Cameron Faces Revolt Over Marriage Tax Breaks

Tax breaks for married couples will not be part of next month's Budget, a senior Government source has said.

The news is likely to upset many Conservative backbenchers who have suggested the change should be included in Chancellor George Osborne's next Budget in return for their supporting plans to introduce gay marriage.

The Conservative general election manifesto pledged to introduce a marriage tax break, and the commitment was included in the coalition agreement.

It is expected that one member of a married couple or civil partnership would be allowed to transfer £750 of their tax-free personal allowance to their partner, reducing their tax bill. This would be worth around £150 a year to basic-rate taxpayers.

But the senior Government source flatly rejected the idea of a "quid pro quo" deal, and ruled out a marriage tax break featuring in the Budget.

"It won't be in the Budget but it will be in this Parliament," the source said. "This Budget obviously, with all that has happened in recent weeks and months, will be very much focused on growth in the economy".

Mr Cameron views the introduction of same-sex marriage - which is expected to split his MPs when it is put to a Commons vote next week - as the "Conservative Party delivering the promise it made".

"This is a difficult issue for some in the Conservative Party and he understands the strong feelings that people have, and of course it's a free vote," the source said.

"He is proud of the fact that it's a coalition Government with strong Conservative participation that is bringing forward a modern and progressive change.

"It is good to encourage people to come together and stay together."

David Cameron is said to have 'full confidence' in George Osborne

The source also said Mr Osborne had the "full confidence" of the Prime Minister - insisting he will still be Chancellor at the 2015 general election.

It came as some MPs are said to be circulating a letter demanding that Mr Osborne is replaced as the economy continues to falter.

"He is an extremely successful Chancellor. He is battling very difficult economic circumstances," the source said.

"George Osborne will be Chancellor at the next general election."

The issue of gay marriage is causing Conservative party members to quit in significant numbers, according to The Times.

Backbenchers insist the issue has sparked "serious unrest" among the party's rank and file and are claiming some constituencies have lost as many as 100 card-carrying Tories each.

Conservative headquarters, however, does not hold up-to-date membership records, the newspaper said.

Tory MP David Burrowes told The Times: "There's serious unrest in the grassroots. You cannot avoid the fact that the troops are unhappy. People are drifting away."

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Blackpool Murder: Burning Body Found In Alley

Two people have been arrested after the body of a 16-year-old girl was found burning in an alley in Blackpool.

Police have cordoned off the area around Kirby Road, South Shore, where the body was found, and specialist forensic officers were searching a nearby hotel.

A 22-year-old man and a 20-year-old woman were arrested nearby and are being questioned by police.

Lancashire Police said the victim was Sasha Marsden, a student at Blackpool and Fylde College who lived in the Staining area with her parents.

The senior investigating officer is Detective Superintendent Andy Murphy from the Force Major Investigation Team.

He said: "This is an incredibly difficult and complex enquiry and we are working to try and build up a picture of what happened.

Student Sasha Marsden was reportedly set alight (Pic: Facebook)

"From examining the body, it appears to us that someone has attempted to set fire to Sasha and this is a line of enquiry that we are looking into.

"This is an incredibly difficult time for the family and we are keeping them informed of our investigation. Our officers will be supporting them as they attempt to come to terms with what has happened."

A post-mortem examination was planned for Friday evening.

Carl Evans, owner of the nearby Kimber Guest House, told Sky News he spotted the fire when he walked out into his back garden on Thursday evening.

"I heard the alarms going and saw the smoke, but I thought it was just someone burning rubbish," he said.

He added that some residents had attempted to put out the flames before realising it was a body on fire.

"The lass two doors up said someone seemed to have put something out - like a mannequin - but it turned out to be the body of a 16-year-old girl."

Friends paid tribute to the victim on a Facebook page called RIP Sasha Marsden.

Jordan Silkstone wrote: "Way too young, what this town coming too.. R.I.p huni x."

Emma James wrote: "R.I.P Sasha. I didn't know you very long but you was such a good mate.

"I will miss our little facebook chats. You always knew how to cheer me up when I was down. I hope the people who did this to you get what they deserve. Miss you always beautiful. Xxx."

Anyone with information is asked to call the Major Incident Room at Blackpool on 101 or Crimestoppers anonymously on 0800 555 111.

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Pakistan: Deadly Attack On Army Checkpoint

Militants have attacked an army checkpoint in Pakistan's northwest, killing at least 23 people - including 10 members of one family.

The Pakistan Taliban claimed responsibility, saying the attack on the isolated post at Lakki Marwat was in response to a US drone strike in neighbouring North Waziristan last month, which killed two commanders.

Officials said nine soldiers and four members of the Frontier Constabulary that polices the area died during the initial assault and subsequent crossfire.

Ten civilians - including three women and three children - were killed in a rocket attack on a house next to the camp. Twelve militants also died.

Friday's mosque attack

"Pakistan has been co-operating with the US in its drone strikes that killed our two senior commanders, Faisal Khan and Toofani, and the attack on military camp was the revenge of their killing," a Taliban spokesman said.

He said four suicide bombers targeted the camp in the town of Serai Naurang in the Khyber Pakhtunkhwa province and blew themselves up. More than a dozen soldiers were killed, he added.

The raid followed a suicide bombing at a Shiite Muslim mosque in the northwest on Friday that killed 24 people.

It was the latest in a rising number of sectarian attacks in the country.

Since 2009, the military and pro-government militias have regained territory from the Taliban, who once controlled land a few hours' drive from the capital Islamabad.

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Mexico: Pemex Oil Company HQ Blast Kills 25

Twenty-five people are dead and at least 100 injured after an explosion at the headquarters of Mexican oil company Pemex.

Injured workers were seen being evacuated after the blast at the state-owned firm blew out windows and damaged three floors of the 52-storey skyscraper in Mexico City's commercial centre.

There are reports that as many as 30 people could be trapped in the debris from the explosion, which occurred in the basement of an administrative building next to the tower, where thousands of people work.

Ana Vargas Palacio was distraught as she searched for her missing husband, Daniel Garcia Garcia, 36, who works in the building. She last heard from him at 1pm.

"I called his phone many times, but a young man answered and told me he found the phone in the debris," she said.

The two have an 11-year-old daughter. His mother, Gloria Garcia Castaneda, collapsed on a friend's arm, crying, "My son. My son."

Television images showed people being carried out of the building on office chairs. Most of them showed injuries likely to have been caused by falling debris.

Pemex - full name Petroleos Mexicanos - said in a tweet that several workers were injured in the blast but no one answered at its offices.

The blast happened in a busy central district of Mexico City

There was no immediate cause given for the blast, but in an earlier tweet, the company said it had evacuated the building because of problems with the electricity.

"It was an explosion, a shock, the lights went out and suddenly there was a lot of debris," employee Cristian Obele told Milenio television, adding that he had been injured in the leg.

The main floor and the mezzanine of the auxiliary building, where the explosion occurred, were heavily damaged, along with windows as far as three floors up.

Interior ministry spokesman Eduardo Sanchez told Milenio: "Right now they're conducting a tour of the building and the area adjacent to the blast site to verify if there are any still trapped so they can be rescued immediately."

Maria Concepcion Andrade, 42, who lives on the block of Pemex building, said: "We were talking and all of sudden we heard an explosion with white smoke and glass falling from the windows.

"People started running from the building covered in dust. A lot of pieces were flying."

Police landed four rescue helicopters to remove the dead or injured. About a dozen tow trucks were furiously moving cars to make more landing room for the helicopters.

Streets surrounding the building were closed as evacuees wandered around.

President Enrique Pena Nieto said on Twitter: "I profoundly lament the deaths of our fellow workers at Pemex. My condolences to their families."

Shortly before the explosion, Pemex operations director Carlos Murrieta said on Twitter that the company had reduced its accident rate in recent years. Most Pemex accidents have occurred at pipeline and refinery installations.

A fire at a pipeline metering centre in northeast Mexico near the Texas border killed 30 workers in September, the largest-single toll in at least a decade for the company.

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Fireworks Truck Explodes Killing Five In China

By Mark Stone, China Correspondent

Five people have been killed after an explosion on a truck carrying fireworks caused a road bridge to collapse in central China.

The blast happened on the Yichang Bridge in Henan Province, injuring another eight people, according to state media.

Photographs posted on social media showed at least one large truck lying on its side way below the highway. 

Another photograph showed what appears to be a remarkable escape for other drivers with at least one vehicle seen balancing on the edge of the bridge.

Earlier, it was reported that as many as 26 people were killed.

According to a spokesman from Henan Transport Bureau, five to six vehicles fell from the bridge.

Details of exactly what happened are not clear but witnesses say they saw the truck explode and "about 10" cars blown off the bridge by the blast.

The Yichang Bridge forms part of a busy multi-lane highway in central China. Local media reports claim that the south side of the bridge collapsed completely and cracks have appeared on the northern carriageway.

Witnesses say they saw the truck explode and cars blown off the bridge

If the details of the cause are confirmed to be correct, then the incident combines two tragically common themes in China: badly constructed bridges and an abundance of badly regulated fireworks.

Annually, fireworks form a central part of Chinese New Year which this year falls next weekend.

To a far greater extent than in Europe or America, revellers use fireworks to celebrate, sometimes paying little attention to safety.

A spate of accidents over many years has promoted the authorities to impose better controls on the manufacture, transport, sale and use of fireworks.

For a period, fireworks and their transport was banned in Beijing but regular appeals from the public forced officials to relent.

In 2009, the newly-built China Central Television Building in Beijing was gutted by fire. The cause was confirmed to be fireworks set off inside the building.

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Horse DNA: Burger King Dumps Irish Supplier

Burger King has issued full page newspaper apologies after discovering horse DNA in beefburgers from its supplier in Ireland.

The fast food chain said sorry to customers as it confirmed it was cutting ties with Silvercrest, the food processing plant that supplied contaminated burgers to UK supermarkets.

Burger King said its own tests for equine DNA in its burgers had come back negative and that four samples from the Silvercrest plant that did test positive were from a product that did not make it into restaurants.

The Miami-based chain said the failure to deliver 100% British and Irish beef patties was a violation of contracts.

The UK newspaper ads include a statement from Diego Beamonte, Burger King Corporation's vice president for global quality, who said: "While the Food Safety Authority of Ireland has stated that this is not a food safety issue, we are deeply troubled by the findings of our investigation and apologise to our guests, who trust us to source only the highest quality 100% beef burgers.

"Our supplier has failed us and in turn we have failed you. We are committed to ensuring that this does not happen again."

The Irish authorities said that their investigations had traced filler product used in the burger processing facility to a supplier in Poland.

It contained a mixture of beef and horse off-cuts.

Experts from the Food Standards Agency (FSA) yesterday told the Commons Environment Committee that they could not be sure whether the contaminated burgers were being sold for more than a year.

Aldi is the latest supermarket to suspend supplies over burger content

Bosses at the Food Safety Authority of Ireland (FSAI), who identified and publicised the controversy, and Department of Agriculture chiefs have yet to be questioned at a similar level in Dublin.

At least 10 million burgers were put into storage following the scandal. Silvercrest's parent company ABP Food Group initially said they would be destroyed.

Silvercrest had a contract to supply Burger King in the UK, Ireland and Denmark. It is understood the deals with the fast food chain and Tesco were worth in the region of £39m.

The Ballybay processing factory, closed since the scandal broke two weeks ago, employed 112 people.

Burger King said it had carried out its own internal investigation including scientific tests, inspection of the Silvercrest facility and scrutiny of traceability records over the last fortnight.

It has been using approved suppliers from Germany and Italy as a precaution since.

Burger King's apology came after Aldi suspended its contract with beefburger supplier Dalepak, having found small traces of horsemeat DNA in its products.

The supermarket withdrew three beefburger lines earlier this month after traces of pig meat and horsemeat were discovered, and launched an investigation.

"Aldi UK's customers are our absolute priority," a spokesman said. "This is why we immediately withdrew these products until such a time that we could verify that there was no risk to our customers.

"We are deeply angry and feel let down by our supplier and we are pursuing more tests until we are certain that we understand how the production line was contaminated."

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Brazil Club Fire: Owner Blames Whole Country

The co-owner of a Brazilian nightclub where more than 230 people died in a fire is blaming "the whole country" for the disaster, his lawyer said.

Jader Marques said his client Elissandro Spohr "regretted having ever been born" because of his grief over the inferno, but that he blamed the tragedy on "a succession of errors made by the whole country".

Police have said a country music band performing at the Kiss nightclub in Santa Maria lit a flare that ignited flammable soundproof foam in the ceiling.

Those trying to flee were further hampered by a catastrophic lack of fire alarms and sprinkler systems. The club also had only one working door and a faulty fire extinguisher.

Mr Marques said: "My client's responsibility is having trusted too much in the inspectors and in those responsible for the construction."

A woman urges changes to the law so the tragedy can not be repeated

He also claimed public officials had signed off on the club's layout.

Brazil's Health Minister Alexandre Padilha has urged survivors to be on alert for symptoms of "chemical pneumonia" after the number of people injured rose to 143 following 22 new hospital admissions for the condition.

The blaze has also claimed another life - a 21-year-old man with burns covering 70% of his body whose brother was also killed in the club.

The G1 internet portal quoted their mother Eliane Goncalves as saying: "When they went out at night, I blessed them.

"I asked myself how I would be able to sleep with both my boys out. But what could I do, follow them? God bless them."

Police have detained Spohr, the club's other co-owner and two musicians who were playing in the club when the fire broke out, and are holding them for five days as part of the investigation.

Spohr is recovering from a respiratory infection and is said to be suffering from depression in police custody at a hospital in a nearby town.

Large crowds have gathered near the nightclub's charred exterior

Mr Marques denied reports that overcrowding helped cause Sunday's tragedy, insisting there were only 600 to 700 people in the club at any one time. 

Capacity for the 615 square metre nightspot stood at less than 700, though the band's guitarist told media that the space was packed with an estimated 1,200 to 1,300 people. Police have given similar estimates.

Authorities have said that of the 143 people still in hospital, more than 70 are still in life-threateningly critical states.

The governor of Sao Paulo has responded to calls for tighter regulation by ordering more thorough inspections of venues including nightclubs, cinemas and theatres.

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GCSE Plans 'Could Harm Less Able Pupils'

By Liz Lane, Sky News Reporter

Plans to axe GCSEs in England could fail to help less able pupils and leave some subjects with discredited qualifications, MPs have warned.

The Commons Education Select Committee agrees that significant improvements are needed.

But it claims the Government has failed to prove its case for scrapping the qualification.

GCSEs will be replaced by English Baccalaureate Certificates, with teaching beginning in 2015, and the first exams in English, maths and sciences taking place in 2017.

GCSEs in history, geography and languages will be replaced by EBCs at a later date, and GCSEs are set to remain in other subjects.

Committee chair Graham Stuart warned ministers they could be being too hasty.

"Slow down a little. Don't allow educational reform, which has impact for generations to come, don't let that be driven by a political timetable."

Education secretary Michael Gove has said the changes will modernise the exam system.

But Jacques Szemalikowski, head teacher of Hampstead School in north London, is not so sure.

Mr Gove says the exam system needs modernising

"The Secretary of State says the idea of a risk is not a reason not to proceed, well I agree with that, but at the same time we need something that is coherent, that has a logic and an underpinning philisophy, in terms of making our education system compete with the best, and not back to the future."

English teacher David Robson is worried the Government could be gambling with children's futures.

"If you've got some students and everyone a year older than them have done a different qualification, where does it put those students when going into the job market? Where does it put them now in terms of preparing for the future?

"So I think it's unsettling in many ways, and obviously any year group who are going to be the first wave in any system, in a sense you're going to be the guinea pigs."

The committee said there was a "lack of coherence" about the Government's approach to reforming the curriculum, qualifications and the school accountability system.

It warned that the reforms could have a negative impact on subjects that will remain GCSEs.

It also suggested the Government should focus on improving the achievement of the "significant minority" that do not achieve five good GCSEs, rather than considering plans to introduce a Statement of Achievement for lower-attaining pupils.

A Department for Education spokeswoman said: "We have been clear that the secondary education system is in desperate need of a thorough overhaul - an objective with which the committee agrees.

"That is why we are making major changes to ensure we have world class exams that raise standards."

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FSA Reveals Scale of Interest Rate 'Swap Mis-Sell'

The Financial Services Authority has revealed that more than 90% of interest rate swaps were allegedly mis-sold to small businesses by banks.

Last night Sky News City Edtior Mark Kleinman revealed that the City regulator had set out a revised framework for small business enterprises (SMEs) to pursue possible redress.

It is the latest mis-selling scandal to hit Britain's high street banks and involved selling interest rate hedging products that were designed to provide insurance against steep rate rises.

Britain's scandal-hit banking industry now faces another hefty compensation bill after the review of the complex products.

The FSA said a significant proportion of the 173 cases examined were likely to result in redress being due to the customer.

It is thought that as many as 40,000 of the interest rate swaps could have been mis-sold to small businesses since the end of 2001 after the FSA highlighted "serious failings" in the sale of the products last summer.

The FSA announced that the UK's four big banks - Barclays, HSBC, Lloyds and Royal Bank of Scotland - have agreed to start work on reviewing individual sales and providing compensation.

It is thought the cost of compensating businesses could total as much as £1.5bn across the sector, with Barclays, HSBC and RBS having already set aside around £630m to cover potential claims.

Interest rate swaps are complicated derivatives that might have been sold as protection - or to act as a hedge - against a rise in interest rates without the customer fully grasping the downside risks.

They were marketed as low-cost protection against rising interest rates, often as a condition of a business loan. But businesses as small as bed and breakfasts and takeaway shops were left with major bills after the financial crisis caused interest rates to slide.

The FSA has now released new guidelines for banks to differentiate between sophisticated firms that knew what they were buying and small firms which did not understand the products.

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Brit's DNA Linked To French Jogger's Murder

Police in France say DNA recovered from a crime scene where a mother-of-three was stabbed to death matches that of a British suspect.

A search was launched after Joudia Zimmat, 34, failed to collect her three-year-old daughter from school in Nimes.

Police sniffer dogs later discovered her body, and police believe she was sexually assaulted while out jogging, repeatedly hit around the face, and so brutally stabbed she was unrecognisable.

British man Robert Plant, 32, was arrested after police carried out house-to-house enquiries.

Nimes deputy prosecutor Stephane Bertrand

He is thought to have moved from Chatham in Kent, to France a decade ago.

Police are confident they have a DNA match with the suspect.

Nimes deputy prosecutor Stephane Bertrand said: "We compared the genetic profile with the evidence found at the scene, and the results were a match.

"His DNA corresponds with the objects recovered from the crime scene."

A friend, who gave his name as Michael, said: "We saw that he'd got scratches on him, but we couldn't understand why. I can't really say much more, I just don't know what has gone on."

Mr Plant's mother, a wealthy widow, was also arrested after allegedly giving false details of her son's whereabouts, but was later released.

Mr Plant remains in custody.

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OFT Fuel Price Probe Findings To Be Released

By Poppy Trowbridge, Business & Economics Correspondent

The Office of Fair Trading today releases its findings on the state of Britain's £32bn retail fuel market.

The regulator must assess whether serious competition concerns exist within the industry and make a call on whether to launch a full-blown investigation.

Brian Madderson, chairman of the Retail Motor Industry Federation's (RMI) petrol division, said: "It's not transparent at all.

"They must make a full-market study under the Competition Act so that we can see exactly how this market is working."

Motorists see prices at the pump rise rapidly when markets surge.

But there is concern that, when markets move lower, oil and gas companies are not passing on savings to retailers and motorists as quickly as they could.

This prompted the Government to call upon regulators late last year to take up the issue.

The last time the OFT conducted an enquiry into the UK retail fuel market was in 1998.

According to the RMI, the UK wholesale price of petrol has gone up by more than 7p per litre since Christmas.

Around 1.5p of that rise is because the pound has not performed well since. But the RMI says motorists have still been left to face an increase of 5.5p per litre in the space of a just a few weeks.

Asked whether fuel prices were fixed or fair, Malcolm Graham-Wood, oil analyst at VSA Capital Limited, said: "It's an efficient market working as it should do.

"What you are doing in the petrol price at the pump is seeing a reflection of what the oil price was a few months ago, in the last few months it hasn't changed very much."

Projecting how prices might perform in the year to come, he added: "I think the oil price will be relatively stable and I don't see the currency changing very much either. Accordingly, I would have thought the petrol price would be down, not up."

Any investigation that did result in changes to the current system will certainly have consequences for consumers.

But, with Britain's retail fuel market worth around £32bn, it would also have an impact on businesses and the economy as a whole.

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Fast-Track Reforms For Senior Police Positions

The Home Secretary is expected to unveil a shake-up of police recruitment that will allow new starters to escape the compulsory two years on the beat.

Under current rules all police must enter at constable rank, but the proposals to be unveiled by Theresa May later are understood to include direct entry at superintendent level.

Ms May is also believed to be planning to change the law so foreign police chiefs will be able to run British forces for the first time.

The overhaul is part of a package of reforms that were drawn up by ex-rail regulator Tom Winsor in the most wide-ranging review of police pay and conditions in more than 30 years.

Under his proposals, "exceptional" applicants would have the chance to rise from civilian to inspector in just three years.

Successful businessmen and women, along with members of the armed forces and the security services, should all be encouraged to apply to the fast-track scheme, Mr Winsor said.

Tom Winsor's police reforms have proved to be controversial

Mr Winsor, who is now Her Majesty's Chief Inspector of Constabulary, previously said he wanted to end the notion of policing as an intellectually undemanding occupation.

He added that the "brightest and best" applicants with skills "distinctly above those of factory workers" were needed.

Metropolitan Police commissioner Sir Bernard Hogan-Howe told a policing conference earlier this month that it was time to "consider and support" direct entry.

He added that he would like to see one in 10 senior officers recruited from outside the police force.

In addition, a proposal to allow candidates from the US, Canada, Australia and New Zealand, among others, to head up forces in England and Wales is expected.

US 'supercop' Bill Bratton was ruled ineligible to take over the Met Police

Current legislation prevented US "supercop" Bill Bratton, former chief of the New York police, applying to take charge of the Metropolitan Police in 2011.

Mr Bratton gained a reputation for introducing bold measures to reduce crime, heading police departments in New York, Boston and Los Angeles.

In his first two years at the helm of New York Police Department, reports of serious crime dropped 27%.

But Mrs May dashed any chances of him becoming Britain's top police officer when she underlined the importance of the Scotland Yard commissioner being a British citizen for national security reasons.

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Man Dies As Sign Falls From William Hill Shop

A man has died after being hit by a large metal sign that fell from a William Hill shop.

The man, believed to be in his 20s, was treated at the scene in Camden, north London, on Monday afternoon before being taken to hospital, where medical staff were unable to save him.

He has not yet been named.

"Every effort was made to resuscitate him at the scene and on the way to University College Hospital," a London Ambulance Service spokeswoman said.

The 30ft sign, which had covered the length of the betting shop, was seen on the pavement. Police erected a forensic tent to cover the scene and taped off the surrounding area.

Police sealed off the area around the shop

Ioana Nita, 21, was working at a nearby restaurant when she heard a "very loud noise".

"Me and a colleague went outside and saw the guy lying on the floor," she said.

"Five guys picked up the sign and it was put on the side. His hands were covered in blood and he wasn't moving.

"Lots of people were in a circle around him, then the ambulance arrived and they were trying to get him back to life, pressing on his heart."

She added: "I just want to go home and cry. I don't know how that can happen. The sign is huge. Everyone said he was just walking past the shop."

Ken Osbourne, 28, who works at the nearby Woody Grill restaurant, said: "I saw the guy lying down in the road, covered in blood.

"Hundreds of people walk past here every day. It could've been me or any one of them."

Health and safety investigators entered a flat above the shop to take photographs of the sign. Flowers have been left at the scene.

A William Hill spokeswoman said: "There is an urgent investigation under way and we are still establishing facts and liaising with authorities.

"As such, we don't have a comment to make at this time."

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Childcare Plans: Nursery Ratios To Be Relaxed

By Gamal Fahnbulleh, Sky News Reporter

Nurseries and childminders will be allowed to look after more children under Government plans aimed at reducing the burden on parents struggling to pay soaring fees.

The current ratio of one member of staff to every four two-year-olds will be increased to one carer for every six toddlers.

Nurseries will also be allowed to loosen ratios for under-twos, with one carer being allowed to look after four instead of three children.

A childminder would be able to look after two babies rather than one and four under-fives rather than three, according to the proposals.

British families spend an average of 27% of their income on childcare - the second highest proportion in the world.

But when it comes to the quality of care provided, the UK is said to be behind other European countries.

Citing the example of France, Education Minister Elizabeth Truss will argue that easing the rules on ratios can give nurseries the "headroom to pay higher salaries".

She is expected to tell an event at the Policy Exchange think-tank: "We have learned from other countries that deliver better value and better-quality childcare.

"We have looked across Europe and beyond. The aim is not to replicate another country's approach but to learn from and apply best practice."

Ministers also want youngsters to start being taught reading and maths at a younger age to reassure parents that their children are receiving a proper education.

And in return for deregulation and higher pay, Ms Truss will insist that nursery workers have tougher academic standards, including potential carers needing at least a grade C in English and maths to begin the two-year Early Years Educator Qualification.

Ms Truss said: "We want to see more of a continuum between childcare and the education system, we want to see more teachers in early years leading high quality group settings and also more people with English and maths GCSE going into early years.

"So this is about raising the quality and making sure our young children get the absolute best."

Rachel Parangi, a mother-of-two, told Sky News: "The cost of childcare is a burden, it's like a mortgage, in fact, it's more than my mortgage - so yes it is expensive.

"It's a price you have to pay for quality childcare. When you're at work you want to know that someone is looking after your children."

Shadow education secretary Stephen Twigg said the plans threatened child safety and would not reduce costs.

"This Government has created an affordability crisis by cutting support and pushing up costs for parents. Watering down quality is the wrong way to try to deal with the problem they've caused," he said.

"Experts are warning this could threaten child safety and won't reduce costs. Parents will be worried.

"With a £1,700 toddler tax for families with two children, and 401 fewer children's centres, parents are being locked into inflation-busting cost rises while the quality of childcare is undermined."

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Bali Drugs Case: Brit Jailed For Six Years

British national Julian Ponder has been jailed for six years after being convicted of cocaine possession in Bali.

Prosecutors in Indonesia had asked for a seven-year prison term, and he could have faced a maximum sentence of life.

Lindsay Sandiford, the British grandmother sentenced to death for smuggling cocaine worth £1.5m onto the island, had alleged that Ponder was the man she was going to deliver the cocaine to.

He was originally charged with drug trafficking, but that was later reduced to possession.

Sky's Jonathan Samuels said: "It was alleged that he was linked to Lindsay Sandiford … she was caught at the airport and arrested, and she alleged that Julian Ponder was the man she was going to deliver the cocaine to.

"It's something he has always denied. He was initially charged with drugs trafficking, but that charge was dropped.

"He was then charged with drugs possession after a small amount of drugs was found in his home.

"The judges did have the right to re-examine the evidence, and to re-charge him with drug trafficking.

"They've decided not to do that, so he will spend six years in one of the most notorious jails on the holiday island."

More follows...

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Nightclub Blaze: Brazil Mourns The Dead

Brazil is in mourning after more than 230 people died when a fire broke out in a packed nightclub, leading to a stampede.

Witnesses said a flare or firework lit by members of a band onstage started the blaze in Santa Maria, a university city of about 260,000 people.

Officials say 233 people died, and around 117 others were injured.

Survivors and the police inspector Marcelo Arigony said security guards briefly tried to block people from exiting the club.

Brazilian bars routinely make patrons pay their entire tab at the end of the night before they are allowed to leave.

Relatives at a wake in Santa Maria

But Mr Arigony said the guards did not appear to block fleeing patrons for long.

"It was chaotic and it doesn't seem to have been done in bad faith because several security guards also died," he said.

The blaze broke out while the band, called Gurizada Fandangueira, was performing at the Kiss club in Santa Maria.

Some of those who escaped the building tried to smash a hole in the wall to allow other trapped people out.

Fire chief Guido de Melo said there was panic after the fire started and many revellers were trampled. He said the main cause of death was asphyxiation.

Men try to break through a wall to help the victims

Mr Melo said that firefighters had a hard time getting inside the club because "there was a barrier of bodies blocking the entrance".

Officials at a news conference said the cause was still under investigation.

However, police inspector Sandro Meinerz told the Agencia Estado news agency the band was to blame for a pyrotechnics show and that manslaughter charges could be filed.

Television images showed black smoke billowing out of the Kiss nightclub as shirtless young men who had attended a university party joined firefighters using axes and sledgehammers to pound at windows and pink exterior walls to free those trapped inside.

Bodies of the dead and injured were strewn in the street and panicked screams filled the air as medics tried to help.

There was little to be done; officials said most of those who died were suffocated by smoke within minutes.

The packed club had only one exit

Within hours a community gym was a horror scene, with body after body lined up on the floor, partially covered with black plastic as family members identified relatives.

Many of the victims were under 20 years old, including some children.

"There was so much smoke and fire, it was complete panic, and it took a long time for people to get out, there were so many dead," survivor Luana Santos Silva told the Globo TV network.

Another survivor, Michele Pereira, told the Folha de S Paulo newspaper that she was near the stage when members of the band lit flares that started the fire.

"The band that was onstage began to use flares and, suddenly, they stopped the show and pointed them upward," she said. "At that point, the ceiling caught fire. It was really weak, but in a matter of seconds it spread."

Guitarist Rodrigo Martins told Radio Gaucha that the band started playing at 2:15am.

The fire took place in Santa Maria

"We had played around five songs when I looked up and noticed the roof was burning," he said.

"It might have happened because of the Sputnik, the machine we use to create a luminous effect with sparks. It's harmless, we never had any trouble with it.

"When the fire started, a guard passed us a fire extinguisher, the singer tried to use it but it wasn't working."

He confirmed that accordion player Danilo Jacques, 28, died, while the five other members made it out safely.

Brazil President Dilma Rousseff arrived to visit the injured after cutting short her trip to a Latin American-European summit in Chile.

"It is a tragedy for all of us," Ms Rousseff said.

Britain's Foreign Office Minister Hugo Swire said: "I am deeply saddened by the news of the tragic accident in Santa Maria.

"My thoughts and sincere condolences are with the families and loved ones of those who have lost their lives, and I wish a swift recovery to the hundreds who are now being treated in hospital."

The blaze was the deadliest in Brazil since at least 1961, when a fire that swept through a circus killed 503 people in Niteroi, Rio de Janeiro.

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HS2 Rail Link: Second Phase Is Unveiled

HS2: Cases For And Against High-Speed Rail

Updated: 8:05am UK, Monday 28 January 2013

Those in favour of high-speed rail say it will create jobs and boost the economy, while critics say the cost - financially and for the environment - is too high.

Here is what two campaigners from opposing sides had to say:

THE CASE FOR

Sir Richard Leese, leader of Manchester City Council (Manchester is included in a later HS2 phase)

High-speed rail is a once-in-a-generation opportunity to transform the rail network in this country. A new, separate, high speed network is the only cost-effective way of extending an existing railway network that is becoming increasingly congested.

It will free up capacity on the existing network for commuter services and inter-city services for smaller towns and give the country a railway fit for the 21st century.

More than that, it will unlock much-needed jobs and investment and help rebalance the UK's economy to ensure that opportunity is open to all.

The Government is to be commended for having the political courage to stick with the plans, in the face of a short-sighted opposition that is as predictable as it is parochial.

The UK's future economic success will depend upon its capacity to compete on a global stage.

For Manchester that means we're up against cities like Munich, Milan and Copenhagen. International-class connectivity already is an essential factor in Britain's future success.

The rest of Europe is already well ahead in the high speed stakes and acting now to catch up is not an optional extra.

HS2 might seem expensive but it is an investment that will ultimately be self-financing. Paris-Lyon opened in 1981 and has paid for itself, and the new high-speed lines in Spain are the only profitable part of the Spanish rail network.

Railways began in Britain. The world's first passenger rail station is right here in my city. But we've fallen behind.

Yes, we need investment in the here and now of transport infrastructure, but just for once, let's also plan and act for our long-term future.

THE CASE AGAINST

Joe Rukin, campaign co-ordinator of Stop HS2, the national campaigning body against HS2

HS2 is completely the wrong priority for Great Britain and any decision to go ahead will not be a rational one, it will be a political one, brought about mainly by strong lobbying by advocates with vested interests.

Building HS2 is like building the Titanic, but without the Steerage section - that will be made up of the rest of the rail network which will be starved of funds if HS2 goes ahead.

But of course commuters will have to help pay the £17.8bn just to get it to run between London and Birmingham.

The supposed benefits are made up by calculating the cash value of time and the jobs figures touted, which are plainly a lie. These would not arrive for decades, at a total cost of £32bn.

And what about the extra costs of environmental protection, inflation, interest, compensation, farm bridges, foot bridges and of course trains?

Having been the treasurer of a national union, I know that union leaders are not always interested in the actual figures.

But the jobs figures on this, based on the amount of money going in, are ridiculously low.

Last week they had the cheek to tout this being environmentally sound. If that is the case, why is HS2 opposed by Greenpeace, Friends of the Earth and the Green Party, to start off a very long list of environmental organisations?

HS2 is going through for the same old reasons - because politically it is wanted. It is that simple. You are about to put what money we have left into a fast train for fat cats.

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Teenager Dies After Being Stabbed In Pimlico

A teenager has died after being stabbed in Pimlico, central London on Sunday, said police.

Officers were called to Lupus Street at 6.50pm where they found a youngster who had been stabbed.

The victim, believed to be 16, was taken to a south London hospital but died from his injuries at 8.45pm.

No arrests have been made so far. Police have launched a murder investigation and are keeping an "open mind" as to the motive.

Mohammed Alzubaidi. 49, from nearby Peabody Close, said his friend had witnessed a gang made up of black and white teenagers carrying out the attack.

The street has been cordoned off by police

"He said they were carrying knives, some of them with wide swords. He said the victim was screaming and trying to get away."

Mr Alzubaidi's friend told him that the gang had scattered and run off in different directions.

The scene of the attack is close to Pimlico Underground station and is bordered by many council estates.

A 58-year-old local resident, who did not want to be named, said there had been two murders in nearby Gloucester Street in recent years and a stabbing of a boy outside a row of shops in Lupus Street before Christmas.

"The violence that has started to occur around here is something else, it is frightening for all the residents. You used to be able to walk around at night but I am starting to be very wary, especially at night-time," she said.

A spokesman for the Metropolitan Police said: "We must retain an open mind re the circumstances of the incident and any motive at this early stage."

Anyone with any information can call police on 101 or contact Crimestoppers anonymously on 0800 555 111.

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Tories Handed EU Referendum Polls Boost

David Cameron's pledge to hold a referendum on EU membership if the Conservatives win the next General Election appears to have given the party a boost in the polls.

A survey conducted in the wake of the Prime Minister's speech on Wednesday showed the Tories had enjoyed a five-point jump from last month, mostly at the expense of the eurosceptics of UKIP.

The poll, by ComRes for the Sunday Mirror and the Independent on Sunday, put the Tories on 33%, with Labour stood still at 39% and the Liberal Democrats up two at 11%.

UKIP, which has registered significant advances in recent months, fell back four points to 10%.

Mr Cameron has insisted he wants to stay in the EU but said he would aim to renegotiate the relationship before offering voters the choose whether the UK should stay in under the new terms or leave.

However, despite the resurgence in the latest polls, many voters backed Labour and Lib Dem warnings that Mr Cameron's position would cause "years of uncertainty which will be bad for the British economy" by 43% t0 30%.

The majority also now believe that leaving the EU would in itself be bad for the economy in terms of lost jobs and trade - by 38% to 36%, a turnaround from November when 40% disagreed and 36% agreed.

Windsor MP Adam Afriyie

There was also a significant shift in the numbers saying the UK should quit Brussels regardless of whether powers could be returned, voters disagreeing by 43% to 33% - the exact opposite of the previous poll.

Other polls also showed a post-speech Tory bounce.

One by Survation for the Mail on Sunday put the Tories up two at 31%, Labour stable at 38%, Ukip down two to 14% and the Lib Dems down one at 10%.

Exactly half of those polled said they favoured a UK exit, but of those more (43%) said they would consider switching to the "yes" camp if significant powers were returned than wouldn't (36%).

An Angus Reid Public Opinion for the Sunday Express showed a three-point rise for the Conservatives to 30% with Labour dipping three to 39%.

The success of Mr Cameron's EU speech , however, has not stopped speculation within the party about his possible successor should he fail to secure a majority at the next election.

Several Sunday newspapers reported that MPs had been approached about whether they would consider supporting Adam Afriyie, an IT millionaire who became the Tories first black MP in 2005.

The latest polls were released as Labour leader Ed Miliband - who has said the party is not in favour of the referendum promised by the Prime Minister - faced renewed calls from within his own party for an immediate in/out referendum.

Former Europe minister Keith Vaz, a supporter of EU membership, said it was "time to settle the question of Britain's membership in the EU once and for all".

"I support a referendum because, like David Cameron, Ed Miliband and Nick Clegg, I believe the future of our country is in Europe. I am supportive, but pragmatic about the European project," he wrote in the Sunday Mirror.

"I accept British people rightly feel the EU is not delivering on its promises. Reform is necessary. We need better, stronger and earlier scrutiny by Parliament of EU measures."

UKIP leader Nigel Farage told the Sunday Express his party would now be "going for the Labour Party's jugular" over its failure to back the referendum.

"Here was an open goal for the Labour Party to demand that referendum now. They could have called his bluff. Ed Miliband could have pressed the Prime Minister to give voters a say on Europe without ifs and buts. Yet they didn't," he wrote.

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Flood Fears As Snow Melts And Rain Moves In

Heavy rains combined with milder temperatures which are thawing the snow that has blanketed much of Britain, have sparked fears of flooding across the country.

Large parts of the UK are on alert for flooding, and the Met Office is warning people to be prepared for potential travel disruption.

The Environment Agency (EA) has issued 53 warnings across England and Wales, meaning flooding is expected, urging people in areas including the Midlands, South West and Wales to take immediate action against predicted flooding.

Another 285 alerts, meaning flooding is possible, are also in place - increasing every few minutes too - after the agency warned of an increased risk of surface water and river flooding.

The Scottish Environment Protection Agency has issued six flood warnings and eight alerts.

The A34 at the Meaford Road junction in Stone, Staffordshire, earlier

There were reports of flooding in south Wales overnight after downpours replaced almost two weeks of snow.

Norfolk Police also reported flooding caused by melting snow and ice, which has closed a number of roads in the area.

Forecasters are predicting a very wet spell through the latter part of Monday and into Tuesday too.

Sky News weather presenter Isobel Lang said: "After very mild, wet and windy weather last night, snow has melted rapidly. The combination of heavy rain and the thaw has brought flooding in places.

"Flooding will continue to be a concern during Monday and Tuesday as further active frontal systems are set to sweep east bringing gales and heavy rain.

"Western and southwestern parts are most at risk with around one to two inches of rainfall, perhaps more on higher ground.

""The outlook is for it to remain generally mild, windy and unsettled."

A house collapses in Barnsley, apparently under the weight of fresh snow

Rising temperatures of up to 12C (53F) have sparked a rapid thaw of the snow and ice, after heavy snow storms on Friday night left hundreds of people stranded on motorways in the north of England.

The M6 was blocked in both directions between junctions 25 and 27 in Lancashire when a sudden burst of more than a foot of snow brought drivers to a standstill from around 8.30pm.

Many became stuck along the stretch of motorway between Wigan and Standish after struggling to make it up inclines in the treacherous conditions, while a number of accidents including jack-knifed lorries also blocked lanes.

Mountain rescue workers were drafted in to help with rescue operations and check on the condition of drivers stranded by the snow.

A diabetic man was taken to Royal Blackburn Hospital after falling ill, while an ambulance taking a female patient to Royal Preston Hospital had to be dug out of the snow by Bowland Pennine Mountain Rescue team.

A family had to be evacuated when the gable end of their house collapsed, apparently under the weight of fresh snow in Barnsley, South Yorkshire.

An EA spokesman said: "Emergency teams from the Environment Agency will be out in force throughout the weekend, shoring up defences, monitoring river levels and clearing blockages from watercourses."

Around 18 buildings were flooded in various locations across Wales on Friday night, including two houses in Solva, Pembrokeshire, and two in Dolgellau, North Wales.

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Payday Loan Sites' Dirty Tricks To Boost Traffic

By Jason Farrell, Sky Correspondent

A Sky News investigation has found that some payday loan brokers have benefitted from hacking into websites to divert the history and status of a legitimate business to their domain.

This increases their ranking on Google, and the tactic has given unregulated brokers access to online traffic worth millions of pounds.

The findings come as the Office of Fair Trading (OFT) prepares its report into dirty tricks in the market, due to be published in February.

Every month, tens of thousands of potential customers use Google to search for payday loans.

The search engine has a complex algorithm based on a website's history and credibility which tries to ensure that users are directed to the most appropriate websites.

However, Google's natural listings system can be tricked. Sky News found three payday websites that were stealing the credibility of other websites to boost their ranking. The target victim sites included a music business, a graduate website and even a church website.

In November last year, Sky News discovered established music licencing website Ricordi was one of several domains that began ranking highly for selling payday loans on the front pages of Google. Clicking on the link diverted the user to a payday broker's site.

Dr Joseph Somerhalder says brokers have been 'stealing identities'

Web analyst Dr Joseph Somerhalder from search optimisation company Chillicow explained what was happening.

He told Sky News: "They hack into the website. They optimise the website for something that it is not about such as payday loans. Then they wait for the right moment, and then they forward all the history and all the credibility from the old website, the legitimate business, into the illegitimate business."

He added: "It's a bit like stealing your identity online. They take the website's identity and history and they point it somewhere else."

Ricordi is owned by Universal Music Group. A spokesperson for the company said: "We recently discovered the unauthorised access to our Ricordi UK website. UMG takes the protection of its sites very seriously and has implemented measures to prevent a recurrence of this type of event."

But other companies may not be aware of the hacking. Using web analysis software, we found that over 10,000 websites have been compromised by this technique on one server alone.

Sky News spoke to the owners of UK graduate website Gradfunding which was also in the process of being hijacked.

Dr Luke Blaxill, director of the website, said he was also trying to deal with the problem.

"To get rid of this we are going to have to rewrite every bit of code on the website and transfer it to a new server."

The payday loan intrusion meant his company was starting to fall down the listings for its own business operations and it could lose years of building up an online reputation.

Dr Blaxill said: "It has taken years for us to get to the position that we are in this particular market and for that effectively to be almost rewritten overnight by a scammer, is a real problem."

Gradfunding was among the target victim websites

Raiham Islam from Jar Applications, which fixed the problem for Gradfunding, told Sky News: "What they did was inject a malicious code into the web server, and the files trick Google by the method of cloaking.

"They then bomb the site with payday loan links to increase its ranking for payday loans and redirect the traffic to their scam website. That's when the hacker starts making money."

During the investigation we found church website Canada had been hacked for this purpose. We also discovered 21,000 payday loan links had been pointed at a Bonsai society website.

There are concerns these tactics leave UK loan customers exposed to unscrupulous, unregulated brokers.

Over the last two months Sky News conducted test searches on Google for payday loans which produced websites high in the natural listings that were in breach of OFT regulations.

Several had no consumer credit licence, a requirement for any loan broker and lead generator.

Some websites claimed to be 100% secure, but actually had no data protection when customers entered their bank details. This exposes customers to fraud and identity theft.

We also found many websites broke legal requirements on transparency to customers, such as failing to prominently display a representative APR or an address where the company can be contacted.

Sky News found three payday websites involved in dirty tricks

Some legitimate lenders in the industry have told us they are aware of the problem. Many of them advertise on Google's pay per-click service as an alternative to the natural listings.

One lender who did not want to be identified suggested the price of Google's sponsored links have gone up because demand has increased with legitimate companies struggling to get on the natural listings.

"Google could solve this problem by tightening up their algorithm" he suggested. "But they have no incentive to do so. We're all having to use the sponsored listings to get any traffic to our websites."

He added: "But customers don't realise that some companies on the natural listings don't have a consumer credit licence, which means they don't have to tell the customer how much they're going to pay back, which feeds into some of the problems we're seeing at the moment of customers not able to pay back their loans."

Google says its key motivation is to try to direct customers to the best websites.

A spokesman told Sky News: "As part of our on-going effort to reduce webspam and return high-quality websites to our users, we are constantly improving our search algorithm to better detect and decrease rankings for sites that we believe are violating Google's quality guidelines and engaging in webspam tactics to manipulate search engine rankings."

For legal reasons we are not naming the websites linked to hacking but we have passed our evidence to the OFT, which told us: "The OFT is clear regarding the standards it expects from those businesses that it regulates and has publicised an extensive suite of guidance documents. We take very seriously any evidence tending to show that businesses are not meeting the standards set out in our guidance.

"The guidance for credit brokers and intermediaries states that creditors should satisfy themselves that persons they deal with are appropriately licenced. Accepting leads from unlicensed sources would raise concerns about a lender's fitness to hold a consumer credit licence."

At one point during our investigation we found the highest ranking website on Google was a four-day-old domain registered to a field in California.

Just a few days in this position can earn the web owner tens of thousands of pounds. Yet this site was in breach of several regulations and displayed nothing on the website to suggest it was licenced to sell loans in the UK.

Last November, the OFT opened formal investigations into the tactics used by an number of payday lenders. But if the regulator wants to properly police the market, it seems it is going to have to work with Google.

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