Miliband Offers Answer To 'Decade Of Decline'

Ed Miliband is to accuse David Cameron of condemning the UK to a "decade of decline" by sticking to austerity plans.

In a speech this afternoon, the Labour leader will insist public anger with the coalition is growing in the wake of a no-change Budget - but he will also concede that his party still has work to do to convince voters there is a real alternative.

Mr Miliband will present a list of policies that he claims would kick-start growth and make the economy fairer, including bank reform, infrastructure investment and a 10p tax rate.

He will contrast the platform he is fleshing out with George Osborne's financial package this week.

"We are five years on from the financial crisis of 2008," he will tell a 'people's policy forum' in Birmingham, which is billed as representing political opinion from across the West Midlands.

"We are in the slowest recovery for 100 years. And it is you who are suffering. Wages are frozen. Prices are rising. Living standards falling.

"Yet the Chancellor offered no change in the Budget. He offered more of the same. Can you imagine another five years of this?

"Low growth. Living standards squeezed further. You paying the price. A lost decade Britain cannot afford. A decade of national decline."

Mr Miliband will accuse the Government of "shrugging their shoulders", saying ministers have "run out of ideas", and he will urge voters to give him a chance to change the way the country is run.

"Over the last two and a half years since I became Labour leader, I have sought to understand why people left Labour," Mr Miliband will say.

"From banking regulation to immigration to Iraq, I have been clear about what we got wrong. But as I listen to people around Britain I also know they are increasingly disappointed with this Government.

"People all over Britain have lost confidence in David Cameron's ability to turn Britain around. But let me clear with you. I know that however discredited, divided and damaging this Government is, I will not assume that their unpopularity will mean people turn to Labour.

"Indeed, many people will believe that the failure of this Government means they should give up on politics altogether."

Mr Miliband will say he cannot offer "overnight answers" or that things will be easy, but he will pledge to seek an economic recovery "made by the many, not just a few at the top".

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Cyprus Leaders Head To Brussels For Talks

Cyprus Bailout: Threat To Savings

Updated: 7:36am UK, Saturday 23 March 2013

By Ashish Joshi, Sky News Correspondent

Finally late into Friday night - an agreement on Plan B, meaning Cyprus has moved one giant step towards securing a Brussels bailout.

It includes a solidarity fund pooling together state assets and the granting of power to the Government to control bank capital.

The latter move is to prevent a run on the banks when their doors finally open on Tuesday.

There will also be a restructuring of the country's banks and a savings tax on Cypriot savers.

The details of the tax have still to be finalised, but the framework is in place.

It could mean savings over 100,000 euros held in Bank of Cyprus accounts being taxed up to 20%, according to one source close to the negotiations.

The same source said if that proposal is rejected there will be a plan to impose a tax of around 10% on all Cypriot bank accounts over 100,000 euros.

The threat of savers being hit hangs over the heads of people like Loizos Michael.

The 60-year-old tailor worked hard for 35 years, building up a good business.

He was looking forward to a wealthy retirement. Not anymore. Times are hard.

Speaking from his small tailor's shop in central Nicosia, Mr Michael said: "With the banks being closed, it is hard because I don't have a credit card and so cash flow is a problem.

"Even filling your car with petrol needs thinking about.

"Cypriots have always been workers by nature and nobody could have imagined that unemployment would be so high.

"This has hit us hard in the pockets."

Cyprus is weathering a storm - the likes of which this Mediterranean island has never faced in her young history.

Mr Michael said he knew things were getting bad, but expected solutions to be found to avoid ordinary people having to suffer.

"I expected something better. But now, it looks like the problem has been brewing for some time," he said.

"There used to be some people talking about the crisis, but now everyone's talking about it.

"I think things are harder now than just after the war. After the war of '74 people could still find work. Now, there is just no work so people have no money. What can we do?"

In the 1990s, Cyprus boasted a dynamic, booming economy, but it grew and unchecked.

An overbloated banking sector exposed to Greek debt has crippled the country's economy.

Now people like Loizos Michael must pay the price. He and the rest of Cyprus will soon find out exactly how much that is going to be.

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Weather: Snow And Rain Continues To Batter UK

Britain is continuing to endure extreme winter storms as snow, rain, high winds and freezing temperatures affect large swathes of the country.

The severe weather, which has already claimed the life of one woman, has been extending south, hitting areas around London and Kent, where there could be 2cm-5cm of snow on higher ground, forecasters said.

The Met Office has issued a yellow warning for the public to be aware as a slow-moving band of rain, sleet and snow makes its way across many central and northern parts, and the south and east.

There may be 5-10cm of snow at lower levels and further significant snow accumulations are likely on hills, with continued drifting and blizzard conditions in strong southeasterly winds. 

A yellow warning has been issued for the pubic to be alert

Tens of thousands of homes in Northern Ireland, Scotland and Cumbria remain without power, while many roads are impassable and runways have been forced to close.

In Northern Ireland, 6ft snow drifts left emergency crews struggling to get through but electricity returned to 5,000 homes overnight.

But about 35,000 customers were still cut off and teams were out again from first light to continue with network repairs, Northern Ireland Electricity said.

Birmingham Airport earlier suspended all arrivals and departures due to heavy snowfall but later resumed flights and added some may be subject to delay or cancellation.

Leeds Bradford Airport said flights were not currently operating due to the adverse weather conditions. There was also disruption at East Midlands Airport.

The AA has warned motorists that even short journeys may be difficult, and there could be a repeat of the scenes in southern England last week when hundreds of drivers were stranded in their cars overnight.

The South West, which was hit by heavy rain and floods on Friday, is expected to have a relatively dry day, with only one flood warning, meaning flooding is expected, in place.

A further 88 flood alerts, where flooding is possible, remain for that region as well as the South East, the Midlands and Anglia.

A woman died when this house in Looe collapsed

Sky weather presenter Isobel Lang said: "Southeast England, East Anglia, the Midlands, north Wales, northern England, Northern Ireland and much of Scotland can expect snow today.

"High ground will be worst affected with some heavy snow at times with drifting in the strong winds and also blizzards.

"Low levels could see 5-10cm, two to four inches, of snowfall today although amounts will probably be lower across London."

She added: "Southwest England, south Wales and southern Ireland looks largely dry and relatively mild with some brighter spells.

"A few showers may nudge into the extreme southwest later. Tonight will stay dry with a frost forming in places."

The bad weather has also hit the sporting calendar, with racing at Doncaster and Newbury called off and some football games in England and Scotland postponed.

The rain was a particular problem on Friday in Cornwall, where a landslide, thought to have been triggered by torrential rain, smashed through a block of flats, partially collapsing the building.

Emergency crews found a woman's body after picking through debris at the Veronica flats in Looe on Friday night.

The body is believed to be that of Susan Norman, who was in her 60s and had been unaccounted for, according to the police.

Meanwhile, Electricity North West said about 1,500 properties in Cumbria remain without power but repair work was being held back by road closures, preventing access to some communities.

The company said it was considering using a helicopter to transport engineers to the areas to which power could not immediately be restored.

A complete blackout was reported for between 15 and 30 minutes across Belfast on Friday evening.

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Gas Stockpile Drain Prompts Price Rise Fears

Britain has drained its gas reserves so much after weeks of bad weather that fears have been raised of a looming spike in energy prices.

Households have been forced to increase their heating usage as the freezing weather continues, pushing the demand for gas to 20% higher than normal in March.

According to The Times Britain's gas stocks were just 10% full on Thursday night, compared to 49% this time last year.

County Durham after the latest batch of snow

Energy prices will soar if Britain is forced to make up the shortfall by importing more liquefied natural gas from elsewhere, an energy expert has warned.

He added Britain would struggle to cope if a technical problem caused an unscheduled North Sea gas field to shut down.

Andrew Horstead, of the energy consultancy Utilyx. told the newspaper: "There is immense pressure on the existing infrastructure.

"We are almost maxed out from imports through pipelines. The big concern is that there is very little flexibility left in the system."

It was so warm last March people flocked to beaches and parks

Britain is more vulnerable than other countries to gas shortages because of its limited storage capacity, which holds just 15 days' worth of energy supplies.

A Department of Environment and Climate Change (DECC) spokesperson told Sky News: "Storage levels are low at the moment - as you'd expect towards the end of winter - and the UK gas market is tight.

"But the market is responding as it is designed to do - gas prices are rising and supply is being maintained accordingly.

"Gas storage would never be the sole source of gas meeting our needs, so it is misleading to talk purely about how many days' supply is in storage.

Scrub fires near Newport in Wales last March

The gas fears come as the head of the energy giant SSE warned of the "very real risk" of the lights going out in Britain.

Ian Marchant said the Government was underestimating the problem, as he announced plans to cut back on power generation at five sites because the stations are either uneconomic or coming to the end of their lives.

He said: "It appears the Government is significantly underestimating the scale of the capacity crunch facing the UK in the next three years and there is a very real risk of the lights going out as a result."

He said the energy watchdog Ofgem had recently expressed real concern about the reduction of the UK's generation capacity margin that would follow expected plant closures in the next few years, predicting a 1-in-12 chance of the lights going out.

Mr Marchant added: "It is unlikely that the majority of the reductions in generation capacity and the delays to new investment we have announced today will have been included in this analysis.

"(This) highlights that the situation is likely to be even more critical than even they have predicted."

The DECC spokesperson added: "We are in close contact with National Grid, who are able to step into the market to source gas and increase incentives on gas suppliers if they think there is a risk of a supply shortfall."

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Bruce Springsteen Shares Stage With Young Boy

Bruce Springsteen invited a young fan on stage to help him sing at a recent concert in Australia.

The 11-year-old sent the crowd wild as he confidently stood his ground next to The Boss and belted out the lyrics to Waiting On A Sunny Day.

The fan even had a red cap tucked in the back of his pants as an ode to his idol.

After impressing Springsteen, he was invited to do a stage slide with the veteran rocker.

The boy went on stage at  Springsteen's second concert in Brisbane, part of his first tour of Australia in 10 years.

Music journalist Sean Sennett said on the official Springsteen website: "One lucky boy ... mimicked Bruce's look from the cover of [Born In The USA] - with a red cap in his back pocket.

"It earned him a spot on the microphone during Waiting On A Sunny Day, which was only bettered by Bruce suggesting the pair embark on a knee slide in the song's final bars."

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Snow And Floods: Major Disruption Across UK

Severe weather warnings have been issued across much of the country with large amounts of snow expected in many parts after a night of rain caused major flooding.

Up to 40cm (16ins) of snow was expected over high ground in the Midlands, north and east Wales and northwest England, with 10-15cm (four to six ins) in lower lying areas.

Up to 30cm (12ins) of snow was predicted for Northern Ireland across the hills of counties Antrim and Down, with high winds leading to blizzard conditions.

The snow was expected to continue into Saturday with the Met Office saying another 5-10cm (4-6ins) was possible in some areas of central Britain.

It prompted the Met Office to issue two amber warnings for snow, meaning that the public in some places should be prepared for "severe disruption, particularly to transport and power supplies".

Police are investigating whether a woman is trapped inside a house in Looe, Cornwall, after part of the property collapsed during heavy rainfall overnight.

Amber alerts have been issued for snow and rain

Devon and Cornwall Police say Susan Norman, who is in her 60s, has not been seen or heard of since 6pm yesterday.

Neighbours said they heard "windows popping" at the three-storey property under the pressure of a torrent of surface water which had been washed down the road behind the building, which is split into three flats.

Devon and Cornwall Police duty inspector Graham Claybourn said: "The property and adjoining properties were evacuated this morning, everybody was accounted for.

"However, one lady has not been accounted for. She lives in the ground flat."

Police this morning used a sniffer dog in the search for Ms Norman.

Up to 50,000 homes and businesses in Northern Ireland are without power because of storm force winds and snow. Around 60 schools have also been closed.

George Best City Airport closed its runway for a while but later announced it had reopened and flights from Belfast International Airport were disrupted.

Leeds Bradford International Airport has suspended all flights due to "adverse weather conditions".

Snow in Derwen (Pic: Geraint Evans)

The airport has told passengers: "We advise you contact your airline or tour operator and check the status of your flight before arriving at the airport."

Heavy overnight snow has caused severe traffic problems and school closures across West Yorkshire.

Among the main roads affected in the region are the A1(M) between the end of the M1 and the A62 junction, between Leeds and York, where snow has closed a lane, the M62 near Brighouse, where another lane has been closed due to the weather and the A66 across the Pennines which has been closed in both directions between the A685 and the A1.

Dozens of schools also closed across Yorkshire, Derbyshire and Nottinghamshire.

Shops and homes were flooded in Cornwall overnight, as the AA warned motorists even short journeys "can quickly turn bad".

In addition, there were 96 flood warnings in place across the country, with southwest England the worst affected.

Seventeen flood warnings, meaning flooding is expected, were in place, affecting Devon and Dorset.

And 79 flood alerts, where flooding is possible, were in place across the South East and Midlands, but the South West is likely to be the hardest hit.

Sgt Dave Opara, based in Plymouth, said: "There has been a considerable amount of rainfall across the force area."

Cornwall opened its dedicated control centre to deal with the volume of calls about flooding.

The worst flooding was reported to be around Newlyn in Cornwall

Newlyn, in the southwest of the county, was reported to be the worst affected area.

Newlyn resident Adam Gibbard said the river through the town had burst its banks and swept into the main street.

"This is the second time it has happened in three months and a lot of these properties are businesses who were just getting back on their feet," he told Sky News.

Sky's weather presenter Nazaneen Ghaffar said: "The snow will turn to sleety rain over north Wales and the north Midlands for a time, reverting to snow again later. Southern Britain and south-east Ireland meanwhile will see more heavy rain, bringing local flooding in the west where another 5cm, (2ins) are possible.

"There'll be more snow tonight, from around the M4 up into central Scotland and across the north of Ireland, while southern counties will have yet more rain. Saturday will see snow over central parts slowly fading, but there'll be a raw wind and it will stay near freezing away from the south-west.

"The average temperature for the month so far, combining day and night, has been around 3C, well below the long term average of 6C. It's highly unlikely to be record breaking (the coldest March on record was in 1962, at 1.9C), but it could well be the coldest for over 25 years."

Environment Agency spokesperson Pete Fox said the public can sign up for flood warnings and check the latest information on the Environment Agency's website, or follow us on Twitter at @EnvAgency.

Darron Burness, head of the AA's Special Operations Response Team, said: "It's going to be a real witch's brew of driving wind, rain and snow, which will inevitably cause disruption on the roads.

"Drivers should be well prepared as even short journeys can quickly turn bad."

The Local Government Association said council gritting and ploughing teams would be out in force to try to ensure main roads remained passable.

:: Send in your photos of the weather here

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Budget: George Osborne Defends Economic Plans

George Osborne has defended his Budget as he pointed to Cyprus and warned Britain's problems "could be a lot worse".

In an interview on Sky News, the Chancellor insisted the public understood he had to take tough decisions to secure the country's future.

"People know that it is a difficult situation out there but it is a situation that could be very much worse for Britain if we didn't take these decisions," he said.

New figures showing public borrowing down to £2.8bn in February - the lowest for the month since 2008 - provided a chink of light for Mr Osborne on Thursday.

But Labour continued to attack his "aspiration nation" Budget, warning it does not do enough to boost growth and questioning its central plan for a major new mortgage scheme.

Shadow chancellor Ed Balls said: "You could have people on very high incomes going into buy-to-let or buying a second home and getting a taxpayers' guarantee up to £600,000. The devil is in the detail there."

Appearing on Sky News, Mr Balls added: "The Chancellor said 'I will secure the recovery, I will keep the AAA credit rating'. It's all gone. It's a long hard road to nowhere with this Chancellor at the moment."

George Osborne on Sky News on Thursday

But Mr Osborne accused the Opposition of having no "serious economic alternative" and resorting to "personal abuse" instead of setting out its own plans.

He said: "It is a tough economic situation and of course if it is a difficult job dealing with that situation but it is a job the whole British people is facing at the moment.

"I think the British public understand there is not a simple or easy answer to our country's problems but just the painstaking work of putting right what went wrong."

MPs are debating the details of the Budget in the House of Commons today.

Central to Mr Osborne's plans are the moves to stimulate the housing market but his measures have sparked fears of a new debt-fuelled boom.

The Government is set to plough billions into boosting home ownership by underwriting the mortgages of hundreds of thousands of people.

Interest-free loans lasting five years and worth up to 20% of the value of new build homes under £600,000 will be available.

And from next January, taxpayers' money will be used as a guarantee for home buyers who can only pull together small deposits.

Mr Osborne claimed on Thursday that the measures would help boost the flat housing market and provide jobs in construction as new homes were built.

He insisted: "It doesn't mean a return to five or six years ago when you had those big 125% Northern Rock mortgages.

"It is just saying to people if you can get together a decent deposit, we are going to help you buy a home. People are being robbed of that at the moment because of the problems in our financial markets."

In his Budget, there were further tax breaks for drinkers, drivers and working parents.

There was a 1p cut in the price of beer as the beer duty escalator was also scrapped, and a planned fuel duty hike was cancelled.

Ed Miliband and Ed Balls condemned the Budget as "more of the same"

Small businesses will be boosted by a new employment allowance which will save employers £2,000 on their National Insurance bills.

And plans to raise the income tax threshold have been brought forward to 2014, meaning earnings up to £10,000 will be tax free.

But those announcements could not disguise the dismal economic figures and forecasts that showed the austerity era will last a decade.

Official growth forecasts for this year have been cut in half to 0.6% because the recovery is so weak, and next year's figure has also been downgraded.

The independent watchdog the Office for Budget Responsibility (OBR) also warned that the decline in borrowing seen in the first years of the coalition "no appears to have stalled".

Public borrowing predictions for every year to 2017/18 have been revised upwards, putting the total £55.7bn higher than it was just three months ago.

The OBR expects Britain to narrowly escape an unprecedented triple-dip recession, predicting a small increase in GDP in the first quarter of this year.

But debt is not set to fall as share of national income until two years after Mr Osborne's original 2014 target.

It is due to peak at 85.6% of GDP - equal to a massive £1.58tn - in 2016/17 - an increase of 6.4% on previous forecasts.

Labour condemned Mr Osborne as a "downgraded Chancellor" who was simply offering "more of the same" and some experts criticised him for not going far enough to boost growth.

Research for consumer group Which? carried out immediately after the Budget found 89% of voters backed the rise in the personal tax allowance and 87% supported the fuel duty move.

But it also suggested that a third of the public now feel less confident about the prospects of the economy this year, and 28% feel less confident about their own finances.

Some 59% said the Government should rethink its economic plan and 44% expect their personal finances to worsen over the coming year.

In another blow to Mr Osborne, hours after his Budget was delivered peers inflicted a major defeat on the Government over its "shares for rights" plan.

Former Civil Service chief Lord O'Donnell linked the plans to slavery and ex-Tory minister Lord Forsyth of Drumlean said they were "ill-thought through, confused and muddled".

:: Shadow chancellor Ed Balls will be among the guests on Jeff Randall Live on Sky News tonight at 7pm.

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North Korea Issues Fresh Threat To America

By Mark Stone, Asia Correspondent

North Korea has threatened to attack American airbases on the Japanese island of Okinawa and the Pacific island of Guam.

A statement by Kim Yong Chul, the spokesman of the Supreme Command of the Korean People's Army warned of "military actions".

"The US should not forget that the Anderson Air Force Base on Guam where B-52 bombers take off and naval bases in Japan and Okinawa where nuclear-powered submarines are launched are within the striking range of the Democratic People's Republic of Korea (DPRK) precision strike means," the statement read.

"Now that the US started open nuclear blackmail and threat, the DPRK, too, will move to take corresponding military actions."

The words mark the latest escalation in a lengthy stand-off as North Korea defies calls from the rest of the world to halt its dual nuclear and ballistic missile programmes.

North Korea has threatened an attack over B-52 drills

The American government has not yet responded to the threat.

British diplomatic sources speaking to Sky News from Seoul have said the UK Government "takes any threats seriously and there is some concern over the more harsh rhetoric coming from the DPRK".

However, the source insisted that there was no panic or alarm among diplomatic circles and that UK travel advice to South Korea remains unchanged.

The latest threat from North Korea is a direct response to a series of joint military exercises involving the US and South Korea.

On Tuesday, the US Air Force deployed its giant B-52 bombers from their base on Guam. The planes, which are capable of carrying and deploying nuclear bombs, flew sorties over the Korean peninsula as part of the military exercise.

The Pentagon in Washington confirmed the B-52 deployment. Spokesman George Little said the US wanted to underline its commitment and capacity to defend South Korea against an attack from the North.

Military guard posts of South Korea (front) and North Korea (far)

However, the flights were condemned by Pyongyang as "an unpardonable provocation".

"The US is introducing a strategic nuclear strike means to the Korean peninsula at a time when its situation is inching close to the brink of war," the North Korean statement added.

The North Korean military does have rockets capable of reaching both Okinawa and Guam.

The surprisingly successful rocket launch in December followed a trajectory similar to that which any strike against Okinawa would take.

The Pentagon has confirmed the B-52 deployment

Okinawa is 600 miles due south of the Korean peninsula. Guam is further away, to the east of the Philippines.

While Pyongyang has proved it has the range capability, it is not clear whether or not their missiles are accurate enough to hit a specific target. And the country does not yet have the ability to carry out a nuclear strike at this range.

Earlier this month, the UN imposed the toughest sanctions yet on North Korea.

Kim Jong-Un reacted with anger, threatening to attack America, South Korea and Japan. The young and unpredictable leader toured military units calling for them to prepare for 'all out war'.

Computers are seen down at the main office of broadcaster YTN in Seoul

Meanwhile, Wednesday's unusually large cyberattack in South Korea, which brought down banks and broadcasters for one hour, has been traced to China.

Experts in Seoul claim the simultaneous attacks all bore the same IP address which was traced to the Chinese mainland.

Many of North Korea's internet and computing operations are tied to China. There is no suggestion that the Chinese government had any involvement.

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Berlin: Helicopters Crash In Police Exercise

Two helicopters have crashed near Berlin's Olympic Stadium during a police exercise to thwart hooliganism, according to German media reports.

It is believed one person has died in the accident.

N-tv television and Bild newspaper said the helicopters crashed in snowy weather on Thursday morning.

According to AP, some 400 federal police officers were conducting a training exercise on dealing with football violence.

Federal Police spokesman Frank Brochert confirmed there "was an incident during an exercise" and that emergency crews were on the scene.

He had no details about the accident or whether there were any injuries or fatalities.

It is believed the collision occurred as the two aircraft approached a pre-arranged landing zone.

More follows...

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David Hockney Aide Death Cause Unknown

A post-mortem has shown "no obvious natural causes" for the death of David Hockney's personal assistant, police have said.

Dominic Elliott died in hospital on Sunday morning after he was taken ill at the world-famous artist's house in Bridlington, East Yorkshire, on Saturday.

A Humberside Police spokesman said: "A post-mortem was carried out on the body of 23-year-old Dominic Elliott yesterday at Hull Royal Infirmary mortuary and it showed no obvious natural causes for his death.

"Further tests will now be carried out, the results of which will not be known for some weeks.

"Mr Elliott's family has been fully updated by Humberside Police."

Mr Hockney's home in Bridlington, East Yorkshire

Officers are continuing to investigate how Mr Elliott became ill before he was taken to Scarborough Hospital by a friend.

Keen sportsman Mr Elliott worked as a personal assistant to the 75-year-old artist, setting up equipment and helping in his studio.

He was the subject of more than one Hockney portrait.

Humberside Police said earlier this week that the circumstances of his death were "not clear" but there was no sign of violence.

Hockney, who is not thought to be the friend who drove Mr Elliott to hospital, is said to be extremely upset by the death.

The Bradford-born painter is sometimes referred to as Britain's greatest living artist and is one of the most influential cultural figures of the last 50 years.

His famous works include A Bigger Splash and the portrait Mr And Mrs Clark And Percy.

As well as his detached house near the seafront in Bridlington, Hockney has homes in London and Los Angeles.

Mr Elliott was a well-known local sportsman and tributes have been paid to him by team-mates at Bridlington Rugby Club and Driffield Hockey Club.

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