Money

'No alternative' to Royal Mail plan

Press Association — 2013-05-21T12:00:00+00:00

Filed under: News

Business Secretary Vince Cable has insisted there is "no alternative" to controversial plans privatising the Royal Mail.

The organisation faces a "fundamental threat" from email and must be reformed in order to survive, the Liberal Democrat insisted.
But unions have warned that services will go into decline if the business is sold off.

Dave Ward, deputy general secretary of the Communication Workers Union, whose members will be balloted on the proposals this week, claimed loopholes would allow the universal service obligation to be eroded.
"There are opportunities for them to down dial the terms of the universal service in the future," he told BBC Radio 4's Today programme. "People who live in the suburbs, people who live in rural areas, people who live in villages will not get the same service under a private company."

It comes as Royal Mail is expected to announce results that show a significant increase in profits.

Mr Cable told the programme: "There is no alternative. The point is that it is not this particular government adopting an ideological position.

"We are following in the footsteps of the last government that recognised that certain things had to happen in order for Royal Mail to survive because it is faced with a fundamental threat to its business from email."

Mr Cable said around 10% of shares should go to the work force. "It isn't a bribe, but it gives them a stake in the ownership," he added.

The National Federation of SubPostmasters said the plans should be postponed to prevent an "even deeper crisis" for Britain's post offices. It is concerned that a privatised Royal Mail would not feel obligated to keep services with the Post Office network.

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Grayling defends legal aid reforms

Press Association — 2013-05-21T11:30:00+00:00

Filed under: News

Justice Secretary Chris Grayling has endured attacks from MPs on both sides of the Commons over the Government's controversial legal aid reforms.

On the day a Bar Council poll showed seven out of 10 people in England and Wales were worried that cuts to legal aid could lead to innocent people being convicted of crimes, shadow justice minister Robert Flello asked whether miscarriages of justice were a price worth paying for the reforms.
Responding during justice questions, Mr Grayling said: "I still don't think that the Opposition understands the nature of the financial mess they left behind and what we have to do to balance the books.

"I also think that the public expect me to do what I can to maintain a strong prison system, a strong court system, but also to have a legal aid system that provides justice but that is also affordable and that is what we are doing."
The reforms to the Legal Aid, Sentencing and Punishment of Offenders Act (Laspo) will help the Government cut its £2.2 billion legal aid bill by £350 million. A Government consultation on legal aid is also ongoing, which paves the way for lawyers to compete for contracts among other reforms.

Several MPs voiced concerns about a small number of businesses taking control of most of the contracts, saying quality would be driven down.

Senior Liberal Democrat Sir Alan Beith, MP for Berwick upon Tweed, said there would be no incentives for firms who won contracts to keep standards high, while Labour's Meg Hillier, MP for Hackney South and Shoreditch, warned that some lawyers would prove too expensive for the Government.

Mr Grayling said: "I have absolutely no intention of ending up with a legal aid market which is dominated by a small number of very large firms. And a central part of the tendering process will involve a quality threshold that ensures that we have the quality of advocacy and the quality of litigation support in this country that we need and expect."

Tory former lawyer Anne McIntosh, MP for Thirsk and Malton, warned that the reforms would mean young barristers would have less access to the profession.

Mr Grayling said: "We have taken care during these proposals to put together a package based on our statistical analysis that we think will actually protect incomes at the lower end of the bar particularly. It is my intention that where we have to impose changes on the profession that they come through either through the re-organisation of business or income changes at the top end of the scale."

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Inflation drop bigger than expected

Press Association — 2013-05-21T11:00:00+00:00

Filed under: News

Falling prices at the petrol pumps led to a bigger-than-expected drop in inflation in April, the first easing in the annual rate of price rises for six months.

The Office for National Statistics (ONS) said consumer prices index (CPI) inflation dipped to 2.4% in April, from 2.8% in March, as lower fuel costs and air fares pushed overall transport prices down for the first time in almost four years.
But the temporary dip in inflation triggered by weaker commodity prices will do little to ease the financial pain on households, with inflation expected to spike above 3% in the summer.

The pace of the fall surprised economists, who had expected CPI inflation to edge down to about 2.7% in April.
Howard Archer, economist at IHS Global Insight, said: "April's marked drop in inflation to a seven-month low of 2.4% is very welcome news, providing significant relief for both consumers and the Bank of England." But Alan Clarke at Scotiabank said while it was a "big downward surprise", much of the fall is likely to be temporary.

The Treasury said it was "good news for families and businesses", adding the economy is "healing".

Plunging global commodity markets have hit the price of Brent crude oil in recent weeks, driving petrol and diesel costs lower. Petrol prices fell by 2.1p over the month to 136.4p a litre compared with a 3.2p rise a year earlier. Diesel was 3.9p lower to 141.7p per litre, compared with a 2.1p rise a year ago. Air fares fell by 6.4% on a month earlier, compared with a rise of 7.4% a year earlier.

The only notable upward effect came from food and non-alcoholic drinks. Prices rose by 0.7% on the month, compared with a 0.1% fall a year earlier, as farmers pushed through price rises after the freezing winter ruined crops.

CPI inflation fell for the first time since last autumn, but is expected to provide only a temporary respite for households as rising gas, water and electricity bills feed through to households over the summer.

At 2.4%, it far outstrips wage rises which grew at just 0.4% in the first quarter versus a year earlier. Inflation has remained stubbornly above the Bank of England's 2% target since December 2009.

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Pensioner couple blows £60k on rollercoasters

Sarah Coles — 2013-05-21T10:54:00+00:00

Filed under: Retirement

Denis and Sylvia Bloor (aged 74 and 64), a couple from Tregurrian in Cornwall, have revealed that they have spent £60,000 visiting theme parks across Europe and the US, racking up 250 rollercoasters since 1994.

But why, and is this a ridiculous waste of money or money well-spent?

Rollercoasters

According to a report in the Daily Mail, the couple are the oldest member of the Rollercoaster Club of Great Britain. They first visited Alton Towers in 1994, and claim it was enough to get them hooked.

Among the strange statistics they have racked up is 4,000 rides on Nemesis at Alton Towers. They have also spent 1,000 days in over 40 theme parks. They travel to the US once a year for a three-week tour of the theme parks.

However, they're not keen on water rides.

Is it a waste?

It sounds like an extraordinary sum of money to spend on rollercoasters, but it's not so extreme when you consider that it's their main hobby, and their annual holiday, and it has been for almost 20 years.

Being a member of the club also means they can travel with an interesting group of people, and make new friends around the world. They put on special events, which makes visiting the same park several times seem more entertaining.

Assuming they can find a travel insurer who covers theme parks, and has no age limits, and assuming they both meet the health requirements for each ride, then they're not taking any particular risks, so why not?

Better than golf?

Put into perspective, spending £1,500 each a year on something that brings them so much joy doesn't sound so bad. Sylvia claims it keeps them young, and that the endorphins ease her arthritis.

How does it compare to other retirement hobbies?

There are plenty of people who spend far more on a golf club membership and the associated kit. Given that the average membership fee for a man is £706, and the average joining fee is £746, in the first year the costs are roughly the same - even before you step onto the course. If you add in the clubs, kit, green fees, lessons and tournament fees, the costs quickly add up.

Alternatively, some couples opt for travel as their retirement luxury. Even travelling off-peak and using every trick in the book to bring the cost down, it's easy to spend this money seeing the world. With a certain amount of scrimping and saving, they could backpack around half the planet in 20 years on this budget. However, with a modicum of comfort, just one cruise each year would wipe this budget out.

Of course, there are cheaper options. If you joined a gym, even if you squandered a small fortune on kit, you'd struggle to spend more than £1,000 a year. Meanwhile cooking, socialising and gardening are virtually cost-neutral. And if you choose to keep your brain more active with some light part-time work, your retirement hobby could even be a money-spinner.

But what do you think? Have the Bloors found the best way to spend their cash in retirement, or are those rides over in seconds and the cost too much to make sense?

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easyJet slims down hand luggage allowance

lovemoney.com — 2013-05-21T10:30:00+00:00

Filed under: Holidays

From July easyJet will limit the size of the hand luggage that will be guaranteed a spot in the cabin.

In the battle between budget airlines, no stone is left unturned to find ways to cut costs.

The latest shot in this war in the skies comes from easyJet, which is to reduce the size of hand luggage with effect from Tuesday 2nd July.

Baggage allowance cut by 37%
At present, easyJet allows luggage to be taken into the aircraft cabin if it is below the maximum size of 56cm by 45cm by 25cm. This gives a total volume of 63 litres for a single onboard bag.

But from 2nd July, these dimensions will be slimmed down to 50cm by 40 cm by 20cm (including wheels, pockets and handles). This gives a total volume of 40 litres, which is a loss of 23 litres of luggage space. In effect, easyJet has cut its allowance for hand luggage by more than a third (36.5%).

easyJet's argument for this change is simple. By introducing this new 'cabin bag guarantee', it promises that passengers with qualifying bags can take them into the cabin. This will apply even on the busiest flights, when overhead locker space is limited. Under this guarantee, onboard bags will be placed in overhead lockers or under the seats in front.

You may still be able to take bags that meat the old limit onboard as hand luggage. However it's not guaranteed, and it may be checked into the hold if the flight is busy and there is little space. While this will not incur a charge, it does mean that you will have to queue to retrieve your bag from the baggage carousel on arrival.

As before, a handling charge of £25 applies for cabin bags exceeding the maximum size of 56cm by 45cm by 25cm, rising to £40 at the boarding gate.

Cabin baggage will be checked for size with a new baggage gauge at bag-drop desks and again at boarding gates. easyJet's definition of a cabin bag includes a bag, briefcase, suitcase, laptop case, handbag, bumbag, rucksack, carrier bag or wedding-dress carrier. Infants travelling on an adult's lap don't get a cabin-bag allowance

The airline explains its new rules regarding cabin baggage in more detail on its website.

Buy your travel insurance before you fly and save - compare prices here

How to avoid this restriction
In theory, easyJet should enforce this new 'cabin bag guarantee' only when flights are full and cabin space is limited. However, in practice, it could apply this restriction to any and all flights.

That said, there are several ways that you can avoid this new restriction. The obvious answer is to keep within the new limits by making sure that your bag measures less than 50cm by 40 cm by 20cm.

Sadly, of 21 cabin suitcases recently tested by Which? magazine, only three would meet these reduced dimensions. In other words, around six-sevenths (85.7%) of cabin suitcases would not be guaranteed a spot in the cabin for easyJet flights from 2nd July. This is a huge - and likely deliberate - inconvenience to British travellers, lessened only by the news that manufacturers including Samsonite and Tesco already make bags that fit easyJet's 'guaranteed' size.

Passengers who are easyJet plus cardholders, or FLEXI fare, easyJet plus Upfront or Extra Legroom customers can continue to bring one piece of cabin baggage no bigger than 56cm by 45cm by 25cm, thus avoiding this new restriction. They can also use easyJet plus Speedy Boarding to board first and bag what space is available in overhead lockers.

Cynics - like me - might suggest that this new rule is simply a way to push travellers into signing up to one of these days, thereby boosting easyJet's profits.

How easyJet compares
In the fight for low-cost flights, no-one beats Irish budget airline Ryanair. Famous for its penny-pinching ways, Ryanair's maximum dimensions for cabin luggage are currently 55cm by 40cm by 20cm (44 litres).

Then again, after easyJet's 40-litre limit takes effect, Ryanair's baggage allowance of 44 litres will be a tenth (10%) more generous than easyJet's. Frankly, I can see Michael O'Leary, Ryanair's billionaire boss, following suit perhaps in time for the summer surge in travellers.

At 'the world's favourite airline', British Airways, the free allowance for cabin baggage is restricted to one piece of luggage measuring no more than 56cm by 45cm by 25cm (plus one laptop-sized bag, handbag or briefcase). Although these are the same as easyJet's maximum dimensions (a volume of 63 litres), BA has a weight limit of 23kg, while the bright-orange brand has none.

With Virgin, if you are flying enconomy or premium economy you can take on a bag measuring no more than 56cm by 36cm by 23cm and weighing no more than 10kg.

Avoid foreign exchange fees on your holidays with these credit cards

The five worst holiday disasters

Your travel plans fall through
If you are a victim of a strike, or any other event beyond the airline's control (including ash clouds!), they must offer you a refund (in which case it's up to you to find a way home) or an alternative flight. While you are waiting for the flight you have the right to food and refreshment and accommodation.

If you are on a package holiday, your tour operator is entirely responsible for looking after you until you get back to the UK.
Your airline goes bust
This is more likely to happen due to the financial crisis, but in some situations you are covered.

If you pay by credit card and it's over £100, you'll get a refund from the card company.

Your travel insurance may well cover you too, but check before you go.
Your luggage goes astray
Talk to the airline, and if it is temporarily misplaced they should arrange for it to be sent to your accommodation, and you should be either given cash to cover the essentials in the interim.

If it's completely lost you must wait 21 days and then make a claim for compensation. If you are travelling as part of a package you can claim costs from your operator.
You get sick
If you are travelling within the EU you need an EHIC card, which gives you access to public healthcare. However, this won't necessarily be free, and if you need extra services such as accommodation for a carer, a helicopter home or a delayed flight, you could end up seriously out of pocket.

The only protection that will guarantee you will be looked after without running up a horrendous debt is by having travel insurance - which often covers up to £10 million of costs.
You are robbed
The most common form of theft is pick-pocketing, followed by theft from a car and bag snatching. Meanwhile, 752,000 of those surveyed had items stolen from their hotel room or villa.

If you have anything stolen, your only protection is insurance. You need to tell the local police immediately and get a crime reference for your travel insurer.

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PM 'did not raise Google tax row'

Press Association — 2013-05-21T10:00:00+00:00

Filed under: Tax

Google's controversial tax affairs were not raised by David Cameron when the internet giant's boss joined Downing Street talks about tackling avoidance schemes, Number 10 said.

The Prime Minister used the quarterly meeting of his Business Advisory Group to urge big firms to back his push for international action to crack down on the use of tax havens.
But he did not directly raise MPs' fury about the sums Google pays in the UK with the search engine's executive chairman Eric Schmidt - who is a member of the high-level panel - or hold any separate talks with him.

The California-based firm was last week branded devious, calculating and unethical over efforts to shelter its multibillion-pound profits from UK taxes, during a stormy hearing before the Commons Public Accounts Committee.
Mr Cameron plans to use the G8 summit being hosted by the UK in Northern Ireland next month to push for co-ordinated global action to tackle "the scourge of tax evasion and aggressive tax avoidance".

A Downing Street source said that during the discussions - the details of which are not usually disclosed - the premier "did take the opportunity to set out his G8 agenda on tax and transparency".

He said he "hoped people would support the reforms he was proposing" and that businesses should pay the tax they owed but his comments were "not directed at anyone specifically". Number 10 said there was "broad agreement" that any action would need to be taken on a multilateral approach.

Labour leader Ed Miliband pledged at the weekend to write new rules to tackle corporate tax dodgers if he wins the next election, even if there is no international consensus for action.

Mr Schmidt was said to be among those who backed Mr Cameron's G8 approach.

Ahead of the meeting, the Prime Minister wrote to the leaders of Britain's offshore tax havens stressing the need to "get our own houses in order". In a message to 10 crown dependencies and British overseas territories Mr Cameron said he backed their right to be low tax jurisdictions but insisted that rules needed to be set and enforced fairly. The Prime Minister's letter calling for more transparency about tax information and the ownership of companies was sent to leaders in Bermuda, the British Virgin Islands, the Cayman Islands, Gibraltar, Anguilla, Montserrat, the Turks and Caicos Islands, Jersey, Guernsey and the Isle of Man.

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New solution for leftover currency: is it a good deal?

Sarah Coles — 2013-05-21T09:41:00+00:00

Filed under: Holidays

It's impossible to judge exactly how much travel money you'll need when you go away. No matter how careful your planning, there's always a handful of euros or dollars kicking about in a drawer somewhere. In fact, the average person has about £59.40 of unused currency at home.

Now Debenhams has come up with a cunning solution. But is it any good?

Unused cash mountain

The department store says that 97% of people who went overseas last year still have some currency left over. In fact, between us we're sitting on £2.1 billion in unused currency. The most popular currency to have lying around is the Euro, which 69% of us have stashed away in our homes. This is followed by the US Dollar (24%) and Egyptian Pound (6%).

The research found that the average UK traveller would have to come back from holiday with £84.50 worth of currency before they would be inclined to change it back to sterling. This rises to £120.70 among Londoners, but falls to £54.60 for those from Scotland.

One in five (19 per cent) said that they have never changed their money back - they simply find other ways to 'get rid of it', with men being much more likely to change their money back than women.

New solution

Its solution is the new Debenhams Buyback Gift card. The idea is that you take your currency into a store where it is changed back into sterling and then loaded onto a gift card which you can use to spend in Debenhams. The bonus is that you get an additional 10% on top of any money you load on.

So is it a good idea?

Debenhams says that its exchange rate is very competitive. If, for example, you exchanged $100 on 15 May, you would get £60.79 in sterling, plus the bonus, which brings it up to £66.87.

According to Moneysavingexpert's comparison tool, you could go to an online provider and get up to £65.62 for $100 cash. (That's the rate today, but overall the dollar to pound ratio is roughly where it was on 15 May). However, if you went to a high street bank, you'd get roughly the same as the Debenhams deal before the bonus: £60.36.

Whether the Debenhams deal works for you, therefore, depends on whether you need something specific from Debenhams (and you are sure that Debenhams is the most competitive retailer for what you're buying). If you intend to spend at Debenhams anyway then you can get marginally more for your money in this particular instance, making it well worth considering. Of course, it's essential that you check your currency at the time you intend to change it to see if Debenhams is still competitive.

If you're not after something specific from Debenhams, then having a gift voucher for £66.87 that you don't need is no better than having $100 that you cannot use. In that case, it may well be better to exchange your cash through an online provider. You may get very marginally less, but you'll get it in cash, which gives you flexibility.

But what do you think? Would you use it? Let us know in the comments.

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Do these 20 things and you'll always be poor

lovemoney.com — 2013-05-21T09:30:00+00:00

Filed under: Loans

Staying solvent is tough enough without throwing money away by making silly financial mistakes. If you do the following, you will always be poor.

1) Spend now, pay later
Don't throw your money away when you're young, assuming you'll be richer when you're older. People in their 40s and 50s actually have the most financial problems, according to Halifax, with one in five so stretched their budgets would snap if they had to find an extra £24 a month. Enjoy your financial freedom when you're young, but don't squander it.

2) Fail to save
Too many people claim they can't afford to save while blowing their cash on gadgets they don't need, clothes they never wear, digital TV channels they can't find and nights out they regret in the morning. Set up a savings direct debit, so you don't notice the money leave your account. Then have fun with what's left.

See the latest savings rates

3) Only pay the minimum on your credit card
Say you owe £5,000 on a credit card at an APR of 18.9%. If you only make the minimum repayment every month (either 2% or £5), you will take an incredible 50 years and nine months to clear that debt, and pay £12,182 in total interest.

Pay off your debts for less with a 0% balance transfer credit card

4) Miss a monthly payment
Missing a single mortgage, credit card, loan, mobile phone or hire purchase repayment can wreck your credit rating and make it harder to get cheap finance in future. Set up a direct debit to make sure you don't miss payments by mistake.

5) Fall for get-rich-quick schemes
If you think you can get rich by day trading shares, replying to letters from Nigerian princes or sending cash to claim the jackpot in a Spanish lottery you never entered, you will always be poor.

6) Drive like a boy racer
The more you rev, the more petrol you burn. Driving at 70 mph uses 30% more fuel than 60 mph. A speeding conviction adds £200 to the typical premium, being caught using a hand-held device can add more than £300.

7) Get addicted
Addiction comes in many forms, all expensive. A 20-a-day smoking habit can cost £2,700 a year. A morning latte and muffin could eat up £1,500. Serious addictions such as gambling will leave you broke.

8) Have children
Raising a child to 18 costs £222,500 on average, according to insurer LV =, and no, that doesn't include private school fees. If you have two kids, you will blow an unbelievable £445,000. Think what you could have done with all that money! Worse, the Bank of Mum & Dad never shuts these days, but stays open throughout adulthood. Abandon financial hope all ye who have children.

9) Compete financially
Keeping up with the Joneses is expensive. They're richer than you.

10) Lie to yourself
Please don't kid yourself that you don't need a pension because you plan to work till you drop/downsize to a cheaper property/scoop a massive inheritance/live fast, die young/win the Lotto.

11) Impulse buy
The odd impulse buy is fine, but don't turn it into a lifestyle. Before the financial crisis, people used to joke about maxing out their credit card. Not so funny now.

12) Be loyal
Loyalty is an admirable trait... in a dog. But it's daft to be loyal to your bank, insurer or utility company. Loyal customers get worse savings, mortgage and credit card rates, and pay more for their insurance and energy. Stay loyal, and you will be treated like a dog.

13) Hoard your old stuff
Don't let your belongings gather dust, turn them into cash. Cashinyourgadgets will buy your old mobiles, laptops, tablets and digital cameras. MusicMagpie.co.uk helps you sell clothes, CDs, DVDs, games, gadgets and electronics. Or try local trade-in shops, a garage or car boot sale, or eBay or Amazon.

14) Trust sales people
Everybody knows you shouldn't trust a sales person, especially if they work for a bank. But we still do. The result: mis-sold pensions, endowments, payment protection insurance and plenty more. Your life savings are on the line. Be wary.

15) Buy an old property
Old houses need constant care and repair. They will swallow all your spare money. I know, I bought one.

16) Take out a payday loan
You probably can survive the odd payday loan, but only if you clear it in full by the end of the month.

17) Rely on somebody else
Love is a wonderful thing, but so is self-reliance. Too many women rely on their partner for a pension, only to end up divorced and broke. The average Briton is banking on a £78,000 inheritance from their parents, but four out of 10 will get nothing, according to Skipton Building Society.

18) Buy your holiday money at the airport
Nobody likes to feel poor on holiday, and you'll feel a lot richer if you pre-order your foreign currency online from companies such as ICE, FairFX, the Post Office, Tesco, Travelex, Marks & Spencer and Moneycorp. Those airport foreign-exchange boots are a rip-off.

19) Take the first annuity you see
An annuity is the income for life you buy with your pension at retirement. Too many wrongly people think they are obliged to buy it from their pension company, but shopping around can boost your retirement income by between 10% and 40%. If you don't, you could get up to 40% less income, for the rest of your life.

20) Stick your head in the sand
If you're in debt, face up to it. Get free advice today from a debt charity such as National Debtline, StepChange Debt Charity, the Debt Advice Foundation or your local Citizens Advice.

Where to get free debt advice

Another Good Reason To Hold BAE Systems Plc

The Motley Fool — 2013-05-21T08:55:00+00:00

Filed under: Investing

According to weekend newspaper reports, Sir Roger Carr -- currently chairman of Centrica -- is being lined up as the next chairman of BAE Systems (LSE: BA) (NASDAQOTH: BAESY.US). If true, it will be another good reason to hold the high-yielding shares.

The current incumbent, Dick Olver, is expected to step down this year, with more than a little push from shareholders after BAE's plan to merger with Airbus manufacturer EADS fell apart. Fund manager Neil Woodford of Invesco Perpetual, BAE's largest shareholder with 13%, campaigned for Mr Olver to go and is said to support Sir Roger's candidature.

What will this mean for BAE investors? I make three predictions.

Confidence and clarity

Sir Roger is an eminent City grandee, currently president of the Confederation of British Industry and deputy chairman of the Bank of England. He is outspoken, on topics such as UK energy policy, the UK's role in Europe and executive pay, so BAE will have a louder and more confident public voice than recently. That should embolden management to take proactive measures to address the company's weak markets, too. Mr Olver and CEO Ian King are damaged goods in the wake of the EADS debacle.

Don't be surprised if there's a good shake-up of the boardroom, too. Indeed, Mr King may not be among those celebrating.

A big deal?

Sir Roger was chairman of iconic chocolate brand Cadbury when it succumbed to a controversial £11bn bid from Kraft, and he was chairman of Thames Water when it was sold to RWE for £5bn. With his extensive connections and openness to big deals at the right price, it's not inconceivable that the EADS merger could resurface.

That deal was vehemently opposed by Neil Woodford, but Invesco is also a shareholder in EADS and, with the right price and structure, attitudes could change. At least another time around, BAE shareholders could expect to receive proper value.

To buy, or not to buy

Mr Woodford also savaged BAE's track record of over-paying for acquisitions, and called for the company to concentrate on shareholder value rather than growth.

It can be taken as read that Sir Roger will focus on shareholder value. But his reputation was built on M&A: in the 1980s and 1990s he worked for, and subsequently became CEO of, Williams Holdings as it grew from a car dealership to a FTSE 100 conglomerate. So his arrival might herald more acquisitions. With defence markets depressed, it's a cheap time to buy.

Sir Roger doesn't have an unblemished history. He resigned as chairman of Mitchells and Butlers after the pub operator lost £0.5bn in property deals. But as an investor in Centrica, Neil Woodford knows him first hand and that's said to be the reason behind his support.

Mr Woodford has an unrivalled record as a fund manager. His high-yield fund has grown at 12.6% a year since 1988, and is "the best performing of any fund investing in the UK since it launched" according to Hargreaves Lansdown. You can learn more about how Mr Woodford selects stocks in this report from the Motley Fool: "Eight Shares Held By Britain's Super-Investor". You can download it by clicking here -- it's free.

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Pharmacy advice slammed by Which?

Adrian Holliday — 2013-05-21T08:45:00+00:00

Filed under: Shopping & Deals

Stick to Boots, Superdrug and supermarkets if you want to trust your pharmacy. That's the abbreviated conclusion of a 122 mystery shop Which? investigation into pharma high street quality across the UK.

Independent operators fell down the performance table - and advice from some pharmacy assistants comes in for some over-the-counter criticism.

Investigation

"Independent pharmacies were worse than the leading chains and supermarkets," says Which? "Over half were unsatisfactory - the same as when we last investigated pharmacies in 2008."

The Consumers' Association used two other scenarios - one for diarrhoea and one for migraine. For the first, unsatisfactory advice given could have led to pharmacies missing a serious infection. For the second, it could also have led to medication being given, without checking for suitability.

Which? says counter assistants were significantly more likely to give poor advice than pharmacists. "Two thirds of the visits handled solely by them were rated unsatisfactory, compared with a quarter where the pharmacist either managed or was involved in the interaction."

Naming and shaming

In terms of naming and shaming, Boots, Superdrug and the supermarkets generally came out reasonably well. But in terms of unsatisfactory advice, Rowlands Pharmacy came out bottom of the table, with a 73% score compared to 17% from the supermarkets.

Surely consumers though have the right to trust any advice they receive from a pharmacy? The Royal Pharmaceutical Society and the General Pharmaceutical Council claim they recognise Which's concerns and are taking steps to tackle the issues.

In the interests of fairness, note Boots' score, though generally good, still saw a disappointing 38% of visits take an Unsatisfactory score. The Co-op also looks unspectacular, with just 8% of visits receiving Good scores, and 38% Unsatisfactory.

Full Which? scores below

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Who really owns our water companies?

lovemoney.com — 2013-05-21T08:15:00+00:00

Filed under: Utilities

As Severn Trent looks set to fall into foreign ownership, we look at just how many water suppliers are no longer in British hands.

Severn Trent has been approached about a takeover bid by a group of foreign companies. The deal could be worth a whopping £5 billion.

Severn Trent is one of the biggest water companies in the country and supplies 7.7 million people with drinking water across the Midlands and Wales.

The Severn Trent bid
The group involved with the bid include the Canadian investment group Borealis, which already owns assets in the UK, the Kuwait Investment Office and the Universities Superannuation Scheme.

A statement was issued confirming the proposed takeover, although acceptance of the £5 billion bid has not been confirmed.

It said: "This approach is at a very early stage, no proposal has been made and there can be no certainty that an offer will be made or as to the terms of any such offer, should one be forthcoming."

After this announcement shares in the company jumped more than 18% to a record high before falling back again.

More details will be announced on the 11th June when the offer will either be confirmed or extended.

Customers are unlikely to see a difference if the takeover does go ahead because prices are under the control of water regulator Ofwat.

Water firms urged to reduce leaks

UK water companies in foreign hands
Severn Trent is just one of several utilities companies now under foreign control. This is because utility companies have proved to be a strong investment, as they're a good way to receive a steady income.

After the UK water industry was privatised in 1989 several new companies were formed and many of these have now been sold off.

In 2006 Thames Water was bought by a consortium which included the Australian investment group Macquarie and a Chinese wealth fund.

Yorkshire Water, which now supplies 4.7 million people, was snapped up in 2007 by another consortium, this time made up of Citigroup, HSBC, and the Singaporean sovereign wealth fund GIC.

Northumbria Water was also bought in 2011 by the Hong Kong-based company Cheung Kong Infrastructure Holdings.

How to cut your water bills

Where your water company is based
The table below shows which water companies are owned by overseas investors. There are now 12 water companies, out of the 23 in the UK, which have foreign owners not including the proposed Severn Trent deal.

Water company	British or overseas ownership	Who owns it?
Affinity Water (formerly Veolia Water Central, Veolia Water East, Veolia Water Southeast)	Overseas	US-based Morgan Stanley and UK-based Infracapital (investment fund managed by M&G).
Anglian Water (includes Hartlepool Water)	Overseas	Osprey Acquisitions Limited - a consortium of several companies based in the UK, US and Canada
Bristol Water	Overseas	Split between Canada-based Capstone Infrastructure, Spain-based Grupo Agbar and Japan-based Itochu Corporation
Cambridge Water	Overseas	Hong Kong-based Cheung Kong Infrastructure Holdings
Cholderton and District Water	British	Independent water company
Dee Valley Water	British	Independent water company
Dwr Cymru Welsh Water	British	UK-based Glas Cymru
Essex and Suffolk Water	Overseas	Hong Kong-based Cheung Kong Infrastructure Holdings
Northern Ireland Water	British	Government-owned company
Northumbrian Water	Overseas	Hong Kong-based Cheung Kong Infrastructure Holdings
Portsmouth Water	British	UK-based South Downs Capital Ltd
Scottish Water	British	Government-owned company
Sembcorp Bournemouth Water (formerly Bournemouth and West Hampshire Water)	Overseas	Singapore-based Sembcorp
Severn Trent Water	British	Severn Trent Plc
South East Water	Overseas	Canada-based CDPQ and Australia-based Utilities Trust of Australia
South Staffs Water	Overseas	US-based KKR
South West Water	British	UK-based Pennon Group
Southern Water	British	UK-based Southern Water Capital Limited
Sutton and East Surrey Water	British	UK-based East Surrey Holdings Limited
Thames Water	Overseas	Australia-based Kemble Water Holdings Ltd, part of the Macquarie group
United Utilities	British	Independent water company
Wessex Water	Overseas	Malaysia-based YTL Corporation
Yorkshire Water	Overseas	Citigroup, HSBC, and Singapore-based GIC

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Warning over Microsoft support scam

Sarah Coles — 2013-05-21T08:06:00+00:00

Filed under: Scams & Fraud

The experts are warning computer users of a scam doing the rounds - where users receive a telephone call out of the blue from someone claiming to be from Microsoft. They then use a variety of techniques, from infecting your computer with malware, to charging you a fortune for help you didn't want or need, or even just asking for your credit card details.

So what should you watch for?

The scams

These scams are not all new, but they have been highlighted by Which, after a number of subscribers contacted them to share their experiences.

In around a fifth of instances, the scammer on the other end of the phone will talk the user through the process of allowing the criminals to gain remote access to their computer. Once they have access, they can infect it with malware designed to steal internet banking and shopping passwords and account numbers.

In about a third of cases victims will be sold worthless subscriptions to support services, and around a fifth are asked directly for their credit card information - either over the phone or being directed to a fake website where the victim enters the details themselves.

Microsoft says that another common approach is to talk you into installing malware yourself - and then charging you to remove it.

It has released a list of the organisations that the scammers are claiming to work for, including Windows Helpdesk, Windows Service Center, Microsoft Tech Support, Microsoft Support, Windows Technical Department Support Group and Microsoft Research and Development Team (Microsoft R & D Team).

Protect yourself

Microsoft stresses that if you are approached by a cold caller, it's best to assume they are up to no good. Do not allow them access to your computer, and do not give them any details or sign up to anything.

They highlight that Microsoft would never call and ask you to pay anything - so if you are asked for payment, hang up immediately.

If scammers call offering a service that you think you need, hang up, and do a separate search for a reputable company offering these sorts of services. Don't be conned by a smooth-talking salesperson.

If you are a victim

Which? says that the average victim is 55 or over, and has lost £75 as a result of the scam.

If you are worried that you may have been a victim yourself, Miscosoft recommends a number of steps to protect yourself, including changing your computer password, the password on your main email account, and the password for any financial accounts, especially your bank and credit card.

You should also scan your computer with the Microsoft Safety Scanner to find out if you have malware installed on your computer, and install Microsoft Security Essentials (this is a free program. If someone calls you to install this product and then charge you for it, this is also a scam.)

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New-build garage not wide enough for cars

Sarah Coles — 2013-05-21T07:17:00+00:00

Filed under: House Prices

A couple who have moved into a brand new £200,000 house were shocked to discover that the garage will not take an average family car - not if you want to be able to get out.

So what has happened, and is this sort of thing unusual?

Garage too narrow

The Huddersfield Daily Examiner reported that Claire Walker (37) and Andy Birkhead (33) bought the £209,950 property together in Oxley Park, Huddersfield. It looked like the ideal family home for them and their son - a three-bedroom detached property, complete with garage. All went well while they moved in and used the garage to store boxes.

It was only when they emptied the boxes and tried to park in the garage that they discovered the horrible flaw. Walker's Volvo S40 was too wide to go into it, and although Birkhead's Fiesta ST could squeeze in, it left him trapped in his car because it was too narrow to open the door.

The couple is furious, and told the Daily Mail that when they contacted developer Persimmon, they were told that they should have measured the garage themselves.

A spokesman for Persimmon Homes, said in a statement: "The size of our garages are comparable with other housebuilders across the UK. The dimensions of each garage are governed by both the size of the house and the relevant planning regulations and are clearly laid out in the marketing brochure. We deeply regret that Miss Walker and Mr Birkhead are unhappy with the size of their garage. We continue to work with Miss Walker and Mr Birkhead to try and resolve the situation."

Common

This isn't the only move into a new-build that hasn't gone entirely to plan. There have been hundreds of tales over the years, from any number of different property firms.

There was the couple who's staircase started coming away from the wall in their south Glasgow property, the family in Sussex who had sewage pouring down the walls after drains were not correctly installed, and the woman in the Peak District whose daughter narrowly escaped falling roof tiles that hadn't been properly attached.

Which surveyed 200 owners of new-builds in 2011 and discovered that more than half had faced some sort of problem in the first five years in the property. A quarter faced problems with the boiler, while 16% had issues with water, gas or electricity and 12% had structural problems.

Your rights

Most new homes are covered for two years for snags - so if anything goes wrong the developer will fix it. After that - until the fifth year - the developer will cover major issues that affect the structure of your property. However, they will not cover you for issues such as the size of the garage or rooms.

Size is definitely a consideration. Research at the end of last year from the Royal Institute of British Architects found that new properties in the UK are 15% smaller than in Ireland, 53% smaller than Denmark and 80% smaller than in Germany - and the properties are shrinking all the time.

People they interviewed for the study revealed all sorts of issues. Among the strangest were the family forced to store the vacuum cleaner at a relative's house because there was no room in the property, and another who had been reduced to storing food in the car boot. Overall, a third of people were disappointed with the amount of living space.

If you are considering a new-build, it's essential not to make any assumptions about size. Even if you are walking round a show home, consider whether the double bed is in fact a 4ft bed, and whether the spare room looks so spacious because they haven't chosen to put a wardrobe in. It's these sorts of things that can catch us out, with no comeback after purchase.

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Bank eases mortgage hikes policy

Press Association — 2013-05-21T07:00:00+00:00

Filed under: Mortgages

The Bank of Ireland (BOI) has partially backtracked on a steep rise in mortgage rates for customers who thought their repayments were fixed for life.

It has written to 1,200 of the 13,500 homeowners facing sharp increases - despite taking out tracker deals linked to the historically-low Bank of England base rate - to tell them they will no longer be applied in their cases. The bank said the Financial Conduct Authority (FCA) was "supportive of our approach in excluding these customers".
Customers were told of the decision to raise their rates - which in some case would double, lifting payments by hundreds of pounds a month - earlier this year. Many had taken out loans with BOI subsidiary Bristol & West. The changes came into effect this month.

But consumer group Which? said it believed they were being treated unfairly, pointing out that some were sold a "lifetime tracker". It urged customers to complain and called on the FCA to ensure better communication from banks about clauses in mortgages.
On Tuesday, the bank announced that it had identified and written to two groups of customers "where we will not be applying the increase to their base rate tracker mortgage". These included 1,000 homeowners who were using flexible facilities on their mortgage account and "received a specific administrative letter linked to their transactions that might have caused some customers to believe the differential was for the term of their mortgage".

The second group of around 200 customers were those who had switched their mortgage to a base rate tracker. The bank said they received documentation saying rates could change but their mortgage conditions did not detail the circumstances under which this would happen.

Des Crowley, chief executive of Bank of Ireland UK, said: "We have said from the outset that we will review all customer complaints individually and that we are committed to treating customers fairly throughout the process. It is on this basis that we have removed these customers."

But the move still leaves more than 12,000 customers with a steep rate hike - having believed they would stay low because they were linked to the Bank of England rate, currently 0.5%. BOI has told them it was changing the "differential" it applies to the tracker rate.

A typical change has seen a buy-to-let mortgage holder previously on a rate of 2.25% - made up of the base rate plus 1.75% - rise to 4.99%, representing the Bank rate plus 4.49%. For residential customers, changes will be introduced in two stages. From this month, they will pay the Bank rate plus 2.49%. On October 1, it goes up to Bank rate plus 3.99% - currently 4.49%.

BOI blamed the rise on increased funding costs and the need for banks to maintain greater levels of capital. It has set up a phone line for anyone worried about the impact of the changes. It said customers were free to move to other providers and that no early repayment charges would apply. Most of those affected had buy-to-let loans.

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Royal Mail posts £440m profits

Press Association — 2013-05-21T06:37:00+00:00

Filed under: Investing

Royal Mail unveiled a big jump in profits to £440 million as it took another step towards a possible stock market flotation later this year.

The result for the year to March 31 is more than double the £152 million in 2012 - when there was one less trading week - as the state-owned firm benefits from the boom in online shopping and recent efforts to modernise the business.
Chief executive Moya Greene, who last year returned the core postal business to profitability after four successive years of losses, said it was a strong performance and that the transformation of Royal Mail was under way.

The core postal business, which delivers the six-days-a-week universal service to 29 million addresses, reported operating profits of £331 million and improved its margin from 0.5% to 3.9%. Parcel deliveries now account for almost half of the group's revenues of £9.3 billion in the last year.
The performance is expected to encourage the Government to cash in on the turnaround by pressing ahead with a privatisation this year, despite opposition from unions representing postal workers and managers.

Business Secretary Vince Cable insisted there was ''no alternative'' to privatising the Royal Mail and said the organisation still faces a ''fundamental threat'' from email that meant it must be reformed in order to survive.

However, unions have warned that services will go into decline if the business is sold off.

The preferred option is believed to involve the public buying shares alongside City investors, in an echo of the "Tell Sid" campaign that pioneered the public sale of shares in British Gas in the 1980s.

At least 10% of the shares have been earmarked for the workforce, although it is not known whether staff will get them for free.

The Communication Workers Union (CWU) will this week start balloting Royal Mail workers on whether to boycott the post of rival companies in a move which could lead to millions of items being left undelivered. Around 120,000 members of the CWU will vote from Wednesday, with the result due on June 19.

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How to deal with stress at work

Hannah Ricci — 2013-05-21T06:00:00+00:00

Filed under: Career

We all get stressed out at work sometimes, but what happens when short-term worry turns into prolonged anxiety that affects our health and professional performance?

We explore work-related stress and what to do if you are suffering from it.

The problem
Stress is a major issue in the UK workforce, with 428 000 reported cases in 2011/12, according to the latest Labour Force Survey (LFS). However, the true picture is thought to be much worse as many cases go undiagnosed. In fact, figures from PruHealth report that at least one in four British workers is displaying symptoms of the most common mental health problems such as stress and anxiety.

Work-related stress caused the UK to lose 10.4 million working days in 2011/12, according to the LFS, with nursing, social work, education, public administration and defence among the industries reporting the highest number of cases.

The causes
Stress at work develops when we are unable to cope with the demands of our job, when the job requirements outweigh our capabilities. It can often go unnoticed as it tends to be the result of a gradual build of many work pressures - which can be dealt with individually - but feel overwhelming when combined with other issues going on in our lives.

According to the LFS, the most common cause of work-related stress is workload (186,000 cases) - including tight deadlines; too much work, pressure or responsibility, followed by lack of managerial support (61,000 cases) and bullying (54,000 cases).

The symptoms
Stress affects people in different ways and there are a whole host of different telltale signs, from behavioural and emotional changes, to physical and mental indicators. Common symptoms are outlined on the Health and Safety Executive website, but you should generally look out for any changes in your attitude or behaviour triggered by a situation at work. Are you drinking more heavily after work, for example, or suffering from headaches or heart palpitations?

Worryingly, workplace violence and 'desk rage' is also on the rise, according to Pru Health, with employees reporting a rise in incidents such as seeing a colleague break down and cry; being rude to or swearing at a colleague, and taking frustration out on office equipment such as hitting computers, throwing something or slamming fists on the desk.

The prevention
Careful monitoring of your mood and behavior is key to prevent the onset of stress, as well as recognising when a workload feels unmanageable and you need to ask for help. Self acceptance and maintaining self-esteem are also important, explains Cat Williams, relationship councilor and author of Stay Calm and Content.

"We are all challenged at certain times. Stress and being 'out of our comfort zone' are normal and necessary parts of learning and living. The people who cope the best are those who don't resort to criticism of themselves or others. They also accept that there will be things they cannot do and they will not be perfect, so they learn to do what they can and accept what they cannot."

Don't let work take over your life and prevent you from doing things you enjoy, such as working out at the gym or meeting friends for dinner after work. A balance between work and play is key to job satisfaction and mental well-being .

The cure
If you recognise the symptoms of stress and feel that it is impacting your health, it is important to act quickly. Identify why you are feeling overwhelmed, for example, unrealistic deadlines or unachievable sales targets, and who can help you deal with the issues, such as your manager or human resources department.

Explain how you are feeling, why your limits are being tested and what solution you would like to see. Learning to say no is a key tool to dealing with stress. It teaches that have you have a choice not to overwork and will empower you to only take on the jobs that you can manage. Employee health should be a priority in all companies and if your problem is not dealt with sensitively, it may be time to move onto a new job.

Remember your GP can help too - pay a visit if your mental or physical health is suffering as a result of your job.

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Yahoo wants Flickr to be 'awesome'

Press Association — 2013-05-21T05:30:00+00:00

Filed under: Investing

Fresh on the heels of its 1.1 billion dollar acquisition of Tumblr, Yahoo said it is rebooting its languishing photo-sharing site Flickr with plans to make it "awesome" again.

Yahoo said at an event in New York City's Times Square on Monday that it is now offering users one terabyte of online storage for free.
One terabyte is 1,024 gigabytes - enough to store more than 500,000 images at a resolution common to most smartphones.

Yahoo has redesigned the Flickr website to emphasize photos rather than text or white space, as was the case previously. Photos are bigger and shared in full resolution rather than compressed into a lower quality.
Flickr also launched a new Android app to follow the December unveiling of a new iPhone app.

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Work Programme is failing, say MPs

Press Association — 2013-05-21T05:00:00+00:00

Filed under: News

The Government's flagship scheme for helping the unemployed find work appears to be failing to tackle the most difficult cases, according to a Commons committee.

MPs found the Work Programme got off to a "poor" start but said there had since been improvements in support for the "mainstream" jobless. Despite financial incentives being offered, however, to stop organisations focusing their efforts on the most straightforward unemployment cases, there is "growing evidence" that disadvantaged jobseekers are being "parked", the Work and Pensions Committee said.

It criticised the techniques of providers, who are paid according to their success in securing long-term work for clients, claiming they are playing an "ineffective numbers game" that involves deluging employers with poorly matched CVs and under-prepared candidates. MPs also said they were "dismayed" to learn Work Programme advisers had to deal with up to 180 jobseekers, arguing the caseload was too heavy to allow an effective service. Last year the Government faced calls to scrap the scheme after revealing only 3.5% of those taking part had found sustainable jobs.

MPs said none of the 18 major providers met their targets in the first year of the programme. As they are paid on a payment-by-results system, the Government has spent about £248 million less on the Work Programme than anticipated in 2012/13, according to the report.
Work and Pensions Committee chair Dame Anne Begg said: "The performance of the Work Programme in its first 14 months was poor. There are signs that it is now improving significantly for mainstream jobseekers. We hope the next job outcome statistics to be published in June will bear this out - we will be very concerned if they don't. However, the Work Programme has proved much less successful to date in addressing the problems faced by jobseekers who face more serious obstacles to finding a job - people with disabilities, homeless people, and those with a history of drug or alcohol abuse. It is clear that the differential pricing structure is not a panacea for tackling creaming and parking."

The committee found the welfare-to-work sector lacks effective regulation. The MPs said there was a "suspicion" larger organisations used smaller, specialist groups with experience of supporting jobseekers with the severest barriers as "bid candy" to make their applications more appealing, then failed to use them.

TUC general secretary Frances O'Grady said: "This report raises a number of very serious concerns about the Work Programme that cannot be swept under the carpet. Providers of job support have failed to achieve their minimum performance targets and are not doing enough to help disadvantaged job seekers."

Richard Hawkes, chief executive of the disability charity Scope, said: "The Work and Pensions Select Committee is right, the Work Programme is currently not working for disabled people. It is absurd that disabled people who face the biggest barriers to employment are receiving the least amount of support. No wonder so few disabled people are actually finding jobs through the Work Programme. Disabled people want to work but they face multiple barriers such as a lack of skills and experience, confidence and even negative attitudes from some employers. If the Government is serious about disabled people moving off benefits and into work it needs to ensure disabled people get the specialist, tailored and flexible support they need."

Shadow work and pensions secretary Liam Byrne said: "This report is fresh evidence that Iain Duncan Smith and David Cameron are failing the test they set themselves in opposition. Unemployment is rising in three-quarters of Britain's poorest estates and now we know why - the Work Programme is simply not working for them. It is surely time for this Government to listen to Labour's call for a new approach to getting Britain back to work, drawing together the best of Britain's councils, government, voluntary sector and private sector, as they do in other parts of the world. And we need a compulsory jobs guarantee to get anyone out of work for more than two years back into a job; a job people must take or risk losing their benefits."

A Department for Work and Pensions spokesman said: "It is still early days but according to industry figures already more than 207,000 people have been helped into a job through the Work Programme by the end of September 2012 and performance is clearly improving. The payment-by-results model goes further than any previous scheme to encourage providers to help all claimants, including the hardest to help. The key point is they earn the majority of their payment for helping someone into work and keeping them there. Almost half the providers are voluntary or community sector organisations and a third from the private sector. What they all have in common is that they are experts in helping long-term unemployed people back to work."

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Retailer announces fall in profits

Press Association — 2013-05-21T04:30:00+00:00

Filed under: Shopping & Deals

Marks & Spencer's annual profits have fallen to their lowest level in four years after clothing sales slumped.

Underlying pre-tax profits for 2012/13 were £665.2 million, a fall of 6% on a year earlier and well below City forecasts for £710 million at the beginning of the financial year
It is also a far-cry from the retailer's heyday in 2008 when it made more than £1 billion.

The results mean chief executive Marc Bolland remains under pressure to turn around the high street stalwart, particularly in the wake of an executive reshuffle and the launch of a new clothing range last week.
Like-for-like UK sales fell by 1% with general merchandise down 4.1% though food did better, improving by 1.7%. Overall group sales were up 1.3%, buoyed by international takings.

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Inflation set for temporary dip

Press Association — 2013-05-21T04:00:00+00:00

Filed under: News

Stubbornly high inflation is likely to heap more pressure on households on Tuesday despite lower prices at the petrol pumps tempering further price rises.

Consumer Prices Index (CPI) inflation is expected to peak above 3% in the summer after sticking at 2.8% in March, as rising gas and electricity bills continue to squeeze struggling families.

Economists believe the Office for National Statistics will report a temporary slowdown in inflation to 2.7% or 2.6% in April - still above the Bank of England's 2% target. But inflation will remain well ahead of wage growth, which advanced at just 0.4% in the three months to March.

Forecasters at the Ernst & Young ITEM Club, which uses the Treasury's model of the UK economy for its forecasts, estimate that persistently high inflation has already knocked almost 3% off UK growth in the past three years.
It expects inflationary pressures to peak over the summer and said it is unlikely the CPI measure will dip below 2.5% over the next four years.

Rising food prices, higher utility bills and a near-trebling of university tuition fees continue to spur inflation, although the Bank of England recently lowered its forecasts for inflation on the back of weaker commodity and oil prices.

Shore Capital economist Gerard Lane said inflation looks set to have dropped to 2.6% in April in an "ease of the squeeze" on households.

IHS Global Insight economist Howard Archer, who expects 2.7% inflation in April, said: "Consumer price inflation is expected to have edged down in April helped by lower petrol prices and favourable base effects due to the fact that Easter occurred in March in 2013 but in April in 2012.

"This should have meant that the year-on-year increase in many holidays and flights were lower in April than in March."

In Sir Mervyn King's final inflation report before handing over to new governor Mark Carney in July, the Bank said inflation looks set to peak at about 3.1% in June - down from its previous forecast of a 3.2% summer high.

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