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Conservative Party Donor Switches To UKIP

Written By Unknown on Kamis, 02 Oktober 2014 | 00.11

By Jason Farrell, Senior Political Correspondent

A multi-millionaire businessman and long-term Conservative backer says he is switching his support to UKIP, Sky News can exclusively reveal.

On the day of David Cameron's conference speech, Arron Banks, who has previously made substantial contributions to the Tory party, said he had donated £1m to UKIP.

The donation was originally £100,000, but Mr Banks later said he had increased the amount after William Hague said he had never heard of him.

Mr Banks says he does not believe Mr Cameron will reform the EU and will not facilitate the UK's exit from it.

"I've supported the Conservatives for a number of years but have come to the realisation that only UKIP supports my views," he said.

He added: "Being a member of the EU is like having a first class ticket on the Titanic. Economically, remaining in the EU is unsustainable."

Video: UKIP Haunts Conservative Conference

His switch comes a day after veteran Conservative MP Bill Cash learned his son William had decided to stand as a UKIP candidate and was also appointed the party's heritage spokesman.

It also follows the weekend defection of the Conservative MP for Rochester and Strood, Mark Reckless, who became the second Tory MP to force a by-election by changing sides.

There had been rumours of another defection on Wednesday as Tory delegates look to Mr Cameron to set out his policies to take his party into the next general election.

Video: Osborne Warning Over UKIP Threat

There will be some relief that it is not another name from the Commons, but also disappointment that Mr Farage's party is getting a financial boost.

It was an ex-Tory party donor, Paul Sykes, who funded a major advertising campaign for UKIP ahead of its successful May European Elections.

Another cash injection from a former Conservative benefactor is not just a transfer of funds, but also a psychological blow for a party that prides itself on having the support of business leaders.

Video: Farage: Voters 'Want Change'

Mr Banks was the founder of Brightside group, one of the largest insurance brokers in the UK.

He said: "The Conservative Party try to sell us the myth that EU reform is achievable when frankly all Cameron can offer is tinkering around the edges."

His donation is one of the largest ever given to UKIP and will help fund their three upcoming by-election campaigns.

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  1. Gallery: Tory Party Conference: In Pictures

    The Conservative Party Conference has drawn to a close. Here are some of the highlights: Boris Johnson addressed delegates with a brick - and cracked a joke about "purring" at David Cameron's expense ...

  2. But of course Boris and Dave are close - as they proved with this touching stroll together

  3. It was not Mr Cameron but Ed Miliband who was the butt of most jokes. The best one was the one about him forgetting to mention the deficit in his keynote address to the Labour Party Conference last week

  4. It shifted some merchandise such as this hilariously named beer

  5. George Osborne started it in his speech, during which he invited voters to choose Dave, choose the Conservatives and choose the future

  6. But it did make him sound like Renton from Trainspotting. Everyone thought so

  7. Nigel Farage was the spectre at the feast. Four defections to UKIP - one MP, a donor and two others since the conference began

  8. The PM prepared for his big speech by asking delegates what they thought of him by posting message boards around the conference in Birmingham

  9. And spent some time with Samantha, his wife

  10. He posed for selfies with delegates

  11. And did not miss a hard hat, high-vis opportunity

  12. He was photographed memorising the chapter on the deficit ... in glasses and Union flag cufflinks ...

  13. ... as he prepared for the crowds in the main hall

  14. Where he gave some money away - tax cuts for the "hard-working"

  15. Got really cross about the NHS

  16. Then got clapped quite a lot

  17. Still, the Conservatives concluded that what Britain needs is an iron lady ...

  18. ...and here's Home Secretary Theresa May

Labour frontbencher Michael Dugher said: "David Cameron is haemorrhaging support and his authority is ebbing away. He can't control his party, who clearly have no confidence in his leadership."

Speaking to Sky News Leader of the House of Commons William Hague said UKIP lacked the "strength and depth" to be a reasonable proposition to lead the contry.

He said: "UKIP is entirely a one-man band."


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DVLA Swamped By Drivers As Tax Discs Ditched

The vehicle licensing agency has been swamped by motorists enquiries, as the traditional road disc is ditched for an electronic system.

The Cardiff-based Driver and Vehicle Licensing Agency (DVLA) said it was struggling to cope with what it said was "unprecedented demand".

A DVLA spokeswoman told Sky News: "We are currently experiencing unprecedented demand which means that some customers may be experiencing slow response times or having difficulty accessing the service.

"We are of course very sorry for any inconvenience and we are urgently investigating to improve service quality for the minority of our customers that are experiencing issues."

It said 270,000 enquiries were made on Tuesday, up 30,000 on the same day last year.

Video: Potential Car Insurance Savings

Motorists have reported lengthy queues on the enquiry line and slow or halting website access.

Tax discs have been placed on motorists' windscreen since 1921, but as of today they are no longer required.

Known officially as the vehicle excise duty (VED), the tax can be paid either online, over the phone or at post offices.

The Government said the new system has the potential to save the DVLA up to £7m annually in administration costs.

However, motoring groups have warned about the extra revenue-raising potential of the new system, while a survey has shown many drivers and riders are unaware of its implementation.

From this month, buyers of vehicles will no longer be able to use the remaining time to expiry paid for by the previous owner.

Buyers cannot take advantage of the remaining months and days of the car's existing taxed period and will need to renew the excise duty themselves.

Significant pre-renewal time for both discs and MOTs have long been seen as an added selling point for vendors.

New owners will need to renew the disc after purchase or classify it through a statutory off-road notification (SORN).

Motoring groups said they had received complaints from members that the Government can potentially "double tax" owners.

The RAC has also expressed concerns that there could be a spike in drivers on the roads without tax.

It said the possible scenario could mean Treasury coffers lose out on up to £167m annually, although the DVLA dismissed the claim and said there was no reason to expect a spike in tax evasion.

Automatic number plate recognition cameras and manual police checks of vehicles, which are already used to find uninsured drivers, is to be used to snare untaxed vehicles.


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EU Probe Slams Ireland Over Apple Tax Deals

A preliminary finding by the European Commission has found that Ireland provided potentially illegal state aid to tech giant Apple for more than 20 years.

It said it has doubts that two "sweetheart" tax deals agreed in 1991 and 2007 between Apple and Ireland are compatible with the internal market of the European Union.

In a statement, the European Commission said: "Accordingly, the commission is of the opinion that through those rulings the Irish authorities confer an advantage on Apple.

"That advantage is obtained every year and ongoing.

"At this stage, the commission has no indication that the contested measure can be considered compatible with the internal market".

Video: EU Gets Tough On Apple And Ireland

It added: "The commission's preliminary view is that the tax ruling of 1991 and of 2007 in favour of the Apple group constitute state aid."

The Irish government has already responded and said: "As this is an ongoing legal process, Ireland will not be commenting further on any individual aspects of this case."

Apple has had a base in Ireland since 1980 and has expanded in recent years, while authorities in Brussels have powers under state aid rules to impose large fines.

The commission can fine companies up to 10% of turnover and the ability to fine Ireland up to €1bn (£780m).

The inquiry found that in effect Apple ensured it had greater profitability in the areas in which their tax charge would be the most modest.

Baker Tilly senior tax partner George Bull told Sky News if the EU findings are upheld, Apple's tax liability may be recoverable from 2003 onwards.

According to reports, US-based Apple has built up an offshore cash pile of $137.7bn (£84.8bn) in Ireland.

The money cannot be repatriated to the US without being taxed, and instead the company has sought to buy back some shares held by investors.

Apple has denied any wrongdoing over tax rulings agreed with Irish officials in 1991 and 2007.

In a statement Apple said: "Apple has received no selective treatment from Irish officials over the years.

"We're subject to the same tax laws as the countless other companies who do business in Ireland.

"To continue that growth and the benefits it brings to the communities where we work and live, we believe comprehensive corporate tax reform is badly needed."

The commission is also investigating arrangements between coffee chain Starbucks and the Netherlands, and any deal between Luxembourg and car company Fiat.

On Monday, Chancellor George Osborne warned tech firms "that go to extraordinary lengths" to cut their UK tax bills will be hit with new anti-avoidance legislation.

He hinted of plans to raise "hundreds of millions" in revenue from the likes of Microsoft, Google and Twitter.


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The Lure Of Ireland For Global Tech Firms

By Pete Norman, Sky News Business

Although Apple has come under the EU microscope over its tax affairs, complex corporate structures have become a common accounting tool for savvy tech firms.

The European Commission's preliminary findings show it has doubts that two "sweetheart" tax deals agreed in 1991 and 2007 between Apple and Ireland are compatible with the "internal market" of the European Union.

The Californian tech giant has two subsidiaries; Apple Operations Europe and Apple Operations International, which have operated in Ireland since 1980.

And it created Apple Distribution International in 2009 and Apple Operations in 2010. It has at least three other subsidiaries, which are all based on a large industrial estate in Hollyhill, County Cork.

The site employs around 4,000 people and is the biggest employer in the city of Cork.

But the issue of so-called transfer pricing, or advance pricing arrangements used to shift tax liabilities to lower tax areas, has become a key issue for US politicians, the EU, the G20 and the Organisation for Economic Co-operation and Development

Rather than maximising profit in each country, transfer pricing can give a financial incentive to record high profit in low tax areas and low profit in high tax jurisdictions.

A Congressional Research Service report last year found that US multinationals reported earning 43% of their overseas profits in 2008 from Bermuda, Ireland, Luxembourg, the Netherlands and Switzerland.

This despite low levels of investment and domestic sales in those five locations.

It cited academic research indicating that the loss of tax to the US Treasury was between $30bn (£18bn) to $90bn (£55bn) annually.

But companies deny wrongdoing, and say they are simply working within existing legislation in the territories they operate in.

The issue has recently shot up the political agenda, and prompted campaigns from pressure groups such as UK Uncut.

Other US companies' tax structures have been highlighted by politicians, such as Westminster's Public Accounts Committee (PAC), including online retailers Amazon, Google and even coffee chain Starbucks.

Other tech companies also operate tax structures in Ireland - Google has at least three registered companies in Ireland. Microsoft has several more and first set up an Irish subsidiary in 1979.

Both Google and Facebook use a loophole known as the "Double Irish", which allows them to reduce their effective tax rate well below the official 12.5% corporate rate.

Twitter UK has no Britain-based directors and answers to Twitter International Company in Dublin.

London games firm King Digital Entertainment, maker of the Candy Crush Saga, is based in Ireland, listed in New York, but with its revenue-raising games websites based on the Mediterranean island of Malta.


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Windows 10: Return Of The Axed Start Button

Microsoft has unveiled its new operating system - Windows 10 - complete with the Start button menu it axed two years ago.

The new software was shown off at an event in Seattle, and will power Microsoft devices including smartphones, tablets, laptops and PCs.

:: What happened to Windows 9?

Microsoft's current operating system is called Windows 8, meaning Microsoft has passed on the expected name of Windows 9.

Microsoft executive Terry Myerson said the Windows 9 name "wouldn't be right" given Microsoft's attempts to consolidate all arms of the company under its One Microsoft strategy.

:: Did anyone predict Microsoft would jump straight to Windows 10?

Sort of. Tech website Infoworld reported the news last year - but as an April Fool's Day prank.

:: Why has the Start button returned?

The removal of the Start button - used to bring up a range of menus and dialogue boxes - was a controversial part of Windows 8.

As a result, some users found it difficult to navigate and businesses held off upgrading as a result.

:: What else is new?

The Start button returns along with the addition of a number of other features including multiple custom desktops, a revamped task view and floating desktop apps.

:: What kind of learning curve can I expect?

At the preview event, executive Joe Belfiore said: "We want Windows 7 users to feel like they upgraded from a Toyota Prius to a Tesla, but they don't need to learn a new way to drive."

:: How do I buy additional apps and software?

Windows has announced a universal store which will be used to purchase apps and software for all Microsoft devices.

:: What has happened to Microsoft's touchscreen philosophy?

Microsoft made a big deal at the release of Windows 8 about the importance of touch gestures across all devices. But the focus on that philosophy has now been ramped down.

:: When will it be released?

The release is scheduled for mid-2015, but further details have not yet been released.

:: What's the competition like?

Apple is currently putting the finishing touches to its OS X Yosemite edition which works on desktop and laptop devices.


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Reddit To Give Bitcoin-Style Currency To Users

Millions of dollars' worth of shares in online link-sharing website reddit will be divided between users in the form of a Bitcoin-style cryptocurrency.

The website - which describes itself as 'the front page of the internet' - has just finished a $50m (£30m) funding round.

All of the investors have agreed to set aside 10% of the round's proceeds to give back to the community.

Reddit chief executive Yishan Wong said the company was considering creating a cryptocurrency backed by the shares, which will be distributed based on a user's contribution to the site.

He said: "The investors have explicitly agreed to this in their investment terms."

The latest investors include PayPal co-founder Peter Thiel, actor Jared Leto, hip-hop star Snoop Dogg, and Mr Wong.

In a blog post, Mr Wong said reddit - founded in 2005 - had always operated "on a shoestring budget".

He added: "We've long been trying to find a way for the community to own some of reddit, because it is your contributions that help to anchor the site and give it strength.

"We think we've come up with a way. Led by Sam, the investors in this round have proposed to give 10% of their shares back to the community, in recognition of the central role the community plays in reddit's ongoing success.

"We're going to need to figure out a bunch of details to make it work, but we're hopeful. We'll have more specifics to share about it soon, but in the meantime we wanted to mention it here."

Cryptocurrencies are digital currencies which are not backed by a nation or bank. Bitcoin is the best-known and most valuable.


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Tesco Boss Orders HQ Staff Back To The Floor

By Mark Kleinman, City Editor

The new chief executive of Tesco has ordered thousands of head office staff to descend on stores in a pre-Christmas blitz aimed at restoring morale amid the grocer's £250m accounting crisis.

Sky News has learnt that Dave Lewis emailed staff at Tesco's headquarters and other corporate offices on Tuesday to inform them about an initiative that will include the company's top executives.

The programme, called 'Feet on the Floor' will require more than 4,000 employees to work one day every fortnight in a store selected from a list across the UK between now and Christmas.

Workers - including Mr Lewis and Alan Stewart, the newly arrived chief financial officer - will spend alternate Thursdays or Fridays in shops in an attempt to improve service during the busiest period of the year.

The time commitment imposed on head office staff is understood to have surprised some workers because of the scale of the task facing Mr Lewis and head office workers to rebuild investors and customers' confidence in the company during the coming weeks.

Retailers frequently send head office staff to work in their stores, although the scale of Mr Lewis's 'Feet on the Floor' programme is unusual.

Ironically, Philip Clarke, Mr Lewis's predecessor, who was ousted during the summer after presiding over three years of sales declines, began his Tesco career stacking shelves at a store on Merseyside.

Video: Tesco Investigating Profits Mistake

News of Mr Lewis's initiative emerged as the crisis which led Tesco to report it had overstated half-year profits by £250m deepened on Wednesday.

In a statement issued following discussions with the City watchdog, Tesco said: "The Financial Conduct Authority (FCA) has notified Tesco that it has commenced a full investigation following the overstatement of expected profit for the half year which was described in our announcement of 22 September 2014 and which is currently the subject of an independent review by Deloitte.

"Tesco will continue to co-operate fully with the FCA and other relevant authorities considering this matter."

Video: Tesco's Business Culture Questioned

The half-year results announcement, originally scheduled for this week, has been postponed until 23 October, when the new chief executive plans to disclose the outcome of an investigation into the mis-statement.

Four executives, including the chief executive and finance director of the UK operation, have been suspended pending the outcome of the probe.

Sky News revealed earlier this week that the accounting issue, which relates to the timing of payments to suppliers, had prompted Tesco to build a multi-billion pound war chest from a syndicate of banks to safeguard it against any potential credit rating downgrade or breach of its borrowing covenants.

Video: Tesco Trading Troubles Compounded

Tesco is also examining a sale of Blinkbox, its loss-making video streaming venture, The Times reported on Wednesday.

A spokesman for the UK's largest retailer declined to comment on Mr Lewis's email.


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Sainsbury's Sales Down 2.8% In Three Months

Sainsbury's has seen its sales drop in the last quarter, as it warns the bitter supermarket price war will "persist".

It said like-for-like sales, excluding fuel and VAT, dropped by 2.8% in the three months to 27 September.

Including fuel, the drop was 4.1%. Shares fell more than 6% in afternoon trades, wiping $300m in value from the firm.

The company said changing shopping habits, smaller purchases, and deflationary pressure on prices have all added to the fall in sales.

Chief executive Mike Coupe said: "The market remains dynamic and fiercely competitive.

"The long-running trend of more frequent, convenient shopping has accelerated, resulting in smaller basket sizes.

"An increase in price investment and short-term competitor promotional activity, combined with favourable commodity markets, has resulted in deflation in many areas of our food business."

The company has seen growth in its smaller convenience stores rise at 17%, as urban shoppers move away from large weekly purchases at large stores.

It said the group opened 23 new convenience stores in the quarter and refurbished another 10 stores.

It will also open five new stores in conjunction with Danish discounter Netto, in a strategy to go head-to-head with German discounters Aldi and Lidl.

It now expects food price deflation and the bitter price war among rivals to continue "for the foreseeable future".

Mr Coupe added the supermarket would provide a detailed update when its interim results are announced on 12 November.

On Tuesday, Sainsbury's hit the social media stratosphere after a customer tweeted a photo of a poster - meant for staff areas only - urging employees to try and get shoppers to spend more on each visit.

The poster said: "Fifty pence challenge: Let's encourage every customer to spend an additional 50p during each shopping trip between now and the year-end."

Twitter user Chris Dodd sent the photo to Sainsbury's, who admitted it was not meant for display to the public but for staff areas.

The photo went viral and sparked a flurry of quips on how the supermarket would manage to get more money out of shoppers.

Some suggested double-swiping of items or stuffing additional items in shopping baskets when customers were not looking.

The supermarket price war has been damaging for the share prices of several of the top chains in the last year, with Tesco down 50%, Sainsbury's down 39% and Morrisons more than 11%.


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Virgin Money Picks Banks For £2bn Market Debut

By Mark Kleinman, City Editor

Sir Richard Branson's banking arm will unveil plans for a stock market listing on Thursday that will value the acquirer of Northern Rock at up to £2bn.

Sky News has learnt that Virgin Money is finalising the appointments of Barclays, Citi and KBW to roles as bookrunners on the initial public offering (IPO), which will seek to raise hundreds of millions of pounds.

The trio of banks will work alongside Goldman Sachs and Bank of America Merrill Lynch on the deal, sources said.

A successful flotation would make Virgin Money the fourth bank to float this year, following the demerger of TSB from Lloyds Banking Group and the listings of OneSavings and Aldermore, which announced its own plans earlier this week.

Insiders said that Virgin Money was likely to seek a valuation for its shares at a premium to that of TSB, partly reflecting the strength of the bank's brand.

The board of Sir Richard's financial services business had been expected to wait until next year to press the button on a float, but Sky News revealed last week that an announcement was imminent.

Scotland's rejection of independence in last month's referendum and Virgin Money's strong recent trading has persuaded the bank's board to press ahead with a flotation now.

Virgin Group and WL Ross, a US-based investment vehicle, collectively own just over 90% of the bank, and will reduce their stakes in order to comply with listing authorities' requirements relating to the number of shares which must be freely floated.

However, both investors will retain very substantial stakes, with Virgin Money keen to sell new shares to outside investors.

Sir Richard's practice of floating companies in which Virgin Group owns a stake is well-established, having been used at companies such as Virgin Media and Virgin America, his US airline.

The Government will receive a £50m payment as a consequence of the deal struck between Virgin Money and the Treasury when the bank took control of Northern Rock in 2011.

Virgin Money, which employs more than 2,500 people, reported this month that first-half pre-tax profit nearly quadrupled from £13.1m last year to £59.7m in 2014.

It also announced the appointment of Glen Moreno, who chairs Pearson, parent company of the Financial Times, as its next chairman.

Virgin Money is run by Jayne-Anne Gadhia, a widely respected executive who would become the first woman at the helm of a publicly-listed UK bank if it completes its flotation.

Based in Newcastle, where Northern Rock's head office was located, Virgin Money has more than four million customers, and has just launched into the current account market.

Virgin Money could not be reached for comment on Wednesday.


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PM Pledges Tax Cut For Millions Of Families

David Cameron has promised to raise the 40p tax threshold to £50,000 if the Tories win another five years in power.

The pledge, which would help thousands of middle income earners, was among an array of sweeteners offered by Mr Cameron in his last conference speech before the General Election.

He vowed to balance the nation's books by 2018 so he could deliver tax cuts for "hard-working families", including lifting the tax-free allowance from £10,500 to £12,500.

The PM said it would mean a tax cut for 30 million people and that those on the national minimum wage working a 30-hour week would pay "nothing, zero, zilch" in income tax. 

Video: Cameron On Basic Rate Tax

He also said he would increase the 40p tax rate from £41,900 to £50,000.

Mr Cameron attempted to paint a picture of the Tories as the champion of the ordinary man and families.

He said he wanted a Britain where there was: "the chance of a job, a home, a good start in life, whoever you are, wherever you're from. And by the way, you never pull one person up by pulling other people down."

Video: Cameron On 40p Tax Rate

He added: "We believe in aspiration and helping people get on in life and what's more, we're proud of it."

Shadow chancellor Ed Balls accused Mr Cameron of attempting to "pull the wool over people's eyes" by promising a tax cut without explaining how it would be paid for.

Simon Walker, director general of the Institute of Directors, said: "We await the details of how such reforms will be financed. Increasing the personal allowance is particularly expensive to the Exchequer."

Video: Cameron Does Hague Impression

The Prime Minister went on to make a fierce defence of his handling of the NHS, saying he intended to take the health service back for the Tories after Labour's attempt to claim it with a £12.5bn spending pledge at the party's conference last week.

He accused Labour of "spreading complete and utter lies" by suggesting he was selling off the NHS and said: "How dare they suggest I would put that at risk for other people's children?"

Mr Cameron has spoke of his first-hand experience of the NHS during the care of his son, Ivan, who died in 2009 at the age of six, bringing tears to the eyes of his wife, Samantha, who was sitting in the audience. 

Video: 'UK Jihadists Enemies Of The State'

He said Labour did not understand that the country "can only have a strong NHS if you have a strong economy".

The Conservative Party leader also said he would scrap the Human Rights Act, which has allowed the courts in Strasbourg to rule Britain must give prisoners the vote, and introduce a British Bill of Rights.

Identifying problems with the free movement of people in the EU, Mr Cameron highlighted a number of things he was keen to change.

Video: Cameron Plans Tax Cuts For Millions

"Britain: I know you want this sorted, so I will go to Brussels, I will not take no for an answer and when it comes to free movement I will get what Britain needs," he said.

Mr Cameron's speech brings to a close a conference which has been tarnished by four UKIP "defections", the most significant of which was the MP Mark Reckless.

The Prime Minister warned that a vote for UKIP was a vote for Labour. He said: "On the 7th of May, go to bed with Nigel Farage and wake up with Ed Miliband. I don't know about you, but not a bit of that works for me."

Video: Analysis of Cameron's Speech

1/20

  1. Gallery: Tory Party Conference: In Pictures

    The Conservative Party Conference has drawn to a close. Here are some of the highlights: Boris Johnson addressed delegates with a brick - and cracked a joke about "purring" at David Cameron's expense ...

  2. But of course Boris and Dave are close - as they proved with this touching stroll together

  3. It was not Mr Cameron but Ed Miliband who was the butt of most jokes. The best one was the one about him forgetting to mention the deficit in his keynote address to the Labour Party Conference last week

  4. It shifted some merchandise such as this hilariously named beer

  5. George Osborne started it in his speech, during which he invited voters to choose Dave, choose the Conservatives and choose the future

  6. But it did make him sound like Renton from Trainspotting. Everyone thought so

  7. Nigel Farage was the spectre at the feast. Four defections to UKIP - one MP, a donor and two others since the conference began

  8. The PM prepared for his big speech by asking delegates what they thought of him by posting message boards around the conference in Birmingham

  9. And spent some time with Samantha, his wife

  10. He posed for selfies with delegates

  11. And did not miss a hard hat, high-vis opportunity

  12. He was photographed memorising the chapter on the deficit ... in glasses and Union flag cufflinks ...

  13. ... as he prepared for the crowds in the main hall

  14. Where he gave some money away - tax cuts for the "hard-working"

  15. Got really cross about the NHS

  16. Then got clapped quite a lot

  17. Still, the Conservatives concluded that what Britain needs is an iron lady ...

  18. ...and here's Home Secretary Theresa May


00.11 | 0 komentar | Read More
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