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.

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"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."

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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.

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"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".

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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.

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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.

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• 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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Pistorius brother faces own trial

24 February 2013 Last updated at 07:06 ET

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The BBC's Milton Nkosi says Carl Pistorius' trial will begin at the end of March

The brother of South African athlete Oscar Pistorius - accused of murdering his girlfriend - is also facing trial over the death of a woman.

Carl Pistorius is charged with culpable homicide over the death of a woman motorcyclist in a traffic accident in 2008, his lawyer said.

The case has no relation to the charges against Oscar Pistorius over the shooting of Reeva Steenkamp.

The Paralympic star - who was released on bail on Friday - denies murder.

The charge against Carl Pistorius over an accident involving his car in which a woman on a motorcycle died has only just emerged.

It was confirmed to the BBC by Pistorius family lawyer Kenny Oldwage, who said Carl appeared in court the day before his brother's judgement in the bail hearing last week.

He is due to appear again in March.

'Regret'

"There is no doubt that Carl is innocent and the charge will be challenged in court," Mr Oldwage said in a statement. "Carl deeply regrets the incident."

The accident took place in the town of Vanderbijlpark, an hour's drive south of Johannesburg.

Police conducted tests on Carl Pistorius and he was found to have no alcohol in his blood at the time, the lawyer said.

He added that charges brought after the accident were dropped but subsequently reinstated by South African prosecutors.

Carl Pistorius was a constant presence at his brother's four-day bail hearing.

Oscar Pistorius admits shooting Reeva Steenkamp at his home on Valentine's Day but denies murder, saying he mistook her for an intruder.

On Sunday, a representative of the Pistorius family said they sent two bouquets of flowers to Ms Steenkamp's family the day before her funeral.

One was from Oscar and the other from the Pistorius family and both had handwritten notes, she said.

On Saturday Ms Steenkamp's mother June said she had received the flowers.

"But what does it mean?" she asked. "Nothing."

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Clegg 'knew nothing' of peer claims

24 February 2013 Last updated at 07:10 ET

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Mr Cable says he was unaware of the misconduct claims by Lib De colleague Lord Rennard

Business Secretary Vince Cable has said he and Nick Clegg had "absolutely not" known about claims of sexual misconduct against the Liberal Democrat's former chief executive, Lord Rennard.

Mr Cable told the BBC the allegations were being taken "very seriously".

Channel 4 News aired claims of impropriety towards women by the peer last week, but some press reports questioned if the deputy PM had been told about them years ago.

Lord Rennard denies the allegations.

The Lib Dems have launched an internal investigation into the allegations against Lord Rennard, under the party's disciplinary procedures.

Party president Tim Farron is also reviewing the way the party has dealt with allegations of this sort in the past.

On Thursday, Channel 4 News broadcast allegations by two women of sexual impropriety in incidents spanning several years by Lord Rennard.

The women told the news programme he abused his position by inappropriately touching and propositioning them.

'Brushing parts of me'

One of the women said she had spoken to two senior party figures about her claims, but said no action was taken. Allegations from more women were broadcast on Friday.

"Gradually his hand started to rub the outside of my leg," one of the women - a very active member of the Lib Dems - told Channel 4.

Continue reading the main story

He wants to get to the bottom of this and the complaints. These are very serious allegations"

End Quote Spokesman for Nick Clegg

"I thought at first he'd just brushed against me. Then I moved away and it happened again. And he moved closer - and I moved away again. And he moved closer, and he just kept brushing parts of me that I didn't want to be brushed."

Following newspaper reports that Mr Clegg had been told about the allegations, Mr Cable told the BBC's Andrew Marr Show he had not known of the claims, adding: "Nick Clegg has also said he was not aware of these allegations until they appeared on TV last week.

"But they are serious, and we take them very seriously."

Mr Cable went on: "It's obviously wrong if there are women there who have made complaints and felt they weren't dealt with properly, so we are now setting up a proper investigative process - we want an independent element to that - and we'll get to the bottom of it."

The Mail on Sunday reported that one of the women who came forward to Channel 4 News 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," the paper said she posted.

Responding to the report, a Lib Dem spokesman said: "Nick categorically did not know about these allegations.

"There are no basis for claims that Nick knew - there is no way of verifying these allegations or checking who these people are."

Mr Clegg has been on holiday on Spain since the story surfaced, but is likely to give his response on Sunday.

The spokesman said Mr Clegg was happy to give evidence and participate in the two inquiries.

"He wants to get to the bottom of this and the complaints. These are very serious allegations," he said.

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. She said she welcomed the review so that "lessons can be learned".

'Deeply shocked'

Announcing the inquiries on Saturday, Lib Dem chief executive Tim Gordon expressed regret that "it appears that we did not fully live up to our political ideals" when handling complaints about Lord Rennard.

He said a five-strong panel of party figures - including at least three women - would be assembled to conduct a "thorough and in-depth" investigation into the allegations.

It is thought the inquiries could take three months to complete. Their proceedings would be confidential but the results would be made public, the Lib Dems said.

The inquiry will also look at whether Lord Rennard stood down as chief executive in 2009 for reasons other than that he gave at the time of health grounds.

Lord Rennard, a key party strategist and adviser to a succession of Lib Dem 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 Dems' group in the Lords to avoid "embarrassment" to the party.

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