EU Summit: Cameron 'Committed To Saving Euro'

The Prime Minister has made it clear he wants favours in return for signing a deal aimed at increasing economic and monetary union in the European Union.

At the seventh and final EU summit of the year, David Cameron insisted the UK was not in an uncomfortable position, despite refusing to have its banks monitored by a centralised supervisor.

"We did not stand in the way of the eurozone having a banking union ...now there are opportunities for us to seek changes in our (EU) relationship, changes that the British people will be more comfortable with," he said.

"They (the eurozone countries) want to make changes, and we can ask for changes too."

His comments come a day after European finance ministers took a major step towards full banking union by agreeing to create a single supervisor for eurozone banks.

But although the UK will not be subject to the scrutiny - continuing to monitor its own institutions - Mr Cameron insisted that Britain "remains at the heart" of decision making in Europe.

The ECB will oversee all banks in the 17 EU countries that use the euro

"I don't think Britain is in an uncomfortable position at all," he said.

"I think we are in a position where we have opportunities to maximise what we want from our relationship with the European Union.

"The fact is we have a multi-faceted Europe, we have a Europe where countries like Britain are absolutely at the heart of decision making."

Earlier this year, Mr Cameron called for a "new settlement" between the UK and Brussels and on Thursday said his focus was now on getting a "better deal" for Britain.

The banking deal gives the European Central Bank (ECB) oversight for lenders in the 17 EU countries that use the euro - and any other country that wants to opt in.

It also paves the way for Europe's bailout fund to give direct aid to ailing banks - a measure seen as vital to helping the eurozone break free of its debt crisis.

The agreement, which follows months of negotiations, was described by the president of the European Commission, Jose Manuel Barroso, as a "deep and genuine economic and monetary union", which requires "steps towards political union".

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Fuel Poverty Warning For 300,000 More Homes

A further 300,000 people will be pushed into fuel poverty by Christmas because of the latest round of energy price hikes, an advisory body has warned.

The Fuel Poverty Advisory Group (FPAG) said the latest round of energy price rises has increased the average annual energy bill by 7%, taking it to £1,247 for direct debit customers and £1,336 for cash and cheque customers.

These increases are likely to have pushed a further 300,000 households into fuel poverty and estimates have already shown that over nine million households could be living in fuel poverty by 2016.

The FPAG urged David Cameron to take stronger action to ensure there is a more widespread and ambitious effort to tackle "spiralling" fuel poverty levels.

It said the Government should create a cross-departmental group on fuel poverty to ensure a joined-up approach as well as creating a new duty for local authorities to meet fuel poverty targets.

It also advised the Government to carry out an urgent impact assessment of welfare reforms on fuel poverty.

FPAG chairman Derek Lickorish said: "With a cold winter, welfare reforms cutting incomes, and all at a time of austerity measures and other rising household costs, the plight of the fuel poor has never been more serious.

"Millions are living in misery due to high energy bills. Yet time is running out for the Government to fuel poverty-proof the homes of those on the lowest incomes.

"A toxic cocktail of rising wholesale prices, the high cost of energy reforms and cuts in incomes for many households means fuel poverty levels are set to sky rocket without radical action."

Families are considered to be in fuel poverty when they have to spend more than 10% of their incomes on keeping their homes warm.

The FPAG said that nearly half of the UK's fuel poor households are pensioners, a third contain people with some sort of disability or illness, a fifth contain a child aged five or under and one in 10 house someone aged 75 or over.

The Government recently announced proposals to require energy firms to provide just four tariffs for each fuel and to place all customers on the cheapest price available for their chosen tariff.

But critics have warned that the plans could see an end to cheap deals, stop consumers switching suppliers, reduce competition and push up bills in the long run.

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Clegg: 'Rich Pensioners May Lose Benefits'

Nick Clegg has called for wealthy pensioners to lose free bus passes and the winter fuel allowance as he tries to revive his party's fortunes.

The Deputy Prime Minister, in a major speech on the welfare state, insisted the Government has an "absolute duty" to ensure the system is fair to all.

He said this means not paying out to "people who do not need it" and "looking again at universal benefits paid to the wealthiest pensioners".

Such a move would lead to means-testing for the winter fuel allowance, free bus travel, prescriptions and television licences.

David Cameron has committed to keeping universal benefits in place until 2015 but many Tories are keen for reform.

Following his deputy's speech, his spokesman said: "The Prime Minister made a commitment to protect those benefits and he believes in keeping his promises."

Mr Clegg admitted the benefits shake-up had been "painful and controversial" at times but he claimed the Lib Dems had ensured it was firmly anchored in the political centre ground.

"When two thirds of people think the benefits system is too generous and discourages work then it has to be changed, or we risk a total collapse in public support for welfare existing at all," he told the Centre Forum think tank.

"We need welfare protection for people who fall on hard times. Of course. But you cannot ask low income working people to pay through their taxes for people who aren't in work to live more comfortably than they do."

Mr Clegg sought to put distance between the Lib Dems and the Tories by pointing out that he blocked bids to cut housing benefit for the under 25s and to only pay child benefit for the first two children in a family.

Mr Clegg's speech comes after polls put the Lib Dems in fourth place

The speech, to the Centre Forum think tank, comes on the eve of his fifth anniversary as Lib Dem leader and as the party battles a major slump in support.

He is under intense pressure as further polls show his party has been pushed into fourth place behind the UK Independence Party (Ukip). One poll had Ukip on 14%, ahead of the Lib Dems on just 8%.

Deputy leader Simon Hughes has admitted that "there is a little bit of chatter" about the leadership because of the dismal poll ratings.

Meanwhile, Mr Clegg's former director of strategy Richard Reeves has revealed the leader is attempting to win back votes by setting out the Lib Dem position well before coalition announcements are made.

In an attempt to turn the tide before local elections next May, Mr Clegg apparently wants to show the "inner workings of government" but this will inevitably strain the partnership.

Mr Reeves, writing in The Guardian, suggests the coalition could collapse before 2015 if the tactic fails.

"2013 is the year the Liberal Democrat strategy - deliver, then differentiate - will be tested," he said.

"A more assertive stance in act two of coalition should mean greater support and more votes. If not, the curtain will probably fall on the coalition before 2015."

Mr Clegg conceded that governing in difficult times had meant the party acquiring a "harder edge" but said the alternative was "a retreat to the comfort and relative irrelevance of opposition".

In his address, he suggested many Conservatives believe everyone out of work is "a scrounger" - a jibe at Chancellor George Osborne who said Government should support "strivers" not "shirkers".

"The siren voices of the Tory right who peddle this myth could have pulled a majority Conservative government in the direction of draconian welfare cuts," he said.

He declared that the Tories wanted to implement an extra £10bn in welfare cuts but were kept down to £3.8bn by the Lib Dems, branding some of the earlier plans "extreme".

Labour deputy leader Harriet Harman said: "Nick Clegg will try every trick in the book to distance himself from the record of his Government.

"But, as ever with the Lib Dems, they say one thing whilst doing another - resulting in a record of economic failure, trebled tuition fees, nurses cut,police axed and millions paying more while millionaires get a tax cut.

"Bearing this in mind, what we really should be hearing from Nick Clegg is a proper apology and a declaration that from now on he will actually stick by the promises he makes."

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Fuel Bills To Rise As Networks Get Upgraded

The energy watchdog has announced a major upgrade to Britain's gas and electricity networks that will be funded by a rise in consumer bills.

The £24.2bn investment in the UK's ageing infrastructure will see a rise in fuel bills of up to £15.10 a year on average, Ofgem said.

The total amount is more than the £22.7bn proposed by the regulator in July, but less than the £29.4bn originally requested by the industry.

Ofgem said this reduction was made to "ensure value for money for consumers".

National Grid's high voltage electricity network, high pressure gas networks and low pressure gas networks across Britain will benefit from a £15.5bn upgrade.

The company, which had accused the regulator of not going far enough to incentivise companies to carry out the necessary work, said it would take time to review the proposals before commenting on them by March.

Some 7,000 jobs will be created in the supply chain as a result of the work.

A further £7bn will be spent connecting 80,000 households to the gas network for the first time, and ensuring the connections to homes and businesses are safe and reliable. 

The cost of the projects - which also include laying undersea cables linking Scotland with England and Wales - will see tariffs rise by an average of £8.50 in 2013/14, £7.30 the following year, rising to £15.10 in 2020/21.

Ofgem's chairman Lord Mogg said the investment "provides a framework of strong incentives and penalties to stimulate the innovative and efficient operations of Britain's energy companies".

It comes amid warnings that a further 300,000 people could be pushed into fuel poverty by Christmas.

The latest round of energy price rises has increased the average annual energy bill by 7%, the Fuel Poverty Advisory Group said, adding that estimates have already shown over nine million households could be living in fuel poverty by 2016.

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Bank Eyes Plastic Money To Replace Notes

The Bank of England has made contingency plans for a changeover to plastic bank notes, Sky News has confirmed.

Tender documents for a new contract to print money have included a clause allowing for the polymer-based currency.

A source has told Sky News the printing proviso is to "future proof" the bank's supply of money.

A number of countries already use plastic money, which can be more durable than traditional cotton-based paper notes.

A £5 note has a life expectancy of around six months

Australia, Romania, Vietnam, Mexico and Malaysia are among those to have introduced polymer money.

The Australian $5 note lasts an average of 40 months whereas an English £5 note is worn out after an estimated six months.

Between 2003 and 2011 the Bank of England received claims for bank notes destroyed through washing totalling £747,000, and £8.625m for fire or flood damage money.

It also received claims for £946,000 for notes that had been eaten or chewed.

Claims for notes deemed to be "contaminated" topped £232m in the period, with the total figure for all damaged or mutilated money reaching £263m.

In addition to greater durability the plastic money can incorporate holograms and other security devices to thwart counterfeiters.

"The Bank of England is not doing its job properly if it does not take account any new security measures it can utilise to protect the currency," the source said.

Malaysia is one country which decided to use plastic money

The new printing contract will run from 2015 to 2025 or 2028.

The bank plans for a consultation period of at least 12 months ahead of any changeover, as cash and vending machines need mechanisms recalibrated.

A Bank of England spokesperson told Sky News: "It's incumbent on the Bank, within our general research and development program to look at the pros and cons of various security features and substrates.

"No decision has been made as yet regarding printing on polymer."

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London Tube Drivers To Strike On Boxing Day

London Underground drivers are to go on strike on Boxing Day in a row over Bank Holiday pay.

Members of Aslef will are to hold three 24-hour walk-outs - on December 26, and again on January 18 and 25.

It is feared the move - which Aslef members backed by a 9-1 margin - will spark travel chaos in the capital

An Aslef spokesman said: "The ballot result shows the strength of feeling that remains on this issue.

"The union is committed to finding a solution which offers voluntary working and compensates those who do attend."

It will be the third successive Boxing Day walkout by Tube drivers in a dispute over Bank Holiday pay which dates back to an agreement in 1992.

The stoppage will disrupt Tube services on a busy day in the capital, causing big problems for shoppers, sports fans and visitors.

Talks have been held at the conciliation service Acas but the dispute remains deadlocked.

Howard Collins, London Underground's chief operating officer, said before the strike dates were announced: "We have been in discussions with the Aslef leadership to find a way to end this dispute and we made what we believed was a very fair offer.

"Unfortunately, this was not accepted and the offer has now been withdrawn so that further options to resolve the issue can be explored with the union at Acas.

"Further industrial action will not achieve anything and I would urge Aslef leadership to work with us to resolve this dispute."

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Female Directors 'Rocket Past Glass Ceiling'

More larger companies are hiring female directors, helping to boost their numbers by 240,000 over five years, a study has found.

The overall number of company directors has increased since 2007, according to information services company Experian, with more of them women than men.

The study of over 2.7 million businesses found the number of female board members was up by 24%, compared to 15% for their male counterparts.

Small companies, with between three and 10 employees, remain more likely than firms with over 250 workers to have female directors - but the gap is narrowing, Experian found.

In 2007, just 33% of larger companies had at least one female director, while in 2012 it had risen to 40%.

The number of smaller firms with at least one female executive was up from 48% in 2007 to 50% this year.

The report also found that a third of the 1.4 million businesses started since 2007 had one or more female director.

Experian's UK Managing Director said the research showed a more in-depth picture of women in the workplace across the UK than looking just at FTSE 100 companies.

"Smaller companies are clearly the driving force for female directors, but our research shows that larger companies' efforts to increase the number of female directors has made a significant difference over the past five years," Max Firth said.

"And let's not forget the contribution made by female entrepreneurs, with many starting up their own companies to manage work/life balance and fit with family commitments, without whom the number of female directors would be considerably lower."

But although the figures appear to show a step in the direction of workplace equality, Experian found little change in the industries dominated by females over the last five years.

In 2007, hairdressing, primary education and social work were the professions with the largest percentage of all female boards and this trend has increased further.

And in typically male-dominated professions, like plumbing, installation of electricity and software publishing, there were fewer all-female boards in 2012.

Mr Firth described the picture as "fairly static" when different industry sectors were compared.

"Whilst there are undoubtedly many women who are breaking new ground and overcoming stereotypes, our data shows that amongst the total population of UK companies, the industries with most female directors are pretty much the same as before the recession," he added.

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Taxpayer Faces £50m Bill For Comet Collapse

The taxpayer is facing a £50m bill for the collapse of electrical retailer Comet, a report from the administrator is set to reveal.

The report from Deloitte is likely to indicate that insufficient funds have been raised from the winding down of the chain to pay up to £24m in redundancy payments to 6,000 staff.

This means the Government will probably have to step in and ensure workers receive their payments.

The statement, expected to be published today, will also disclose that unsecured creditors - including HM Revenue and Customs - will get nothing.

The Tax Office is due some £26.1m by the firm.

Secured creditors, such as the backers of Comet's parent company Hailey Acquisitions, will get payments of just under £50m.

But according to the Sunday Telegraph, this represents a shortfall of £95m on the amount owed at the time of the collapse of the 236 store chain in early November.

The troubled Comet chain reportedly racked up losses of £95m in the year to April, followed by a further £31m in the subsequent five months as credit insurers lost confidence and withdrew support for the business.

Hailey Acquisitions was the investment vehicle put together by Henry Jackson of OpCapita, who raised the funding from unnamed investors for Comet's takeover from French retail group Darty.

Deloitte has said the last 50 stores will close for the final time tomorrow, amid speculation that the brand will be sold to an online retailer and around 20 shops picked up by rivals.

Unsecured creditors also included ITV and Google, which are owed £1.2m and £602,000 respectively for unpaid advertising bills, the newspaper said.

Meanwhile, holders of £4.7m of unclaimed Comet gift cards and vouchers are also on the list of unsecured creditors.

However, an estimated £40m of payments will be made to suppliers and £2.1m of holiday and back pay owed to staff will be paid in full.

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Ministry Of Defence Confirms Airwaves Sell-Off

The Ministry of Defence (MoD) has confirmed plans to sell part of its radio spectrum currently reserved for military purposes.

The sale of the airwaves - used to support superfast 4G mobile broadband - will be the first of its kind by a Government department.

It could bring in around £1bn for the Treasury, The Financial Times reported, although the MoD would not comment on the amount for commercial reasons.

The spectrum up for sale will be below 15 gigahertz - a valuable part of the radio spectrum because of its wide range of applications including radio, television, and data.

Around half of these airwaves are currently controlled by the Government, with the MoD holding around three quarters of this for defence purposes.

Mobile network operators are likely to bid for the spectrum, which will give them the opportunity to launch fourth-generation mobile services.

The announcement follows the Autumn Statement in which George Osborne said he planned to raise a total of £3.5bn from auctioning off other 4G spectrum.

But the Chancellor's decision to add the anticipated income to the nation's accounts was criticised for helping him avoid a rise in UK national debt.

The Minister for Defence Equipment, Support and Technology, Philip Dunne, said he welcomed the move to free-up the "much-needed" spectrum.

"We hope that the sale will help drive the roll-out of new generation networks and universal access to broadband, both of which are vital to the UK's prosperity," he added.

The auction is expected to be completed by the summer of 2014, after the Government's planned sale of other spectrum at the beginning of next year.

Last month, the telecoms regulator Ofcom set a reserve price of £1.3bn for the January sale, although the final figure could be much higher.

In 2000, the auction of 3G brought in more than £22bn for the Treasury, when the reserve price was £500m.

The then Chancellor Gordon Brown also used the proceeds to pay down national debt.

To date, EE, which owns Orange and T-Mobile, is the only mobile network to launch 4G products in the UK.

Its network, which offers speeds up to five times faster than 3G, is now available in London, Bristol, Birmingham, Cardiff, Leeds, Sheffield, Edinburgh, Glasgow, Liverpool, Southampton and Manchester.

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RBS and FSA Wrangle Over £150m Libor Fine

By Mark Kleinman, City Editor

Royal Bank of Scotland (RBS) is wrangling with the City regulator over the scale of its culpability in the Libor interest rate-rigging scandal amid fears that a settlement will leave the bank exposed to massive civil litigation.

I have learned that negotiations between lawyers acting for RBS and officials at the Financial Services Authority (FSA) have reached an impasse over efforts by the regulator to suggest that RBS employees acted as ring-leaders in an international conspiracy to manipulate benchmark rates.

Legal sources close to the FSA have told me that it has proposed that RBS pay a fine of in the region of £150m, which would be subject to a discount for early settlement.

The bank, which is majority-owned by British taxpayers, has rebuffed the terms of the proposed settlement on the basis that the available evidence demonstrates only limited culpability on the part of RBS employees.

The sources added that probes into RBS's involvement in Libor-rigging was focused principally on Yen Libor and Swiss Franc Libor, and not sterling or dollar Libor, as some reports had suggested.

One newspaper report yesterday suggested that RBS would face penalties of "at least £350m" but people close to the bank dismissed this as "guesswork". Based on recent discussions between RBS and regulators, insiders anticipate that the eventual fines will be well in excess of this figure.

An agreement between RBS and the FSA is now unlikely until the new year although it may still come before the bank's full-year results in February.

In addition to an FSA penalty, RBS is likely to have to pay hefty sums to the Commodities Futures Trading Commission and the US Department of Justice to end its involvement in the Libor-fixing scandal. Other regulators, including the state prosecutor in New York, may also levy fines.

Stephen Hester, RBS's chief executive, has been candid about the bank's involvement in Libor-related misconduct, admitting that the bank "trod on too many of the landmines out there".

Such is the convoluted nature of the investigations into Libor that RBS and other banks may not be able to reach a co-ordinated agreement with the various international regulators investigating the issue. European watchdogs are also likely to impose significant penalties on banks including RBS for breaching competition law when their traders agreed to fix interest rates.

Barclays became the first bank to settle with regulators over the Libor-rigging scandal, paying £290m in June to regulators in the UK and US. The settlement cost Barclays boss Bob Diamond his job – a bitter irony for the American banker in that he had elected to settle first because he calculated that it would be viewed as positive for Barclays' reputation.

Barclays' punishment included a £59.5m FSA fine that was reduced by 30% from £85m under the regulator's discount scheme.

The attempt to impose a fine of approximately £150m on RBS should not be viewed as evidence that its employees' transgressions were twice as bad as those of Barclays, an FSA insider said. Rather, it reflected an effort by the UK regulator to impose fines reflecting the severity of public and political concerns about the scandal.

Last week, the Serious Fraud Office announced that three City workers had been arrested as part of its probe into Libor manipulation. One of the trio, Thomas Hayes, had worked for RBS and UBS among other banks during his career.

In the next few days, UBS, the Swiss bank, is expected to pay in the region of $1.6bn to settle its Libor misconduct, a steep increase from the $1bn (£620m) reported at the end of last week.

The FSA and RBS both declined to comment.

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