'HS3' Northern Rail Link To Cut Journey Times

The Government has welcomed plans to extend high speed rail travel to northern England, potentially cutting the journey time between Leeds and Manchester by up to half.

The project, dubbed High Speed 3 (HS3), would cover an east-west section of northern England - across the Pennines - and would be in addition to the north-of-Birmingham phase two of HS2 which will see a Y-shaped route going to Manchester and Leeds.

Train services running between Liverpool and Hull will also be upgraded under the new plans, while journeys between Leeds and Birmingham, Leeds and Sheffield Meadowhall, York and Birmingham, and Nottingham to Birmingham could also be slashed by half or more.

HS2 Ltd chairman Sir David Higgins, who has put forward the plans in a report to ministers, said the northern connectivity would be "as important to the north of England as Crossrail is for London".

But Sir David told Sky News that the plans were in the early stages and there was no estimate as to how much the new link would cost. The budget for HS2 has been set at £50bn.   

He said: "We have not put a figure on the east-west link because it's got to be part of a much broader transport strategy."

He added: "It isn't anything like the budget of HS2 because the link is some 40 miles long, (and) the link would be a combination of existing track and some new tunnels to speed up the journey time from one hour to half an hour and to double capacity."

Phase one of HS2 involves a new high-speed line from Euston in London passing through the Chilterns to Birmingham, with an expected completion date of 2026.

Phase two was originally due to be completed in 2032/33, although Sir David is keen for this date to be brought forward.

Video: Early Days on HS3 Rail Link

The project is strongly supported by the Government but is bitterly opposed by some councils and residents along the phase one route.

Prime Minister David Cameron has backed Sir David's new plans which he said will "create a northern powerhouse and ensure that HS2 delivers the maximum economic benefits".

But he also admitted that high speed rail was not popular with everyone. Speaking in Leeds, Mr Cameron said: "These sort of decisions - decisions about our country and the future of rail - matter.

Video: Cameron: I Know HS2 Is Unpopular

"They are not always popular. HS2 is not always popular. But I profoundly believe they are right."

Chancellor George Osborne called the plans "another big step forward in delivering both the HS2 links from north to south and the HS3 link across the Pennines."

But Stop HS2 campaign manager Joe Rukin said the report "showed that the original plans for HS2 weren't thought through properly".

Video: Church Opposition To HS2 Route

He added: "Changing the mess that is phase two doesn't change the fact that phase one is still a complete mess, as is the entire concept of HS2."

Sir David's four main proposals in his report are:

::  Need to take forward both legs of the proposed HS2 Y-network - the alternatives will not bring the same capacity, connectivity and economic benefits.

Video: China's High Speed Rail Revolution

:: Improve the rail services between east and west - sharply reducing journey times between Liverpool, Manchester, Leeds, Sheffield and Hull will stimulate local economies.

:: Northern cities should speak with one voice - local authorities from five key cities should join together to form a new body.

:: Set out a timetable to develop a new transport strategy to decide on an approach for improving rail and road connectivity across and within the region north of Birmingham.

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Thousands March In Hungary Over Internet Tax

More than 10,000 people have marched on Hungary's economy ministry over plans to impose a tax on internet usage.

The crowd held up smartphone torches outside the building in Budapest - echoing democracy protests in Hong Kong - while chanting and waving signs.

Organiser Balazs Gulyas told the crowd: "There will be no internet tax. We will block it.

"If the tax is not scrapped within 48 hours, we will be back again."

Economy minister Mihaly Varga announced the tax of 150 forints (38 pence) for every gigabyte of traffic handled by internet service providers last week.

It was met by online outrage, with petitions gathering thousands of signatures.

Members of the crowd outside the economy ministry held up banners with messages including: "Free Wifi! Free internet! Free Hungary!"

Critics of Prime Minister Viktor Orban say this is his latest anti-democratic measure.

The crowd chanted "Orban get lost!" as it marched down the main boulevard of the capital after the rally.

Mr Orban, 51, was re-elected with a second consecutive two-thirds majority in April.

He has been under pressure in recent days after the United States issued entry bans on several government officials over suspected corruption.

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Lloyds Bank: More Than 200 Branches To Close

By Mark Kleinman, City Editor

Britain's biggest retail bank will set out plans next week to close more than 200 branches under a blueprint that will also see 9,000 jobs disappear.

Sky News understands that Lloyds Banking Group will say that a significant minority of its 2,250 branches across the UK will be shut by the end of 2017, ending a three-year moratorium on such closures.

The focus of the axe will be on urban centres where there are already multiple branches under Lloyds' individual brands operating in close proximity, according to one source.

Lloyds has roughly 1,300 branches under its own name, 670 as Halifax and 290 using the Bank of Scotland brand.

While the issue of bank branch closures is a sensitive one, Lloyds hopes that it will escape widespread criticism because its plans will not, for example, leave rural communities without access to their existing nearest branch.

Lloyds has already offloaded more than 630 branches as part of a state aid settlement with Brussels which resulted in TSB being spun out as an independent high street bank.

The plans will be presented to the City by Antonio Horta-Osorio

Adding a further 200 to that figure would mean that approximately 30% of the group's branches would have been offloaded or closed since the merger of Lloyds TSB and HBOS during the 2008 financial crisis.

Insiders said that Lloyds, which is 25%-owned by taxpayers, would also open some new branches during the next three years, with the exact net closures figure unclear this weekend.

The group would continue to operate the UK's largest branch network even after the plans are implemented, the source added.

People close to the situation pointed out that Lloyds was trying to be transparent by outlining a formal branch closures number, while some rival banks had been closing small numbers of branches on a regular basis but without making public announcements about their actions.

The plans, which will be presented to the City by Antonio Horta-Osorio, Lloyds' chief executive, will demonstrate the bank's vision for automating its customer-facing operations during a period when digital banking is forecast to continue its explosive growth rate.

Sky News revealed during the week that the revised strategy would trigger around 9,000 job losses.

Earlier this year, the British Bankers' Association (BBA) published research showing that UK-based customers conducted almost 40 million mobile and internet banking transactions each week in 2013, a huge increase on the previous year.

The job cuts at Lloyds, which employs roughly 80,000 people, will be on a smaller scale than the cull which has taken place since the merger of Lloyds TSB and HBOS.

Since then, tens of thousands of jobs have been axed at the combined group, and at rivals including Barclays, HSBC and the state-backed Royal Bank of Scotland (RBS).

It was unclear on Wednesday how many of the 9,000 roles affected would be in branches and how many in support roles at, for example, call centres.

The strategy update, which will be unveiled alongside results for the third quarter of 2014, is unlikely to include details of a return to the dividend list, with Lloyds expected to have to wait for the outcome of a Bank of England stress test in mid-December.

A spokesman for Lloyds declined to comment.

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Over Five Million Britons In Low-Paid Jobs

A record five million UK workers are now in low-paid jobs, according to a new report.

The Resolution Foundation think-tank said the number of people earning less than £7.69 an hour increased by 250,000 last year to reach 5.2 million.

The increase partly reflected growth in employment, but there was also a reverse in the previous year's slight fall in low-paid work.

Workers in Britain are more likely to be low paid than those in comparable economies such as Germany and Australia, said the Resolution Foundation.

The think-tank's chief economist, Matthew Whittaker, said: "While recent months have brought much welcome news on the number of people moving into employment, the squeeze on real earnings continues. While low pay is likely to be better than no pay at all, it's troubling that the number of low-paid workers across Britain reached a record high last year.

Video: Cameron On Employment

"Being low paid - and getting stuck there for years on end - creates not only immediate financial pressures, but can permanently affect people's career prospects.

"A growing rump of low-paid jobs also presents a financial headache for the Government because it fails to boost the tax take and raises the benefits bill for working people."

He added: "All political parties have expressed an ambition to tackle low pay. Yet the proportion of low-paid workers has barely moved in the last 20 years.

Video: Survey: Scottish Job Growth Slowing

"A focus on raising the minimum wage can certainly help the very lowest paid workers in Britain, but we need a broader low-pay strategy in order to lift larger numbers out of working poverty.

"Economic growth alone won't solve our low-pay problem. We need to look more closely at the kind of jobs being created, the industries that are growing and the ability of people to move from one job or sector to the other, if we're really going to get to grips with low pay in Britain today."

Video: Angry Exchanges Over Job Creation

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British Banks 'Can Survive Another Recession'

Shares in four British banks have fallen despite confirmation they passed a stress test to determine if they would be able to survive an economic crisis comparable to that of 2008.

The Royal Bank of Scotland (RBS) - 80% owned by the UK Government - satisfied the health check set by the European Banking Authority.

Lloyds Banking Group, which is 25% owned by taxpayers, narrowly met the requirements, which were designed to ensure that financial institutions will remain resilient in the event of another downturn.

However, the results of a more detailed stress test on British brands, performed by the Bank of England, are expected on 16 December.

Its share price fell 2% when the FTSE 100 opened for business on Monday morning while shares in RBS, HSBC and Barclays also lost value as concerns grew about 24 Eurozone lenders which failed the test and wider woes for the single currency bloc.

In a statement, Lloyds said: "Our strong position reflects the steps taken by the group's management over the last three years to return its balance sheet to a robust position, and we will continue to use this strong basis to help Britain prosper."

On Saturday, our City Editor, Mark Kleinman, revealed that Lloyds is planning to close more than 200 branches, placing 9,000 jobs at risk.

Lloyds and RBS - both part-owned by taxpayers - passed the stress test

A detailed report by the European Central Bank - which excluded British firms - revealed that 24 banks were in poor financial health and that 14 of those desperately needed to strengthen their buffers against losses.

It meant that one in five Eurozone banks may be unable to survive another major economic crisis.

Video: British Bank Stress Tests Explained

If the failing companies are unable to raise more cash in the next nine months, they could be forced to shut down. The financial institutions affected are mainly based in Italy, Greece and Cyprus.

Trading in shares of the world's oldest bank, Banca Monte dei Paschi di Siena, were suspended after a steep sell-off in early Italian trading.

It is hoped that the in-depth review, which covered 130 of the biggest European banks, will help to identify potential vulnerabilities in the banking system, give companies better access to credit, and strengthen the bloc's economy.

The ECB, which is based in Frankfurt, is set to become Europe's central banking supervisor on 4 November. It organised the test so it would become aware of any weaknesses before it gained regulatory powers.

One of the organisation's main tasks is to help small and medium-sized companies across Europe find it easier to get accepted for credit from their bank of choice, enabling them to expand and stay in business.

A lack of available credit has been blamed on the Eurozone's stagnation - with the group of 18 nations using the euro showing no growth whatsoever between April and June.

"This review of the largest banks' positions will boost public confidence in the banking sector," said Vitor Constancio, the vice president of the ECB. "It will help repair balance sheets and make the banks more resilient and robust."

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Rangers CEO Quits As Ashley Agrees Bailout

Newcastle United and Sports Direct owner Mike Ashley has won his fight to remove the chief executive of troubled Rangers Football Club.

It was confirmed on Monday that Graham Wallace had quit after the club agreed a £2m interest-free loan with Ashley, who gets to appoint up to two directors to the board in return for the cash.

Ashley, who owns almost 9% of the voting rights of Rangers, had previously been calling for a shareholder meeting to oust Mr Wallace and financial consultant Philip Nash.

Rangers said it has launched a search for Graham Wallace's replacement

Mr Nash resigned last week.

The former managing director of Newcastle United, Derek Llambias, is tipped to be given the vacant chief executive role.

The latest boardroom drama follows years of financial upheaval at the club.

It has climbed back to within one division of the top flight of the Scottish game after its 2012 collapse under a mountain of debt, which forced it to relaunch from the fourth tier.

However, its progress on the pitch - currently second in the Scottish Championship - has been marred by boardroom infighting and further financial losses.

On Friday, the Rangers board voted to accept the offer of an emergency loan from Mr Ashley, rejecting a £3m counter offer put forward by Sale Sharks owner Brian Kennedy, who was a member of the Blue Knights consortium which failed to stop the club sinking into liquidation in 2012.

It is understood Mr Ashley wants to increase his stake and there is press speculation he could even launch a bid to take control under what the Daily Record called a "power grab".

The billionaire has recently pulled off a string of surprise moves, including a put-option agreement last month on a small stake in Britain's biggest grocer Tesco and a move to increase his stake in Debenhams.

The Scottish FA is expected to contact Rangers this week to ask for clarity on Mr Ashley's role at the club.

He currently has an agreement with the SFA that restricts him from owning more than 10% of Rangers shares and from having undue influence in boardroom affairs, as a result of his ownership of Newcastle United.

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Musk Warns Of Artificial Intelligence Dangers

Tesla boss Elon Musk has warned that artificial intelligence - such as self-aware robots - is probably the biggest threat to the human race.

"With artificial intelligence we are summoning the demon," the founder of SpaceX said during a speech.

"In all those stories where there's the guy with the pentagram and the holy water, it's like yeah he's sure he can control the demon. Didn't work out."

Mr Musk was addressing the MIT Aeronautics and Astronautics department's Centennial Symposium when he discussed oversight to "make sure we don't do something very foolish".

Major technology companies including Google and Facebook are exploring the potential of artificial intelligence, which uses computers for tasks which usually require human intelligence.

Mr Musk hinted that some form of global oversight of artificial intelligence is needed to keep technology in check.

He said: "Increasingly scientists think there should be some regulatory oversight maybe at the national and international level, just to make sure that we don't do something very foolish."

Mr Musk has previously tweeted dark warnings that the results of artificial intelligence could be "more dangerous that nukes".

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'HS3' Northern Rail Link: Commuters Fear Cost

By Becky Johnson, North of England Correspondent

As bleary eyed passengers boarded the 06.57 train to Leeds at Manchester Piccadilly this morning, most had already heard about plans that could halve their commute between the two northern cities.

It's a popular commuter route and the trains are regular at peak times. In fact, there are no fewer than 12 trains between Manchester and Leeds that reach their destination before nine o'clock in the morning.

Despite that, the 06.57 was less than half full as it pulled away from Manchester on time to begin its scenic route across the Pennines, which currently takes 49 minutes.

On board, Ian Bennett, 45, and from Manchester, described himself as a reluctant commuter. Despite making the journey every day, he is dubious about plans for new investment, dubbed High Speed 3 (HS3), to cut the journey time to less than half an hour.

He told Sky News: "It's under an hour anyway and I think a faster train will cost more than we pay now.

Video: Rail Plans For Northern England

"I already pay nearly £3,000 a year. I wouldn't use it if it was more, definitely not."

Sitting next to him was Kendall Isaac, 44, from Leeds. He travels between Manchester and Leeds about three times a week and said: "I would definitely like faster trains. I'd even be willing to pay a bit more but it would depend how much."

On the seat behind them passenger Frank Taff agreed.

"I'd certainly use it, but it all revolves around how much it costs," he said.

Video: Rail Boost In North Of England

He added that he is happy with the current journey time between Manchester and Leeds, but he would prefer it if his journey on to York was quicker.

As the train pulled in to Leeds (on time at 07:46) passengers quipped that they would be retired by the time HS3 was ready anyway.

But the Government will hope the plan is attractive enough to northern commuters to win some votes in next year's general election.

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Energy Bills: Battle For Cheapest Tariff

A price comparison website says energy firms are battling to offer the cheapest deal on the market but there is not much between them.

According to uSwitch, Extra Energy's fixed price deal to November 2015 was currently the lowest on offer at an annual average of £976 under its calculation formula - with just £1 separating it from the next cheapest, First Utility's iSave.

Its energy spokesman, Tom Lyon, said: "With temperatures starting to fall, competition is really starting to heat up in the market.

"Extra Energy undercut First Utility's latest tariff by just a pound only a few hours after it was launched, bringing them back to pole position in the best buy tables.

"But the 'Big Six' are now raising their game and responding with more competitive deals.

"npower's new tariff at £1,000 is fixed to November next year ... meaning that 'Big Six' suppliers now offer five of the ten best deals.

"As winter approaches, there's no sign of this price battle ending and consumers look set to be the winners."

uSwitch released its report as suppliers remain under pressure over prices - with the industry regulator Ofgem keen that suppliers explain why falls in wholesale costs are not being passed on to customers.

It wrote to firms in June citing a 38% annual fall in wholesale gas for next-day delivery.

Costs have fallen further since amid lower oil prices and weaker demand.

The Competition and Markets Authority is currently investigating the energy sector after Ofgem said households were paying too much for gas and electricity and consumer trust had to be restored.

The 'Big Six' Firms, which have denied suggestions they are quick to put prices up when costs rise and slow to cut them, have argued they face growing costs to maintain and expand energy provision and pricing depends on when the wholesale energy was bought.

They also point to lower profit expectations.

There are fears of an energy crisis this winter after fires at npower's Didcot gas-fired power station earlier this month and at Ironbridge and Ferrybridge.

As cracking problems continue to be checked at Heysham and Hartlepool nuclear power stations, some 4.3 gigawatts of the UK's conventional and nuclear electricity output has been taken offline.

It amounts to 7% of the total.

There is also more energy capacity temporarily offline due to planned maintenance or statutory outages.

Meanwhile, grid operator National Grid has announced measures to keep the lights on, including a scheme which pays businesses to reduce electricity use, and ministers have insisted the lights will not go out.

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Sports Direct Settles Zero-Hours Legal Case

Sports Direct is updating the terms of its zero-hours contracts for more than 20,000 staff after settling a case brought by a former employee who claimed to have suffered panic attacks.

According to law firm Leigh Day, the retailer controlled by Newcastle United owner Mike Ashley agreed to a number of legally-binding changes to its recruitment and policy practices for zero-hours workers.

The use of zero-hours contracts - recently investigated by the Government - is controversial because they offer no guaranteed hours of work, although supporters have argued they give workers greater flexibility.

Leigh Day said that the settlement with former worker Zahera Gabriel-Abraham meant Sports Direct was required to "expressly state that the roles do not guarantee work and produce clear written policies setting out what sick pay and paid holiday their zero hours staff are entitled to".

Elizabeth George, who represented Ms Gabriel-Abraham in her claim against Sports Direct for sex discrimination, unfair treatment and breach of holiday rights, said: "Sports Direct continue to deny any wrong doing or short-falls in their treatment of zero-hours workers but Zahera and many more of the company's zero-hours staff will tell you differently.

"Zero-hours workers are not second class workers. They have the right to be treated fairly and with respect.

"They have the right to take holidays and to be paid when they take them.  They have the right to statutory sick pay.  They have a right to request guaranteed hours. 

"Sports Direct will now have to make that crystal clear to staff."

Ms Gabriel-Abraham said: "I was told that if I took holidays, I wouldn't get holiday pay, and that if I was ill I wouldn't get sick pay.

"It made me feel trapped and helpless, but it's something that Sports Direct won't be allowed to get away with any more.

"Only time will tell whether Sports Direct are really dedicated to improving how it treats its workers. This is a good result for Sports Direct employees, but the fight isn't over yet."

Sports Direct said: "Sports Direct confirms that we have reached a settlement with Ms Gabriel-Abraham.

"The settlement is without any admission of any liability on the part of Sports Direct whatsoever.

"It was clear from the proceedings that we and Ms Gabriel-Abraham felt equally strongly about our respective positions and that each had different perceptions of the events that took place.

"The company will continue the process of reviewing, updating and improving our core employment documents and procedures across our entire business beyond its existing compliant framework."

The Government is considering a ban on exclusivity clauses in zero-hours contracts, which has been called for by unions.

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