Olympic Stadium: Dismay Over Delayed Future

By Enda Brady, Sky News Correspondent

Olympic and Paralympic champions have voiced their dismay at news that the stadium may not open fully until the summer of 2016.

Four bids are still being considered as full-time tenants at the Stratford venue, but each bid will require significant and time-consuming modifications.

Dennis Hone, chief executive of the London Legacy Development Committee, revealed this week that it will not re-open until August 2015 at the earliest and probably not before August 2016.

Olympic champion Jessica Ennis told Sky News it was important the stadium was opened to the public without delay.

She said: "I've some amazing memories of the stadium, like a lot of other athletes.

"I'd love to see it opened to the public as soon as possible."

Leyton Orient FC are among four bidders to use the stadium in Stratford

Paralympic double gold medallist Hannah Cockroft said it was vital to speed up the process so that the goodwill generated by the success of London 2012 could be tapped into.

"The danger is that if it's not opened fully to the public for four years then that interest will wane," she said.

"It's an amazing venue and people want to see it, they want to be a part of it. I really hope they sort this out, they have to."

A transformation project costing nearly £300m is currently under way at the site and is expected to last up to 18 months.

The park itself will be opened to the public on July 27 next year, one year to the day the Games opened in London.

Maria Miller, Secretary of State for Culture, Media and Sport, told Sky News: "The stadium is vital for the legacy of the Games, but the important thing is to get the right tenant in."

The four bidders are West Ham United FC, Leyton Orient FC, a Formula One venture and the University College of Football Business - an academic institution owned and run by Burnley FC.

A final decision is expected in the first half of 2013, or possibly sooner.

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Treasury Gets £35bn Windfall From QE Interest

The Treasury is to receive a £35bn boost as part of a deal with the Bank of England that will effectively reduce public debt.

Chancellor George Osborne and Bank Governor Sir Mervyn King have agreed that the BoE will give the Treasury interest earned through its £375bn economy-boosting programme known as quantitative easing (QE).

The cash - currently on the BoE's books - will flatter the public accounts by reducing the budget deficit, while also acting as a "small loosening of monetary conditions" equivalent to taking more QE action, according to the Bank.

The announcement comes a day after it decided not to extend QE at its monthly policy-setting meeting.

The Treasury said the agreement was in line with similar practices surrounding QE in the United States and Japan.

In a letter to Mr Osborne, Sir Mervyn stressed the cash transferred to the Government would likely need to be paid back to the Bank in the future.

The move comes at an apt time for Mr Osborne as he faces pressure on his plans to cut borrowing.

But JP Morgan Chase economist Malcolm Barr said it was "still likely" that the Chancellor will need to push back debt reduction targets in his upcoming autumn statement.

Shadow chief secretary to the Treasury Rachel Reeves said it was a "smoke and mirrors" deal.

"Instead of changing course and taking action to create the jobs and growth we need to get the deficit down. The Chancellor seems to think he can just be bailed out in the short term by money from the Bank of England," she added.

Under the arrangement, £11bn is expected to be handed to the Treasury this year, with the remaining £24bn paid in four instalments over the next financial year.

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Japan Nears Recession Amid China Boycott

Japan is on course to enter recession as it battles against a tide of economic problems including a costly dispute with China.

The world's third-largest economy contracted by 0.9% between July and September from the previous three months - a fall which under-pressure Prime Minister Yoshihiko Noda described as "severe".

The latest predictions suggest a return to growth in the fourth quarter is very unlikely which would result in a technical recession.

A combination of the financial crisis in Europe, a strong yen and a Chinese boycott of Japanese goods are damaging recovery plans following the devastating earthquake and tsunami in March 2011.

The boycott was sparked by Japan's nationalisation in September of an East China Sea island chain claimed by both Tokyo and Beijing.

The islands dispute has raised tensions between China and Japan

It has particularly hurt Japan's car producers - already damaged by the end of an incentive purchase scheme.

The worst September trade figures for three decades were compounded by an export-denting strong yen.

Mr Noda, who is under pressure to call a general election, told parliament he would work "with a sense of crisis" to address the country's economic woes.

"I have also been instructing ministers concerned to draw up an economic package, possibly this month," Noda said, as he pointed to the first £3.1bn tranche of a previously-announced stimulus.

Last month, the Bank of Japan unveiled £87bn in fresh monetary easing after central banks in the United States and debt-hit Europe also announced further measures to fuel growth.

The central bank, which also said it would provide new loans to banks, had been under pressure from politicians calling for urgent action and is facing calls for further stimulus.

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Exclusive: Royal Mail To Deliver Float

By Mark Kleinman, City Editor

The Government is to begin sounding out City investors about their appetite to buy shares in Royal Mail ahead of a potential flotation of the postal service.

I have learned that ministers and the Shareholder Executive, the body which manages state-owned assets, have sanctioned a preliminary roadshow of major City institutions to begin in the new year.

The Government will wait until Royal Mail's Christmas trading performance is clear before commencing discussions with prospective investors.

On Tuesday, Royal Mail will unveil half-year results which are expected to show continued progress in restructuring the core UK letters division, which has seen tens of thousands of jobs axed in an attempt to secure the company's survival.

A decline in letter volumes accelerated by the explosion of the internet has only been partially offset by the growth in Royal Mail's parcels business.

Moya Greene, the Canadian chief executive of Royal Mail, is likely to confirm the plans for initial talks with City investors alongside the results.

A privatisation of Royal Mail would be arguably the most significant privatisation of a UK asset since John Major sold the railways during the 1990s.

Analysts say that a restructured Royal Mail could be worth as much as £4bn, although that figure is likely to be at the upper end of the range that a flotation could attract.

Ms Greene is also likely to reaffirm a ministerial commitment to make shares available to Royal Mail employees as well as the public.

A flotation is viewed in Whitehall as a more attractive option than an outright sale of the company because of the shortage of trade buyers and the political difficulties of negotiating a takeover by a financial investor such as a private equity firm.

Michael Fallon, the business minister, is taking a hands-on role in discussions about the potential sell-off.

Barclays is advising the board of Royal Mail, which is chaired by Donald Brydon, a leading City figure, with UBS advising the Government.

Royal Mail's finances have been knocked into shape by hiving off the company's historic pension deficit onto the taxpayer. The regulatory regime dictating stamp prices and other areas of its operations have also been loosened by Ofcom.

Royal Mail declined to comment.

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Ofcom Sets 4G Spectrum Sale Reserve Price

Telecoms regulator Ofcom has set a reserve price of £1.3bn for the auction of 4G mobile phone licences to be sold at the start of next year.

It is expected to raise much more, albeit less than the 3G sale which brought in more than £22bn in 2000 when the reserve price was £500m.

The regulator has published a timetable for the auction which it claims will be the largest ever sale of mobile airwaves in the UK - offering the equivalent of three-quarters of the mobile spectrum currently in use.

That equates to around 80% more than released in the 3G sale, providing fast mobile broadband coverage to at least 98% of people across the UK.

Prospective bidders will be able to submit their applications with an initial deposit from December 11, before bidding begins in January and licences are granted in February and March.

Mobile operators are expected to launch the new 4G services, which allow much speedier downloads, in May and June.

It means smartphone and tablet users will have access to 4G - offering speeds up to five times faster than existing 3G networks - to surf the internet by the end of 2013.

The service will be available on a number of devices

Ofcom chief executive Ed Richards said: "Today marks an important shift from preparation to the delivery of the auction, which will see widespread 4G mobile services from a range of providers.

"The entire industry is now focused on the auction itself, with a shared goal of delivering new and improved mobile services for consumers."

Plans for the auction follow Ofcom's controversial decision in the summer to allow network EE, formally known as Everything Everywhere and which owns Orange and T-Mobile, to use its existing bandwidth to launch 4G services in 11 towns and cities in the UK.

Vodafone was among competitors which argued providers should have all been able to launch 4G at the same time.

The upcoming 4G sale has also sparked a political row over how the proceeds from the auction should be distributed.

The estimated return being floated by various experts is between £3bn and £4bn.

Shadow chancellor Ed Balls has called for the windfall to be used to "kick-start the economy" by building 100,000 affordable homes to boost the housing market and construction jobs, and funding a stamp duty holiday.

Chancellor George Osborne is yet to disclose how he intends to distribute the money from the sale.

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Tea: UK Trade Mission Aims For China Deals

By Mark Stone, China Correspondent

Selling tea to China might sound mad, but it is exactly what a group of British companies is trying to do this week.

In an effort to help them through difficult economic times, a wide range of UK-based food and drink manufacturers are spending a week in China, taking advantage of changing Chinese diets.

The delegation is being led by Environment Secretary Owen Paterson.

He said: "From chocolate to cheddar, China's population is getting a taste for dairy, and Britain's world-class food industry can supply that demand.

"I'll be helping British businesses grab the opportunity with both hands, so our country competes and thrives in the global race."

The traditional Chinese diet is undoubtedly changing, with some foreign companies already taking advantage of this with staggering consequences.

Starbucks now has more than 500 outlets across China, and per store they are more profitable than in the US. In a remarkable feat for a country that does not traditionally drink coffee, China will soon become the company's largest market.

Subway is another success story. The Chinese are not, by tradition, bread-eaters, yet in all of Beijing's numerous Subway franchises, a lunchtime queue has become increasingly normal. A Western-style sandwich is now an acceptable alternative lunch option for locals.

Starbucks and Subway have managed what an increasing number of Western companies now want to do - to take advantage of changing tastes. When combined with potential numbers of customers available, the sums make perfect sense.

China's population is 1.3 billion, which is a fifth of the world's population. Some 691 million of those people live in urban areas. The Chinese middle class is now three times the size of the UK population and their number is growing all the time.

The Chinese also have an increasing spending power. According to figures released by the Chinese government, an average family of three earns the equivalent of about £5,600 a year. That is a tenfold increase since 1980.

In cities, where British companies will be focusing their efforts, the incomes are much higher. According to a recent survey by Beijing's University of Technology, the income of an average middle class family in the city is about £12,000 a year.

There will be a record number of British businesses at this week's Food and Hotel China Exhibition in Shanghai, who will have access to more than 30,000 Chinese importers.

There are also plans to meet with executives from Tesco, which already has a foothold in China and may result in further British products being made available.

The Department for the Environment, Food and Rural Affairs believes there is a particular window of opportunity for the dairy market.

The UK has room to significantly expand its export market at a time when other EU countries are restricted by milk quotas until 2015.

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Fuel Duty: Chancellor Osborne Under Pressure

Chancellor George Osborne may bow to demands and delay a planned fuel duty hike amid fears it will hit struggling families.

Tory rebels had been planning to break ranks and vote with Labour in an Opposition debate on Monday calling for the 3p increase set for January to be delayed.

They believe the rise, first delayed in August, will ramp up anger because it is due to coincide with rail and bus fare increases and the changes to child benefit.

But now rebel leader Robert Halfon has said he will vote with the Government after all and wait to see what Mr Osborne does in his Autumn Statement next month.

He said: "The cost of fuel is the number one issue, that's why I am campaigning on it. I have had discussions with various people and it is my view that the Government is in strong listening mode.

"If I didn't believe that I would make a point and go in to the lobby with Labour."

Under pressure: George Osborne

In a further hint at a postponement, the Prime Minister's spokesman said on Monday: "What the Government has sought to do is to listen to the concerns of motorists and cancel and delay where it can."

Campaign group FairFuelUK claims the planned tax hike would only raise £800m, compared with Treasury projections of £1.5bn, and cost also cost up to 35,000 jobs.

The group's spokesman, broadcaster Quentin Willson, said: "The momentum building up behind FairFuelUK's call to see this damaging 3p rise scrapped is becoming unstoppable.

"The Treasury appears to be listening. We welcome Labour pushing on this issue. Consumers are currently paying an eye-watering 80p per litre in combined fuel duty and VAT.

"This is socially unjust and adding another 3p in tax doesn't make sense for economic recovery and deficit reduction."

Shadow chief secretary to the treasury Rachel Reeves added: "With our economy so fragile and prices still rising faster than wages, it would be wrong to go ahead with another tax rise on families and businesses.

"To boost our flatlining economy, Labour has already called for a temporary VAT cut which would take 3p off a litre of fuel. But if ministers won't do this, the very least they could do is axe January's fuel duty rise at least until April.

"And they could pay for this by clamping down on known tax avoidance loopholes, like the one used by some employment agencies to falsely inflate expenses."

Brian Madderson, chairman of the Petrol Retailers Association, called on the Government to cancel the hike entirely.

He said: "To defer would mean that it could combine with the planned duty rise on 1 April 2013 to push pump prices up by 7p per litre and that would really wreck any economic recovery, hammer inflation and hit household budgets very hard.

"Such a rise would be without parallel since fuel taxation commenced."

A Treasury spokesman said: "The Government recognises that the rising price of petrol is a significant part of households' day-to-day spending.

"Since coming to office, the Government has listened to the concerns of motorists about high pump prices and acted. Fuel is now 10p a litre lower than under the previous Government's plans."

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Greek Crisis: New Cash Lifeline In Sight

Greece appears to have met the austerity demands of its international lenders and eurozone partners but still faces an anxious wait for more bailout funds to avoid bankruptcy.

The country, which faces a bond repayment on Friday it cannot afford, is awaiting final approval of a £23.5bn loan to meet the bill.

Just hours after the Greek Parliament voted through its 2013 Budget which was laden with additional spending cuts, the head of the eurogroup of finance ministers Jean-Claude Juncker confirmed that Greece's international lenders had prepared a "positive" report on the country's reform efforts.

A favourable report by the so-called Troika, made up of the EU, European Central Bank (ECB) and International Monetary Fund (IMF), was another step demanded of Athens in return for the bailout loan.

Mr Juncker said one issue remained unresolved - how much time Greece will be given to reduce its debts to a manageable level.

He confirmed that eurozone finance ministers meeting on Monday evening in Brussels would discuss whether Greece should be given extra time to cut its debt to 120% of its GDP beyond the original deadline of 2020.

It is reported that the Troika inspectors recommend giving Athens the further two years it has requested but Mr Juncker did not give any detail.

However, there will be no decision at the meeting on whether to disburse the next tranche of aid - despite the favourable report from the Troika.

"The basis is positive, because the Greeks have really delivered," Mr Juncker said.

The conditions for Greece to secure bailouts have come at a high price for the country's people with a deep recession about to head into its sixth year.

More than a quarter of Greeks are unemployed as private investment remains elusive amid deep spending cuts in the public sector.

The latest budget came days after a separate bill of deep spending cuts and tax hikes as part of efforts in Athens to meet the demands of its lenders.

Prime Minister Antonis Samaras has pledged that such measures would be the last Greeks had to endure provided the country implemented what it had agreed.

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Spain Halts Evictions After Second Suicide

Spanish banks have agreed to halt repossessions for the most vulnerable - three days after a woman jumped to her death as officials arrived to evict her from her home.

The two-year suspension will be observed by the country's largest banks, and comes amid public outrage over the growing number of evictions affecting thousands of people caught in the economic crisis.

Kuxtabank, a lender in the northern Spain, was reportedly the first to make the unprecedented move after client Amaia Egana reportedly threw herself from the balcony of her flat in Barakaldo, in the Basque capital Bilbao.

The 53-year-old former Socialist politician's death on Friday was the country's second apparent suicide linked to evictions and sparked protests in the capital Madrid.

Fifteen days earlier, Jose Miguel Domingo, also 53, was found dead in the courtyard of his building in Granada moments after bailiffs appeared to evict him.

Authorities have been under mounting pressure to ease tough mortgage laws.

Protestors clash with police to stop the eviction of a family in Oviedo

Struggling homeowners have been camping outside the offices of Caja Madrid, a major mortgage lender, with mats and sleeping bags since October 22, demanding they be spared eviction and have their debts renegotiated.

The Spanish government is in talks with the opposition to discuss new regulations governing evictions.

Prime Minister Mariano Rajoy said the meeting on Monday would include discussion of a "temporary halt to the evictions which are hitting the most vulnerable families".

In Spain, homeowners unable to make mortgage payments may be evicted but still remain liable to repay whatever value is left on the mortgage after the repossession.

More than 350,000 people have lost their homes in this way since the 2008 property crash. The unemployment rate in the recession-hit country is also at a record high of 25%.

Last month, a group of top magistrates released a report denouncing the trend of forced evictions. They complained of "extremely aggressive judicial procedures against debtors" who "find themselves defenceless in a crisis that they did not cause".

Earlier this year, a protest to stop the eviction of a family escalated into a mass riot in the Oviedo area of northern Spain.

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Starbucks Denies Making Money In Tax Grilling

The chief financial officer of Starbucks has told MPs that the coffee giant has continually made a loss in the UK - but was told his claim "doesn't ring true".

The Commons Public Accounts Committee (PAC) is questioning representatives of Amazon, Google, and Starbucks about the amount of tax they pay in the UK.

When grilled by Labour MP Margaret Hodge, head of the PAC, Troy Alstead, Starbucks' chief financial officer, said the company had only made a profit once in the 15 years it has been doing business in the UK.

"I assure you we are not making money," he told the committee.

"It's very unfortunate. We're not at all pleased about our financial performance here. It's fundamentally true."

Ms Hodge replied: "It doesn't ring true. You've run the business here for 15 years and you're losing - and you're carrying on doing business here."

Starbucks reportedly paid just £8.6m in corporation tax in 14 years of trading in Britain.

It was also revealed it paid no corporation tax for the past three years, despite sales of £1.2bn in the UK.

The PAC, which is charged with monitoring government financial affairs, invited the companies to give evidence amid mounting concern about tax avoidance by big international firms.

Earlier, the coffee giant's UK managing director, Kris Engskov, told Sky News last month the firm had no plans to change its tax arrangements.

Matt Brittin, the chief executive of Google UK, and Andrew Cecil, Amazon's director of public policy, are also giving evidence to the committee.

Google's UK unit paid just £6m to the Treasury in 2011 on revenue of £395m, according to The Daily Telegraph.

Earlier in the year, The Guardian reported Amazon - Britain's largest online retailer - generated UK sales over the past three years of between £7.6bn and £10.3bn, but paid virtually no corporation tax.

The three firms are among several which have had their tax affairs put under the spotlight recently.

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