Curb Excessive Pay Or Face Action, Warns Cable

Barclays Pay Plans Receive Mixed City Verdict

Updated: 3:36pm UK, Tuesday 22 April 2014

By Mark Kleinman, City Editor

Barclays will this week suffer a sizeable City rebellion over its decision to hike bonuses last year while simultaneously receiving overwhelming shareholder backing for its future pay plans.

Sky News has learnt that more than 90% of investors who have cast their votes in advance of this week's annual meeting are supporting the bank's plans to pay up to twice the level of employees' salaries as bonuses under new European Union rules.

The scale of investor support for that resolution is important because it will be followed by votes at the AGMs of the other major UK banks in the coming weeks.

Insiders say that a similar result is expected on a resolution setting out Barclays' future executive pay policies, in what will represent the first major test of a binding vote introduced by Vince Cable, the Business Secretary.

At Barclays, the binding vote encompasses new role-based allowances being handed to hundreds of Barclays' top managers, in effect enabling them to be paid higher bonuses.

However, insiders said that roughly one-quarter of shareholder votes cast so far had opposed last year's directors' remuneration report, the ballot for which is non-binding.

Mr Cable has written to the remuneration committee chairs of FTSE 100 companies to warn them that there are "signs that some companies continue to consider pay awards which appear excessive in light of recent performance".

An aide to the Business Secretary said the timing of his letter was designed to coincide with the Barclays AGM.

Barclays has sought to appease restive investors by recruiting a new chairman for its board pay committee, replacing Sir John Sunderland.

One insider said on Tuesday that Sir John's re-election had also received comprehensive support, with Thursday's AGM expected to show that he had been backed by more than 90% of shareholders.

A number of institutional investors, including Fidelity, have criticised pay at Barclays in recent weeks after the bank increased its bonus pool by 10% to £2.4bn despite a slide in profits.

However, Richard Buxton, one of the City's top fund managers, who oversees billions of pounds at Old Mutual Global Investors and is a long-standing Barclays shareholder, told Sky News he was supportive of Antony Jenkins, the bank's chief executive.

"Our focus is on the progress being made to improve returns, notably within the investment bank," he said.

"We are confident that much more will be achieved here, which will feed through to lower costs and lower compensation over time, albeit in an uneven fashion."

He added that Barclays had made "significant progress on compensation" in 2012 but had had to "give a bit back last year" in a more competitive market. 

"I'm confident that after further work on costs this year, the three-year average 2012-2014 numbers will show material moves in the right direction. 

"The bank knows it has to improve the staff-to-shareholder reward ratio - but this is a multi-year journey."

Barclays, which will outline further cost-cutting plans at its investment bank on May 8, declined to comment ahead of its AGM.

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Blocking Breast Cancer Drug A 'Major Blow'

Moves to block a new breast cancer drug which extends women's lives by almost six months have been described as a "major blow".

Clinical trial results have shown that women on Kadcyla survived 30.9 months compared with 25.1 months on similar treatments.

However, the National Institute for Health and Care Excellence (Nice) said in its draft guidance the drug is not effective enough to justify the price the NHS is being asked to pay.

It is estimated that Kadcyla, manufactured by Roche, will cost around £90,000 per patient.

Sir Andrew Dillon, Nice chief executive, said: "We had hoped that Roche would have recognised the challenge the NHS faces in managing the adoption of expensive new treatments by reducing the cost of

Kadcyla to the NHS.

"We apply as much flexibility as we can in approving new treatments, but the reality is that given its price and what it offers to patients, it will displace more health benefit which the NHS could achieve in other ways, than it will offer to patients with breast cancer."

Professor Paul Ellis, consultant oncologist, at King's College, London and lead triallist for the drug in the UK, said: "Kadcyla represents a significant advance in HER2-positive breast cancer, so for Nice to issue negative preliminary guidance is a huge blow.

Jayson Dallas, general manager, Roche Products Limited, said: "Roche is extremely disappointed that Nice has failed to safeguard the interests of patients with this advanced stage of aggressive disease."

Kadcyla, which is only suitable for patients with the defective Her2 gene, is designed to penetrate cancer cells and destroy them from within and, because its action is so precise, a normally toxic form of chemotherapy can be used.

It is currently given to breast cancer patients who have failed on conventional treatment with Herceptin and chemotherapy.

The decision by Nice is now up for public consultation and during this time patients will be able to apply to their local NHS and to the Cancer Drugs Fund (CDF) for the drug.

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Skin Cancer Rise Linked To Package Holidays

The rise of package holidays and sunbed use have been blamed for a five-fold increase in rates of the deadliest form of skin cancer since the 1970s.

Experts say the quest for a "healthy" tan has contributed to an increase in cases of malignant melanoma.

More than 13,000 people are now developing the disease each year compared about 1,800 in 1975, according to Cancer Research UK.

And the incidence rate has shot up from just over three per 100,000 of the population 40 years ago to around 17 per 100,000.

Malignant melanoma is the fifth most common cancer in the UK and more than 2,000 people die from the disease each year.

Sunburn is known to increase the risk of skin cancer, especially in people with pale skin or large numbers of moles or freckles.

Amanda Crosland had a cancer scare in 2001, despite covering up in the sun

Nick Ormiston-Smith, head of statistics at Cancer Research UK, said: "Since the mid-1970s, malignant melanoma incidence rates in the UK have increased more rapidly than any of today's 10 most common cancers.

"Holidays in hot climates have become more affordable and sunbeds are more widely available since the 1970s.

"But we know over-exposure to UV (ultraviolet) rays from the sun or sunbeds is the main cause of skin cancer.

"This means, in many cases, the disease can be prevented, and is why it's essential to get into good sun safety habits, whether at home or abroad.

Ms Crosland still bears a scar from her successful treatment

"The good news for those that are diagnosed, is that survival for the disease is amongst the highest for any cancer. More than eight in 10 people will now survive it."

Besides avoiding sunburn, other advice includes spending time in the shade, covering up and using a minimum factor 15 sunscreen.

Fair-skinned redhead Amanda Crosland, 43, was diagnosed with malignant melanoma in 2001, despite covering up in the sun.

The mother-of-two from Leeds said: "When I noticed a new mole on my left calf, I knew it was safest to get it checked out by the doctor.

"Spotting it early meant I had a successful operation to remove the cancer before it spread.

"I've always been careful to look after my skin, but I do remember getting sunburnt as a girl.

"I still enjoy getting out in the sun, but now make sure the kids and I are properly protected with hats, T-shirts, and sunscreen, so we can enjoy the sun safely in the garden or at the beach."

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Leeds Firefighters Tackle Industrial Blaze

Firefighters are tackling a huge blaze at a building in Leeds used for storing chemicals that lit up the sky and sent plumes of smoke across the city.

Witnesses reported hearing loud bangs as the inferno engulfed the Tradepak industrial site in the early hours.

Fifteen fire engines were deployed as the flames spread to a neighbouring building.

Emergency services initially warned that there was a risk of toxic smoke due to to "potentially hazardous chemicals" on the site.

But they later said that residents in the city centre should keep windows and doors closed "as a precaution" until smoke from the fire clears.

West Yorkshire Police said: "Emergency services are currently attending a large-scale fire at Albion Way in Leeds. 

"Police were called at about 2.34am this morning to respond to the incident, which is taking place at a business on the site. A number of fire engines are currently attending."   

The Armley Gyratory road has been closed due to smoke from the fire.

More follows...

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Teen Thrown Around Ride Like A 'Rag Doll'

A teenager is recovering in hospital after falling 15ft from a fairground ride in Worthing, Sussex.

Beth Thorpe, 18, suffered bruises, head and neck injuries after slipping from the Rocker ride on Marine Parade on Thursday night.

A witness to the incident said Miss Thorpe was flung around like a "rag doll" during the ride before coming out of her seat.

Friend Faith Paine, 18, told The Argus newspaper: "Seconds after the ride started she was flung about like a rag doll and started foaming at the mouth, immediately I knew something was wrong.

"She then started to come out of her seat as her body turned to jelly and just slipped out. I was trying to scream stop and help, but it was too late.

"It was without a doubt the most horrific thing I have ever seen in my life."

Miss Thorpe suffered cuts, grazes and bruising in the accident

The A Level student was later taken to the Royal Sussex Hospital in Brighton.

Her father, Robert Thorpe, said: "It was traumatic for her and it's traumatic for us, we are just happy she is recovering, I could have lost my child.

"She has got bruising, cuts and grazes all over her body.

"We do not know exactly what happened, we weren't there, we just got a phone call and all we know is that she was flung out of the ride and she blacked out."

A spokesperson from Worthing Borough Council said: "Following an accident on a fairground ride at Worthing seafront our thoughts are with the woman injured in the accident and her family.

"We wish her a full and speedy recovery. We are grateful to the emergency services who attended the scene promptly.

"The fairground ride operators and Worthing Borough Council will fully co-operate with the Health and Safety Executive (HSE) and relevant authorities into the investigation that will take place.

"In the meantime, the ride will remain closed until HSE clearance is received to reopen the ride. At the current time we are unable to confirm when the investigation will be completed."

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Teachers Warn Of 'Constant' CCTV Surveillance

Teachers say they are being subjected to constant surveillance by CCTV schools supposed to keep pupils safe.

A poll conducted by the NASUWT union has revealed 8% of 7,500 members questioned said classroom cameras record their lessons and their performance is being monitored by school leaders.

The survey comes as delegates attending the union's annual conference in Birmingham discuss a motion suggesting there is too much surveillance of teachers.

Teachers have complained the cameras are being used to judge performance

It says the monitoring is unreasonable, without justification, and adds little value to pupils' progress.

The motion adds: "Its impact is to stifle creativity in education, disempower teachers, put procedure before purpose and increase the workload of teachers."

One teacher said of their school: "CCTV has been used against staff to imply they are handling a situation incorrectly even though the CCTV has no sound."

Another said: "In my school it has been used specifically with newly qualified teachers that the senior leadership team think are not performing well."

Nearly 90% of teachers who have CCTV in their classroom say they cannot switch the cameras off and 40% claim the recordings are monitored by school leaders and the footage used to make judgments about staff performance.

NASUWT general secretary Chris Keates said: "Teachers are already wrestling with excessive monitoring, masquerading as classroom observation, carried out by senior management and a host of other people regularly visiting their classrooms.

"The stories teachers recounted to us in the survey are a shocking catalogue of professional disrespect and unacceptable intrusion.

"No other professionals are subjected to such appalling treatment; no one should be subjected to the stress and pressure of being watched constantly. Lab rats have more professional privacy."

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Teacher's Strike Possible If Talks Break Down

Teachers are considering a fresh walkout just weeks after strike action forced schools across England and Wales to close.

Members of the National Union of Teachers (NUT) meeting for their annual conference today will debate the possibility of industrial action next term unless "significant progress" is made in talks with the Government.

NUT general secretary Christine Blower said: "We have a motion that's going to be put to delegates which envisages industrial action in late June if we don't make progress in the talks with the Government in May.

"But the first priority is for a minister to actually come to those talks and we'd like to make progress on a list of things."

That list includes performance-related pay due to be introduced from September, heavy workloads and pensions.

The national walkout on March 26 saw 12% of schools shutting their doors, according to the Government, but thousands more were disrupted.

Any further strike action would be held in the week starting Monday, June 23 after the majority of GCSEs and A Level exams are over.

Teachers gathering for the conference called on Education Secretary Michael Gove to listen to their concerns.

"Certainly I will be thinking about voting to strike," said one. "Where I work people are concerned about the work loads, targets and the pressure Government puts on teachers."

Last month's national walkout organised by the NUT

Another told Sky News: "If Mr Gove would just listen to us and negotiate with us then strike action wouldn't go forward but he has to listen to us."

A poll commissioned by the NUT shows that two thirds of parents support teachers' right to strike.

But for the Lamberti family it smacks of double standards.

Mother-of-two Clare Lamberti said: "We applied for a day's holiday to take the girls away for the weekend and they turned it down.

"They said it would disrupt their education but obviously a day here and a day there for strikes, that's going to disrupt their education.

"One rule for them ... one rule for us obviously."

The National Association of Schoolmasters Union of Women Teachers (NASUWT) is also holding its conference this weekend.

Both unions will be discussing concerns over the growing number of unqualified teachers taking classes.

Of 7,000 teachers surveyed, 53% told the NASUWT they worked alongside unqualified staff. That rose to 61% in academies.

But in a separate poll by the NUT, 82% of parents said schools should only employ qualified teachers.

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British Gas Bonus Claims To Be Investigated

Claims that British Gas workers have been paid large bonuses to inflate customer bills are to be investigated by the energy regulator, Ofgem.

It comes after a former employee claimed the energy company encouraged its sales staff to sign up charities, churches and small businesses to its highest-priced tariffs in order to boost their own earnings.

British Gas has strongly denied the allegations.

The whistleblower, who worked for the company between 2010 and 2013, told the Daily Mail the firm's policies were designed "to rip off" customers.

He claimed sales agent typically earned between £4 and £37 in commission per deal if they persuaded existing customers to renew contracts.

But by moving a customer to a more expensive deal they could earn more than £400 a time, he alleged.

"People were desperate to make the salaries they had been promised, so everyone inflated the prices," he told the paper.

"Scout clubs was a favourite one; churches, charities, small businesses, where people would just go for the maximum 5p notch-up," he added.

Ofgem will investigate whether the sales activities were 'honest and fair'

A British Gas spokeswoman said: "British Gas strongly refutes any suggestion that employees are paid commission on any prices charged to residential customers."

British Gas Business managing director Stephen Beynon said his sales agents are paid commission, but he denied any suggestion that contracts were negotiated inappropriately.

"This is a highly regulated market, and every part of the sales negotiation process is closely monitored," he said.

"Sales agents in British Gas Business do receive commission, but we are reducing its importance.

"We're leading the way in addressing the variability in price that customers face in this market, and we'll continue to do so."

Ofgem said in a statement: "There are strict rules in place which require suppliers to take all reasonable steps to ensure information provided is accurate and not misleading, and that sales activities are conducted in a fair, honest, transparent and professional manner.

"Ofgem is an evidenced-based regulator and we would encourage anyone with information that an energy company is not complying with Ofgem rules to provide us with this."

The allegations come days after Ofgem fined British Gas Business for a series of failures including blocking firms from switching to other suppliers.

Ofgem said British Gas Business would pay a total penalty of £5.6m of which £800,000 would be in fines, on top of £1.3m already paid to 1,200 customers who paid higher bills because they were not notified when their contracts were due to expire.

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Axelrod Role Is 'Seriously Bad News For Tories'

The man credited with masterminding Barack Obama's back-to-back presidential victories will play a key role in Ed Miliband's General Election campaign.

David Axelrod's appointment has been described by the Labour party as "seriously bad news for the Conservatives".

Mr Miliband said: "It's excellent news that David has agreed to help One Nation Labour win the next election and build our campaign to change Britain so hard-working people are better off.

"He will be a huge asset to our campaign as we work to show the British people how we can change our country for the better."

Following the announcement, Mr Axelrod said: "I've had several conversations with Ed Miliband over the course of the last year in which I have been struck by the power of his ideas, the strength of his vision and the focus he brings to solving the fundamental challenge facing Britain.

"We can't just have prosperity hoarded by a few where people at the top are getting wealthier and wealthier but people in the middle are getting squeezed."

He will work alongside Douglas Alexander - Labour's shadow foreign secretary and the chair of Labour's general election strategy

Mr Axelrod will arrive in London next month for two days of strategy meetings with Mr Miliband, deputy leader Harriet Harman, and other senior shadow cabinet members.

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House Price Increases Create 'Generation Rent'

By Siobhan Robbins, Sky News Reporter

The booming housing market is causing a generation of young people to become inreasingly pessimistic about their chances of getting on the property ladder, according to a new study.

Halifax's 'Generation Rent' report found that despite the launch of schemes like Help to Buy to give a boost to people with small deposits, 36% of 20 to 45-year-olds felt they have no realistic prospect of owning their home in the next five years.

Around half of those polled in England, Scotland and Wales agreed Britain will become a nation of renters in the next generation and 20% of people aged 23 to 27 said they have no desire to own their own home.

A fifth of people surveyed said they had no desire to own their own home

Caroline Hill, 23, told Sky News she would rather rent than buy.

"I can see myself being able to buy in the future but I'm just really not interested in doing so," he said.

"My parents have always been renters and I think that has had a big effect on the way I feel about it."

Danny Palmer, 27, is frustrated the market is running away from him.

"I think it's going to be really difficult for me to get onto the property ladder purely because rent these days is taking up about 40% of my salary, and that's before bills, living costs and anything else," he said.

Estate agents say high prices mean potential buyers are moving into rentals

Halifax mortgages director Craig McKinlay, said: "We may be heading towards the point where the aspiration to own a nice home will be replaced by the aspiration to simply live in one.

"It seems that people are now beginning to accept a lifetime of renting and this would not only change the way the property ladder looks in the future, it could even bring into question whether or not it will exist at all for some people."

The report warned that any future collapse in the number of first-time buyers - the "life blood" of the housing market - will have a knock-on impact on people trying to move up the property ladder.

If some existing home owners are unable to trade up because of a lack of potential buyers for their property, the market will be brought to a standstill, the report warns.

Woking estate agent Yassar Latif, said: "People who were thinking of buying, but have been let down by the rise in prices, have moved towards rentals now."

The Government has said that Help to Buy and plans to build more houses should ease the problem. But despite this, only around 30% of the people polled believed Help to Buy was working.

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