RBS: Latest IT Glitch 'Is Fixed'

Royal Bank of Scotland says it has fixed its latest IT failure, which affected two million of the group's customers ahead of the Easter weekend.

Users of the NatWest, RBS and Ulster Bank mobile app found they were locked out of the service this morning, prompting the bank to issue an apology as it worked to resolve the problem.

Five hours later the bank released a statement which said: "All our mobile banking applications are now running normally. We apologise again for the inconvenience caused to our customers."

There was no reason given for the outage.

There are more than two million active users of the app among RBS and NatWest personal banking customers alone, with 13 million log-ins taking place each week.

App users have taken to Twitter to vent their frustration

Customers vented their anger at being let down again by the group's technology with one Twitter user writing: "No access to my iPhone app think it's time to change banks!"

The latest IT issues came to light just three weeks after a hardware fault prevented RBS Group customers from using cash machines and also affected online and telephone banking services.

The group had earlier taken a £175m hit as a result of IT chaos last summer which left NatWest, RBS and Ulster Bank customers locked out of their accounts. The bulk of the redress costs related to Ulster Bank, where the problems took weeks longer to clear up.

Last October, NatWest had to suspend a feature on its mobile phone app called GetCash, after the service was subject to a spate of so-called "phishing" attacks by fraudsters.

The GetCash service, which allows customers to withdraw cash without using a debit card, was later re-instated after security was bolstered.

Earlier this month the bank announced a new mobile banking feature for RBS/NatWest customers called Pay Your Contacts, which allows them to send payments of up to £100 to anyone with a Visa card, by entering their mobile number.

A spokeswoman for consumer group Which? said all the problems would raise wider questions about how robust and up to date banks' IT systems were.

She said: "Consumers and businesses alike rely on mobile banking services to access their accounts and consumers will rightly want to be assured that their money is accessible and safe at all times."

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Nissan Leaf Flies Off UK Production Line

The first all-electric car to be built in the UK has rolled off the production line.

The manufacturing of Nissan's Leaf, which until today had been built solely in Japan, was shifted to Sunderland after the Japanese firm chose its UK plant for a £420m investment.

The car, which has had 100 upgrades to its design since it took to the roads two years ago, has shifted just over 50,000 models worldwide to date.

Critics suggest that is because motorists are yet to be convinced by the all-electric concept, previously identifying poor ranges, bad handling because of heavy batteries and thin tyres with recharging rates too slow.

Nissan has argued that its improvements address many concerns.

The five-seater hatchback, which goes on sale this summer, can travel about 125 miles on a single charge - powered by lithium-ion batteries which are also being made in the North East.

Nissan's Executive Vice President Andy Palmer said: "Today's announcement progresses Nissan's unwavering commitment to zero emissions motoring.

"The Nissan Leaf is our most technically advanced car yet and the launch of this new model, built along with its batteries in Sunderland, is a huge boost not only for the plant but for British manufacturing.

Prime Minister David Cameron attended the launch and was given a tour of the plant.

He was also shown a Leaf that was cut in half, to see how it works inside, and got the chance to stick a Nissan badge onto the front of one of the cars fresh off the production line.

He said: "I warmly welcome the production of the new electric LEAF model and battery plant at Sunderland.

"This £420m investment, backed by Government, is supporting over 2,000 jobs in our automotive sector including more than 500 at Nissan in Sunderland, helping people in the area who want to work hard and get on.

"The Government has committed £400m to make the UK a leading market for ultra low carbon vehicles.

"Nissan's announcement shows the confidence the company has in the skills-base and the business environment in the UK and that the UK is open for business."

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Deloitte Boss Blames Law For Tax Avoidance

The chief executive of one of the big four accountancy firms, Deloitte, has blamed UK law for the money lost as a result of tax avoidance.

Speaking on Jeff Randall Live, David Sproul admitted that the problem with the tax system is "mainly the law".

He said: "There's clearly tax practices that take advantage of the rules that the Government has brought in.

"The real question is the extent to which that is accepted. And I think there's no question that business recognises that what is acceptable has changed."

As an example of a practice no longer deemed acceptable, he cited the way banks used trust arrangements to pay bonuses to employees that meant they avoided national insurance and allowed them to defer the tax on those bonuses.

"That was widely accepted and was at the time widely used, we would have advised clients on it at the time. But we would not do that now."

In the middle of the Government's stringent austerity programme, large companies that have avoided paying tax legally have prompted much public anger and protests in recent times. Ministers are also anxious to do what they can to bolster the UK's public finances in the gloomy economic climate.

In his recent Budget, Chancellor George Osborne announced a series of measures to clamp down on aggressive tax avoidance and evasion in a bid to deliver an extra £4.6bn to the Exchequer.

The new initiatives included the immediate closure of 10 loopholes; the naming and shaming of those who promote tax avoidance schemes; and a new focus on offshore tax evasion through agreements with havens such as the Isle of Man, Guernsey and Jersey.

Mr Osborne also announced a tightening of the rules for companies that choose to arrange loans, which do not attract tax, for their directors or shareholders in place of taxable salaries or dividends.

Mr Sproul said "a lot" of the current tax gap was "at the small business and sole trader end".

"Some of it clearly is at the large business end and goes to some of the points (the Chancellor) is talking about," he added.

He denied claims that accountancy firms like his own used alleged staff shortages at HM Revenue and Customs to their advantage.

"The complexity (of the tax system) is what creates the problem, not the fact that HMRC may or may not have too few staff."

Mr Sproul welcomed the Chancellor's focus in this month's Budget on making the UK's tax regime more competitive, including the move to cut corporation tax to 20% from 2015. That was "very attractive, very important and does create jobs", he said.

He added that the reason "there is not a flood of companies coming to the UK now is not about the tax system, it's about the broader uncertainty in the economy".

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Weather: Economy Hit By Spring Snowstorm

By Nick Martin, Sky News Correspondent

Britain's fragile economy has been hit hard as a result of the spring snowstorm with some businesses reporting a slump in trade.

Some high street retailers say the cold snap kept customers away during what should have been the run-up to a busy Easter weekend.

Kingfisher, the owner of B&Q, reported a 13% drop in trade, while Next said it had seen a fall in sales during the bad weather.

Experts say the costs to the economy of the unseasonable weather could run into billions of pounds and threaten to impact on economic growth figures.

Some towns were cut off by the snow for up to a week making trading difficult on the high street.

In the Derbyshire town of Bakewell, which was badly affected by the snow, businesses were hoping the cleared roads would encourage locals and tourists back into the town.

Zoe McBurnie, owner of the Bakewell Tart and Coffee Shop, told Sky News that takings had dropped by £10,000 in just one week.

"The recession hasn't been too bad to us but the snow has been completely devastating.

"One minute you're busy and the next there's no-one coming in because the town is cut off by snow."

Some of the biggest losses were on farms where hundreds of livestock, including sheep, lambs and cattle, were claimed by the snow drifts.

On Nigel Birch's farm near Monyash in the Peak District, three calves lay dead on the yard, victims of the worse snowstorms there for 50 years.

Hundreds of sheep had to be taken inside and fed on expensive corn feed whilst stocks of silage were running low.

As lambing season enters full swing, newborns were left shivering in freezing conditions and had to be kept under heat lamps.

"This has been a very difficult week - one I want to forget," Mr Birch said.

"We've lost cattle, we're paying for new hay, feed and silage and in the end I think this spell will cost us between £5,000 and £10,000."

Tourism was also badly affected as roads became impassable and families chose to cancel holidays.

Nikki Dick, a B&B owner, said her diary was empty as guests were reluctant to book or could not get to her because of blocked roads.

"If I look at last year's diary for the same time it is full. This year we have a few bookings, but after that there's nothing.

"People have panicked and thought they're best to stay away.

"But the snow has been cleared, and we're all here open for business," she said.

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Facebook: Frank Gehry Campus Gets Approval

Facebook has been given permission to go ahead with Frank Gehry's vision for a second campus at its California headquarters.

Facebook founder Mark Zuckberg met Gehry (left) during the design stage

Thousands more people will be employed at the Menlo Park site near its current Silicon Valley base.

The 433,555 sq ft building will have a rooftop park and be built on a 22-acre site.

Gehry, one of the world's most prominent architects, is known for the likes of Bilbao's Guggenheim Museum and the Walt Disney Concert Hall in Los Angeles.

The design features a rooftop park and will blend into the landscape

His creative partner told the local council that Facebook thought initial designs were too "flashy", reports the Palo Alto Daily News.

"They asked us to make it more anonymous," said Craig Webb.

"Frank was quite willing to tone down some of the expression of architecture in the building ... Our intent is that it almost becomes like a hillside, with the landscape really taking the forefront."

The company says 2,800 engineers will eventually work at the new site.

Frank Gehry is perhaps most famous for Bilbao's Guggenheim Museum

A tunnel will also connect the new campus with Facebook's existing building.

"It will be a large, one room building that somewhat resembles a warehouse," said Everett Katigbak, Facebook's environmental design manager, in a blog post last year.

"Just like we do now, everyone will sit out in the open with desks that can be quickly shuffled around as teams form and break apart around projects.

LA's Disney Concert Hall also bears Gehry's distinctive style

"There will be cafes and lots of micro-kitchens with snacks so that you never have to go hungry.

"And we'll fill the building with break-away spaces with couches and whiteboards to make getting away from your desk easy."

Facebook's expansion has seen the company grow from a Harvard dorm-room to a worldwide company with nearly 5,000 employees and more than a billion users.

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Cyprus Banks: President Makes Rallying Call

Cyprus' president has called on the country to "share the burden" of its financial crisis - as bank withdrawal limits remained at 300 euros.

President Nicos Anastasiades made a rallying call for understanding as queues formed outside banks on the Mediterranean island.

The banks reopened on Thursday for the first time since closing on March 16 to prevent people from draining their accounts at the height of the crisis.

The country has imposed daily withdrawal limits of 300 euros (£250) for individuals and 5,000 euros (£4,200) for businesses.

The limits are the first so-called capital controls that any country has applied in the eurozone's 14-year history. 

Depositors wait for the opening of a branch of Laiki Bank in Nicosia

Speaking at a civil servants union convention on Friday, Mr Anastasiades said: "The deal we agreed on, after the dramatic hours we all lived through last week, is without doubt painful.

"Everyone will have to make sacrifices as our financial situation, in the violent way in which it has developed, will oblige all of us to share the burden."

Despite the turmoil of the past weeks and harsh conditions of the rescue, Mr Anastasiades stressed that his country's future lay firmly within the euro.

"We are not going to leave, I stress, from the euro ... We will not, I stress, endanger the future of our country with dangerous experimentation."

Meanwhile, queues formed outside some banks just after opening time, but most were gone by mid-morning.

Financial strains are building on families and businesses, and the recession in Cyprus is likely to deepen.

Cyprus' banks became much bigger than the country's government could afford to rescue - more than seven times the size of the country's economy.

On Monday, Cyprus agreed to make the banks' bondholders and big depositors contribute to the rescue in order to secure 10 billion euros (£8.4bn) in loans from the eurozone and the International Monetary Fund.

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Post Office Staff On Strike Over Closures

Thousands of staff in the country's biggest post offices are striking in a row over jobs, pay and closures.

Members of the Communication Workers Union (CWU) in around 370 so-called Crown offices were mounting picket lines in protest at plans to close or franchise 70 branches.

The union said the walkout was "solidly" supported by thousands of its members, with picket lines set up outside post offices across the country.

The Post Office said that out of the 370 Crown branches, 10 were closed all day and more than 250 closed at lunchtime.

But it said that the 166 Crown branches that have external ATMs will be fully stocked for customers to withdraw cash on Saturday.

The union organised the strike because it believes 800 jobs are at risk and also staff had not received a pay rise for two years.

The Post Office put forward the restructuring plan because Crown branches were losing £40m a year and accused the union of ignoring the "harsh realities" the company faces.

Dave Ward, the CWU's deputy general secretary, said: "Our post office members are standing up against destructive plans which would slash 20% of the Crown network and are simply asking for fair treatment and job security.

"The Post Office's plans are short-sighted and would rob the network of the most productive offices while simultaneously putting hundreds of jobs at risk and potentially damaging local economies.

"We'd like to see a better vision for a successful network which maintains services in the heart of communities alongside quality jobs."

The strike follows a ballot of workers in which 88% of those who voted demanded action.

Kevin Gilliland, network and sales director at the Post Office, said: "We regret any disruption to services the CWU's call for strike action may cause to customers. Crown branches are currently losing £40m per year and this is being subsidised by public money. This cannot continue.

"The Post Office is transforming its network to improve customer experience and in turn bring in new business. We are committed to the Post Office remaining a key part of UK high streets and our plans ensure this will happen."

He said the closures - which do not apply to smaller sub-Post Offices - affect less than 1% of the total network. At the same time as closing some branches, the Post Office was planning to improve the 300 other Crown offices.

The union said it was receiving strong public support for its campaign, with petitions circulating in areas affected by the proposals.

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Cyprus Bank Deposits 'To Lose 60% Of Value'

Savers with more than 100,000 euros in the Bank of Cyprus could lose up to 60% of their deposits, two senior officials have warned.

The Central Bank official and the Finance Ministry technocrat said sums held at the country's largest lender will  lose 37.5% of their value after being converted into bank shares.

And the pair said the deposits could lose up to 22.5% more in value, depending on an assessment by officials who will determine the exact figure aimed at restoring the troubled bank back to health.

Both figures were speaking to the Associated Press on condition of anonymity because they are not authorised to publicly discuss the issue.

Cyprus' President Nicos Anastasiades

It comes after Cyprus agreed on Monday to make depositors contribute to a financial rescue in order to secure 10 billion euros (£8.5 billion) in loans from the eurozone and the IMF.

Cypriot President Nicos Anastasiades defended the bailout deal, saying it had contained the risk of national bankruptcy.

"We have no intention of leaving the euro," the conservative leader told a conference of civil servants on Friday in the capital, Nicosia.

"In no way will we experiment with the future of our country," he said.

Cypriots have expressed anger at the price attached to the rescue - the winding down of the island's second-largest bank, Cyprus Popular Bank, also known as Laiki, and an unprecedented raid on deposits over 100,000 euros.

Under the terms of the deal, the assets of Laiki bank will be transferred to Bank of Cyprus.

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Cyber Currency Surge Amid Eurozone Crisis

By Siobhan Robbins, Sky News Reporter

As the eurozone is rocked by the crisis in Cyprus, a cyber currency called Bitcoin has seen a surge in popularity from people looking for an alternative place to invest their money.

Bitcoins are basically virtual money which can be earned or bought. They were created four years ago by a hacker who remains anonymous.

There are no banks to control them, people just exchange them directly with each other over the internet. That makes them difficult to tax, trace or freeze.

In the last month, the Bitcoin has more than doubled in value.

It is claimed the surge is partly down to people in cash-strapped countries including Spain and Greece turning to Bitcoins in the hope of protecting their money.

Amir Taaki has helped develop the Bitcoin since it was created by a hacker

Amir Taaki, who has helped to develop it in the UK, told Sky News he believes it is a purer alternative to traditional banks.

"There are so many things that are wrong and broken with banks. Primarily, the biggest problem is I have to trust them and I have no other option.

"Bitcoin is a basic system where I can choose how much trust I put in other people.

"There is no central bank or central authority controlling it. Everyone that participates in the network is upholding the network and it's not a theoretical concept but a billion dollar market with charts and graphs and people are using it.

"Because it's decentralised and runs off a mathematical algorithm it means it can't be corrupted."

The premises where the digital currency is being developed

The huge spike in value makes it an attractive investment for some, but currency experts like Simon Smith from FxPro warns against that.

"It's totally unsafe. They might as well burn their money in a pile as far as I'm concerned. Yes, Bitcoin has doubled in value over the last month but it has every sign of being a bubble."

Bitcoin has reached an all-time high, trading at almost £60. Its market value is now more than £500m.

Some restaurants and shops already accept Bitcoin as payment and its supporters claim that in the future it will be dispensed from ATMs like pounds and euros.

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Bank Of England Powers Increase Amid Overhaul

The Bank of England is to become one of the world's most powerful central banks as the biggest overhaul of financial regulation for 16 years takes effect.

Sweeping changes are undoing the system set up by former Prime Minister Gordon Brown when he was Chancellor in 1997.

The Financial Services Authority (FSA) is being replaced by three new bodies - the Financial Policy Committee (FPC), the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA).

The new system comes instead of the so-called Tripartite structure of the FSA, Treasury and Bank of England, which was blamed for being "asleep at the wheel" during the 2008 financial crisis.

George Osborne hopes the new system will fix financial regulation

With both the FPC and the PRA sitting within the BoE, it will take on vast new powers and responsibility not just for regulating lenders, but also spotting and preventing possible financial shocks.

It marks a return of regulatory powers to the central bank, which were taken away from it on gaining independence in 1997.

Chancellor George Osborne is hoping the shake-up will plug the gap that previously existed in the Tripartite system, with no one taking responsibility for monitoring risks to the financial system as a whole, such as the lending boom.

He has previously criticised the structure for being "incoherent" and "without clear lines of accountability".

This perceived lack of oversight was blamed for excessive lending that sparked a sub-prime mortgage crisis and in turn the credit crunch and banking meltdown.

The system brought in by ex-PM Gordon Brown will be swept away

The changes also hope to address the FSA's self-proclaimed "light touch" regulation, which saw the watchdog fail to rein in the banks.

It has since admitted mistakes were made in the run up to the collapse of Northern Rock, while it appeared woefully inept in preventing the banking scandals that have emerged in recent years - such as the Libor interbank rate-rigging affair and the mis-selling of payment protection insurance (PPI).

As the pillar of the incoming regime, the FPC will take the broadest overview of financial regulation.

The PRA will ensure banks and insurers have enough capital and liquidity, while the FCA will protect consumers by promoting effective competition and regulating all financial services firms.

PRA chief Andrew Bailey has already promised a more intrusive approach to regulation of the 1,700 financial institutions under his remit.

Incoming bank chief Mark Carney recently outlined his thinking for MPs

His counterpart at the FCA, Martin Wheatley, has also pledged to clean up the sector with new powers to suspend or ban products and issue fines.

But there are concerns the BoE will become too powerful, given that it also has responsibility for monetary policy in the UK.

In a stark warning, the former head of Germany's central bank said recently it risked impacting its independence.

Ex-Bundesbank boss Axel Weber, who currently chairs Swiss group UBS, said he "flatly refused" taking on a regulatory remit when he was head of the bank due to concerns over independence.

The man wielding the BoE's new powers will soon be Mark Carney, who is currently Canada's top central banker. He takes over from governor Sir Mervyn King in July.

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