How’s he doing?

 
Ed Miliband

There has been blanket coverage of the coalition’s first anniversary, but how has Ed Miliband’s Labour Party performed in its first year in opposition? Five experts give their verdict.

LEADERSHIP

Ed Miliband beat brother David to the Labour leadership in September 2010 by the narrowest of margins.

“Ed Miliband’s always, and rightly, careful to say Labour’s taken only the first small steps on its return journey to power. He could fairly say the same of his own mission to become prime minister-in-waiting.

“Polls show Ed Miliband lags behind Mr Cameron on many qualities of leadership”

John Pienaar

“Yes, he’s acknowledged on all sides to be an intelligent and thoughtful politician, qualities which don’t always coincide.

“Miliband also appears comfortable in the company of ‘ordinary’ people; more than could be said, frankly, of his former boss and mentor, Gordon Brown (a relationship David Cameron will never allow him, or us, to forget).

“He’s often at his best in his weekly Commons jousts with Cameron at Question Time. Taking on and defeating brother David for the leadership showed a streak of ruthlessness.

“But he has yet to ‘punch through’, in the jargon, in his efforts to give new definition to Labour, or himself.

“His claim to be the champion of the ‘squeezed middle’ may have potential. So far, it’s more often been derided as being so vague as to be meaningless.

David MilibandEd Miliband is often at his best in the House of Commons

“And owning up to Labour’s past errors in handling such issues as immigration, financial regulation and the balance between services and manufacturing has simply amplified the demand for Miliband to set out what Labour thinks – and would do now – given the opportunity. The row over spending cuts has stuttered on like a stuck record for months. Miliband condemns cuts. Coalition ministers demand to know what he would cut instead.

“Polls show Ed Miliband lags behind Mr Cameron on many qualities of leadership. And Labour’s current lead over the Conservatives is measured in small single figures.

“All this may change, when the effect of spending cuts kicks in, and public opinion polarises. Miliband still has time. The coming year will be important in defining the Labour leader, and just as importantly, perceptions of his ability to run a country.”

POLICY

In November, Labour launched a two-year policy review to move the party beyond New Labour and reconnect with voters.

“All parties wipe the slate clean on their policy commitments after general election defeats. It is part of the process of coming to terms with losing and reconnecting with the electorate.

“Ed Miliband’s single biggest task is to restore the party’s economic credibility”

Nick Pearce

“This time, however, Labour has a bigger task than it has faced for a generation.

“In most of Europe, social democratic parties are in retreat, shedding votes and losing power. The aftermath of the Great Recession has not re-energised the left, as many hoped and expected. Instead, it has emboldened right-wing forces.

“Labour shares in this wider malaise, confronting the difficult electoral reality of a fractured voting coalition and the splintering of allegiances to the two main parties.

“It has also to reckon with its own record in power: how much does it defend, criticise or move beyond?

Parents kiss babyLabour wants to reconnect with the concerns of ordinary families

“Neither a shift to the left nor a ‘one-more-New-Labour heave’ look like plausible electoral strategies. But if that is so, what is the core political direction Labour wants to follow?

“What is the strategy that can compare with Tony Blair’s New Labour shift to the centre-ground?

“And what does this mean for the big component parts of the political identity of the Labour Party?

“Will it be more interventionist on the economy, more liberal on the state and more conservative on community life?

“Ed Miliband’s single biggest task is to restore the party’s economic credibility. It has lost the argument with the public on the deficit.

“Can it win the argument on growth, living standards and Britain’s economic future?”

PRESENTATION

In December, Ed Miliband appointed former Times journalist Tom Baldwin as his communications chief, assisted by former Daily Mirror man Bob Roberts.

“Ed Miliband now has an experienced and effective team of media experts who have helped sharpen up his performance and improve his image.

“Very soon Miliband and his team must start making news and not just appearing for a ritual comment in stories about the other parties”

Lance Price

“In the first year after an election the voters rarely want to hear much from the losing party.

“It is very hard to put across a positive message and so Miliband has been forced to spend most of his time reacting to the Tory-led coalition government’s policies and statements.

“As a result people know what Ed Miliband is against but have very little idea what he’s for.

“Although the next election seems a long way off, Labour can’t afford to be simply reactive any longer.

“Miliband has to explain what a Labour government under his ‘new generation’ leadership would be like, what it would do differently, what it would offer the country that the coalition doesn’t.

“Simply promising to cut less severely and less quickly isn’t enough.

“Very soon Miliband and his team must start making news and not just appearing for a ritual comment in stories about the other parties.

“Labour’s policy review is a long process. He can’t wait until it’s over. The time to start making an impression in his own right is now.”

Lance Price’s latest book, Where Power Lies, is out in paperback

ELECTIONS

Thursday, 5 May was the first big electoral test of Ed Miliband’s leadership.

“The results of the May 2011 elections presented a mixed bag for Labour.

“Labour ripped the heart out of the Lib Dem vote in many of the great cities”

David Cowling

“In Scotland, the SNP stormed to outright victory but largely off the back of taking votes from other parties rather than from Labour. But this was small consolation as Labour seat after Labour seat fell in its traditional heartlands.

“In Wales, they ended just short of outright victory but still managed a 10-point increase in their vote share compared with 2007 when the last Assembly elections were fought.

“In the English local council elections, the picture was more complicated. Labour ripped the heart out of the Lib Dem vote in many of the great cities but the reason their net gain of 839 seats fell short of an anticipated 1,000 was the remarkable resilience of the Conservative vote.

“The collapse of the Lib Dems delivered up gains to both Labour and the Conservatives. And in the end, Labour’s performance weakened the further south it went.”

OPPOSITION

A key part of being the official opposition is holding the government to account.

“Adapting to being in opposition is always a tough challenge, mixed with a fair bit of personal trauma.

“the uniquely personal circumstances of Ed Miliband’s victory over his brother mean he has struggled to assert his authority and convey a sense of direction”

Nigel Fletcher

“Former ministers, who have grown accustomed to the world of chauffeured cars, red boxes and thousands of civil servants serving them, suddenly find themselves on their own, with no support and few people to care what they have to say.

“Like many before them, Labour MPs were able to divert themselves with the activity and excitement of a leadership contest, giving them the illusion of meaningful activity.

“But this only postponed for a few months the day when the reality of being out of power dawned.

“New Leaders usually have something of a honeymoon, but the uniquely personal circumstances of Ed Miliband’s victory over his brother mean he has struggled to assert his authority and convey a sense of direction.

“Whilst many frontbenchers have taken to the job of attacking the government with gusto, the recent election results have perhaps shown that a positive alternative has yet to emerge.”

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

South Africa holds crucial vote

South African President Jacob Zuma (C) salutes the crowd on May 15, 2011 during a ruling African National Congress (ANC) political meeting in Soweto ahead of local electionsMr Zuma warned South Africans their ancestors would not forgive them if they voted against the ANC
Related Stories

South Africans are going to vote in local elections after one of the most bitterly fought campaigns in years.

The delivery of basic services like water, housing and jobs have been among the issues dominating campaigning.

The ruling African National Congress (ANC) controls all South Africa’s nine provinces but the Western Cape.

Analysts say the ANC remains the strongest party, but it is the first time since the end of apartheid in 1994 it has faced such stiff opposition.

The BBC’s Pumza Fihlani in Johannesburg says it is one of the most hotly contested provincial elections in recent years.

The battle for control of the key economic provinces like the Western Cape, currently controlled by the Democratic Alliance, and Gauteng has seen mud-slinging from party officials and aggressive door-to-door campaigning by senior party officials to rarely visited parts of the country, she says.

Last week, President Jacob Zuma warned his countrymen that their ancestors would never forgive them if they voted against the ANC.

map

A row over uncovered toilets has also proved embarrassing for all parties.

“This is the first election in which we’ve really seen a concerted attempt by the official opposition to compete for the black vote and the real test is whether black voters are biting,” Steven Friedman from the Institute for Democracy in South Africa told the BBC’s Focus on Africa programme.

“It’s certainly a propitious time for the opposition – there’s a lot of feeling by grassroots supporters of the ruling party that the political leadership are only interested in themselves and other politicians that they’re not interested in voters,” he said.

“Of course we’ve had six years of grassroots protests in municipalities directed at municipal governments which feel that don’t respond to them and don’t listen to them.”

He said the polls were important in terms of South Africa’s maturing democracy.

“We’re not really going to have an effective democracy in this country until politicians are more accountable to voters, if you have a ruling party which wins with thumping majorities every time it’s very difficult for there to be accountability,” Mr Friedman said.

But correspondents say ANC supporters are fiercely loyal and though there may be disappointment at the slow pace of delivery, many voters may not yet feel ready to switch sides.

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Ministers want revenge – police

Police officersPolice face cuts of up to 20% across England and Wales
Related Stories

Ministers are seeking “revenge” on the police for foiled attempts to reform pay in 1993, the Police Federation of England and Wales’ chairman is to say.

Budget cuts are hitting police numbers and those remaining face a pay freeze and changes to allowances and pensions.

Paul McKeever will tell delegates at the federation’s annual conference in Bournemouth that the plans amount to “be kind to criminals, kick a cop”.

The home secretary is expected to defend the plans at the conference.

Theresa May is expected to say they are essential as part of the spending review – but she also wants to work with the police on cutting red tape and finding ways to modernise the job.

However, officers say they feel under attack from the government on a range of fronts.

Officer numbers are falling after reaching record highs and central government funding for police is being cut by a fifth under the Spending Review.

Ministers have also backed a far-reaching package of reforms which they say will modernise pay and conditions and award talented hard-working frontline officers.

“This government, to put it bluntly, hate the police service and want to destroy it in order to rebuild it again, but in their image”

John Giblin, Police Federation

But chief constables are struggling to make the cuts work and the Chief Inspector of Constabulary has warned that some forces will find it difficult to reduce budgets without cutting the frontline.

Mr McKeever is expected to tell the conference that the reforms being pushed by the coalition amount to “payback” for their successful campaign against similar proposals during John Major’s Conservative government.

The 1993 Sheehy report called for performance-related pay, cuts in overtime and fixed-term contracts. The Police Federation argued against it, saying policing was a unique job with exceptional risks. Most of the package was scrapped after officers staged a rally at Wembley Arena.

The home secretary’s visit to the conference comes after a stormy first day. Opening the conference, a leading member of the Police Federation accused the government of “hating” the police and wanting to “destroy” the service.

John Giblin said: “We acknowledge that some cuts are necessary due to the parlous state of the country’s finances, but we feel greatly let down that we are not considered to be a protected priority area by the government.

“They have and will continue to spew out that much-abused mantra that we have to be more effective and efficient, but don’t be fooled by this insincere, nihilist, smoke and mirrors, slash and burn policy, for it is in large parts economics and in greater part ideology.

“This government, to put it bluntly, hate the police service and want to destroy it in order to rebuild it again, but in their image.”

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

‘No hold up’ from nuclear review

Richard BlackBy Richard Black

Hinckley Point power stationMost of the UK’s reactors have been built on coastal sites, raising fears about flooding
Related Stories

A safety review of the UK’s nuclear industry, to be released on Wednesday, is expected to give a broad all-clear to current reactors and future plans.

Energy and Climate Secretary Chris Huhne commissioned the report in the wake of the Fukushima crisis in Japan.

Chief nuclear installations inspector Mike Weightman is expected to raise issues that should be explored further but will not affect new-build plans.

Estimates of the Fukushima compensation costs run to $100bn (£61bn).

But the Weightman report is expected to conclude that events resulting in a similar scale of damage are unlikely in the UK.

It will recommend continuing to allow multiple reactors on power station sites, BBC News understands, despite reports that the situation at Fukushima may have been exacerbated when explosions in one reactor building caused damage in others nearby.

It is understood that Mr Weightman will endorse government plans for an independent Office of Nuclear Regulation (ONR), formally announced at the beginning of April.

He is currently executive head of the office inside the Health and Safety Executive (HSE), and it is not clear whether he is in the running to lead it once it becomes independent.

Although reportedly running to 145 pages, this is described as an “interim” report.

Fukushima reactor buildingThe Fukushima incident has triggered a nuclear re-think in many countries

The final version, incorporating comments from industry and other interested parties, is due to be published in September.

At the weekend, the giant energy company EDF, which is planning to build the first of the UK’s new nuclear plants, told newspapers that it was planning a major push to “sell” nuclear power to the UK public.

An opinion poll published in March, shortly after the Fukushima saga began, showed that support for the technology had diminished in the UK.

However, more people supported than opposed the building of new nuclear power stations.

Many countries have announced reviews of their nuclear industries following the Japanese crisis, with the German government intent on closing its remaining reactors.

Environmental groups say that with the situation at Fukushima still not completely under control, and with revelations still emerging about Japanese companies having resisted warnings about earthquake damage down the years, it is too soon to make a final judgement.

“With brave emergency workers still battling to bring Fukushima under control, and no analysis yet from international nuclear authorities, it will take many months or even years before the lessons can be properly learned,” said Doug Parr of Greenpeace.

“The interim safety report can only begin to ask the questions; it’s inconceivable that a credible comprehensive report can be delivered by September.”

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Libyan oil minister ‘defects’

Shukri Ghanem (file picture)Mr Ghanem is a former prime minister

Libyan Oil Minister Shukri Ghanem is said to have left the country for Tunisia, amid uncertainty about the reasons for the reported visit.

Tunisian officials say he crossed the border on Saturday to go to the island of Djerba. He was later reported to have left for an unknown destination.

The Libyan rebels say they do not know if Mr Ghanem has defected or not.

The Libyan government said he had been on official business in Tunisia, but had since had lost touch with Tripoli.

“Shukri Ghanem has left Libya,” a Tunisian official told AFP news agency. The official added that Mr Ghanem had gone to a hotel in Djerba on Saturday but “not tried to contact the Tunisian authorities”.

However a staff member at the hotel told AFP that Mr Ghanem had checked out with his family early on Tuesday.

Libyan government spokesman Moussa Ibrahim said Tripoli had lost contact with him.

Mr Ibrahim told the New York Times newspaper that the government’s fight against rebels “doesn’t depend on individuals, even if they are high-ranking officials”.

Mr Ghanem is also the head of Libya’s National Oil Corporation and a former prime minister.

A number of senior officials have abandoned the government of Libyan leader Col Muammar Gaddafi since the start of uprising in February – including Foreign Minister Moussa Koussa, Interior Minister Abdul Fattah Younis, Justice Minister Mustafa Abdel Jalil, and a number of ambassadors.

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Old Dogg, new tricks

Snoop DoggSnoop Dogg burst onto the hip hop scene in the early 1990s
Related Stories

US hip hop star Snoop Dogg on the global dominance of hip hop, working with country legend Willie Nelson and why he recorded a charity single with Charlie Sheen.

Snoop Dogg settles himself down into an enormous golden throne and raises a mug emblazoned with a union jack.

“Fancy some tea?”

It is clear from the outset this is to be no ordinary press conference.

Snoop Dogg has taken over a central London “gentlemen’s club” to meet UK journalists to promote his new album and UK tour.

“I like doing the different and the edgy.”

Snoop Dogg

His arrival in the chandelier-lit nightspot is preceded by several girls gyrating on a pole next to his throne.

It’s like walking onto the set of a Snoop Dogg music video.

When he does appear, the rapper – also known as Calvin Broadus – is quick to thank the fans who fought to get his UK travel ban lifted last year, allowing him to play at Glastonbury.

The artist was denied a UK visa in 2007 after a fracas at Heathrow Airport involving members of his entourage.

Snoop Dogg is something of a music industry survivor, having burst onto West Coast hip hop scene with 1993’s Doggystyle.

2011 sees the release of his 11th album, Doggumentary – an eclectic 21-track record that features guest spots from the likes of Kanye West, Bootsy Collins, Gorillaz, T-Pain and David Guetta.

Sweat, his single with Guetta, has spent several weeks in the Top 10.

‘Easiest job’

So how much has music industry changed since Doggystyle?

“It’s become more commercialized and more open to rappers and hip hop,” Snoop tells the BBC. “When I first came hip hop was the bad boy of music. It wasn’t cool to listen to.

“Now hip hop is a part of everything that’s moving – whether it’s sports, TV, entertainment – you have to incorporate hip hop or your thing won’t sell.”

The 39-year-old musician admits he has “the easiest job in the world”.

“I love all music,” he says. “I don’t like staying in one lane and doing the short, sweet and simple. I like doing the different and the edgy.”

That may explain two of Snoop Dogg’s recent collaborations.

Doggumentary’s most unlikely guest-star is American country legend Willie Nelson, on the track Superman.

“I fell in love with his music as a kid,” the rapper explains.

“Once I was able to make records I found that we were in the same circle: Willie’s got long hair with braids, he likes to do the herbal essence… so it was natural for me and him to come together.

“We created a song that was in his vein – I didn’t want to create a hip hop song and put him on it.”

‘Little bit of crazy’

Earlier this month, Snoop Dogg released Winning – a charity single with Charlie Sheen for the victims of the US tornadoes.

The track was recorded during Sheen’s recent stand-up tour around the US. The actor had been making headlines after he was sacked from US drama Two and a Half Men in March following a series of public outbursts.

“Hip hop’s grown out of one little box in the Bronx.”

Snoop Dogg

Was Snoop Dogg worried how people might react? “I don’t judge my friends by what other people say about him,” he replies.

“He called me over for a session and as a friend I came for him. He needed real people to stand by him to show that he wasn’t as crazy as people said he was. Everybody’s got a little bit of crazy in them.”

Asked for his opinion on the X Factor and American Idol, Snoop Dogg takes the opportunity to plug his own idea to find the kind of “raw talent” that isn’t reflected on primetime TV.

But it’s on the relevance of hip hop to today’s audience where he becomes most passionate.

What does he think about criticism that older rappers talking about brands like Gucci have no meaning to kids on the street?

“We nurtured hip hop from the beginning. It’s grown into different walks of life. I go to different countries and I see how people take hip hop and they make it theirs.

“It was created by the youth for the youth and as hip hop grows it’s going to be played with and tampered with, but it’s grown out of one little box in the Bronx.”

Asked if Doggumentary will be his final album, Snoop Dogg doesn’t hesitate, although his face remains impassive behind his shades.

“No baby, because this old Dogg is always up for some new tricks.”

Doggumentary is out now. Snoop Dogg’s single Boom (featuring T Pain) is out on 27 June. Snoop Dogg headlines the Lovebox Festival on Saturday 16 July.

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Young, keen and jobless

17 year old RebeccaRebecca says getting a job as a shop assistant is proving difficult in the current economic climate
Related Stories

With unemployment figures for Britain released on Wednesday, young people have been hit hard by the economic downturn.

Among the steady stream of people walking in and out of the Jobcentre on the corner of Kennington Park Road in south London is a smart young woman.

On the face of it, Liyana Solomon looks like she has the world at her feet.

Twelve months ago, the eloquent 22-year-old spent her time applying for graduate level jobs in business development, but as time has passed she has lowered her aspirations.

She has recently been filling out applications for customer service roles and even made enquiries at her local coffee shop.

Now, Miss Solomon has been forced to sign-on for the first time in her life.

“I’ve put it off for nearly a year now but I really, really need the money,” she says.

“I’m such a proud person. I hate the idea of depending on the state for benefits.”

Since the recession began, the number of unemployed recent graduates has doubled to 20%, according to the Office for National Statistics.

“I can’t get a job here so I’m going to go to Greece to live and hopefully get a bar job”

17-year-old Rebecca

Graduate unemployment is now at its highest level in over a decade.

And it is not just university graduates who are finding it difficult to get work. More than one in five of all 16-24-year-olds are currently jobless.

The government’s policy is to retrain unemployed people, both young and old, on courses provided by the private sector.

A4e is one such company and at its £150,000 flagship centre in Brixton, around 100 youngsters currently attend classes to learn vocational skills including hairdressing and beauty, bricklaying and hospitality.

“The aim is to equip them with skills for entry level roles, for example in restaurants or in a hotel,” says Denise Leander, the operations manager.

While Miss Leander admits they have yet to get anyone into a such a job since the centre opened last June, she insists: “We have got a couple of young people who are waiting to move onto apprenticeships as a result of their experience here.”

But a lack of qualifications and training is not something Miss Solomon has.

21 year old Nathan MorrisonNathan Morrison says despite applying for more than 100 jobs he has had only had five interviews

She says she has been to more than 20 interviews since the new year and applied for countless other jobs.

“I’ve been looking for a job now for almost a year and it brings you down. It’s all very, very stressful.”

She insists she remains optimistic, citing a recent advert she has seen for a six-month internship at a medium-sized IT company, which she intends to apply for.

Miss Solomon knows that, at best, the internship would pay her lunch and travel expenses, but she believes it would be a foot in the door if she were lucky enough to get it.

“Sitting at home, doing nothing, is mind-numbing. I just want to work.”

She plans to fund herself by getting jobseeker’s allowance, but admits she is not sure that it will be allowed.

To get the benefits, she says she has been told she will have to sign on at the Jobcentre every two weeks and prove she is committed to getting a paid job.

“I think long-term this internship could stand me in good stead to get a job I am qualified to do, but whether the system will actually fund me to do it is another thing.”

Nathan Morrison, who is 21, has the added pressure of providing for his young child and partner, who recently lost her job.

The well-presented young man finished his IT diploma last summer and managed to find work straight way.

But he said he had to quit in December because the four-hour round-trip commute was too much of a strain.

Young people learning cookery skillsUnemployed youngsters at A4e’s centre in Brixton are able to learn how to run a hotel-style kitchen

Since then the young father reckons he has applied for more than 100 jobs.

“It’s not only IT jobs I’ve been applying for. I’ve been looking at all types of work, including shop work.

“My strong point is my communication and personal skills but employers don’t get to see that unless I get an interview. And I haven’t been getting very many of them – maybe five since December.”

Mr Morrison says making ends meet is a real struggle. He claims he has not had a night out in over a year because he simply cannot afford it, while “snacks and treats are strictly off limit”.

It is difficult to imagine how the unemployed will not adversely be affected by the government’s recent plan to close 22 Jobcentre Plus offices.

Ministers insisted the decision would not affect frontline services, but the PCS union condemned the move as “deeply flawed and dangerous”.

Meanwhile, busy working away in A4e’s fashion workshop is 17-year-old Rebecca, who is cutting material for one of her designs.

“I love fashion and retail, but I can’t even get a job as a shop assistant,” says the teenager.

“The government should give firms money to help subsidise the cost of employing graduates like me, so that we can get the experience we so desperately need”

Liyana Solomon

“I’ve applied for around 100 jobs since the new year. Not many shops will take your CV anymore but I still walk in and ask them if they’ve got any work going, especially the smaller ones.”

Rebecca says that once she turns 18, she is going to leave the country.

“I can’t get a job here so I’m going to go to Greece to live and hopefully get a bar job out there for three months. I feel I need to get away and reboot myself.”

She might not find much luck though getting work in tourist resorts like Faliraki and Malia. Greece’s unemployment rate is 16%, double that of the UK.

As an economics graduate, Miss Solomon understands the financial predicament the government is in with regard to bringing down the budget deficit.

She accepts it cannot afford to create thousands of public sector jobs to keep people like herself employed, but she does believes more could be done.

“The government should give firms money to help subsidise the cost of employing graduates like me, so that we can get the experience we so desperately need.

“Everyone says I’ve got the qualifications, I just need an opportunity to gain the work skills.”

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

PPI drives record finance claims

Natalie CeeneyChief executive Natalie Ceeney says the Financial Ombudsman Service service has had its busiest year
Related Stories

The Financial Ombudsman Service (FOS) handled a record 206,000 formal complaints in the last financial year – a rise of 26% from 2009-10.

Just over half them, 51%, were about payment protection insurance (PPI).

The 105,000 PPI complaints were a record for any type of financial policy in a single year.

The FOS tries to deal with problems financial businesses fail to resolve themselves.

Its chief executive, Natalie Ceeney, said the service, which started 10 years ago, had had its busiest year to date.

“We have received more calls to our front-line consumer helpline than ever before,” she said,

“And even though we have been able to resolve four out of five problems and enquiries at this early stage – by giving general advice and guidance to over 800,000 people on what to do next – we have still had more consumers come to us with formal unresolved disputes than in any previous year.”

PPI has generated a deluge of complaints for the FOS in the past three years.

“This has made it impossible for us to progress these complaints as quickly as we would like”

Sir Christopher Kelly, Chairman, FOS

The insurance is supposed to cover loan repayments if someone becomes ill or loses their job.

But it has been mis-sold on a mass scale, generating multi-billion-pound profits for the banking industry.

The FOS had previously told the City regulator, the Financial Services Authority (FSA), that many banks were simply fobbing off customers who complained.

But the situation took a turn for the worse last autumn.

Some banks refused to deal with the any new PPI complaints while the British Bankers’ Association (BBA) used the High Court to challenge new industry rules about the sale of the insurance and the way banks should handle complaints about past sales.

The BBA recently lost its case, which should mean tens of thousands of cases on hold are now processed by the FOS or the banks themselves.

But the banks’ procrastination has led to a big backlog at the FOS.

“This legal action against us has led not only to exceptionally high volumes of PPI complaints, but also to growing numbers of cases where the banks behind the challenge have decided not to co-operate fully with us,” said FOS chairman, Sir Christopher Kelly .

“This has made it impossible for us to progress these complaints as quickly as we would like.”

Overall, 51% of the complaints resolved during the year were settled in favour of the customer.

Although the number of complaints about investments fell by 30%, and those about banking by 9%, the FOS said it was concerned about other emerging problems.

Among them are:

more problems with claims for specialist insurance, such as mobile-phone covermore complaints about consumer credit dealsmore complaints about travel and car insurance

The FOS said there was a continuing trend for complaints to become more complex and hard fought, by both sides.

The number of cases that involved an ombudsman’s final decision, rather than just an earlier adjudication, rose from 8% to 11% of all complaints that were resolved.

Unsurprisingly, the biggest banking groups – Barclays, Lloyds, RBS and HSBC – accounted for 51% of all the cases that were dealt with by the FOS.

Meanwhile 3,592 businesses generated just 5% of its workload.

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Schwarzenegger had secret child

Arnold Schwarzenegger and Maria ShriverMr Schwarzenegger and Ms Shriver jointly announced their separation last week
Related Stories

Former California Governor Arnold Schwarzenegger has acknowledged he fathered a child with a member of his household staff more than 10 years ago.

“After leaving the governor’s office I told my wife about this event, which occurred over a decade ago,” Mr Schwarzenegger said in a statement.

Earlier this month the former actor and his wife Maria Shriver said they were separating after 25 years of marriage.

Ms Shriver moved out of their Los Angeles mansion earlier in the year.

In his statement, Mr Schwarzenegger said: “I understand and deserve the feelings of anger and disappointment among my friends and family.”

He and Ms Shriver have four children together between the ages of 14 and 21.

The 63-year-old former governor has maintained a high public profile and worked to revive his movie career since finishing a seven-year run as California governor in January.

The name of the former member of Mr Schwarzenegger’s household staff with whom he fathered the child has not been made public. But reports said she worked for the family for 20 years and retired in January.

In an interview on Monday, before the former governor issued his statement, the woman told the Los Angeles Times that another man, her husband at the time, had fathered her child.

When the Times informed her of Mr Schwarzenegger’s statement later on Monday, the woman declined to comment further.

“I have apologised to Maria, my children and my family. I am truly sorry,” Mr Schwarzenegger said.

Ms Shriver supported her husband during his 2003 campaign, following accusations by more than a dozen women who said Mr Schwarzenegger had groped them in the past.

The former governor responded to the accusations by saying he “behaved badly sometimes”.

The former first couple of California have been married for 25 years and did not mention a cause for the separation when it was announced last week.

Prior to taking office, Mr Schwarzenegger was best known for starring in the Terminator action films.

Ms Shriver, a member of the Kennedy dynasty, left her job as a TV reporter when her husband was elected as governor.

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

PSNI officers’ parents in attack

A car belonging to the parents of a serving police officer has been attacked in the Brandywell area of Londonderry.

It happened at the home of former deputy mayor of Derry Liam Bradley at about 2130 BST on Tuesday night.

Mr Bradley’s home has been targeted on a number of occasions by dissident republicans.

His daughter Kathleen condemned the attacked on her parents who she said were pensioners.

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Eurozone’s talks focus on Greece

A demonstrator sits in front of the Greek parliament during a general strike on 11 MayCrisis-hit Greece is already dependent on IMF and European aid

Eurozone financial ministers are to continue their talks in Brussels, with discussions now expected to focus on dire state of the Greek economy.

Greece got a 110bn euro ($136bn; £94bn) bail-out in 2010, but there is growing acceptance that it was not enough.

On Monday, the ministers approved a 78bn euro bail-out for Portugal.

The talks have been overshadowed by the arrest of IMF boss Dominique Strauss-Kahn in New York, on charges of the sexual assault of a hotel maid.

The IMF has also approved 1.58bn euros in new assistance to Ireland.

Billions of euros from the EU and the IMF should arrive in Lisbon by the end of this month, the BBC’s Chris Morris in Brussels reports.

But attention has already turned back to the first bail-out – that of Greece, our correspondent says.

Olli Rehn

EU commissioner Olli Rehn said loan for Portugal was “an important step”

He adds that the message from ministers in Brussels is clear – Athens has to do much more to restructure its economy and push ahead with a massive privatisation programme.

There is also been plenty of discussion of a second Greek bail-out or moves to lengthen the amount of time Greece has to pay back its huge mountain of debt.

The head of the eurozone group, Jean-Claude Juncker, said a “kind of reprofiling” of Greek debt had not been ruled out, but he eliminated the possibility of a “large restructuring”.

“Greece must still step up the implementation of its fiscal and structural reforms and start implementing the ambitious privatisation programme which is worth about 50 billion euros and do so without any further delay,” said Mr Juncker.

“This is very important part of reducing the debt burden of Greece as the 50 billion euros is equivalent to about 20% of the GDP of Greece.”

However, on Monday the finance ministers were urged to abandon “brutal austerity” as the answer to the Greek debt crisis and instead give struggling nation a a chance to restore their nosediving economies.

In a letter to the ministers, John Monks, the general secretary of the European Trade Union Confederation (Etuc), said: “The Etuc calls on you to immediately change course.”

Mr Monks added: “Brutal austerity, both in terms of public finance and in term of wages, is not working is instead undermining the economies such as Greece and Ireland.”

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.