Osborne Plans To Get More Women In Work

By Faisal Islam, Political Editor

The Chancellor of the Exchequer is to promise to get up to half a million more women into the workplace as part of a new Conservative push on the economy.

With GDP figures for the third quarter released on Friday morning, George Osborne will be touring the length and breadth of Britain to try to send a message that the macroeconomic recovery is working for women.

The centrepiece of Mr Osborne's ambition is to increase the UK female employment rate of 67% to that in Germany of 69%.

Ahead of December's Autumn Statement, he is considering extending the Government's Childcare Business Grant to £2m to help create 50,000 further childcare places. 

He will also announce new Treasury research showing the number of women in employment in the UK at a record level, and that the bulk of the growth in that has been in highly skilled occupations.

Video: July: More Women Taking Up Trades

"Today's Treasury research shows that women are playing an ever larger role in the economy, but it also makes clear that there's more we can do to support women into work," said Mr Osborne.

"That is why I am today visiting women working in all four sectors of the economy to find out what more we can do to support them."

The Conservatives have repeatedly been accused of having "a problem with women", before a recent reshuffle promoting women to key ministerial positions.

But David Cameron will have to do a lot better with the so-called "Mumsnet vote" to stay in Downing Street next May.

Video: July: More Women In Reshuffle

The tour is also part of a wider move to show the recovery in GDP is benefiting individual groups.

The Opposition criticise the nature of the recovery in the UK, argue that the "cost of living crisis" and low pay disproportionately affect women in the workforce. Of those on zero-hours contracts, 54% are women.

Mr Osborne and Education Secretary Nicky Morgan will visit Cheshire and Devon.

In Exeter he will also announce £150m in capital funding for NHS clinical research.

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UK's Surcharge Row: Your Questions Answered

What is the European Commission asking for from the UK?

Britain has been told it has to pay an extra £1.7bn (€2.1bn) towards the European Union budget.

This is being called a one-off bill which would add about a fifth to the UK's annual net contribution of £8.6bn.

Why the increase?

The extra money is being demanded because the UK economy is doing better relative to the sluggish eurozone.

Contributions are based on each member's VAT receipts and national income, and the adjustment takes into account the fluctuating size of economies.

The gross national incomes of the UK, France and Germany since 1995

Do any other countries have to pay more?

The Netherlands has been asked to stump up an extra €642m into the EU budget.

Video: Britain Will Not Pay £1.7bn 'Bill'

Do any countries have to pay less?

France is set to get a rebate of €1bn and Germany is due to receive a €779m rebate as they have been overpaying.

When does the UK have to pay the extra money?

Britain will have to make the top up payment by 1 December. Refusal to pay could result in legal action by the EU for "infraction".

However, the maximum fine for the UK would be €225m (£177m) a year - much less than the cost of the surcharge.

Why is the UK government angered by the extra demand?

David Cameron called the £1.7bn bill "completely unacceptable" at a meeting in Brussels and said he would not pay it by 1 December.

The surcharge was branded "outrageous" by Eurosceptic MPs in his Conservative Party.

And it will pile more pressure on the Prime Minister as he fights to defend the seat of Rochester and Strood from UKIP in a by-election on November 20.

What does UKIP think?

Leader Nigel Farage said: "David Cameron once claimed that he had reduced the EU budget - but the UK contribution went up - and now, quite incredibly, our contribution goes up a second time. It's just outrageous.

Video: Farage: EU Surcharge 'Outrageous'

"The EU is like a thirsty vampire feasting on UK taxpayers' blood. We need to protect the innocent victims, who are us."

Maybe the UK should pay the extra money?

Lecturer Isabelle Hertner said she was in favour of the surcharge. She told Sky News: "It is fair because for many years Britain had a rebate that was negotiated by ex-PM Margaret Thatcher and paid less into the EU budget than it should have paid.

"Whereas Germany and France paid as much as it should have paid, so in a way this is a give-and-take relationship. Sometimes you pay in more, sometimes less.

"For me this is fair and it was a rule that was agreed by the British government and other EU governments in the past."

What does the European Commission say?

Patrizio Fiorilli, an EC spokesman, said the request for more funds "reflects an increase in wealth".

He said: "Just as in Britain you pay more to the Inland Revenue if your earnings go up."

The EC also said the EU budget was about €144bn in 2013 - which it claimed was very small compared to the sum of the 28 EU countries' national budgets (over €6,400bn).

It added that total government expenditure by the 28 EU countries is almost 50 times the EU budget.

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Key Investor Empties Trolley Of Tesco Shares

By Mark Kleinman, City Editor

One of Tesco's most prominent institutional shareholders has ditched its remaining stake in the company and cast doubt on the retailer's recovery prospects under its new chief executive.

Sky News has learnt that David Herro, a fund manager at Chicago-based Harris Associates, sold just under 1% of Tesco - worth around £140m at Friday's closing share price - in the days leading up to the company's interim results announcement this week.

Mr Herro has been a vocal steward of Tesco shares during the last two years, initially supporting the strategy of Philip Clarke before his sacking as chief executive in July.

In August, he changed his stance, offloading two-thirds of his firm's stake in Britain's biggest retailer while criticising the performance of its chairman.

Tesco shares are trading at their lowest level in over ten years

The Harris Associates fund manager joins Warren Buffett, the world's most famous investor, in slashing his holding in Tesco.

Mr Buffett recently called his investment in Tesco "a mistake", underscoring the huge task facing Dave Lewis as he bids to rebuild investor confidence in the company.

Video: New Tesco CEO On Ending Woes

Speaking to Sky News, Mr Herro - once Tesco's seventh-largest investor - confirmed the sale of Harris's remaining shares, saying: "There is a big question about how they will fund their recovery given the decline in operating profit and whether they will sell assets just as they are getting into the dangerous territory of being a distressed seller."

He said he would continue to monitor the situation but added that nothing that had been announced by Tesco this week would prompt him to reinvest at this point.

Tesco's shares are trading at their lowest level in more than a decade as investors take fright at the scale of the strategic and financial challenges confronting it.

Video: Tesco's Woes In Detail

Announcing a near-92% fall in half-year statutory pre-tax profits on Thursday, Mr Lewis said he would not be formally announcing a new strategy for the company.

He opted not to dispel City speculation about a potential rights issue, saying that while the company was not "currently" working on a capital-raising, he would "never say never".

Prospective buyers are circling assets including Tesco's valuable Asian retail operations and its data marketing division, Dunnhumby, although no formal sale talks are underway.

Tesco said that it had revised upward a black hole in its half-year profits caused by an accounting mis-statement to £263m and said the issue pre-dated this financial year.

Sir Richard Broadbent, its under-fire chairman, said he would step down, while Tesco is withholding termination payments to Mr Clarke and the former chief financial officer pending the outcome of a probe by the Financial Conduct Authority.

The turmoil has forced Tesco to shore up its financial position by turning to five banks to lend the company £1bn each in order to head off the prospect of lenders calling in existing loans.

Insiders said that the syndicate included Barclays, BNP Paribas, Deutsche Bank, Goldman Sachs and HSBC, although Tesco refused to comment.

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Amazon Bleeds Value As Microsoft Delights

Shareholders headed for the fulfillment centre exit door on Thursday night as Amazon posted disappointing numbers, though Microsoft investors had more to cheer.

Amazon's stock price tumbled 11% in after-hours trading in New York - the result of a deepening quarterly loss of $437m (£272m) compared to a figure of $41m in the same period last year.

Revenue jumped to $20.6bn from $17.1bn.

The profit performance is explained by the world's largest online retailer's decision to keep investing heavily in its offering and new products at the expense of returns for shareholders.

Its forecast for Christmas sales was also cited by analysts as a reason for the latest sell-off, with Amazon stock already 22% lower this year.

The company said it expected holiday revenue of between $27.3bn and $30.3 billion - below expectations.

The Fire is Amazon's first smartphone

Amazon launched a smartphone, the Fire, earlier this year and has been offering a set-top video streaming device, a streaming video service and several tablets and e-book readers.

The company has also been investing in services for its loyalty programme, Prime, adding grocery delivery services and music streaming for Prime members as well as offering original TV shows such as the critically acclaimed "Transparent" starring Jeffrey Tambor.

It confirmed in August plans to buy the video game streaming service, Twitch, spending the best part of $1bn on the acquisition.

But it is increasingly clear that what investors want more than revenue growth, is a solid profit.

In a conference call with analysts, chief financial officer Thomas Szkutak defended its strategy and said the company is focused on "using its capital wisely so that over time we get good returns on invested capital."

Rival Microsoft's quarterly figures were well received in comparison.

Xbox consoles continue to sell well for Microsoft

The tech firm's profit and revenue sailed past expectations as chief executive Satya Nadella's push to embrace cloud computing and diversify into mobile devices helped lift sales by 25%.

Revenue from cloud services, including software delivered over the Internet, more than doubled last quarter at a time when some of Microsoft's better-known segments are slowing.

Shares jumped over 3% in after-hours trading having risen 33% in the past 12 months.

Microsoft still makes most of its money from selling traditional software for businesses and home computers but Nadella wants a shift towards software that can be easily accessed online and on the move.

The company confirmed it was to ditch the Nokia name on smartphones following the firm's purchase of the brand.

Costs related to the acquisition ate into profits to the tune of almost $1bn, with net income of $4.54bn supported by strong sales of Surface tablets and Xbox gaming consoles.

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Magners Bid For Pub Firm Spirit Turns Sour

A takeover bid by the cider firm behind the Magners brand for Spirit Pub Co, has been rejected.

Spirit, which has 1,200 UK pubs under the Chef & Brewer and Taylor Walker names, did not disclose the details of the approach but said Ireland-based C&C Group had until 20 November to submit a formal offer.

C&C is the second company vying for control of Spirit, with the UK's largest pub retailer and brewer Greene King already in talks on a cash-and-stock deal valued at £723m.

C&C, which also produces cider under the Bulmers name, said it hoped to use Spirit's network of pubs to improve its access to English drinkers but that there was no certainty it would make a firm offer.

It added that the tie-up would allow it to "match the recognition it enjoys in its other core markets", Scotland and Ireland.

Its shares fell 7% in early trading following Thursday's announcement, with The Times newspaper reporting that C&C was offering 115p-per-share in cash and stock, with at least a third in cash.

That would top Greene King's current offer of 109.5p-per-share.

Greene King, which has 2,000 pubs, restaurants and hotels, said last month it expected to make a further statement on its interest in Spirit.

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Economy: Third Quarter Growth Slows To 0.7%

UK economic growth slowed in the third quarter of the year, according to the first official estimate of GDP for the period.

The Office for National Statistics (ONS) measured Gross Domestic Product growth of 0.7% in the period, down from output growth of 0.9% in the previous three months.

It charted a slowdown in manufacturing, saying expansion - at 0.3% - was its weakest for 18 months amid concerns for the world economy and the euro area in particular - the country's biggest trading partner.

The service sector, which accounts for more than 75% of the country's total output, showed growth of 0.7% during the three months to September - down from 1.1% in the previous quarter.

Construction output continued to grow

It meant, the ONS said, that annual growth was 3%, down from 3.2%, though total economic output was 3.4% bigger than its pre-crisis peak in 2008.

All the figures are subject to revision but the status quo still leaves manufacturing 4.1% behind and construction 8.2% short of their peaks.

Video: Govt 'Out Of Touch' On Economy

Construction output grew 0.8% in the third quarter.

The performance was widely expected by economists, given forecasts suggesting the eurozone may slip back into recession.

The data for the service sector suggests businesses will be more wary about spending while consumers remain hit by weak wage rises.

Chancellor George Osborne said: "Today's strong growth figures show that the UK continues to lead the pack in an increasingly uncertain global economy.

"With all the main sectors of the economy growing, it's clear that our recovery is broadly based.

"But the UK is not immune to weakness in the euro area and instability in global markets, so we face a critical moment for our economy.

"If we want to avoid a return to the chaos and instability of the past, then we need to carry on working through our economic plan that is delivering stability and security."

Labour's shadow chancellor Ed Balls responded: "For all George Osborne's claims that the economy is fixed most people are still not feeling the recovery.

"Working people are over £1,600 a year worse off since 2010 and these figures now show a concerning slowdown in economic growth too.

"We need a strong and balanced recovery that works for all working people, not just a few at the top."

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Asda Pledges To Fight Staff Equal Pay Action

Asda has said it will "robustly defend" its record on equal pay amid revelations it is facing a legal action potentially involving thousands of workers.

The law firm Leigh Day said it was currently representing hundreds of former and current employees and had been approached by over 19,000 people in total.

The company suggested that a legal victory could result in Asda being forced to hand over back-pay and interest dating back six years.

It said its clients, mostly women, "feel they have been paid less than others within the organisation despite carrying out roles of equal value."

Leigh Day said its case was based on claims that staff in Asda-owned distribution centres were paid more than staff working in the supermarket stores.

The company's employment law expert, Michael Newman, suggested that the implications of the legal claims were big not just for Asda but also other supermarket chains.

He said: "Our investigations suggest that the jobs are pretty much the same, in that warehouse staff are responsible for taking items off shelves, putting them on pallets and loading them into lorries.

"In the supermarket, they do the reverse: taking the pallets off the lorries, unstacking them and putting the items on the shelves.

"Where the jobs are not similar, we still think they are of equal value."

Asda, which has 175,000 employees, said: "A firm of no win, no fee lawyers is hoping to challenge our award-winning reputation as an equal opportunities employer.

"We do not discriminate and are very proud of our record in this area which, if it comes to it, we will robustly defend."

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Chancellor Needs Hard Hat For Fight Ahead

It's a rum state of affairs when Britain is apparently punished for having a strong economy.

After all, we've spent the past five or six years telling ourselves that all we desperately need is a bit of growth.

And yet that's how things look today, with the UK fighting off an attempt by the European Union to charge it an extra €2.1bn (£1.7bn) because of the strength of its recovery.

As if to rub it in, that coincides with another set of relatively strong gross domestic product numbers, reminding us that the recovery is indeed in full train.

Now, in truth the EU charge is largely down to long term rather than short term trends - particularly revisions to long-term output levels conducted over the course of the past year or so.

Video: Osborne: Recovery At Crucial Phase

But it nonetheless begs a few questions: first, where will this money come from? Second, is the UK economy really in a position of strength?

The first question is rather awkward for the Chancellor, for while the economy is certainly growing a lot quicker than expected (today's 0.7% growth means GDP is 3% higher than a year ago, and 3.4% higher than before the recession hit in 2008), it isn't bringing in as much tax as had been hoped.

Indeed, while economists had expected the Treasury to reduce the deficit by £10bn, the latest numbers suggest it may end up the same or higher than last year.

Indeed, the OBR had been expecting income tax receipts to rise by 6.5% this year; instead they have fallen by 0.8%.

And when you factor in the extra money the Chancellor will need to pay for the new tax cuts he set out at party conference a few weeks ago, one has to conclude that there simply isn't much cash to spare.

The second question is simpler to answer. The UK economy is doing well at the moment.

Today's growth numbers were more or less in line with expectations, and every sector of the economy - services, production, agriculture and construction - grew at a fair whack in the most recent quarter.

Though don't be fooled by the optics frequently employed by the Chancellor.

Video: Govt 'Out Of Touch' On Economy

You might have assumed, given how many times you've seen George Osborne in a hard hat or (as he was today) in a car factory, that these were the sectors which really drove the recovery.

The detailed figures we got today tell a different story. Since the start of the crisis output in the construction sector is actually down by 8.2%. The output of the motor vehicle sector is, admittedly, up by 4.4% but it has driven growth far, far less than administrative and support activities, up by a whopping 27.8%.

In other words, it is office workers who have driven the recovery, not people in hard hats.

It is the support staff, computer repair engineers and other white collar workers whose sectors have expanded most quickly.

But, to bring things back to the EU once again, the problem is that those office-based sectors don't make and export things overseas.

The one aspect of the economy Britain desperately needs to improve is its balance of trade, which is woefully weak - and, if anything, worsening.

Without an improvement in that, strong GDP or not, Britain's economy will remain imbalanced and potentially vulnerable to future crises.

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Five Experimental Ebola Vaccines Set For Trial

Trials of a possible Ebola vaccine could begin in West Africa in December with the vaccine more widely available in the first half of next year.

World Health Organisation (WHO) assistant director general Marie-Paule Kieny said: "Before the end of first half of 2015...we could have available a few hundred thousand doses. That could be 200,000 - it could be less or could be more."

She was speaking after WHO held talks about potential vaccines with health experts, officials from Ebola-affected nations and pharmaceutical firms.

There is currently no proven vaccine against the deadly virus and drug companies have previously avoided investing too heavily in a cure because outbreaks before this year's had been small.

West Africa's Ebola outbreak began in March and has killed more than 4,900 people, most of them in Liberia, Sierra Leone and Guinea, according to the WHO.

Video: Ebola: Busting The Myths

It believes that up to 1.4 million people could have been affected by 2015 and there are also fears the virus may be used as a weapon of bio-terrorism.

Two leading vaccine contenders are already in trials, with another five to begin trials next year.

US firm Johnson & Johnson have already said they aim to produce at least one million doses of their vaccine next year and UK-based GlaxoSmithKiline is also working on a vaccine called ChAd3.

Video: Ebola Crisis: On The Front Line

GSK's chief executive Sir Andrew Witty said earlier that this week's meeting of health experts should discuss ways to make sure all drug companies worked together to get the vaccine out.

Video: Ebola Tales: The Orphans

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Cameron: I Won't Pay £1.7bn EU Bill On Time

The European Commission president has defended the £1.7bn surcharge imposed on Britain after David Cameron insisted the money will not be paid by December 1.

The increase would add almost a fifth to the UK's annual contribution of £8.6bn.

The Prime Minster, who has called an emergency meeting with EU finance chiefs, told a news conference in Brussels: "This is completely unacceptable.

"It is an unacceptable way for this organisation to work to suddenly present a bill like this for such a vast sum of money, with so little time to pay it and it's an unacceptable way to treat one of the biggest contributors to the European Union.

"Of course in an organisation like this, if your economy grows a little faster or ... slower, there are adjustments. Sometimes you pay a little bit more, sometimes you play a little bit less.

Video: EC Chief: £1.7bn UK Surcharge Fair

"I'm not paying that bill on the 1st of December and if people think I am, they've got another thing coming. It is not going to happen.

"As an important contributor to this organisation, we are not suddenly going to get out our chequebook and write a cheque for 2bn euros. It is not happening."

Outgoing Commission president Jose Manuel Barroso insisted Brussels was only following the procedures created by member states to balance the EU's books each year.

Mr Barroso told reporters the figure of £1.7bn had been calculated by the independent Eurostat organisation using statistics provided the 28 member states.

Video: Farage: EU Surcharge 'Outrageous'

"Of course, I understand the concerns it has raised in London, but any person that wants to look with objectivity and honesty at the rules that were approved by the member states has to accept that sometimes these decisions happen," he said.

Asked how the Commission would respond if Mr Cameron made good on his threat to withhold payment, Mr Barroso replied: "I can't now speculate on non-payment."

Earlier, Commission spokesperson Patrizio Fiorilli said the surcharge was fair because it was like personal taxation - the more a person earns, the more they have to pay.

Mr Fiorilli said: "Britain's contribution reflects an increase in wealth, just as in Britain you pay more to the Inland Revenue if your earnings go up."

Video: George Osborne - The Full Interview

The demand is the result of improvements to Britain's economy since 1995.

Preliminary figures seen by the Financial Times suggest Britain is facing the largest adjustment in the amount it must pay compared to other member states.

The Netherlands is being asked for an extra £509m, but by contrast France is due to receive a rebate of £0.8bn, Germany £618m, and Poland £250m.

Britain's surcharge is due for payment on 1 December - just days after the Rochester and Strood by-election, which hangs on a knife edge with anti-EU UKIP threatening to wrest the seat from the Tories.

Video: What Does Surcharge Mean For PM?

Several Conservative MEPs have spoken out against the surcharge, saying Britain is being punished for its success.

UKIP leader Nigel Farage told Sky News: "It just leaves Mr Cameron in a hopeless condition, because don't forget, one of his big claims was he'd cut the EU budget."

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