Cabinet Reshuffle 2012

City minister Mark Hoban took up a new job in the work and pensions ministry, with Cameron drafting London Olympics organiser and former Goldman Sachs banker Paul Deighton into the Treasury as a minister responsible for economic delivery.

The Conservative leader also moved 72-year-old Justice Secretary Ken Clarke - a former chancellor - to a floating role with an economics brief.  Clarke's move, in effect a demotion for one of the most outspoken pro-Europe Conservatives, was cheered by the euro sceptics.

"The end of the coalition would have been the ideal reshuffle but, compared to where I thought we would be today, we are in a very much stronger position; you can see the Conservative-ness of this government," said Conservative lawmaker Peter Bone.

"We've seen a tilting towards a more Conservative cabinet."

Lib Dem David Laws, another respected economic brain, was brought in to a ministerial job, with a junior portfolio at the education ministry alongside a roving economics remit.

The biggest promotion came for former Culture Secretary Jeremy Hunt, who took over what he called the "huge task" of selling controversial plans for reforms at the health ministry to a sceptical public and medical profession.

Cameron switched Justine Greening from transport to international development, removing her from the debate over whether the government should build a third runway at London's Heathrow airport, bitterly opposed by residents in her nearby parliamentary constituency.

The move reignited speculation that a third runway - which the coalition has pledged to reject - could be on the cards.

"There can be only one reason to move her, and that is to expand Heathrow airport. We will fight this all the way," said Mayor of London Boris Johnson, a popular Conservative tipped as a future replacement for Cameron.

More Violence Erupts On Streets Of Belfast

Petrol bombs, stones, bottles and fireworks have been hurled at police after "serious disorder" broke out in north Belfast for a second night.

Police fired six baton rounds and used four water cannon at rioters after they came under attack in the Carlisle Circus area of the city.

Sporadic outbreaks of violence erupted in lower Antrim Road and Denmark Street, where a van was hijacked and pushed towards police lines.

Nine officers were injured, with three requiring hospital treatment, according to the Northern Ireland Police Federation.

Federation chairman Terry Spence praised the "bravery and courage" of the frontline officers, saying it was "in stark contrast to that of the cowardly thugs responsible for trying to murder them".

In a statement, the Police Service of Northern Ireland (PSNI) said: "Police are dealing with serious disorder in Carlisle Circus area tonight (Monday).

"Motorists advised to avoid the Carlisle Circus area of Belfast due to ongoing disorder."

The latest disorder followed 47 officers being injured in an attack by Republicans and Loyalists during a Nationalist parade in the same area of the city on Sunday evening.

Four officers were taken to hospital while 43 others were treated for various minor injuries.

PSNI chief superintendent George Clarke said of Sunday night's violence: "I am both angry and sad that my officers have been subjected to such significant attack."

Police have urged community leaders to hold talks before more marches, part of the traditional parade season, take place in Belfast later this month.

George Osborne Booed At Paralympic Games

Chancellor George Osborne was booed when he took part in a Paralympic medal ceremony on Monday night.

The Tory cabinet minister appeared on the big screen before a medal presentation in front of an 80,000-strong crowd in the Olympic Stadium.

He laughed nervously as jeers rang out around the packed arena, as he prepared to give gold to Tunisia's T38 400m champion Mohamed Farhat Chida.

The Government has been under fire from disabled rights groups for awarding a contract to assess "fit for work" assessments to Paralympic sponsor Atos.

Rallies have been staged by activists in the past few days in protests at tests which have been described as "damaging and distressing".

A clip of the awkward moment quickly became a viral hit on social media, with George Osborne's name trending worldwide.

In contrast, former Labour Prime Minister and Chancellor Gordon Brown was enthusiastically cheered when he took part in a medal ceremony in the aquatic centre.

Head Teachers In Legal Threat Over GCSE Marks

Head teachers threaten legal action after the exams regulator refuses to regrade GCSE papers.

The threat comes after watchdog Ofqual acknowledged that grade boundaries had been changed part way through the year but insists papers will not be remarked.

Unions say thousands of pupils missed out on the results they should have got.

In a statement, Russell Hobby, head of the National Association of Head Teachers said: "We will press for the report outcomes to be reconsidered and a re-grading to be carried out with the utmost urgency.

“To bring to an end the uncertainty over so many students' futures.

“There is still the potential for a legal challenge and we are working with other teaching unions to explore all options."

The Association of School and College Leaders (ASCL) said it was not "acceptable or practicable" to make the students resit exams.

It warned it could still begin a legal challenge against grade boundary changes on the grounds that it had disadvantaged certain groups of students.

Ofqual's report into the GCSE English crisis, released on Friday, found that January's GCSE English assessments were "graded generously" but the June boundaries were properly set and candidates' work properly graded.

But it said that it would not be "revisiting" the June grade boundaries because it would "contradict our responsibility to maintain standards over time and make sure results are comparable year-on-year".

Revisiting the January boundaries could mean lowering the grades of other students' assessments, which would lead to further concerns of unfairness.

Concerns mainly centre around pupils who were expected to get a C but instead got a D, and that this could affect their chances of getting into sixth-form college, or gaining an apprenticeship.

ASCL general secretary Brian Lightman said: "It is wholly unacceptable to leave the students and their teachers to pick up the pieces of a problem they did not cause.

“These changes implemented mid-year, without valid and reliable processes, must be reversed and arrangements put in place immediately to ensure that this does not happen again in future examination series.

"Many will already have left their schools and decisions about apprenticeships and further courses of study are being made now as term starts and enrolment in most schools and colleges is already under way."

Ofqual chief regulator Glenys Stacey said the regulator looked carefully at how GCSE English qualifications had been awarded this year.

"People were particularly concerned about the June grade boundaries. We have found that examiners acted properly, and set the boundaries using their best professional judgment, taking into account all of the evidence available to them."

The June boundaries have been properly set, and candidates' work properly graded, she added.

"The issue is not the June but the January boundaries. Again, examiners used their best judgment in setting these boundaries, but they had less data and information to work with."

Shadow education secretary Stephen Twigg said that Ofqual's statement did not address the situation and called for the Education Secretary to make a statement to MPs.

Overall, 719,000 submissions were made in the summer and 51,000 in January - about seven% of total entries.

:: The Department for Education said it would be discussing the situation with Ofqual in the coming days.

Ruling allows sex register appeals

Sex offenders can appeal against having to register with police for life from Saturday, despite concerns raised by a children's charity that they must "always be considered a risk".

Thousands of sex offenders will be able to apply to have their names removed after the Supreme Court ruled it was a breach of offenders' human rights to be put on the register for life with no review.

The Government has already expressed concern about the plans, with Home Secretary Theresa May saying "the minimum possible changes to the law" would be made.

Currently prisoners have to wait 15 years after being released from jail to be able to apply to be removed from the register. Saturday marks 15 years since sex offenders were first required to register with police.

Chief executive of the NSPCC Andrew Flanagan said: "This is a concerning day for our justice system. Sadly, we are told this legal ruling cannot be overturned but the NSPCC's view remains that paedophiles who have been put on the sex offender register for life must remain there as we can never be sure their behaviour will change.

"There is no proven or recognised 'cure' for adult sex offenders who abuse children and they must therefore always be considered a risk. We can only try to control and contain their behaviour through a combination of treatment and monitoring by the authorities if they are released back into the community.

"Physical and emotional harm caused by sexual abuse can damage children's lives. We will monitor the appeals process closely and will raise concerns if we believe the civil liberties of convicted sex offenders are being put before the protection of children."

The maximum number of sex offenders eligible for a review each year was estimated at 1,200 by the Government. Individual police forces will consider applications.

Plans were outlined by Mrs May last year to toughen up registration requirements for sex offenders after the Supreme Court ruling. They included having to tell authorities before travelling abroad even for a day, reporting if they were living with children and tightening rules to stop offenders avoiding registering after changing their name.

A Home Office spokesman said: "We are doing everything we can to protect the public from predatory sex offenders. That is why we have taken action to strengthen the law and close loopholes. The review process for offenders is robust and puts public protection first. It also prevents sex offenders from wasting taxpayers' money by repeatedly challenging our laws. Sex offenders who continue to pose a risk will remain on the register for life."

Paralympic jokes my job, says Boyle

Comic Frankie Boyle has defended his controversial comments about the Paralympics as "celebratory" and said he was just doing his "job".

He was criticised after joking that the Saudi Arabian team at the Games were "mainly thieves", referring to criminals being punished by having their hands removed for stealing.

In another message posted on Twitter during the opening ceremony, he said: "I'm going down to the blind football to shout that the referee's a deaf b******."

He told fans: "I'd say my Paralympic tweets are celebratory. I'll be joking about Paralympics same way I joked about the Olympics. That's my job yo."

He also said people should read the jokes and make their own mind up, adding they were "Celebratory, non discriminatory, pretty funny".

In 2009 Boyle was censured by the BBC Trust for comments about Olympic swimmer Rebecca Adlington, following her gold-winning success at Beijing the previous year.

His remarks, made during an edition of the Mock The Week TV programme, were ruled to be offensive but no further action was taken, which prompted her agent to complain about the "slap on the wrist" when Adlington had been humiliated.

Channel 4, which previously broadcast several of Boyle's shows including Tramadol Nights and The Boyle Variety Performance, distanced itself from the comic.

A spokesman for the Paralympics broadcaster said: "Frankie Boyle was tweeting from his personal account and not on behalf of Channel 4. He is not under contract and there are no shows planned with him."

Weak UK lending shows challenge for BoE credit scheme

 Lending to British businesses and consumers weakened further last month after the biggest fall in credit card borrowing in almost six years, highlighting the challenge faced by the Bank of England as it readies a new scheme to boost credit.

Despite more than 325 billion pounds of government bond purchases over the past three years, lending conditions remain tight for households and smaller firms with the economy back in recession since late last year, prompting BoE Governor Mervyn King to announce a new scheme in June to aid these sectors.

Some economists expect this Funding for Lending Scheme, which opened for business on August 1, to reduce the need for the Bank to buy gilts to stimulate the economy. But BoE official Paul Fisher warned on Wednesday that it would take more than a few months before the FLS takes full effect.

The most striking number from the BoE's July lending data was a 147 million pound net repayment of credit card bills -- the biggest fall in this type of lending since August 2006, when the 150 million pound decline was the biggest on record.

This drove a 220 million pound drop in overall unsecured consumer lending, the biggest since February, but arguably just as important are figures showing that lending to non-financial companies is 3.4 percent lower than a year ago.

"Overall there is little in these data to suggest a break from recent trends. Business lending continues to contract, while household sector lending is rising at a very modest rate," said BNP Paribas economist David Tinsley.

A bigger-than-expected 1.1 billion pound rise in mortgage lending to households helped counteract the fall in unsecured lending, and the pace of contraction in corporate lending seemed to be slowing.

But overall the figures dampen hopes of a strong rebound in economic activity in July after nine months of recession, and back economists' forecasts for British house prices to stay flat or fall slightly over the coming year.

FORECASTS SLASHED

The Confederation of British Industry slashed its economic forecasts for 2012 and 2013 on Thursday, predicting a 0.3 percent fall in output this year and a meagre 1.2 percent rise for next year, in line with the consensus on a Reuters poll of economists published on August 16.

A separate Reuters poll on Thursday showed that most economists expect the Bank to expand its quantitative easing programme of asset purchases once more in November, raising the target to 425 billion pounds from the current 375 billion.

BNP Paribas's Tinsley said the FLS - which offers cheap funding to banks and building societies if they increase lending to businesses and households - may ultimately contribute to a future BoE decision to halt gilt purchases.

"A few people have said the Bank won't do any more conventional QE and focus on the FLS. I think that is right, but I think it is too early for them (in November). That's a plausible thing for February," he said.

However, other economists doubts the FLS will work well, arguing that a lack of capital and a lack of confidence, not the cost of funds, are the main barriers to bank lending.

The European Commission's monthly economic sentiment index for Britain, which combines activity readings for manufacturing, services, construction, retail and consumer surveys, fell back to 91.5 in August from 94.6 in July.

"The current level suggests the economy is roughly stagnant," said Citi economist Michael Saunders. "There probably will be a technical rebound in activity in the third quarter, but this survey suggests that the UK has not experienced an 'Olympics bounce' in activity," he added.

(Editing by Hugh Lawson)

©Reuters