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Mortgage approvals continue to fall

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Image The number of mortgages approved for house purchase fell for the sixth month in a row during October as buyers continued to stay away from the property market. Only 47,185 loans were approved for people buying a property during the month, the lowest level since February, according to the Bank of England. The subdued level of transactions, which is well below the 70,000 to 80,000 approvals a month which are considered to be consistent with a stable market, will continue to put downward pressure on house prices.

Markets to react to Irish bailout

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Image The international money markets are to give their verdict on the 85 billion euro (£72.1bn) bailout of the Irish economy from the International Monetary Fund (IMF) and Europe. The rescue package was approved at an emergency meeting of European Union finance ministers in Brussels. The deal was struck the day after 50,000 protesters marched through the streets of Dublin against the country's drastic austerity measures. Irish prime minister Brian Cowen warned that without the loan, pending tax hikes and spending cuts would be more severe. He said it was essential for the country and in the best interest of its people and the eurozone, adding: "It allows us to move forward with secure funding for our essential public services, for our welfare state, for the most vulnerable members of society that depend on them." The overall loan facility includes up to 35 billion euro (£29.4bn) to support the banking system - 10 billion euro (£8.4bn) of which will be drawn down immediately for the recapitalisation at a rate of 5.8%. Some 50 billion euro (£42bn) will cover financing the state. Of the 85 billion euro, Ireland itself will contribute 17.5 billion (£14.7bn) by raiding pension funds to prop up the ailing banks. Opposition politicians claimed the bail-out agreement amounts to a national sell-out that will leave the country crippled with debt. The Irish government applied for the loan last Sunday when it conceded the bank crisis was too big for the country. Mr Cowen revealed the banking sector will be downsized and restructured under the terms of the package. However the bail-out does not provide for bondholders to take a hit, but the system will be replaced in 2013 when a new mechanism will mean bondholders face funding a share of any more bail-outs. Dominique Strauss-Kahn, IMF managing director, said Irish authorities had proposed a clear and realistic package of policies to restore Ireland's banking system to health and put its public finances on a sound footing. "Supported by substantial financing, this program can underpin market confidence and bring Ireland's economy back on track," he added.

Clegg urged to oppose fees increase

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Image More than 100 Liberal Democrat parliamentary candidates have called on leader Nick Clegg to oppose the proposed rise in tuition fees. The 104 activists warned Mr Clegg the party - which pledged before the election to vote against any rise - could face "many more years back in the political wilderness" unless MPs rejected the coalition Government's plans. A parliamentary vote on the measure is expected next month and Lib Dems are permitted to abstain under the coalition agreement with the Conservatives. But the candidates' petition, published on West Sussex County Council member Derek Deedman's website, said: "During the general election campaign many of our MPs (and now government ministers) signed a pledge with the National Union of Students that they would vote against any tuition fee rises during the course of the next Parliament. "The wording of this pledge clearly indicated that this would be unconditional; regardless of whether the party was in government or in opposition. "The party has been very clear for many years about its view on tuition fees and that we feel they should be abolished." It added that the candidates stance was "not a rebellion". But the petition went on: "There is one thing that sets the Liberal Democrats apart from other political parties; this is that when we say we will do something during election campaigns we then do it in government." The proposals to allow universities to raise fees by up to £9,000 a year have sparked two days of mass protests by students and lecturers this month.

People 'misled over Tube strikes'

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Image Transport for London has been accused of "misleading" travellers over the impact of a strike by thousands of Tube workers which has disrupted services for the fourth time in recent months. The company said Tube services were running on nearly all lines on Monday morning, adding that "some stations may be currently closed". The Rail Maritime and Transport union said the 24-hour walkout over job losses had the greatest impact yet, claiming that "ghost" trains were running as a "PR stunt". Thousands of members of the RMT and the Transport Salaried Staffs' Association walked out at 6.30pm on Sunday in protest at 800 ticket office job cuts. RMT general secretary Bob Crow said: "Once again RMT and TSSA members have stood rock solid in this dispute over Tube safety. "TfL and LU have been reduced to their usual well-rehearsed lies over services that they claim are running but it is pure fantasy and simply misleads Londoners. The capital is locked down across the board." TfL said: "Tube services are running on nearly all lines, despite a strike on London Underground called by the leaderships of the RMT and TSSA unions. "The Northern line is running a service across the full length of the line, and the majority of the Victoria, Jubilee, District lines are also being served." Mike Brown, managing director of London Underground, said: "Services are operating on virtually all lines this morning despite the pointless strike. "We are doing everything we can to get as many Tube services as possible operating, and to keep Londoners on the move with extra buses, river services, and other alternatives. Londoners will face some disruption, but we intend to continue to run services on nearly all Tube lines, meaning that people will be able to get around."

BA shareholders back Iberia merger

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Image British Airways' shareholders have approved a £5 billion merger between the airline and Spanish carrier Iberia. With Iberia shareholders, meeting in Madrid on Monday, also expected to give the link-up the go-ahead, a giant combined airline will be created. The cold weather and the Tube strike meant only around 30 BA shareholders were in attendance when BA chairman Martin Broughton opened the shareholders' meeting in Westminster. He told shareholders that the merger had a "compelling, strategic and financial logic" and would benefit staff, passengers and shareholders, while BA chief executive Willie Walsh said the merger would ensure BA could compete effectively with low-cost carriers. The merger will result in the creation of a new parent company for the two carriers - International Airlines Group (IAG). However, both airlines will keep their individual identities when IAG shares begin trading on the London Stock Market, with the link-up expected to be completed around January 21. The merger means a change of role for Mr Walsh who has been battling all year to not only see the link-up completed but also to end the cabin crew dispute which has led to strikes. Mr Walsh will become the IAG chief executive, with BA's chief financial officer, Keith Williams, becoming the new BA chief executive. Mr Williams's current BA position will be taken by Nick Swift, who is currently finance boss at transport company Go-Ahead. The merged airline will have 408 aircraft carrying around 57 million passengers a year. Between them, the two carriers have more than 57,000 staff and fly to more than 250 destinations. Although the cabin crew dispute is, as yet, unresolved, BA and Iberia have overcome what was seen as possible hindrance to the merger - the large BA pension deficit. There were fears that Iberia would be put off by this problem but the Spanish airline said it is happy with the steps BA is taking to reduce the deficit.

UK economic outlook is 'uncertain'

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Image The outlook for the economy is "inherently uncertain" and recovery will be slower than after previous recessions, the UK's tax and spending watchdog has warned. The Office for Budget Responsibility said the impact of Government deficit-busting measures - which include a hike in VAT to 20% and an £81 billion package of spending cuts - would lead to "sluggish growth" in the medium term. But the OBR - formed in May to make an independent assessment of public finances and the economy - did slash its projections for public sector job cuts over the next four years from 490,000 to 330,000. The watchdog's forecast - which will provide the fiscal framework for the Government's next budget in March - raised estimates for GDP growth in 2010 from 1.2% to 1.8%, but lowered growth in 2011 and 2012 from 2.3% to 2.1% and from 2.8% to 2.6% respectively. The OBR's Economic and Fiscal Outlook report said: "Our central forecast is that the economy will continue to recover from the recession, but at a slower pace than in the recoveries of the 1970s, 1980s and 1990s. "This relatively sluggish medium-term outlook reflects the gradual normalisation of credit conditions, efforts to reduce private sector indebtedness and the impact of the Government's fiscal consolidation." The OBR said the Government has a "better than 50%" chance of meeting its mandate to reduce the structural deficit - the gap between Government spending and taxes - by 2015-16. Projections for public borrowing were similar to the OBR's June forecast, as it slightly lowered its estimate in the current 2010-11 financial year to £148.5 billion from £149.5 billion. The watchdog also added that as the Government reduced its planned cuts in public services spending, by announcing additional cuts in welfare spending, it expects the number of public sector job losses planned for the next four years to significantly shrink. As growth slows in the near-term, the OBR expects total unemployment to rise to a peak of just over 8% in 2011 - in line with previous forecasts. The watchdog then expects unemployment to fall to just over 6% by 2015. The OBR also expects the rate of inflation - or cost of living - to be higher in 2010 and 2011 than in its June forecast, but will fall below the Bank of England's 2% target by 2012, as the effects of the VAT hike fade away.

Tube strike action 'could escalate'

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Image Strikes by London Underground workers could be escalated in the new year with walkouts lasting up to three days considered, union leaders have warned. But officials of the Rail Maritime and Transport (RMT) union and the Transport Salaried Staffs' Association (TSSA) said they would not be recommending any walkouts over the festive season. The move appeared to rule out any more strikes before January 10, giving a respite to travellers in London. It came as Tube services were disrupted on Monday by a 24-hour walkout in protest against job losses. Bob Crow, general secretary of the RMT, said: "We are moving towards an escalation of the action in the New Year. I don't think it will be appropriate to have action over Christmas." Mr Crow said his executive will consider the next move later this week, adding this could lead to two or three-day strikes or action in an entire week by different groups of Tube workers. "I will not be recommending any action this side of January 2, but come 2011 we will have to consider escalating strikes to more than one day." Earlier, Transport for London was accused by Mr Crow of "misleading" travellers over the impact of a strike by thousands of Tube workers which has disrupted services for the fourth time in recent months. The company said Tube services were running on nearly all lines on Monday morning, adding that "some stations may be currently closed". The RMT said the walkout had had the greatest impact yet, claiming that "ghost" trains were running as a "PR stunt".

Forecasters warn more snow to come

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Image Forecasters have warned there is no sign of a let-up in the icy conditions, with several more centimetres of snow continuing to fall in the North East and parts of eastern Scotland over the coming days. The rest of the UK will also be affected, with snow moving south, and only parts of western Scotland and Northern Ireland will be free of snow showers by Tuesday afternoon, forecasters said. In Scotland, more than 600 people were offered emergency accommodation at a sports hall in Perth after they were stranded overnight on Sunday on the A90, M90 and A9 amid blizzard conditions. All schools in Dundee, West Lothian and Shetland are closed on Monday. Across York and North Yorkshire, around 50 schools were forced to shut, with several schools in East Yorkshire also closed for the day. The coldest place overnight in the UK was Altnaharra in northern Scotland, which recorded a low of minus 16.1C. Llysdinam, which saw Wales's chilliest ever November reading on Sunday at minus 18C, was a bit warmer on Monday at minus 12.9C. Forecasters warned that the rest of the country is likely to be blanketed this week. The severe conditions could also last well into next week, with rain, sleet and snow. Brendan Jones, senior forecaster with MeteoGroup, said snow would be moving south across the UK with many areas starting on Tuesday morning with a covering of snow. "We now have snow showers further south, parts of East Anglia, even down into Kent are seeing snow showers at present, even into the East Midlands," he said. "The snow shower risk is expanding further south and a little bit further west as well but not getting into Wales at the moment. The only exception is the far south-west tip of Cornwall which is seeing some hail and snow. " The AA said there had been "unprecedented" demand for its services compared to a normal Monday in November, with around 12,400 calls for assistance, coming in at more than 2,100 every hour.

G20 Pc set for misconduct hearing

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Image A police riot squad officer who escaped prosecution over Ian Tomlinson's death during the G20 protests has been served with gross misconduct allegations. Pc Simon Harwood will be accused of hitting the newspaper seller with his baton and pushing him to the ground in actions that "inadvertently caused or contributed" to his death on April 1 last year. He will also be accused of using force that "was not necessary, proportionate or reasonable in the circumstances", and the Independent Police Complaints Commission (IPCC) is consulting on whether to hold the misconduct hearing in public. Deborah Glass, IPCC deputy chairwoman and Commissioner for London, said: "From the moment the video was published to the world in April 2009, there has been an overwhelming public feeling that the officer seen to strike Ian Tomlinson should be held accountable for his actions. "I have agreed with the Metropolitan Police Service that the officer should face an allegation of gross misconduct, in that he struck and pushed Ian Tomlinson on April 1 2009, such dangerous actions inadvertently causing or contributing to his death. The officer has been served with the papers to allow the hearing to be held." She went on: "Because of the gravity and exceptional circumstances of this case, I consider that it may be in the public interest for me to direct that the hearing be held in public. I have therefore begun the required process of consulting the necessary parties. These include the Tomlinson family, the officer himself and any witnesses, before I make a decision." The allegations against Pc Harwood state that he struck Mr Tomlinson on his left thigh with his baton, and that he pushed him to the ground. They also state that such "dangerous" actions inadvertently caused or contributed to the man's death.

RSPCA challenges £2m will ruling

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Image The RSPCA has challenged a ruling which overturned a will leaving it a £2 million estate. University lecturer Christine Gill, from Northallerton, North Yorkshire, won a High Court battle last year to overturn the will which left her parents' 287-acre farm to the charity. In a ruling given in Leeds, a judge found that Dr Gill's "domineering" father had coerced her mother into making the will. But the findings of Judge James Allen QC have been appealed against by the RSPCA during proceedings before the Master of the Rolls, Lord Neuberger, sitting with Lord Justice Lloyd and Lord Justice Jackson in London. Elspeth Talbot Rice QC, for the RSPCA, told the court that one of the issues for decision was whether the judge was "wrong to find that Mr Gill unduly influenced Mrs Gill into executing her will". Another question was whether the judge was "wrong to find that Mrs Gill knew and approved of her will". Judge Allen said it would be "unconscionable" if Dr Gill did not inherit Potto Carr Farm, near Northallerton, where she voluntarily helped out during her spare time over a period of more than 30 years. Mr Gill died in 1999, aged 82. It was only when her mother died in 2006, also aged 82, that Dr Gill saw the will, in which her parents had left the farm to each other and then to the RSPCA when both died. The judge found that Dr Gill's mother had wanted her daughter to inherit the farm but Mr Gill - who he described as a "bully" - had exerted pressure over his wife to favour the RSPCA. The appeal is being closely watched by other charities who say they are "very concerned at its possible implications for the charity sector". The RSPCA said in a statement: "The Gills had already provided substantially for their daughter during their lifetime, which included a large contribution towards the purchase of the farmhouse in which she now lives. The RSPCA carefully considered the merits of its action before taking the decision to defend Dr Gill's claims and subsequently to appeal in order to honour Mrs Gill's wishes."

US seeks to limit WikiLeaks damage

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Image The US has been forced into damage control mode by the WikiLeaks release of more than 250,000 classified government documents revealing unflattering assessments of world leaders and revelations about secret American diplomacy. Their publication increased widespread global alarm about Iran's nuclear ambitions and unveiled occasional US pressure tactics aimed at hot spots in Afghanistan, Pakistan and North Korea. The leaks also disclosed bluntly candid impressions from both diplomats and other world leaders about America's allies and foes. In the wake of the massive document dump by online whistleblower WikiLeaks and numerous media reports detailing the contents of the diplomatic cables, US Secretary of State Hillary Clinton was expected to address the diplomatic repercussions. She could deal with the impact first hand after she leaves Washington on a four-nation tour of Central Asia and the Middle East - regions that figure prominently in the leaked documents. The cables unearthed new revelations about long-simmering nuclear trouble spots, detailing US, Israeli and Arab world fears of Iran's growing nuclear programme, American concerns about Pakistan's atomic arsenal and US discussions about a united Korean peninsula as a long-term solution to North Korean aggression. None of the disclosures appeared particularly explosive, but their publication could become problematic for the officials concerned and for any secret initiatives they had preferred to keep quiet. The massive release of material intended for diplomatic eyes only is sure to ruffle feathers in foreign capitals, a certainty that already prompted US diplomats to scramble in recent days to shore up relations with key allies in advance of the leaks. The documents published by The New York Times, France's Le Monde, Britain's Guardian , German magazine Der Spiegel and others laid out the behind-the-scenes conduct of Washington's international relations, shrouded in public by platitudes, smiles and handshakes at photo sessions among senior officials. Downing Street condemned the leaks, which it said were damaging to national security in Britain and the US: "It's important that governments are able to operate on the basis of confidentiality of information," a spokesman said. Downing Street officials had been briefed by the US Ambassador on the content of the cables, the spokesman said, and Britain remained "in close contact" with the US. The White House immediately condemned the release of the WikiLeaks documents, saying "such disclosures put at risk our diplomats, intelligence professionals and people around the world who come to the US for assistance in promoting democracy and open government". Pakistan criticised the WikiLeaks release for highlighting concerns that enriched uranium could be diverted from its nuclear programme to build a secret weapon. The documents could prove embarrassing for other countries allied with Pakistan as well - the king of Saudi Arabia reportedly called Pakistani President Asif Ali Zardari the greatest obstacle to the country's progress. "When the head is rotten, it affects the whole body," he is quoted as saying, although a Pakistani official played down the reported comments.

BA man denies terrorism charges

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Image A British Airways computer expert alleged to have offered himself as a suicide bomber has appeared in court to deny terrorism charges. Rajib Karim, 31, of Newcastle upon Tyne, remains in custody and is due to go on trial on January 24 at Woolwich Crown Court in south-east London. Bangladesh-born Karim appeared via videolink at the Old Bailey on Monday where he pleaded not guilty to two charges of preparing for terrorism. Each count covers the period from April 13, 2006 to February 26, 2010 and includes the allegation that he "offered to be a martyr or suicide bomber". The first charge alleges that he engaged in conduct in preparation of terrorism, with the intention of committing acts of terrorism, including that he "incited the giving of permission to carry out terrorist acts in the United Kingdom". Karim is also said to have offered to travel to Yemen or Pakistan to carry out terrorism training, and to have advised about potential recruits to commit terrorist acts in the UK. Also among the conduct said to form part of the allegation was that he stayed in the UK long enough to obtain a British passport. It is further claimed that he "advised and counselled the commission of terrorist acts by providing information" on topics such as liquids allowances on planes, airport security and scanners, and immigration questions to travellers. He was also said to have provided details on BA computers and their vulnerability to a physical or "internal systems" attack to inflict financial loss. Information was also alleged to have been provided on the opportunity to obtain cabin crew training, information, experience and aeroplane access and "inside knowledge". Karim is additionally accused of giving advice about working for BA and obtaining a British passport. The second charge alleges preparing terrorism to assist another to commit terrorist acts, which includes some claims similar to the first count, as well as the accusation that he asked for, collected and sent money for terrorism.

Number of approved mortgages falls

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Image The number of mortgages approved for house purchase fell for the sixth month in a row during October as buyers continued to stay away from the property market. Only 47,185 loans were approved for people buying a property during the month, the lowest level since February, according to the Bank of England. The subdued level of transactions, which is well below the 70,000 to 80,000 approvals a month which are considered to be consistent with a stable market, will continue to put downward pressure on house prices. The figures come as property intelligence group Hometrack said house prices fell for the fifth consecutive month during November as the number of people looking to buy a property dropped at its fastest pace for nearly two years. Activity in the housing market has fallen sharply in recent months as potential buyers wait until the outlook for both house prices and the wider economy is clearer, while those who want to go ahead with a purchase are continuing to struggle to raise the mortgage finance they need. The shortage of buyers, combined with sellers continuing to put their properties on to the market, has triggered a fresh round of house price falls. Howard Archer, chief UK and European economist at IHS Global Insight, said: "The Bank of England mortgage approvals data shows that housing market activity remains marooned in the doldrums, which seems highly likely to maintain downward pressure on prices. The data reinforces our belief that house prices will trend down to lose around 10% from their peak 2010 levels by the end of 2011." Vicky Redwood, senior UK economist at Capital Economics, said: "October's UK household borrowing figures provide yet further evidence of the troubles in the housing market. With housing market activity this weak, we suspect that the recent house price falls have much further to go." There was a pick-up in net lending, which strips out redemptions and repayments, during October, with this rising to £1.25 billion, up from £246 million in September, although it was still below August's figure and well down on the long-term average. There was also a slight increase in the number of people remortgaging to a new deal during the month, at 29,275. Unsecured borrowing rose by £287 million during October, the biggest monthly jump since May, but only a fraction of lending of more than £2 billion a month regularly seen during the earlier part of the decade.

Review call after WikiLeaks release

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Image The US has ordered a sweeping review of access to sensitive government information in the wake of the massive and potentially embarrassing WikiLeaks release of more than 250,000 classified documents. The State Department memos, reflecting in some cases unflattering assessments of world leaders left the administration feeling vulnerable. Publication of the secret memos and documents also increased widespread global alarm about Iran's nuclear ambitions. And it revealed occasional US pressure tactics aimed at hot spots in Afghanistan, Pakistan and North Korea. The leaks disclosed bluntly candid impressions from both diplomats and other world leaders about America's allies and foes. It was, said Italian foreign minister Franco Frattini, the "September 11 of world diplomacy". In the aftermath of the massive document dump by online whistle-blower WikiLeaks and numerous media reports detailing their contents, Secretary of State Hillary Clinton was expected to address the diplomatic repercussions. Mrs Clinton may have to confront the fallout first hand after she leaves Washington on a four-nation tour of Central Asia and the Middle East - a region that figures prominently in the leaked documents. The encrypted emails and other documents unearthed new revelations about long-simmering nuclear trouble spots, detailing US, Israeli and Arab world fears of Iran's growing nuclear programme, American concerns about Pakistan's atomic arsenal and US discussions about a united Korean peninsula as a long-term solution to North Korean aggression. None of the disclosures appeared particularly explosive, but their publication could become problematic for the officials concerned and for any secret initiatives they had preferred to keep quiet. The massive release of material intended for diplomatic eyes only is sure to ruffle feathers in foreign capitals, a certainty that already prompted US diplomats to attempt in recent days to shore up relations with key allies in advance of the leaks.

Yorkshire Ripper seeks term review

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Image Yorkshire Ripper Peter Sutcliffe is to challenge a High Court judge's order that he can never be released. Mr Justice Mitting announced his decision in London on July 16, ruling that the serial killer of 13 women must serve a "whole life" tariff. His case will be heard on Tuesday at the Court of Appeal by the Lord Chief Justice, Lord Judge, Mr Justice Calvert-Smith and Mr Justice Griffith Williams. Now known as Peter Coonan, the former lorry driver, from Bradford, West Yorkshire, was convicted at the Old Bailey in 1981. Sutcliffe, now 64, received 20 life terms for the murder of 13 women and the attempted murder of others in Yorkshire and Greater Manchester. Mr Justice Mitting, when giving his ruling, said the murderer had caused "widespread and permanent harm to the living". He said: "This was a campaign of murder which terrorised the population of a large part of Yorkshire for several years. The only explanation for it, on the jury's verdict, was anger, hatred and obsession." He said he had read statements by relatives of six murdered victims: "They are each moving accounts of the great loss and widespread and permanent harm to the living caused by six of his crimes. I have no doubt that they are representative of the unspoken accounts of others who have not made statements. None of them suggest any term other than a whole life term would be regarded by them as appropriate." He said he had no doubt that the "appropriate minimum term is a whole life term". Sutcliffe is being held in Broadmoor top security psychiatric hospital after being transferred from prison in 1984 suffering from paranoid schizophrenia. It was on July 5, 1975, just 11 months after his marriage, that he took a hammer and carried out his first attack on a woman. Sutcliffe is said to have believed he was on a "mission from God" to kill prostitutes - although not all of his victims were sex workers - and was dubbed the Yorkshire Ripper because he mutilated their bodies using a hammer, a sharpened screwdriver and a knife. The primary submission made on behalf of Sutcliffe was that the degree of his responsibility "was lowered by mental disorder or mental disability". The diagnosis of psychiatrists who considered his mental condition was that he was "suffering from encapsulated paranoid schizophrenia when he committed the crimes and that his responsibility for the 13 killings was, in consequence, substantially diminished". But the judge said: "These propositions were, however, unquestionably rejected by the jury." He ruled: "It is not, in my opinion, open to a judge, setting a minimum term, to go behind the verdict of the jury by concluding that, although the defendant's responsibility was not proved to have been substantially diminished, he should be given the benefit of the doubt for the purpose of setting the minimum term, by concluding that it might have been." It was the opinion of psychiatrists that Sutcliffe "suffers from a chronic treatable mental illness for which he has been willing to accept appropriate treatment, which has successfully contained it for many years".

Government warned over bank system

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Image Britain has the most "profoundly dysfunctional banking system" of any G7 country and must be overhauled, the Government has been warned. Labour former minister Michael Meacher criticised the UK's banking model, which links "speculative investment with retail deposit-taking", citing this as a major cause of the economic crisis. He also hit out at "extreme light touch regulation" of financial institutions that "left too much to the markets". Opening a backbench-led debate on banking reform, Mr Meacher told ministers: "At present Britain has, and I don't think this is an exaggeration, the most profoundly dysfunctional banking system of any G7 country, and it came nearer to collapse than any other in the autumn of 2008. "I believe we need to break up the mega banks with their addiction to mortgage lending. "We need smaller banks, we need in particular specialist business banks, infrastructure banks, housing banks, green banks, creative industries banks, and all the others. "Only this kind of fundamental reform of the banking system can provide the foundations for the economic and social transformation of this country which we all want." He said the financial crisis was caused by various factors including an "overlax" monetary policy, the development of credit derivatives, a banking structure which allowed banks to be "too big to fail", and the role of "enormous bonuses which drove the recklessness". Mr Meacher (Oldham W and Royton) called for a separation of investment banks from retail banks, warning that the taxpayer guarantee on retail deposits currently provided "collateral" for financial trading. "The crux of this model is that the withdrawal of the taxpayer guarantee would be a sufficient deterrent to protect investment banks engaging in highly risky investment which might collapse with serious and far-reaching consequences for the national economy," he said,

BA cabin crew to vote over strike

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Image Thousands of British Airways cabin crew are to be balloted for fresh strikes in their bitter dispute with the airline, threatening disruption to flights in the new year. Unite accused the company of continuing with its "vicious war" against the workforce, saying it had "no choice" but to give its members another vote on whether to continue with industrial action. The move came just hours after shareholders of BA and Spanish carrier Iberia voted in favour of a £5 billion merger of the two airlines. BA accused Unite of breaking a promise on an agreement last month to end the 14-month dispute, saying the new ballot would create "fresh uncertainty" for customers and damage the interests of thousands of workers at the airline. Tony Woodley, joint leader of Unite, said the union was making sure its membership records were up-to-date before starting the new strike ballot so it could avoid a repeat of legal action by BA a year ago which led to the union calling off planned strikes over Christmas. He added that Unite had accepted an invitation from the conciliation service Acas to hold talks with BA next Monday. Balloting is set to start in the next few weeks, with the result due in early January, so that strikes could be held from mid-January. Cabin crew have taken 22 days of strike action this year, costing the airline more than £150 million, in a dispute which started over cost savings but developed into a row over staff travel concessions withdrawn from those who took action as well as disciplinary action. Mr Woodley said: "BA told us it was a business in crisis. They demanded structural change. These changes have been made and this business is now in profit with senior management filling their wallets with the spoils." A BA spokesman said: "Tony Woodley shook hands with us on an agreement in October and said he would let cabin crew vote on the deal with a recommendation for acceptance. Unite has broken this promise and instead has now chosen to create fresh uncertainty for customers and damage the interests of thousands of its own members within British Airways."

Ban remains on women's combat role

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Image A ban on women serving in close-combat roles in the armed forces is to remain in place. New research failed to allay concerns about the potential impact of introducing female personnel into small frontline fighting units, the Ministry of Defence (MoD) said. Ministers and forces chiefs felt there would be "potential risks" to "cohesion" from scrapping the exclusion of women from such ground combat roles, according to a review . "Their capability in almost all areas is not in doubt, they win the highest decorations for valour and demonstrate that they are capable of acting independently and with great initiative," the review stated. "But these situations are not those typical of the small tactical teams in the combat arms which are required deliberately to close with and kill the enemy. "The consequences of opening up these small tactical teams in close-combat roles to women are unknown. Other nations have very mixed experiences." The decision was "not based on a stereotypical view of women's abilities but on the potential risks associated with maintaining cohesion in small mixed-gender tactical teams engaged in highly dangerous close-combat operations," it added. Because of the ban, women cannot serve in the Royal Marines general service, the Household Cavalry and Royal Armoured Corps, the Infantry or the Royal Air Force Regiment. The review of the policy was the first since 2002 and was required under European law. Defence personnel minister Andrew Robathan said he and the service chiefs agreed that women were "fundamental" to the armed forces.

Trio in court over honeymoon murder

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Image Three men accused of kidnapping and murdering a woman on her honeymoon have appeared in court in South Africa. Anni Dewani, 28, from Westbury-on-Trym, Bristol, was shot dead after gunmen hijacked her and husband Shrien's taxi on November 13 as they were travelling through the Gugulethu township in Cape Town. Mr Dewani and the driver of the car, Zola Tonga, 31, from Bothasig, were forced from the car and flagged down a motorist for help. Mrs Dewani's body was discovered in the abandoned car the next day. Xolile Mngeni, 26, from Khayelitsha, Tonga, from Bothasig, and Mzwamadoda Qwabe, 26, from Khayelitsha, appeared at Wynberg Regional Court in Cape Town. The trio face charges of murder, robbery with aggravating circumstances and kidnapping. They are alleged to have robbed Mrs Dewani of her expensive wristwatch, a white-gold and diamond bracelet, her handbag and her mobile phone. The case was adjourned until December 6. The Dewanis had only been married for a fortnight when they were attacked. Mr Dewani, 31, was said to be in a "dreadful state" following the attack and is now receiving medical assistance to help him deal with the trauma. A South African police spokesman refused to comment on the hearing.

UK recovery plan working: Osborne

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Image The latest forecast by the UK's tax and spending watchdog shows the Government's plan to tackle the deficit is working, Chancellor George Osborne has said. Mr Osborne said the Office for Budget Responsibility's assessment was that there "will be no double-dip recession", with "considerably higher" growth this year than predicted in June. In a Commons statement, he announced that from April 2013 there will be a new lower 10% rate of corporation tax on profits from newly commercialised patents to encourage hi-tech business. He told MPs the move had prompted a £500 million investment from pharmaceuticals giant GlaxoSmithKline which would create an estimated 1,000 new jobs. The Chancellor also announced the publication of a "significant programme of corporate tax reforms" for consultation aimed at attracting international investment and business. The OBR - formed in May to make an independent assessment of public finances and the economy - slashed its projections for public sector job cuts over the next four years from 490,000 to 330,000. The watchdog's forecast, which will provide the fiscal framework for the Government's next budget in March, raised estimates for GDP growth in 2010 from 1.2% to 1.8%, but lowered growth in 2011 and 2012 from 2.3% to 2.1% and from 2.8% to 2.6% respectively. Mr Osborne told MPs: "After the deepest recession since the war, the greatest budget deficit in our peacetime history and the biggest banking crisis of our lifetimes, recovery was always going to be more challenging than after previous recessions. "But the message from the Office for Budget Responsibility is that Britain's economic recovery is on track. The economy is growing, more jobs are being created and the deficit is falling. "Their central forecast is for sustainable growth of over 2% for each of the next five years and employment rising in each and every year."
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