Lord Bhatia, were suspended after the upper chamber approved the damning judgments of its Privileges and Conduct Committee.
Lady Uddin was suspended until the end of the parliamentary session in 2012 and told to repay £125,349.10.
Lord Bhatia was sidelined for eight months and has already repaid more than £27,000.
Lord Paul was suspended for four months and has already returned £41,982.
The sanctions are the toughest imposed on misbehaving members for more than 300 years.
Lady Uddin and crossbencher Lord Bhatia were found to have acted "not in good faith" by incorrectly declaring their main homes in order to claim generous overnight allowances.
An initial investigation decided that Lord Paul had also acted "not in good faith" in his home designations.
However, the committee rejected this finding on appeal, accepting that although "utterly unreasonable" and "negligent", he had not been "dishonest" and had already returned £41,982 last year.
Prominent Labour peer Lord Alli raised the issue of racial bias after the decision was announced. He told peers: "Let me say from the outset I don't wish in any way to accuse any member of the committee or sub-committee of racism. That would be quite improper and wrong. But it cannot have escaped your attention that the only three members of the House who were referred to the Committee for Privileges and Conduct and subsequently investigated under these procedures were all Asian."
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October 21, 2010, 1:24 pm
![Image]( "Banks warned over bonus payments")
The head of Britain's biggest business group has urged banks to be "very very sensitive" in the coming months over the payment of bonuses, as the Government's public spending cuts start to hit the jobs and pay of workers.
Richard Lambert, director general of the CBI, has warned of "political consequences" if banks pressed ahead with huge bonus payments in the current climate of austerity.
Business Secretary Vince Cable has already hinted at legislation to curb excessive City bonuses, a move Mr Lambert said he would oppose because he was always against "windfall" taxes.
But he added: "Banks are going to have to be very very sensitive in the coming months. If they just press ahead with substantial bonuses at a time when public sector workers are being laid off, there will be political consequences. They will be soaked in some way."
Mr Lambert said he did not believe the public would support an outbreak of industrial action in protest at the spending cuts, but added he was "waiting to see" how unions reacted.
He said he had been impressed at recent speeches by TUC leader Brendan Barber, who had been trying to defend union members against cuts without calling for "blood and thunder" on the streets. He said: "There would be no great public support for a general outbreak of unrest. We are not France - but we wait and see."
Mr Lambert, speaking ahead of the CBI's national conference in London on Monday, said he had been surprised at the way the coalition Government had performed since the election, culminating in the "pretty amazing achievement" of the comprehensive spending review on Wednesday.
"I have been surprised by their cohesion, despite very different political backgrounds, and by the radical nature of their policy changes."
He said the coalition had been good for the country, and for business, because the alternative would have been a minority Conservative administration which could have been "blown away" any second.
Mr Lambert, who stands down as director general in the New Year after almost five years in the post, said the spending review did not change the "big picture" of the UK economy, continuing: "We still think it is unlikely there will be a double dip recession, and we are still hopeful for a measure of growth next year."
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October 21, 2010, 1:27 pm
![Image]( "Response plans during fire strike")
London Fire Brigade has pledged to respond to 999 calls throughout an eight hour walk-out by firefighters in the capital in a row over new contracts.
The Brigade said it had contingency plans in place to provide fire cover, with a fire engine available to be sent to a wide range of emergencies including fires in people's homes, vehicle fires, road accidents and collapsed buildings.
But officials admitted a fire engine may not be sent to less urgent and non life threatening incidents, including rubbish fires, fires on open ground, large animal rescues, flooding, people stuck in lifts and gas leaks.
Members of the Fire Brigades Union (FBU) will walk out from 10am on Saturday and again for eight hours on November 1 in protest at new contracts containing changes to shift times.
London Fire Commissioner Ron Dobson said: "As firefighters our job is to protect the public from fire day and night so this strike over proposed shift times is very disappointing. We have plans that mean every area of London has fire cover and we will be doing all that we can to prevent this FBU action putting Londoners at risk.
"The dispute centres on how we are trying to do more to make Londoners and firefighters safer, it can only be resolved through talks, not an FBU strike."
The Brigade said its contingency arrangements allowed it to place up to 27 fire appliances at strategic locations across London and was a "significant improvement" on the military green goddesses used during the last strike.
The Fire Authority entered into a five year, £9 million contract last year with private firm AssetCo to provide London with a contingency level of fire and rescue services if firefighters were not available, for example, in the event of severe pandemic illness, industrial action, natural disaster or catastrophic incident.
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October 21, 2010, 1:28 pm
![Image]( "Recorded crime level falls by 8%")
Crime recorded by the police fell by 8% in the last year, official figures revealed.
Reported incidents of criminal damage were down 17%, offences against vehicles were down 16% and domestic burglary fell by 8% compared with last year, the latest Home Office figures for the year to June 2010 showed.
But the number of recorded sexual offences rose by 8%.
Home Secretary Theresa May said: "Victims of crime know that while any reduction in crime is welcomed, statistics only present a partial picture.
"There are still too many offences which ruin lives, whether they are recorded or not, and that means more needs to be done to bring down crime.
She went on: "It is unacceptable that each day on average more than 26,000 people fall victim to crime and the police report stubbornly high levels of violence - on average 1,000 people are injured each day.
"We want to ensure that police and their partner agencies continue to work together to focus on fighting crime, which is why we are slashing bureaucracy to ensure police officers are visible and available on the streets and making police forces more accountable to their local communities."
Chief Constable Keith Bristow, head of crime for the Association of Chief Police Officers (Acpo), said officers were still working "to improve all areas of sex offence investigation".
"We remain determined to tackle people who commit sexual offences and we are making real progress in this critical area, particularly around giving victims confidence to come forward and report these crimes and we need them do so," he said.
"These overall results are a strong indication of the dedication of our workforce and others to keep people safe. We remain resolute in our mission to provide a visible and responsive police service that tackles the challenges which matter most to the people."
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October 21, 2010, 1:28 pm
![Image]( "Rape victim support centres 'vital'")
The Government must roll out support centres for rape victims across the country or it will have failed in its duty to those who have been grievously harmed, a crossbench peer has said.
Baroness Stern, who carried out a landmark review of how rape complaints were handled earlier this year, said the Government must commit to supporting rape victims despite the financial pressures outlined in its spending review.
Her comments, delivered in the third annual Crown Prosecution Service lecture, come on the day the latest Home Office figures showed the number of sexual offences recorded by police in the year to June 2010 rose by 8% to 55,217 from 51,139 in the previous 12 months.
Baroness Stern said the spending review made it "clear that there will be less money and some things will not be done".
But she warned: "In the face of these financial constraints we have to say serious violent crime must be the priority and rape is one of the most serious violent crimes.
"I am sure that as the cuts come there will be a commitment to no reductions in investigating and prosecuting serious crime. That is the duty of any Government and it will continue.
"However if there is to be justice we have to ensure that there is a similar commitment to supporting the victims of that serious crime.
"If the sexual assault referral centres are not rolled out across the country, if the grants for independent sexual violence advisers are not renewed, if rape crisis centres are closing up and down the country, the Government will have failed to meet its obligations to a group of people who have been grievously harmed.
"I hope that message will be heard by all those in Government making these decisions."
In her review, which was published in March, Baroness Stern said hundreds of independent workers would help those whose lives were torn apart by sexual violence make sense of the police inquiry and the prosecution of those responsible. Independent sexual violence advisers, a post being piloted in some areas, provide a key link between the victim and police, prosecutors and charity groups, she said.
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October 21, 2010, 1:35 pm
![Image]( "Cuts 'will hit poorest harder'")
Coalition claims that the spending review was fair have been dealt a heavy blow as a leading economics think-tank insisted the cuts would hit the poorest harder than most of the better off.
The respected Institute for Fiscal Studies (IFS) warned that Chancellor George Osborne's £81 billion cuts package was "regressive" except for its impact on the richest 2%. Families with children would be the biggest losers, it said.
The intervention came as David Cameron and Nick Clegg met voters together in a bid to sell the deficit reduction measures to the public.
Without naming the IFS in particular, Deputy Prime Minister Mr Clegg accused the Government's critics of "frightening people" with claims that they were "doing unfair things when we are not".
But he also appeared to acknowledge that the Government's claims that the rich would pay the most were based on tax changes introduced by the former Labour government.
In its analysis of the spending review, the IFS said the changes announced on Wednesday would reinforce the "regressive" nature of the Government's plans to tackle the deficit, including the £7 billion of welfare cuts.
IFS acting director Carl Emmerson said: "Our analysis continues to show that, with the notable exception of the richest 2%, the tax and benefit components of the fiscal consolidation are, overall, being implemented in a regressive way."
Downing Street questioned the IFS's findings, saying it was "strange" to exclude the richest 2%. A spokesman for the Prime Minister said: "They just say 'if we take out the people who are paying the most and contributing the most to this consolidation then you have a different picture'.
"Well of course you have a different picture but why would you ignore the people at the top? If we did the same and said 'let's ignore the people at the bottom' you would think that was quite strange."
But Angela Eagle, shadow chief secretary to the Treasury, said: "George Osborne's smoke and mirrors have well and truly unravelled. On any measure his plans hit the poorest hardest. And the IFS have all but called him a liar for his ridiculous claim that he is cutting less than Labour planned."
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October 21, 2010, 1:35 pm
![Image]( "Award nomination for blinded Pc")
The policeman blinded by killer Raoul Moat has been nominated to be honoured for his courage with a Pride of Britain award.
Pc David Rathband lost the sight in both eyes when he was shot in the face by the on-the-run gunman as he sat in his marked patrol car at an A1 roundabout in Newcastle four months ago.
But the father-of-two has refused to let the fugitive destroy his life and founded a charity, the Blue Lamp Foundation, to help other members of the emergency services injured in the line of duty.
The 42-year-old Northumbria Police officer said: "It's an honour to even be considered.
"But I don't consider myself to be any braver than any other police officer in the country."
Pc Rathband is one of four finalists who are in the running for Daybreak's Emergency Services Award at the Daily Mirror's Pride of Britain Awards 2010.
HRH Prince Charles and the Prime Minister David Cameron are taking part in the award ceremony.
The other inspiring finalists are fireman Dean Seaward, 48, of Blackpool, Pc Steve Hargrave, 41, of Sussex, and paramedic Jeanette Yeoell, 54, also Sussex.
The winner will receive the award from presenters Christine Bleakley and Adrian Chiles at the star-studded ceremony at the Grosvenor House on London's Park Lane, next month.
The event, to be screened on ITV1, was the highest rated awards show on TV last year with around seven million viewers.
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October 21, 2010, 1:35 pm
![Image]( "Montgomerie 'unscathed' after crash")
Golfer Colin Montgomerie has said he was lucky to walk away from a car crash "relatively unscathed".
Montgomerie, 47, who captained Europe to victory over the United States in the Ryder Cup earlier this month, did not require hospital treatment after the crash.
Strathclyde Police confirmed that the male driver of a van had been charged with road traffic offences after the crash.
Montgomerie's BMW 7-series was involved in the crash at around 11.25am on the A80 at Moodiesburn near Glasgow.
In a statement, Montgomerie said: "I was trapped as the side of the car was compressed and the air bags were holding me back, but the passenger door suddenly opened and I was pulled to safety thanks to other drivers who had witnessed the accident.
"It was a terrible shock and I am lucky to have come out of it relatively unscathed, thanks I am sure to the car I was driving."
Montgomerie felt it was unnecessary to go to hospital and received treatment at the roadside from the ambulance crew before being taken back to his home in Perth.
He later pulled out of a charity event in Inverness planned for Friday in the wake of the incident.
He was meant to be launching a walk in aid of the Elizabeth Montgomerie Foundation, which he set up in memory of his mother after losing her to cancer.
It aims to raise funds to provide information and support to those affected by cancer. The charity walk will still go ahead.
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October 21, 2010, 1:35 pm
![Image]( "OECD: Spending cuts 'courageous'")
George Osborne's public spending cuts have been described as "tough, necessary and courageous" by a leading international economic organisation.
The Organisation for Economic Cooperation and Development (OECD) said the spending review contained measures to both retain credibility and minimise the impact on growth.
Angel Gurria, secretary general of the OECD, said: "Budgetary consolidation is never easy but the timing and scope of the measures balance concerns for near-term growth with the need to stop the snowballing of debt and to preserve credibility.
"The measures are tough, necessary and courageous. Acting decisively now is the best way to secure better public finances and bolster future growth."
His comments are a boost for Mr Osborne and will help him counter claims that the spending cuts risk choking off growth and sending the economy into recession again.
The OECD praised the coalition Government's determination to tackle the UK's deficit and the move to increase the retirement age to 66, which it said showed ministers were "willing to push for structural reforms".
It called for further steps focusing on "efficiency" in health and education provision.
The influential organisation said the Government had moved to minimise the impact of cuts on growth by mitigating those in infrastructure investment and by giving priority to education and research.
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October 23, 2010, 1:08 pm
![Image]( "'Old charts may have grounded sub'")
A nuclear-powered submarine may have run aground on a shingle bank because the charts it was using were out of date, sources have said.
HMS Astute was on sea trials when the rudder of the vessel is thought to have become stuck on the bank on the west coast of Scotland at around 8am on Friday.
The Royal Navy has launched a service inquiry into why the 100m-long submarine ran aground in the channel between Skye and Kyle of Lochalsh.
One of the possibilities being explored is that out of date charts had not accurately mapped the shifting sea channels off the Isle of Skye.
The vessel is understood to have strayed several hundred yards outside the safe sea lane marked on Admiralty charts.
A Royal Navy source told the Mail on Sunday: "One of the things that is being looked at is if the charts were up to date with the recent seabed changes in the area."
The Ministry of Defence said the investigation into the incident would be "full and thorough".
The investigation will also consider if any crew were negligent and the submarine's skipper, Commander Andy Coles, could find himself in front of a court martial. But a Ministry of Defence spokesman said it would be "inappropriate" to comment on the possibility of disciplinary action until the investigation is complete.
It is believed a crew transfer from the shore to the submarine was being carried out when the incident happened between the Isle of Skye and the mainland.
There were no reports of any injuries and the Ministry of Defence said it was not a "nuclear incident".
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October 23, 2010, 1:08 pm
![Image]( "Pier reopens to visitor 'stampede'")
One of Britain's best-loved piers has risen from the ashes and re-opened to a "stampede" of visitors.
The Grand Pier in Weston-super-Mare was destroyed by a devastating blaze in July 2008.
Officials said over 52,000 people visited the attraction in the first eight hours of re-opening.
The pier underwent a £39 million transformation and was due to be opened in July but was hit by several setbacks.
It can hold 6,700 people at a time and there were long queues as people tried to be among the first to visit.
Owners Kerry and Michelle Michael said they were devastated by the fire but vowed to bring the landmark back to life with a modern glass fronted design by Bristol-based architects Angus Meek.
Mr Michael said: "It's been quite phenomenal. It was like a stampede when we opened and it just got busier and busier. I was quite apprehensive and didn't know what to expect. We wanted a big start and it's just been better than we could have hoped for."
The pier is now home to the first ever laser maze in the UK and the only double one in the world as well as Britain's smallest rollercoaster - the Robocoaster - a giant robotic arm ride. The biggest ride is a 300m electric floor pick-up go-kart track which is the only one of its kind in the UK and cost £1 million to construct.
The owners have also installed a full sprinkler system, an "Ansul" fire suppression system above all heat source catering equipment, with its own fire hoses and its own fire hydrant to prevent another blaze.
The Grade II-listed pier first opened in 1904, with the first pavilion also destroyed in a fire in 1930. The fire two years ago was caused by an electrical fault.
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October 23, 2010, 1:08 pm
![Image]( "Osborne 'exaggerated debt crisis'")
George Osborne has been accused by Britain's new Nobel Prize winning economist of having "exaggerated" the risk of a Greek-style debt crisis.
Professor Christopher Pissarides said that the prospects of a sovereign debt crisis hitting Britain were "minimal".
In an article for the Sunday Mirror, he warned that the Chancellor's swingeing cuts package announced last week was taking "unnecessary risks" with the economy.
Mr Osborne has said drastic action to tackle the deficit was necessary to avoid a Greek-style collapse in investor confidence, leaving Britain facing punitive interest rates to finance its borrowing.
However, Prof Pissarides said that he believed the Chancellor had over-stated the dangers.
"It is important to avoid this 'sovereign risk'. But in my view Britain is a long way from such a threat, and the Chancellor has exaggerated the sovereign risks that are threatening the country," he said.
He said that Mr Osborne should have been more concerned about the current weakness of the UK economy.
"Unemployment is high and job vacancies few. By taking the action that the Chancellor outlined in his statement, this situation might well become worse," he said.
"These risks were not necessary at this point. He could have outlined a clear deficit-reduction plan over the next five years, postponing more of the cuts, until recovery became less fragile. The 'sovereign risk' would have been minimal."
He added: "Overall, the Chancellor is putting the economy through some unnecessary risks because of his fear of sovereign risk, which does not appear justified."
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October 23, 2010, 1:08 pm
![Image]( "'Assault victim' crash death probed")
Police are investigating the death of a motorist who was hit by two cars shortly after getting out of his vehicle and being involved in an altercation with another driver.
Detectives are hunting the two drivers who failed to stop at the scene in Wandsworth, south west London on Friday night.
Scotland Yard said two other vehicles - a Nissan Micra and a Ford Fiesta - had pulled up at the location, and the drivers had their left their cars before being involved in the fracas.
The 40-year-old driver of the Nissan was then hit by two vehicles that failed to stop.
Officers were called at about 11.40pm to reports of a traffic incident at the junction of Trinity Road and Magdalen Road.
The victim was taken to a south London hospital, where he was pronounced dead at 1.53am, police said.
A spokesman said it was thought that the man's identity was known, but formal identification was awaited. Next of kin have been informed.
A post mortem examination will take place today.
"It is believed that the man was the victim of an assault prior to being in collision with two vehicles that failed to stop at the scene," the spokesman said.
"A 25-year-old man has been arrested on suspicion of assault and is in custody at a south London police station."
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October 23, 2010, 1:09 pm
![Image]( "Emergency fire crews 'intimidated'")
A walkout by thousands of London firefighters has ended with a war of words between union leaders and the brigade over allegations of intimidation and violence against crews standing in for the strikers.
The brigade claimed there were a number of incidents including a hit and run, with three motorbikes surrounding one fire engine, that left the vehicle damaged. It was also claimed staff were followed and threatened on all 27 fire engines deployed across the capital and barricades were placed across at least one station entrance preventing fire engines from getting in and out.
Fire Brigades Union general secretary Matt Wrack said the accusations were "totally unfounded", insisting the eight hour strike, which ended at 6pm, was "orderly, disciplined and solid".
The union has accused the capital's fire brigade of threatening thousands of firefighters with the sack if they didn't agree to new shift patterns and it plans another eight hour strike on November 1 if the dispute remains deadlocked.
Mr Wrack said: "London's 5,600 firefighters did the last thing they wanted to do today - they went on strike for eight hours, leaving the capital without their expertise. This wasn't a fight we sought or wanted. London Fire Brigade wants changes in shift patterns. We are willing to negotiate changes, but we expect to negotiate them. We won't have them imposed on us by the threat of sacking all our members.
"One thing marred the day. London firefighters will be saddened that their chief fire officer, Ron Dobson, chose to come out with a series of unfounded accusations of violence against the men and women who work for him and for London."
The FBU described the contingency plans as a "fiasco" and described a multimillion-pound contract with private firm AssetCo as a waste of public money.
Mr Wrack added: "There has been no intimidation, harassment or violence by our members. A police superintendent has confirmed to me that they have had no reports of trouble. We have made sure there will be no violence - we have close liaison with the police, including discussions with them yesterday and today, and including a FBU official in the police control room for a time to help ensure there was no problem."
London fire commissioner Ron Dobson said: "Peaceful protest is a legal right which the Fire Brigade has no problem with. The emergency fire crews have done an excellent job so far today but there are serious concerns that the intimidation, harassment and violence towards them could undermine their ability to carry on doing the best job for Londoners.
"These mindless actions leave a real danger that Londoners are less safe during the industrial action. The capital should never be put at risk by the actions of a minority of individuals hell-bent in causing disruption."
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October 23, 2010, 1:09 pm
![Image]( "Clegg battled conscience over cuts")
Deputy Prime Minister Nick Clegg has described how he wrestled with his conscience over the coalition's spending cuts.
The Liberal Democrat leader said that he found administering the biggest financial retrenchment in living memory "morally difficult".
But appearing on BBC Radio 4's Desert Island Discs, he insisted there were no "pain-free alternatives" to the measures set out in Chancellor George Osborne's spending review.
"I have spent every day of this process - pretty well every minute of this process - asking myself whether there are pain-free alternatives, whether we are doing the right thing, and I genuinely believe there is no easy alternative," he said. "I have certainly searched long and hard into my own conscience about whether what we are doing is for the right reasons. I am not going to hide the fact that a lot of this is difficult. I find it morally difficult. It is difficult for the country."
Mr Clegg has come under fire for backing "regressive" Tory spending plans and abandoning Lib Dem election promises.
When presenter Kirsty Young put it to him that he was looking "very tired and very worn down by it all", he laughed off the suggestion, saying it was "a combination of work and small children".
He denied that when he patted Mr Osborne on the back after he delivered his statement to in the House of Commons - amid cheers from Tory MPs - there had been any sense of triumphalism.
"Of course I was not doing so with any sense of relish or triumphalism about what we had to do," he said.
Mr Clegg said that the most difficult decision had been to back an increase in university tuition fees, having pledged during the election campaign that he would not do so.
"I have wrestled with this one more than anything else because I made a pledge which I find that I cannot keep. You don't do that lightly," he said.
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October 23, 2010, 1:09 pm
![Image]( "Teenager shot dead in city attack")
A teenage boy was shot dead after two balaclava-clad gunmen opened fire on a group of four young friends, police have said.
The 16-year-old victim, named locally as Samuel Adelagun, was killed in the early hours on Chesterton Road, Plaistow, east London.
A second boy, 15, was also shot and is in a stable condition in hospital.
A Metropolitan Police spokesman said the group aged 15 and 16 were attacked from behind by the gunmen at around 3.20am. Approximately four shots were fired.
Samuel was shot in the upper left chest, while the 15-year-old was blasted in the abdomen.
The only description of the gunmen is that they were dressed in black and wearing balaclavas. It is not known if they travelled in a vehicle or were on foot.
The group of friends ran away during the attack before meeting back on Chesterton Road where they called the police.
Detectives from the Met's Trident unit, which tackles gun related crime within the black community, are investigating the death. No arrests have yet been made. Next of kin have been informed and a post-mortem is due to take place.
Wendy Barrett, 42, of Chesterton Road, said: "I'm absolutely devastated, I can't imagine what his mother must be feeling this morning. I have two children of my own and it makes you think you don't want them to go out." Her husband Dean, 40, added: "This is not the best area to live in. There is nothing for children to do, they go around in gangs."
Annie Smith, 77, of Howards Road, backing on to the parkland, said: "I heard two males shouting then I went back to sleep. Then I heard three or four bangs. I thought it could be fireworks but it may have been shots. I then heard somebody shouting and someone answer faintly. They are just kids, why were they out so late?"
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October 23, 2010, 1:09 pm
![Image]( "Cameron insists cuts 'are fair'")
David Cameron has insisted that the Government was administering its programme of spending cuts in a "fair" way, with the richest in society shouldering the greatest burden.
In a podcast on the No 10 website, the Prime Minister acknowledged that the country faced a "hard road", with benefits frozen or cut and Government departments forced to find savings.
"I don't underestimate how difficult this will be," he said.
However he said that drastic action had been essential - slashing the deficit by £81 billion over just four years - in order to rebuild Britain's economy for the future.
"We didn't just do the right thing, we did it the right way. We've gone about these spending cuts in a way that is fair and in a way that promotes economic growth and new jobs," he said.
"Fair because if you look at the figures, you'll see the highest earners aren't just paying more in cash, they are paying more as a percentage of their income. As we promised, those with broader shoulders are bearing a greater burden. What's more we've chosen to protect the services that families rely on, like the health service, schools, and social care."
His comments reflect the acute sensitivity within the coalition to accusations that Chancellor George Osborne's spending review, announced on Wednesday, would hit the poor hardest. Analysis by the respected Institute for Fiscal Studies found that - apart from the richest 2%, who would be caught by tax rises announced under Labour - the burden of cuts would fall disproportionately on the poorest.
The charge that the spending review was "regressive" is particularly damaging to Deputy Prime Minister Nick Clegg who has said the Liberal Democrats would ensure fairness as the deficit was cut.
In his podcast, Mr Cameron said that the spending review had also been designed promote economic growth, focusing what resources were available on wealth creation and boosting enterprise. "We're going to make the next decade the most entrepreneurial in Britain's history, and transform the fortunes of our country," he said.
"I know the road ahead will be hard. But we have a plan. We are seeing it through. And believe me, the destination will be worth it. A Britain with a strong, positive and confident future."
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October 23, 2010, 1:09 pm
![Image]( "Iraq war leaks 'put lives at risk'")
A whistleblowing group has insisted its decision to publish secret US military documents was to reveal the truth about the war in Iraq despite criticism it could put the lives of British armed forces in danger.
WikiLeaks posted nearly 400,000 leaked classified reports on the internet which contain accounts of abuse and misconduct by Iraqi authorities and US forces. There are also some allegations of abuse by UK soldiers, the website said.
The reports relate to 109,000 deaths - including 66,000 civilians, of which 15,000 were previously undocumented, it claimed.
WikiLeak's founder Julian Assange told a news conference in central London: "This disclosure is about the truth. We hope to correct some of that attack on the truth that occurred before the war, during the war, and which has continued on since the war officially concluded. While I am not sure we have achieved the maximum possible (political impact) I think we are getting pretty close."
The Ministry of Defence said the website had been reckless and was putting the lives of British military personnel in danger.
An spokesman said: "We condemn any un-authorised release of classified material. This can put the lives of UK service personnel and those of our allies at risk and make the job of Armed Forces in all theatres of operation more difficult and more dangerous. It would be inappropriate to speculate on the specific detail of these documents without further investigation while the Iraq Inquiry is ongoing. There is no place for mistreatment of detainees and we investigate any allegation made against our troops."
Iraqi Prime Minister Nouri Maliki condemned the leak as a political stunt and US Secretary of State Hillary Clinton also suggested the leaks put lives at risk.
Pentagon spokesman Marine Corps Colonel Dave Lapan said: "We deplore WikiLeaks for inducing individuals to break the law, leak classified documents and then cavalierly share that secret information with the world, including our enemies.
"We know terrorist organisations have been mining the leaked Afghan documents for information to use against us, and this Iraq leak is more than four times as large. The only responsible course of action for WikiLeaks at this point is to return the stolen material and expunge it from their websites as soon as possible."
The archive comes after 90,000 files chronicling civilian deaths and other incidents in Afghanistan were published by the site in July. A further 15,000 documents, which had been held back because of their sensitive content, will be released shortly it said.
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Home Secretary Theresa May has repeated Government warnings of a "very serious" threat from terrorism as the new National Security Strategy was set to be unveiled.
Mrs May urged the public to remain vigilant in the face of a "highly likely" attack by international terrorists.
"We are absolutely clear that we do have a very serious threat from international terrorism - that is why the threat level here in the UK is at severe," she told ITV1's Daybreak.
"That means that an attack is highly likely, so everybody does need to be vigilant. What we see today is more diverse sources of threat, but we are absolutely clear that we do have that very serious threat from international terrorism."
Mrs May was speaking as Britain's new National Security Strategy was expected to name terrorism and cyber-attacks on vital computer networks as the biggest threats to the UK in the immediate future.
The strategy, to be announced by David Cameron in a written statement to MPs, has been drawn up by the Prime Minister's new National Security Council as part of an assessment of Britain's defence needs which he ordered in May. It will set the scene for Tuesday's Strategic Defence and Security Review (SDSR), which will sketch out the shape of Britain's future armed forces and explain what equipment and manpower will have to be sacrificed to achieve the 7%-8% savings demanded by the Treasury.
A leaked draft of the national security document suggested that military conflict with another state will come only fourth in a list of potential threats to the UK, behind terror outrages by groups such as al Qaida, cyber-attacks and natural disasters.
The launch comes just days after the head of the Government's GCHQ eavesdropping centre, Iain Lobban, warned of the very real danger of cyber-terrorism directed at the UK's critical computer infrastructure.
Shadow foreign secretary Yvette Cooper said: "The Government seem to be producing a reheated security strategy to provide cover for a rushed defence spending review, rather than producing a renewed and careful consideration of the UK's defence and security priorities. The Government should show renewed vigour in the process towards a political settlement in Afghanistan, led by the Afghans, while supporting our 10,000 troops with the resources they need in creating the conditions on the ground for a more stable country.
"The strategy must also address new and emerging threats, including the prevalence of cyber-attacks; ambitions from terrorist groups to obtain chemical or biological weapons; and working to prevent conflict in failing states. The Government should also show more diplomatic activism in the Middle East, and be at the forefront of European Union support for the continuation of direct talks."
An investigation is to be carried out into allegations that two priests were allowed to continue working despite being accused of serious child abuse offences, the Church of England has confirmed.
Collin Pritchard was the vicar of St Barnabas, in Bexhill-on-Sea, East Sussex, until 2007, despite having been first reported to police for sex offences 10 years earlier. He was only suspended when a new safeguarding officer at the diocese decided he was a risk to children.
He was charged with sexually abusing the two young boys the same year and was then jailed for five years in July 2008 when he pleaded guilty to four counts of indecent assault and three counts of committing an act of gross indecency on the two children.
Pritchard was in charge of a church in Wellingborough, Northamptonshire, in the early 1980s when he committed the offences, Northampton Crown Court was told.
Jurors heard one of the boys was also abused by Roy Cotton, who worked as a parish priest in Brede near Rye, East Sussex, but prosecutors decided there was not enough evidence to charge him before he died in September 2006.
The allegations emerged after an investigation by BBC South East following the acquittal of a former alter boy accused of murdering an elderly vicar.
Christopher Hunnisett was originally found guilty of murdering 81-year-old Ronald Glazebrook following a trial in 2002, but a jury cleared him at last month's re-trial at Lewes Crown Court after hearing evidence that the vicar had sexually abused him.
Cotton had also been convicted of a sexual offence against a boy in 1954, the BBC reported.
The Archdeacon of Lewes and Hastings, the Ven Philip Jones confirmed the Church had launched an investigation.
He said in a statement: "The Diocese of Chichester gives the protection of children the highest priority and takes seriously all concerns raised."
Three peers have been given lengthy suspensions from the House of Lords after wrongly claiming thousands of pounds in expenses.
Labour peers Baroness Uddin and Lord Paul, and crossbencher Lord Bhatia, were suspended after the upper chamber approved the damning judgments of its Privileges and Conduct Committee.
Lady Uddin was suspended until the end of the parliamentary session in 2012 and told to repay £125,349.10.
Lord Bhatia was sidelined for eight months and has already repaid more than £27,000.
Lord Paul was suspended for four months and has already returned £41,982.
The sanctions are the toughest imposed on misbehaving members for more than 300 years.
Lady Uddin and crossbencher Lord Bhatia were found to have acted "not in good faith" by incorrectly declaring their main homes in order to claim generous overnight allowances.
An initial investigation decided that Lord Paul had also acted "not in good faith" in his home designations.
However, the committee rejected this finding on appeal, accepting that although "utterly unreasonable" and "negligent", he had not been "dishonest" and had already returned £41,982 last year.
Prominent Labour peer Lord Alli raised the issue of racial bias after the decision was announced. He told peers: "Let me say from the outset I don't wish in any way to accuse any member of the committee or sub-committee of racism. That would be quite improper and wrong. But it cannot have escaped your attention that the only three members of the House who were referred to the Committee for Privileges and Conduct and subsequently investigated under these procedures were all Asian."
The head of Britain's biggest business group has urged banks to be "very very sensitive" in the coming months over the payment of bonuses, as the Government's public spending cuts start to hit the jobs and pay of workers.
Richard Lambert, director general of the CBI, has warned of "political consequences" if banks pressed ahead with huge bonus payments in the current climate of austerity.
Business Secretary Vince Cable has already hinted at legislation to curb excessive City bonuses, a move Mr Lambert said he would oppose because he was always against "windfall" taxes.
But he added: "Banks are going to have to be very very sensitive in the coming months. If they just press ahead with substantial bonuses at a time when public sector workers are being laid off, there will be political consequences. They will be soaked in some way."
Mr Lambert said he did not believe the public would support an outbreak of industrial action in protest at the spending cuts, but added he was "waiting to see" how unions reacted.
He said he had been impressed at recent speeches by TUC leader Brendan Barber, who had been trying to defend union members against cuts without calling for "blood and thunder" on the streets. He said: "There would be no great public support for a general outbreak of unrest. We are not France - but we wait and see."
Mr Lambert, speaking ahead of the CBI's national conference in London on Monday, said he had been surprised at the way the coalition Government had performed since the election, culminating in the "pretty amazing achievement" of the comprehensive spending review on Wednesday.
"I have been surprised by their cohesion, despite very different political backgrounds, and by the radical nature of their policy changes."
He said the coalition had been good for the country, and for business, because the alternative would have been a minority Conservative administration which could have been "blown away" any second.
Mr Lambert, who stands down as director general in the New Year after almost five years in the post, said the spending review did not change the "big picture" of the UK economy, continuing: "We still think it is unlikely there will be a double dip recession, and we are still hopeful for a measure of growth next year."
London Fire Brigade has pledged to respond to 999 calls throughout an eight hour walk-out by firefighters in the capital in a row over new contracts.
The Brigade said it had contingency plans in place to provide fire cover, with a fire engine available to be sent to a wide range of emergencies including fires in people's homes, vehicle fires, road accidents and collapsed buildings.
But officials admitted a fire engine may not be sent to less urgent and non life threatening incidents, including rubbish fires, fires on open ground, large animal rescues, flooding, people stuck in lifts and gas leaks.
Members of the Fire Brigades Union (FBU) will walk out from 10am on Saturday and again for eight hours on November 1 in protest at new contracts containing changes to shift times.
London Fire Commissioner Ron Dobson said: "As firefighters our job is to protect the public from fire day and night so this strike over proposed shift times is very disappointing. We have plans that mean every area of London has fire cover and we will be doing all that we can to prevent this FBU action putting Londoners at risk.
"The dispute centres on how we are trying to do more to make Londoners and firefighters safer, it can only be resolved through talks, not an FBU strike."
The Brigade said its contingency arrangements allowed it to place up to 27 fire appliances at strategic locations across London and was a "significant improvement" on the military green goddesses used during the last strike.
The Fire Authority entered into a five year, £9 million contract last year with private firm AssetCo to provide London with a contingency level of fire and rescue services if firefighters were not available, for example, in the event of severe pandemic illness, industrial action, natural disaster or catastrophic incident.
Crime recorded by the police fell by 8% in the last year, official figures revealed.
Reported incidents of criminal damage were down 17%, offences against vehicles were down 16% and domestic burglary fell by 8% compared with last year, the latest Home Office figures for the year to June 2010 showed.
But the number of recorded sexual offences rose by 8%.
Home Secretary Theresa May said: "Victims of crime know that while any reduction in crime is welcomed, statistics only present a partial picture.
"There are still too many offences which ruin lives, whether they are recorded or not, and that means more needs to be done to bring down crime.
She went on: "It is unacceptable that each day on average more than 26,000 people fall victim to crime and the police report stubbornly high levels of violence - on average 1,000 people are injured each day.
"We want to ensure that police and their partner agencies continue to work together to focus on fighting crime, which is why we are slashing bureaucracy to ensure police officers are visible and available on the streets and making police forces more accountable to their local communities."
Chief Constable Keith Bristow, head of crime for the Association of Chief Police Officers (Acpo), said officers were still working "to improve all areas of sex offence investigation".
"We remain determined to tackle people who commit sexual offences and we are making real progress in this critical area, particularly around giving victims confidence to come forward and report these crimes and we need them do so," he said.
"These overall results are a strong indication of the dedication of our workforce and others to keep people safe. We remain resolute in our mission to provide a visible and responsive police service that tackles the challenges which matter most to the people."
The Government must roll out support centres for rape victims across the country or it will have failed in its duty to those who have been grievously harmed, a crossbench peer has said.
Baroness Stern, who carried out a landmark review of how rape complaints were handled earlier this year, said the Government must commit to supporting rape victims despite the financial pressures outlined in its spending review.
Her comments, delivered in the third annual Crown Prosecution Service lecture, come on the day the latest Home Office figures showed the number of sexual offences recorded by police in the year to June 2010 rose by 8% to 55,217 from 51,139 in the previous 12 months.
Baroness Stern said the spending review made it "clear that there will be less money and some things will not be done".
But she warned: "In the face of these financial constraints we have to say serious violent crime must be the priority and rape is one of the most serious violent crimes.
"I am sure that as the cuts come there will be a commitment to no reductions in investigating and prosecuting serious crime. That is the duty of any Government and it will continue.
"However if there is to be justice we have to ensure that there is a similar commitment to supporting the victims of that serious crime.
"If the sexual assault referral centres are not rolled out across the country, if the grants for independent sexual violence advisers are not renewed, if rape crisis centres are closing up and down the country, the Government will have failed to meet its obligations to a group of people who have been grievously harmed.
"I hope that message will be heard by all those in Government making these decisions."
In her review, which was published in March, Baroness Stern said hundreds of independent workers would help those whose lives were torn apart by sexual violence make sense of the police inquiry and the prosecution of those responsible. Independent sexual violence advisers, a post being piloted in some areas, provide a key link between the victim and police, prosecutors and charity groups, she said.
Coalition claims that the spending review was fair have been dealt a heavy blow as a leading economics think-tank insisted the cuts would hit the poorest harder than most of the better off.
The respected Institute for Fiscal Studies (IFS) warned that Chancellor George Osborne's £81 billion cuts package was "regressive" except for its impact on the richest 2%. Families with children would be the biggest losers, it said.
The intervention came as David Cameron and Nick Clegg met voters together in a bid to sell the deficit reduction measures to the public.
Without naming the IFS in particular, Deputy Prime Minister Mr Clegg accused the Government's critics of "frightening people" with claims that they were "doing unfair things when we are not".
But he also appeared to acknowledge that the Government's claims that the rich would pay the most were based on tax changes introduced by the former Labour government.
In its analysis of the spending review, the IFS said the changes announced on Wednesday would reinforce the "regressive" nature of the Government's plans to tackle the deficit, including the £7 billion of welfare cuts.
IFS acting director Carl Emmerson said: "Our analysis continues to show that, with the notable exception of the richest 2%, the tax and benefit components of the fiscal consolidation are, overall, being implemented in a regressive way."
Downing Street questioned the IFS's findings, saying it was "strange" to exclude the richest 2%. A spokesman for the Prime Minister said: "They just say 'if we take out the people who are paying the most and contributing the most to this consolidation then you have a different picture'.
"Well of course you have a different picture but why would you ignore the people at the top? If we did the same and said 'let's ignore the people at the bottom' you would think that was quite strange."
But Angela Eagle, shadow chief secretary to the Treasury, said: "George Osborne's smoke and mirrors have well and truly unravelled. On any measure his plans hit the poorest hardest. And the IFS have all but called him a liar for his ridiculous claim that he is cutting less than Labour planned."
The policeman blinded by killer Raoul Moat has been nominated to be honoured for his courage with a Pride of Britain award.
Pc David Rathband lost the sight in both eyes when he was shot in the face by the on-the-run gunman as he sat in his marked patrol car at an A1 roundabout in Newcastle four months ago.
But the father-of-two has refused to let the fugitive destroy his life and founded a charity, the Blue Lamp Foundation, to help other members of the emergency services injured in the line of duty.
The 42-year-old Northumbria Police officer said: "It's an honour to even be considered.
"But I don't consider myself to be any braver than any other police officer in the country."
Pc Rathband is one of four finalists who are in the running for Daybreak's Emergency Services Award at the Daily Mirror's Pride of Britain Awards 2010.
HRH Prince Charles and the Prime Minister David Cameron are taking part in the award ceremony.
The other inspiring finalists are fireman Dean Seaward, 48, of Blackpool, Pc Steve Hargrave, 41, of Sussex, and paramedic Jeanette Yeoell, 54, also Sussex.
The winner will receive the award from presenters Christine Bleakley and Adrian Chiles at the star-studded ceremony at the Grosvenor House on London's Park Lane, next month.
The event, to be screened on ITV1, was the highest rated awards show on TV last year with around seven million viewers.
Golfer Colin Montgomerie has said he was lucky to walk away from a car crash "relatively unscathed".
Montgomerie, 47, who captained Europe to victory over the United States in the Ryder Cup earlier this month, did not require hospital treatment after the crash.
Strathclyde Police confirmed that the male driver of a van had been charged with road traffic offences after the crash.
Montgomerie's BMW 7-series was involved in the crash at around 11.25am on the A80 at Moodiesburn near Glasgow.
In a statement, Montgomerie said: "I was trapped as the side of the car was compressed and the air bags were holding me back, but the passenger door suddenly opened and I was pulled to safety thanks to other drivers who had witnessed the accident.
"It was a terrible shock and I am lucky to have come out of it relatively unscathed, thanks I am sure to the car I was driving."
Montgomerie felt it was unnecessary to go to hospital and received treatment at the roadside from the ambulance crew before being taken back to his home in Perth.
He later pulled out of a charity event in Inverness planned for Friday in the wake of the incident.
He was meant to be launching a walk in aid of the Elizabeth Montgomerie Foundation, which he set up in memory of his mother after losing her to cancer.
It aims to raise funds to provide information and support to those affected by cancer. The charity walk will still go ahead.
George Osborne's public spending cuts have been described as "tough, necessary and courageous" by a leading international economic organisation.
The Organisation for Economic Cooperation and Development (OECD) said the spending review contained measures to both retain credibility and minimise the impact on growth.
Angel Gurria, secretary general of the OECD, said: "Budgetary consolidation is never easy but the timing and scope of the measures balance concerns for near-term growth with the need to stop the snowballing of debt and to preserve credibility.
"The measures are tough, necessary and courageous. Acting decisively now is the best way to secure better public finances and bolster future growth."
His comments are a boost for Mr Osborne and will help him counter claims that the spending cuts risk choking off growth and sending the economy into recession again.
The OECD praised the coalition Government's determination to tackle the UK's deficit and the move to increase the retirement age to 66, which it said showed ministers were "willing to push for structural reforms".
It called for further steps focusing on "efficiency" in health and education provision.
The influential organisation said the Government had moved to minimise the impact of cuts on growth by mitigating those in infrastructure investment and by giving priority to education and research.
A nuclear-powered submarine may have run aground on a shingle bank because the charts it was using were out of date, sources have said.
HMS Astute was on sea trials when the rudder of the vessel is thought to have become stuck on the bank on the west coast of Scotland at around 8am on Friday.
The Royal Navy has launched a service inquiry into why the 100m-long submarine ran aground in the channel between Skye and Kyle of Lochalsh.
One of the possibilities being explored is that out of date charts had not accurately mapped the shifting sea channels off the Isle of Skye.
The vessel is understood to have strayed several hundred yards outside the safe sea lane marked on Admiralty charts.
A Royal Navy source told the Mail on Sunday: "One of the things that is being looked at is if the charts were up to date with the recent seabed changes in the area."
The Ministry of Defence said the investigation into the incident would be "full and thorough".
The investigation will also consider if any crew were negligent and the submarine's skipper, Commander Andy Coles, could find himself in front of a court martial. But a Ministry of Defence spokesman said it would be "inappropriate" to comment on the possibility of disciplinary action until the investigation is complete.
It is believed a crew transfer from the shore to the submarine was being carried out when the incident happened between the Isle of Skye and the mainland.
There were no reports of any injuries and the Ministry of Defence said it was not a "nuclear incident".
One of Britain's best-loved piers has risen from the ashes and re-opened to a "stampede" of visitors.
The Grand Pier in Weston-super-Mare was destroyed by a devastating blaze in July 2008.
Officials said over 52,000 people visited the attraction in the first eight hours of re-opening.
The pier underwent a £39 million transformation and was due to be opened in July but was hit by several setbacks.
It can hold 6,700 people at a time and there were long queues as people tried to be among the first to visit.
Owners Kerry and Michelle Michael said they were devastated by the fire but vowed to bring the landmark back to life with a modern glass fronted design by Bristol-based architects Angus Meek.
Mr Michael said: "It's been quite phenomenal. It was like a stampede when we opened and it just got busier and busier. I was quite apprehensive and didn't know what to expect. We wanted a big start and it's just been better than we could have hoped for."
The pier is now home to the first ever laser maze in the UK and the only double one in the world as well as Britain's smallest rollercoaster - the Robocoaster - a giant robotic arm ride. The biggest ride is a 300m electric floor pick-up go-kart track which is the only one of its kind in the UK and cost £1 million to construct.
The owners have also installed a full sprinkler system, an "Ansul" fire suppression system above all heat source catering equipment, with its own fire hoses and its own fire hydrant to prevent another blaze.
The Grade II-listed pier first opened in 1904, with the first pavilion also destroyed in a fire in 1930. The fire two years ago was caused by an electrical fault.
George Osborne has been accused by Britain's new Nobel Prize winning economist of having "exaggerated" the risk of a Greek-style debt crisis.
Professor Christopher Pissarides said that the prospects of a sovereign debt crisis hitting Britain were "minimal".
In an article for the Sunday Mirror, he warned that the Chancellor's swingeing cuts package announced last week was taking "unnecessary risks" with the economy.
Mr Osborne has said drastic action to tackle the deficit was necessary to avoid a Greek-style collapse in investor confidence, leaving Britain facing punitive interest rates to finance its borrowing.
However, Prof Pissarides said that he believed the Chancellor had over-stated the dangers.
"It is important to avoid this 'sovereign risk'. But in my view Britain is a long way from such a threat, and the Chancellor has exaggerated the sovereign risks that are threatening the country," he said.
He said that Mr Osborne should have been more concerned about the current weakness of the UK economy.
"Unemployment is high and job vacancies few. By taking the action that the Chancellor outlined in his statement, this situation might well become worse," he said.
"These risks were not necessary at this point. He could have outlined a clear deficit-reduction plan over the next five years, postponing more of the cuts, until recovery became less fragile. The 'sovereign risk' would have been minimal."
He added: "Overall, the Chancellor is putting the economy through some unnecessary risks because of his fear of sovereign risk, which does not appear justified."
Police are investigating the death of a motorist who was hit by two cars shortly after getting out of his vehicle and being involved in an altercation with another driver.
Detectives are hunting the two drivers who failed to stop at the scene in Wandsworth, south west London on Friday night.
Scotland Yard said two other vehicles - a Nissan Micra and a Ford Fiesta - had pulled up at the location, and the drivers had their left their cars before being involved in the fracas.
The 40-year-old driver of the Nissan was then hit by two vehicles that failed to stop.
Officers were called at about 11.40pm to reports of a traffic incident at the junction of Trinity Road and Magdalen Road.
The victim was taken to a south London hospital, where he was pronounced dead at 1.53am, police said.
A spokesman said it was thought that the man's identity was known, but formal identification was awaited. Next of kin have been informed.
A post mortem examination will take place today.
"It is believed that the man was the victim of an assault prior to being in collision with two vehicles that failed to stop at the scene," the spokesman said.
"A 25-year-old man has been arrested on suspicion of assault and is in custody at a south London police station."
A walkout by thousands of London firefighters has ended with a war of words between union leaders and the brigade over allegations of intimidation and violence against crews standing in for the strikers.
The brigade claimed there were a number of incidents including a hit and run, with three motorbikes surrounding one fire engine, that left the vehicle damaged. It was also claimed staff were followed and threatened on all 27 fire engines deployed across the capital and barricades were placed across at least one station entrance preventing fire engines from getting in and out.
Fire Brigades Union general secretary Matt Wrack said the accusations were "totally unfounded", insisting the eight hour strike, which ended at 6pm, was "orderly, disciplined and solid".
The union has accused the capital's fire brigade of threatening thousands of firefighters with the sack if they didn't agree to new shift patterns and it plans another eight hour strike on November 1 if the dispute remains deadlocked.
Mr Wrack said: "London's 5,600 firefighters did the last thing they wanted to do today - they went on strike for eight hours, leaving the capital without their expertise. This wasn't a fight we sought or wanted. London Fire Brigade wants changes in shift patterns. We are willing to negotiate changes, but we expect to negotiate them. We won't have them imposed on us by the threat of sacking all our members.
"One thing marred the day. London firefighters will be saddened that their chief fire officer, Ron Dobson, chose to come out with a series of unfounded accusations of violence against the men and women who work for him and for London."
The FBU described the contingency plans as a "fiasco" and described a multimillion-pound contract with private firm AssetCo as a waste of public money.
Mr Wrack added: "There has been no intimidation, harassment or violence by our members. A police superintendent has confirmed to me that they have had no reports of trouble. We have made sure there will be no violence - we have close liaison with the police, including discussions with them yesterday and today, and including a FBU official in the police control room for a time to help ensure there was no problem."
London fire commissioner Ron Dobson said: "Peaceful protest is a legal right which the Fire Brigade has no problem with. The emergency fire crews have done an excellent job so far today but there are serious concerns that the intimidation, harassment and violence towards them could undermine their ability to carry on doing the best job for Londoners.
"These mindless actions leave a real danger that Londoners are less safe during the industrial action. The capital should never be put at risk by the actions of a minority of individuals hell-bent in causing disruption."
Deputy Prime Minister Nick Clegg has described how he wrestled with his conscience over the coalition's spending cuts.
The Liberal Democrat leader said that he found administering the biggest financial retrenchment in living memory "morally difficult".
But appearing on BBC Radio 4's Desert Island Discs, he insisted there were no "pain-free alternatives" to the measures set out in Chancellor George Osborne's spending review.
"I have spent every day of this process - pretty well every minute of this process - asking myself whether there are pain-free alternatives, whether we are doing the right thing, and I genuinely believe there is no easy alternative," he said. "I have certainly searched long and hard into my own conscience about whether what we are doing is for the right reasons. I am not going to hide the fact that a lot of this is difficult. I find it morally difficult. It is difficult for the country."
Mr Clegg has come under fire for backing "regressive" Tory spending plans and abandoning Lib Dem election promises.
When presenter Kirsty Young put it to him that he was looking "very tired and very worn down by it all", he laughed off the suggestion, saying it was "a combination of work and small children".
He denied that when he patted Mr Osborne on the back after he delivered his statement to in the House of Commons - amid cheers from Tory MPs - there had been any sense of triumphalism.
"Of course I was not doing so with any sense of relish or triumphalism about what we had to do," he said.
Mr Clegg said that the most difficult decision had been to back an increase in university tuition fees, having pledged during the election campaign that he would not do so.
"I have wrestled with this one more than anything else because I made a pledge which I find that I cannot keep. You don't do that lightly," he said.
A teenage boy was shot dead after two balaclava-clad gunmen opened fire on a group of four young friends, police have said.
The 16-year-old victim, named locally as Samuel Adelagun, was killed in the early hours on Chesterton Road, Plaistow, east London.
A second boy, 15, was also shot and is in a stable condition in hospital.
A Metropolitan Police spokesman said the group aged 15 and 16 were attacked from behind by the gunmen at around 3.20am. Approximately four shots were fired.
Samuel was shot in the upper left chest, while the 15-year-old was blasted in the abdomen.
The only description of the gunmen is that they were dressed in black and wearing balaclavas. It is not known if they travelled in a vehicle or were on foot.
The group of friends ran away during the attack before meeting back on Chesterton Road where they called the police.
Detectives from the Met's Trident unit, which tackles gun related crime within the black community, are investigating the death. No arrests have yet been made. Next of kin have been informed and a post-mortem is due to take place.
Wendy Barrett, 42, of Chesterton Road, said: "I'm absolutely devastated, I can't imagine what his mother must be feeling this morning. I have two children of my own and it makes you think you don't want them to go out." Her husband Dean, 40, added: "This is not the best area to live in. There is nothing for children to do, they go around in gangs."
Annie Smith, 77, of Howards Road, backing on to the parkland, said: "I heard two males shouting then I went back to sleep. Then I heard three or four bangs. I thought it could be fireworks but it may have been shots. I then heard somebody shouting and someone answer faintly. They are just kids, why were they out so late?"
David Cameron has insisted that the Government was administering its programme of spending cuts in a "fair" way, with the richest in society shouldering the greatest burden.
In a podcast on the No 10 website, the Prime Minister acknowledged that the country faced a "hard road", with benefits frozen or cut and Government departments forced to find savings.
"I don't underestimate how difficult this will be," he said.
However he said that drastic action had been essential - slashing the deficit by £81 billion over just four years - in order to rebuild Britain's economy for the future.
"We didn't just do the right thing, we did it the right way. We've gone about these spending cuts in a way that is fair and in a way that promotes economic growth and new jobs," he said.
"Fair because if you look at the figures, you'll see the highest earners aren't just paying more in cash, they are paying more as a percentage of their income. As we promised, those with broader shoulders are bearing a greater burden. What's more we've chosen to protect the services that families rely on, like the health service, schools, and social care."
His comments reflect the acute sensitivity within the coalition to accusations that Chancellor George Osborne's spending review, announced on Wednesday, would hit the poor hardest. Analysis by the respected Institute for Fiscal Studies found that - apart from the richest 2%, who would be caught by tax rises announced under Labour - the burden of cuts would fall disproportionately on the poorest.
The charge that the spending review was "regressive" is particularly damaging to Deputy Prime Minister Nick Clegg who has said the Liberal Democrats would ensure fairness as the deficit was cut.
In his podcast, Mr Cameron said that the spending review had also been designed promote economic growth, focusing what resources were available on wealth creation and boosting enterprise. "We're going to make the next decade the most entrepreneurial in Britain's history, and transform the fortunes of our country," he said.
"I know the road ahead will be hard. But we have a plan. We are seeing it through. And believe me, the destination will be worth it. A Britain with a strong, positive and confident future."
A whistleblowing group has insisted its decision to publish secret US military documents was to reveal the truth about the war in Iraq despite criticism it could put the lives of British armed forces in danger.
WikiLeaks posted nearly 400,000 leaked classified reports on the internet which contain accounts of abuse and misconduct by Iraqi authorities and US forces. There are also some allegations of abuse by UK soldiers, the website said.
The reports relate to 109,000 deaths - including 66,000 civilians, of which 15,000 were previously undocumented, it claimed.
WikiLeak's founder Julian Assange told a news conference in central London: "This disclosure is about the truth. We hope to correct some of that attack on the truth that occurred before the war, during the war, and which has continued on since the war officially concluded. While I am not sure we have achieved the maximum possible (political impact) I think we are getting pretty close."
The Ministry of Defence said the website had been reckless and was putting the lives of British military personnel in danger.
An spokesman said: "We condemn any un-authorised release of classified material. This can put the lives of UK service personnel and those of our allies at risk and make the job of Armed Forces in all theatres of operation more difficult and more dangerous. It would be inappropriate to speculate on the specific detail of these documents without further investigation while the Iraq Inquiry is ongoing. There is no place for mistreatment of detainees and we investigate any allegation made against our troops."
Iraqi Prime Minister Nouri Maliki condemned the leak as a political stunt and US Secretary of State Hillary Clinton also suggested the leaks put lives at risk.
Pentagon spokesman Marine Corps Colonel Dave Lapan said: "We deplore WikiLeaks for inducing individuals to break the law, leak classified documents and then cavalierly share that secret information with the world, including our enemies.
"We know terrorist organisations have been mining the leaked Afghan documents for information to use against us, and this Iraq leak is more than four times as large. The only responsible course of action for WikiLeaks at this point is to return the stolen material and expunge it from their websites as soon as possible."
The archive comes after 90,000 files chronicling civilian deaths and other incidents in Afghanistan were published by the site in July. A further 15,000 documents, which had been held back because of their sensitive content, will be released shortly it said.
