Imports increase US trade deficit

10 February 2012 Last updated at 14:40 GMT Although exports increased the overall US trade gap grew wider The US trade deficit widened in December to its biggest gap since June.

Figures from the Commerce Department showed that the overall deficit rose by 3.7% to $48.8bn (£31bn), up from a $47.06bn figure for the month earlier.

Imports rose 1.3% to a record $227.56bn, boosted by demand for foreign cars and machinery.

US exports grew slightly, by 0.7%, helped by the weak dollar, with records set for petrol, services and advance technology goods.

The widening of the trade gap was bigger than had been expected.

Currency issues

For the whole of 2011, the US trade gap rose 11.6% to $558.0bn, the highest since 2008.

The economically important deficit with China for the year jumped to a record high $295.5bn.

The latest figures, and the exchange rate that China sets its yuan currency against the dollar, is likely to be discussed at a meeting next week between President Barack Obama and Chinese Vice President Xi Jinping.

Last year, the Senate, controlled by the Democrats, passed legislation to try to force China to raise the value of its currency, but the bill was thwarted by the Republican-controlled House of Representatives.

Bankers are arrested in tax probe

12 February 2012 Last updated at 14:15 GMT HMRC said the arrests were over the individuals' financial affairs and not related to their work Bankers, including four from the Royal Bank of Scotland, have been arrested in a tax fraud investigation.

The arrests included four current employees and one former employee from the Edinburgh-based bank as well as people from two other banks.

HM Revenue and Customs said the arrests concerned the financial affairs of the individuals, and were not related to their work for the bank.

They were arrested on Wednesday at their homes.

The arrests are the result of a three-year investigation by HMRC into people suspected of evading tax by using a film finance loophole.

An HMRC spokeswoman said: "As a result of an ongoing HMRC investigation into tax-related criminal offences, HMRC has arrested a number of people, some of whom work for UK banks.

"This investigation relates to the actions of the people arrested in relation to their own financial affairs, and is not connected to the business activities of the banks."

'Energy literacy' to be examined

10 February 2012 Last updated at 11:07 GMT The energy system in the UK is to undergo significant changes in the coming years The "energy literacy" of gas and electricity billpayers is to be tested during an inquiry by a committee of MPs to see if more education is needed from the industry.

The jargon used on bills and the barriers to people switching providers will be put under the spotlight by the Energy and Climate Change Committee.

Public perception of electricity and gas prices will also be examined.

Regulator Ofgem has suggested companies offer standard, simpler tariffs.

Jargon

The committee's inquiry will consider whether people want to actively participate in the energy market, by switching suppliers, and if there is anything stopping them doing so.

It also wants to find out whether people are aware of schemes such as smart meters and putting energy efficiency measures into homes.

The language of energy will also be studied. For example, whether people knew how much the cost changed according to usage - and how this was displayed on a bill.

Continue reading the main story kWh: Kilowatt hours - the standard measurement on an energy bill that shows your usageCalorific value: The quality of gas, showing the amount of energy created from burning the gasPrimary/secondary units: You are billed more for primary units, and move on to cheaper secondary units when these are used upmpan: The 21-digit unique electricity meter point administration numbermprn: Unique gas meter number, irrespective of your supplierKilowatt hours (kWh) is the standard measurement on an energy bill that shows the billpayers' usage.

The inquiry will ask whether more education is needed and, if so, who should deliver it.

'No-frills'

Ofgem believes that many customers are confused by the plethora of confusing tariffs on offer.

This leads to them staying put on expensive deals when they would benefit from a switch, if only they could tell which was the cheapest alternative.

So Ofgem has proposed that domestic energy customers are offered the choice of simpler tariffs.

Each firm would have one standard tariff for each of the three payment methods - cheque, direct debit and pre-payment meter - and per fuel. So there would be six standard tariffs per firm.

Suppliers would still be able to offer as many sophisticated tariffs as they like - including dual-fuel tariffs. Those would be at fixed prices, with the exception of tracker-style tariffs, and also for fixed terms.

Pensioners miss weather payments

9 February 2012 Last updated at 15:26 GMT The cold weather across much of the UK has triggered extra benefit payments Up to 1.6 million pensioners are failing to claim benefits they are entitled to - including financial help during the cold snap.

Nearly £3bn of Pension Credit - an income-related benefit for pensioners - is unclaimed each year, according to the Department for Work and Pensions.

Those who receive it are automatically entitled to a Cold Weather Payment of £25 in freezing weather.

These payments have been triggered in two-thirds of the country.

The benefit, to help pay heating bills during a cold snap, is paid when the weather is - or is forecast to be - at or below freezing for seven consecutive days.

Some 3.7 million people have benefited this winter, with many areas having the payment triggered in recent days.

"During this cold snap it is even more important that people claim," said Pensions Minister Steve Webb.

Pension Credit tops up an income to £137.35 a week for a single person, and to £209.79 for a couple.

Bank's system 'risks house sales'

10 February 2012 Last updated at 14:25 GMT The Law Society has called for HSBC to suspend the new mortgage system Hundreds of house sales are at risk under a new mortgage system being used by a high street bank, legal experts have warned.

The Law Society of Scotland has called on HSBC to suspend its new conveyancing panel system, which limits the firms that carry out its legal work.

The society said the paperwork involved was not fit for purpose and was based on English, rather than Scots, law.

HSBC has offered to work with the society to relieve its concerns.

The bank said it "strongly believes" its conveyancing documentation is fit for purpose and has been drafted for use in Scotland.

The Law Society's warning came after a move last month by the bank to set up a restricted conveyancing panel.

Under the new system, only some law firms in Scotland are allowed to carry out security work on behalf of HSBC, and customers who wish to use their own lawyer face a charge.

Previously, any law firm in Scotland could carry out work for both the purchaser and mortgage lender.

The Law Society warned that documentation issued by HSBC's solicitors was based on English conveyancing.

The society said it required solicitors for both the buyer and seller to grant undertakings which may be difficult, if not impossible, to honour.

The body also said the purchaser's solicitor is being asked to carry out a lot of additional work, much of which would be avoided if they were acting directly for the lender.

The Law Society said it had been inundated with calls from concerned buyers and their solicitors over the past fortnight.

Ross MacKay, convener of the society's property law committee, said: "We pointed out that this new system was wrong in principle and a month on it is becoming clear that it is also wrong in practice. It is failing homebuyers who have chosen an HSBC mortgage.

"There is a risk that house sales will fall through and buyers will be left homeless and sellers without payment.

"We are therefore calling on the bank to immediately suspend the new system until there has been a full review and consultation with us to ensure that the paperwork is legally correct and workable, and that the system does not penalise buyers and their agents."

Relieve concerns

HSBC said the move to the new system was driven by the need to reduce conveyancing fraud, with only the approved panel solicitors being allowed to carry out the banks' part of the legal work.

However, it said customers were still free to use another solicitor to carry out their part of the conveyancing.

It said that rather than facing an additional charge, the existing charges were just being spilt up.

A bank spokesman said: "HSBC strongly believes that its conveyancing documentation is fit for purpose and has been drafted for use in Scotland.

"However we are keen to relieve the Law Society of Scotland of its concerns and we have offered to work with them to agree documentation which both parties are comfortable with.

"We are continuing to complete mortgage transactions as normal, however if customers do have any questions we would encourage them to speak with their HSBC mortgage manager."