RBS lost £5.2bn in 'chastening' year

28 February 2013 Last updated at 05:59 ET

Royal Bank of Scotland (RBS) has reported its fifth annual loss since it was rescued by the government in 2008.

The bank made a pre-tax loss of £5.17bn, hit by a series of charges. The year before, it lost £766m.

In a statement, the bank said it had been a "chastening" year, during which it sought to "put right past mistakes".

It has set aside money to cover PPI mis-selling, the mis-selling of interest rate swaps and its fine for attempting to fix Libor.

RBS is 81% owned by the government.

Much of the pre-tax loss came from a £4.6bn accounting charge for changes in the value of its own credit, which is a measure of how much it would cost to buy back its own liabilities.

The bank has taken a £5bn charge for loan impairments, which are write-offs to cover loans that are unlikely to be repaid.

Of that figure, £1.4bn came from its Ulster Bank division, pushing it into a loss of more than £1bn.

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Anthony Reuben Business reporter, BBC News

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The rise in the operating profit is certainly an encouraging sign for RBS, allowing Stephen Hester to talk about light at the end of the tunnel.

But the footnote in the results that lists the factors excluded by operating profits runs to seven lines, covering embarrassing things like compensation for mis-selling PPI and interest rate swaps, and fines for trying to fix Libor.

Mr Hester says he hopes to have the worst of the skeletons out of the closet by the end of the year, because it is this cleaning up process that will make the bank fit to sell.

'Another choppy year'

It reported an operating profit of £3.5bn, which excludes all of the special charges and is a considerable improvement on the previous year's performance.

In a conference call for journalists, chief executive Stephen Hester warned of "another choppy year ahead of us", but added that "the light at the end of the tunnel is coming much closer".

The fine for attempting to fix the inter-bank lending rate, Libor, knocked £381m off the bank's profits, although it said it would be recovering £302m of that by reducing 2012 bonuses and clawing back previous ones.

It has taken a charge of £700m in the year for money it expects to have to pay out to cover mis-selling interest rate swaps.

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It also took a £450m charge in the last three months of the year to cover mis-selling of Payment Protection Insurance, taking its total provision to £2.2bn.

RBS set aside £215m to pay bonuses to its investment bankers, which Mr Hester stressed was considerably lower than other comparable banks.

Mr Hester said that the list of charges was "a powerful critique" of where the banking industry had gone wrong in the past, but added that he was confident that the "biggest and most wrenching cases can be recognised by the end of the year".

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He also told the BBC that the bank would be in a "condition fit to sell" before the next election in 2015, but added: "There is no guarantee that the shares will be worth more than the government paid for them by that time."

Citizens sale

RBS has announced that it is going to begin the process of selling some of its US business, Citizens, on the stock exchange in about two years.

The announcement was welcomed by Chancellor George Osborne as a sign of a greater focus on the UK.

"I have been very clear that I want to see RBS as a British-based bank, focused on serving British businesses and consumers, with a smaller international investment bank to support that activity, rather than to rival it," he said.

"I welcome RBS's announcement today to accelerate that strategy."

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Treasury Minister Sajid Javid: "It's a choppy period in the financial markets but RBS are making the right decisions"

However, Chris Leslie, Labour's shadow financial secretary to the Treasury, cautioned against selling off RBS too soon.

"The timing of the return of RBS to the private sector is a decision for ministers, but it must be based on the best long-term interests of the taxpayer, not driven by George Osborne's short-term political timetables," he said.

"As Ed Balls said in 2011, any profits from the sale of government shares in the banks should be used to repay the national debt. That is the fiscally responsible thing to do."

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US 'to step up' help to Syria rebels

28 February 2013 Last updated at 06:13 ET

New US Secretary of State John Kerry is meeting Syrian opposition leaders in Rome, as the US prepares to increase its support for rebels fighting to topple President Bashar al-Assad.

He is attending a gathering of the Friends of Syria group of nations that support the Syrian opposition.

Mr Kerry is expected to announce increased "non-lethal" aid for the rebels but not weapons.

The UN estimates 70,000 people have died in the Syrian conflict since 2011.

Mr Kerry says the US wants to "accelerate the political transition" in Syria.

UK Foreign Secretary William Hague said the Friends of Syria were determined to "ramp up" assistance to the opposition.

"We are entering a new phase in the response of western and Arab nations to the crisis in Syria," he said.

Mr Hague said the UK would be sending equipment that would "save lives", the details of which would be announced next week.

Specific promises

The main opposition Syrian National Coalition (SNC) had threatened to boycott the meeting in Rome in frustration at the "the world's silence" at the violence.

But it agreed to attend after the US and UK indicated there would be specific promises of aid.

The increased US support is expected to involve food and medical supplies for rebel-controlled areas.

It could also include training, armoured vehicles and night-vision equipment, the New York Times reported, citing senior US officials.

The Obama administration has so far made it clear that it will not supply weapons to the Syrian rebels.

But arms are clearly what the Syrian opposition want and they are becoming ever more frustrated at the level of help they are getting, BBC diplomatic correspondent Jonathan Marcus says.

According to UN estimates, more that 70,000 people have been killed in Syria since the revolt against President Assad began nearly two years ago.

Opposition fighters have been constantly outgunned as President Assad's forces deploy tanks, aircraft and missiles against them.

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Aid to Syria opposition

• The US has provided $384m (£253m) in humanitarian aid to victims of the conflict in Syria
• It says it has also provided $54 million in "non-lethal" support to the political opposition, but not to rebel fighters
• Obama administration reported to be divided over whether to provide weapons, amid fears they could fall into the hands of militants who might later attack western interests
• EU nations also provide humanitarian and "non-lethal" aid, but an arms embargo is in force
• Syrian rebels thought to be getting covert weapons supplies from Saudi Arabia, Qatar and Turkey

The US Secretary of State, who succeeded Hillary Clinton, is on an 11-day tour of Europe and the Middle East.

Speaking in Paris on Wednesday, he said he wanted to hear from the Syrian opposition how best to end the bloodshed.

``We want their advice on how we can accelerate the prospects of a political solution because that is what we believe is the best path to peace, the best way to protect the interests of the Syrian people, the best way to end the killing,'' he said.

Russia 'crucial'

Meanwhile, French President Francois Hollande is in Moscow to discuss Syria with Russian President Vladimir Putin.

Russia is a key ally of President Assad, supplying him with weapons and blocking resolutions against him at the UN.

But it also been encouraging the Syrian government to hold direct talks with the opposition and has offered to host negotiations in Moscow.

Speaking before the meeting, President Hollande said Mr Putin had a crucial role to play in efforts to find a political solution to the conflict.

"We must finally start the process political dialogue that has not yet begun in Syria," Mr Hollande told Ekho Moskvy radio.

"A lot will depend on President Putin's stance."

Western powers say President Assad must step down as part of any political solution, as do the opposition, but Russia does not agree.

In contrast to the slow pace of diplomatic efforts to end the conflict, the fighting on the ground has continued to escalate, with grave humanitarian consequences.

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"Start Quote

Most of [the refugees] have lost everything"

End Quote Antonio Guterres UN High Commissioner for Refugees

'Tragedy'

On Wednesday UN High Commissioner for Refugees Antonio Guterres said more than 40,000 Syrians were fleeing the country each week, and the total number of registered refugees was approaching one million.

"The refugee numbers are staggering, but they cannot convey the full extent of the tragedy.

"Three-quarters of the refugees are women and children; many of them have lost family members; most of them have lost everything," he told the Security Council.

In some of the latest fighting, activists say government jets bombed rebels who were attacking a police academy outside Aleppo, Syria's second city.

"The rebels are still trying to storm the school, but they can't because the regime is carrying out airstrikes and bombarding rebel forces," said the UK-based Syrian Observatory for Human Rights, a UK-based activist group.

Along with the capital Damascus, Aleppo is a key battleground in the conflict and has seen some of the most intense fighting.

Opposition groups are particularly enraged by what they say is the government's use of Scud missiles to bombard rebel-held areas of the city, causing mass civilian casualties.

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UK net migration falls by a third

28 February 2013 Last updated at 06:35 ET

Net migration to the UK fell by a third in the year ending June 2012, compared with the previous 12 months, the latest immigration figures show.

The Office for National Statistics said 163,000 more people came to live in the UK for 12 months or more than left, compared with 247,000 the year before.

The ONS said this was driven by a drop in immigration, and study remained the most common reason to come to the UK.

Ministers want to cut net migration to the "tens of thousands" by 2015.

'Tough reforms'

The ONS said the figure of 515,000 people who immigrated to the UK in the year ending June 2012 was "significantly lower" than the 589,000 who came the previous year.

Its figures also showed:

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Immigration is pushed and pulled by a myriad of factors, from family life to global economics. But, ultimately, the politics of migration in the UK, whether you agree or not, comes down to the numbers.

And so ministers will point to these figures as evidence that their policies of tackling immigration abuse and some categories of students are biting. They're certainly closer to their net migration target than they had expected to be.

However, critics will ask whether part of the fall relates to whether the UK remains attractive.

The UK cannot turn away EU workers - but there's been a drop in the arrival of those industrious Eastern Europeans whom business bosses love. Statisticians think some of those people may now be heading to Germany instead.

Secondly, there's been a slight rise in emigration as more Britons and people from Commonwealth nations find jobs abroad.

• A fall in the number of migrants from New Commonwealth countries - 117,000 compared with 168,000 the previous year - and those from EU accession countries, including Poland - 62,000 compared with 86,000 the previous year
• Some 352,000 emigrants left the UK in the year ending June 2012, "similar" to the estimate of 342,000 in the year to June 2011
• Excluding visitor and transit visas, the number of visas issued fell 10% to 507,701 in the year ending December 2012, the lowest 12-monthly total recorded using comparable data available from 2005
• In the year to December 2012, there were 209,804 visas issued for the purpose of study (excluding student visitors), a fall of 20% compared with the previous 12 months
• Sponsored visa applications fell 22%, with a 3% increase for the university sector and falls of 62% for further education, 69% for English language schools and 14% for independent schools

Immigration minister Mark Harper said: "Our tough reforms are having an impact in all the right places - we have tightened the routes where abuse was rife and overall numbers are down as a result.

"We will continue to work hard to bring net migration down from the hundreds of thousands to the tens of thousands by the end of this Parliament and to create a selective immigration system that works in our national interest."

'Drastic cuts'

IPPR associate director Sarah Mulley said: "Because most students stay in the UK only for a short time, reduced immigration now will mean reduced emigration in the future, which by 2015 could partially reverse the falls we are seeing today.

"This also means that more drastic cuts to student numbers would be needed to make further progress towards the government's target.

"Given that the government still need to reduce net migration by 63,000 in order to meet their target, it is clear that this cannot be achieved in the medium term without radical changes that go far beyond the student visa regime."

Pressure group Migration Watch UK welcomed the overall drop in net migration. Its chairman Andrew Green said it was "evidence that the government's policies are starting to take effect".

"The universities have been wrong to claim that their sector was suffering from the restrictions designed to tackle bogus college students," he added.

The previous set of figures - to the end of March 2012 - showed net migration was 183,000.

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Death blaze accused pair 'rehearsed'

28 February 2013 Last updated at 06:47 ET

Three people accused of killing six children in a fire "rehearsed" the act six weeks before, a court heard.

Mick Philpott, 56, wife Mairead, 31 and Paul Mosley, 46, deny six counts of manslaughter.

Witness Melissa John told Nottingham Crown Court Mr Mosley told her the plan was for Mr and Mrs Philpott to run into the road and shout for help.

She said Mr Mosley planned to kick in the back door and rescue the children, at the house in Allenton, Derby.

Ms John told the court Mr Mosley had said Mrs Philpott was to take the blame for the fire.

Five children died in a fire at the house in Victory Road. A sixth child died three days later.

Jade Philpott, 10, John, nine, Jack, eight, Jesse, six, and Jayden, five, died in the fire. Their brother Duwayne, 13, died later in hospital.

The trial of Mr and Mrs Philpott, formerly of Victory Road, and 46-year-old Mr Mosley, of Cecil Street, Derby, continues.

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Sports Direct buys Republic chain

28 February 2013 Last updated at 07:10 ET

The Republic fashion chain has been bought by Sports Direct for an undisclosed sum.

Administrators for Republic said the sale would "safeguard over 2,100 jobs" and secure a future for the Republic brand.

The announcement comes two weeks after Leeds-based Republic went into administration following weak sales.

Sports Direct has purchased 116 Republic stores, the brand name and its head office.

It has also bought all Republic's stock.

Hunter Kelly, joint administrator from accountancy group Ernst & Young, said: "The brand Republic is well recognised and well respected by customers for offering quality, high-fashion goods and it is a testament to its strength that Sports Direct has made this investment to secure its future and High Street presence.

"We are extremely grateful for the support and loyalty showed by all employees and customers during what has been an uncertain time, and would like to thank everyone at Republic for their commitment and hard work during the administration process."

Republic was launched in 1986, originally under the Best Jeans name.

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Colder weather boosts British Gas

27 February 2013 Last updated at 04:18 ET

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Ian Peters from British Gas told the BBC the profit and price rises were "not connected"

British Gas has reported a rise in profits for 2012 after colder weather led to people using more gas.

Profits from its residential energy supply arm rose 11% from a year earlier to £606m. It said gas consumption had risen by 12%.

But there has been some criticism that the company increased its prices in November when profits were rising.

Centrica, which owns British Gas, reported an adjusted operating profit of £2.7bn for 2012, up 14% from 2011.

Centrica chief executive Sam Laidlaw told the BBC that the firm's profit margins per household "actually went down", adding that the company had made just under £50 profit per customer household.

"A 5% margin on the business is the sort of margin we require" to make investments in new sources of energy, he added.

Centrica's dividends to shareholders have risen 6% and the company is also returning £500m to them.

Profits were up 16% to £312m at British Gas' residential services unit, which covers services such as boiler repairs.

The company also announced that Phil Bentley was stepping down from his role as managing director of British Gas to pursue his ambition to be a chief executive.

Cheapest tariff

British Gas raised its gas and electricity prices by 6% in November, which Mr Laidlaw stressed was "lower than any of our competitors".

But Ann Robinson, director of consumer policy at the price comparison website Uswitch, said: "Seven out of 10 of us actually went without heating at some point during this winter and over a third of us have reported that we feel it's actually affected the quality of our life and also our health.

"So no, I don't think customers will be celebrating. I think they'll be wondering why on earth British Gas had to take this move in November when they are making such high profits."

All of the big six energy suppliers raised prices this winter, prompting Prime Minister David Cameron to step in and say he was going to force them to put customers on their cheapest tariffs.

Energy regulator Ofgem provided details of the plan last week, which will also limit the number of tariffs that suppliers can offer and force them to make bills clearer.

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Tesco vows to sell more British meat

27 February 2013 Last updated at 05:19 ET

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Tesco's Philip Clarke says the company is bringing meat production "closer to home"

The head of Tesco has pledged to bring meat production "closer to home" and work more closely with British farmers in response to the horsemeat scandal.

Philip Clarke said Tesco had also introduced a new testing process and that from July all chicken sold in its UK stores would be from British farms.

Mr Clarke and Environment Secretary Owen Paterson are to address the National Farmer Union's conference.

A NFU poll found 78% of people want more British food in supermarkets.

Speaking to the BBC, Mr Clarke said he could not guarantee "right now today" that all of Tesco's products contained exactly what was on the label, but "that is our objective", he added.

"I'm sure that we will be able to say that in the future, once the testing regime is completely in place."

He said on the 300 tests that they had completed " most of them are fine" but that "three is too many".

Farmers' anger at the horsemeat scandal will be reflected at the national conference, NFU leaders have said - which is being held in Birmingham.

Many farmers believe the crisis over mis-labelled food has damaged consumer confidence in the supply chain.

NFU president Peter Kendall said: "Farmers have been furious about what has happened."

Gate to plate

"Farmers have spent many years working to ensure the British supply chain is fully traceable from farm to pack, and have upheld strong principles which are embodied in assurance schemes like Red Tractor.

"For me this is fundamental for consumer confidence."

But there is also a growing sense that this may be a moment of opportunity for British farmers.

They believe that tight regulations, including those introduced in response to the BSE crisis, mean their part of the food industry now sets the standard for others to follow.

Farmers have long called for the food supply chain, which can involve many traders and processors between farm gate and consumer plate, to be overhauled and simplified.

BBC rural affairs correspondent Jeremy Cooke said they hoped the horsemeat scandal could mean the rest of the industry - and the government - was ready to listen.

'Signal change'

Meanwhile, a poll for the NFU suggested that more than three-quarters of people wanted supermarkets to stock more food from British farms.

Also, some 43% of the 1,000 people surveyed said they were more likely to buy food traceable from UK farms in the wake of the horsemeat scandal.

Mr Kendall said: "Our research also demonstrates the strong demand for British-farmed products, and so retailers, processors and food service companies have a responsibility to ensure there is clear country of origin labelling on the products that consumers purchase."

Mr Clarke said his supermarket would work more closely with British farmers in response to the horsemeat scandal.

"The testing regime is intended to ensure that if it is not on the label it is not in the packet, if it is beef, it is beef, and nothing else.

"And that is the most comprehensive testing regime I have ever seen, and it's happening right now.

"The second thing is we're going to bring meat production a bit closer to home. We do buy some, particularly for our frozen products, out of Europe, and as we can we'll bring it closer to home.

"And the third thing is we're going to have more partnerships, more collaboration with farmers."

He added: "I hope that it doesn't mean price increases, but I can't stand here today and tell you that it won't.

"I hope it doesn't, I'll work to make sure it doesn't."

Chief executive of Sainsbury's, Justin King, said Tesco's announcement "highlighted how important a detailed knowledge of and involvement in your supply chain is".

He said his supermarket was committed to doubling the amount of British food it sold by 2020.

The director of the International Meat Trade Association, Liz Murphy, said passing off horsemeat as beef was criminal behaviour that had to be stamped out, as imported meat should be of equal standard to that produced in the UK.

"The public health and animal health conditions have to be the same," she said.

"So when we supply meat from outside the EU, that has to comply with the same conditions that our farmers do and our manufacturers and factories do in the UK."

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'Several dead' in Swiss shooting

27 February 2013 Last updated at 06:52 ET

Several people have been killed and seriously injured during a shooting at a factory near the Swiss city of Lucerne, police say.

The incident happened at the Kronospan wood processing plant in the town of Menznau.

The Luzerner Zeitung newspaper said three people were dead, including the gunman, and seven seriously injured - but this was not confirmed.

The paper said shooting started in the canteen at around 09:00 (08:00 GMT).

"The workers were eating a snack in the cafeteria during the morning, and there was a massacre," said a man quoted by the Swiss news website 20minutes, who had phoned the factory to check on the welfare of his father.

An emergency telephone line had been set up for families of the factory's employees.

Emergency services, including three rescue helicopters, were on the scene, Swiss media reported.

Switzerland has one of the highest rates of gun ownership in the world, but relatively little gun crime.

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Pope recalls joy and 'choppy waters'

27 February 2013 Last updated at 07:01 ET

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Pope Benedict XVI: "Thank you from the bottom of my heart, I'm really moved"

Pope Benedict XVI has admitted he faced "choppy waters" during his eight years at the helm of the Roman Catholic Church, but says he was guided by God and felt his presence every day.

The Pope, 85, will retire on Thursday - the first pope to abdicate since Gregory XII in 1415.

Thousands of pilgrims gathered in St Peter's Square in the Vatican for Pope Benedict's final general audience.

His successor will be chosen in a conclave to take place in March.

Pope Benedict told the crowd his papacy had been "a heavy burden" but he accepted it because he was sure that God would guide him.

At times he "felt like St Peter with his apostles on the Lake of Galilee", he said, making reference to the Biblical story when the disciples were battling against heavy waves and Jesus Christ appeared to them.

The Church has been beset by scandals over sexual abuse by priests and leaked confidential documents revealing corruption and infighting in the Vatican.

'Serenity of spirit'

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At the scene

This was a farewell, but without a funeral. The sight of a living Pope here in St Peter's Square taking his leave of the faithful reinforces the sense of the Catholic Church at an unprecedented moment in its extraordinary history.

No other pope has ever asked over a billion Catholics throughout the world to pray for him "and for the new Pope", as Benedict XVI did here in Vatican City.

Was this the message of a man moving with the times? A Pope accepting with serenity that the Church at a time of crisis needs a younger, fitter man?

Certainly Pope Benedict looked and sounded frail - worn out, even - as he delivered his opening prayer, flanked by the Swiss Guards who will be withdrawn from his side on Thursday evening at the moment he relinquishes the papacy.

But his decision to quit leaves behind a Papal in-tray piled high with challenges over sex abuse and financial scandals his supporters insist he has done so much to confront while conceding there is far more still to be done.

The Pope thanked his flock for respecting his decision to retire and said he was standing down for the good of the Church.

"I took this step [resignation] in full awareness of its gravity and novelty but with profound serenity of spirit," he said in his address.

As a results of his surprise announcement, the Church has now amended its laws to bring forward the election of a successor.

A conclave beginning in mid-March would have left little time to have a new pope installed for one of the most important periods in the Catholic calendar, Holy Week, leading up to Easter, which begins on 24 March.

The BBC's Alan Johnston in Rome says that on Thursday the Pope will travel by helicopter to his summer residence at Castel Gandolfo, about 15 miles (24km) south-east of Rome. He will cease to be Pope at 20:00 local time.

After Benedict XVI steps down, he will become known as "pope emeritus".

He will retain the honorific "His Holiness" after his abdication and will continue to be known by his papal title of Benedict XVI, rather than reverting to Joseph Ratzinger.

He will wear his distinctive white cassock without any cape or trimmings, but will surrender his gold ring of office and his personal seal will be destroyed.

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Nuns and monks were among thousands running into the square to take their place in history

He will also give up wearing his red shoes.

"On the one hand I felt that since the decision that he would leave office and resign became public, Pope Benedict is relieved," said the head of the German bishops' conference, Archbishop Robert Zollitsch.

"But he also now feels the sympathy of the people for him, and therefore he will have a sense of melancholy and nostalgia, a bit of sadness."

Farewell

The title "emeritus" is used when a person of status, such as a professor or bishop, hands over their position, so their former rank can be retained in their title.

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Timeline to Thursday's resignation

• Thursday 1000 to 1115 GMT: Cardinals gather in the Vatican to bid farewell to Pope Benedict
• About 1515 GMT: Benedict is driven to a helipad within the Vatican
• About 1600 GMT: Papal helicopter flies to Castel Gandolfo near Rome
• About 1700 GMT: Pope appears at a window overlooking the public square in Castel Gandolfo to bless a crowd
• About 1900 GMT: Benedict ceases to be pope; Swiss guards at the entrance to Castel Gandolfo leave their posts

The Pope is to spend his final hours at his Vatican residence saying farewell to the cardinals who have been his closest aides during his eight-year pontificate, says the BBC's David Willey at the Vatican.

His personal archive of documents will be packed up and, at 20:00 (19:00 GMT) on Thursday, the Swiss Guard on duty at his Castel Gandolfo residence will be dismissed, to be replaced by Vatican police.

This will mark the formal end of his papacy and the beginning of the period of transition to his successor, due to be chosen next month.

From 4 March, the College of Cardinals will meet in general congregations to discuss the problems facing the Church and set a date for the start of the secret election, or conclave, to elect Pope Benedict's successor.

That successor will be chosen by 115 cardinal-electors (those younger than 80 years old) through ballots held in the Vatican's Sistine Chapel.

A two-thirds-plus-one vote majority is required. Sixty-seven of the electors were appointed by Benedict XVI, and the remainder by his predecessor John Paul II.

About half the cardinal-electors (60) are European - 21 of them Italian - and many have worked for the administrative body of the Church, the Curia, in Rome.

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Clegg: Rennard claims in background

27 February 2013 Last updated at 07:04 ET

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Nick Clegg faced questions about what he knew and when on his weekly phone-in radio show on LBC

Nick Clegg has admitted that concerns over Lord Rennard 's behaviour were "in the background" when he resigned as Lib Dem chief executive in 2009.

Police have spoken to party officials about allegations of inappropriate behaviour towards women by the peer.

Mr Clegg told LBC Radio that he had wanted a change when Lord Rennard quit but the "immediate reason" for his going was "ill health".

Friends of Lord Rennard told the BBC he quit after specific health warnings.

According to the BBC's chief political correspondent Norman Smith, Lord Rennard - who denies the allegations - was told that he might only have 12 months to live if he didn't radically change his lifestyle and that this was why he stood down.

'General concerns'

Mr Clegg, who became leader in 2007, after the alleged incidents took place, said of Lord Rennard's departure in May 2009: "Of course, these things were in the background but his ill health was the immediate reason why he stood down."

He also said: "Like any new leader of any organisation or political party, I wanted to make sure that the organisation reflected my priorities, my values.

"I felt it was time for a change at the top of the professional party."

Mr Clegg said his then chief-of-staff Danny Alexander had "challenged" and "confronted" Lord Rennard in 2008 over "general concerns" about his behaviour, and had told the peer that "this is not acceptable".

He added: "We were told at the time that the women didn't want to take the matter forward in relation to complaints."

Mr Clegg said he had not known of specific allegations until Channel 4 News broke the story last week.

An email sent to a senior aide by the Daily Telegraph shortly before the 2010 election setting out detailed allegations had not been "passed on to me".

'Abandoned'

Mr Clegg also insisted that a face-to-face conversation with then MP Sandra Gidley soon after he became leader had been "of a general nature".

One alleged victim, Susan - who wants to keep her surname private to avoid media intrusion - said on Tuesday that she had spoken to at least nine other women affected by incidents going back as far as 2001.

She added: "He [Mr Clegg] didn't know how to deal with it and then didn't deal with it well."

Mr Clegg told LBC on his weekly phone-in: "It distresses me immensely that women I know - they are clearly good people whom I respect - feel abandoned."

He added that the Lib Dems had shown "serious failure in the way the organisation was run", but said he had "revamped the party very considerably".

Mr Clegg said he believed in treating everyone "with respect and dignity", adding: "That clearly did not happen here, to put it mildly. There were some serious mistakes and the women were not listened to and let down."

The Metropolitan Police said it was working with party officials to establish whether any criminal activity had taken place.

After meeting the officials on Tuesday, officers appealed to "anyone with information" to come forward.

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Italy deadlock after protest vote

26 February 2013 Last updated at 05:19 ET

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The BBC's Katya Adler says many people are lost for words over the result

Italy's parliamentary elections have ended in stalemate and the possibility of a hung parliament.

With all domestic votes counted, Pier Luigi Bersani's centre-left bloc won the lower house vote but has failed to secure a majority in the Senate.

News of the results led to a sharp fall on Italian financial markets.

Mr Berlusconi conceded the lower house vote but control of both houses is needed to govern. A protest movement led by comedian Beppe Grillo won 25%.

Meanwhile a bloc led by current Prime Minister Mario Monti came a poor fourth, with about 10%.

The outcome of the election, which comes amid a deep recession and tough austerity measures, was so close that the margin of victory given in interior ministry figures was less than 1% in both houses of parliament.

"It is clear to everyone that a very delicate situation is emerging for the country," said centre-left leader Pier Luigi Bersani as the last of the votes were being counted.

Continue reading the main story

The horse-trading will now begin. Pier Luigi Bersani has enough votes to dominate the lower house. That is not the case in the Senate. Even if he were to join forces with the former Prime Minister Mario Monti he would not be able to command a majority there.

He may try to operate a minority government but that will clearly be unstable. There may be an attempt to form a wider coalition to govern the country at a time of economic crisis but it is unlikely to survive the summer.

One unanswered question is whether Beppe Grillo will be open to a deal. Would his movement support, say, a centre-left coalition in exchange for widespread reforms of the political system? We don't know. Buoyed up by success he has only promised to clear out the political class.

Sooner rather than later the country will hold another election.

Mr Berlusconi conceded to his opponents in the lower house. He said that everyone should now reflect on what to do next, but fresh elections should be avoided. He would not do a deal with Mr Monti's centrist bloc, he added, saying that the prime minister's poor showing was down to popular discontent with his austerity measures.

With returns from all polling stations processed, the interior ministry figures gave Mr Bersani's centre-left bloc 29.54% of the vote for the lower house (Chamber of Deputies), barely ahead of the 29.18% polled by Mr Berlusconi's bloc.

But the winning bloc is guaranteed 340 seats, giving it an automatic majority.

Votes cast outside Italy are still to be collected.

Mr Bersani also won the national vote for the Senate, but was unable to secure the 158 seats required for a majority.

As bonus seats are distributed in the upper house according to regional votes, Silvio Berlusconi's centre-right bloc was expected to emerge with a higher number of seats.

Continue reading the main story

Chamber of Deputies (lower house):

• Pier Luigi Bersani's centre-left Democratic Party-led bloc: 29.54% of the vote (will have 340 seats as the winning bloc)
• Silvio Berlusconi's centre-right People of Freedom Party-led bloc: 29.18% (124 seats)
• Beppe Grillo's anti-austerity Five Star Movement: 25.55% (108 seats)
• Mario Monti's Civic Choice movement: 10.56% (45 seats)

The Senate (upper house):

• Neither of the two biggest parties and their allies thought to be close to the 158 seats needed to have a working majority
• Latest figures show the Democratic Party bloc winning about 113 seats (31.63% of the vote)
• The People of Freedom Party bloc to win 116 seats (30.72% of the vote)
• Five Star Movement to win 54 seats (23.79%)
• Civic Choice 18 seats (9.13%)

Source: Interior ministry

'Jump to nowhere'

The results produced a mixed reaction in the rest of Europe.

German Foreign Minister Guido Westerwelle urged Italy to continue its reforms, and called for a government to be formed "as quickly as possible".

But his Spanish counterpart there was "extreme concern" about the financial consequences.

"This is a jump to nowhere that does not bode well either for Italy or for Europe," Garcia-Margallo said, quoted by Reuters news agency.

Markets fell as the outcome of the election became clear.

Italy's FTSE MIB index fell 4.7%, while London's FTSE 100 shed 1.5% and share markets in Frankfurt and Paris also fell more than 2%.

In New York, the Dow Jones Industrial Average fell 1.55% and Asian markets lost between 0.7% and 2.2%.

The yield on Italian government bonds rose sharply, implying markets are more wary of lending to Italy.

Mr Berlusconi, 76, left office in November 2011, facing claims of economic mismanagement as the eurozone struggled to contain Italy's debt crisis.

Italians have had more than a year of technocratic government under Mario Monti. But his attempts to reduce spending caused widespread public resentment and his decision to head a centrist list in the parliamentary elections attracted little more than 10% of the vote.

"Some supposed we'd get a slightly better result but I am very satisfied, we are very satisfied," he said.

In a surge in support, Beppe Grillo's anti-austerity Five Star Movement attracted 25.54% of the vote, making it the most popular single party in the lower chamber.

Correspondents say this was an extraordinary success for the Genoese comic, whose tours around the country throughout the election campaign - hurling insults against a discredited political class - resulted in his party performing well in both chambers.

"We've started a war of generations," Mr Grillo said in an audio statement on his website which taunted the leaders of the mainstream parties.

"They are all losers, they've been there for 25 to 30 years and they've led this country to catastrophe."

As the extent of his success became clear on Monday night, Mr Grillo's supporters in his home town of Genoa celebrated early into Tuesday morning.

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Resignation 'saddens' ex-archbishop

26 February 2013 Last updated at 06:22 ET

A former archbishop of Westminster says he is "saddened" by the resignation of Britain's most senior Roman Catholic cleric, Cardinal Keith O'Brien.

Cardinal Cormac Murphy-O'Connor said Cardinal O'Brien's decision to step down was "up to his own conscience".

Cardinal O'Brien has been accused of inappropriate behaviour towards priests in the 1980s - allegations he contests.

The Archbishop of St Andrews and Edinburgh will no longer take part in the election of the new Pope.

At a news conference on Tuesday, Cardinal Murphy-O'Connor was asked whether his fellow cardinal had been right to stand down.

"It was up to his own conscience that he stepped down. He wasn't asked to, he decided to do that," he said.

"I think he thought it would be a distraction for him to be in there (at the election of a new pope) and I think that is the main reason."

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Rape victims asked to withdraw cases

26 February 2013 Last updated at 06:28 ET

Victims of rape were "encouraged" by police to retract allegations to boost detection rates, a report has said.

The Independent Police Complaints Commission (IPCC) said a south London sex crime unit had its own "standard operating procedure" to cut the number of rapes officially recorded as crimes.

The IPCC said the Southwark Sapphire squad's approach of "failing to believe victims" was "wholly inappropriate".

A Metropolitan Police spokesman said substantial changes had been made.

The IPCC has carried out four previous inquiries into Southwark Sapphire command and it is the police watchdog's ninth investigation into the Met's response to victims of sexual violence.

'Enormously frustrating'

But home affairs correspondent Danny Shaw said three Metropolitan officers who had been facing possible dismissal over a previous bungled investigation into the serial sex offender Kirk Reid, were still with the force.

Two of them, a superintendent and a detective inspector, have been promoted.

IPCC Deputy Chair Deborah Glass said it was "enormously frustrating".

A detective sergeant is facing disciplinary proceedings for alleged gross misconduct in connection with the allegations.

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Police to meet Lib Dems over Rennard

26 February 2013 Last updated at 06:54 ET

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Nick Clegg: "I cannot - and my party will not - provide a running commentary on every shred of speculation"

Liberal Democrat officials are to meet Metropolitan Police officers to discuss allegations made against the party's former chief executive Lord Rennard.

The Met said it was working with the party to establish whether any criminal activity had taken place.

A number of women have accused the peer of sexually inappropriate behaviour. Lord Rennard denies the allegations.

The Lib Dems are carrying out their own investigations. Lord Rennard has told of his "shock" at the allegations.

Nick Clegg said people needed to allow the police, and the two inquiries set up by the Lib Dems, to do their job, rather than "act as self-appointed detectives trying to piece together events".

"In the meantime, I cannot and my party will not, provide a running commentary on every shred of speculation about events that happened many years ago."

Election shadow

The question of how to handle the claims against Lord Rennard will be considered not only by the party but by the Specialist Investigations Command of the Metropolitan Police.

The meeting between the Met and Lib Dem officials on Tuesday comes after Lib Dem officials approached the force.

The Labour MP John Mann says he has also written to police asking them to investigate.

He said the Liberal Democrats had been trying to "politically manage" the issue rather than conducting a "proper investigation" into the allegations.

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Ex-Lib Dem activist Alison Smith who reported inappropriate behaviour by Lord Rennard in 2007, spoke to Newsnight

BBC political correspondent Ross Hawkins said Lord Rennard disputed allegations that were first broadcast last week and have cast a long shadow over the party's by-election campaign in Eastleigh.

The Lib Dems are preparing to defend the Hampshire seat on Thursday, following the resignation of Chris Huhne.

Alison Smith, one of those who has made allegations about his conduct, told the BBC's Newsnight that there was an "intolerable" culture within the party.

"It is going beyond a pat on the knee a lot of the time and even if it was just a pat on the knee who gets to decide what's an acceptable advance and what's not an acceptable advance? The power dynamics in these situations are quite scary," she said.

The Lib Dem investigations will consider claims about how allegations made among Lib Dems were handled in the past and what action should be taken in the future.

The party's deputy leader Simon Hughes said the police announcement was "compatible with what we want to do which is to make sure that nobody thinks that we're trying to hide anything.

"We're not, we're an open and transparent party."

Key strategist

The Lib Dems are conducting two inquiries - one into the specific complaints against Lord Rennard, which will be chaired by Alistair Webster QC, a criminal lawyer and former head of the Lib Dem Lawyers Association.

The other is into how the allegations were handled in the past, which will be independently chaired.

Two women told Channel 4 last Thursday that Lord Rennard had abused his position by inappropriately touching and propositioning them.

One of the women said she had spoken to two senior party figures about her claims but said no action had been taken.

Allegations from more women were broadcast on Friday. The incidents are alleged to have taken place between 2003 and 2007.

Lord Rennard, who was also a key strategist and adviser to a succession of party leaders, said he was "deeply shocked" about the allegations and said they were a "total distortion" of his character.

The peer said he knew of no complaints against him in his 27 years working for the party but he has temporarily stood aside from the Lib Dem group in the Lords to avoid "embarrassment" to the party.

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Two Britons killed in balloon crash

26 February 2013 Last updated at 07:11 ET

Two Britons are dead and two others are in hospital after a hot air balloon crashed near the Egyptian city of Luxor, travel group Thomas Cook says.

Reports suggest 18 people were killed, with French, Hong Kong and Japanese nationals also among the dead.

The balloon was at 1,000 ft (300m) up when it exploded, caught fire and plunged on to agricultural fields west of Luxor, officials said.

Thomas Cook said the accident was a "terrible tragedy".

The four Britons had been on holiday with the tour operator and were among more than 20 people in the balloon when it crashed to the ground in flames.

'People jumping'

Thomas Cook said it was working closely with the Foreign Office and the authorities in Egypt. It has about 150 customers in the Luxor area at present.

The Foreign Office said its staff in Luxor were in "close contact with the Egyptian authorities and are providing consular assistance".

Thomas Cook has set up an emergency phone line for concerned relatives on 0800 107 5638.

Continue reading the main story

• Site of ancient city of Thebes
• Temples of Karnak and Luxor in city itself
• Royal tombs in Valley of the Kings and Queens lie across River Nile
• Dawn hot air balloon rides popular way to see sites
• Luxor has seen a drop in visitor numbers since the 2011 uprising

"We can confirm that two of our guests are in local hospitals, but tragically two of our guests have died in the hot air balloon incident in Luxor, Egypt this morning," the company said.

Thomas Cook UK and Europe chief executive Peter Fankhauser added: "The thoughts of everyone in Thomas Cook are with our guests, their family and friends.

"We have a very experienced team in resort with the two guests in the local hospital, and we're providing our full support to the family and friends of the deceased at this difficult time."

The crash happened on one of the many dawn hot air balloon flights that give tourists a view of Luxor's tourist attractions, such as Karnak temple and the royal tombs in the Valley of the Kings.

Thomas Cook said it had temporarily suspended sales of hot air balloon rides in Egypt.

The balloon's operating company, Sky Cruise, confirmed that a gas cylinder had exploded on board the balloon, bringing it down.

Holidaymaker Cherry Tohamy was in another balloon that was landing when she heard an explosion and saw flames from a balloon above.

She told the BBC: "Our pilot told us that the balloon had hit a high pressure electrical cable and a cylinder on board exploded. People were jumping out of the balloon from about the height of a seven-storey building."

She added that ambulances had arrived at the scene within 15 minutes.

'Too unstable'

Hot air balloon crashes have happened in Luxor before. Two British women were among 16 injured when their balloon came down after hitting a communications tower in April 2009.

Balloons were grounded for six months after that crash while safety measures were tightened and pilots were re-trained by Egypt's Civil Aviation Authority.

Linda Lea, 67, a retired policewoman from Stoke-on-Trent, who had four months of hospital treatment after the 2009 crash that left her with 26 broken bones, said the latest incident brought back painful memories.

"It's the opportunity. You've got to see the whole spectrum and the whole vista of the Valley of the Kings," she told the BBC as she digested news of another crash.

"If you're interested in Egyptian history it's a unique opportunity to do that."

The balloon Mrs Lea flew in hit a mobile phone mast, ripping the balloon and causing an explosion that brought it crashing down. Fire also brought down the balloon in Tuesday's Luxor crash.

"These balloons are just too unstable. There is not enough training of staff. There were about 22 or 23 in my balloon when it crashed and maybe there was too many then and too many in today's accident," she said.

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Day-Lewis makes Oscars history

25 February 2013 Last updated at 02:02 ET

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Watch some of the key moments of the ceremony

Daniel Day-Lewis has made Oscars history by becoming the first person to win the best actor prize three times.

The British-born star, who had been the runaway favourite, was rewarded for his role in Steven Spielberg's Lincoln.

"I really don't know how any of this happened. I do know I've received much more than my fair share of good fortune in my life," he said.

Ben Affleck's Iran-set rescue thriller Argo beat Lincoln to the top prize for best picture.

In a live broadcast from the White House, First Lady Michelle Obama joined Jack Nicholson to help present the best picture prize at the end of the night.

Continue reading the main story

"Start Quote

I do know I've received much more than my fair share of good fortune in my life"

End Quote Daniel Day-Lewis

Argo, directed by and starring Affleck, is the first best picture winner not to have also been nominated for best director since 1989's Driving Miss Daisy.

Oscars host Seth MacFarlane joked at the start of the ceremony: "Argo's story is so top-secret that its director remains unknown to the Academy."

Accepting his award alongside fellow producers George Clooney and Grant Heslov, Affleck paid tribute to the "genius" Steven Spielberg, who lost out in the same category.

Referring to his previous Oscar success with 1997's Good Will Hunting, he said: "I never thought I would be back here and I am because of so many of you who are here tonight.

"It doesn't matter how you get knocked down in life, all that matters is that you get up."

Daniel Day-Lewis, who holds UK-Irish citizenship, previously won best actor for My Left Foot (in 1990) and There Will Be Blood (2008) and has a reputation for immersing himself in his roles.

This year's victory puts Day-Lewis ahead of Hollywood legends Jack Nicholson, Marlon Brando, Dustin Hoffman and Tom Hanks - who all have two best actor wins to their names.

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Anne Hathaway on winning her Oscar

Jennifer Lawrence won best actress for her role as a troubled young widow in Silver Linings Playbook.

The 22-year-old, who stumbled over her dress on her way to the stage, joked: "You guys are just standing up because you feel bad that I fell over and that's embarrassing."

Continue reading the main story

OSCARS - Main winners

Life Of Pi - Four awards, including best director for Ang Lee

Argo - Three awards, including best film

Les Miserables - Three awards, including best supporting actress for Anne Hathaway

Django Unchained, Lincoln, Skyfall - Two awards apiece

Surveying the audience in Hollywood's Dolby Theatre, she added: "This is nuts." It was the first Oscar win for Lawrence, who was previously nominated for best actress in 2011 for her performance in Winter's Bone.

Anne Hathaway won best supporting actress for her role as tragic factory worker Fantine in movie musical Les Miserables.

With her cropped hair and gaunt face, Hathaway's teary version of I Dreamed a Dream had made her an Oscar favourite. "It came true," the actress said when she collected her statuette.

Hathaway's Oscar was her first after previously nominated in 2008 for Rachel Getting Married.

She said: "Here's hoping that someday in the not too distant future, the misfortunes of Fantine will only be found in stories and not in real life."

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Adele: "Thank you so much, this is amazing."

British singer Adele won the Oscar for best original song for her Bond theme Skyfall, which she also performed during the show.

She struggled through tears to thank the Bond producers and her co-writer Paul Epworth, who collected the award alongside her.

Ang Lee won his second Oscar for directing Life of Pi, the adaption of Yann Martel's fantasy novel about a boy stranded in a lifeboat with a Bengal tiger. The film won four Oscars in total, more than any other film.

The Taiwanese-born director, who won previously for Brokeback Mountain in 2006, exclaimed: "Thank you, movie god!"

Life of Pi also picked up Oscars for cinematography, original score and visual effects.

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Watch the stars arrive at the 2013 Academy Awards

Christoph Waltz won his second Oscar for best supporting actor in a Quentin Tarantino film, this time for playing a German bounty hunter in the slave revenge story Django Unchained.

Picking up the award, Waltz offered thanks to his character Dr King Schultz and to "his creator and the creator of his awe-inspiring world, Quentin Tarantino".

The Austrian actor won his first Oscar as a Nazi colonel in Tarantino's Inglourious Basterds in 2010.

It was the first time since 2006 that the Oscars for best picture, director and four acting categories all went to different films.

That year saw Crash named best picture, Philip Seymour Hoffman as best actor, Reese Witherspoon as best actress, George Clooney the best supporting actor and Rachel Weisz as best supporting actress - as well as Lee's win for Brokeback Mountain.

Tarantino won the original screenplay prize for Django Unchained, adding to the Oscar he won for writing Pulp Fiction in 1994. "I have to cast the right people to make those characters come alive and boy this time did I do it," he said.

The best adapted screenplay Oscar went to Chris Terrio for Argo, while Pixar's Scottish adventure Brave won best animated feature.

The award for costume design went to Briton Jacqueline Durran for Anna Karenina, who described the win as "completely overwhelming" and paid tribute to her children, who were "fast asleep in England".

The make-up and hairstyling award went to fellow Brits Lisa Westcott and Julie Dartnell for Les Miserables. Tom Hooper's musical also picked up the Oscar for sound mixing.

Unusually, there was a tie in the sound editing category - the Oscar was shared by Zero Dark Thirty and Skyfall.

Searching for Sugar Man, which tells the story of musician Rodriguez who disappeared from public view in the early 1970s but developed a cult following in South Africa, won the Oscar for best documentary.

Continue reading the main story

"Start Quote

I honestly cannot believe I'm here - It's an honour that everyone else said 'no'"

End Quote Seth MacFarlane on hosting the Oscars

Producer Simon Chinn said: "Rodriguez isn't here tonight because he didn't want to take any of the credit himself."

Austrian drama Amour won the Oscar for best foreign language film. The French-language film, directed by Michael Haneke, portrays the indignities of an elderly Parisian couple - Anne and Georges - as they cope with Anne's wish to die after a stroke.

The ceremony was hosted for the first time by Seth MacFarlane, who created the animated comedy Family Guy and directed the movie Ted.

"I honestly cannot believe I'm here," he quipped at the start of the show. "It's an honour that everyone else said 'no'."

The show also included a tribute to the James Bond franchise, followed by an appearance by Dame Shirley Bassey, who sang her theme song to the 1960s Bond classic Goldfinger.

A salute to movie musicals saw Chicago Oscar-winner Catherine Zeta-Jones and Dreamgirls winner Jennifer Hudson join Les Miserables cast members Hugh Jackman, Anne Hathaway, Russell Crowe, Helena Bonham Carter and Amanda Seyfried on stage.

During the section of the show that pays tribute to those who died in 2012, Barbra Streisand sang the late Marvin Hamlisch's The Way We Were, from the 1973 romantic drama in which she starred with Robert Redford. It was Streisand's first Oscars performance for 36 years.

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Lib Dems 'screwed up' over Rennard

25 February 2013 Last updated at 05:48 ET

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Nick Clegg: "Now that we have specific allegations we can finally act"

Nick Clegg has denied a cover-up over the alleged behaviour of ex-Lib Dem chief executive, Lord Rennard, as the party president Tim Farron admitted they "screwed it up as a party".

Mr Clegg said he had only been aware of "indirect and non-specific concerns" about the peer's conduct towards women.

Lord Rennard denies the allegations, which predate Mr Clegg's leadership.

The deputy PM said he would choose different words to Mr Farron, but said Lib Dem processes were "flawed".

Continue reading the main story

Analysis

Nick Clegg maintains he has "got absolutely nothing to hide" regarding the allegations against Lord Rennard.

But his statement on Sunday only seemed to add to the confusion when he admitted that he was aware of "non-specific" allegations that a senior party official had sexually harassed women.

Instead of closing down the story Nick Clegg appeared to point to his chief-of-staff at the time, Danny Alexander, who is now a Cabinet colleague. He said Mr Alexander had put "these concerns to Chris Rennard and warned him that any such behaviour was wholly unacceptable".

Clearly senior figures in the party were made aware of at least some of the allegations.

The man tasked with leading the inquiry into the women's allegations - Tim Farron - has acknowledged to the BBC that "We screwed this up as a party".

That admission from the president of a party still reeling following the resignation of cabinet minister Chris Huhne will only pile more pressure on Nick Clegg.

While Lord Rennard may be the focus of the party's investigations, it is Nick Clegg's handling of the situation, and ultimately his leadership, which is now being questioned.

The growing row comes as the Lib Dems prepare to defend the seat of Eastleigh in Hampshire on Thursday, in a by-election caused by the resignation of Chris Huhne.

On Thursday and Friday, Channel 4 News broadcast allegations by four women of sexual impropriety by Lord Rennard in incidents spanning several years, the first in 2003.

Mr Clegg, who became party leader in 2007, insisted he had not known about the specific allegations until the Channel 4 broadcast.

He said he had acted on "general concerns" expressed about Lord Rennard's conduct in 2008, when his then-chief of staff Danny Alexander warned the peer that any such behaviour was "wholly unacceptable" and Lord Rennard "categorically denied" that he had acted inappropriately.

But he said none of the women concerned, including one who worked in his office, had raised specific allegations with him personally at the time.

"I have nothing to hide," he told BBC Radio Solent. "The party has nothing to hide. We have to listen to the women who feel they were not properly listened to and to get to the truth."

But party president Mr Farron said the Lib Dems needed to "look at itself" as a party and how it handled the concerns when they were first raised.

"The one thing I probably can tell you without going through due process is that we screwed this up as a party," he told the BBC Radio 4 Today programme.

"There are individuals out there who we had a duty of care towards and we did not fulfil that duty of care. That is something that we have to learn from, apologise for and make sure it never happens again."

'Instant justice'

The Lib Dems are now conducting two inquiries - one into the specific complaints against Lord Rennard, and the other - which will be independently chaired - into how the allegations were handled in the past.

The inquiry under the party's disciplinary procedures will also look at whether Lord Rennard stood down in 2009, after six years as chief executive, for reasons other than the health grounds stated at the time.

Continue reading the main story

Profile: Lord Rennard

Chris Rennard was born in Liverpool in 1960, and was an active Liberal Party member in his teens and later as chairman of the University Liberals and Social Democrats at Liverpool University.

He went on to become deputy chairman of the Liverpool Liberal Party, organising many of the party's successful election campaigns.

He was the most successful Liberal agent in the country while working in the Liverpool Mossley Hill constituency of David Alton (now Lord Alton of Liverpool), helping achieve a winning 14% swing against the Conservatives in 1983.

A key member of many Liberal/Alliance by-election campaign teams in the 80s, he also wrote party publications on campaigning.

In 1989, he was made an MBE, married Ann McTegart, and was appointed the Liberal Democrats' director of campaigns and elections.

In the 1997 general election, he oversaw the campaign which more than doubled the party's MPs - from 18 to 46. He also directed the 2001 and 2005 campaigns.

As party chief executive from 2003 to 2009, he also chaired the general election campaign from summer 2006 until he stood down.

Source: Liberal Democrats website

Speaking on Monday, Mr Clegg said the party had acted quickly after the specific allegations emerged, adding that he "hoped and believed that people can have confidence" in the investigations being undertaken.

In the face of demands for "instant justice", he said the party must follow "due process" in looking into the complaints but he said he suspected the investigations would find that the party's procedures may have been "flawed".

Labour have called for a fully independent inquiry to ensure "the public have confidence that the truth will prevail and lessons learned for the future".

Two women told Channel 4 Lord Rennard had abused his position by inappropriately touching and propositioning them. One of the women said she had spoken to two senior party figures about her claims, but said no action had been taken. Allegations from more women were broadcast on Friday.

Mr Clegg's former parliamentary aide, Jo Swinson, and now equalities minister, has said she "took action" after some women had confided in her, but she has not specified what form that action took.

The Mail on Sunday reported that one of the women who came forward to Channel 4 News had discussed the allegations with a friend on Facebook in January 2009.

"I just don't know how nick can know and not do anything.. :-( makes me very sad," she wrote, according to the paper.

Lord Rennard, who was also a key strategist and adviser to a succession of party leaders, said on Friday he was "deeply shocked" about the allegations and said they were a "total distortion" of his character.

The peer said he knew of no complaints against him in his 27 years working for the party, but he has temporarily stood aside from the Lib Dems' group in the Lords to avoid "embarrassment" to the party.

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Hear retrial afresh, Pryce jury told

25 February 2013 Last updated at 06:56 ET

The jury at the retrial of ex-cabinet minister Chris Huhne's former wife Vicky Pryce has been told by the judge to listen to the case "afresh".

Mr Justice Sweeney discharged the jury at Southwark Crown Court last week after it was unable to reach a verdict.

The new jury must base its decision on evidence heard in court, he said.

Ms Pryce, 60, denies perverting the course of justice on a charge relating to speeding points she took for Huhne, saying he had coerced her in 2003.

Huhne has admitted the offence and is awaiting sentence. He resigned as the Lib Dem MP for Eastleigh in Hampshire after pleading guilty earlier this month.

After the second jury of seven men and five women was sworn in, Mr Justice Sweeney gave them a written copy of their duties.

He told the jurors their predecessor's failure to reach a verdict was "irrelevant".

He said it was their task to "pool their common sense and experience of life" to reach a true verdict according to the evidence.

The judge told them to put out of their minds anything they had learned of the first jury's failure to reach a verdict.

He said: "You judge the case afresh... only on the evidence that unfolds before you. The other jury's disagreement is irrelevant in this case."

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Horsemeat found in Ikea meatballs

25 February 2013 Last updated at 06:59 ET

Ikea has halted sales of its meatballs in Sweden after meatballs set for sale at its stores in the Czech Republic were found to contain horsemeat.

The discovery comes as European Union agriculture ministers meet in Brussels for talks widely expected to focus on the growing horsemeat scandal.

Inspectors in the Czech Republic said horsemeat was found in meatballs made in Sweden labelled as beef and pork.

The scandal began last month with frozen meals and burgers.

It spread from the UK and Ireland, with traces of horsemeat and horse DNA being found in food across the EU.

Supermarkets across Europe have had to withdraw affected prepared meals from their shelves.

Some 760kg (1,675lb) of the Swedish-style meatballs were intercepted and stopped from reaching Czech shelves, officials told the Associated Press.

Horsemeat was also found in beef burgers imported from Poland, the Czech State Veterinary Administration said.

'Concrete action'

The labelling of the origin of meat and the traceability of the products will be high on the agenda at the EU ministers meeting.

Europe's food retailers depend on a complex network of brokers, cold stores and meat-cutting plants around the continent from which to source the ingredients wherever they are cheapest, says the BBC's Christian Fraser, in Paris.

The evidence of the past few weeks shows that national food safety authorities have failed to identify a problem in the supply chain over a significant period of time, he adds.

While the original agenda of the EU meeting included support for rural communities and the common fisheries policy, it is expected ministers will now try to come up with measures to tackle the horsemeat scandal.

Those could include a pan-European labelling project for frozen food, a move which has the backing of France and Germany.

Continue reading the main story

• In mid-January, Irish food inspectors announced they had found horsemeat in some burgers stocked by UK supermarket chains
• Subsequently, up to 100% horsemeat found in several ranges of prepared frozen food in Britain, France and Sweden
• Concerns that a drug used to treat horses, and which may be harmful to humans, could be in food chain
• Meat traced from France through Cyprus and the Netherlands to Romanian abattoirs
• Investigation suggests adulteration was not accidental but the work of a criminal conspiracy

Paris and Berlin both want compulsory labelling and traceability.

UK Environment Secretary Owen Paterson said on Friday that he would "continue to insist on concrete, co-ordinated action right across Europe when I meet European agriculture ministers on Monday".

But a workable deal could be difficult, our correspondents says. The discovery of horsemeat comes in long, complex and poorly regulated supply chains in the meat industry.

At least a dozen countries are involved in the horsemeat affair, which implicates some of the biggest meat processors and food producers.

Italy joined the list on Saturday, reporting horsemeat in some lasagne products.

On Friday, Germany's consumer affairs ministry announced it had found traces of horse DNA in 67 of 830 food products tested.

Irish authorities on Friday suspended production at one processing plant after horsemeat was found labelled as beef.

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Cardinal Keith O'Brien resigns post

25 February 2013 Last updated at 07:06 ET By Robert Pigott Religious affairs correspondent, BBC News

Britain's most senior Roman Catholic cleric, Cardinal Keith O'Brien, is stepping down as leader of the Scottish Catholic Church.

It follows allegations - which he contests - of inappropriate behaviour towards priests dating from the 1980s.

In a statement, he apologised to those he had offended during his ministry.

The cardinal confirmed he would not take part in the election for a successor to the Pope - leaving Britain unrepresented in the election.

He said Pope Benedict has accepted his resignation as Archbishop of St Andrews and Edinburgh.

Cardinal O'Brien said in a statement he had already tendered his resignation, due to take effect when he turned 75 next month, but that Pope Benedict "has now decided that my resignation will take effect today".

He said the pontiff would appoint an apostolic administrator to govern the archdiocese in his place until his successor is appointed.

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• Born on 17 March 1938 in Ballycastle, County Antrim, Northern Ireland
• Ordained a priest on 3 April 1965
• Obtained a bachelor of science degree in chemistry and mathematics from the University of Edinburgh and a diploma in education
• Employed by Fife County Council as a teacher of mathematics and science from 1966 to 1971
• Also served as assistant parish priest and as chaplain of St Columba Secondary School in Cowdenbeath
• Spiritual director of St Andrew's College in Drygrange from 1978 to 1980
• Rector of St Mary' College, Blairs, Aberdeen from 1980 to 1985
• Ordained Archbishop of Saint Andrews and Edinburgh in 1985
• President of the Bishops' Conference of Scotland March 2002 until 2012
• Proclaimed Cardinal by John Paul II on 21 October 2003
• Was due to retire after he turned 75 on 17 March
• Retirement accepted by Pope Benedict on 25 February

Church crisis

The cardinal also said: "I have valued the opportunity of serving the people of Scotland and overseas in various ways since becoming a priest.

"Looking back over my years of ministry: For any good I have been able to do, I thank God. For any failures, I apologise to all whom I have offended.

"I do not wish media attention in Rome to be focussed on me - but rather on Pope Benedict XVI and on his successor.

"However, I will pray with them and for them that, enlightened by the Holy Spirit, they will make the correct choice for the future good of the Church."

The resignation of Britain's most senior Roman Catholic cleric in the wake of allegations of improper behaviour creates a crisis for the Church in Scotland, and represents a heavy blow to the wider Church as it battles to shore up its reputation ahead of the papal election or "conclave".

The conclave is already expected to be difficult in the circumstances created by Pope Benedict's unprecedented resignation.

The Vatican is also struggling to deal with reports of internal corruption and mismanagement.

Cardinal O'Brien's resignation is also a personal tragedy for himself.

Allegations made

His role as Britain's only representative in the papal election next month would have been one of his last acts before he retired.

He said in a BBC interview on Friday that he found the responsibility of helping to choose a successor to Pope Benedict "almost frightening".

Jack Valero from Catholic Voices, a media lobby group that represents many Catholics in the UK, says the allegations against the cardinal have been handled properly.

"I think it's right that he's resigned, faced with these allegations.

"I am very happy that they have been taken seriously, that the nuncio - who is the Pope's representative in the UK - has written to the four people who have made the allegations to thank them for speaking out, and that the whole thing has been done so quickly. I think this shows a new spirit."

The Observer reported that the three priests and one former priest - from the diocese of St Andrews and Edinburgh - complained to the Pope's representative to Britain, nuncio Antonio Mennini, in the week before 11 February, when Pope Benedict announced his resignation, of what they claimed was the cardinal's inappropriate behaviour towards them in the 1980s.

The former priest claims Cardinal O'Brien made an inappropriate approach to him in 1980, after night prayers, when he was a seminarian at St Andrew's College, Drygrange.

The complainant says he resigned as a priest when Cardinal O'Brien was first made a bishop.

He reportedly says in his statement: "I knew then he would always have power over me. It was assumed I left the priesthood to get married. I did not. I left to preserve my integrity."

A second statement from another complainant says he was living in a parish when he was visited by O'Brien, and inappropriate contact took place between them.

A third complainant alleges dealing with what he describes as "unwanted behaviour" by the cardinal in the 1980s after some late-night drinking.

And the fourth complainant claims the cardinal used night prayers as an excuse for inappropriate contact.

Cardinal O'Brien missed celebrating Sunday Mass in St Mary's Cathedral in Edinburgh, which marked Pope Benedict's eight years in office, ahead of the pontiff stepping down this week.

Outspoken views

In resigning his post at the head of the Scottish Catholic Church, Cardinal O'Brien blights the end of an illustrious career only a few weeks before he was due to retire.

The development is understood to have been prompted by a concern to protect the Church from further destabilizing speculation during the papal election.

That process is already overshadowed by allegations against a number of the cardinals who are taking part, over their connection with their handling of the Church's sex abuse scandal.

Cardinal O'Brien will be remembered in particular as a forthright defender - occasionally in outspoken and colourful terms - of Catholic teaching on abortion, euthanasia and homosexuality.

Last week Cardinal O'Brien said he believed priests should be able to marry if they wished to do so.

He said the new Pope could consider whether the Roman Catholic Church should change its stance on some issues, not of divine origin.

"For example the celibacy of the clergy, whether priests should marry - Jesus didn't say that," he said.

The cardinal was named Bigot of the Year last year by gay rights charity Stonewall for his stance on gay marriage.

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Foreign doctors 'must speak English'

23 February 2013 Last updated at 20:59 ET By James Gallagher Health and science reporter, BBC News

Foreign doctors wanting to treat NHS patients in England will have to prove they have the necessary English skills, the government has confirmed.

Concerns were raised after a German doctor, Dr Daniel Ubani, gave a patient a fatal overdose on his first and only shift in the UK.

He had earlier been rejected for work because of poor English skills.

From April there will be a legal duty to ensure a doctor's English is up to scratch before they are employed.

Foreign doctors will have to prove they can speak a "necessary level of English" before they are allowed to treat patients in hospitals or in GP surgeries, the Department of Health said.

Dr Ubani had been refused work by Leeds Primary Care Trust, but was later employed in Cambridgeshire.

From April, there will be a national list of GPs to prevent doctors being rejected in one part of the country and then cropping up somewhere else. GPs will have to prove their language skills before being put on the list.

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Health Minister Dr Dan Poulter says English skills "must be up to scratch"

Health minister Dr Dan Poulter said the measures were about protecting patients, who "should be able to understand and be understood by their doctor if we are to give them the best care they deserve".

"These new checks will ensure that all doctors who want to work in the NHS can speak proficient English and to prevent those who can't from treating patients," he said.

New powers for the body which regulates doctors in the UK - the General Medical Council - are also being discussed. A change of law could give it powers to test the communication skills of doctors from within the EU as it already can for non-EU doctors.

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Niall Dickson from the General Medical Council says the new rules are "extremely welcome"

Niall Dickson, chief executive of the GMC, said tighter rules would "strengthen patient safety".

He added: "Our position is clear - patients must be confident that the doctor who treats them has the right communications skills to do the job.

"If doctors cannot speak English to a safe standard then the GMC must be able to protect patients by preventing them from practising in the UK.

"At present we can do that for doctors who have qualified outside Europe but we cannot do it for doctors within the European Union.

"We have been working hard for some time to close this loophole in UK legislation which has caused so much concern to patients and their families and we are delighted that the government has decided to act."

Katherine Murphy, chief executive of the Patients Association, said: "New language checks for doctors are welcome, and long overdue.

"Lessons from the past have served to highlight the tragic consequences of poor language skills."

Dean Royles, director of the NHS Employers organisation, said foreign doctors had made an "invaluable contribution" but safety needed to be the "top priority".

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UK will survive ratings blow - Cable

24 February 2013 Last updated at 05:28 ET

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Mr Cable said the government was having to deal with a massive "overhang of debt".

Vince Cable has said the UK's loss of its AAA credit rating is "largely symbolic" and there are "positive" signs for the economy.

The business secretary agreed that attempts to reduce the deficit while boosting growth were proving "tricky".

But he said the measures were "working slowly" and rejected calls for the pace of cuts to be slowed or accelerated.

Labour say the downgrade is a "humiliation" for the coalition and ministers must change course.

Ratings agency Moody's cut the UK's top rate to Aa1 on Friday.

The agency, which was the first to downgrade the country's rating since 1978, said expectations were that growth would "remain sluggish" over the next few years and the government's debt reduction programme faced significant "challenges".

Asked about the downgrade, Mr Cable likened credit ratings agencies to "tipsters" and part of the "background noise we have to take into account", suggesting they had a "pretty bad record" on economic and corporate forecasting.

He said the US and France had both survived similar cuts to their ratings in the past.

"It is largely symbolic," he told the BBC's Andrew Marr programme.

"In terms of the real economy, there is no reason why the downgrade should have any impact...These things do not necessarily affect the real economy but they do reflect the fact that we are going through a very difficult time."

'Change course'

Mr Cable said efforts to reduce the deficit while also boosting growth were working, but there were "a lot of pressures in the opposition direction" which meant it was taking longer than anticipated.

The government would maintain its current course, he added, rejecting calls for more far-reaching cuts as "utterly counter-productive" and labelling calls for a Plan B in which the deficit reduction plan was substantially slowed as "pretty juvenile".

"There are some positive things happening," he said, adding that employment and export growth were rising as was the rate of business start-ups.

Tory MP Kwasi Kwarteng said that without real growth in the economy, it was clear that the rating would come "under pressure".

But, amid suggestions that sterling could be heavily sold when financial markets open on Monday, he warned against a "kneejerk reaction" and that the downgrade should be "priced into" foreign exchange calculations.

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• Private-sector firms that assign credit ratings for issuers of debt
• A credit rating takes into account the debt issuer's ability to pay back its loan
• That in turn affects the interest rate applied to the security (eg a bond) being issued
• A credit downgrade can make it more expensive for a government to borrow money
• AAA-rating is the best credit rating that can be given to a borrower's debts, indicating that the risk of borrowing defaulting is minuscule.

Mr Kwarteng told the BBC that he would like to see more done to generate growth, including further cuts to corporation tax, but the government had "generally the right approach" on the economy and Mr Osborne should stay as chancellor.

But Labour's deputy leader Harriet Harman said people's living standards would continue to be squeezed and the deficit would continue to rise until Mr Osborne changed direction and increased investment on job creation, infrastructure and industry.

"We recognise the reason why the deficit is not going down is because the economy is not growing," she told the Andrew Marr programme. "How many more signs does he (George Osborne) need before he realises their economic plan is failing and is making things worse and he needs to change course."

The UK is at risk of slipping back into recession for the third time since 2008.

It grew in the third quarter of last year, boosted by the impact of the Olympics, but shrunk again by 0.3% in the last three months of 2012.

All three major credit agencies last year put the UK on "negative outlook", meaning they could downgrade its rating if performance deteriorates.

Germany and Canada are the only major economies to currently have a top AAA rating, as much of the world has been shaken by the financial crisis of 2008 and its subsequent debt crises.

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Cardinal 'accused over behaviour'

24 February 2013 Last updated at 05:37 ET

Britain's most senior Roman Catholic cleric has been reported to the Vatican over claims of inappropriate behaviour going back 30 years, a newspaper says.

The Observer said three priests and one former priest have made the complaint against Cardinal Keith O'Brien, 74, leader of the Scottish Catholic Church.

They have demanded his immediate resignation, it said.

A statement from the Scottish Catholic Church said Cardinal O'Brien contested the claims and was taking legal advice.

Cardinal O'Brien stood down from some front-line duties in the Catholic Church in Scotland last year because of his age, and is due to retire next month when he turns 75.

He will have a say in who succeeds Pope Benedict XVI when the pontiff stands down on 28 February. He is Britain's only representative in the election for a successor.

Late-night drinking

The Observer reported that the three priests and one former priest - from the diocese of St Andrews and Edinburgh - complained to the Pope's representative to Britain, nuncio Antonio Mennini, of what they claimed was the cardinal's inappropriate behaviour towards them in the 1980s.

The four complained in the week before 11 February, when Pope Benedict announced his resignation.

The former priest claims Cardinal O'Brien made an inappropriate approach to him in 1980, after night prayers, when he was a seminarian at St Andrew's College, Drygrange, the Observer says.

The complainant, who is now married, says he resigned as a priest when Cardinal O'Brien was first made a bishop.

He reportedly says in his statement: "I knew then he would always have power over me. It was assumed I left the priesthood to get married. I did not. I left to preserve my integrity."

A second statement from another complainant says he was living in a parish when he was visited by O'Brien, and inappropriate contact took place between them.

Continue reading the main story

• Born on 17 March 1938 in Ballycastle, County Antrim, Northern Ireland
• Ordained a priest on 3 April 1965
• Obtained a bachelor of science degree in chemistry and mathematics from the University of Edinburgh and a diploma in education
• Employed by Fife County Council as a teacher of mathematics and science from 1966 to 1971
• Also served as assistant parish priest and as chaplain of St Columba Secondary School in Cowdenbeath
• Spiritual director of St Andrew's College in Drygrange from 1978 to 1980
• Rector of St Mary' College, Blairs, Aberdeen from 1980 to 1985
• Ordained Archbishop of Saint Andrews and Edinburgh in 1985
• President of the Bishops' Conference of Scotland March 2002 until 2012
• Proclaimed Cardinal by John Paul II on 21 October 2003
• Due to retire after he turns 75 on 17 March

A third complainant alleges dealing with what he describes as "unwanted behaviour" by the cardinal in the 1980s after some late-night drinking.

And the fourth complainant claims the cardinal used night prayers as an excuse for inappropriate contact.

BBC religious affairs correspondent Robert Pigott says the allegations seem to have been publicised now because the four complainants do not want Cardinal O'Brien to go to the Vatican to participate in electing a new pope.

The chances of him not going, however, are "very remote", as not only has he denied the allegations but it is very difficult to prevent a cardinal from exercising their papal vote, unless he is detained by the state.

Cardinal Cormac Murphy-O'Connor, the former archbishop of Westminster, told the BBC's Andrew Marr programme he was "very sad" to hear of the allegations made against Cardinal O'Brien.

"There have been other cases which have been a great scandal to the Church over these past years.

"I think the Church has to face up - has faced up - to some of them very well indeed.

"I don't know what the Church will do. I think Cardinal O'Brien is very near to retirement and I suspect that his resignation, which is already with the Pope, because he's nearing 75 and every bishop has to retire - then presumably that will be accepted."

Pope vote

Cardinal O'Brien, who was born in Ballycastle, Co Antrim, has been the Archbishop of St Andrews and Edinburgh since 1985.

He has been an outspoken opponent of plans to legalise same-sex marriage and was named "bigot of the year" by gay rights charity Stonewall last November, prompting a storm of controversy.

Last Friday, he said he had not yet decided who should be elected as Pope during the conclave, which is expected to be held next month.

The cardinal said he believed it might be time for a younger pontiff from part of the developing world, where the Catholic faith is thriving.

He also said he believed priests should be able to marry and have children if they wished to do so.

Meanwhile, nearly 10,000 people in the United States have signed a petition calling on a senior Catholic clergyman to not participate in the election for the next Pope.

Cardinal Roger Mahony has been accused of helping priests suspected of sexual abuse to escape detection.

The Los Angeles archdiocese, of which he was formerly the head, has paid out millions of dollars in compensation to victims of child sex abuse.

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