Money

Crow warns against pension attack

Press Association — 2013-05-23T02:30:00+00:00

Filed under: Pensions

Any attack on pensions of Transport for London (TfL) staff could lead to the biggest wave of industrial action on the Tube "for 30 years", a union leader has warned.

London Assembly Conservative member Gareth Bacon accused TfL of running "a gold-plated pension scheme" for its workforce, with contributions from the taxpayer six times higher than the contribution of TfL's average employee.

RMT transport union leader Bob Crow responded by saying his union would not tolerate any erosion of workers' rights and agreements.

Mr Crow added: "Any attack on pensions, passes or other hard-won conditions of service would be met with the biggest wave of industrial action on London Underground in 30 years."
Mr Bacon said that figures showed that TfL staff pensions had cost the taxpayer £1.6 billion in employer contributions over the period 2004 to 2011.

During this period, the amount contributed by TfL into workers' pension pots had risen by 54%.

He said that currently the fund was in deficit, so including deficit payments, the employer was contributing over six times the amount of employees.

Mr Bacon said: "With budgets so tight, and London's transport infrastructure so desperately in need of currently unfunded investment, it is time that the whole pay deal for TfL staff is reviewed.

Mr Crow said: "If members of the London Assembly think that they can play politics with our members' working conditions and benefits on London Underground then they should think again."

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Squash maker cutting home town ties

Press Association — 2013-05-23T02:00:00+00:00

Filed under: Career

Robinson's squash maker Britvic is to close its factory in the city where it was founded in the 19th century under plans to axe up to 400 jobs.

The group is cutting its ties with Chelmsford in Essex, where it was founded by a Victorian chemist making soft drinks, by closing a Fruit Shoot and J20 fruit drinks factory with about 230 job losses.
It is also shutting its Pennine Spring water factory in Huddersfield with 40 job losses and closing a warehouse in Belfast employing 20 staff under the plans to merge its UK and Irish operations - which will result in 300 to 400 job losses.

The soft drinks giant announced cost cuts totalling £30 million over three years as it reported a 50% surge in pre-tax profits to £37.5 million for the 28 weeks to mid-April. It said the cuts aim to improve returns for shareholders and comes ahead of a Competition Commission decision on its merger with Irn-Bru owner AG Barr, expected by July. It will then decide whether to go ahead with the deal.

Britvic last year moved its headquarters from Chelmsford to Hemel Hempstead in Hertfordshire and said remaining office staff will transfer to its new site, ending about 150 years' association with the city.

Britvic, which takes its name from its predecessor the British Vitamin Products Company, has started a consultation with staff and the sites will close in the first quarter of next year.

The Chelmsford factory was built in 1954 and makes soft drinks in cans, glass and plastic bottles. Work will transfer from there to other sites in the UK, Ireland and France. It also has major operations in east London, Norwich and Leeds.

The Huddersfield site and natural spring was acquired by Britvic in 2004 from lemonade maker Ben Shaw's, and bottles water under the Drench and Pennine Spring brands. A spokeswoman said Britvic will focus on Ballygowan, its Irish water brand.

Chief executive Simon Litherland said: "We regret the potential loss of jobs caused by the change and are committed to supporting affected employees. I am confident that the execution of this strategy will build a more successful Britvic and lead to a much stronger financial performance."

The job cuts came as Britvic announced a slight increase in revenues to £639.2 million for the six months. The group hailed a significant turnaround amid tough consumer markets, as price hikes helped compensate for weaker volumes.

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£400 Million Win for Carillion Plc

The Motley Fool — 2013-05-23T01:00:00+00:00

Filed under: Investing

Carillion (LSE: CLLN), one of several UK construction firms struggling against a prolonged weakness in its home market, announced the winning of the £400m Phase I of the redevelopment of the Battersea Power Station.

This is a nice local win for Carillion, which has been trying to shift its business away from the struggling UK market and into those with stronger demand, specifically the Middle East and Canada -- the company hopes to be doing £1bn worth of business in each market by 2015.

Adding the Battersea Power Station job to its list of job wins this year, Carillion has stirred up new and probable orders of £2.6bn so far in 2013 -- on a pace to surpass last year's £5.2bn. This is reassuring for management and shareholders as the closing order book for 2012 was down £1bn at compared to the previous year.

It has been tough going among UK construction firms as government tightens its belt and business holds back on investment. Last November Morgan Sindall's (LSE: MGNS) CEO fell prey to market conditions, departing as the company issued a profit warning for the year. And just last month Balfour Beatty (LSE: BBY) issued a profit warning of its own, blaming deteriorating conditions in the UK market.

Shareholders are hoping that recent job wins -- Carillion also announced winning its bid to build the new Royal Liverpool Hospital -- mean the company can rise above its peers, but the market doesn't appear to be so sure.

Carillion trades on a P/E under 7 and its forecast yield is 6.8% after the company increased its dividend by 2% last year, despite a 6% drop in underlying earnings per share. For comparison, Balfour Beatty is trading at 10 times forecast earnings with just under a 6% yield and Morgan Sindall is on a P/E of 9 with a yield just under 5%.

A near-7% yield is tempting, but income seekers should be wary. Carillion's net debt trebled last year -- jumping from £50.7m to £155.8m -- as the company's operations barely generated any cash (before restructuring costs). Unless the company sees material improvement in its operations, home and abroad, the current payout could be in jeopardy.

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The Fixer: Motorhome insurance

Jess Bown — 2013-05-22T15:30:00+00:00

Filed under: Motoring

Have you been left out of pocket due to poor service or sharp practice? Do you have a money problem that won't go away?

It can seem impossible to get a fair result when you are battling a financial issue alone. But never fear! The AOL Money Fixer is here to help.

Dear Fixer,
I recently retired, and am planning to spend some of the next few years travelling around Europe with my wife.

This weekend, I bought a secondhand motorhome to take on our travels, which we are hoping to start with a trip down to Devon and Cornwall in a couple of weeks. However, I need to insure the motorhome before taking it out on the road.

I would like to take out a policy that also covers me to drive it on the Continent, as we are planning a trip to France and Italy later in the year.

As the motorhome will have a lot of our things in it on our travels, I also want to make sure that we have sufficient contents cover to protect us if someone steals the vehicle. Clearly, standard car insurance will not suffice.

But as this is my first motorhome, I do not know what sort of policy will or whether I need a continuous policy or to take out a separate one each time we go on a trip. Can you offer any advice?

T Cooper, Watford

Dear Mr Cooper,
As you suspect, motorhomes need specialist protection. Like cars, however, they must be insured at all times - even if they are parked on your drive or in a garage for weeks or months on end - due to the Continuous Insurance Enforcement rules.

In fact, registered motorhome owners who do not insure their vehicles therefore risk a fine of at least £100 as well as court action (unless the vehicle is registered with the DVLA as off the road with a Statutory off Road Notice).

The levels of cover available are also similar to those for cars. Third party only is the minimum required by law and covers you in case you cause injury to others or damage to others' property, third party fire and theft also offers protection against fire damage and the theft of your motorhome, and comprehensive cover does all the above and pays out for damage to your own motorhome in an accident where you are at fault.

Once you have decided what level of cover you want, it is vital to check that the policy you are considering is suitable for the type of vehicle you own.

A policy that offers cover for a converted transit van, for example, may not be sufficient for a vintage camper van, while a larger vehicle may require a specialist policy.

Other features to look out for include contents cover that will replace your things in the event of a theft and a sufficiently high mileage cap for the journeys you plan to make.

As you are heading to Europe later in the year, you will also need a policy that either includes European cover, or can have it added on (a standalone policy may prove cheaper so look into both options).

Either way, you will also need to ensure that it extends to the territories you are planning both to visit and to travel through en route.

And for extra peace of mind, a European breakdown cover policy for your motorhome is also a sensible item to put on your pre-holiday checklist. Happy travelling!

The Fixer

Whatever your financial problem, write to themoneyfixer@aim.com and The AOL Money Fixer will get on the case.

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Energy giant warns of price rise

Press Association — 2013-05-22T12:30:00+00:00

Filed under: Utilities

Energy giant SSE has warned that prices will continue to rise - even after profits from UK households jumped by a third following the cold winter.

The latest windfall was described as a "slap in the face" for customers after the company was last month hit with a record fine for mis-selling and in October raised its tariffs by an inflation-busting 9%.
Full-year results showed that profits from SSE's retail division, which supplies energy to UK households, were up to £410.1 million in the 12 months to March, from £321.6 million the year before.

They revealed that earnings just from energy supply were up by an even-greater 34% from £271.7 million to £364.2 million when falls in areas such as boiler installation and meter supply were stripped out.

Overall 2012/13 pre-tax profits at SSE, which trades as Southern Electric, Swalec and Scottish Hydro, were up 6% from £1.34 billion to £1.41 billion.

It said it took more money from UK households because the weather was colder in 11 of the 12 months of the year than it was the year before. Gas consumption was up 21% while electricity rose 5%. Customer numbers fell 80,000 to 9.47 million.

SSE said it was disappointed that it had to hike tariffs in October, blaming costs including wholesale energy price rises. But it warned that more were in the pipeline because it was facing additional costs of more than £80 per dual fuel customer in 2013/14.

"Unless there is a sustained reduction in prices in wholesale gas and electricity markets, it is highly likely that these additional costs will eventually have to be reflected in higher prices for household customers," it said.

The company added that it intended to "resist this trend of higher costs for as long as possible to shield customers from the unwelcome impact of higher prices".

Richard Lloyd, executive director of consumer group Which?, said said more needed to be done by regulators to keep prices down, encourage easier switching between suppliers and to make bills clearer. He said: "Such a large profit announcement will be a slap in the face for SSE's customers who have been hit with an inflation-busting price rise and seen this company given a record-breaking fine for mis-selling."

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How to tell if a £1 coin is fake

lovemoney.com — 2013-05-22T12:00:00+00:00

Filed under: Savings & ISAs

Three men have just been jailed as a result of their plans to flood the UK with £1.5 million of fake pound coins. Here's how to spot a fake.

Three men have been jailed as a result of their plot to transform gold-coloured discs into £1.5 million-worth of fake £1 coins.

The discs were found in a shipping container in Waltham Abbey, Essex, while a car nearby was found to contain £30,000-worth of completed fake coins.

The three men were sentenced to jail terms of between two and seven years.

A fake £1 coin in your wallet is not only absolutely worthless but it's also illegal to pass it onto anyone else. Nevertheless, you might do so quite innocently as figures estimate that as many as one in 36 coins in circulation are counterfeit. Stagecoach is just one high-profile company that has noticed a recent increase in the number of fake coins.

Spot the difference
Counterfeit coins are becoming a closer match to the real thing, making it incredibly difficult for consumers to spot the difference. In fact, we often only notice we have a fake when it's rejected by a vending machine, ticket machine or a parking meter. Of course, it's a huge concern that the counterfeiters are becoming more sophisticated when it comes to passing off fake coins as legitimate ones.

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How can you tell if a £1 coin is a fake?
Fakes coins are most definitely not easy to spot, but here are ten tell tale signs you should always look out for:

The coin has been circulating for some time according to its date of issue, yet it looks surprisingly new.

The design on the back of the coin doesn't match the official design for the year it was issued. You can check which designs were used in each year at the Royal Mint website. £1 coins were first introduced in 1983 and the design has changed nearly every year since. Check out Britain's £1 Coin Designs which shows the designs that should appear on the reverse of the coin for every year from 1983 to 2010. Remember, if the date and the design don't match up, you've got a fake.

The lettering or inscription on the edge of the coin doesn't match the corresponding year. Take a look at the Royal Mint's Coin Guide which will show you the correct specifications and inscriptions on £1 coins according to their year of issue.

The designs on both sides of the coin aren't well defined compared with a real coin.

The alignment of the design is at an angle. Hold the coin so that the Queen's head is upright and facing you. The design on the back should be upright too.

The ribbed edge of the coin is poorly defined.

The lettering on the edge of the coin is uneven, badly spaced or indistinct.

The colour of the coin doesn't match the genuine article. Fake coins are often more yellow or golden than the real thing.

Fake coins are often thinner and lighter.

Remember, most counterfeit coins won't be accepted by vending machines unless the forgery is particularly good. This is a clear indication that you have a fake.

So now you know exactly what to look out for. If you do find a counterfeit coin, make sure you hand it in to your local police station so that it can be taken out of circulation.

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Couple see red over £163,000 Orange mobile bill

Sandra Haurant — 2013-05-22T11:30:00+00:00

Filed under: Mobile

A couple who held a business phone contract with Orange were shocked to see their company phone bill rocket from the usual £300 a month to a staggering £163,000.

Alan and Carolyn Mazkouri, from Swansea, had used Orange phones for more than 15 years for their electrician business. The monthly bill for 10 phones usually came to £300 a month, but in September they received a bill for just over £163,000, according to the BBC.

The couple, whose case will appear on BBC Watchdog this evening, were "dumbfounded." The demand came after Mr Mazkouri had returned his handset to the shop where he had bought it because it seemed to overheat. The shop replaced the phone, but soon after its service was cut off and they were told this was due to a large bill on the account.

The phone seemed to have been dialling the internet every 20 minutes for three weeks, downloading data equivalent to 15,000 songs or five million emails, according to Mobile News.

Orange agreed to cancel the debt after Mr Makzouri challenged the bill, but an administrative error meant the firm continued to send bills for the following seven months. In the end, the electrician instructed a solicitor to help call off the demands.

Orange has since cancelled all bills relating to the incident and offered £250 compensation by way of apology. A spokesperson for Orange told AOL Money: "We apologise to the Mazkouris for the inconvenience. We have fully refunded all charges from this exceptionally high bill and offered a further gesture of goodwill. We look forward to hearing from them."

Of course, Orange is not the only phone provider to issue eye-watering bills. Georgia Harris was sent a bill for £21,000 by Vodafone after her phone went missing in Barcelona. Thieves racked up a fortune in calls to premium rate numbers on the 23-year-old's phone and Vodafone sent a bill to the rightful owner of the handset. Vodafone waived charges once it decided that the bill was the result of fraudulent use of the phone.

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UK 'still a long way from recovery'

Press Association — 2013-05-22T11:03:00+00:00

Filed under: News

The International Monetary Fund (IMF) has put pressure on George Osborne to change economic course in a critical assessment of the state of the British economy.

Prospects for growth remain weak and the UK is "still a long way from a strong and sustainable recovery", according to its annual economic health check.
Worryingly, assessors warned there is a key risk that persistent slow growth could "permanently damage medium-term growth prospects". After five years of relatively weak activity "additional measures are needed to raise long-term expectations of potential growth", according to the report.

Earlier this month, the Chancellor insisted the Government's plan was working and there would be no change in direction. But the new article four report, which comes after economists spent two weeks in London carrying out an in-depth assessment of Britain's fortunes, is likely to be seized upon by Labour as backing up their calls for a "plan B" to revive the economy.

The IMF said there are encouraging signs of some improvement in conditions, pointing to "notably strong" growth in private sector employment, increased demand for vehicles, and improvements in business and consumer confidence. Despite recent improvements, however, Britain's GDP remains 6% below pre-crisis levels, "making this the weakest recovery in recent history".

It raises concerns that capital investment is proportionally at a post-war low and that youth unemployment levels are high. Consolidation to tackle rising public debt is a "drag on growth" and an a wider strategy is needed, it adds.

The IMF backed monetary policy measures unveiled by the Chancellor in the March Budget and changes to the Funding for Lending Scheme aimed at boosting business growth. It also said the Government's medium term plans have earned it "credibility". "Reducing the large structural deficit over the medium term is essential," it states. But planned fiscal tightening "will be a drag on growth", the IMF warns.

It calls on the Government to consider a range of measures, including bringing forward planned capital investment to fuel growth, and reviewing areas of corporate tax as well introducing reliefs for raising equity. A reform of property taxes and imposing VAT on a wider base could cover the cost of the measures, it suggests. But the IMF issued a warning over Help to Buy, the Government's flagship Budget measure aimed at boosting growth, suggesting there is a risk it would ultimately lead to higher house prices, which would "work against" the aim of boosting access to housing. The Government should also pursue with "greater vigour" investment in infrastructure and banking sector reforms.

Mr Osborne told a press conference to launch the report at the Treasury: "Britain will not duck its economic challenges. We will not avoid the difficult choices we need to make to have a more balanced and sustainable economy that delivers prosperity for our country. The analysis and the scrutiny of the IMF will help us to do that."

Lib Dem minister Danny Alexander told BBC Radio 4 the IMF report showed the coalition's strategy was correct. He said: "I think that far from the kind of great row that was predicted, in fact what we've got here is a sensible contribution, an interesting set of analysis about the British economy which makes clear that the IMF view that the fiscal consolidation that was set out over the medium term is exactly the right strategy that urges us to do some more things to support growth. The things that the IMF recommend, such as bringing forward investment, is precisely what we've been doing."

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Listerine ad banned for 'misleading' oral health claims

Sarah Coles — 2013-05-22T11:02:00+00:00

Filed under: Shopping & Deals

A Listerine mouthwash radio advert has been banned. It claimed that "brushing alone isn't enough" and used the phrase "for total oral health". The advertising watchdog concluded that this could mislead people into assuming that dentists think mouthwash is necessary for oral health.

The maker, Johnson & Johnson, disagrees.

The advert

The advert featured a list of nasty things people put in their mouths over the course of the day, and then a voiceover said: "It's amazing what your mouth goes through, and brushing alone isn't enough. Try the Listerine routine for 21 days and if you don't love how clean your mouth feels we'll give you your money back. Listerine Total Care. For total oral health."

One person got in touch with the watchdog to ask whether the claim 'brushing alone isn't enough' was true, and whether it could be substantiated.

Defence

Johnson & Johnson produced ten different studies in their defence. They said that a 2009 survey of adult dental health showed that despite 75% of the population brushing their teeth at least twice a day, and a further 23% brushing once a day, there were still high incidences of oral health issues.

They also said that Listerine's ability to reduce plaque bacteria was key to their claims, and produced studies to back this up.

They felt that the advert hadn't implied involvement or endorsement by dentist, although they provided evidence that all dentists felt that brushing wasn't enough, because all dentists would also recommend flossing and a 'significant majority' would also recommend mouthwash. One of their studies among dentists rated the importance of using mouthwash as part of oral care as 5.6/10.

Banned

However, all these studies didn't convince the Advertising Standards Authority. They felt that most people would assume that the claim "brushing alone isn't enough" would have been based on the opinion of dentists - and would assume that this meant a mouthwash should also be used.

It said: "Although we understood that most oral health advice emphasised the importance of cleaning in between teeth in addition to brushing, we had not been provided with evidence that it was generally accepted within the dental community that the use of a mouthwash was necessary to maintain oral health. We therefore concluded the claim was misleading and had not been substantiated."

Perhaps they ought to have stuck with Clifford the Dragon.

Robust

Johnson & Johnson subsequently issued a statement in response to the ban. The company said: "We are disappointed with this decision as we believe we have strong evidence to back up the claim that has been questioned."

"The ruling requires that we stop airing the advert in its current form and we will comply with this decision. We stand behind the validity of the claim and are considering our options including the independent review process of the ASA."

"We value the trust that consumers and dental healthcare professionals place in our products and are committed to ensuring open and clear communications with them. It is not our intention to mislead in any way."

It insists that its claims are scientific, based on scientific evidence, with good support from the dental community.

So what do you think? Let us know in the comments.

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HMRC warns about fake tax credits emails

lovemoney.com — 2013-05-22T11:00:00+00:00

Filed under: Scams & Fraud

HMRC has warned people to watch out for scam emails promising tax credit refunds.

As a major advertising campaign launches to remind people to renew their tax credits, fraudsters are gearing up for a major email assault.

Nearly 22,000 scam tax credit emails were reported to HMRC during last year's renewal period from April to July.

Although the tax authorities worked with other bodies to shut down 147 scam websites, more kept being created. These websites were set up in countries far and wide including Austria, Mexico, South Korea, the USA, Thailand, and Japan, as well as here in the UK.

'Failures' in tax fraud crackdown

The scam
These emails usually promise a tax credit refund. The recipient is then directed to a fake version of the HMRC website and asked to submit their personal details, including bank account information.

Here's an example of one we received.

As you can see, it looks fairly genuine and includes the HMRC logo.

HMRC is reminding people that it never asks for personal or payment information via email.

It's asking anyone who receives a scam email to forward it to phishing@hmrc.gsi.gov.uk

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Bid to help customers pay home loan

Press Association — 2013-05-22T10:30:00+00:00

Filed under: Mortgages

Mortgage lenders are stepping up action to help up to 1.3 million interest-only customers who do not have enough cash to pay their loans back.

The Council of Mortgage Lenders (CML) will help lenders to put "effective" strategies in place to tackle the issue at an industry conference in London.
Banks, building societies and regulators will discuss "key issues" from the Financial Conduct Authority's (FCA) recent findings that people are failing to put enough money aside on up to half of the 2.6 million interest-only mortgages which are due for repayment over the next 30 years.

Estimates for the regulator suggest that around half these shortfalls will be more than £50,000. The FCA fears that consumers are underestimating the scale of the problem and lenders have agreed to alert their most at-risk customers to help them avoid ''payment shocks''.

Some borrowers could end up having to sell their home to pay the loan back if they do not take stronger control of their repayment planning. The initial focus is on people whose mortgages are set to finish before the end of 2020.

The CML has said that the most important issue for lenders in the interest-only market is exactly how to engage with customers and make sure they are fully aware of their obligation to repay the capital when the mortgage term ends.

A spokesman for the CML said that the conference had been called to enable industry bodies to share information and their experiences, using the FCA's report as a "springboard".

Interest-only mortgages have become much more thin on the ground since the boom years amid concerns about people not being able to pay back their debt. Toughened rules are also coming in next year to make sure borrowers can only take out mortgages they can afford to pay back and people will not be able to pin their hopes on house prices rising.

Lenders may be able to offer alternatives to some customers to help them avoid having to sell their home in order to repay the mortgage, but these will depend on the circumstances of the borrower and the lender's policy.

The FCA has told consumers that they must be prepared to communicate with lenders and cannot "bury their head in the sand".

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Public borrowing down to £6.3bn

Press Association — 2013-05-22T10:00:00+00:00

Filed under: Debt

Public sector borrowing dipped to £6.3 billion in April to give the Government breathing space in attempts to slash the deficit.

The Office for National Statistics (ONS) said underlying public sector net borrowing, excluding financial interventions such as bank bailouts and a transfer of Royal Mail, was down from £8.9 billion a year earlier.

The figure was better than the £8.5 billion economists had forecast and was coupled with a downward revision to the deficit for the last financial year, to £119.5 billion from its earlier £120.6 billion estimate.

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Groom jailed for robbing his own wedding venue

Sarah Coles — 2013-05-22T09:48:00+00:00

Filed under: News

Christopher Richards, a 25-year-old unemployed labourer from Bacup, Lancashire, had only just married Bridie Sparks, the 24-year-old mother of his two children, when he decided to celebrate by returning to the wedding venue and robbing it.

So what happened, and is this the weirdest wedding crime story?

The theft

According to the Daily Mail, Richards decided to return to the club where they had held their reception, six months later, and steal thousands of pounds worth of alcohol and computers - while causing £20,000 of damage.

The Rossendale Free Press reported that The Bacup Hub club had even provided a half-price reception for the young couple because money was tight. The owner was devastated when she discovered who was behind the raid.

Richards handed himself into police after being caught on CCTV cameras, and the photos appeared in a local newspaper. He was jailed for six months. Judge Jonathan Gibson said: "It was the most dreadful offence of commercial burglary which left the owner devastated. There is clearly evidence of impact to the community. It seems to me it's inevitable there must be a custodial sentence."

Sparks will give birth to their third child while he is behind bars.

Strange tales

It's a horrible tale, and it's hard to imagine why the venue was targeted in this way. However, it seems that weddings and crime are familiar bedfellows - in so many different ways.

Bad behaviour is always a risk, such as the wedding guest in Peebles, who was jailed for 80 days in March, after he threw a glass during a family row.

The bill can also cause tensions. In March, an Australian couple were jailed for three months for refusing to pay for their lavish four-day $52,000 wedding in Victoria, Australia.

And in March last year there was the property developer who started a fire on his wedding night, at the hotel in Cheshire where he had just been married - in a row over the bill.

Even those who pay up, can have a criminal secret. In June last year, a Preston court heard the tale of a bride who had stolen an astonishing £200,000 from her bosses in order to pay for her wedding (among other things). She was jailed for 20 months.

And then of course, there are those for whom the wedding itself is a crime. Last month a Northampton man was jailed for 20 months for bigamy, after marrying a Canadian woman in Las Vegas, and posting photographs on Facebook. He was going through a divorce at the time and told the court he thought it had been completed.

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Shop sales hit by cold weather

Press Association — 2013-05-22T09:30:00+00:00

Filed under: Shopping & Deals

Freezing weather drove retail sales 1.3% down in April on a month earlier as barbecue goods and garden furniture remained stuck on stores' shelves.

Shrinking food sales weighed heavily in April, the Office for National Statistics (ONS) said, with food volumes slumping by 4.1% month on month to the lowest level since May 2011 as the deep freeze continued at the start of the month.
Retail sales edged up by just 0.5% on a year earlier, the ONS added, casting a cloud over the dominant services sector.

Economists said the figures provide a stark reminder that the economy is "not yet out of the woods".

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London Property Boom Boosts Shaftesbury Plc

The Motley Fool — 2013-05-22T09:25:00+00:00

Filed under: Investing

Real-estate investment trust Shaftesbury Plc (LSE: SHB) today reported mixed results for the six months ended 31 March 2013.

Shaftesbury -- which owns 13 acres in London's West End, comprising over 500 properties in and around Carnaby, Covent Garden, Chinatown, Soho and Charlotte Street -- posted operating profits of £15.2m. These are down slightly (5%) from the prior year as Shaftesbury spends money to refurbish many of its London properties.

Profit and total comprehensive income for the period amounted to £80.8m compared with £37.8m reported for the prior year, though this huge leap (114%!) is due largely to a nice increase in the estimated value of Shaftesbury's properties in London, as the capital city continues to attract visitors, businesses and residents.

Brian Bickell, Chief Executive, commented:

"London continues to benefit from its unique features and unrivalled variety of attractions which draw visitors, businesses and those who wish to live here. As we anticipated, growth in our rental income is tempered this year as a result of the unusually high level of refurbishment and development activity across our portfolio. With sustained good demand across all our uses, we expect these valuable projects will let well on completion and make an important contribution to our revenue growth. We continue to identify and progress other valuable schemes within our portfolio.

With a strong and resilient local economy, and our long established and proven management strategies, we are confident in the prospects for sustained income and capital growth from our unique and centrally-located portfolio in the years ahead."

Shaftesbury says it continues to see strong demand for shops, restaurants and leisure space, a major driver (71%) of the firm's rental income. Meanwhile, with good levels of interest from office occupiers seeking to locate or expand within the West End, overall commercial occupancy levels and rental demand continue to grow.

The firm reported net property income -- essentially, the rent it collects on its properties -- for the six months was flat at £35.9m compared with £35.5m in 2012. This was attributed to the unusually high level of improvements the company is performing on its portfolio -- people can't rent while you're refurbishing the space.

All this work (and generally strong demand for London property) looks to be paying off as Shaftesbury reported a property surplus revaluation -- this is not actual cash coming in but instead represents the estimated value of the properties it owns -- of £62m, up substantially from the £22.3m revaluation posted in 2012.

With the help of this increase in valuation, the company's earnings per share were 32p versus 15p last year. The company has declared an interim dividend of 6.25p per share to be paid on July 5.

Shaftesbury is certainly an asset play for investors today. But it didn't catch the attention of our four analysts who've just compiled their latest investor bulletin, "5 Shares to Retire On".

This special new report features the names, tickers, and details of the five shares we believe are perfect for new money today. It's free to download by clicking right here.

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Is now the time to buy a home?

Christina Hoghton — 2013-05-22T09:00:00+00:00

Filed under: House Prices

The last few years have seen stagnating house prices in many areas, and falling prices in others. For those hoping to buy and saving for a deposit, it's been pretty good news, as it gives you a little bit of breathing space.

After all, if prices where you want to buy are not rising, there isn't a great rush to get on the ladder immediately - so you can spend time amassing a bigger deposit if that suits your circumstances.
However, recent reports of UK house prices being back on the up may spark some wannabe homeowners into moving a little more quickly, before they rocket out of reach again.

What's up?
According to Halifax, average house prices in the three months to April were 1.3% higher than in the previous three months. And they were 2% higher than in the same three months a year earlier - the fourth consecutive rise in this measure and the highest rate of increase since September 2010. This shows a slow but steady trend upwards.

Martin Ellis, housing economist at Halifax said: "House prices continue to pick up gradually. The relatively low level of mortgage payments in relation to income continues to provide support for the market."

Also this week economic thinktank Fathom Consulting has predicted that George Osborne's Help to Buy scheme - designed to boost the housing market and help first-time buyers onto the ladder - could force average prices up by a massive 30%.

It reckons that the average UK house price could be over £300,000 by the end of 2015, as a result of what it describes as a 'reckless' scheme.

So does this mean that wannabe buyers should get onto the housing ladder now before they can no longer afford it? Or is it unrealistic to suppose that prices will start to run away again?

Capital appreciation
A lot depends on where you want to buy. In London for example, demand has remained high over the last few years and prices have continued to rise. Indeed they are propping up the national figures.

According to LSL Acadametrics house price growth in London continues to outpace the rest of the country. Its latest house price index showed that average property prices across England and Wales increased £6,700 in the last 12 months but would have grown by just £1,117 without the input of the London market.

And things are only getting better during 2013, according to David Warren, sales negotiator at Paramount Properties, an estate agency based in West Hampstead, London.

"The London property market is extremely healthy at the moment with a 6-7% rise in prices already this year. It's a trend set to continue so it's worth buying a property as soon as you can afford to - with demand strong prices will carry on rising."

Grim up North?
Those buying in other areas of the country may not feel quite so pressured to race into the housing market.

Because while prices in London may have shot up by 9.6% in the last year according to the Land Registry, they have fallen by 5.5% in the North East and dropped by 4.9% in the North West. If you want to buy in those areas, there is an argument for hanging on, because prices could drop even further.

Giles Hannah, managing director of agency VanHan, agrees that there is a big difference regionally: "House prices continue to pick up gradually, as far as the national average is concerned. But it must be remembered that this increase masks significant regional differences. The UK as a whole is seeing modest growth, with areas such as London, Oxford and Henley seeing price rises while Nottingham, Wales and the Midlands have seen price falls.

"The overall outlook is broadly positive, however, with market confidence across the UK improving, although activity is still subdued."

Halifax's Ellis is a bit more cautious, admitting there are restraining factors affect the housing market: "Activity remains subdued by historical standards with the number of mortgage approvals for house purchases easing slightly in the first quarter of 2013. Weak income growth and continuing below-trend economic growth are likely to remain significant constraints on housing demand during the remainder of 2013."

Of course, your decision to buy a home will be based on other factors aside from the economic environment. Your time of life, family circumstances and finances will all be more important drivers. But the prevailing market forces may have an impact on your exact timing - and now certainly doesn't look like a bad time to take the plunge.

As Hannah sums up: "If you can afford to buy, now is a good time to do it, particularly as mortgage availability has improved significantly."

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MoD pays £100k for blowing sniper ID

Adrian Holliday — 2013-05-22T08:30:00+00:00

Filed under: Career

Blundering MoD officials blew commended army sniper Craig Harrison's identity to the media - and the MoD has now coughed up £100,000 in compensation. Harrison and his family had to quit the UK for fear of kidnap by Al Qaeda supporters.

The move led the sniper to be put on permanent sick leave - and a sizeable MoD bill for the taxpayer.

Steady hands

Harrison was a celebrated sniper having killed two Afghan rebels from a distance of 8,120 feet. In an interview he admitted the conditions of the two kills were close to perfect - mild weather, good visibility, little wind - besting a previous record of 7,972 feet. The official range of his L115A3 Long Range Rifle was closer to 4,920 feet, or just under a mile.

MoD rules are supposed to ensure all sniper IDs are kept secret, otherwise they risk becoming trophy targets for terrorists. "Craig was happy to talk to the media when he returned to the UK [from Afghanistan]," reported the Telegraph, "and everyone wanted to know about his amazing kill. But he never thought for a second his ID would be released."

Yet a few days after the interview, the police warned him he and his family were in danger. The upheaval for his family was considerable, with his wife abandoning her hairdressing job and his teenage daughter leaving school before taking GCSEs. Due to the ensuing stress, Harrison will now be medically discharged.

Enough for a new life?

"When compensation claims are received they are considered on the basis of whether or not the MoD has a legal liability to pay compensation," the MoD told the Mail. "Where there is a proven legal liability, compensation is paid."

But how much will £100,000 last? Not long given the rising housing costs in the UK (and increasingly elsewhere in Europe, if the family moves).

Harrison will likely need to retrain in a different profession. His wife will need to find a new job. The MoD has got off lightly, and an exceptional soldier has seen his professional and home life blown apart.

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Mortgage lending jumps by a fifth

Press Association — 2013-05-22T08:00:00+00:00

Filed under: Mortgages

Mortgage lenders have reported one of their strongest months since 2008 in a further sign that Government efforts are prompting an upturn in the housing market.

The Council of Mortgage Lenders (CML) estimates that £12.1 billion worth of loans were advanced in April, marking an increase of one fifth (21%) year-on-year.
The total also represents a 4% increase compared with March and follows a string of studies indicating that Government initiatives to reinvigorate mortgage borrowing are having an impact.

CML chief economist Bob Pannell said: "The true underlying position is that April is likely to have been one of the strongest months for lending activity since late 2008."

The findings were released as official figures showed that house prices rose by 0.4% month-on-month in March to reach £235,000 on average, marking the first monthly increase seen this year.

House prices are now 2.7% higher than they were a year ago, following a smaller annual uplift in February, the Office for National Statistics figures showed.

The CML has reported an uplift in first-time buyer activity in recent months, helped by various Government schemes designed to make it easier for people to borrow.

The number of mortgages on the market has increased sharply and lenders have slashed their rates since a Government scheme called Funding for Lending was introduced last August. Other initiatives called NewBuy and Help to Buy are specifically aimed at giving people with smaller deposits a leg up.

The CML's previous figures have shown that first-time buyers accounted for 45% of all house purchase loans in March, up from 43% in February.

However, Mr Pannell pointed out that the sharp year-on-year rise recorded by the CML has been "flattered" by a temporary dip in activity this time last year which happened after a stamp duty concession for first-time buyers came to an end.

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Justin Bieber billed thousands for pet monkey

Sarah Coles — 2013-05-22T07:53:00+00:00

Filed under: News

It's not all plain sailing when you're a teenage heart-throb. Justin Bieber may be able to surround himself with all the trappings of fame - from a massive entourage to a pet monkey - but even he cannot get around customs officials.

Customs at Munich airport confiscated his pet monkey in March, and even though he has decided that he doesn't want the monkey back, the sorry episode is going to cost the pop star thousands of euros.

Confiscated

The monkey - known as Mally - was said to have been a 19th birthday present for Bieber. The pet was seized on 28 March on entering Munich, because he wasn't traveling with vaccination and import papers. He was quarantined at Munich's animal shelter.

The quarantine period has now passed, and Bieber was given until midnight last Friday to collect his monkey. He missed the deadline, and abandoned the pet, so it has now become property of the German state. It will be transferred to a permanent home in a German zoo.

According to The Sun, Germany's environmental minister Peter Altmeier said: "Monkeys are very sociable animals. That's why we're going to take Mally to a place where he can live safely and in the company of others."

The cost

However, that's not the end of the story for Bieber. A customs official told the Guardian, that the monkey had cost the shelter several thousand euros in care, food and vet visits. The spokesman told the newspaper it would be asking for the money back from Bieber.

Clearly the pet, and the decision to travel with it, weren't brilliantly thought through. However, Bieber was in strong celebrity company when he decided an exotic pet was just the thing he needed to complete his entourage.

In the past George Clooney has owned a very happy pot-bellied pig called Max, Mike Tyson has owned a variety of exotic creatures, including a number of tigers (although he had to hand them over the authorities when they grew too big to control). And who could forget Michael Jackson's pet chimp, Bubbles?

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Poundcafe draws in cash-strapped punters

Sarah Coles — 2013-05-22T07:14:00+00:00

Filed under: Shopping & Deals

Inspired by the success of the £1-or-less pricing models, one cafe in Kirkby Merseyside has hit on the cunning plan of launching the Poundcafe - where diners can get a four-item cooked breakfast for just £1.

So what do you get for your money, and would you buy breakfast for £1?

The deal

The Poundcafe told the Daily Mail it had 300 diners in the first few hours of trading. For £1 you have a choice between any four of a number of breakfast items, including: egg, bacon, sausage, hash brown, baked beans or tomatoes. If you want another item it'll only cost another 25p.

It's actually the latest brainchild of the Poundbakery chain. Keeley Palin, marketing manager for Poundcafe, told Click Liverpool: "We started in Leigh with pasties and pastries for one pound or less two years ago and opened our 60th store today."

Is it a good deal?

It's a great deal compared to the average cost of breakfast on the go. According to Warburtons, this is £3.09 - but that includes those who have toast from a cafe as well as those wanting something cooked, and only about 10% of us have a full cooked breakfast each week.

Typically if you want a hearty cooked breakfast, it tends to include six or seven items and come in between £4 and £7. Anything advertised as a large breakfast will come with nine or ten items for around £7-£9 (including Little Chef's iconic Olympic Breakfast for £7.69). Of course, where you are in the country, and the quality of products that the establishment uses will have a massive influence on the price.

If you want a posh breakfast Caterer and Hotelkeeper magazine reckons a fry-up in a fancy hotel in London costs an average of £27.

However, the Poundcafe has competition for cheap breakfasts. Ikea, for example, will do a six item breakfast for £1.50 (during the week, with an Ikea Family card) or a nine item breakfast for £2.15. Toby Carvery, meanwhile, offers all you can eat for £3.99.

If you cook it yourself, even allowing for the gas or electricity you use, you can get a four item cooked breakfast for little more than 50p - assuming you are happy with the value end of the supermarket ranges.

But what do you think? Would you flock for a £1 breakfast? Would you pay more? Or would you prefer porridge? Let us know in the comments.

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