Plebgate: Mitchell's Scotland Yard Complaint

Ex-cabinet minister Andrew Mitchell has lodged a formal complaint against Scotland Yard over the apparent leaking of its report into the "Plebgate" affair.

The senior Tory MP has written to the Independent Police Complaints Commission (IPCC) accusing the Metropolitan Police of a continued campaign to "destroy" his career.

Mr Mitchell took the action after newspaper reports suggested a police file passed to the Crown Prosecution Service contained no evidence that officers lied about his behaviour.

He strongly denies calling officers "plebs" during an altercation over their refusal to allow him to ride his bike through the Downing Street gates last year.

And the politician - who quit as chief whip amid the storm over the incident - claims he is the victim of a conspiracy by officers to "toxify" the Tories and blacken his name.

In a letter to IPCC deputy chairman Deborah Glass, he wrote: "We are deeply dismayed that the Metropolitan Police appear to have leaked part of their Report prepared for the Crown Prosecution Service (CPS) to certain members of the Press and spun it to the advantage of the Police officers involved.

"This was an Enquiry into a dishonest and illicit attempt to blacken my name and destroy my career. It would appear that this police enquiry continues precisely that process."

Keith Vaz, Labour chairman of the Commons home affairs committee, said the latest development showed it was wrong for Scotland Yard to lead the inquiry into its own officers and called for the whole investigation to be taken over by the IPCC.

Scotland Yard is trying to find out how the Sun and Daily Telegraph obtained information about the "Plebgate" row and if it came from police.

It is also looking at a police officer's claim to have witnessed the altercation and allegations by Mr Mitchell that police had lied in a log of the event.

Three officers from the Diplomatic Protection Group have so far been arrested as part of the investigation. All three remain suspended.

Some 30 detectives have taken statements from all 800 officers in the DPG, which is tasked with protecting government officials.

Papers related to the case were passed to prosecutors on Thursday, but the CPS said it was not "a full file of evidence" and that is expected more.

"We now await the conclusion of the police investigation before considering charges," it said in what was seen as a rebuke to the force.

A number of newspapers subsequently reported sources as saying the file did not contain any evidence to back Mr Mitchell's claim of a conspiracy by officers.

Mr Vaz said the committee had argued from the start that Met Police Commissioner Sir Bernard Hogan Howe was wrong to allow Scotland Yard to conduct the investigation.

Britain's most senior police officer promised a "ruthless" investigation into the alleged conspiracy "no matter where the truth takes us".

It is being supervised by the IPCC and the commissioner invited the Greater Manchester force to provide an external review.

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Benefits Shake-Up 'To Cost Families Hundreds'

By Tadhg Enright, Sky Reporter

Changes to the welfare system will cost the average family £891 over the next year, according to research by Labour and the Institute for Fiscal Studies.

The Conservatives have responded by saying the biggest shake-up of the welfare state in history has already had an effect with a third of those claiming incapacity benefit giving it up to avoid a medical to prove their entitlement.

From Monday, millions of low income families will see an increase in their council tax bills.

The so-called bedroom tax will see extra charges levied on council house tenants with more bedrooms than they need.

And from next Saturday, the annual increase in tax credits and other working-age benefits will be cut to just 1%, well below the rate of inflation.

The personal income tax allowance for those aged under 65 will rise to £9,440 but the higher rate threshold will fall to £41,450.

Shadow chancellor Ed Balls says millions of families will lose out

The top rate of income tax will also fall from 50p to 45p which Labour claims will shave £100,000 off the annual tax bills of 13,000 people who earn more than £1m a year.

Shadow chancellor Ed Balls said: "These shocking figures show the huge hit millions of families are facing at the very same time as David Cameron and George Osborne are giving millionaires an average £100,000 tax cut.

"And while Ministers trumpet the small rise in the income tax personal allowance, they should admit that it is hugely outweighed by things like cuts to tax credits and child benefit, higher VAT, the bedroom tax and the granny tax.

"They are giving with one hand, but taking away much more with the other."

Mum-of-two Emma Kingsbury is one of 660,000 council house tenants who will have to pay the so-called "bedroom tax" because she only needs two of the three bedrooms in her home,

She told Sky News: "I've only ever needed two bedrooms and now, after placing us in this three bedroom when I didn't need or ask for it, they want us to pay for this room that we rarely use."

The bedroom tax will cost Emma and her boys £15 a week.

The 'bedroom tax' has prompted a number of protests

"The boys will have to stop some of their extra curricular activities, outings for Easter," she said.

"They haven't given anybody any time to try and downsize. I've had a month."

The Government insists it is vital to break the cycle of dependency on benefits and has claimed that welfare reforms have already succeeded in reducing spurious claims.

Out of 1.44 million medical assessments carried out on claimants of incapacity benefit, 837,000 were found to be fit enough to return to work.

A further 878,300 chose to give up their benefit instead of facing a medical to prove their entitlement.

Conservative party chairman Grant Shapps said: "Welfare makes up a third of this country's spending - so it's our job to make sure it's getting to the people who really need it.

"Our reforms are about freeing people from a system of dependency that's trapped them and their families for decades - and people are getting back into work as a result.

"These figures demonstrate how the welfare system was broken under Labour and why our reforms are so important."

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Lord Carey Attacks David Cameron On Religion

Former Archbishop of Canterbury Lord Carey has launched a scathing attack on Prime Minister David Cameron.

In an article for the Daily Mail, Lord Carey says many Christians doubt the PM's "sincerity" when he pledges to protect their religious freedoms and accuses ministers of "aiding and abetting" discrimination against believers.

He points to Government plans to legalise gay marriage as evidence of an "aggressive secularist and relativist approach" and argues that Mr Cameron has fed Christian "anxieties" more than "any other recent political leader".

Lord Carey also says a new poll suggesting that more than two-thirds of Christians feel they are now part of a "persecuted minority" shows the Government must do more to demonstrate its commitment to stand up for faith.

The ComRes poll commissioned by the Coalition for Marriage also found more than half of Christians who backed the Conservatives in 2010 say they will "definitely not" vote for the party in 2015.

Lord Carey expresses alarm about Labour MP Chris Bryant's campaign to turn the 700-year-old Parliamentary chapel of St Mary Undercroft into a multi-faith prayer room so that gay couples can get married there.

Lord Carey slammed Chris Bryant's campaign for gay marriages in Parliament

But he also directly calls into question the Prime Minister's actions, saying: "I like David Cameron and believe he is genuinely sincere in his desire to make Britain a generous nation where we care for one another and where people of faith may exercise their beliefs fully.

"But it was a bit rich to hear that the Prime Minister has told religious leaders religious leaders that they should 'stand up and oppose aggressive secularisation' when it seems that his Government is aiding and abetting this aggression every step of the way.

"At his pre-Easter Downing Street reception for faith leaders, he said that he supported Christians' right to practise their faith. Yet many Christians doubt his sincerity.

"According to a new ComRes poll more than two thirds of Christians feel that they are part of a 'persecuted minority'. Their fears may be exaggerated because few in the UK are actually persecuted, but the Prime Minister has done more than any other recent political leader to feed these anxieties.

"He seems to have forgotten in spite of his oft-repeated support for the right of Christians to wear the cross, that lawyers acting for the coalition argued only months ago in the Strasbourg court that those sacked for wearing a cross against their employer's wishes should simply get another job."

The new poll suggests continuing resentment over legalising same-sex unions, even though there is special protection for the Church of England in the law, and Lord Carey's successor Justin Welby has softened the Church's stance on the issue.

Two thirds of those polled said they believed allowing same sex unions was an attempt to make the Conservative Party look trendy.

Communities Secretary Eric Pickles has vowed to protect religion

The poll comes after a series of controversial cases between Christians and employers over their rights to express their faith in the workplace.

Recent cases include Adrian Smith, a Trafford housing manager who says he was demoted and had his pay docked 40% after questioning the Government's plans for same sex marriage and Reverend Brian Ross who was sacked as the Chaplain of Strathclyde Police, apparently because his support for traditional marriage did not fit with the force's equality and diversity policies.

In another case, graphic designer Jamie Haxby is suing a hotel after claiming he was turned down for a job because he is a Christian.

Communities Secretary Eric Pickles insists that unlike New Labour 'we do do God' and has agreed freedom of religion has been undermined.

He has vowed to change the law if necessary to stop people being taken to task for wearing a cross or a rosary, and says council should not try to ban prayers before meetings.

But the march of secularism means Britain will no longer be a Christian country within just 20 years, according to official research by the House of Commons library.

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North Korea Says 'We Are At War With South'

North Korea says it has entered a "state of war" with South Korea and will deal with "all matters" accordingly.

"As of now, inter-Korea relations enter a state of war and all matters between the two Koreas will be handled according to wartime protocol," the North said in a statement broadcast by the official Korean Central News Agency.

"The long-standing situation of the Korean peninsula being neither at peace nor at war is finally over."

The statement also warned that any military provocation near the North-South land or sea border would result "in a full-scale conflict and a nuclear war".

The two Koreas have always technically remained at war because the 1950-53 Korean War ended with an armistice rather than a peace treaty.

Earlier this month, the North said it was ripping up the armistice and other bilateral peace pacts signed with the South in protest against South Korea-US joint military exercises.

South Korea's defence ministry said in a statement: "This is not really a new threat - just part of a series of provocative threats."

It added that "no particular troop movement" had been observed along the border.

The US said it was taking the new threat "seriously" but said it was following a familiar pattern.

North Korea's leader Kim Jong-Un

"We've seen reports of a new and unconstructive statement from North Korea. We take these threats seriously and remain in close contact with our South Korean allies," said Caitlin Hayden, spokeswoman for the National Security Council.

Most analysts still believe this will remain a rhetorical rather than a physical battle, but the situation has now become so volatile that any slight miscalculation carries the potential for rapid escalation.

Sky's Asia Correspondent Mark Stone said: "It is more rhetoric by North Korea until they actually do something. Wars tend to begin with bangs not announcements on state news agencies, so this is Mr Kim pushing the rhetoric up another level.

"The problem is, he hasn't got any more levels to go to after this other than actual war - that is the big worry and the big unknown. Does his belligerence have a limit or not?

"The assumption, and hope, is that he will stop at the eleventh hour but what if he doesn't? That is why the Americans, the South Koreans, the Japanese and, more quietly, the Chinese too are all taking it very seriously."

Yesterday, both China and Russia asked for all sides to co-operate to prevent the situation worsening, with Russian Foreign Minister Sergei Lavrov voicing particular concern.

"We can simply see the situation getting out of control, it would spiral down into a vicious circle," Mr Lavrov told journalists.

His warning came after the North's leader Kim Jong-Un ordered missile units to prepare to strike US mainland and military bases, vowing to "settle accounts" after US stealth bombers flew over the South.

The US has used B-2 bombers as a 'deterrence' measure in the region

US Defence Secretary Chuck Hagel stressed that Washington would not be cowed by Pyongyang's threats and stood ready to respond to "any eventuality".

The standoff has its roots in the North's successful long-range rocket launch in December and the third nuclear test it carried out in February.

Both events drew UN sanctions that incensed Pyongyang, which then switched the focus of its anger to the annual joint South Korea-US military drills.

As tensions escalated, Washington has maintained a notably assertive stance, publicising its use of nuclear-capable B-52s and B-2 stealth bombers.

The long-distance deployment of both sets of aircraft out of bases in Guam and the US mainland were intended as a clear signal of US commitment to defending the South against any act of aggression.

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Congenital Heart Surgery Halted At Hospital

All children's congenital heart surgery has been suspended at Leeds General Infirmary with immedate effect.

The temporary suspension follows a number of claims, including some relating to patient outcomes, and concerns about surgery standards.

The decision was taken by Leeds Teaching Hospitals NHS Trust after discussions with the NHS Commissioning Board and the Care Quality Commission (CQC).

In light of the talks, Maggie Boyle, the chief executive of Leeds Teaching Hospitals NHS Trust, said the trust has agreed to carry out an internal review, independently validated and supported by external experts.

"This will look at all aspects of congenital cardiac surgery for children undertaken at the unit in Leeds.

"We have taken the decision to temporarily pause children's congenital cardiac surgery and associated interventions while this review is conducted, a process we would aim to complete in around three weeks."

Acute cardiac surgery will continue.

Sky News Correspondent Gerard Tubb described it as "a very serious turn of events".

"It will be enormously distressing news for families expecting to have surgery carried out there," he added.

Shortly after the announcement was made, one mother posted on Facebook: "My son is due for an operation on 18 April. I feel sick at the thought of it not happening."

Ms Boyle said: "We apologise to parents and families who will be affected during this time, and can assure them we always put the safety of our patients first.

"Families whose surgery may be affected during this time are being contacted directly by the trust."

NHS England said the suspension was for checks to be made to ensure the unit is operating safely.

Sir Bruce Keogh, the medical director of NHS England, said: "The trust has taken a highly responsible precautionary step.

"Some questions have been raised by the trust's own mortality data and by other information.

"It is important to understand that while this information raises questions, it does not give us answers.

"But it is absolutely right not to take any risks while these matters are being looked into. The priority must be the safety of children."

The CQC said it is "monitoring the situation extremely closely and will not hesitate to take regulatory action if we believe this is required".

The move comes only a day after a High Court judge quashed a decision to stop children's heart surgery at the hospital. Parents would have to travel to hospitals in Newcastle and Liverpool for the treatment instead.

The unit was earmarked for closure as part of an NHS plan to re-organise services across England into fewer, more specialised centres. It prompted a vigorous campaign to save the LGI services.

The plan was halted on Wednesday after it was ruled that the consultation process which led to the decision to close the unit was unfair and legally flawed. Its future now lies in the hands of the Health Secretary.

In the meantime, there have been a number of claims that surgeons at Leeds General Infirmary have been avoiding referring children to the heart unit at the Freeman Hospital in Newcastle - which would be spared if the original NHS re-organisation plan continues.

The allegations have been strenuously denied by the Leeds Trust.

Following the decision to suspend congenital heart surgery at LGI, Sharon Cheng, from Save Our Surgery - the group which is co-ordinating the fight to keep children's heart surgery in Leeds - said: "We're mystified. We don't know of anything that could justify this step."

The decision to sacrifice the unit in Leeds was taken in July by the Joint Committee of Primary Care Trusts (JCPCT) when it selected seven specialist centres for the future delivery of paediatric cardiac surgery in England.

It chose centres at Great Ormond Street and the Evelina Children's Hospital in London, as well as Newcastle's Freeman Hospital, Birmingham Children's Hospital, Alder Hey in Liverpool, the Royal Children's Hospital in Bristol and Southampton General.

The controversial decision, if it stands, means the closure of the unit at the LGI as well as Glenfield Hospital in Leicester and London's Royal Brompton.

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North Korea Rockets 'Ready To Hit US Bases'

North Korea's leader has told rocket units to be on standby for an attack on US bases, according to state media.

The country's KCNA news agency said Kim Jong-Un had signed off on the order to train sights on American bases in South Korea and the Pacific after a midnight meeting with top generals.

The move was followed by reports of increased activity at North Korea's mid to long-range missile sites, according to South Korea's Yonhap news agency.

It comes after two American stealth bombers flew over South Korea in a show of force to Pyongyang, following an escalation of rhetoric from the North's young leader.

The US uses B-2 bombers as a 'deterrence' measure in the region

The two nuclear-capable B-2 planes flew a 13,000-mile round trip from an air base in Missouri, dropping a dummy bomb on a target range in the South.

The planes were taking part in a joint South Korea-US military exercise that has inflamed tensions with Pyongyang, which earlier this month threatened to unleash an "all-out war" backed by nuclear weapons.

"This .... demonstrates the United States' ability to conduct long range, precision strikes quickly and at will," the US military said in a statement.

"The B-2 bomber is an important element of America's enduring and robust extended deterrence capability in the Asia-Pacific region."

KCNA reported that Mr Kim had "judged the time has come to settle accounts with the US imperialists in view of the prevailing situation".

The agency said: "He finally signed the plan on technical preparations of strategic rockets of the KPA, ordering them to be standby for fire so that they may strike any time the US mainland, its military bases in the operational theatres in the Pacific, including Hawaii and Guam, and those in South Korea."

The US has denied the exercise was provocative but said it was "committed to a pathway to peace" and "prepared to deal with any eventuality" in the region.

Defence Secretary Chuck Hagel and General Martin Dempsey, chairman of the Joint Chiefs of Staff, said the B-2 bombers were a message intended more for allies than Pyongyang.

"The North Koreans have to understand that what they're doing is very dangerous," Mr Hagel said.

"I don't think we're doing anything extraordinary or provocative or out of the ... orbit of what nations do to protect their own interests."

The US, he added, must make it clear to South Korea, Japan and other allies in the region that "these provocations by the North are taken by us very seriously, and we'll respond to that".

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Cyprus Banks In 'Race' Ahead Of Reopening

By Tom Parmenter, Sky News Correspondent

Banks in Cyprus are in a "race against time" to be ready to reopen their doors today.

For nearly a fortnight banks have been closed after Cyprus was plunged into its biggest crisis since the Turkish invasion of the island in 1974.

The terms of the EU bailout agreed in Brussels mean there has been a state of financial limbo and widespread confusion.

Cheques have not been banked, people have not received their wages and regular payments have not been processed.

Thousands of people are expected to descend on the banks when they finally reopen their doors. One employee at his desk at the doomed Laiki bank told Sky News colleagues were in a "race against time" to be ready.

Police and security staff will be deployed to maintain order at branches and are hopeful of preventing a mass run on the banks.

An out-of-order cashpoint in Nicosia. Most machines are said to be working.

Staff from G4S have been working 24/7 since this crisis began ensuring cash machines have been filled up night after night.

The giant global firm was the contractor that failed to meet their promises over security at the London Olympics prompting the British military to step in.

G4S's managing director in Cyprus, John Arghyrou, told Sky News: "I feel we have the resources, I feel extremely confident as a security company that we can undertake and meet the requirements of our customers."

Some 180 guards will be deployed to banks across Cyprus to work alongside police officers and other security firms.

Mr Arghyrou added: "It is not really guarding it is assistance services ... but close co-operation with the police is essential."

A spokesman for the Cypriot police told Sky News he was "unable to disclose" full details of their plans but said they do not expect to need officers at every branch.

Cypriots protesting against austerity measures

People will be limited in the amount of money they can withdraw. Early reports indicated there would be a 300 euro (£253) cap on withdrawals and a limit of 3,000 euros (£2,530) on the amount of cash individuals can take abroad.

The use of credit and debit cards abroad is reportedly going to be being restricted to 5,000 euros (£4,223) a month, while the cashing of cheques is set to be banned.

Hari Tsoukas a business analyst in Nicosia told Sky News: "In the short term it maintains our position as a very peculiar member of the eurozone - nowhere else has these kind of capital controls but on the other hand it is necessary.

"People are angry. Communications with customers has been non-existent.

"The crisis management has been appalling, the best thing would be to set up some kind of hotline so at least people can call to get information."

Most banks in Cyprus will reportedly reopen at midday on Thursday, which is 10am UK time. They are due to stay open until 6pm local time, 4pm in Britain.

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Parents Of Suicide Teen Call For Law Reform

By Becky Johnson, North of England Correspondent

The parents of a 17-year-old who were unaware he had been arrested for drink driving before he killed himself are calling for a change in the law.

Nick and Jane Lawton were not told their son, Joseph, had been held by police or that he had spent a night in a cell.

They say it is an anomaly in the law that 17-year-olds are treated as adults when arrested but as children if they are charged.

Joseph shot himself after he was arrested for drink driving

Being treated as adults means police do not have to tell parents of 17-year-olds they have been arrested or offer them the opportunity to have an adult present during interviews.

Joseph Lawton had just passed his driving test when he went to a party near his home in Disley, near Stockport.

He had taken the train but decided to drive back from the station. His parents thought he was staying the night with friends.

His father, Nick, told Sky News: "He made a bad decision and he chose to drive and he was stopped and breathalysed. He failed the breathalyser and he was arrested."

His parents said when he returned home he did not mention what had happened and he had told his friends he had got away with it.

Three nights later, when he was alone at home, he shot himself with a gun from the family farm. His father found him in the lounge. He was the couple's only child.

His mother, Jane, said: "The charge sheet was in front of him telling us that was why he'd done what he did; and that was the first thing that we knew."

Joseph had left notes for his parents, best friend and girlfriend. His father said: "When we read his letters eventually they confirmed it. He just thought that he'd closed the door to his future.

His parents believe he could be alive today if the law had been different

"But when you think that if we'd had a phone call from the police while he was in the police station - one phone call - I'd have been straight down there.

"I would have spoken to him - I would have told him, supported him, told him that it's not the end of everything - 'you're still going to university, you'll still get a job. 'Things might be a little bit more difficult but at the end of the day we'll be able to get through it'.

"But we weren't given that opportunity."

Joseph's mother added: "We firmly believe that if Joe had contacted us, if we'd have been able to speak to him, he'd still be alive today."

The Lawtons are being supported by the parents of Edward Thornber who killed himself aged 17 after he was summoned to court for possessing cannabis worth 50p.

Today the families will hand a 52,000-signature petition in to Downing Street. A judicial review into the issue is ongoing.

Lawyer Shauneene Lambe, who works for the charity Just For Kids Law, told Sky News: "As it stands, at the moment, 17-year-olds are treated as if they are adults when they go to the police station.

"If they are sent to court, if they were charged for example, they would go back to being treated like children in the court system.

"So there's an anomaly within the police station, that we believe should be changed."

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Energy Bill Hikes 'Cut By Efficiency Schemes'

A new report claims government policies helping to insulate homes and promoting the installation of more energy efficient boilers are reducing the rise in gas and electricity bills.

Savings generated from energy efficiency policies are already having an impact and will increase over the next decade, the report from the Department for Energy and Climate Change (DECC) has said.

Household dual fuel bills are estimated to be on average 5%, or £64, lower now than they would be without these policies, it adds.

By 2020, average household energy bills will have risen by 6% in real terms but will be 11% or £166 lower than without the policies.

Nearly half of the average household dual fuel energy bill, £598, is made up of fossil fuel prices, with the second largest cost attributed to networks costs or transport or distribution of energy.

The report showed 85% of the rise in household bills between 2010 and 2012 was from wholesale energy costs and network costs.

Household energy consumption has been on a downward trend since 2005 partly because of the energy efficiency measures.

The freezing weather has raised concerns about gas supplies

Energy and Climate Change Secretary Ed Davey said: "Global gas price hikes are squeezing households. They are beyond any Government's control and, by all serious predictions, are likely to continue rising.

"We are doing all we can to offset these global energy price rises, and while we have more to do, this new study shows our policies are putting a cushion between global prices and the bills we all pay."

Steve Radley, policy director at EEF, the manufacturers' organisation, said: "This is a  wake-up call. Policies are already adding 30% to business electricity prices, and this will rise to 50% by 2020 and 70% by 2030.

"Measures to shield the most energy-intensive industries from a portion of the costs will make a difference but, unless we get a grip on spiralling policy costs, steeply rising electricity prices for the rest of the sector risk making the UK an increasingly unattractive location for industrial investment and undermining efforts to rebalance the economy."

Caroline Flint, shadow energy and climate change secretary, said: "The Government's underhand attempt to mask the real impact of its policies on families' energy bills is shameful. At a time when hard-pressed families and pensioners are seeing their incomes squeezed, only this out-of-touch Government could expect people to fork out thousands of pounds on new TVs, fridge freezers and washing machines.

"Instead of cooking the books to trick people into thinking their energy bills will be lower, ministers should get behind Labour's plans to overhaul the energy market and deliver fair prices for the public."

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Dog Attack: Tributes Paid To Jade Anderson

Tributes have been paid to a 14-year-old girl who is thought to have been killed by a pack of "aggressive and out-of-control" dogs.

Jade Anderson's body was discovered with wounds consistent with a dog attack at a house shortly after 2pm on Tuesday, following reports she was unconscious.

It is thought the teenager was visiting the property in Chaucer Grove, Atherton, near Wigan, and was alone with the four dogs - two bull mastiffs and two Staffordshire bull terriers.

The animals were later shot by police marksmen and a fifth was contained.

A policeman stands guard outside the house in Atherton, near Wigan

A post-mortem examination was due to take place on Tuesday night. The dogs' remains will also be examined as part of the investigation, police said.

A Greater Manchester Police (GMP) spokesman said: "Officers attended and found the body of a 14-year-old girl.

"They were confronted by a number of dogs that were aggressive and out-of-control."

Superintendent Mark Kenny said: "First and foremost, our thoughts are with the family of the girl who has tragically lost her life. Specialist officers are offering them every support.

Two of the dogs were Staffordshire bull terriers similar to this one

"While our inquiries to find out what happened are ongoing, this girl's injuries are consistent with her having been attacked by dogs.

"I understand this is an extremely distressing incident for all concerned, including the community, and we will work hard to establish the full circumstances that led to this tragedy."

Friends paid tribute to the "quiet" and "timid" teenager, who is thought to have returned to the property from the shops with a meat pie when she was attacked.

Locals said Jade was visiting the property to see a friend, Kimberley Concannon, 16, who lives there with her twin Catrina and mother Beverley Concannon.

Youngsters who knew Jade said they had spoken to Kimberley's twin sister, Catrina, who was not at the property when the dog attack happened.

One 15-year-old said: "She goes to my school in the year below.

"She's dead shy, quite timid, if you didn't know her you wouldn't recognise her around and about. It's horrible what's happened.

"She picks her little sister up Sienna from school, every day and walks past my house.

"She (Jade) had a pie in her hand and has gone to bite it, she moved the pie and the dog's gone for her throat and then they have all gone for her."

Another friend said the dogs at the house were large and aggressive animals.

"Every time you walk past the house they would be barking and barking and going mad," she said.

"You would jump out of your skin."

Jade was a pupil at Fred Longworth High School in Tyldesley, which closed for the Easter break last Friday.

A message on the school's Twitter feed said: "This afternoon we sadly lost one of our students, Jade Anderson. Our thoughts are with her parents and family."

More than 4,500 people joined a Facebook group created to pay tribute to Jade, including the aunt of a four-year-old boy who was killed by a banned breed of dog.

John-Paul Massey died at his grandmother's house in Liverpool after suffering "massive injuries" inflicted by a pitbull.

Tricia Massey wrote on Jade's page: "Such a tragic thing to happen. I know what your poor family must be going through and how they are feeling, I lost my four-year-old nephew three years ago.

"He was killed by a dangerous dog in Liverpool. Something needs to be done about these aggressive animals.

"Sleep tight Jade, I'm sure my John-Paul will look after you."

Natasha Hunt posted: "RIP my beautiful baby girl! Don't know what I'm going do without you!

"Love you loads, you will never be forgotten, you will always be in my heart."

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Berezovsky: Death 'Consistent With Hanging'

What We Know About Berezovsky

Updated: 1:09pm UK, Monday 25 March 2013

The suspicious deaths of a number of Russian exiles who had fallen foul of the regime meant that rumours swirled almost instantly that Boris Berezovsky had been killed. But so far the police have been unable to find any evidence of foul play.

Here's what we do know about Boris Berezovsky:

:: Political Exile

Mr Berezovsky was a key figure in former president Boris Yeltsin's inner circle and was also close to current president Vladimir Putin during his early years in power.

He left Russia in 2000 after a falling out with Mr Putin and became a vocal critic of the Kremlin from London, where he sought political asylum.

But in recent weeks, he is said to have written to Mr Putin suggesting that he could return to Russia, which had frequently sought his extradition on a variety of charges.

On the eve of his death, Mr Berezovsky was quoted as teling a journalist from Forbes Russia: "There is nothing I would like more than to return to Russia. I did not realise Russia meant so much to me I could not live as an emigrant."

He apparently added that he now believed he should never have left Russia and said he no longer wanted to be involved in politics.

The oligarch is believed to have survived a number of assassination attempts, including a bomb attack on his car that decapitated a chauffeur.

However, a radiation scare at his home after his body was found turned out to be a false alarm and the bodyguard who discovered him was the only person at home at the time.

:: Financial Problems

It is thought the former billionaire was facing serious financial difficulties.

He had fought a number of expensive legal battles since 2011 and reports suggest that defeat in a High Court battle with Chelsea FC owner and former business associate Roman Abramovich alone cost him tens of millions of pounds.

After losing the case, Mr Berezovsky told the widow of murdered Russian dissident Alexander Litvinenko that he could no longer afford to pay her legal fees ahead of an inquest into her husband's death from radiation poisoning.

Mr Berezovsky also paid out Britain's largest divorce settlement, worth more than £100m, to ex-wife Galina Besharova last July.

Then in January, former partner Elena Gorbunova reportedly won a court order freezing £200m of assets following their split.

In recent days, The Daily Telegraph reported he would attempt to sell Red Lenin, an Andy Warhol screen print valued at between £30,000 and £50,000 by Christie's.

The artwork sold on Wednesday for £133,875 including the buyer's premium, according to the auction house's website.

Friends have been quoted as saying the oligarch was depressed by his financial troubles.

Aleksei Venediktov, the editor of Ekho Moskvy and a friend and colleague of Berezovsky, was quoted as saying: "After losing in court to Roman Abramovich he was in a serious depression. He was undergoing treatment."

:: Ill Health

Mr Venediktov is also quoted as saying Mr Berezovsky had been suffering heart problems.

"It was a heart attack," he was reported as saying late on Saturday. "For the last two weeks, he had had several."

Other reports have suggested he had been undergoing treatment in Israel.

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Snow: Fifth Day Without Power For Thousands

Costs Rise As Lambs Brought Indoors

Updated: 11:46pm UK, Monday 25 March 2013

By Frazer Maude, North of England Correspondent

The Dean family have been farming in the Yorkshire Dales village of Threshfield since 1236.

Toft House Farm will have seen some harsh winters through the centuries, but weather like this in late March won't have happened too often.

Angus Dean runs the farm with his brother, and during lambing season his day starts at around 5.30am. It doesn't end until past midnight.

With almost 1,000 sheep to care for, this is one of the toughest, but most rewarding, times of year.

The rewards are plain to see. He's gentle with his animals, and still can't hide the smile on his face as he delivers triplets to one sheep in its straw lined barn.

Ordinarily though, these lambs would enter the world in a field, not a barn. Their mother would be eating fresh grass, not expensive feed (called cake).

Drifting snow, biting winds, and sub-zero temperatures, mean the three new arrivals would struggle to last even a few hours outside.

"Even in the fields which aren't totally covered in snow aren't usable at the moment," explains Mr Dean.

"Because the sheep need the shelter provided by the dry stone walls. Only there isn't any shelter, because the walls are where the drifts have collected."

That means all but 70 of the flock have been brought indoors to lamb. Those that are still outside are ewes that are only going to have a single lamb, and so won't be giving birth for another couple of weeks.

If the weather doesn't break before then, they'll be brought inside too.

"Having the sheep inside might seem easier," said Mr Dean.

"But it can lead to confusion between the sheep over whose lambs are whose. So we have to move them around into different pens to keep them separated. And of course the feed costs are massively increased."

But even though his sheep are costing much more to feed than if they were eating grass (the cake costs around £250 per tonne), at least Toft House Farm is accessible at the moment to have the feed brought in.

Others aren't so lucky. Rachael Gillbanks from the NFU says: "I've spoken to some farmers in the Dales who are worried that their feed stocks are running dangerously low, and they can't get any more delivered because the farm roads aren't accessible for the delivery trucks. Several are almost running out of cake and hay."

The good news for Angus is that this has been a good year for the lambs. The quantity and quality of the offspring from his mixed flock of Texels, Mules, Swaledales and Leicester Blues has been high, and prices at the moment are reasonably good.

But with hundreds of sheep yet to give birth, and with space in the sheep sheds at a premium, for Angus, and his neighbours, the thaw can't come soon enough.

But like all Dalesfolk, Mr Dean and his brother are nothing if not resilient. And tough though it is at the moment, a farm that could bounce back after losing the entire flock to the devastation of foot and mouth, will surely survive this

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'No Job? No Benefits' Cameron To Tell Immigrants

David Cameron is set to announce tough new measures to curb immigrants' access to housing and benefits, in an attempt to tackle the "something for nothing" welfare culture.

The Prime Minister will use a keynote speech today to warn those coming to the country that Britain will no longer be taking a "soft touch" approach to immigration.

From next year, arrivals from the European Union will be stripped of jobseekers benefits after six months unless they can prove they have been actively looking for a job and stand a "genuine chance" of finding one.

Immigrant families will also be kept off council house waiting lists for up to five years.

Local authorities will have to introduce minimum residency times of between two and five years for joining waiting lists - or justify why they are not.

Mr Cameron is likely to cite figures in his speech showing that nearly one in 10 new social lettings go to foreign nationals. The proportion has risen from 6.5% in 2007-08 to 9% in 2011-12.

Immigrants will be kept off council housing waiting lists for five years

The Government is also pledging to beef up the "range and depth" of questions in the habitual residence test, which checks that people meet residence requirements for housing and income-related benefits.

Mr Cameron will also target illegal immigration - doubling the maximum fine for companies that employ illegal workers to £20,000.

He will also signal action against so-called "health tourism" that could mean non-EU nationals have to prove they hold insurance before getting care.

Mr Cameron is expected to say in his speech: "While I have always believed in the benefits of immigration I have also always believed that immigration has to be properly controlled.

"As I have long argued, under the last government this simply wasn't the case. Immigration was far too high and badly out of control. Net migration needs to come down radically from hundreds of thousands a year to just tens of thousands.

Immigrants must prove they have a 'genuine chance' of getting a job

"And as we bring net migration down so we must also make sure that Britain continues to benefit from it.

"That means ensuring that those who do come here are the brightest and the best the people we really need with the skills and entrepreneurial talent to create the British jobs and growth that will help us to win in the global race."

In his spring conference address over the weekend, UKIP leader Nigel Farage claimed his willingness to talk about immigration was one of the main reasons for the party's surge in popularity.

Concerns have also been rising over an influx from Bulgaria and Romania when movement restrictions are loosened at the end of this year.

The increasing political focus on the issue was emphasised last week when Deputy Prime Minister Nick Clegg ditched the Liberal Democrats' policy of offering an amnesty to illegal immigrants who have been in the country for more than 10 years.

Immigrants to the UK take part in a Citizenship Ceremony

He admitted the move would risk "undermining public confidence".

In his speech, Mr Cameron is also due to say: "Ending the something for nothing culture needs to apply to immigration as well as welfare.

"We're going to give migrants from the European Economic Area a very clear message. Just like British citizens, there is no absolute right to unemployment benefit."

Insisting the NHS must be able to reclaim money from people who are not eligible for treatment, Mr Cameron is to say: "We should be clear that what we have is a free National Health Service, not a free International Health Service."

It comes as the Home Affairs select committee founds the UK Border Agency's progress in dealing with asylum backlogs is "far too slow".

Committee chair Keith Vaz MP said: "No sooner is one backlog closed, than four more are discovered. At this rate it will take 24 years to clear the backlog which still stands at the size of the population of Iceland."

The number of UKBA backlog cases fell by 1% quarter-on-quarter, the committee said, despite 96,000 cases closed.

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Cyprus Bailout Deal Wins Eurozone Approval

Cyprus has secured a 10bn euros (£8.5bn) EU bailout saving the country from a banking system collapse and bankruptcy.

In return for the rescue funds, Cyprus must restructure its banking sector under an EU-IMF plan approved by eurozone ministers earlier today.

The country's second-largest bank, Popular Bank of Cyprus, known as Laiki, will effectively be shut down and split into a "good bank" and a "bad bank".

Deposits below 100,000 euros (£85,509) in Laiki will be safeguarded and transferred to the Bank of Cyprus, the so-called "good bank".

IMF's Christine Lagarde and the German finance minister at the Eurogroup

Deposits above 100,000 euros, which under EU law are not insured, will be frozen and will be used to resolve debt. It's not yet clear how severe the losses will be for these depositors.

The move will yield 4.2bn euros (£3.6bn) overall - the bulk of the 5.8bn euros (£4.9bn) Cyprus needed to raise as part of the bailout conditions.

The deal emerged hours before a deadline to avert a collapse of the banking system, which could have forced Cyprus to exit the euro.

It followed fraught negotiations between Cypriot President Nicos Anastasiades and the troika of creditors - the International Monetary Fund, European Commission and European Central Bank.

Banks have been closed this past week

"We've put an end to the uncertainty that has affected Cyprus and the euro area over the past week," said Jeroen Dijsselbloem, who chairs the meetings of the 17-nation eurozone's finance ministers.

"We believe that this will form a lasting, durable and fully financed solution," said Christine Lagarde, chief of the IMF.

After the eurozone's finance ministers' approval, several national parliaments such as Germany must also approve the bailout deal, which might take another few weeks. EU officials said they expect the whole programme to be approved by mid-April.

Cyprus' Finance Minister Michalis Sarris said: "It's not that we won a battle, but we really have avoided a disastrous exit from the eurozone. A long period of uncertainty and insecurity surrounding the Cyprus economy has ended."

Cyprus's outsized banking sector was crippled by exposure to crisis-hit Greece.

In a vote on Tuesday, the country's 56-seat parliament dismissed a levy on depositors as "bank robbery".

The country's finance minister Michael Sarris then spent three fruitless days in Moscow trying to win help from Russia, whose citizens have billions of euros at stake.

Cypriots were outraged by the original proposal and have been queuing at cash machines ever since bank doors were closed last weekend on the orders of the government.

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Weather: Man Dies In Snow Trying To Get Home

A young man died in a "very tragic incident" after trying to get home in the snow in Burnley after a night out with friends.

The man's body was discovered in deep snow by a farmer at 1.30pm but emergency services struggled to get to the area because of the weather conditions.

Chief Inspector Derry Crorken, of Burnley Police, said: "Early indications suggest that it appears to be a very tragic incident where a young man has been out with friends and has become caught up in the weather last night on his journey home.

"The snow and ice has been severe in the area with many roads not passable. I would urge people to take precautions and only go out if it is necessary and if you do go out then make sure friends and family know where you are and that you have suitable clothing on and your phone with you."

His death is the second tragedy in the recent spell of bad weather. On Friday police in Looe, Cornwall, found a body in a block of flats that had been flattened by a landslide thought to have been triggered by torrential rain.

There is apparently 18 inches of snow near Wrexham (Pic: Alison Brooks)

Heavy snowfall has brought disruption to many parts of the UK, with roads closed, flights delayed, rail services cancelled and sports events called off.

Power lines were brought down, leaving tens of thousands of homes in Northern Ireland without electricity, while 18,000 properties in Scotland and hundreds more in areas of northern England also had no power.

In some areas police reported snow drifts up to 20ft (6m) while the British Red Cross were called on to ferry medical staff, paramedics and even patients to hospital using 4x4s.

The snowy conditions extended south, hitting areas around London and Kent, where forecasters said there could be 2cm-5cm (1-2ins) of the white stuff on higher ground.

The Met Office issued a yellow warning for the public to be aware of adverse weather conditions as a slow-moving band of rain, sleet and snow made its way across many central and northern parts, and the south and east.

There may be 5-10cm (2-4ins) of snow at lower levels and further significant snow accumulations were likely on hills, with continued drifting and blizzard conditions in strong southeasterly winds. 

In North Wales the British Red Cross ferried hospital staff, paramedics and renal patients to hospitals using 4x4 vehicles.

Bay Search and Rescue in Cumbria were deployed to help people in the snow

David Hallows, service manager for emergency response for the Red Cross in North Wales, said: "I've never seen snow like it. It's a metre thick in places and it's not drifting.

"I just can't believe it. It's great to know that our 4x4 capability can be of such vital use to medical staff in getting them through these tough weather conditions to patients, many of whom are seriously ill."

Airports were forced to shut their runways, and road closures hit motorists. The AA has warned drivers that even short journeys may be difficult.

More snow is expected tonight but it set to slowly die out on Sunday and forecasters say most places will have a cold, dry day with cold easterly winds.

About 70 people stranded in their cars in Cumbria overnight were put up in a local high school. Police said that snow was drifting up to 20ft (6m) and they had had 1,500 calls asking for help.

A motorist drives past another car stuck in a snow drift near Belfast

In Northern Ireland, 6ft (1.8m) snow drifts left emergency crews struggling to get through but electricity was restored to 17,000 homes on Saturday.

However, about 18,000 customers were still cut off and teams were out again from first light to continue with network repairs, Northern Ireland Electricity said. They were using helicopters to try to identify the power lines affected.

In Scotland, ScottishPower said it was working hard to restore powers to all its affected homes.

Electricity North West was trying to restore power to parts of Cumbria, with 284 customers still without electricity, as engineers were unable to reach them due to road closures.

Leeds Bradford Airport said flights were not currently operating due to the adverse weather conditions. There was also disruption at East Midlands Airport.

Cutting through the snow in Denbighshire (Pic: David Cartwright)

Among the problems reported on the railways was disruption on First Transpennine Express services between Huddersfield and Manchester, and no Northern Rail services between Skipton and Carlisle.

The bad weather also hit the sporting programme, with racing at Doncaster and Newbury called off and some football league games in England and Scotland postponed.

Northern Ireland's World Cup qualifier against Russia fell foul of the weather for the second time in 24 hours, with hostile conditions rendering Windsor Park unplayable.

The Group F clash was initially due to take place on Friday night but heavy snow and plummeting temperatures in Belfast saw the fixture postponed after three inspections by Norwegian referee Tom Hagen and the FIFA delegation.

The South West, which was hit by heavy rain and floods on Friday, had a dry day. Bylate evening the Environment Agency had only 63 flood alerts in place, those mainly for the South East.

A snow plough ended up on its side in the bad weather (Pic: Shaun Cullis)

Sky weather presenter Isobel Lang said: "Southeast England, East Anglia, the Midlands, north Wales, northern England, Northern Ireland and much of Scotland can expect snow today.

"High ground will be worst affected with some heavy snow at times with drifting in the strong winds and also blizzards.

"Low levels could see 5-10cm (2-4ins) of snowfall today although amounts will probably be lower across London."

She added: "Southwest England, south Wales and southern Ireland looks largely dry and relatively mild with some brighter spells.

"A few showers may nudge into the extreme southwest later. Tonight will stay dry with a frost forming in places."

It is expected to be the coldest March since 1962 when the average temperature was 2.8C (37F).

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Berezovsky Death: Chemical Experts Called In

Chemical and radiation experts are assisting police in their investigation after exiled Russian businessman Boris Berezovsky was found dead in a bath at his home in the UK.

It is believed the former billionaire, who had fallen out with the Kremlin, took his own life but no reports have been confirmed.

Lord Bell, the advertising and PR executive, confirmed his death, adding: "His body was found by his bodyguard."

Thames Valley Police confirmed they had launched an investigation into the death of a 67-year-old man at a property in Ascot, Berkshire.

His death was "currently unexplained" and a "full inquiry under way", police said.

A police statement said: "Specially trained officers are currently at the scene, including Chemical, Biological, Radiological and Nuclear (CBRN) trained officers, who are carrying out a number of searches as a precaution.

Berezovsky arrives for his court room clash with Roman Abramovich

"The body of the man is still in the property at this time."

Mr Berezovsky's lawyer Alexander Dobrovinsky told Russian state television that he had been informed by contacts in London that Mr Berezovsky had killed himself.

He said: "Berezovsky has been in a terrible state as of late. He was in debt. He felt destroyed. He was forced to sell his paintings and other things."

Mr Berezovsky made his fortune in Russia in the 1990s when he bought up state assets which were being sold off cheaply.

Mr Berezovsky had lived in Great Britain from 2000 having fled from Russia after falling out with Russia's leader.

r Berezovsky in 1998 with Andrei Lugovoi, suspected of killing Litvinenko

He was also a friend of the murdered dissident Alexander Litvinenko, who died in London after consuming radioactive Polonium in 2006.

In 1997 Forbes magazine estimated Mr Berezovsky's wealth at US$3bn but in recent years his wealth had been considerably reduced.

It is thought he had done badly in the financial crisis. In 2009 his wealth was estimated at £450m but he is thought to have spent £100m on the £3.7bn lawsuit against Chelsea owner Roman Abramovich last year, which he lost.

James Nixey, head of Chatham House's Russia programme, said: "He is the most virulently anti-Kremlin, anti-Putin of the oligarchs.

"He was certainly willing to spend his money, what little he had left, in an attempt to use it to end the current regime in Russia."

Officers have cordoned off Mr Berezovsky's house in Ascot, Berkshire

He added: "He had bodyguards, there were attempts on his life that even the security service in the UK had warned him about.

"It's certainly not the first case of Russians and people from the former Soviet Union, more broadly, who have been involved in difficult, embarrassing disputes with the Kremlin, to have died in relatively mysterious circumstances, perhaps before you might expect their natural life to end."

However, speaking to Sky News, a friend of Mr Berezovsky said that she did not think his death to be suspicious.

Sasha Nerozina said: "There is nothing to be suspicious about, as far as I understand."

She said: "It is shocking, terrible news. It is not something you expect. He was full of life and love."

She said that Mr Berezovsky had been left "demoralised" by losing the high-profile legal battle with Mr Abramovich last year.

But she said: "Boris cannot be dead - it is almost incredible to put those words together. We expected him to outlive us all."

Mr Putin's spokesman Dmitry Peskov told Russian state TV that Mr Berezovsky had recently written to the President to ask for a pardon and to say that he wanted to return to Russia.

He said: "He asked Putin for forgiveness for his mistakes and asked him to obtain the opportunity to return to the motherland."

Lord Truscott, who has written a biography of Mr Putin, said: "Was it suicide or was it murder? He had a lot of contact with people in Russia. There could be a whole host of people who could want to see him dead.

"Last year he lost a case against Mr Abramovich and was getting very short of money. He could have been in a depressed state. Perhaps it was a final desperation."

A cordon remains around the property while police continue with their investigations.

Superintendent Stuart Greenfield said: "We are aware the cordon is causing disruption to local residents and we apologise for any inconvenience, but it is important we take all necessary measures to ensure a full and thorough investigation can be carried out.

"I would like to reassure residents that we are confident there is no risk to the wider community. The property is part of a large estate so a number of roads are closed off at the moment and will remain so for the time being."

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Weather: Body Found In Floods, Rain And Snow

A body has been recovered at a house in Looe, Cornwall, which was badly damaged in flooding following heavy rains last night, firefighters said.

The front wall of the three-storey building crumbled away after downpours caused mud and debris to crash into the back of the property.

More than a dozen residents were evacuated from the building earlier.

The body recovered from the site is still to be formally identified, but fire crews had been searching the wrecked building for Susan Norman, who is said to be in her 60s, for several hours. 

Buxton in the Peak District was said to be virtually cut off by the snow

There was widespread flooding across the South West after rain hit on Thursday night. It then moved further north falling as snow in central and northern England, Northern Ireland, Wales and Scotland.

Breakdown services reported there had been thousands of call-outs from motorists, while in Northern Ireland more than 40,00 homes remain without power, as well as 1,500 in Cumbria.

A complete blackout was reported for between 15 and 30 minutes across Belfast on Friday evening.

Schools, roads and airports have also been closed.

Sky's weather presenter Nazaneen Ghaffar warned the bad weather could continue to cause problems into the weekend.

"There'll be more snow tonight, from around the M4 up into central Scotland and across the north of Ireland, while southern counties will have yet more rain," she said.

Drifts of up to 40cm (15.7 inches) were reported in some areas of Belfast

"Saturday will see snow over central parts slowly fading, but there'll be a raw wind and it will stay near freezing away from the South West.

"The average temperature for the month so far, combining day and night, has been around 3C, well below the long term average of 6C. It's highly unlikely to be record breaking (the coldest March on record was in 1962, at 1.9C), but it could well be the coldest for over 25 years."

Up to eight inches (20.3cm) of snow is expected to hit the worst-affected parts of the North West, North Wales and southwest Scotland.

Higher areas could even see up to 16in (40.6cm), while bitterly cold gale-force winds create blizzard-like conditions and plunge temperatures down well below freezing.

Further floods were also expected in the South West with 12 warnings and 43 alerts in place.

Northern Ireland's World Cup qualifying match against Russia at Windsor Park in Belfast was postponed from Friday evening to Saturday despite ground staff working through the day to clear the pitch.

Northern Ireland's game against Russia at Windsor Park has been postponed

Drifts of up to 40cm (15.7 inches) were reported in some areas.

In Cumbria, police said a reception centre at a school to shelter motorists who had become stranded after snow had made several key roads impassable.

Non-essential staff at the Sellafield nuclear site were sent home early as local schools were closed and transport disrupted because of the bad weather.

Electricity North West said it was considering using helicopters to get engineers to some of the 1,500 properties without power in across the county.

The atrocious weather also caused trouble at sea, with an RAF rescue crew having to be called to pluck a seriously injured French fisherman from his boat in howling winds and lashing rain.

A motorcyclist waits by the road after the A66 was closed due to snow

In the West Midlands, nearly 230 schools shut their doors to pupils, with many reporting burst pipes and frozen heating systems.

Staffordshire was worst hit with 170 closing their doors, but there was also disruption in Walsall, Dudley and Wolverhampton.

Another 200 schools closed across North Wales and scores were shut across Yorkshire, Derbyshire, Nottinghamshire, Lancashire and Cumbria.

In Birmingham, melting snow caused gridlock after it flooded the St Chad's Queensway tunnel. Engineers spent all morning trying to pump the water back out of the tunnel.

Food supplies were being airlifted to the Isle of Man as the severe weather disrupted scheduled ferry services.

Co-operative Food, which has 10 stores across the island, commissioned a Hercules aircraft to fly from Manchester to Ronaldsway Airport with around 18 tonnes of food and drink onboard.

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Cyprus Bailout: MPs Stumble Towards Deal

Cyprus Bailout: Threat To Savings

Updated: 5:12am UK, Saturday 23 March 2013

By Ashish Joshi, Sky News Correspondent

Finally late into Friday night - into to an agreement on Plan B, meaning Cyprus has moved one giant step towards securing a Brussels bailout.

It includes a solidarity fund pooling together state assets and the granting of power to the Government to control bank capital.

The latter move is to prevent a run on the banks when their doors finally open on Tuesday.

There will also be a restructuring of the country's banks and a savings tax on Cypriot savers.

The details of the tax have still to be finalised, but the framework is in place.

It could mean savings over 100,000 euros held in Bank of Cyprus accounts being taxed up to 20%, according to one source close to the negotiations.

The same source said if that proposal is rejected there will be a plan to impose a tax of around 10% on all Cypriot bank accounts over 100,000 euros.

The threat of savers being hit hangs over the heads of people like Loizos Michael.

The 60-year-old tailor worked hard for 35 years, building up a good business.

He was looking forward to a wealthy retirement. Not anymore. Times are hard.

Speaking from his small tailor's shop in central Nicosia, Mr Michael said: "With the banks being closed, it is hard because I don't have a credit card and so cash flow is a problem.

"Even filling your car with petrol needs thinking about.

"Cypriots have always been workers by nature and nobody could have imagined that unemployment would be so high.

"This has hit us hard in the pockets."

Cyprus is weathering a storm - the likes of which this Mediterranean island has never faced in her young history.

Mr Michael said he knew things were getting bad, but expected solutions to be found to avoid ordinary people having to suffer.

"I expected something better. But now, it looks like the problem has been brewing for some time," he said.

"There used to be some people talking about the crisis, but now everyone's talking about it.

"I think things are harder now than just after the war. After the war of '74 people could still find work. Now, there is just no work so people have no money. What can we do?"

In the 1990s, Cyprus boasted a dynamic, booming economy, but it grew and unchecked.

An overbloated banking sector exposed to Greek debt has crippled the country's economy.

Now people like Loizos Michael must pay the price. He and the rest of Cyprus will soon find out exactly how much that is going to be.

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Weather: Snow And Rain Warning For Drivers

Severe weather warnings have been issued across much of the country as flooding blights communities and heavy snowfall is expected.

Shops and homes were flooded in Cornwall overnight, as the AA warns motorists even short journeys "can quickly turn bad".

There are 96 flood warnings and two amber warnings for snow in place across the country, with southwest England the worst affected.

Seventeen flood warnings, meaning flooding is expected, are in place, affecting parts of Devon and Dorset.

And 79 flood alerts, where flooding is possible, are in place across the South East and Midlands, but the South West is being the hardest hit.

There has already been major flooding in Cornwall.

Amber alerts have been issued for snow and rain

And the severe cold weather continues with the two amber warnings for snow affecting Northern Ireland and Wales, which parts of northwest England could expect to see up to 15cm of snowfall over the day.

Scotland also looks likely to see heavy snowfall today.

Police said they received a "significant" surge in call-outs on Thursday evening in the South West.

Sgt Dave Opara, based in Plymouth, said: "There has been a considerable amount of rainfall across the force area."

Cornwall opened its dedicated control centre to deal with the volume of calls about flooding. Fire crews had already been called out to 50 incidents before 10pm on Thursday.

Newlyn, in the southwest of the county, was reported to be the worst affected area.

Newlyn resident Adam Gibbard said the river through the town had burst its banks and swept into the main street.

"This is the second it has happened in three months and a lot of these properties are businesses who were just getting back on their feet," he told Sky News.

"It has been very heavy rain all day and the deepest areas are a couple of feet deep.

"There are a lot of people out with sandbags, there are a lot of fire crews, people pitching in and trying to stem it but I don't think they have much of a chance."

Environment Agency spokesperson Pete Fox said: "Heavy rain in southwest England and south Wales on Thursday and into Friday means there is a risk of localised surface water and river flooding in the south west, the southern counties and parts of south Wales.

The worst flooding was reported to be around Newlyn in Cornwall

"The public can sign up for flood warnings and check the latest information on the Environment Agency's website, or follow us on Twitter at @EnvAgency."

Sky News weather producer Joanna Robinson said: "March can be a month of extremes and that's certainly what we're seeing this year.

"The cold theme is set to continue, with disruptive snow across parts of the UK.

"Over the next 24 hours, central parts of the UK will be most at risk of significant snow, particularly Northern Ireland, southwest Scotland, northwest England, northeast Wales and the north Midlands.

"There will be drifting in the raw wind and blizzard conditions. Disruption is likely to transport and perhaps even power supplies."

Darron Burness, head of the AA's Special Operations Response Team, said: "It's going to be a real witch's brew of driving wind, rain and snow, which will inevitably cause disruption on the roads.

"Drivers should be well prepared as even short journeys can quickly turn bad.

"Drifting snow could repeat the scenes we saw in southern England last week when hundreds of drivers got stuck overnight - it only takes one or two vehicles struggling for grip for the situation to quickly escalate.

"Keep your speed down as visibility could be seriously reduced and there's a risk of localised flooding - just stay out of flood water.

"Also with temperatures set to remain low, any snow that settles will likely persist for several days, so be wary of icy patches.

"Wherever you're going, take plenty of warm layers, check the travel reports before heading out and stick to the main roads where possible."

The Local Government Association said council gritting and ploughing teams would be out in force to try to ensure main roads remained passable.

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Child Smokers: Thousands More Take Up Habit

The number of children who have taken up smoking has risen by 50,000 in just one year - the equivalent of 567 a day.

About 207,000 children aged 11 to 15 started to smoke in 2011, a sharp rise from 157,000 in 2010, Cancer Research UK said.

Almost one in three (27%) of under-16s have tried smoking at least once, a study by the charity found.

It urged the Government to commit to putting all cigarettes in plain standardised packs.

Sarah Woolnough, executive director of policy and information at Cancer Research UK, said: "With such a large number of youngsters starting to smoke every year, urgent action is needed to tackle the devastation caused by tobacco.

"Replacing slick, brightly-coloured packs that appeal to children with standard packs displaying prominent health warnings is a vital part of efforts to protect health.

"Reducing the appeal of cigarettes with plain, standardised packs will give millions of children one less reason to start smoking."

Last April, the Government launched a consultation on plans to introduce mandatory standardised packaging for tobacco products.

Health campaigners have welcomed the proposal, but opponents claimed it would lead to increased smuggling and job losses.

Information generated by the consultation, which closed in August, is still being analysed by health officials.

In December, Australia became the first country in the world to put all tobacco products in standardised packs.

Cigarette packets and other products are all sold in a standardised colour, with only the brand name and graphic warnings visible.

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North Korea Issues Fresh Threat To The US

By Mark Stone, Asia Correspondent

North Korea has threatened to attack American airbases on the Japanese island of Okinawa and the Pacific island of Guam.

A statement by Kim Yong Chul, the spokesman of the Supreme Command of the Korean People's Army warned of "military actions".

"The US should not forget that the Anderson Air Force Base on Guam where B-52 bombers take off and naval bases in Japan and Okinawa where nuclear-powered submarines are launched are within the striking range of the Democratic People's Republic of Korea (DPRK) precision strike means." the statement read.

"Now that the US started open nuclear blackmail and threat, the DPRK, too, will move to take corresponding military actions."

The words mark the latest escalation in a lengthy stand-off as North Korea defies calls from the rest of the world to halt its dual nuclear and ballistic missile programmes.

The American government has not yet responded to the threat.

Military guard posts of South Korea (front) and North Korea (far)

British diplomatic sources speaking to Sky News from Seoul have said the UK Government  "takes any threats seriously and there is some concern over the more harsh rhetoric coming from the DPRK".

However, the source insisted that there was no panic or alarm among diplomatic circles and that UK travel advice to South Korea remains unchanged.

The latest threat from North Korea is a direct response to a series of joint military exercises involving the US and South Korea.

On Tuesday, the US Air Force deployed its giant B-52 bombers from their base on Guam. The planes, which are capable of carrying and deploying nuclear bombs, flew sorties over the Korean peninsula as part of the military exercise.

The Pentagon in Washington confirmed the B-52 deployment. Spokesman George Little said the US wanted to underline its commitment and capacity to defend South Korea against an attack from the North.

However, the flights were condemned by Pyongyang as "an unpardonable provocation".

The Pentagon has confirmed the B-52 deployment

"The US is introducing a strategic nuclear strike means to the Korean peninsula at a time when its situation is inching close to the brink of war," the North Korean statement added.

The North Korean military does have rockets capable of reaching both Okinawa and Guam.

The surprisingly successful rocket launch in December followed a trajectory similar to that which any strike against Okinawa would take.

Okinawa is 600 miles due south of the Korean peninsula. Guam is further away, to the east of the Philippines.

While Pyongyang has proved it has the range capability, it is not clear whether or not their missiles are accurate enough to hit a specific target. And the country does not yet have the ability to carry out a nuclear strike at this range.

Earlier this month, the UN imposed the toughest sanctions yet on North Korea.

Kim Jong-Un reacted with anger, threatening to attack America, South Korea and Japan. The young and unpredictable leader toured military units calling for them to prepare for 'all out war'.

Computers are seen down at the main office of broadcaster YTN in Seoul

Meanwhile, Wednesday's unusually large cyberattack in South Korea, which brought down banks and broadcasters for one hour, has been traced to China.

Experts in Seoul claim the simultaneous attacks all bore the same IP address which was traced to the Chinese mainland.

Many of North Korea's internet and computing operations are tied to China. There is no suggestion that the Chinese government had any involvement.

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Julia Gillard: Oz PM Calls Leadership Ballot

Australian Prime Minister Julia Gillard has caved in to building pressure and called a leadership ballot.

"I have determined that there will be a ballot for the leadership. In the meantime, take your best shot," she told parliament.

She said the meeting would vote on the positions of prime minister and deputy prime minister.

The ballot is meant to end destabilisation from lawmakers who want former prime minister Kevin Rudd to return as leader to halt a slump in opinion polls.

However Mr Rudd has he will not stand against Ms Gillard.

Simon Crean, another former Labor leader, cranked up the pressure on Gillard earlier in the day, saying the "stalemate has to end" to prevent the party from imploding.

"Something needs to be done to break this deadlock, to resolve the issue once and for all," he said.

"I am asking her to call a spill (vote) of all leadership positions."

More follows...

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Al Qaeda Says It Beheads French Hostage

Al Qaeda says it has beheaded a French hostage in reprisal for France's military intervention in Mali, according to reports.

Its North African arm claimed responsibility, Mauritania's ANI news agency reported, citing a commander for the group.

A French foreign office spokesman said they were trying to verify the report of the killing of Philippe Verdon, adding that "we don't know at the moment" whether it is reliable.

In a telephone call to the news agency, the group spokesman said Mr Verdon had been beheaded on March 10 "in response to the French military intervention in the north of Mali", ANI reported.

The AQIM commander described Mr Verdon as a French spy and said France's President Francois Hollande "bore the responsibility for the remaining hostages".

Mr Verdon and another Frenchman, Serge Lazarevic, were kidnapped from their hotel room on November 24, 2011, in the northern Mali town of Hombori.

Their families denied that the two men were mercenaries or secret service agents.

It is not known whether Mokhtar Belmokhtar is dead or alive

The killing, if proved true, would be a worrying development for Mr Hollande.

Another 14 French hostages are detained in Western Africa, including seven believed to be held in the Sahel region by al Qaeda in the Islamic Maghreb (AQIM) and its affiliates.

in August last year a video showing Mr Verdon describing the "difficult living conditions" was released on a Mauritanian website.

The hostages' families have in recent weeks expressed growing fears for their loved ones in the light of France's military actions in Mali.

Earlier Tuesday, Mr Verdon's father Jean-Pierre, complained that the families were hearing nothing from the French authorities.

"We are in a total fog and it is impossible to live this way," he told RTL radio. "We have no information."

French soldiers on the ground in Timbuktu

Asked about France's refusal to pay ransoms to kidnappers, he replied that the families had no say in such "decisions of state".

Terror chief Mokhtar Belmokhtar, an AQIM leader and one of the world's most wanted men, had pledged revenge and vowed to attack western targets in Africa after France launched a campaign to help the country's embattled government drive Islamist militants out of northern Mali.

France now has more than 4,000 troops on the ground in Mali.

It launched a nine-week assault in January to dislodge the group and other Islamist militants who had hijacked a Tuareg rebellion in Sahel and seized the northern half of the country.

They were driven out from the main cities of Gao, Timbuktu and Kidal, after which some 1,600 French and Chadian troops began searching for Islamist rebels in their pocket hideouts in the mountainous region of northern Mali.

When asked by the ANI news agency whether Belmokhtar had been killed, the AQIM commander neither denied nor confirmed it.

There have been conflicting reports on whether he was killed in the French military campaign against the rebels.

Soldiers from Chad fighting Islamists in Mali had claimed to have killed Belmokhtar, who is said to have been the mastermind behind the recent Algerian hostage crisis at a remote gas facility in the Algerian desert.

The one-eyed gangster, nicknamed Mr Marlboro because of his involvement in cigarette smuggling, had also been dubbed "The Uncatchable" by French intelligence after being linked to a series of kidnappings of foreigners in north Africa over the past decade.

France has been carrying out DNA tests to determine whether militant leaders Belmokhtar and Abdelhamid Abou Zaid are among those killed in recent fighting in Mali.

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Budget: Osborne's Hopes Of Rescuing Economy

By Jon Craig, Chief Political Correspondent

George Osborne will today unveil a Budget with the twin aims of attempting to rescue both the British economy and the political fortunes of the Conservative Party.

The Chancellor will announce a raft of measures he hopes will not only kick-start economic growth but also reverse a Tory slump that began with his Budget a year ago.

Many Conservative MPs blame last year's so-called "Omni-shambles" Budget - containing a series of blunders that required embarrassing U-turns - for the collapse in support for the party over the past 12 months.

This year Mr Osborne has already promised help for pensioners, working couples and homebuyers.

But to avoid another onslaught from critics he will also need to provide help for motorists on fuel duty and businesses with incentives to invest.

On tax, the Chancellor is tipped to help the low paid by accelerating raising the income tax threshold to £10,000, a move championed by the Tories' LibDem Coalition partners.

And after the furore in the Conservative Party over gay marriage, the Chancellor may boost the married couples' allowance to cheer up disgruntled Tory backbenchers. A cut in corporation tax from 21p to 20p would also delight business leaders.

Mr Osborne is also expected to agree to unlock £4.8bn in child trust funds and allow parents to transfer their investments into more generous Junior ISAs. This move could leave some children up to £34,000 richer.

He will also announce that thousands of elderly people who lost up to half of their life savings when Equitable Life came close to collapse a decade ago will receive compensation.

But in a bleak message to MPs and voters on the state of the economy, there will be no U-turn on spending cuts or unfunded tax cuts and some grim economic forecasts.

Speaking at the weekend, the Chancellor rejected calls from LibDem Cabinet colleague Vince Cable and former Tory Defence Secretary Liam Fox to change course and abandon his so-called "Plan A".

Warning that economic recovery would be a slow process, he said: "There is no easy answer to Britain's problems.

"There is no miracle cure, because of course if there was a miracle cure it would have been deployed. It is just a lot of hard work dealing with Britain's debts, helping businesses create jobs and helping families who work hard and want to get on."

Yesterday it was revealed the Chancellor will unveil another £2.5bn of cuts to fund capital spending, although health, schools, overseas aid and HM Revenue and Customs will be shielded from the latest round of savings.

Osborne warned there would be no U-turn on spending cuts

Mr Osborne told the Cabinet other departments would have to find 1% savings on day-to-day budgets for each of 2013/14 and 2014/15.

But the move was attacked by Labour. Shadow Treasury Minister Chris Leslie MP said: "An increase in capital spending of just £2.5 billion compares to deep cuts of £12.8 billion to infrastructure investment in the last three years on the plans George Osborne inherited.

"If this is the only additional investment in infrastructure in the Budget it will be a huge disappointment. Business groups, the IMF and even Vince Cable have all said now is the right time to invest, at record low interest rates, in building homes, road and schools to create jobs now and strengthen our economy for the future.

"The test for the Budget is whether it delivers bold action to kickstart our flat-lining economy and significant tax cuts for middle and low income families, not a £3 billion tax cut for the very richest and more of the same failing policies."

But only weeks after Britain lost its AAA credit rating and slipped into a double dip recession with the risk of a triple dip, Mr Osborne is expected to have to deliver more gloomy news about the country's finances.

The Office for Budget Responsibility is expected to raise borrowing forecasts and lower those for growth.

Confirmation of Mr Osborne's unpopularity comes in a survey suggesting that more than four out of ten voters (44%) think he should be sacked as Chancellor.

Fewer than one in five (18%) of those questioned said Mr Osborne should keep his job, while 38% did not know.

Favourite to replace him is Mr Cable, favoured by 12%, followed by Foreign Secretary William Hague (5%) and Home Secretary Theresa May (3%).

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Pope Francis Inauguration To Draw Huge Crowds

Pope Francis is due to be inaugurated in Vatican City later in front of an expected one million people.

Heads of state, royalty and religious leaders will be among the guests at a two-hour ceremony in St Peter's Square, although the Queen and Prime Minister David Cameron will be absent.

Large crowds are also expected in Buenos Aires in the Pope's native Argentina, where big screens have been erected outside the city's main cathedral.

An estimated 300,000 people listened to Pope Francis's first Angelus prayer

The Vatican said the Mass would be a simplified version of events in 2005 that brought Pope Benedict XVI to the papacy.

The service will make several gestures towards Eastern Rite Catholics and Orthodox Christians, with the Gospel chanted in Greek not Latin and Eastern Rite prelates joining the Pope at an initial prayer at the tomb of St Peter under the Basilica's main altar.

Pope Francis will wear the Fisherman's Ring

The Vatican also released details of the coat of arms and official ring Pope Francis will receive during the Mass. Both are in keeping with his simple style.

The coat of arms is the same Jesuit-inspired one he used as Archbishop of Buenos Aires, while the ring was once offered to Pope Paul VI, who presided over the second half of the Second Vatican Council, the church meetings that modernised the church.

Argentina's President Cristina Kirchner will be among those present for the inauguration.

She met the Pope at the Vatican on Monday in what had the potential to be a tense discussion.

She and her predecessor and late husband, Nestor Kirchner, defied church teaching to push through a series of measures with popular backing in Argentina, including mandatory sex education in schools, free distribution of contraceptives in public hospitals and the right for transsexuals to change their official identities on demand.

In 2010, Argentina became the first Latin-American country to legalise same-sex marriages.

Pope Francis meets the Argentine president

But today those differences appear to have been brushed aside. President Kirchner gave the Pope a mate gourd and straw to hold the traditional Argentine tea that the new leader of the Catholic church loves. To her surprise, she got a kiss in return.

"Never in my life has a Pope kissed me!" she said afterwards.

Britain will be represented at the ceremony by HRH The Duke of Gloucester, as well as cabinet minister Kenneth Clarke and Baroness Warsi, the Minister for Faith and Communities.

A worker makes final preprations for the inauguration Mass in Vatican City

Zimbabwe's President Robert Mugabe also arrived in Rome for the inaugural Mass.

He is the subject of a travel ban by European nations in protest at his human rights record but it does not affect his trips to the Vatican through Italy.

Former Pope Benedict XVI will not attend the Mass and is likely to be watching on television at the papal retreat at Castel Gandolfo outside Rome.

He is due to greet Pope Francis in an unprecedented meeting at the retreat next Saturday.

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Cyprus Urged To Protect Savings Under 100k

Eurozone finance ministers have urged Cyprus to protect savers with less than 100,000 euros (£86,000) in their accounts from a proposed tax on bank deposits.

Under a bailout deal agreed with the EU, Cyprus planned to impose a levy of 6.7% on all savings below that level.

The scheme was then changed  to a 6.7% tax on all savings between 20,000 and 100,000 euros and 9.9% on all savings over 100,000 euros.

But the finance ministers, known as the Eurogroup, said they favoured a higher, 15.6% tax on richer savers in order to protect those with smaller deposits.

A statement from the group's president Jeroen Dijsselbloem said: "The Eurogroup continues to be of the view that small depositors should be treated differently from large depositors and reaffirms the importance of fully guaranteeing deposits below 100,000 euros."

Sparing more modest savers in favour of the higher rate on bigger deposits, would not impact on the overall amount of the bailout - 10bn euros (£8.6bn) - the group said.

Protesters gathered outside Cyprus' parliament in Nicosia

On Saturday the Eurogroup told debt-ridden Cyprus it would not give it a bailout unless it recouped some of the money it needed from savers.

The scheme had the potential to affect thousands of Britons who had either moved to Cyprus to live or had money saved in Cypriot accounts.

Russia, whose citizens are thought to have up to $30bn of their cash tied up in Cypriot accounts, was left furious by the proposal.

Cyprus may still ignore the advice from the Eurogroup and its parliament is expected to vote on a plan to save its economy on Tuesday.

Foreign Secretary William Hague said Britain had been "separated" from contributing towards the bailout, adding that 3,000 Britons in the country would not suffer in the proposed raid on bank savings.

Large numbers of Russian millionaires have stashed savings in Cypriot banks

It is believed however that many British Cypriots may have millions in accounts that are not protected by UK rules.

It was also unclear whether British troops serving in Cyprus who had set up large savings accounts would be able to escape the tax.

Cyprus had been due to vote on the levy on Sunday but it was first pushed back until Monday and then Tuesday.

Banks were closed in the country on Monday because of a bank holiday, which prevented people withdrawing their money but cash machines across the island were emptied.

Branches will stay shut for another two days - Tuesday and Wednesday - to prevent people removing all their cash while the authorities decide what to do.

The decision to target bank accounts stunned Cypriots, and police sealed off parliament as about 400 people staged a noisy protest outside, aggrieved that their small island of one million people should be singled out for such treatment.

It is the first time within the EU that it has been proposed to tax savers in a country to pay for the failings of their government.

The euro and stock markets fell on concern that developments in tiny Cyprus could reignite the financial crisis in the 17-nation eurozone.

A large amount of cash was withdrawn from Cypriot banks on Monday

If Cyprus does tax large savers heavily there are fears that money could flood out of the country as two thirds of deposits are from abroad.

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