UK Banks Slapped With Credit Downgrades

Home owners and businesses face the prospect of higher interest rates after Britain's biggest banks had their status downgraded.

The credit ratings agency Moody's has slashed its assessments of 15 major world banks - among them RBS, Barclays and Lloyds in the UK and JPMorgan, Goldman Sachs and Citigroup in the US.

The downward move, which the agency announced it was considering in February, reflects fears that the banks' growth and profit prospects are declining.

"I think there'll be some relief in the City that the downgrades weren't more severe because it's certainly possible that Moody's could have gone further."

Banks have been under scrutiny amid the pressure facing the industry from the effects of the global financial crisis.

Kleinman said the move is part of the agency's wider reassessment of the health of banks.

The major ratings agencies have rushed to downgrade banks across the Continent in recent months, particularly as the eurozone's problems have intensified.

A cut last month to the credit rating of Santander UK , the Spanish-owned lender, triggered speculation about the safety of customers' savings which was quickly dismissed by the bank.

The latest wave of downgrades will bring many of the other UK banks in line with Santander UK and there will be no resulting impact on the security of their savings.

On Thursday bank shares lost value in late trading on the FTSE 100, with RBS the biggest faller of the main UK banks.

UK symbols go on driving licences

British driving licences are to bear symbols of the United Kingdom, after 17 years when they have had only the European Union flag.

Prime Minister David Cameron said that having the blue-and-gold flag on the credit-card style licence was the kind of interference from Brussels which "infuriated" Britons.

He has acted to ensure that when new-style licences with microchips are launched in 2015, they will bear a British symbol alongside the EU flag.

The symbol could be the Union flag or the Royal crest or both, but the exact design has yet to be decided.

Aides said that when the first EU-wide licences were negotiated in 1996, the then Conservative government was planning to include a UK symbol, but that Labour did not insist on this when the documents came into operation in 1998.

The new cards will carry information about the holder on a microchip, so they can be updated to include changes of address without a new licence having to be issued.

With licences having to be renewed every 10 years, all UK motorists will have the new-style cards by 2025.

Mr Cameron said: "I think people do find the endless - as Douglas Hurd put it - European interference in the nooks and crannies of daily life infuriating. They know that our flag is the Union Jack and not the EU flag."

Transport minister Mike Penning said: "When plastic licences first came in, Labour decided not to include a national flag.

"Now they are due to be redesigned we are committed to including our national symbols because this is a Government flying the flag for Britain in every way we can."

Longer UK slump looms as manufacturing falters

British manufacturing output posted an unexpected fall in April, raising the risk of a longer recession and turning up pressure on policymakers to take action to boost economic growth.

The Bank of England shied away from injecting more cash into the struggling economy last week, but on Monday central banker Adam Posen called for further purchases of assets, focusing on loans to small and medium-sized companies.

Britain is still suffering from a slump that followed the 2007-2009financial crisis and slipped back into recession around the turn of the year. With the euro zone crisis hitting exports and making companies reluctant to invest and hire, economists fear another quarter of contraction.

The National Institute of Economic and Social Research, a leading think-tank, estimates the economy eked out 0.1 percent growth in the three months ending in May, but an extra public holiday in June could wipe out any increase in quarterly output.

Manufacturing output dropped 0.7 percent in April after a 0.9 percent rise in March, the Office for National Statistics said on Tuesday, disappointing hopes for an unchanged reading.

The wider reading of industrial output, which includes energy production and mining, was unchanged in April after a 0.3 percent drop in March, but also below forecasts.

"Given that the euro zone crisis has intensified since April and recent manufacturing surveys have been very weak, it seems likely that the industrial sector will remain a drag on overall GDP growth for some time to come," said Samuel Tombs, economist at Capital Economics.

Adding to a gloomy picture, the outlook for the British housing market worsened as the euro zone crisis deepened and sales took a temporary hit from the expiry of a tax holiday, while growth in permanent job placements slowed in May and employers said they expected to take on fewer new staff in the months ahead.

In another reminder of how closely Britain's economic fortunes are linked with those of continental Europe, the Society of Motor Manufacturers and Car Traders said the country could produce a record 2 million vehicles in 2015 provided demand from the euro zone held up.

COLD APRIL

Chancellor George Osborne warned on Sunday the crisis in the euro zone was killing off the recovery in Britain, and even members of his own Conservative party have called on him to take stronger action to boost growth.

But Osborne's hands are tied by his pledge to erase the country's huge budget deficit, which is still around 8 percent of GDP, although the coalition government has promised to come up with further steps to unlock infrastructure spending.

Hopes of an early end to the recession had already been dented by a PMI survey showing the manufacturing sector shrank at its fastest pace in three years in May as orders nosedived.

The surprise drop had triggered speculation the central bank would restart its asset purchases, but the BoE held back as concerns over high inflation outweighed growth worries.

"The thing the BoE can do something about is the weak underlying manufacturing activity," said Alan Clarke, economist at Scotiabank.

"That was worryingly weak even before the manufacturing PMI fell off a cliff," he said. "We should brace for a bit more weakness in the months ahead."

Industrial output was dragged down in April by a drop in the manufacturing of basic pharmaceutical products and preparations, as well as in the category of other manufacturing and repair.

A 13.6 percent monthly jump in electricity and gas output during the coldest April since 1989 was offset by a 6.4 percent fall in oil and gas extraction as a North Sea platform was closed after a gas leak.

(This story is refiled to add name of NIESER)

(Additional reporting by Fiona Shaikh; Editing by Catherine Evans)

©Reuters

Rochdale Grooming Case Is 'Tip Of Iceberg'

The "sadistic, violent and ugly" sexual exploitation of children is happening all over the country, according to the United Kingdom's deputy children's commissioner.

In evidence to MPs at the Home Affairs Select Committee , Sue Berelowitz listed shocking examples of abuse she had discovered as part of an in-depth study of the problem.

"What I am uncovering is that sexual exploitation of children is happening all over the country," she told the cross-party committee.

"In urban, rural and metropolitan areas, I have hard evidence of children being sexually exploited. It is very sadistic, it is very violent, it is very ugly."

Focusing on London as an example, she drew on individual cases she and her team had uncovered.

"There are parts of London where certainly children expect to have to perform oral sex on line-ups of boys, up to two hours at a time from the age of 11.

At times, Ms Berelowitz's evidence appeared to shock MPs. She said it was "quite common" for girls to be lured via internet chat rooms to meet a 'friend'.

The victims would then be met by groups of boys and gang raped in a park.

"Then another group of boys come, they take her to another part of the park and she is serially raped again. I wish I could say to you that such things are uncommon but I'm afraid they are quite common."

Ms Berelowitz was appearing at the select committee hearing in which MPs are looking specifically at cases of child exploitation and grooming in Rochdale following the conviction of nine men in April.

During the gang's trial at Liverpool Crown Court it emerged that the men, who are of Pakistani and Afghan origin, had plied the five girls with fast food, drink and drugs so they could "pass them around" and use them for sex.

The abuse happened in and around Rochdale in 2008 and 2009 and centred on two takeaway restaurants which are now under new management.

One 13-year-old victim fell pregnant and had the child aborted. Another teenager recalled being raped by two men while she was so drunk she was vomiting over the side of the bed.

Ms Berelowitz said she agreed when committee chairman Keith Vaz MP said the Rochdale case appeared to be the "tip of the iceberg".

"As one police officer who was the lead in a very big investigation in a very lovely, leafy, rural part of the country said to me: there isn't a town, village or hamlet in which children are not being sexually exploited," she said.

"The evidence that has come to the fore during the course of my inquiry is that that, unfortunately, appears to be the case."

The chief constable of Greater Manchester Police and two top councillors from the local council also appeared at the hearing.

Chief constable Peter Fahy was asked whether his officers were slow to investigate the Rochdale cases because they feared a backlash from the large Asian community in the area.

"If there is a feeling of a reluctance in police action that was not because of any feeling of fear about community tensions or political correctness," he said.

But he told the MPs that looking at sexual offences as a whole, "Asian men do not feature disproportionately".

"If you look at this kind of offence [grooming], on the streets, then clearly Asian men do feature disproportionately."

The leader of Rochdale's Labour-run council , Colin Lambert, said that race was by no means the whole story.

"If their clear statement is that the crime was committed because of the Asian community, then I strongly disagree with them, because it's too easy to badge a crime.

"It happens right across all our communities. In terms of badging it as an Asian crime, that's wrong. There are issues in all communities."

'Weddings Under Threat From Gay Marriage'

The Church of England has said it could be forced to stop conducting weddings on behalf of the state if gay marriage is legalised.

It said Government plans to introduce same-sex marriage would lead to a clash between its law - that marriage is between a man and a woman - and that of Parliament.

It also claimed said several "major elements" of the proposals had not been thought through properly and were not legally "sound".

The Rt Rev Tim Stevens, Bishop of Leicester, said the Church of England had been supportive of civil partnerships when the legislation was introduced eight years ago.

"We continue to be supportive of the gay community and want to see that inclusion in our society increased and developed," he said.

"I think the difficulty we have here is the substitution of equality for uniformity, that is to say that there can be no distinction at all between men and women."

Under the current law, anyone who is resident in England has a legal right to marry in his or her Church of England parish church irrespective of religious affiliation and the minister of the parish is under a legal duty to conduct the marriage.

The Government's consultation on gay marriage closes on Thursday.

The Church of England's highly critical response will add to pressure on David Cameron, who has spoken out in support of gay marriage.

Mr Cameron has come under fire from supporters of the proposals for allowing a free vote amongst Tory MPs to avoid a rebellion over the issue.

But other Tory critics have said they view the proposal as a Liberal Democrat policy distracting the Government from bigger challenges.

Ben Summerskill, chief executive of Stonewall, which campaigns for gay rights, said: "There's manifestly no evidence that the recognition of long-term same-sex relationships has any impact on the institution of marriage for heterosexuals.

"It seems odd that the Church of England should be obsessing about a few thousand gay couples once again when there are currently three million children in Britain living in single-parent households."

A Home Office spokesman said: "The purpose of the equal civil marriage consultation is to enable us to listen to all views, including those of all religions.

"We welcome the Church of England's response and we will be carefully considering all points of view before publishing the outcome of the consultation later in the year."

©SkyNews

Cameron: 'Thousands of jobs' to be created in Norway energy deal

Thousands of jobs will be created and billions of pounds invested into the UK energy sector thanks to an agreement on closer co-operation with Norway, David Cameron said.

David Cameron has met Norwegian Prime Minister Jens Stoltenberg. Credit: Sang Tan/PA Wire

Mr Cameron was speaking as he arrived in Oslo for talks with his Norwegian counterpart Jens Stoltenberg on a two-day visit which will also take in discussions with energy companies from both sides of the North Sea.

A new UK-Norway energy partnership will deliver closer co-operation between the two countries on affordable long-term gas supply, as well as two-way investment in oil and gas exploration and the development of renewable technologies, said Mr Cameron.

David Cameron said "Affordable, secure energy from trusted and reliable partners is critical to this and there is no stronger energy partnership than between Britain and Norway.

Tomorrow we will take this vital relationship to the next level with a new UK-Norway energy partnership.

This will mean more collaboration on affordable long-term gas supply, more reciprocal investment in oil and gas and renewables, and - underpinning all of this - a set of major new business deals creating thousands of new jobs and adding billions to our economies"

UK Credit Rating cut to AA-minus

Rating agency Egan-Jones cut the credit rating for the United Kingdom on Monday to AA-minus with a negative outlook from AA, the latest in a string of European sovereign downgrades from the agency.

"The over-riding concern is whether the country will be able to continue to cut its deficit in the face of weaker economic conditions and a possible deterioration in the country's financial sector," Egan-Jones said in a statement.

"Unfortunately, we expect that the UK's debt/GDP (ratio) will continue to rise and the country will remain pressed."
The United Kingdom currently has a AAA rating from both Standard and Poor's and Fitch Ratings and an Aaa rating from Moody's Investors Service.

The economy contracted by 0.3 percent between January and March and growth in the second quarter is endangered by the mounting worries about the survival of the euro.

Egan-Jones has recently cut the sovereign ratings for Italy and for Spain, in each case citing the weak economy and banking sectors.

(Reporting by Luciana Lopez; Editing by James Dalgleish)

UK retail sales slide at fastest pace in 2 years in April

Retail sales fell at their fastest monthly pace in more than two years in April, after a record drop in fuel sales and a weather-related drop in clothing sales, official data showed on Wednesday.

The weak start into the second quarter highlights the ongoing weakness of the economy and may raise speculation about another cash boost from the Bank of England.

The Office for National Statistics said retail sales volumes fell 2.3 percent on the month - its biggest drop since January 2010 and more than twice as fast as forecast. The fall mo re than reversed an upwardly revised 2 percent rise in March.

On the year, sales fell 1.1 percent - confounding economists' forecasts for an annual rise of 1.0 percent.

The ONS said the monthly decline was driven by a record drop in fuel sales following panic buying of fuel in March that had resulted in petrol stations being unable to restock in time in April.

Record rainfall in April meanwhile depressed sales of clothing and footwear, which fell at its sharpest monthly pace since June 2008.

Business surveys had already indicated that the retailers struggled in April, though the CBI survey had also shown that retailers were more confident about the month ahead.

However, with inflation still outpacing meagre wage increases and the euro zone crisis still denting confidence, many Britons remain reluctant to increase spending.

Recent news from major retailers has painted a negative picture of the retail sector's performance.

Britain's biggest clothing retailer Marks & Spencer slashed its sales growth forecast on Tuesday, signalling it expects consumer spending to remain weak as the government focuses on cutting debt and the economy struggles to grow.

Last April record temperatures and an extra holiday for the Royal Wedding boosted retail sales but this year April was Britain's wettest since records began, which is likely to have weighed on this year's figures.

©Reuters 2012

UK vows annual $110 million to post-2014 Afghanistan

Britain will provide 70 million pounds ($110 million) a year to fund the Afghan armed forces after British combat operations end in Afghanistan in 2014, the defence ministry said on Wednesday.

"The UK contribution of 70 million pounds per annum to the funds to support the Afghan National Security Forces will make Afghanistan a safer and more stable country and protect our own national interests," said Defence Secretary Philip Hammond.

"This contribution underlines our commitment to a stable and secure Afghanistan after 2014 and I look forward to discussing with other like-minded countries the contributions they will make," he said in a statement from Brussels.

The funding would contribute to a $4 billion fund that the international community is putting together to ensure that Afghan forces can maintain national security. The first payment of 70 million pounds would be made in 2015, the ministry said.

Hammond was in Brussels to attend a meeting of NATO defence and foreign ministers where financing for Afghanistan was on the agenda.

(Reporting by Sebastian Moffett; Editing by Mark Heinrich)


©Reuters

Report: UK Basic Wage Lower Than In 2004

The national minimum wage for British workers is set to be lower for workers in real terms than it was nearly a decade ago, according to a new report by The Resolution Foundation .

The Report said that October's planned 11p an hour rise to £6.19 was the third successive below inflation increase.

 Professor Alan Manning of the London School of Economics

Written by Professor Alan Manning of the London School of Economics, said that while recent caution on increases was justified, the impact of the minimum wage had now "stalled".

Resolution Foundation senior analyst James Plunkett said: "After 13 years of detailed studies into its impact, the benefits of the national minimum wage are now beyond doubt.

"It has boosted wages for some of the poorest paid people in the country and helped to make sure work pays, without causing job losses.

"The question now is what role it can play in the future to raise living standards even further."

Professor Manning added: "The minimum wage is one of the most popular policies of modern times but in some sense it's been a victim of its own success.

"Given the scale of the challenge now facing living standards, it might be time to think about more radical options for reform.

"For example, we could consider introducing a higher minimum wage for workers aged over 30 who are more likely to have families to support, or for London and the South East.

James Plunkett

Secretary to the Commission on Living Standards

"We could also do more to show that big companies in some sectors could afford to pay more than the legal minimum."

A spokesman for the Department for Business, Innovation and Skills said: "It is important that we have a national minimum wage that provides the necessary protection for the lowest paid workers, while at the same time not pricing people out of the labour market.

"The rates are recommended to Government each year by the independent Low Pay Commission (LPC) who base their analysis on extensive evidence and a thorough consultation process."

:: The LPC lists the 2004 minimum adult hourly rate as £4.85

UK invests £60 million in climate research centre

The UK government pledged 60 million pounds ($95 million) to support the Met Office Hadley Centre's Climate Programme until at least 2015 to keep Britain at the forefront of climate science research.

British Climate change minister
Greg Barker speaks in front of a new
interactive Google Earth map showing the impact
 of a rise in temperatures on Earth,
 in London July 14, 2010. REUTERS/Paul Hackett

The Met Office Hadley Centre is one of the world's leading climate change research centres. Largely funded by the UK government, it informs and advises on climate science issues.

"This investment will significantly improve their capacity to produce the ground-breaking robust evidence for which they are internationally renowned," UK Energy and Climate Change Minister Greg Barker said in a statement on Wednesday.

The government said it had committed almost 50 million pounds to the centre's research and climate modelling programme until 2015 and another nearly 11 million pounds for new supercomputer capacity and hardware.

Many UK science and research institutions have seen cuts in funding over the past couple of years as the government seeks to reduce the UK's deficit. ($1 = 0.6314 British pounds)

(Reporting by Nina Chestney, editing by Jane Baird)

©Reuters

Boat Race swimmer slams elitism

The swimmer arrested after bringing the Oxford-Cambridge Boat Race to a dramatic halt has defended his anti-elitist stance.

Trenton Oldfield said he had been privately-educated for four years but left and went to a state school because he "couldn't stand the elitism".

The annual contest on Saturday was dubbed "possibly the most dramatic Boat Race in history" after the wet suit-clad swimmer was spotted in the vessels' path and the competition had to be restarted almost half an hour later.

Oldfield, who lives in a run-down block of flats in Myrdle Street, east London, has been charged with a public order offence and released on bail.

The 35-year-old posted a series of messages on Twitter today, saying: "With the severe deficit in democracy new sites of protest unfortunately have had to be found" and "if its jail time, so be it".

He added: "Still waiting for someone to show me when elitism (seeing oneself above another) hasn't lead to oppression and tyranny?"

The drama of Saturday's race continued when the blade of an Oxford oar broke and the crew's bowman Alex Woods collapsed at the end and was taken to hospital. Crew member Roel Haen said Dr Woods had now been released from hospital.

He wrote on Twitter: "Our bow-man and hero Alex Woods was released from the hospital this morning and is doing well."

Oldfield, an Australian who studied contemporary urbanism at the London School of Economics and says he is a Fellow of the Royal Society of Arts, has a website called Elitism Leads to Tyranny. He replied to a barrage of messages from both supporters and detractors.

Oldfield will appear at Feltham Magistrates' Court on April 23 charged with a Section Five offence under the Public Order Act, said Scotland Yard.

©Press Association

Does the far-right in Europe pose a growing threat to democracy?

The next generation of European terrorists could emerge from the growing ranks of far-right groups becoming disillusioned with elections, researchers have warned.

The English Defence League hosted a rally in Denmark last weekend in a bid to draw together anti-Muslim groups from across Europe in a new far-right alliance.

The English Defence League was admired by Anders Behring Breivik (Copyright: Rex)

The gathering was declared a flop, outnumbered 10 to one by counter-protesters, but experts believe these organisations could become breeding grounds for would-be terrorists and have called for greater efforts to be made to track their activities.

Right-wing extremist violence has been on the increase across mainland Europe in recent years with attacks in Norway, Germany, Spain, Czech Republic and Italy. 

Anders Behring Breivik murdered 77 people and injured a further 151 in his attack in Norway last July. A manifesto he posted online before his killing spree railed against multiculturalism and Islam.

Breivik’s document praised the EDL and claimed he had met leading members during a trip to London. 

Norwegian right-wing extremist Anders Behring Breivik (right) (Copyright: AFP)

In November German police uncovered a neo-Nazi terrorist cell linked to the murder of nine immigrants and a policewoman. The group had operated across the country for years undetected.

The discovery plunged Germany into a state of shock and authorities are now facing calls to ban the right-wing National Democratic Party.

In Italy, in December a trader from Florence with links to a far-right movement killed two Senegalese street vendors and injured another three before turning the gun on himself. 

The violence from the far-right has rocked mainland Europe but a recent study in the UK revealed that 40% of BNP supporters believe armed conflict between racial or religious groups is justifiable.


The study was carried out by Matthew Goodwin, an expert in extremism from the University of Nottingham, who has told Yahoo! News that far-right rhetoric is becoming increasingly combative and provocative. 

“These groups are now operating in a perfect storm in terms of a recession, local cuts, austerity, the increased salience of Islam, it’s a far more fertile climate,” he explained.

“That’s coinciding with many groups starting to share a consensus that the ballot box didn’t really work out over the last ten years.

He added that in some areas of the north of England groups had even targeted businesses and homes. 

“We’ve not seen this kind of action before,” he said.

Elod Novak, parliamentary member of Hungarian far-right party Jobbik, burns an EU flag during a demonstration against …

Support for the far-right also extends to countries in the former Eastern bloc. In Hungary, groups like Jobbik have managed to take 46 seats in parliament to become the third biggest party.

The Czech Republic recently claimed to have more than 4,000 active neo-Nazis while Euro 2012 hosts Poland and Ukraine are making special preparations to ensure the growing ranks of skinhead hooligans don’t pose a threat to visiting fans.

The violence has extended to far-left groups who have been attacked in Spain and the Czech Republic and even Russia where anti-racist groups claim hundreds have died since 2005.

These developments have led to calls for greater research to fully understand its implications. 


“It’s difficult to say it’s a trend because we simply don’t have reliable comparative data across Europe,” said Mr Goodwin.

He said a lot of resource had gone into examining groups such as Al Qaeda but far less had been directed towards understanding the far-right.

“We’ve been a little bit complacent, we’ve tended to be dismissive of the far-right – they’re very difficult organisations to research,” he added.

Despite this he warned that there is still potential in the UK for this growing movement to spill over into acts of violence. In 1999 former BNP member David Copeland began a campaign of terror that killed three people and injured 139 in a series of nailbomb attacks across London.

“We certainly have the potential, at the moment there are around 20 individuals who are serving long sentences for planning would-be acts of violence inspired by far-right ideologies,” Mr Goodwin stated.

“People are still very sceptical in the UK, people think the far-right is very disorganised, fragmented and chaotic. It is precisely because of those reasons that we want to watch that movement a little more carefully.”

“When you don’t have a viable outlet for grievances you open up the potential for people feeling they have no other option.”

©Yahoo News 2012

Cameron Running Government Of 'Chums', Finds Mail On Sunday Poll

Most voters believe David Cameron is running a "government of chums", according to a new poll.

Nearly two thirds of adults think members of the Prime Minister's inner circle are there because of who, rather than what, they know, research for the Mail on Sunday found.

David Cameron Leads A Government Of
'Chums' According To A Poll On Sunday

The accusation Mr Cameron packs his Government with "chums", a claim backed by Conservative former Cabinet minister

Norman Tebbit earlier this week, has also struck a chord with the public, according to polling firm Survation.

It found six out of 10 people believed it to be an accurate description.

Mr Cameron's privileged upbringing also remains steadfast in the minds of voters.

When asked to pick from two photographs - one showing the PM in his Oxford University Bullingdon Club days and another of him dressed in jeans drinking a pint of beer in a pub - which identified the "real David Cameron" the student picture was selected by 63% of those surveyed.

Four out of 10 believe Mr Cameron is a "snob" while nearly three quarters of adults believe the Conservative Party is out of touch.

Three times as many voters would rather have dinner with Mayor of London Boris Johnson than Mr Cameron.

More than a quarter of voters backed shadow chancellor Ed Balls as the man who would get the best bargain at a car boot sale while just 13% backed Chancellor George Osborne.

But the results are also disappointing for Labour, which sees it on 35, reducing its eight-point margin over the Tories from two weeks ago.

©Huffington Post

Campaign To Save Britain's Pubs Is Launched

A fightback against the increasing number of British pub closures is under way.

Camra, the Campaign for Real Ale , has launched a new initiative called Community Pubs Month.

The aim is to re-establish the pub at the centre of community life and persuade landlords around the country to look at different ways to attract new customers.

Spokesman Martyn Herbert told Sky News: "The days where you just open the doors and people would walk in for a drink or a meal have gone really. 

"People need to be drawn to the pub, so you have to be very imaginative."

Camra says 4,500 British pubs have had to close their doors in the past four years.

Attempts have been made to reopen some, but not all with success and currently around 16 pubs a week are failing.

If the trend continues we could see 40,000 local pubs disappear by 2060.

At the Pheasant Inn at Toddington, Gloucestershire, farm animals are on display in the car park. 

It forms only one part of the pub's efforts to bring in more families.

Landlord Sam Keeley said: "We offer as many community events as we possibly can.

"We have got the sheep on display, we have ducklings from the local farm and we are offering a free minibus service to our customers.

"If they want to come and have a drink and meal they don't have to worry about getting an expensive taxi fare home. We are also opening a food store adjacent to the pub."

Camra blames part of the pub closure problem on the big pub companies and their policies with tenants.

Robin Carter is bucking the trend at the Royal Union, a free house in Cheltenham.

His business is booming, but he is aware of the pressures some landlords are under.

"I am lucky enough to own the freehold of this pub but I had leases with the large pub companies in the past. It does make it very difficult to be successful. 

"I think one of the reasons for that is the pub companies give pubs to people who have the money and they don't really care whether that person is going to be successful there."

The power of the big pub companies is only one factor affecting the future of the British pub.

Many that do survive may be unrecognisable to the real traditionalists.

Racism warnings 'fell on deaf ears'

Warnings of racism at Scotland Yard have fallen on "deaf ears" for more than a decade, a top policeman said as eight officers were suspended from the force.

Superintendent Leroy Logan, of the Black Police Association, said he was "disappointed" by the Met's apparent failure to take effective action following years of feedback from black communities.

He spoke after 10 complaints - relating to 20 officers and one member of police staff - were referred to the police watchdog. The referrals came just days after Scotland Yard vowed to get to the bottom of "very damaging" footage of one officer apparently racially abusing a man and another allegedly assaulting a teenage boy last summer.

Supt Logan, a founder member and former chairman of both the London and National Black Police Association (NBPA), said while race relations had improved since a 1999 report accused the force ofinstitutional racism, there had been a recent deterioration in attitudes.

Warnings over racism in the Met have '
fallen on deaf ears', according to a black police chief

Citing a need to "root out the bad boy cops," he said race relations had dropped down the agenda. But he said the issue had been raised yearly by youths on the NBPA's community engagement programme.

"Every year since 2001, the young people have been saying how they believe they are being dealt with disrespectfully, not shown enough dignity, casual racist comments were being used," he said.

The officer, who has more than 30 years of practical policing experience, added: "You would think these casual racist comments would be long gone and here we are and they are still coming up." And he said the force now needed to "get its act together", adding: "The police service isn't in a good place."

In total, eight officers and one member of staff at the Yard have been suspended. Pc Alex MacFarlane has been temporarily stripped of his duties after a recording was made of a suspect being called a "n*****". The arrested man, named as Mauro Demetrio, 21, from Beckton, east London, was arrested on suspicion of drug driving but no action was later taken. He recorded the abuse on his mobile phone.

It emerged that another officer, reportedly with Pc MacFarlane when Mr Demetrio was abused, was also placed on restricted duties after allegedly being seen kicking a 15-year-old black boy to the ground and kneeing him. Met Deputy Commissioner Craig Mackey has warned there could be further referrals to the watchdog.

Elsewhere, four police officers have been temporarily stripped of their duties in Northern Ireland following the discovery of racist and sectarian text messages.

©Press Association

Second Arrest After Teenager Stabbed To Death

A second man has been arrested on suspicion of murder after a 17-year-old boy was stabbed to death near a pub in Hastings, East Sussex.

The 41-year-old suspect, who has not been named, is from the Bexhill area.

Police are already questioning a 31-year-old man from Rye who was arrested yesterday.

Man Held After Teenager Stabbed To Death

The teenager was knifed twice in the chest and although paramedics fought to save his life, he died at the scene.

Police have said the stabbing did not appear to be a random attack.

Emergency services were called to the scene near The Shah pub in Mount Pleasant Road at around 3.20pm and the street and surrounding areas were sealed off while inquiries were carried out.

Police also appealed for anyone with information about the stabbing to come forward.

Superintendent Trevor Botting, head of crime and operations for East Sussex, said: "This is a tragic incident and one that has shocked the local community. Our thoughts are with the victim's family, who understandably are devastated by the events..."

A South East Coast Ambulance spokesman said the teenager was treated for two stab wounds to the chest.

A Sussex Police spokesman said: "Paramedics fought to save the boy who had been stabbed in the chest, but sadly he died."

:: Anyone with information is asked to contact Sussex Police on 101 , quoting Operation Chinook, or Crimestoppers anonymously on 0800 555 111 .