Fewer Town Centre Shops Closing Their Doors

Town centre shops shut at an average of 18 a day during the first half of 2013, reflecting continuing economic and evolving social pressures on the high street.

However, the closure rate fell from more than 20 during the same period last year, according to the report from accountants PwC compiled by the Local Data Company (LDC).

It highlights the continuing change in the make-up of the high street - with a declining number of women's fashion stores and camera shops as consumers' demands change.

Charity shops, betting shops and cheque cashing outlets picked up the slack, the study suggested.

Video and photography outlets - following the insolvencies of Blockbuster and Jessops respectively - suffered most, while women's fashion was hit by intense competition from major chains and online offerings.

The study of 500 UK town centres showed 3,366 outlets closed in the six-month period, compared with 3,157 openings, a net reduction of 209 shops.

This was an improvement on the net reduction of 953 over the first half of last year.

Coffee shops and hearing aid outlets were among those increasing, the research showed, as were convenience stores as large supermarket groups move into the sector to bolster their market share.

Mike Jervis, insolvency partner and retail specialist at PwC, said: "Upticks in areas such as cheque cashing and pawnbroker reflect a society where a sizeable part of the population is forced to turn to these types of borrowing for basic needs."

Matthew Hopkinson, director of the LDC, added: "The good news is that the significant decline in chain retailer numbers in town centres in 2012 is slowing down.

"That said, closer examination of the data shows the significant ongoing decline of traditional shops, with food, beverage and entertainment taking their place.

"The pressure from online competitors, supermarkets and out-of-town providers will only increase," he warned.

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eBay And Argos Strike 'Click & Collect' Deal

eBay and Argos have joined forces to offer a "Click & Collect" service as retailers rush to cash in on the growth of online shopping.

At least 50 merchants using the online marketplace will participate in a trial of the service, which will enable eBay customers to collect their goods from a choice of 150 Argos stores.

The companies said the trial - which is expected to last six months - would deliver what customers wanted in terms of choice, convenience and speed as a study reported a continuing decline in store numbers on the UK's high streets.

Its statement cited research from Econsultancy that 40% of UK shoppers used some form of Click & Collect service over Christmas 2012.

Devin Wenig, the president of eBay said: "At eBay we continue to find new ways to connect buyers and sellers.

Argos has been transforming itself towards a stronger online offering

"Traditional retail isn't going away, it is transforming. Smart retailers are innovating, re-imagining the store and what it means to shop."

John Walden, managing director of Argos added: "Few companies move as many products as effectively as Argos through a national network of local stores, served by friendly and well-trained colleagues.

"Having pioneered Click & Collect in the year 2000, it now accounts for around a third of our business and continues to grow.

"eBay, an innovator in digital and leading online marketplace connecting sellers and consumers, is already a strong partner with Argos and a logical partner for the trial."

John Walden and Devin Wenig see strong demand for 'click & collect'

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VW Camper Van Nears End Of The Road

It carried hippies through the 1960s, hauled surfers in search of waves and serves as a workhorse across the developing world, but the long journey of the Volkswagen (VW) Camper van is coming to an end.

The company is to cease production in Brazil - the last place in the world still producing the iconic "bus" as it is known - at the end of the year.

VW said it had decided it could not change production to meet new laws being imposed in the South American country which meant all new vehicles must have air bags and anti-lock braking systems from 2014.

While output will halt in Brazil, over 10 million Volkswagen Transporter vans were made globally over the past 63 years and they remain popular because of their retro look and the "back-to-basics" driving experience they offer compared with modern vans.

Surf's up! The van is a familiar sight on coastlines world-wide

Damon Ristau, director of the documentary The Bus, which follows VW fanatics and their affections for the machine, said: "The van represents freedom.

"It has a magic and charm lacking in other vehicles. It's about the open road, about bringing smiles to people's faces when they see an old VW van rolling along."

Perhaps nothing with a motor has driven itself deeper into American and European pop culture than the VW, known for its durability - but also its tendency to break down.

Van lovers say its failures only reinforce its charm. Because its engine is so simple, it's easy to fix, imparting a deeper sense of ownership.

Many owners redesign the interior space to suit their needs

The van made an appearance on Bob Dylan and Beach Boys record album covers, among many, though in music circles it's most closely linked to the Grateful Dead and the legion of touring fans that followed the rock group across the US, the machines serving as rolling homes.

Steve Jobs is said to have sold his van in the 1970s to buy a circuit board as he built a computer that helped launch Apple.

The vehicle is also linked to the California surf scene, its cavernous interior perfect for hauling boards.

But in poorer regions like Latin American and Africa, the vehicle doesn't carry the same romantic appeal.

Yusef Islam is among celebrities to use the van for PR purposes

It is used in Brazil by the postal service to haul mail, by the army to transport soldiers and by funeral directors to carry bodies.

It serves as a school bus for children, operates as a group taxi and delivers construction materials to building sites.

Brazilians convert their vans into rolling food carts, setting up on street corners for working-class lunchtime crowds.

In Brazil it is known as the "Kombi," an abbreviation for the German "Kombinationsfahrzeug" that loosely translates as "cargo-passenger van."

Still running: owners love the camper van for its durability

Production in Germany was halted in 1979 because the van no longer met European safety requirements, meaning its future was dependent on operations in South America.

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MPs To Summon Rothschild To Mining Row Probe

Nat Rothschild, the City financier, is to be summoned by MPs to aid a probe into the governance of London-listed companies following a string of scandals involving overseas mining groups.

Sky News understands that Mr Rothschild, who engineered the arrival of Genel Energi and Bumi Resources on the London Stock Exchange, is to be asked to appear before the Business Select Committee in autumn.

A number of MPs on the Committee believe that hearing from Mr Rothschild, who stepped down from the board of Bumi last year, will be essential if they are to make recommendations aimed at avoiding repetitions of the accounting and governance problems which beset the Indonesian coal miner.

Other resources groups, such as ENRC of Kazakhstan, have also been afflicted by bitter legal and boardroom rows which have culminated in slumping share prices and disappointing returns for ordinary investors.

It is unclear whether Mr Rothschild, a Swiss resident, has already been contacted about a potential appearance before the Committee.

Its inquiry into the extractive industries sector, which was announced in July, set a deadline of earlier this week for written evidence submissions and expects to begin oral evidence sessions late next month.

An appearance from Mr Rothschild would provide the financier with an opportunity to explain the meltdown in relations between himself and the Bakrie family with whom he struck a deal to bring Bumi to the London market.

Bumi's shares have been suspended for months amid accounting concerns and an increasingly messy divorce settlement between the two groups of shareholders.

"We want to know what the corporate governance concerns are that are raised by the number of extractive industries companies listed in the UK," said one committee member.

"We need to find out whether there are reputational risks for the UK and its financial institutions in being a centre for such businesses."

Mr Rothschild, whose father is Lord Rothschild, another prominent City investor, could not be reached for comment.

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Free Wi-Fi Hotspots Allow Adult Content

By Becky Johnson, Sky Correspondent

More than half of free wi-fi hotspots in the UK allow unfiltered access to adult content, prompting calls for tighter restrictions.

Researchers went into 179 cafes, restaurants, hotels, retailers and public spaces in Birmingham, Manchester and London, and attempted to log on to websites that are legal, but have explicit content.

The study found 30% of cafes and restaurants have no filtering in place to prevent access to pornographic sites, while 20% fail to restrict customers from accessing online sex dating websites.

In addition 53% do not restrict online stores selling knives and swords, and 80% granted full access to drug-related content.

Graeme Coffey from mobile security firm AdaptiveMobile, who carried out the research, said: "For every parent across the UK this report will come as an unwelcome surprise.

"In the last two years there have been two convergent trends: a big increase in public wi-fi or 'hospitality wi-fi' and greater access to smartphones, gaming consoles and tablets with a wi-fi capability, the kind of device a child could have.

"Most people will instinctively block adult content when it comes to filtering, but what these results show is that we should also be looking at content related to drugs and violence which are just as harmful but frequently overlooked."

Seamus Kelly, the father of two teenagers, was surprised to find out the cafe he visits in Manchester's Northern Quarter has unrestricted internet access.

He told Sky News: "I think in some ways the biggest issue is not knowing what they're looking at.

"If it's at home you might have a certain amount of control over the system, but when it's out not only do you not have control but you've also got absolutely no idea what they may or may not be coming across and it is quite worrying."

Outside a cafe in south Manchester a group of 15 and 16-year-olds told Sky News they have all had smartphones from the age of 13 and frequently use wi-fi to go online.

They admitted they know people who use sites their parents would not allow them access to.

Earlier this year David Cameron backed a campaign by children's charities calling for a ban on adult content on all public wi-fi.

John Carr is among the world's leading authorities on children's and young people's use of the internet.

He told Sky News: "Virgin, O2 and Sky already block access to adult content and the other major wi-fi providers in the UK - BT,  Arqiva and Nomad - have announced their intention to do the same by the end of this year.

"There is also some talk about developing a 'kitemark' to allow shops, hotels, trains, buses that provide wi-fi access to confirm that they provide a filtered service."

A Department of Culture, Media and Sport spokesperson said: "The Government is committed to protecting children online which is why we have been working closely with the major Internet Service Providers, who have already put filters in place anywhere children are likely to be to block pornographic content.

"The main providers cover 90% of all internet connections in the UK and this report shows that our approach is working and we are ahead of many other countries in protecting children online."

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Thousands Of Pubs And Restaurants Cut Prices

Thousands of pubs and restaurants across the UK are lowering their food and drink prices - for one day only.

Up to 40 leading businesses are involved in the stunt, including the pub chain JD Wetherspoon and Pizza Hut, with up to 15,000 outlets in total said to be taking part by trimming their prices by 7.5%.

The move is part of a Europe-wide campaign - led by French businessman and lobbyist Jacques Borel - to persuade governments to reduce levels of VAT on food and drink in the hospitality sector.

In the UK, that would involve cutting VAT from 20% to 5% to give it tax parity with supermarkets.

JD Wetherspoon chairman Tim Martin wants a level playing field

The industry suggests that the taxman is missing out, arguing that more could be raised in tax from making meals out more competitive at a time of constrained family budgets.

The hospitality sector says tax parity would mean higher employment - helping arrest the decline in pubs and restaurants and prompting further investment to assist economic recovery.

Mr Borel estimates that 670,000 jobs could be created in the UK by reducing the 20% VAT burden to 5%.

The issue has long been championed by JD Wetherspoon chairman, Tim Martin, who warned earlier this month that the pub industry faced an uncertain future.

He told Sky News then: "I am pleased to report another year of progress, with record sales, profit and earnings per share, despite having paid £551.5m in taxes.

"It is unsustainable to have far higher taxes for the pub industry than those for supermarkets.

"Already, 10,000 pubs have closed and many others are suffering, through insufficient investment.

"In particular, there should be VAT equality for pubs, restaurants and supermarkets," he said.

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Post Office Dispute: Christmas Strike Threat

A union is threatening industrial action at post offices into the Christmas season unless a row over jobs, pay and closures is resolved.

The Communication Workers Union (CWU), which is locked in a separate dispute with Royal Mail over privatisation, issued the ultimatum as it confirmed a fresh strike affecting hundreds of Crown post offices.

CWU members at Crown post offices in England, Wales, Northern Ireland and most of Scotland will walk out on Monday, followed by a strike in a handful of branches in Scotland on Tuesday, the union said.

It will be the 12th round of industrial action since Easter, while staff are also taking other forms of action including a sales ban on financial products and services.

Dave Ward claims staff are paying for bosses' bonuses with their jobs

The union is opposed to plans to franchise or close 75 Crown offices, the larger sites usually found on high streets.

Dave Ward, CWU deputy general secretary, said: "If the Post Office thinks this dispute will simply fade away they are sadly mistaken.

"Our members are fiercely opposed to the company's plans to close and franchise offices, slash jobs and impose a pay freeze.

"The company's plans are to downgrade the network, reduce services to local communities and hit jobs in the network. There is no mandate for this course of action and customers across the country are appalled at the reckless attitude of the Post Office towards these public services.

"We have tried talking to the Post Office about costs and efficiencies, but this is a company which made £94m profit last year and paid significant bonuses totalling £15.4m primarily to senior managers. This can't be paid for by cuts to frontline jobs and services, it's simply not right.

"Next week's strike and the continuing sales ban activity will continue into the Christmas period unless management see sense and negotiate a fair deal for Crown office staff."

The union said the strike will affect up to 4,000 staff in 372 offices.

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Libor Scandal: ICAP Fined Amid Criminal Probe

The London-based brokerage ICAP has been fined £55m and told three individuals will face criminal charges in connection with the Libor rate-rigging scandal.

The financial penalties, previously reported as imminent by Sky News, were confirmed by the company - headed by former Conservative Party Treasurer Michael Spencer - moments before news of the charges emerged.

The City watchdog, the Financial Conduct Authority (FCA), imposed £14m of the total fine while US regulator the Commodity Futures Trading Commission (CFTC) secured £41m.

Eric Holder confirmed the criminal charges

The CFTC found that ICAP brokers, including one known as "Lord Libor", helped fixed the rate for a period of at least four years.

It also highlighted various email conversations including one in which a Ferrari was offered as an apparent bribe.

In its later statement announcing criminal charges, the US Justice Department outlined its case against three brokers it alleged were part of the manipulation of Libor.

The men were named by authorities as former ICAP employees Daniel Wilkinson and Colin Goodman from England and Darrell Read - a New Zealand national.

Each is accused of conspiracy to commit wire fraud and two counts of wire fraud and face a maximum 90 years in jail if convicted.

US Attorney General Eric Holder said: "By allegedly participating in a scheme to manipulate benchmark interest rates for financial gain, these defendants undermined the integrity of the global markets.

"They were supposed to be honest brokers, but instead, they put their own financial interests ahead of that larger responsibility and as a result, transactions and financial products around the world were compromised, because they were tied to a rate that was distorted due to the brokers' dishonesty."

A separate investigation by the UK's Serious Fraud Office into the setting of the Libor rate is continuing.

The Financial Conduct Authority confirmed a civil fine settlement

In its statement on Wednesday, after confirming the civil fine, the FCA said ICAP's misconduct involved a "significant number of brokers (including two managers) and occurred over a number of years between October 2006 and November 2010."

The misconduct included, the FCA said, brokers colluding with traders at UBS to manipulate the (Japanese Yen) JPY Libor rates for the benefit of the traders.

The statement said it involved brokers deliberately disseminating incorrect or misleading Libor submission levels and "one broker receiving corrupt bonus payments (at the instigation of one manager) as a reward for his assistance in manipulating the JPY Libor rates."

Confirmation of the civil settlements against the interdealer brokerage - which essentially acts as an intermediary in deals between bank traders in the global financial system - takes the aggregate penalties from the scandal to date to more than £1.7bn.

The £55m penalty is a relatively modest sum when viewed in the context of the fines imposed on three other financial institutions which have settled with regulators over Libor.

Barclays paid just over £290m, Royal Bank of Scotland just over £390m and UBS just over £1bn.

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Osborne Takes Legal Action Over EU Bonus Cap

By Mark Kleinman, City Editor

George Osborne is to take legal action against Brussels over the European Union's proposed move to cap the bonuses of thousands of British-based bankers.

Sky News has learnt that Treasury officials have been considering the move for several months.

A decision to formally challenge Brussels in the courts over measures to restrict bank bonuses echoes a similar legal action launched by the Treasury in April over the EU's proposed financial transactions tax (FTT).

The details of the Treasury's complaint are unclear, although banking industry sources said they had been told that a legal challenge had been lodged by the Government with the European Court of Justice.

The move is politically risky for the Chancellor, who is likely to be portrayed by Opposition politicans as a defender of high pay for wealthy bankers at a time when Ed Miliband, the Labour leader, is positioning himself as a defender of ordinary consumers.

Mr Osborne is expected to say that the proposed cap – which would impose a ceiling on bonuses of twice the base salary of a bank employee – risks undermining the City's status as a global financial centre and the objective of creating stronger and safer banks.

He may find himself insulated from the most trenchant political attacks by virtue of the fact that his position is endorsed by independent regulators.

The Prudential Regulation Authority (PRA), an arm of the Bank of England, is also opposed to the cap, arguing that it risks increasing instability in the banking system by driving up fixed costs.

About two-thirds of those affected by the cap are said to work in the UK

British-based lenders have argued against the cap, saying that they will have little choice but to inflate basic pay if they are to compete with rivals unaffected by the new restrictions.

Andrew Bailey, the PRA's chief executive, echoed their opposition at a Treasury Select Committee hearing earlier this year.

He said that the cap would "reduce the discipline in the system but it won't reduce overall remuneration" and warned that it "will institute an unhelpful culture of banks spending their time finding ways to get around the rules".

Without a legal challenge, UK regulators have little scope to overturn or ignore the cap despite the fact that regulators and many Westminster-based politicians agree that it will be potentially counter-productive.

"There will certainly be an expression of the sentiment that the cap is likely to result in an increase in fixed costs which could expose banks to some risk when profitability is low or negative, as there would be less scope to adjust pay," said a source familiar with the PRA's thinking.

Douglas Flint, the widely-respected chairman of HSBC, has paved the way for Europe's biggest lender to increase salaries in time for the introduction of the new ceiling.

The source said the text of the consultation paper had not yet been finalised, but denied that the PRA would allow a wider array of payments, such as pension contributions, to count towards executives' base salaries when calculating the multiple allowed for bonuses.

Some senior bankers say the regulator has appeared to be receptive towards that idea during recent discussions.

The British Bankers' Association has predicted that 35,000 bank employees around the world will be affected by the cap, approximately two-thirds of whom are based in the UK.

A Treasury spokesman declined to comment.

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Miliband Warns Energy Firms After Backlash

Ed Miliband has rejected warnings his plans for an energy price freeze if Labour regains power will spark blackouts.

The Labour leader told Sky News he was serious about ending the "blatant overcharging of millions" as he brushed off criticism about the pledge.

In a surprise move, Mr Miliband vowed on Tuesday to freeze gas and electricity prices for 20 months if he becomes prime minister in 2015.

He has also now written to the "Big Six" energy companies warning that they will be "part of the problem" unless they support the move.

Ed Miliband insists it is time to "reset the market"

Firms claim it could lead to energy shortages and power cuts as the industry is starved of the investment it needs and business chiefs have also been critical.

Shares in Centrica - British Gas's holding company - were down almost 4% in early trading, and shares in Southern Electric and Swalec owner SSE fell 3.6%.

Centrica chairman Sir Roger Carr said: "We are all concerned about rising prices and the impact on consumers, but we also have a very real responsibility that we find supplies to make sure the lights stay on."

Energy Secretary Ed Davey added: "When they tried to fix prices in California it resulted in an electricity crisis and widespread blackouts. We can't risk the lights going out here too.

"Fixing prices in this way risks blackouts, jeopardises jobs and puts investment in clean, green technology in doubt."

But Mr Miliband hit back, saying: "There are bound to be people coming up with scare stories ... California was a totally different approach."

Energy firms argue they need money to overhaul UK power stations

His plans would see a price freeze from 2015 until 2017 while the sector is reformed, with watchdog Ofgem axed, firms split into generation and retail arms and competition increased.

The Labour leader insists it is time to "reset the market" and told the industry he would not help guarantee funding for its development if it does not fall in line.

In his letter, he wrote: "I appreciate that you will not welcome all aspects of this package but it is my firm view that without resetting the market we are not going to see the public consent that is required to underpin the scale of taxpayer backed guarantees for which you have argued.

"I am prepared to make the case for sharing the risks of such investment, but that must be against the backdrop of a market that customers believe works for them.

"You and I know that the public have lost faith in this market. There is a crisis of confidence. We face a stark choice.

"We can work together on the basis of this price freeze to make the market work in the future. Or you can reinforce in the public mind that you are part of the problem not the solution."

Mr Miliband announced the 20-month price freeze in his conference speech as he sought to show only his party could tackle a "cost-of-living crisis".

Pitching the next election as a battle between Tories representing the "privileged few" as ordinary families and small businesses suffer, he repeatedly declared: "Britain can do better than this."

"I will lead a government that fights for you," he vowed as he insisted he would relish a contest with David Cameron based on leadership and character.

Labour claims the freeze, to last from May 2015 until January 2017, would save the typical household £120 and an average business £1,800.

Consumer group Which? has said it will "give hope to the millions worrying about how they can afford to heat their homes" but the CBI warns it will damage Labour's "pro-enterprise credentials".

The energy sector's umbrella group, Energy UK, accused Mr Miliband of "posturing to no purpose" and warned the freeze could have drastic consequences.

Chief executive Angela Knight said: "Freezing the bill, may be superficially attractive, but it will also freeze the money to build and renew power stations, freeze the jobs and livelihoods of the 600,000 plus people dependent on the energy industry and make the prospect of energy shortages a reality, pushing up the prices for everyone."

SSE claimed price freezes would lead to "unsustainable loss-making retail businesses" and suggested the Government's energy policy costs be put into general taxation instead of on bills.

"This would wipe £110 off the average person's bill and shift the cost away from those who can't afford to pay and on to those who can," a spokesman said.

Simon Walker, director general of the Institute of Directors, said: "We should think very, very carefully before piling more distortion on an already grossly distorted energy market. Price controls only add greater uncertainty to companies who we need to take the financial risks of energy investment.

Matthew Sinclair, chief executive of the TaxPayers' Alliance, said: "When the government fixes prices, it always ends in a disaster for consumers.

"Ed Miliband is sticking by the green taxes and expensive subsidies that drive up the price of energy, so at best this new policy would just store up massive price hikes for another day. At worst it could create a crisis and force the government to bail out the sector."

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