Helicopter Fell 'Like A Stone Out Of The Sky'

Eyewitnesses have described the "terrifying" moment when a police helicopter spun out of control and plunged into a bar which was hosting a live music gig.

Grace MacLean was in The Clutha in Stockwell Street, Glasgow, and said people only became aware of the crash when the the ceiling of the venue started to cave in.

She told Sky News: "There was a band on, they were quite loud, and we just kinda heard a whoosh and some smoke.

"We looked around and no-one really knew what was going on. Everyone just carried on listening to the band.

Emergency services at the scene

"And then we kind of looked again and the roof was gradually coming down.

"Someone started shouting and the band cut the music ... and then all of a sudden this cloud of dust came.

"You couldn't breathe for inhaling a mouthful of dust. You couldn't see anything. You were clawing at the walls to see where the exit is.

"No-one had a clue what was going on. There was no loud noise.

"People were helping each other out. Everyone started helping people who were hurt. People had some head injuries. Lots of people were covered in dust. There were lots of people shocked.

"No-one knew it was a helicopter crash until people told you."

Firefighters on the roof of the pub where the helicopter crash-landed

Labour's international development spokesman Jim Murphy was one of the first people on the scene immediately after the crash and helped carry people out.

He said he saw a "pile of people clammering out" of the bar as he was driving past.

"I jumped out and tried to help," he said. "There were people with injuries. Bad gashes to the head. Some were unconscious."

Scores of passers-by in the area ran to the venue after seeing or hearing the aircraft go down.

Mr Murphy said people formed a human chain to help pass those that were unconscious out of the pub so that "inch by inch, we could get the people out".

Connor Gillies, from Radio Clyde News, told Sky News of the "scenes of chaos" and "continuous stream of sirens" in the area on Friday evening.

MP Jim Murphy helped people out of the venue

Mr Gillies described seeing "blood on the shirt" of Mr Murphy, who he said was "clearly very shaken, very upset by the whole thing".

Wesley Shearer, who posted pictures on Twitter of the scene, said there had been "talk of fatalities", but this has not been confirmed.

"This is unbelievable," he tweeted shortly after the crash. "Just spent 20 minutes pulling people out of the bar."

Jan Hollands, who also tweeted pictures from the scene, said she heard the crash and described it as "scary".

Gordon Smart, editor of the Sun's Scottish edition, witnessed the aircraft plunge into the pub.

He said: "It was a terrifying sight. I was on the roof of a car park, six floors up, getting into my car, about to drive home for the evening. I looked up and saw a helicopter which I think was a police helicopter falling out of the sky.

"It was like a stone dropping from the sky. It landed a few 100 yards from me. Strangely there was no explosion.

"It was just a strange, surreal moment. It looked like it was dropping from a great height, at a great speed.

"There was no fireball and I did not hear an explosion. The engine seemed to be spluttering."

He added: "It was an incredibly eerie spell. I was expecting to hear sirens straight away. There was no noise at all. I just couldn't quite believe what I had seen."

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Police Helicopter Crashes Into Glasgow Pub Roof

A police helicopter has crashed into a pub roof on the banks of the River Clyde in central Glasgow.

The aircraft came down on The Clutha in Stockwell Street at 10.25pm which was packed with more than 100 people at the time.

Police Scotland said a crew of two officers and a civilian pilot were on board the helicopter, but added the force was "not in a position to confirm any details regarding injuries".

Deputy Chief Constable Rose Fitzpatrick said it was "too early at this stage to provide any details around why the helicopter came down".

Two police officers and one civilian pilot were on board the helicopter

Scottish Fire and Rescue Service said "a number of casualties" with "multiple types of injury" had been taken to hospital, while crews worked to stabilise the "very unsafe building" and free others who remained trapped inside.

"We will be here for as long as it takes," said Assistant Chief Officer Lewis Ramsay.

He said it was difficult to tell how many people were still inside.

"Our officers are working very hard in what is a very complex and hard environment for them tonight," he said.

"We've had some contact and we're working away just now to make sure that the building is safe in order to get people out."

Glasgow Royal Infirmary said nine people were being treated at the hospital, but gave no further details on their condition.

Emergency services confirmed search and rescue dogs were assisting police and 125 firefighters at the venue, where a local band were playing on Friday evening.

Those inside the pub gather outside after the crash Pic: Paul Agnew

One image of the crash on social media sites showed the dark blue helicopter on the roof with yellow "Police" insignia on part of the wreckage.

First Minister Alex Salmond said that given the scale of the Glasgow helicopter crash, "we must all prepare ourselves for the likelihood of fatalities".

Labour's international development spokesman Jim Murphy, who was among those helping the wounded out of the pub, tweeted: "Terrible here in Glasgow Helicopter crashed into roof of pub".

He told Sky News: "I just saw dozens and dozens of people coming out of the pub. It is a horrible, horrible scene."

Gordon Smart, editor of the Sun's Scottish edition, saw the crash from a multi-storey car park nearby.

He told Sky News: "I thought it was a plane that was going to crash. I looked up at the sky and I could see the helicopter falling, tumbling ... and then there was an eerie silence for the last part of the fall.

The Clutha is situated in Stockwell Street in Glasgow

"But the thing that was disturbing and shocking was there was no explosion. I couldn't understand why a helicopter would fall from that height and not explode.

"To see the angle, the speed and the trajectory of the fall ... it was a horrific sight."

Prime Minister David Cameron tweeted: "My thoughts are with everyone affected by the helicopter crash in Glasgow - and the emergency services working tonight."

The Police Roll of Honour Trust tweeted "Our thoughts are with the crew of @policescotland SP99 helicopter that has crashed in Glasgow - hoping everyone is alright."

Glasgow Central Mosque, located close to the pub on the opposite side of the Clyde, tweeted: "Have told emergency crew that we r on standby & can make available mosque & volunteers to assist in any way to aid injured & emergency crew."

A full probe involving the Air Accident Investigation Branch (AAIB) and the emergency services is under way.

Members of the public concerned about relatives who may have been involved in the crash can call an emergency helpline on 0800 092 0410.

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Mairead Philpott's Appeal Hearing Televised

By Lisa Dowd, Midlands Correspondent

The father of Mairead Philpott has told Sky News she should not be appealing against her sentence for killing her six children.

The court hearing is due to be televised later.

It will be the most high-profile case to be broadcast since cameras were allowed into the Court of Appeal last month.

Philpott, 33, and family friend Paul Mosley, 46, got 17 years for the manslaughter of the children in a house fire in Derby in May 2012.

Back (l-r) Duwayne and John, Front (l-r) Jack, Jessie, Jade and Jayden

Philpott's husband, Mick, 56, was jailed for life. He has not appealed, and a plan for Mosley to appeal has been abandoned.

Jade Philpott, 10, and her brothers, Duwayne, 13, John, nine, Jack, eight, Jesse, six, and Jayden, five, all died in their bedrooms after a fire swept through the family home on Victory Road in the Allenton area of the city.

Mairead's father, Jimmy Duffy, said she "shouldn't be appealing at all".

He added: "They should be getting on with what they've got."

A letter written in prison from Mairead to her father

Mr Duffy said he was in support of court proceedings being televised.

"Basically they're going to be seen for what they are, in fact they should have televised the whole case if I had my way," he said.

Mr Duffy said his daughter had written to him from prison. In the letter, Philpott said she is "coping as best as I can it's hard but I'm doing ok for now", and signs off, "Hope to hear from you soon, love Mairead xxxxxx".

But Mr Duffy has little sympathy for her.

Mairead is appealing her sentence for killing her children

"I love her, she's my daughter, don't get me wrong, she's my flesh and blood, but I can't forgive her for even having a part in it," he said.

Mosley's sister Angela doesn't think he should have tried to appeal in the first place.

She told Sky News: "If you knew your friend was going to set fire to their house, my first port of call would be to the police station.

"You would do everything in your power to stop the fire but they didn't they carried on, they're guilty."

A wedding photo of Mick and Mairead Philpott

It will be the first time a Court of Appeal hearing has been filmed outside London.

The Lord Chief Justice Sir John Thomas, Mr Justice Flaux and Mr Justice Macduff will hear from legal representatives for Philpott.

They will then go through the sentencing guidelines, and give their judgment.

The house of Victory Road being demolished

It's unlikely that Philpott will be in court, even via video link, and cameras will only focus on the judges and lawyers.

There is also a 70-second delay which will enable any protests to be screened out and ensure that judges have sufficient time to signal to the video-journalist, Matt Nicholls, if they believe any material needs to be removed from the broadcast.

Last month The Lord Chief Justice said: "The bringing of cameras into the Court of Appeal and the recording of its proceedings will enable those to be understood much better by the public as a whole. We hope it will increase confidence in the administration of justice."

Philpott and Mosley were sentenced in April by Mrs Justice Thirlwall who described Mick Philpott as "a disturbingly dangerous man" and said his wife put him "above" her children "and as a result they have died".

She said Mosley must have appreciated the "appalling risk" but was "prepared to go along with the plan".

:: The appeal, scheduled for 10.30am, can be watched on Sky News.

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Energy Bills: Govt Wants Price Freeze Until 2015

The Energy Secretary has written to the big six energy providers asking them to freeze their prices until after the 2015 general election, according to Sky sources.

The call, barring any big increase in wholesale fuel costs, is to try to avoid another round of price rises that could be blamed on Government green levies, industry sources have said.

Annual bills could be cut by around £50 by the move, it is claimed.

Ed Davey has promised to help firms by introducing changes to the green levies that Prime Minister David Cameron and Chancellor George Osborne have pledged to "roll back".

Energy Secretary Ed Davey is believed to be seeking a deal with firms

He first wrote to the firms last week and followed-up his appeals with fresh letters this week.

It is understood the companies have so far given no commitment to his proposal.

Ministers are proposing to change the Energy Company Obligation (ECO) - one of the green levies branded "green crap" by a Tory source last week.

The Government wants to be able to announce a pledge or deal in the Autumn Statement on December 5.

The Department of Energy & Climate Change described the claims as speculation, stating there would be no comment on the issue ahead of next week's statement.

Bills are burned during a protest this month against prices and budget cuts

The move comes ahead of a speech by Ed Miliband later in which he will pledge to end the energy "rip-off".

The Labour leader is to call for a tough new regulator with powers to order firms to pass on wholesale savings to customers, and intervene in the market to ensure they get good value in the future.

An independent Energy Security Board would be created modelled on the Office for Budget Responsibility, to help draw up and implement a timetable for building energy capacity and ensure the lights stay on.

He will also promise action to boost competition among suppliers, simplify bills for customers and "secure energy which is affordable and available".

Labour leader Ed Miliband is to pledge to end the energy "rip-off"

The shake-up - described by Mr Miliband as the biggest since privatisation in the 1980s - would be implemented during the 20-month price freeze he has pledged if Labour wins the general election.

Launching the party's energy green paper at Manchester Town Hall, Mr Miliband will refer to the famous "Tell Sid" campaign advertising British Gas privatisation under Margaret Thatcher.

"In the past three years it has become clear to everyone but this government that the energy market is broken," he is expected to say.

"Prices are rising year on year without justification. And Britain is not getting the investment in energy we need to secure supplies for the future...

"We have a new message for Sid: We will freeze your bills for 20 months. We will reset the market with real competition and proper regulation so that prices are affordable. We will secure the investment we need.

"We will stop you being ripped off and, together, we will power Britain into the next century."

Other commitments include preventing power generation companies doing exclusive deals with their retail arms and ensuring all environmental and policy levies on bills are delivering "value for money".

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Student Loans: £5bn Unaccounted For Says NAO

More than £5bn paid out in student loans is unaccounted for because the Government does not have enough information about the recipients.

There are 368,000 student borrowers for whom there is no current employment record, or other details on earnings, according to a study by spending watchdog the National Audit Office (NAO).

This could be because they are unemployed students living in the UK, EU students who have returned home or UK students who have moved overseas.

It means the Government does not have enough information to decide whether these students should be making repayments on their loans, and if so, how much.

Students currently only repay their loans when they earn £21,000, and repayments are linked to earnings.

The NAO report claims the Business Department (BIS) is not doing enough to find out whether borrowers are earning enough to start repayments.

It also says there are around 14,000 former students, with a total debt of £100m, living overseas who are behind on their repayments.

The Student Loans Company, which helps collect the payments, could take a "more targeted approach" to this group, says the NAO.

Earlier this week, the Government sold off older student loans totaling nearly £900m to a private debt collection agency for £160m.

Universities minister David Willetts called the sale "good value for money" and said it would help reduce public sector debt.

More than a third (35%) of new loans taken out are not expected to be repaid, according to Government figures, and around half of students are not expected to repay their debt fully.

Under a major overhaul of higher education, which saw tuition fees at English universities treble to a maximum of £9,000, student loans are now written off after 30 years.

The NAO wants the Government to improve the information it holds about student borrowers so taxpayers get more of their money back.

A BIS spokesman said: "We are continually improving the collection process for borrowers and we will carefully consider the NAO's recommendations as part of this programme."

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David Cameron 'U-Turn' Over Cigarette Packaging

By Jon Craig, Chief Political Correspondent

David Cameron is set to be accused of a major U-turn over the introduction of plain packaging of cigarettes.

The Government is poised to announce it is pressing ahead with the measure aimed at making smoking less attractive to youngsters.

Mr Cameron's decision to shelve the measure last July caused an outcry after it emerged his election strategist Lynton Crosby, now employed full time by the Conservatives, is a partner of Crosby Textor, which worked with Philip Morris Ltd as it lobbied the UK government against plain packaging.

That prompted the accusation from Ed Miliband in the Commons: "He is the Prime Minister for Benson and Hedge funds, and he knows it.

The PM was accused of pandering to his election strategist Lynton Crosby

"Can he not see that there is a devastating conflict of interest between having a key adviser raking it in from big tobacco and then advising him not to go ahead with plain packaging?"

Campaigners for plain packaging feared a pause on consultation in July had effectively ruled out any prospect of its introduction until after the next election, while lobbyists for the tobacco industry were confident of having defeated the proposal.

Now Earl Howe, the health minister, is to introduce an amendment to the Children and Families Bill in the House of Lords, possibly as early as next week, to give the Government enabling powers to introduce plain packaging.

At the same time the Government will announce another review of what has happened in Australia to report back next March. Its findings are expected to strongly back the case for plain packaging.

One of the most recent studies from the country, the first in the world to ban branded cigarettes cartons, found that those using cigarettes sold in standardised plain brown cartons were 81% more likely to consider quitting.

A Government source told The Times: "This will nail Labour's ridiculous smears. Now the pressure will be on Labour to get behind this amendment to enable the introduction of standardised packaging."

Luciana Berger MP, Labour's shadow public health minister, said: "We need immediate legislation for standard cigarette packaging, not another review. The Government needs to stand up to the tobacco industry's vested interests.

"The evidence to support standardised packaging is clear. The consensus is overwhelming. We don't need any further delay while 570 children are lighting up for the first time every day."

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Digital Post-Mortem Centre To Open In UK

Europe's first non-invasive digital post-mortem examinations will be carried out at a state-of-the-art centre in Sheffield.

It will allow pathologists to perform some investigations into cause of death without dissecting the body.

Sheffield is the only place to have the technology outside of Malaysia, where it was developed, and it is set to be the first of a network of centres across the UK.

The new equipment involves a CT scanning machine with unique software that turns images into a 3D representation of the body.

The pathologist uses a large touchscreen tablet computer to carry out the examination.

It could be used in 70% of post-mortem examinations, according to iGene, the company behind the technology.

The scene of death could also be reconstructed digitally using the 3D capabilities of the system, according to the firm.

Another 17 sites are expected to open by the end of 2015

It said the technology would make things easier for families, speeding up the process and, in some cases, providing more accurate findings.

"Digital autopsy is more than just a technological innovation," said Matt Chandran, chief executive of iGene.

"It represents a tremendous humanitarian step forward in establishing the cause of an unnatural death."

Sheffield City Council leader Julie Dore said "countless families" in the city would benefit from the new centre, which will be opened by chief coroner Judge Peter Thornton.

It is intended to pave the way for a series of centres, making the UK the first country to have such a network.

A centre in Bradford is expected to open next year, and the company aims to have 18 sites across England and Wales open by the end of 2015, with the creation of up to 250 highly skilled jobs.

Around 95,000 post-mortem examinations were performed in Britain last year, accounting for around 20% of deaths.

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Lottery: Last Gasp Search For £12m Winner

By Adele Robinson, Midlands Correspondent

A £12m lottery prize will be lost forever if it is not claimed before a deadline elapses tonight

The winning EuroMillions Millionaire Raffle ticket, worth £1m a month for a year, was bought on Friday May 31 in the Ladywood district of Birmingham, one of the poorest areas in the country.

If the prize remains unclaimed by 11pm on November 27 the money will go to charitable causes.

The winning raffle number is JRG437445 but Camelot will not say where exactly it was bought.

Patrick Lisoire from Camelot says they are not giving up hope yet.

Birmingham's mayor has been involved in the search for the winner

"A prize in the Midlands of about £2.5m a few years back was claimed in the last 24 hours before the deadline.

"So that's 179 days elapsed before the claimant claimed their prize. We never knew the reason why they took so long."

The search for the winner has been ongoing for several months with various publicity campaigns in the Birmingham area.

The Lord Mayor of Birmingham, Mike Leddy, started a countdown clock in the city centre earlier this week and National Lottery workers walked the streets handing out leaflets.

Lottery workers have been handed out flyers in the city

Lottery organisers say if the winner is a football fan they may remember that the EuroMillions draw was sandwiched between England's two international friendlies against the Republic of Ireland and Brazil.

If unclaimed, the £12m prize will become the second highest uncollected lottery jackpot. In December 2012, £64m of winnings went to charitable causes.

Anyone who believes they have the winning ticket for any of the National Lottery draws within the 180-day deadline should call the National Lottery Line on 0845 910 0000 or email help@national-lottery.co.uk.

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Melanie Hall Murder: Man, 44, Arrested

A man has been arrested on suspicion of the murder of Melanie Hall who went missing 17 years ago.

The 44-year-old was held at his home in Bath last week as part of the investigation into the death of the 25-year-old clerical worker, whose body was found dumped by the side of the M5 near Bristol in 2009.

A spokesman for Avon and Somerset Police said the man had been released on bail until December 19.

Detectives also searched a property in which the man had previously lived.

Miss Hall's parents Steve and Pat had been informed and kept up to date of the developments.

Miss Hall, who worked at Royal United Hospital in Bath, disappeared after a night out at Cadillacs nightclub in Bath.

A worker clearing vegetation from the side of the motorway near Thornbury, Gloucestershire found her remains on October 5, 2009 and she was identified as the victim two days later.

The investigation team has taken about 250 statements and collected 1,200 pieces of evidence since Miss Hall went missing.

Last month, on the fourth anniversary of the discovery of her body, police said they had uncovered "significant and very interesting" information and that forensic experts were examining a white Volkswagen Golf which may be relevant to the murder.

Last month Miss Hall's father said: "This is very positive news. Gradually the pieces of the jigsaw are being put together to bring Melanie's killer or killers to justice.

"We always knew it would take a long time, but these new developments appear very encouraging."

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Scotland Independence: SNP Unveils White Paper

By James Matthews, Scotland Correspondent

Scotland's SNP Government is set to present a vision of a "wealthier and fairer" Scotland ahead of next year's independence referendum.

The 670-page white paper will be launched at an event in Glasgow at 10am.

It is being billed as an "Independence Encyclopaedia" that will contain the answers to the questions surrounding a breakaway from the UK.

The SNP's opponents, however, insist it will force Scots into a "risky choice" they do not need to make.

Scotland's First Minister Alex Salmond will unveil the document, entitled Scotland's Future - Your Guide, which he claims will make it better equipped than any other country at any other time to become independent.

Scotland's Deputy First Minister Nicola Sturgeon told Sky News: "This is a document for the people of Scotland; it is their guide to independence, and it will provide both a vision for Scotland's future and the answers on independence that people have been seeking.

Nicola Sturgeon and Alex Salmond will launch the guide in Glasgow

"As part of the guide we will be providing the answers to people's questions on how we become an independent country, what the opportunities are of independence, how our institutions of government will work and what the benefits can be of a vote for independence.

"Our message to the people of Scotland is simple: read this guide, compare it with any alternative future for Scotland and make up your own mind."

She added: "This guide to an independent Scotland will set out a vision for Scotland's future, the ways in which we can use the powers of independence to build a wealthier and fairer Scotland and ensure that everyone benefits from our natural wealth and talent.

"This guide to independence will move the debate forward from how Scotland can become an independent country to the kind of country we can be."

Ahead of the document launch at the Glasgow Science Centre, the SNP's opponents have questioned the case for independence, particularly the SNP's stated aim to join a currency union with the remainder of the UK it plans to leave behind.

Pro-independence supporters marched through Edinburgh in September

They claim there is no guarantee that the rest of the UK would find that acceptable. 

Nor are there any guarantees surrounding the membership of an independent Scotland in the European Union or NATO.

Former Chancellor Alistair Darling told Sky News: "We can have the best things about being a successful country and the best things about being part of something bigger.

"We simply don't have to choose between having a strong Scottish Parliament and the strength and security of being part of the United Kingdom.  We can have both.

"We can be proudly Scottish and feel a sense of connection to friends and family in the rest of the United Kingdom.

"We can have a distinctive Scottish voice and we can keep the opportunities that come through sharing risks, rewards and resources with one of the biggest economies in the world."

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Domestic Violence: 'Clare's Law' Set To Widen

A scheme that gives people the right to ask police if their partner has a history of domestic violence is expected to be widened.

'Clare's Law' has been trialled by four police forces and is named after Clare Wood, who was strangled and set on fire by her ex-boyfriend, George Appleton in 2009.

Police run checks and speak to agencies such as the Prison Service, the Probation Service and Social Services.

'Facebook fugitive' George Appleton strangled Clare Wood in 2009

If a risk is discovered, information about an abusive partner may be disclosed to whoever is best placed to help - but the disclosure must be "lawful and proportionate".

'Clare's Law' has been running in Gwent, Wiltshire, Greater Manchester and Nottinghamshire and ministers are today expected to tell Parliament that it should be extended.

As well as the potential victim, a third party such as a parent, can also apply for information under the initiative - which is officially called the Domestic Violence Disclosure Scheme.

Miss Wood, 36, a mother-of-one, had met George Appleton on Facebook, unaware of his history of violence against women, including repeated harassment, threats and the kidnapping at knifepoint of one of his ex-girlfriends.

Recent television adverts have highlighted domestic violence

At the inquest into her death, the coroner said women in abusive relationships should have the right to know about the violent past of the men they were with.

Clare's father Michael Brown told Sky News he was "delighted" at the prospect of the scheme being extended.

"Why these lads can go through in a little underworld of their own, moving from partner to partner, and causing the trail of devastation that they leave and get away with it - because data protection says you can't tell - I thought it was nonsense," said Mr Brown.

"I'm delighted for the ladies it will protect in the future."

One woman who used Clare's Law to uncover her partner's abusive past using said she was glad she took action.

Clare Wood's father is 'delighted' the scheme looks set to expand

She told Sky News: "I found out that my previous partner was abusive, some physically but mostly emotionally and mentally, which made me feel very uncomfortable.

"I'd started to feel that way myself, so by having that confirmed to me it does help you feel a little bit stronger."

The charity Refuge has in the past raised doubts over Clare's Law, saying most abusers are not known to police and urging that instead more should be spent on improving the police response to domestic violence and keeping refuges open.

It is difficult to accurately know the extent of domestic violence in the UK.

However, a 2011/12 survey by the Office for National Statistics found 1.2 million females and 800,000 males reported experiencing domestic abuse over a 12-month period.

Home Secretary Theresa May said: "These new measure that the Government has been piloting will help us to be able to support victims more, to deal with perpetrators and to constantly try to stop this terrible crime of domestic violence that takes place all too often."

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Ministers To Unveil £900m Student Loan Sale

By Mark Kleinman, City Editor

Nearly £1bn of student loans will be offloaded by the Government to a private debt collection agency today in a move likely to stoke renewed controversy over coalition sell-offs.

Sky News can reveal that ministers will announce to the London Stock Exchange that the Government has agreed a deal to privatise a £900m portfolio of loans made to students who were enrolled at universities during the 1990s.

The disposal, to a debt recovery specialist, will be for a fraction of the debts' face value, and encompasses mortgage-style loans that are the last of their kind still in public ownership.

The sale, which does not include Income Contingent Repayment loans like the ones currently offered, comes as student groups step up their protest over the disposal of the loan portfolios.

The coalition is drawing up plans to sell the entire outstanding student loan-book, which has a face value of roughly £40bn.

Investment bankers from Barclays and Rothschild were appointed by the Department for Business, Innovation and Skills (BIS) last month to oversee the sale, which more than 15,000 people have signed an online petition to oppose.

Danny Alexander, the chief secretary to the Treasury, said during the summer that the Government hoped to raise £10bn from the sale of corporate and financial assets such as the student loan book by 2020.

Speaking in March, when the mortgage-style student loan auction was initiated, David Willetts, the universities and science minister, said: "Selling the remaining mortgage-style student loans will allow us to reduce public debt and maximise the value of one of the Government's assets.

"The private sector's expertise makes it well-placed to collect this debt and the sale will also help the Student Loans Company (SLC) to concentrate on providing loans to current students."

The low recovery rate on the 1990s loans means the sale price is likely to be only in the tens of millions of pounds, reflecting the distressed nature of the debts, people close to the situation said on Sunday.

The deal will come at a sensitive time, just weeks after Royal Mail was floated with a valuation of £3.3bn.

On Wednesday, Royal Mail will present its maiden results as a listed company, while Vince Cable, the Business Secretary, will make a further appearance before the BIS Select Committee amid allegations that the postal operator was sold too cheaply.

The Government insisted that bidders for the £900m loan portfolio, which was given the codename Project Ariel, would be assessed against a strict set of criteria, although it did not say publicly what these would be.

It added that the terms and conditions for borrowers whose loans were included in the sale would not change.

The mortgage-style loans were available between 1990 and 1998, with two tranches sold in 1998 and 1999. Repayments on them can be deferred for a year at a time if borrowers' income is below 85% of the national average earnings.

"The remaining loans owned by the Government are mostly in deferment or in arrears, so total annual repayments are low," BIS said in March, adding that it was likely to receive significantly less than £900m from a buyer.

A BIS spokeswoman declined to comment while the Student Loans Company referred questions to the Government.

PricewaterhouseCoopers, which has been handling the auction, also declined to comment.

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Miliband Accuses PM Of 'Reaching A New Low'

Labour leader Ed Miliband has accused the Prime Minister of resorting to a strategy of mud-slinging in an effort to win the 2015 election.

He hit out at David Cameron for using the Paul Flowers scandal to attack his party's links to the co-operative movement.

Writing in the Independent on Sunday, Mr Miliband said Mr Cameron "hit a new low by trying to use the gross errors and misconduct of one man, Paul Flowers, to impugn the integrity of the entire Labour movement".

He said: "We all want proper answers as to what went on at the Co-operative Bank, and the public deserves better than the desperate attempts by the Tory party to score the cheapest political points, including ludicrous claims that Labour's historic links with the Co-op movement were the invention of Rev Flowers.

"Of course, the credibility of their smears was undermined when it emerged that the Chancellor himself was promoting the Co-op's bid to take over Lloyds Bank branches."

The Tories have attacked Labour's links with the Co-op Bank

The Tories have sought to highlight the close links between Labour and the Co-op, including "soft loans" at preferential rates and a £50,000 donation to Ed Balls' office from the Co-operative Group.

But Labour have used the row over the near collapse of the lender to put pressure on George Osborne over the Co-op's aborted bid for Lloyds branches.

Mr Miliband claimed the heated exchanges at Prime Minister's Questions over Labour and the Co-op, along with attacks over the trade unions and seeking to blame Andy Burnham for NHS failings, were part of a plan to fight the "dirtiest general election campaign" for 20 years, masterminded by Tory strategist Lynton Crosby.

"David Cameron cannot resist a low blow when the British public craves a politics on the high ground. His main political strategy is now to sling as much mud as possible in the hope that some of it sticks. When he does so, he demeans his office."

Mr Shapps accused Mr Miliband of 'evading serious issues'

Tory chairman Grant Shapps hit back at the Labour leader, highlighting the activities of Gordon Brown's former spin doctor Damian McBride.

"This is a pathetic attempt to evade the serious issues. Labour have big questions to answer, and when they are asked, they simply try to avoid them by claiming they are smears," he said.

"It is an obvious tactic from the party that brought you the most disgraceful smear operation of modern times, fronted by Damian McBride, and known about, encouraged and tolerated by Ed Balls and Ed Miliband.

"And McBride was simply the latest in a long line of bullying Labour spin doctors, including Alastair Campbell and Charlie Whelan. Incredibly, Labour's new campaign chief Michael Dugher used to be McBride's right-hand man - it's the same old Labour.

"We suggest they explain how the corruption at Falkirk happened, and how the Rev Flowers was allowed to become and remain an adviser, rather than dismiss legitimate questions as smears."

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London 'Slavery': Neighbours' Shock At Claims

People living near to a house where three women were allegedly held as slaves for more than three decades have spoken of their shock at the claims.

The women - a 69-year-old from Malaysia, a 57-year-old from Ireland and a 30-year-old Briton - were taken from the property in Brixton, south London, last month after calling a support charity asking for help.

Police said the women, two of whom who lived in a "collective" with a 67-year-old man they met through a "shared political ideology", had suffered "emotional and physical abuse".

The man and a woman, also 67, who came to the UK in the 1960s and are of Indian and Tanzanian origin, were arrested and released on bail.

Commander Steve Rodhouse, of the Metropolitan Police, said: "Somehow that collective came to an end and the women ended up continuing to live with the suspects.

"How this resulted in the women living in this way for over 30 years is what are seeking to establish, but we believe emotional and physical abuse has been a feature of all the victims' lives."

Kamal Francis described the women as having unkempt appearances

As police carried out door-to-door inquiries to establish more details about the alleged victims, neighbours described the area around the block in Peckford Place, where the women had been living, as a "quiet" area.

One woman, who gave her name only as Valerie, said: "Seeing all this going on is quite surprising to me. It's shocking really."

Abdul Rogers said many people did not speak to each other, adding: "I don't even know my next door neighbour. If I met them on the street now I would not be able to tell it was my next door neighbour, which is not good for community cohesion."

Kamal Francis is a regular visitor to the block of flats as his partner lives directly above where the women were held.

He told Sky News: "One would be wearing a long, baggy, cardigan and a long skirt touching the floor. They had messy hair. They were not neat people."

Investigators believe the youngest of the alleged victims may have spent her entire life as a domestic slave.

Cmdr Rodhouse said police had found her birth certificate but no further documentation.

The women lived in the Angell Town estate in Brixton

"We believe she has lived with the suspects and the other victims all her life, but of course at this early stage we are still seeking out evidence," she said.

The woman who called Freedom Charity asking for help said she had been held against her will for more than 30 years.

Aneeta Prem, who founded the organisation, said it had seen an "extraordinary" rise in calls to its helpline since the rescue of the three women came to light.

"These women have had traumatic and distributing experiences," she said.

"What needs to happen now is that the three victims, who have begun a long process of recovery, are able to go through their rehabilitation undisturbed, without being identified."

Scotland Yard revealed that as part of an agreement made when the women were removed from the address on October 25, police were to take no further action.

Officers said they were taking "every step" to protect the "emotionally fragile and highly vulnerable" victims.

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