IN THE NEWS TODAY: The "mother of all firewalls" is one of today's stand out phrases in the business pages but it's an eclectic mix ranging from the gas leak in the North Sea, to the price of stamps.
FINANCIAL TIMES
PROBE LAUNCHED INTO INSURANCE SALES CLAIMS
By Patrick Jenkins and Sharlene Goff
The Ministry of Justice has launched an investigation into claims management companies following a glut of invalid compensation claims filed on behalf of consumers allegedly mis-sold personal protection insurance (PPI).
According to people familiar with the case, the ministry, which regulates the hundreds of claims management companies that have sprung up in the UK in recent years, has received a string of complaints from banks over the issue?
Financial Times research shows that Britain’s banks are now rejecting up to half of all compensation claims relating to mis-sold PPI after a substantial increase in submissions in the past few weeks.
Up to four-fifths of these come via claims management companies, disparagingly dubbed “ambulance chasers”, which have latched onto the issue of PPI mis-selling, flooding consumers with advertisements, emails and text messages urging them to launch speculative claims.
THE SUN
AGED RAIDED: OAPS TELL OF TAX TORMENT
150,000 FACE BILLS AFTER BLUNDER
By Tim Heming
The sheer scale of the biggest tax blunder for a generation can be laid bare by Sun City today. An unprecedented number of pensioners have called The Sun after getting threatening demands from the taxman — despite never knowingly underpaying tax.
Bosses at Her Majesty's Revenue & Customs warned in November that 1.2million people had underpaid tax because their tax codes were never changed when they retired or took new jobs.
Of these, it is estimated that 150,000 pensioners could be affected.
The demands are now beginning to drop, stunning pensioners across the UK.
Grannies struggling to make ends meet have spent hours trying to reach the taxman's call centre staff.
THE GUARDIAN
QUEEN'S JUBILEE COULD HARM UK ECONOMY, BANK GOVERNOR WARNS
Press Association
Celebrations for the Queen's diamond jubilee could throw the British economy into reverse again, Sir Mervyn King warned on Tuesday.
The Bank of England governor said it was "quite possible" UK output would shrink over the next three months. He also signalled that the country still faced a long battle to get back to the kind of growth it enjoyed before the financial crisis.
King was asked about the impact of the jubilee as he appeared before the House of Lords Economic Affairs Committee.
The late May bank holiday has been moved to Monday 4 June, and the next day has also been designated a break to mark the event.
The governor said: "We do expect quite possibly a fall in output in the second quarter, followed by a rise in the third quarter, as we will lose an extra day's work – it doesn't necessarily follow that we will lose that whole day's output – because of the national bank holiday."
FINANCIAL TIMES
NEWS CORP IN FRESH STORM
By Ben Fenton, Salamander Davoudi and Cynthia O’Murchu
Rupert Murdoch’s News Corp was on Tuesday facing a fresh barrage of allegations over its business practices after an Australian newspaper released 14,000 emails concerning one of the group’s security subsidiaries.
The emails, said to be from the hard drive of a former head of security at NDS, a former News Corp subsidiary, appear to show that the company paid computer hackers to work with its “operational security” unit. The cache sheds further light on commercial disputes between News Corp and pay-TV rivals that now span Australasia, Europe, and the US.
THE SUN
LET THEM EAT COLD PASTY
OSBORNE TELLS SKINT BRITS TO SHUN HOT FOOD
By Tom Newton Dunn, Political Editor, and Steve Hawkes, Business Editor
George Osborne was branded "heartless" yesterday for saying hard-pressed Brits could avoid his VAT hike on hot food by buying cold pasties.He was branded a modern-day Marie Antoinette for suggesting broke Brits could dodge the 20 per cent price hike by buying cold pasties, pies and sausage rolls.
And his Treasury was accused of being "insensitive" to hardship by popular bakery shop chain Greggs. The Chancellor slapped on the tax in his Budget last week. But yesterday he clashed with Labour MP John Mann during a Treasury Committee hearing on his annual economic blueprint.
Pressed on whether the "pasty tax" was fair, Mr Osborne said: "If it's cold when you buy it, it will not be VAT-able." Mr Mann also asked: "When was the last time you bought a pasty in Greggs?" The Chancellor replied: "I can't remember."
DAILY MAIL
EURO NEEDS 'MOTHER OF ALL FIREWALLS' NOW, ACCORDING TO INTERNATIONAL WATCHDOG
By Hugo Duncan
The crisis in the eurozone is far from over and the region needs ‘the mother of all firewalls’ to save it from financial ruin, a leading international watchdog said yesterday.
The Organisation for Economic Cooperation and Development told leaders to double the bailout fund to €1trillion (£836bn) to protect the single currency from collapse.
OECD chief Angel Gurria said the eurozone must convince investors it has the firepower required and say ‘by God I’m going to use it’.
THE TIMES
MILLIONS PUT LIFE ON HOLD DUE TO DOWNTURN
By Leah Milner
Millions of people have been forced to put off important life steps like getting married, having children or buying their first house because of the financial downturn, a study has found. Almost one in ten 18-34 year-olds have postponed having their first child for financial reasons, according to a study by Moneysupermarket.com, the price comparison website. Among those who have put off starting a family, the average delay was eight years. Nearly one in five young people have delayed buying their first home - for an average four years - as high rental costs and other expenses have prevented many would-be buyers from raising the deposit required.
The number of “trapped renters” is likely to soar, according to a separate study today by Savills and Rightmove, the estate agencies, with the private rental sector set to grow from £48 billion in 2011 to £70 billion by 2016.
DAILY EXPRESS
£1 FOR A FIRST CLASS STAMP
By Dana Gloger
First class stamps are to rocket to 60 pence next month and could soon reach an eye-watering £1. They will increase from 46p while second class post rises from 36p to 50p. And with Royal Mail now given the green light to raise prices as high as it wants, there were warnings that the cost of a first class stamp would hit £1. Critics condemned the swingeing near 40 per cent rise on April 30 as another attack on Britain’s increasingly hard-pressed elderly as they are more likely than any other group to send letters and cards. Consumer groups and the greetings card industry also savaged the price rise, which was branded “an absolute disgrace”.
THE SCOTSMAN
SHUTTING DOWN NORTH SEA GAS LEAK MAY TAKE ENTIRE SUMMER
By Frank Urquhart
Oil giant Shell has shut down production on its Shearwater platform as it was revealed that it could take up to six months to quell the uncontrolled leak of toxic, volatile gas at the nearby Total Elgin installation. The energy giant announced plans to suspend production on the Shearwater as North Sea union leaders called for the platform to be completely evacuated because of the risk of a Piper Alpha-type disaster posed by the presence of a massive cloud of explosive gas over the Total installation, just 4.6 miles away. As the “substantial” gas leak continued unabated on the Elgin platform, bosses at the French oil giant were continuing to examine a series of options to bring the escape under control. Two oilrigs have already been put on standby to drill a relief well, which could take at least six months to complete.
Two specialist firefighting vessels, the Skandi Saigon and the Sea Bear, have also been deployed to the area by Total.
THE TELEGRAPH
MOTORISTS SHOULD CONSIDER STOCKPILING FUEL FOR STRIKE, SUGGESTS NO 10
By James Kirkup, Deputy Political Editor
Downing Street said that those who rely on cars to get to work should have “contingency plans” for possible disruption of the fuel supply network. Ministers are considering a range of options for keeping fuel flowing, including deploying Service personnel to drive tankers. No 10 has not ruled out trying to employ foreign drivers to stand in for British staff. Tanker drivers from the Unite union, who supply around 90 per cent of British service stations, have voted for strikes in a dispute over pay and conditions. Cabinet ministers yesterday discussed emergency plans to minimise disruption from walkouts that could start over the Easter weekend.
The Government is considering stockpiling fuel, with emergency services having a priority on supplies. No 10 said motorists and companies should also be planning for the pumps to run dry. “People, but especially businesses, should look at their contingency plans,” said a spokesman. “Those who rely on vehicles for their work should ensure they have contingency plans in place.”
THE INDEPENDENT
ASDA LIFTS ITS GROCERY MARKET SHARE TO AN ALL-TIME RECORD
By James Thompson
Asda, the UK's second-biggest supermarket, has achieved its highest-ever share of the grocery market after showing its rivals a clean pair of heels. The Kantar Worldpanel data also showed that Tesco, boosted by a recent blitz of coupons, is showing signs of recovery, following a sustained period of under performance. Asda, whose chief executive is Andy Clarke, delivered sales up by 7.8 per cent over the 12 weeks to 18 March, ahead of a 4 per cent rise across the market. This helped the Walmart-owned grocer grow its market share to an all-time record of 17.9 per cent, up from 17.3 per cent a year ago. Asda has been largely boosted by its acquisition of 147 stores of Netto UK in 2010, as well as the revamp of its own-label ranges and price guarantee initiative.
THE TIMES
CHOCOLATE WITH LUXURY TOUCH LEADS EXPORT DRIVE TOWARDS EAST
By Peter Jones
Infamous as the country that dreamt up the deep-fried Mars bar, Scotland now has a more enviable reputation as a producer of high-quality chocolate beloved of five-star caterers. The almost overnight export success of Highland Chocolatier, a Perthshire family company, is one factor behind an extraordinary leap in Scottish food and drink sales overseas. They are up by a third in just four years. Figures published yesterday by HM Revenue & Customs showed that exports of food and drink reached a record value of £5.4 billion last year, up from £3.7 billion in 2007. While the bulk of the exports were from whisky sales of £4.23 billion (up 23 per cent on 2010) and fish (up 4 per cent to £648 million), other foodstuffs are notching up even more remarkable figures.
