Money

EasyJet plans Airbus fleet upgrade

Press Association — 2013-06-18T12:00:00+00:00

Filed under: Holidays

Budget airline easyJet is to upgrade and expand its aircraft fleet under a deal to buy 135 Airbus planes over the next nine years.

The no-frills carrier said the new 180-seater A320 planes will allow it to boost the number of passengers it can carry from 60 million a year to around 90 million.
Its new aircraft will also be more fuel-efficient, which means they cost less to run and are more environmentally friendly.

The move will allow easyJet to replace around 85 of its current 211-strong fleet of 156-seater planes, as well as giving it the room to expand and add routes.

It also has the option to buy a further 100 Airbus planes as part of the deal.

But the scale of the fleet acquisition means easyJet must get shareholder approval, with the backing of 50% of investors required, and is likely to reignite the long-running row with founder and largest shareholder Sir Stelios Haji-Iaonnou.

Sir Stelios, who with his family controls a near-37% stake in easyJet, has been a vocal opponent of the group's plans to increase its fleet. He said earlier this year that he believes the new planes are not necessary and will be acquired at the detriment of shareholders.

Luton-based easyJet has ordered 35 current generation A320 planes for delivery between 2015 and 2017 and 100 new generation A320neo aircraft from 2017 until 2022. It said it secured a steep discount for the planes, but did not disclose the cost of the deal.

Carolyn McCall, chief executive of easyJet, said: "This is a great outcome for easyJet, our shareholders and our passengers, and will ensure that easyJet is able to continue its successful strategy of delivering profitable growth and returns to shareholders."

EasyJet said the new aircraft would allow it to fulfil aims to increase its seat capacity by between 3% and 5% a year, while slashing costs per seat by between 11% and 12%. It said if the deal did not go through, costs per seat would be around £2.98 higher in 10 years' time, which it claims would have a "material" impact on profits.

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Lloyds denies Co-op deal pressure

Press Association — 2013-06-18T11:30:00+00:00

Lloyds Banking Group bosses have denied they faced political pressure to accept the Co-operative Bank's ill-fated £700 million bid for its branches, insisting they acted in the best interests of shareholders.

In a hearing with MPs over the collapse of the branch deal, Lloyds chairman Sir Win Bischoff said there was "no political interference or contact" surrounding the decision to choose the Co-operative over the two other final bidders.

The Co-op pulled out of the branch takeover in April over fears about the strength of its banking arm's balance sheet, shortly before ratings agency Moody's downgraded it to junk status and warned it may need taxpayer support.

Moody's delivered another blow to the Co-op Bank on Tuesday, slashing its rating on the group again following yesterday's details of its aims to plug a £1.5 billion hole in its finances, citing doubts over the group's plans.

Sir Win and Lloyds chief executive Antonio Horta-Osorio revealed they discovered a capital shortfall at the Co-op in December 2012 and were "sceptical" it could be plugged in time for the branch sale to complete as scheduled in March. But they said they decided to give the Co-op more time, given its assurances the deal could still be done.

MPs on the Treasury Select Committee grilled the Lloyds chiefs amid concerns of political interference over the decision to choose the Co-op over rival bidders, investment group NBNK and Sun Capital.

Lord Levene, who chaired the NBNK bid, claimed in a written statement there had been "significant political involvement leading up to the original decision" in favour of a bid from a mutual. He added he was advised the decision was "based on an indication from senior politicians within the Coalition that the Co-op deal was to be the preferred and definitive solution".

Mr Horta-Osorio said the Government had only indicated its preference for the mutual model after it had announced its decision to sell the 632 branches to the Co-op.

Sir Win told MPs the only factors considered by the board in the bidding process were the financial aspects of the deal and the ability to execute.

The Lloyds bosses revealed the Co-op's offer was higher than NBNK's £630 million bid. Lloyds, which has to divest the branches as an EU condition of state aid, will instead float the branches on the stock market under the TSB Bank brand following the Co-op bid's collapse.

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Trader charged over 'fraud plot'

Press Association — 2013-06-18T11:00:00+00:00

Filed under: Scams & Fraud

A City trader has been charged with offences of conspiracy to defraud in connection with the investigation by the Serious Fraud Office into the manipulation of the Libor interbank lending rate.

Former UBS and Citigroup trader Tom Hayes, who is 33 and from Surrey, was one of the three individuals arrested on December 11 by officers from the Serious Fraud Office (SFO) and City of London Police.

He attended Bishopsgate police station on Tuesday morning where he was charged by City of London Police with eight counts of conspiracy to defraud. He will appear before Westminster Magistrates' Court at a later date.

The SFO said its investigation into the manipulation of Libor continues.

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New cars 'should use less fuel'

Sarah Coles — 2013-06-18T10:30:00+00:00

Filed under: Motoring

Most people believe car manufacturers could make their vehicles more fuel-efficient, according to a new study.

Three out of four said more could be done to improve fuel efficiency, while 42% agreed that stricter fuel-efficiency standards were a good idea, a survey of more than 1,000 adults for Greenpeace found.

Sara Ayech, climate campaigner with Greenpeace, said: "The results from this research couldn't be any clearer.

"Unfortunately, as documents recently published by Greenpeace show, the coalition Government has failed to support European-wide legislation that would reduce polluting emissions.

"We have had four years of green rhetoric from the coalition Government. The time has now come for fewer words and a lot more action."

The report was published on the eve of a meeting at the EU, where member states will agree a position for final negotiations on car CO2 emissions.

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Expert sets out high streets vision

Press Association — 2013-06-18T10:00:00+00:00

Filed under: Shopping & Deals

The former boss of retail chains Wickes and Iceland has launched an alternative review of the high street after becoming "frustrated" with the current Government-backed programme.

Bill Grimsey, the stores' former chief executive, told BBC Breakfast he wanted to see "town centre commissions" that bring together housing, education, leisure and shops to shake up ailing high streets.
His comments come after it emerged last month that 10 of the 12 Government-funded "Portas Pilot" towns saw a fall in the number of occupied shop units. The towns were awarded a share of the £1.2 million High Street Innovation Fund, launched last year, as well as Government support and access to retail guru Mary Portas following her review of the sector.

Mr Grimsey said: "I've become frustrated that these reviews have started from what I consider to be the wrong place. Fundamentally, we are changing as a society - the millennium generation is about to become the consumer of tomorrow."

He said high streets are under threat from online retailers, and the Portas review is "papering over the cracks" rather than attacking the "real issue" - that there are not enough people in town centres for communities to be vibrant in the future.

He added: "The whole argument that we'll be coming up with is that we need to see town centre commissions - not town teams as has been set up - that are properly constructed, that capture the imagination of the Big Community that David Cameron spoke about, that actually harnesses it into a proper process which encompasses the whole planning system which will deal with housing, education, leisure and some shops in a thriving town centre, which will be unique and different in every part of the country."

A spokesman for the Department for Communities and Local Government (DCLG) said: "We welcome any contribution to the debate and new ideas that anyone wants to suggest. It is clear that our high streets will need to adapt to prosper.

"That's why the Government has worked hard over the past year to help high streets thrive - simplifying planning restrictions to get empty and redundant buildings in town centres back into use, cutting business rates for small businesses and scrapping Whitehall guidance that pushed for higher parking charges.

"We have also supported communities to develop projects to renovate their town centres. Pilots up and down the country are already showing what is possible, from Braintree developing parking initiatives, to Market Rasen backing an award-winning local market.

"But this is just the start and why we are bringing together experts from across the industry to sit on our Future High Streets Forum to help tackle the biggest challenges our town centres face."

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Millions of British Gas customers in billing error

Sarah Coles — 2013-06-18T09:57:00+00:00

Filed under: Utilities

Ofgem has announced that between 2006 and 2011 British Gas failed to 'round down' one aspect of its residential bills, meaning that millions may have paid more than the regulations allow in this area. British Gas, meanwhile is arguing that has not overcharged, and that no-one has missed out.

However, they have made a donation to end the matter - which you may be able to benefit from.

Issue

The problem related to the 'calorific value', which is the heat in the gas that the costumer uses. It appears on bills because it varies around the country - and it indicates the potency of the gas. Those who get a high calorific value will get more energy from the gas, so this is reflected in the price.

Ofgem says that suppliers should use one decimal place when calculating the calorific value of the gas on bills - and 'round down'. However, for the five year period, British Gas used four decimal places - which it told AOL reflected how the gas was bought.

An Ofgem spokesperson said in a statement: "British Gas' interpretation of the regulations, which cover the way thermal energy in gas, known as calorific value, is calculated, meant that although customers didn't pay for energy they did not receive, they paid more than regulations allow."

British Gas told AOL: "While we believe we were operating in line with the regulations, we accept there was an alternative interpretation."

However, it is emphasising that no customers were out of pocket as a result. It added that if it had been forced to round down prices, it would have recouped the money through higher overall prices, so no-one paid any more than they would have done if it had charged differently for the calorific value.

Ofgem accepts that: "The overall impact on customers is unclear as British Gas' interpretation of the regulations may have offset the need for them to adjust prices."

You may still benefit

The question over whether anyone actually lost out at all means that Ofgem is not demanding British Gas repays any money. Instead, British Gas has agreed to pay £10 million into The British Gas Energy Trust.

A spokesperson told AOL that it was intended to 'draw a line' under the issue. Both Ofgem and British Gas are keen to emphasise that this isn't a fine, it's a voluntary donation to settle the matter - without any admission of any wrongdoing. Ofgem said: "This is why Ofgem welcomes British Gas' decision to pay £10 million into its energy trust.'

The donation means that you may still be able to benefit from the move. The trust helps those who are struggling with their bills in a number of ways. It offers debt and welfare advice; it recommends people for free energy efficiency measures; it can help people fund the purchase of household goods and heating systems; and it can clear outstanding bills where there is real hardship.

You don't have to be a British Gas customer to benefit - and it doesn't have to be gas and electricity bills you're struggling with - it can help with any utility bill.

Ofgem has written to consumer groups, such as Citizens Advice, urging them to take advantage of this payment, so if you approach them for help, they may be able access funding through the trust. Alternatively, consumers can approach British Gas Energy Trust direct.

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Inflation rise bigger than expected

Press Association — 2013-06-18T09:30:00+00:00

Filed under: News

The squeeze on consumers intensified last month as soaring air fares and more expensive clothing and footwear lifted inflation higher than expected.

Consumer Prices Index (CPI) inflation climbed to 2.7% in May, from 2.4% in April, the Office for National Statistics (ONS) said. But while inflation is expected to peak at about 3% in coming months, economists believe it will then begin a "slow but steady" drift down.

Last month's surge in inflation was higher than forecasts for a 2.6% reading, as price rises rebounded after a sharp fall in inflation in April. Inflation remains stubbornly above the Bank of England's 2% target - which it has not hit since late 2009 - far outstripping wage rises and further eroding consumers' spending power and savings.

Average earnings increased by just 1.3% in the year to April and 0.7% on the previous month, the ONS said recently, as salaries struggle to keep pace with price hikes.

Air fares leapt 22% from April - the highest rate of increase for this time of year since records began in 2001. Prices rose across European, long-haul and domestic flights, the ONS said, adding there was no clear link to the early timing of the Easter holidays. Overall transport prices rose by 0.4% between April and May, the ONS added, as price falls for petrol and diesel slowed to 2.2% month-on-month, compared with a 3.1% fall a year earlier.

The price of clothing and footwear also rose 1.2% month on month, as the cost of women's outdoor clothing increased during a colder-than-normal month. There were also price rises for furniture, carpets and garden tools. But food and drink prices helped hold back inflation, with price falls for meat, vegetables, fruit, sugar, sweets and jams.

David Kern, chief economist at the British Chambers of Commerce (BCC), said: "With earnings growth stagnant, the rise in inflation will put pressure on businesses and consumers." Neil Prothero, analyst at The Economist Intelligence Unit, added the protracted decline in average real wages, now in its fifth consecutive year, will "persist for some time to come".

But despite May's inflation rebound, economists believe future price rises will be more restrained than originally feared, giving the Bank greater scope to resume pumping money into the economy. The Bank now expects inflation to hit a summer peak of about 3%, down from earlier fears of a 3.5% peak, held back by weaker commodity prices.

Vicky Redwood, economist at Capital Economics, said that while higher than expected, inflation's peak is "hopefully not too far away now". She said: "Inflation will probably get above 3% in the next month or two - meaning that one of [new Bank governor Mark] Carney's first jobs will be to write an explanatory letter to the Chancellor."

The figures come ahead of minutes due this week from the Bank's June interest rates meeting - the last meeting for outgoing governor Sir Mervyn King - which will reveal the level of support for more economic stimulus. The Bank's Monetary Policy Committee voted to hold its quantitative easing (QE) programme steady at £375 billion this month, also keeping rates at 0.5%, amid signs of improvement in the economy. The Bank is expected to hold off more QE until the arrival of Mr Carney next month.

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How to answer tricky interview questions

Hannah Ricci — 2013-06-18T09:00:00+00:00

Filed under: Career

Preparation is key to succeed in an interview, yet even the most thoroughly primed candidate can be thrown off guard with a confusing question.

Careers website Glassdoor has compiled a list of the 25 toughest questions asked at UK job interviews, based on stories posted on its site. So from the incredibly technical to the downright bizarre, how should you tackle these tricky questions?

Do your homework
Good understanding of the company is vital to demonstrate that you are truly interested in the business and your role within it. "Review the job description again and make sure you can describe how your skills and experience match the requirements of the open position," advises Phil Sheridan, managing director of Robert Half UK. "Curveball questions about the company or the role should not be a problem if you have done your homework."

Know what to expect
All interviews are likely to include a host of standard questions such as 'Why do you want to work for this firm?' and 'What makes you right for this role?' so focus on preparing clear and concise answers. "Always be honest," says Tony Wilmot, founder of Staffbay.com. "And make sure your answer has synergies with the outcomes of your research about the company.

"For example, if you want to work in a small, family business, then show how your skills will make you an invaluable member of the team, or if you want to work in a larger, more corporate environment, demonstrate how you'll quickly climb the career ladder."

Have the right attitude
Your persona is just as important as your answers and interviewers may be more likely to forgive the odd gaffe if you come across as likeable and genuine. "Be confident during the interview but not arrogant," advises Sheridan. "Also consider your body language. Making eye contact with the interviewer and nodding your head in agreement shows you're engaged; slouching in your chair indicates you're bored."

Be diplomatic
Honesty is key in interviews but diplomacy is even more important to deal with thorny questions such as 'Do you want my job?.' "Here for example, mention that at some point in the future you'd like to have the skills and experience to fill their role, and that you will do everything you can to work towards that," explains Wilmot. "It's about creating a sense of anticipation about how hard you will work, rather than wanting to claim the top job straight away."

Remain calm
Difficult or odd questions are posed to see how you deal with the unexpected. "Interviewers want to get a feel for how you react to being put under pressure and how you adapt to the situation," explains Sheridan. "By remaining calm, composed and offering well-thought-out responses, you will ensure that you don't get tongue tied and fail to impress."

Listen carefully
Nervous energy can easily take over in interviews, causing you to mishear a question or just keep talking to fill an awkward silence. If in doubt, ask the interviewer to repeat the question and take a moment to think before starting your answer.

"Not listening can be the sign of over-confidence, or just another example of how some people deal with stressful situations," adds Sheridan. "It is important to speak slowly, and provide specific answers to the question at hand."

Turn weakness into strength
'What are your weaknesses?' is the inevitable question that we all dread. "However you answer this question, the skill is how you follow it up," explains Wilmot. "Translate your strengths into points; for example if you're nine out of ten for being a team player, then say you're seven out of ten for getting out of bed on time. Display how you're trying to remedy this. In this case, tell the interviewer that you set three alarm clocks instead of one, and that ensures you're always into work on time. Make sure you offer up something that will combat your fallibilities and you're onto a winner."

Admit when you don't know
If you are completely stumped at a question, avoid the embarrassment of trying to make something up as recruiters are well practiced in reading through blaggers. "Hiring managers can forgive a candidate's inability to respond to a question, but not a lie. Honesty is the best policy," adds Sheridan.

"By explaining that you don't have specific knowledge in that area but can pick up skills quickly, it shows that you're truthful, trustworthy and able to handle yourself in a tricky situation."

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Norfolk council bans hard cricket balls

Hannah Ricci — 2013-06-18T08:30:00+00:00

Filed under: News

Just when you think the health and safety police can't get any more ridiculous; they take it to an entirely new level.

A Norfolk cricket club has been barred from its home of 36 years after refusing to agree to a ban on hard balls being used during batting practice on the pitch.

The new health and safety ruling were drawn up Bacton parish council last month because of fears that members of the public could be hit and injured by stray balls.

But club officials have refused to agree to the new set of rules, according to BBC news, and club chairman David Gale said talks were now in place to move the team away from the village to a new base at a nearby high school.

He said: "We are a cricket team - how are we supposed to practice without cricket balls? Are they expecting us to use tennis balls instead?"

Eviction
Despite a petition from local residents, the Norfolk Eastern Daily Press reports that
the parish council is refusing to back down, forcing the club to leave the village where it was founded 79 years ago.

Council clerk Elaine Pugh said there had been a couple of recent "near misses" in which other people on the field had almost been hit by cricket balls.

The new rules for the use of the field state: 'Batting or bowling practice with a cricket ball or other solid or semi-solid practice ball must only take place inside the batting cage [nets]. Under no circumstances may this take place elsewhere.'

Bacton Cricket Club honorary treasurer Ramone Stringer told the local newspaper: "It's very sad for Bacton, which should always have a cricket club. But we're 99.9% certain to move to North Walsham High School and change our name.

"The move will probably pay off, because North Walsham should have a cricket club and it will attract youngsters to play."

Killjoys
Despite calls from the government that excessive health and safety rules "had to stop" outlandish regulations continue to be enforced throughout the country.

We reported last week how overzealous health and safety rules prevented a Waitrose fish monger from filleting a fish for a customer

In the sporting world, schools have banned football games unless the ball is made of sponge and many have cancelled sports days altogether due to a myriad of health and safety fears.

Council killjoys have also banned people from flying kites on some beaches in case someone gets hit and prohibited dodgems cars from bumping each other through fear of whiplash or broken bones.

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Royal baby fever set to boost economy

Hannah Ricci — 2013-06-18T08:12:00+00:00

Filed under: News

Royal baby fever is set to boost the economy by around £243 million this summer, according to new data from Centre for Retail Research (CRR).

Even the Royal Family is joining in with the launch of baby products from the Royal Collection Trust for sale at palace shops and online
The worldwide buzz surrounding the the first child of William and Katherine, Duke and Duchess of Cambridge, is expected to lift UK retail sales in a similar way to the royal couple's wedding in 2011.

Professor Joshua Bamfield, Director of Centre for Retail Research (CRR) comments: "It is no great surprise that this type of feel good event provides retailers with a welcome boost, with consumer hype generating additional spending.

"These are difficult times for retailers and every catalyst for consumer spending should be utilised as this will bring the economic recovery one step closer."

Spend spend spend
Around £25 million is expected to be spent on festivities celebrating the birth, with consumers splashing out on champagne and party food for informal garden parties at home.

A further £80 million is likely to be spent on souvenirs and toys including items sold overseas, with particular interest from North America, parts of Europe and Australia and New Zealand.

The CCR predicts that 14 million souvenirs with a total value of £56 million and toys (£24 million) are likely to be sold to enthusiasts and collectors. Around £76 million will be spent on books, DVDs and media connected to the event.

Only the best
The baby product industry is expected to enjoy a particular boost as new parents 'trade-up' to more exclusive brands favoured by the Duke and Duchess.

"One of the biggest factors will be the unintentional Royal brand endorsement," explains Bamfield. "The carriage of choice for the royal arrival will no doubt become this year's best selling pram for new and existing parents.

"The 'Kate effect' has already taken the fashion world by storm with each of her choices flying off the shelves within moments of her leaving the house. This trend will follow for the heir's baby grows, rattles, first bike and so on. It's a culture of 'keeping up with the Cambridge's' that isn't going away, albeit a very profitable culture for the retail sector."

Baby memorabilia
The Royal Collection Trust has a small range of baby products for sale, with all profits used for the upkeep of the royal palaces. The collection includes children's mugs, a royal guardsman's style sleepsuit and a child's bear skin hat.

Hundreds of high street stores and small independent brands are getting in on the action too, with everything from HRH baby gift sets and silver jewellery charms, to personalised art prints and commemorative ceramics.

However it is official palace memorabilia that is likely to offer the most appeal and investment potential, as well as anything directly linked to the Duke or Duchess.

"The Duchess of Cambridge has proved a hit among collectors, with news of her pregnancy providing a huge surge in the value of her memorabilia," explains Paul Fraser from Paul Fraser Collectables.

In 2012, PFC Auctions sold the first slice of cake from Kate and William's wedding for an impressive £1,917 ($3,085), while the infamous see-through dress which first attracted William to Kate in a university fashion show achieved £78,000 ($125,535) in 2011.

Fraser adds: "I have personally pursued items previously owned by the Duchess of Cambridge, as I anticipate that there are substantial gains to be made in the future."

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British Bailiffs are turning ugly

Sarah Coles — 2013-06-18T08:00:00+00:00

Filed under: Debt, Your Rights

The booming multi-million pound bailiff industry is leaving Britons feeling threatened and powerless. And thanks to increasing numbers reaching the end of their financial tether, thousands more are at the mercy of the bailiffs.

So just how bad have things become, and what are your rights?

Figures suggest the five biggest bailiff companies earn a combined revenue in excess of £60 million, as cash-strapped Britons increasingly run up unaffordable debts.

More suffer

Citizens Advice says that there has been a 38% increase in problems with private bailiffs in the last five years. Last year alone, the charity helped with a total of 60,652 problems with bailiffs.

The biggest problems relate to a series of different kinds of threats made by the bailiffs. Some two in five threatened the use of force to get in, while 16% said they would call the police to gain entry. In reality they have to be invited in, or walk in through an open door. They cannot break into your property.

A quarter threatened to take items that are banned from removal by bailiffs, and 29% threatened to seize goods that belonged to someone else. You have rights here too. They can take luxury items such as your TV or games console, but cannot take essentials such as your work tools, fridge or cooker, and they can't take someone else's belongings - if you can prove that the item in question belongs to someone else.

Unsurprisingly in 78% of the cases, bailiff action has brought on stress and anxiety. In 35% of cases bailiff action has exacerbated people's mental or physical health problems. Citizens Advice Chief Executive Gillian Guy said: "We see cases where bailiffs overstate their powers, act aggressively and bump up debts by levying excessive fees and charges."

Government action

Central government has been moved to take action, bringing in new guidance for bailiffs in an effort to tackle heavy-handed tactics. The new rules set out that councils should no longer be collecting 'contractual kickbacks' from bailiffs. Shockingly this has been common. For example the north-west London borough of Harrow was expected to recover £1 million by contractually making its bailiffs hand over 8% of their fees.

The rules also warn against employing those seeking to exploit residents through 'phantom visits' or excessive fees. So-called 'phantom visits' are essentially just putting a letter through the letterbox without trying to speak to anyone or negotiate repayment - for which bailiffs charge exorbitant fees.

Communities Secretary Eric Pickles said: "It is unacceptable for councils to employ burly bailiffs with heavy-handed tactics like kicking down doors, making phantom visits or charging excessive fees - it is unfair and damages a council's standing in the community. Today our new guidance is crystal clear: it is time to stop the dodgy practices where town halls collect contractual kickbacks from bailiffs that will do almost anything to make money."

But does it go far enough?

Joanna Elson, Chief Executive of the Money Advice Trust, said it doesn't: "We are pleased the Government sees fit to improve bailiff practices, but are concerned little will change as a result of today's announcement" she said.

"Advice charities like ours have worked long and hard with successive Governments to try and resolve the bad practice from bailiffs that our advisers hear on an ever-increasing basis. Unfortunately the changes announced do not tackle our most basic concerns about protecting vulnerable people from bad practice."

"There remains no independent oversight of the bailiff industry, no independent complaints body to make it easy for people to report bad practice, and no clear sanctions for bailiffs who break the rules. Additionally, there is no clarity that the new fee structure will not increase what bailiffs can charge people in debt."

Protect yourself

Citizens Advice is calling on local authorities to protect people from bailiffs. Guy says that given that a third of problems with bailiffs are over council tax debts, councils ought to help people early on who are struggling to pay their bills.

However, in the interim, the only way to stay safe from bailiffs is to act before it gets to this stage. Talk to those you owe money to before things get out of hand, and ask for repayment terms you can afford to stick to.

If it's too late, talk to a debt charity like StepChange or the Money Advice Trust. They will negotiate with lenders and people like the council for you, or help you understand alternative options open to you such as an IVA.

They don't have a magic wand: they won't make the debts go away, but they should avoid the risk of a heavy-handed bailiff appearing at your door.

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UK care home death rate soars

Adrian Holliday — 2013-06-18T07:32:00+00:00

Filed under: News

Death rates in UK care homes are soaring. A decade ago there were an estimated 38,000 deaths in care homes a year. Last year the death rate hit more than 103,000, according to new figures uncovered by Professor Brian Jarman at Imperial College London.

The new data raises serious questions about the quality of UK residential care.

More scrutiny

Professor Jarman, who analysed mortality rates at Mid Staffs, is clearly worried. "As we are finally getting the scrutiny we need in hospitals," he told the Mail, "deaths are being exported to care homes where they not well regulated. It really beggars belief."

The worry has deepened on analysis which claims that up to 27% of care homes in England have not submitted death rates to the Care Quality Commission (CQC), the national regulator, despite a legal obligation to do so. The CQC is also now looking at data from the BBC's Panorama program.

Neglect allegations

Last night's program focused on two elderly women who were, it was claimed, mistreated in their residential care homes. Following an inspection by the CQC of Poplars Care Home in Mountsorrel, Leicestershire, the county council acknowledged that one woman, Kathleen Reid, 88, died of neglect.

The Care Quality Commission says a third of care and nursing homes in England do not meet all the necessary standards.

Not acceptable

"We are going to be absolutely clear about what is acceptable and what isn't acceptable," David Behan, the chief executive of the CQC, told Panorama. "There's too much poor care in this country and we need to ensure that that is improving, or providers cease to exist."

If you are worried about a relative or the quality of care in a home you can call Age UK Advice for free on 0800 169 6565, or visit www.ageuk.org.uk. You can also complain to your local authority.

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Court dismisses attempt to ban bookies

Sarah Coles — 2013-06-18T07:30:00+00:00

Filed under: News

Newham Council failed in its efforts to ban Paddy Power from opening another shop in the borough. It argued that bookies attract underage gambling, drinking and violence. It also highlighted that it believed the shop's profits would come largely from gaming machines rather than traditional betting.

The court disagreed, so what does it mean for the UK's high streets?

Newham

Newham already has more than 80 betting shops, and took a stand against a new one. It originally rejected Paddy Power's application for planning permission, the bookies won an appeal, and this was the council's attempt to overturn the appeal ruling.

However, the judge decided that there was no evidence that the betting shop would attract anti-social behaviour or crime, and he ordered the council to pay £33,900 costs. Judge Goldspring said: "I find it significant the police did not object to the licence and agreed conditions. One would have thought, that if the concerns of the local authority were evidenced and well founded, the police would have said so then and at this appeal."

Spread

The proliferation of betting shops on the high street came on the back of the 2005 Gambling Act, which relaxed planning rules in order to allow more of them. According to The Independent, Councillor Ian Corbett, executive member for the environment, described current legislation as "toothless in dealing with the clustering of betting shops and the proliferation of high stakes gaming machines".

Campaigning MP, David Lamy, told the Daily Mail: "This was a high-profile case being watched very closely and I have no doubt now that this will be a red rag to bookmakers to go for it, and take the opportunity to move into high streets up and down the country in even bigger numbers."

Concerns

The result may mean more betting shops, which will worry many people. A survey by the Local Government Association found that 68% of people are against existing rules that allow betting shops to take over banks and building societies' premises without planning permission. It also showed worries of 'clusters' of shops such as betting shops, sex shops and takeaways.

Sir Merrick Cockell, Chairman of the LGA, said: "This opinion poll shows local people want government to give councils the powers to tackle unsightly clusters of sex shops, bookies and takeaways that can blight so many of our high streets. People want action so the places they live, work and shop can be revitalised to reflect how they want them to look and feel."

"Councils want high streets to thrive and are on the side of local people and are ready to put a stop to high numbers of unsavoury takeaways, betting shops and strip clubs where there is a demand to do so. High streets across the UK have suffered a cardiac arrest and it is now time to let local authorities step in and deliver the necessary life support."

Positives

However, there are those who highlight that in themselves, there is nothing wrong with betting shops. In a statement following the ruling, Paddy Power said: "Paddy Power makes a positive contribution to local communities in which it operates."

"The UK high street is currently facing unprecedented challenges and our expanding retail presence adds much needed vitality and footfall to localities around the country as well as vital employment. Paddy Power is a responsible operator that takes proactive measures to offer a safe and responsible leisure experience for its customers and the community."

There's an argument that if you want a strong and thriving local high street, a bookies opening up will drive footfall to the other shops on the street. It will mean a shop front that is rented and cared for, rather than standing empty and symbolic of the decline of the high street.

It was this thinking which encouraged the government to change the rules in May this year to allow shops to switch use and become bookmakers without planning permission (for the next two years) in order to prevent the spectre of ghost towns across the country.

But what do you think? Would you rather have a new betting shop or an empty shop on your high street? Let us know in the comments.

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Two call centres from BBC series are fined

Sarah Coles — 2013-06-18T07:00:00+00:00

Filed under: Your Rights

Two call centres which feature in the BBC Three series, The Call Centre, have been fined £225,000 for nuisance calls. The Information Commissioner said that the fine included the first in the UK relating to Payment Protection Insurance cold calls.

So what did they do wrong, and how can you protect yourself against nuisance calls?

The fines

The companies in question were Nationwide Energy Services, which received a penalty of £125,000, and We Claim You Gain, which was fined £100,000. Both companies are part of Save Britain Money Ltd based in Swansea.

The penalties were issued after the companies were found to be responsible for over 2,700 complaints to the Telephone Preference Service (TPS) or reports to the ICO using its online survey, between 26 May 2011 and end of December 2012.

The TPS is a UK database, which allows consumers to opt out of receiving marketing calls. Before a sales company is allowed to contact you, it needs to check the TPS to ensure you have given firms permission to contact you. This is a legal requirement under the Privacy and Electronic Communications Regulations governing electronic marketing.

However, according to the Information Commissioner, neither company carried out adequate checks to see whether the people they were calling had registered with the TPS.

ICO Director of Operations, Simon Entwisle, said:"The public have told us that they are fed up with the constant bombardment of nuisance calls. While the activities of Nev and his call centre employees have provided entertainment for many, they hide a bigger problem within the cold calling industry. People have the legal right not to receive marketing calls and these companies have paid the price for failing to respect people's wishes."

The ICO has now issued penalties totalling over three-quarters of a million pounds to companies who've breached the Privacy and Electronic Communications Regulations. A further 10 investigations are ongoing.

Ongoing problems

However, clearly a major problem still remains with companies flouting the rules. As we reported last week, a survey by Which? found that many consumers are unhappy with the TPS. While people registered with the TPS report a decrease in nuisance calls after signing up, they received on average 10 unsolicited calls in the last month. Around six in 10 people registered with the TPS are not satisfied with the service.

Which? executive director, Richard Lloyd, said:"Consumers are sick and tired of being bombarded with nuisance calls and texts. The current system is failing the public and given the scale of this problem, it's time for the Government to step in. We urgently need to see a new approach, new laws and new technology to tackle this scourge on people's lives. People must be put back in control of their personal data."

Entwisle added:"While we're pleased with our success to date, there is still more we can do, and we welcome discussions in the House of Commons last week around ways to improve the law around unwanted marketing calls and texts. We'd like to see it made easier for us to issue penalties to companies who are breaking the rules. Similarly, everyone involved seems to agree that the rules on how consumers give their consent to receive calls needs to be clearer."

So what can you do?

Clearly the TPS is not perfect, but at the very least we ought to be signed up to it, so that those who check the database will avoid calling.

If after signing up you receive a nuisance call, you can report it on the ICO online reporting tool. The ICO has received over 200,000 responses since the survey was setup in March last year and it uses reports to drive enforcement action.

If after all of this you are still being bothered, you could always follow the lead of Richard Herman, a 53-year-old business owner from Sunbury on Thames, who told a nuisance caller he would charge for his time if they called again, and when the calls continued he issued an invoice. When the invoice remained unpaid for 30 days he took them to the small claims court - where they settled the matter out of court.

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Doubts raised over value of HS2

Press Association — 2013-06-18T06:30:00+00:00

Filed under: News

Demand for the HS2 high-speed rail project has "likely been overestimated" and the £33 billion project does not offer good value for money, according to a report by a think-tank.

Evidence that HS2 will promote economic growth or tackle the north-south divide is "limited", the report from the New Economics Foundation (NEF) said.

The line, whose first phase from London to Birmingham runs through picturesque Tory heartlands, will be "carbon intensive and environmentally damaging", the foundation added. It was "time to invest in transport away from London" with the money earmarked for HS2 being "better spent elsewhere", the report said.

The NEF said: "Demand for HS2 has likely been overestimated by oversimplified government modelling." The foundation suggested alternatives for the money that will be spent on HS2.

It said £10 billion could transform rail infrastructure in northern England and the Midlands, creating new and faster east-west rail links, redeveloping stations and electrifying regional rail lines, or could overhaul the East and West Coast main lines, increasing the speed, capacity and reliability of north-south rail travel with less environmental damage than HS2.

It also estimates £6 billion could upgrade mass transport in Birmingham, Leeds, Manchester and Liverpool, including investments in large light rail schemes and bus networks, while £4.5 billion could roll-out superfast fibre optic broadband across the country, which would boost business, reduce pressure on transport and future-proof British infrastructure. Meanwhile, £2 billion could make cities outside London better for cycling and walking.

David Theiss, a researcher at the NEF, said: "HS2 is the largest transport investment in the UK's history. At the moment it amounts to a £33 billion gamble.

"Our research shows the Government is backing the wrong horse. Instead of pouring billions of pounds into a single line that will take 20 years to complete we should be spreading our bets on a wider range of transport investments that offer better value for money."

Transport Minister Simon Burns said: "Demand for long-distance rail travel has doubled to 125 million journeys a year in the past 15 years and by the mid 2020s the West Coast Main Line will be completely full. HS2 will provide the capacity needed in a way that will support thousands of jobs and billions of pounds worth of economic benefits.

"It is not a case of HS2 and nothing else. During 2014-19 we are investing over £9 billion on the current rail network while latest figures show that over a one-year period we spent upwards of £8.7 billion on our roads. We will continue to make significant investment into all modes of transport across the country."

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Expand Heathrow: don't build more

Press Association — 2013-06-18T06:00:00+00:00

Filed under: Holidays

Expanding Heathrow would be cheaper, quicker and better for the economy than creating a new hub airport, according to a report from Heathrow bosses.

Adding capacity at Heathrow would also be better for passengers and for jobs than a new hub airport at Stansted or in the Thames Estuary, said the report.

Expansion at Heathrow could be delivered around seven years quicker than the time taken to build a new hub airport.

Creating a new airport would increase travel times for 90% of hub passengers, with the economic cost of longer journeys amounting to a possible £26 billion.

The report said that adding capacity at Heathrow would also be better for taxpayers, with a new airport needing around £25 billion of public money.

More than 76,000 people directly employed at Heathrow would face re-location or redundancy if Heathrow was replaced by a new airport. The report also said that the area around Heathrow in west London was home to 202 of the UK's top 300 company headquarters.

Mayor Boris Johnson is one of the leading supporters of a new Thames Estuary airport and vehemently opposes the building of an extra, third, runway at Heathrow.

Labour backed the third runway plan in 2009 but the expansion was scrapped by the coalition Government, which has now set up an Aviation Commission under former CBI chief Sir Howard Davies to look into the whole question of airport capacity.

The report has been compiled by Heathrow Airport with architectural and planning consultants AECOM and Quod. It will form part of Heathrow's submission to the Davies Commission. The commission will publish its interim report by the end of this year and its final report in the summer of 2015.

Heathrow chief executive Colin Matthews said: "Britain already has one of the world's most successful international hub airports in Heathrow. Expanding Heathrow will put Britain ahead in the global race, connecting UK business to growth more quickly and at less cost to the taxpayer than any other option for new capacity."

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Netflix seals Dreamworks TV deal

Press Association — 2013-06-18T05:30:00+00:00

Filed under: TV, Phone & Broadband

Netflix is to air original television programming from Dreamworks Animation in a deal described as a major coup for both companies.

Financial details were not disclosed but Netflix said the multi-year agreement is its biggest deal for original first-run content. It includes more than 300 hours of new TV episodes in a deal starting in 2014.

The transaction helps Netflix compete with pay TV channels such as HBO and Showtime, and it gives Dreamworks a potentially lucrative outlet for its shows as it tries to shed its reliance on two or three big-budget movies each year.

Netflix doubled down on original children's programming, hoping to strengthen its push to become a family entertainment brand. The new content should ease some of the pain of losing a range of children's shows from Viacom's Nickelodeon network, including future episodes of Dora The Explorer, which Amazon snapped up for its streaming service in early June.

"This is arguably a groundbreaking deal," said Tuna Amobi, a Standard & Poor's equity analyst who covers both Netflix and DreamWorks Animation.

While concerns remain about how much the deal will cost Netflix in the end, the company said it is a global deal that will allow it to debut the original series in the 40 countries where Netflix operates. That could help spread the costs over more territories and more subscribers if Netflix continues to grow overseas.

Investors hailed the deal as a win-win. Netflix shares rose 7.3%, while DreamWorks was up 4%.

The deal suggests DreamWorks will significantly ramp up its production of TV shows. Currently, it only produces Dragons: Riders Of Berk for Cartoon Network, which completed a run of 20 episodes at 23 minutes each - less than eight hours of content in all - in March.

A second season of Dragons is set for release in the autumn, and Netflix had already contracted with DreamWorks for a series based on its upcoming film Turbo. But the deal suggests that several new series will have to debut each year to fulfil the industry standard deal length of five to seven years.

New series will be based on characters either from future film hits, past franchises like Shrek, or even older hits, including the hundreds of characters like Casper The Friendly Ghost, which DreamWorks acquired when it bought Classic Media last July.

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Estate agents forced to come clean

Christina Hoghton — 2013-06-18T05:00:00+00:00

Filed under: House Prices, Your Rights

Estate agents have a bad reputation, sometimes justified, often not.

But recent guidelines published by the Office of Fair Trading mean that there should no longer be any grey areas when it comes to what an agent needs to tell a buyer. You have the right to know the facts about a property you are interested in - warts and all.Home Truths
It's long been the case that estate agents are obliged to tell you the truth if you ask them a direct question, but the difference is that they should now be forthcoming with information that they suspect will affect your opinion of a property - even before you come to view it.

Agents have been told by the OFT that they need to comply with the Consumer Protection from Unfair Trading Regulations 2008 (known as CPR) and the Business Protection from Misleading Marketing Regulations 2008 (BPR). And these are more powerful in terms of the protection afforded to the buyer than the current Property Misdescriptions Act, which will be repealed in October.

So the CPR and BPR legislation isn't new, but the way it will now cover estate agents and letting agents is, and it effectively means tougher rules to protect buyers.

But don't agents work for the seller?
Of course, it's the seller that ultimately pays the estate agent, and it's the agent's job to get the best price for their property.

However, operating under CPR and BPR means that the estate agent has to understand the buyer is also a consumer in the process, so there is a duty of care and a responsibility to tell the truth. The new regulations state that it is the 'consumer' who must be treated fairly.

Stuart White, managing director of estate agent Century 21, said: "This is a fundamental change to the Property Misdescriptions Act 1991, under which an agent was only obliged to disclose something if asked. It has never been the case that an agent has had the ability to hide information, however the new rules change this status by ensuring that the consumer is treated fairly, which in essence means potentially adverse information should be disclosed."

So what does it mean to you as a buyer or seller?

Upfront disclosure
The new rules could mean that as well as describing everything accurately, which has always been the case, agents need to be upfront about problems. So if there is a sewerage plant at the end of the garden, it could potentially break the rules if the agent deliberately crops this from a photo.

To complicate matters, the new regulations don't specify precisely how the legislation applies in individual scenarios. Instead, it is left open to interpretation by the agent, and according to the Property Ombudsman Christopher Hamer, they should err on the side of caution by openly describing all aspects of the property.

Why a previous buyer has dropped out
Buyers should be told if a previous buyer has pulled out of the purchase of the property because of a problem that has arisen. This would typically be something that has come up during the survey, but it could also be a problem that has been highlighted during the conveyancing process - i.e. something the solicitor has found.

If the survey highlighted a structural defect, the Ombudsman says this is something that the agent should make clear to all interested parties, not only if they are asked.

White says this is already standard practice at Century 21 and many other agents. "In the particular instance of a bad survey, an agent would disclose this to a potential buyer as a viewing was being made, good estate agency practice has always been that adverse survey information should be disclosed as it will be generally picked up on all surveys and it is much better to fully inform a buyer if this was the case."

Nearby nasties
Agents should no longer hide material facts that might put off someone viewing or offering on a property. For example, according to the Ombudsman, if a motorway is 200 yards from the door, this should be clear on the picture and description - it shouldn't be assumed that the buyer will notice this from the map alone.

He even reckons that it should be mentioned if a property is next door to a primary school, because some buyers would not want to travel a distance to view a property with potential noise.

However Hamer does give an example where the agent would not be required to disclose a potential issue. He said that if a neighbour kept a large number of pets (in this case seven dogs and 14 cats), this wouldn't need to be disclosed upfront, although should be mentioned if a potential buyer asks about the neighbours.

But he offers the following examples of things that agents should disclose: A previous murder having taken place in the property, woodworm infestation, loud church bell ringing nearby, lack of planning permission or building regulations on an extension, or previous flooding.

On the QT
One thing that does still remain between the buyer, the agent and the seller is the exact amount of any offer that has been made. The agent shouldn't need to tell other interested parties what a buyer has offered, although of course they will let another interested party know if they make an offer that is below yours.

White says: "Our understanding is that the value of any offers received would not be disclosed as clearly this isn't adverse information that needs to be presented to a consumer. A good estate agent would always ask a buyer to put in their best offer and then take this offer to their vendor client to determine if it was acceptable."

Ask questions
The move to bring agents under the CPR and BPR rules potentially affords buyers a lot more protection. But while agents are now meant to disclose problems upfront, it could still be wise to specifically ask them if they are aware of any problems that might affect your opinion of the property. It might also be a good idea to do this via email so you can prove exactly what questions you asked.

Of course, sellers may well find the new rules too onerous, as the principle of 'buyer beware' seems to have gone out of the window. But as White points out "many sellers will in turn become buyers so it certainly will make the process consistent".

And remember, if a buyer is fully aware of any nasties before they make an offer, there is far more chance of the sale making it through to completion, which is better for everyone.

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AA bond move fuels break-up talk

Press Association — 2013-06-18T04:30:00+00:00

Filed under: Investing

The owner of the AA and Saga is refinancing £3 billion of debt in a move which could clear the way for a break-up of the group.

Private-equity-owned Acromas Holdings said it is issuing bonds to pay down bank loans, taking advantage of benign conditions in bond markets.

That could allow the group to sell off assets such as roadside recovery chain the AA, leaving over-50s holiday firm Saga to float on the stock market, reports said.

Saga and the AA were combined in a £6.2 billion deal at the height of the credit boom in 2007 to form Acromas, one of the UK's largest private equity-owned companies.

The business was funded by £4.8 billion of bank debt. It also owns brands including BSM driving school and holiday firm Titan Travel.

Acromas is owned by private equity firms CVC, Permira, and Charterhouse, with staff also holding 20% of the group.

The first tranche of its debt is due to expire in September 2015 and the refinancing will allow it to take advantage of cheaper bond rates by replacing high-interest loans with longer-term debt.

The group has around 18 million customers and employs about 38,000 staff.

An Acromas spokesman said: "We can confirm that we are considering issuing bonds, the net proceeds of which would be used to replace existing bank debt. There are no payments to shareholders and no change in ownership of the business.

"Due to US and other regulatory considerations we are unable to comment further."

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Firm attacked over all-male board

Press Association — 2013-06-18T04:00:00+00:00

Filed under: Career

A FTSE 100 company with no women on its board has been attacked as "outdated" by a Government spokesman in the House of Lords.

Baroness Northover, speaking for the Department for Business Innovation and Skills, hit out at engineering group Melrose as she faced calls from peers for more action to boost the number of women in boardrooms.

"One of the remaining FTSE 100 companies that still has an all-male board, Melrose, says it is 'a leading British-based investment company specialising in the acquisition of and performance improvement of underperforming businesses'.

"With no women on its board, how is it to ensure that its companies are geared to the 21st century if it is so outdated in its own approach?"

For the Opposition, Baroness Thornton said research showed progress in the past six months in increasing the number of non-executive directors in FTSE 100 companies had "plateaued".

She demanded: "What are the Government going to do next? It seems they have got the low-hanging fruit on this issue.

"If the Government has set its face against quotas, what do you suggest Melrose are going to do about the abysmal lack of gender diversity, of ageism and ethnic diversity in the country's boardrooms?"

Lady Northover agreed that progress needed to continue.

"There was an indication of plateauing, it now seems to be improving again," she said.

"Business needs to show it is making progress so that the Government can say that no quotas are needed, but they are there as a backstop."

https://www.gov.uk/government/organisations/department-for-business-innovation-skills(Department for Business Innovation and Skills)

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