High Streets bid for £1m funding

4 February 2012 Last updated at 06:01 GMT Mary Portas recommended that town centres be managed through new "town teams" The government is looking for 12 run down High Streets in England to share £1m as part of plans proposed by TV retail guru Mary Portas.

Areas will bid for support from a dedicated team and Ms Portas herself.

The scheme was described as a "golden ticket" for town centres by local government minister, Grant Shapps.

The Local Government Association, which represents councils, has said that the pilot "simply tinkers around the edges".

"We urge the government to step up and give councils some real power," said its spokesman Peter Box.

"Councils don't want to see short-term schemes - instead they want to see some firm action and a commitment from all government departments and agencies."

But ministers said it was hoped other towns would "adopt and implement the ideas" in the pilots.

A spokesman at the Department for Communities and Local Government added: "Far from tinkering around the edges, these pilots will have every opportunity to bring real and lasting change to the role of our High Streets to turn them into places local people want to be.

"We want to see ambitious and innovative schemes that test the potential of the recommendations Mary Portas put forward."

No magic bullet

The British Retail Consortium, which represents Britain's retail industry, has been positive about the plan but pointed out that £1m spread amongst 12 town centres will not go far.

"High streets are a fundamental part of our communities and need to move with the times," said Tom Ironside, director of business at the British Retail Consortium in a statement.

"Introducing pilots to address specific local issues could identify new innovations and approaches which might also work elsewhere. But this is no magic bullet and must be accompanied by other steps, as swiftly as possible."

In the same statement Mr Ironside called for a change to the 5.6% rate of tax for business rates which is set to come into effect in April.

'Town teams'

Ms Portas, the star of TV show Mary Queen of Shops, was appointed to advise the government on town centres in 2011.

As part of her review, Ms Portas recommended that town centres be managed through new "town teams" who would be responsible for developing businesses in the area.

The competition acts on this and introduces town teams, made up of landlords, shopkeepers, residents, and the local authority and asks them to come up with a vision for their High Street.

Other ideas from her review range from introducing market stalls and free parking schemes to cutting restrictions on night-time deliveries.

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US job numbers show strong growth

3 February 2012 Last updated at 21:45 GMT President Obama: "The economy is growing stronger and the recovery is speeding up"

The US economy created 243,000 jobs in January, the highest total for nine months, official figures show.

The rise was much more than expected. Analysts had forecast an increase of about 150,000 jobs.

The unemployment rate dropped to 8.3%, which was the lowest rate in nearly three years, and down from a revised rate of 8.5% in December.

News of the jobs growth caused shares to rocket up, with the Dow Jones index up 156 points at 12,862, its highest level since May 2008.

The Nasdaq index, which specialises in technology companies, soared to its highest level since December 2000 by the close of trading on Friday.

In Europe, the FTSE 100 index hit its highest level since July 2011 rising 1.8% while Germany's Dax closed up 1.6%. The Cac 40 in France was 1.5% higher.

Employment boost

However, a report on Wednesday by the US Congressional Budget Office, a federal agency, forecast that unemployment would climb to nearly 9% in the last three months of this year and peak at 9.2% early next year.

Friday's data from the Labor Department showed job growth had been widespread, with large gains in business services, leisure and hospitality, and manufacturing.

Leisure and hospitality, which includes restaurants and hotels, added 44,000 jobs.

Retailers added nearly 11,000 jobs, and professional and business services, which includes higher paying jobs in accounting, architecture and engineering, gained 70,000 - the most in 10 months.

Continue reading the main story Paul Adams BBC News, Washington

As always, the numbers are complex. But it's hard not to see this as good news - for the economy and Barack Obama's re-election chances.

The figures don't take account of those who are no longer looking for work. And the Congressional Budget Office has warned that the rate of unemployment may creep back up during 2012, that growth will be sluggish and that trillion dollar deficits aren't about to disappear.

But you can't argue with a quarter million new jobs, or with an unemployment rate that is dropping. Right now, it's back where it was when Barack Obama took office three years ago.

How does this translate politically? If this pattern continues, it's hard to see how he isn't heading for a second term. The Republican message, for now, is "the recovery could have been so much swifter without this president". That is a much harder message to sell than what is actually happening.

Obama's challenge now is to turn raw data into a general belief that things are getting better.

Factories added 50,000 workers, much more than expected and a one-year high.

Retailers added 10,500 workers and construction employment rose by 21,000. Analysts believe the figure was helped by a mild US winter, which boosted employment in those sectors.

The report was also buoyed by revisions to November and December data, which showed 60,000 more jobs created across the two months than previously reported.

Upbeat data

Lindsey Piegza, economist at FTN Financial, said: "It was a better-than-expected report, the strongest report that we've seen in quite some time.

"The big question is whether the reason we're seeing the unemployment rate drop is because more and more people are dropping out of the labour force.

"I know the market wants to rally on this number but remember we need a minimum of 250,000 just to cover demographic change."

The figures add to a range of data pointing to a gradual US economic recovery.

On Friday, the US Institute for Supply Management said its services index rose to 56.8 last month from a revised 53.0 in December. It was the highest level since February 2011.

The new orders index climbed to 59.4 from 54.6 while employment in the vast services sector was also strong, rising to the highest level in six years at 57.4 from 49.8.

Last week, it was announced that the US economy expanded at a 2.8% annual pace in the October-December quarter, a full percentage point higher than in the previous quarter.

Earlier this week, a survey from the Institute for Supply Management (ISM) indicated that the US manufacturing sector expanded at its fastest pace in seven months in January.

Unemployment and economic recovery has been a dominant issue in the campaign for November's US presidential elections.

Although the downward trend in joblessness augurs well for Barack Obama's prospects of a second term, he is still likely to face more voters out of work than any post-war president.

When Ronald Reagan won re-election in a landslide victory in 1984, joblessness in the US stood at 7.5%.

In 1932, in the midst of the Great Depression, Herbert Hoover was voted out of office in a year when unemployment was at 23.6%.

His successor, Franklin Roosevelt, faced joblessness rates of 16.9% in 1936 and 14.6% when he was re-elected four years later, according to data from the US Bureau of Labor Statistics.

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BT cuts costs to increase profits

3 February 2012 Last updated at 07:29 GMT BT says more people are taking up its high speed services Telecoms group BT has reported a rise in profits, thanks to cost-cutting and an increase in broadband users.

Pre-tax profits for the three months to the end of December were £652m, 48% higher than a year earlier. Revenue fell 5% to £4.77bn.

Excluding one-off items, profits increased by 18%.

The company said it had expanded the availability of its fibre-optic broadband to seven million homes and signed up 95,000 customers to it.

"We have delivered another quarter of growth in profits and cash flow despite the economic head-winds," said chief executive Ian Livingston.

"In the UK, our fibre roll-out has accelerated bringing super-fast broadband within reach of over seven million homes and businesses and we remain the number one broadband retailer with over six million customers," he added.

The company said labour costs fell by 3% while payments to telecommunications operators fell 15% due to lower call volumes.

Pensions

However the firm saw a significant increase in its pension deficit, which rose to £4.1bn.

BT said the rise reflected low returns on corporate bonds, "reflecting the impact of quantitative easing and recent inflation being higher than the long-term assumptions".

The market value of the scheme's assets also fell during the quarter.

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Score draw in TV football case

3 February 2012 Last updated at 15:30 GMT By Bill Wilson Business reporter, BBC News The Premier League has enjoyed a number of lucrative TV deals since its formation in 1992 The Premier League and the importers of foreign satellite TV decoder boxes and cards are both claiming victory after their latest court battle.

Satellite systems from other parts of the EU were sold to pubs for less then that charged by Sky and ESPN, who have exclusive UK deals with the league.

Now, after a High Court hearing, the league says it will take action against pubs for breach of copyright.

But the satellite importers claim they are free to carry on their business.

Copyright v competition

The Premier League had initially taken out a civil action against QC Leisure (a digital box supplier), and SR Leisure Limited (a publican).

That case was sent to the European courts - along with that of pub landlady Karen Murphy, who had shown games in her pub using a QC decoder - for legal advice and guidance on points of law.

It meant that UK prosecutions for using these systems had been put on hold while the case went to the European courts.

Last autumn, the European courts ruled that national laws that prohibit the import, sale or use of foreign decoder cards were contrary to the freedom to provide services.

But is said while live matches were not protected by copyright, any surrounding media, such as any opening video sequence, the Premier League anthem, pre-recorded films showing highlights of recent Premier League matches and various graphics, were "works" protected by copyright.

High Court ruling

Now the High Court has said that in some aspects the importers of foreign satellite equipment had been in breach of Premier League copyright by allowing the showing of foreign broadcasts.

But it also said that the Premier League had only proved its claims of breach of copyright "to a limited extent".

Lord Justice Kitchen added that "the defendants who are continuing to trade must be entitled to carry on their business in a way which avoids infringement of [Premier League] copyright if they are able to do so".

Furthermore, he said that clauses in Premier League TV contracts with national broadcasters that prohibit them from broadcasting Premier League games outside their own country's borders may constitute "a restriction on competition".

'Court declaration'

The Premier League said: "It is clear that the law gives us the right to prevent the unauthorised use of our copyrights in pubs and clubs when they are communicated to the public without our authority.

"We will now resume actions against publicans who are using European Economic Area foreign satellite systems to show Premier League football on their premises unlawfully and without our authority."

Anand Pattani, is a lawyer at Smithfield Partners legal firm, which has represented QC Leisure and other defendants.

"Our clients are extremely pleased that, in line with the finding of the European Court, the judgment confirms that the majority of claims against our clients are to be dismissed," he said.

"Insofar as there has been a finding of infringement relating to a limited number of artistic works our clients also welcome Lord Justice Kitchin's confirmation that they must be entitled to carry on their business in a way which avoids any such infringement. "

Investment

Daniel Geey, of FFW legal firm, is an expert on sport broadcasting issues.

He says the High Court will now "make a declaration which will set out the precise infringing acts established against QC Leisure and the other defendants".

And he said the overall effect of the High Court ruling, with its observations with regard to territorial sales of TV rights, "may may have significant implications for the way that the Premier League will be able to tender its matches in the next rights auction".

Sky has pumped billions into top flight English football since the league was founded in 1992, with the money given to clubs allowing them to buy some of the top names in the world.

The Premier League's television income from mainland Europe is about £130m, less than 10% of their total £1.4bn overseas rights deal.

Ms Murphy's case will be heard in the High Court later this year.

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Annuity sales 'unfair and opaque'

4 February 2012 Last updated at 00:01 GMT Finding the best value annuity can be difficult and too many retirees do not bother looking The way annuities are sold is costing half a million retirees each year as much as £1bn in future pension income, a report claims.

The National Association of Pension Funds said the sale of annuities was "hugely unfair and opaque".

Annuities are the annual incomes most retirees buy with their personal pension pots.

The NAPF said the problem lay with obstacles that stopped many people shopping around for the best deals.

Its report also said the insurance firms which sell annuities were guilty of "sharp practice and murky pricing".

"The process for choosing an annuity is a complex one and the majority still go for the "default" option by sticking with their pension scheme provider," the NAPF said.

"This failure to shop around for a better deal can wipe 30% off their annual pension income, and in some cases up to 50%," it argued.

'Toxic system'

The NAPF based its arguments on research carried out by the Pensions Institute, a department of the Cass Business School in London.

With the decline of final-salary pension schemes, most people employed in the private sector now put their pension contributions into so-called defined contribution schemes.

In these, their contributions are invested and when they retire the accumulated sum can be used to buy a guaranteed annual income for life.

The problem, the NAPF said, is that many obstacles are in the way of those who might be better off shopping around among different insurance firms - the "open market option" - rather than just accepting the annuity offered by their pension saving company.

Joanne Segars, chief executive of the NAPF, said savers were being "short- changed by a toxic system".

"Every year a billion pounds that could have been paid out in pensions instead disappears down the plughole of a murky annuity market," she said.

"Lower and middle income workers are especially vulnerable - too many end up stuck with the wrong annuity at a bad price," she added.

Persuasion needed

The NAPF's report said most people retired with pension pots worth less than £50,000.

However these were not large enough for most annuity advisers to make a profit by giving advice on which annuity should be bought.

Few people, the NAPF argued, knew enough to successfully chose an annuity themselves.

And those who were able to shop around may have found that the best deals were simply not advertised.

"It is virtually impossible to find a specialist adviser who covers the whole market and who is willing to help those with smaller funds," the NAPF said.

Meanwhile, most employers did little more than give their retiring staff a leaflet directing them to a price comparison website.

Tom McPhail, of the financial supermarket Hargreaves Lansdown, said: "The pensions industry and the government have a responsibility to ensure that the information sent to investors in the run up to retirement makes it as easy as possible to shop around."

"This is something they have demonstrably failed to do in the past and even today it is proving a struggle to push insurance companies and pension schemes into giving their customers a fair deal," McPhail added.

However he argued that there are in fact enough annuity brokers who would be willing to advise customers with small pension pots, but the problem lay in persuading retirees to use them.

"At present investors sometimes struggle to see past their existing insurer's uncompetitive annuity terms and to find someone who can help them get a better deal," he said.

Inaccurate

The NAPF report also took a dim view of the way annuities are priced by the insurers selling them.

It identified a number of "sharp practices" such as insurers "tailoring" their annuity prices according to how much money was being used to buy the annuity.

"Annuity rate bands can have 'cliff-edges'... penalising customers who could get a better rate by having as little as £1 more in their pot," it said.

Otto Thoresen, director general of the Association of British Insurers (ABI) said such claims were wrong and based on anecdotal evidence only.

But he agreed with the report's general thrust.

"We fully agree that all customers need to shop around," he said.

"70% of our customers already shop around with 44% switching provider, but this is a critical decision for our customers so we need to do all we can to improve this further.

"We are consulting on a compulsory code for our members to help the third of customers who don't shop around to make sure they take the right decision and get the best deal," Thoresen added.

From April 2011 it became no longer effectively compulsory for most people to buy an annuity with their pension pots by the age of 75.

Even so, for most people, buying one at retirement is still the most sensible and least risky option as it guarantees an income for life.

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Work programme on track: Grayling

3 February 2012 Last updated at 23:33 GMT Contractors are paid a fee when the job centre refers an unemployed person to them About 20% of unemployed people who have been on the government's main welfare-to-work scheme, the Work Programme, for at least six months have been found a job, the BBC has learnt.

The figures come from the trade body representing the main contractors delivering the programme.

The government says the figures show the programme is on target.

But several contractors have said they are struggling to employ the long-term jobless in the current climate.

"The early indications for those customers who started in June 2011 are broadly in line with expectations," said Kirstie McHugh, chief executive of the Employment Related Services Association (ERSA), which provided the figures.

"However, the economy is a concern so we are going to have to keep a close eye on things."

When the programme was launched in June 2011, the government said it hoped that 40% of people on it would get a job but speaking to the PM programme on BBC Radio 4, Employment Minister Chris Grayling said he was still pleased with the progress.

"The Work Programme is doing a good job and is on track. It is helping long-term unemployed people into work."

The overall figures provided by the ERSA may well hide regional variations and several contractors and sub-contractors spoken to by the BBC have expressed concerns about the situation in their own areas.

Other figures obtained by the BBC show that in some areas - one in central Scotland, one in south-west England - fewer than 10% of people on the work programme have been placed in a job.

Continue reading the main story

No matter how good the work programme is, there aren't jobs for people to go to”

End Quote Steve Houghton Leader of Barnsley Metropolitan Council In Liverpool, one of the main contractors, A4E, says it has managed to find work for 10% of people, while in Barnsley, the local council, which is one of the sub-contractors, says it is managing to place about 12% in a job.

"The problem we face is that the jobs simply aren't there," said Steve Houghton, leader of Barnsley Metropolitan Council, "so no matter how good the work programme is, there aren't jobs for people to go to."

Referral fees

Under the terms of the Work Programme, contractors are paid a fee, usually £400, when the job centre refers an unemployed person to them, typically someone who has been looking for work for a year.

Further, larger payment can then be made when a person has been in sustainable employment for up to two years. The harder the company has to work to find and keep someone in a job, the more money they get.

But Mr Houghton said the rules actually worked against the people the scheme was intended to help, the very hardest to employ.

"We are concerned that the providers, and we are doing this, are taking the low hanging fruit," said Mr Houghton.

"Even though the work programme gives more money for getting the really long-term unemployed into a job, the reality is that in order to help our cash flows and keep our organisation going, we have to take the easiest ones [to find work for] in the first instance."

Frustration

Thirty-eight year-old Martin Williams, from St Helens, has been on the work programme for five months.

Having been unemployed for eight years and attended previous back-to-work schemes with the same contractor, he is understandably frustrated.

"They haven't helped me at all. It dehumanises you, and you feel worse," said Mr Williams.

"It got to the stage where I thought I'd rather be hit by a bus than come in here which is not the right frame of mind to be in when you are looking for a job."

The challenges facing the Work Programme will be investigated by the Commons' Public Accounts Committee next week.

One witness at the hearing will be Professor Dan Finn of Portsmouth University, an expert in welfare-to-work programmes.

He says the scheme has had a difficult birth.

"It's been rapidly designed and implemented. [During that time] employment circumstances have deteriorated so inevitably it's had a rocky start," said Prof Finn.

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