Tories call benefit rise 'pre-election con'

The Conser

vatives have branded Alistair Darling's plan to increase benefits a 'pre-election con.'

They say the increased benefits will rise before a vote next year only to fall afterwards.

The chancellor defended his pre-Budget report saying that the benefits will in fact rise again the following year.

Critics say the 1.5 per cent increase in some benefits including child support, incapacity benefit and disability allowance which will come into effect in April 2010, potentially weeks before a general election, are only a temporary measure and will be reversed the following year.

It is just one of many aspects of yesterday's pre-Budget report which the Conservatives say make it more political than economic.

Alistair Darling defended the increase and denied it was politically motivated.

He told the BBC: 'I wanted to increase them [the benefits in question] by 1.5 per cent otherwise they would have been frozen. They'll go up again next year.'

Another area of Wednesday's report which came under fire from shadow chancellor George Osborne was the one per cent rise in national insurance.

The hike announced for 2011 will affect anyone earning over £20,000. The government predicts it will raise £2.9 billion in 2011-12.

Mr Osborne though called the rise 'nonsense' on GMTV this morning and claimed it would 'impose a £446 million bill on the NHS, eating into the very resources which the chancellor claimed to be protecting'.

Mr Darling claimed the money generated would in fact protect key public services. He said: 'It's a difficult decision but I think it was right both in terms of what I want to do to cut my borrowing but also, in terms of something like the NHS or schools, it is important we preserve those frontline services.'

The Conservatives have branded Alistair Darling’s plan to increase benefits a 'pre-election con.'

They say the increased benefits will rise before a vote next year only to fall afterwards.

The chancellor defended his pre-Budget report saying that the benefits will in fact rise again the following year.

Critics say the 1.5 per cent increase in some benefits including child support, incapacity benefit and disability allowance which will come into effect in April 2010, potentially weeks before a general election, are only a temporary measure and will be reversed the following year.

It is just one of many aspects of yesterday's pre-Budget report which the Conservatives say make it more political than economic.

New details on MPs expenses published

The House of Commons has published details of expenses claimed by MPs under the second home allowance.

The information released online shows claims made during 2008-9 and the first three months of 2009-10.

Downing Street has already announced this morning Gordon Brown will repay £500 he claimed for painting a summer house.

Hundreds of thousands of claims, and their supporting receipts, have been released this morning with Westminster promising the details will be much more transparent than the information released earlier this year which was mainly blacked out.

The Guardian claims the new information shows more than 50 MPs 'flipped' their second home allowance last year from one property to another.

The previously unheard of procedure gained notoriety earlier this year when public anger at MPs expenses reached fever pitch in light of the publication of expenses claims by the Daily Telegraph.

However, the MPs named in today's Commons list are said to have not broken any rules. Many swapped their designated home from one in London to another, or one in their constituency to other. Some though 'flipped' between a London property and one in their constituency.

Among them is the Tory MP Douglas Hogg, who gained notoriety after his lavish claim to have his moat cleaned at the taxpayers' expense became public.

Others include Commons Speak John Bercow and former defence secretary Des Browne who changed his second home designation from one London property to another.

Osborne: Untrustworthy Labour bungled PBR

George Osborne has claimed Labour lost its moral authority and any chance of being trusted by the electorate ever again with today's pre-Budget report.

Alistair Darling unveiled plans in the Commons to raise national insurance contributions and tax bankers' bonuses, as well as increasing public borrowing forecasts for the next two years.

Shadow chancellor Mr Osborne said Mr Darling's plan would actively 'choke off the recovery' and reduce Britain to the 'sick man of Europe'.

'This prime minister inflicted the deepest and longest recession upon us in modern history,' he said after referring to Gordon Brown as 'yet another failed master of the universe'.

'No one will believe a word they say on the economy ever again.'

Repeating his much-maligned 'we're all in this together' line from party conference season Mr Osborne accused Mr Darling of 'ring-fencing a black hole'.

'We were promised a pre-Budget report and what we got was a pre-election report,' he added.

Mr Darling hit back at Mr Osborne's allegation that people earning over £20,000 would pay more tax, saying the shadow chancellor was 'long on politics and short on ideas'.

For the Liberal Democrats, Vince Cable said Mr Darling could have done more with capital gains tax, which is staying unchanged at 18 per cent.

'There is a long hard slog ahead for the economy and the chancellor has not set out our path for it,' the party's Treasury spokesman said.

He added that it had been a 'good Budget for bingo and boilers', and that the economy was now being 'rebuilt on sand'.

Chancellor announces levy on bankers' bonuses

The chance

llor yesterday announced a 50 per cent levy on all bankers' bonuses over £25,000.

The super-tax announced in his pre-Budget report is hoped to curb the culture of excessive bonuses.

The 50 per cent levy is to be paid by companies rather than employees and is hoped to claw back an extra £500 million for the UK. This money is to be used to pay for new measures also announced in the report including help for the young and older unemployed to get back into work.

Alistair Darling said: 'If they [banks] insist on paying substantial rewards, I am determined to claw money back for the taxpayer. I have decided to introduce from today a special one-off levy of 50 per cent on any individual discretionary bonus above £25,000. This will be paid by the bank not the bank employee.'

It has though attracted criticism from some who say it makes London a less attractive proposition for international businesses.

Angela Knight, British Bankers' Association chief executive, said: 'Viewed from abroad, London may well look now like a significantly less attractive place to build a business. We must repeat that only concerted international agreements will succeed in reforming remuneration in the financial sector.'

She added: 'This new tax has to be set in the context of commitments already made. The UK's banks have already agreed to observe pay restraints where bonuses are mostly deferred and paid in shares. We are already well ahead of the other G20 countries in doing this.'

Others have criticised the move arguing that a levy should have been put on bank's profits rather than staff bonuses, and that it would be difficult to enforce.

Vince Cable, the Liberal Democrat deputy leader, speaking in parliament after the pre-Budget report, said: 'How will you stop the banks converting the bonuses into their basic salaries? You need not to try to tax bankers separately from high earners but to have to pay a levy on bank profits because they rely on the taxpayer guarantee.'

Ex-Iraq envoy admits post-invasion concern

Britain's first ambassador to Iraq for 13 years has admitted to the inquiry into the war that areas occupied by UK troops were under-funded by the US reconstruction.

Edward Chaplin, ambassador in 2004, said that despite billions of dollars being diverted towards Iraq, the majority was spent in and around Baghdad and on security.

'The frustration was that the south, being relatively quiet in this period, was not a very high priority for the Americans,' Mr Chaplin told Sir John Chilcot's inquiry in central London.

'They had a huge reconstruction programme, but on both the military training side and on the reconstruction side not much of that was finding its way down to Basra and that was damaging.

'It reinforced the feeling the south had always been neglected under Saddam Hussein and, so far as they could see, really nothing had changed.'

But Mr Chaplin added that UK forces had still made impressive achievements in the south where they were concentrated around Basra.

'Yes I think so, I can only judge from the reactions of Iraqis we spoke to,' he said.

'But I think in the training of the security and police forces, there was a lot of admiration of the way we went about it.'

Govt 'lied' over extraordinary rendition

Ministers lied to parliament over the extraordinary rendition of two men to a notorious US black site secret prison, it was claimed today.

Legal charity Reprieve, which represents detainees at Guantanamo Bay and other facilities, said then defence secretary John Hutton misled MPs in a statement to the Commons in February.

In it he admitted that two men captured in Iraq by UK forces in 2004 had been handed over to US forces, it later emerging they had been transferred to Bagram in Afghanistan.

'The individuals transferred to Afghanistan are members of Lashkar-e-Taiba, a proscribed organisation with links to al-Qaida,' Mr Hutton said.

'The US government have explained to us that those individuals were moved to Afghanistan because of a lack of relevant linguists to interrogate them effectively in Iraq.

'The US has categorised them as unlawful enemy combatants and continues to review their status on a regular basis.

'We have been assured that the detainees are held in a humane, safe and secure environment that meets international standards that are consistent with cultural and religious norms.'

Reprieve said its requests to the government for the two men to be identified had fallen on deaf ears, but that its own investigation had revealed one man to be Amanatullah Ali, a rice merchant father-of-five from a village in the Punjab, Pakistan. Mr Amanatullah's family told Reprieve he was a Shia Muslim and a fluent Arabic speaker.

But the other could only be identified as 'Salahuddin'. This second man is known to be from the Gulf states and is said to be in a 'catastrophic mental and physical shape'.

Reprieve said its investigation had exposed the then defence secretary's statement to be factually incorrect on a number of grounds.

As a Shia Muslim there are no circumstances under which Mr Amanatullah could be affiliated with Lashkar-e-Taiba (LeT), an extremist Sunni Muslim group that views all Shias as heretics.

The claim that the US did not have linguists to interrogate them in Arabic-speaking Iraq is also called into question by the fact that both men were fluent in the same language.

And finally, under a memorandum of understanding between the US and UK with regards to rendition, the detaining power (in this case London) can force the accepting power (Washington) to return prisoners at any time for any reason.

'Government ministers misled parliament and the country by denying that we had anything to do with rendition and then, when John Hutton 'apologised' for this, he misled parliament again,' said Clive Stafford Smith of Reprieve.

'The government now appears unwilling to admit that they are still propagating falsehoods.'

Cumbrian bridge named after heroic PC

A new bridge built in a Cumbrian town devastated by recent flooding has been named after a police officer who died after being swept away in the flood waters.

Barker Crossing in Workington, which has been built by the army, has been named after PC Bill Barker who was directing traffic on the Northside Bridge when it collapsed on November 20th.

Workington was cut in half by the flood waters, but the two halves have now been reunited by the temporary footbridge across the River Derwent, with schoolchildren the first to make the walk across the new crossing. It is the first time since the floods that people in the area will be able to cross to the other side of the town without using a train.

The news came as a warning from the Met Office said as much as 15mm of rain could fall this morning, with the north-west of England on a severe weather warning of heavy rain.

Inspector Mark Wear, who heads up Workington neighbourhood policing team, said: 'This footbridge is a tangible symbol of how we are starting to rebuild the area and getting back to normal.

'I am pleased that its name commemorates my friend and colleague Bill, who died saving lives right here in Workington. He was committed to serving his community and for him to be remembered in this way is a tribute to his memory.'

The construction of Barker Crossing has been co-ordinated by 42 (North West) Brigade, the regional army brigade for north-west England, with input from Royal Engineers, Royal Logistic Corps, Royal Signals, and Royal Military Police. Armed forces minister Bill Rammell attended the opening of the new bridge alongside Brigadier Bill Aldridge, Commander 42 (North West) Brigade.

Brigadier Aldridge said: 'The army is delighted to have completed this small but significant part of a much larger and wider effort to help this part of Cumbria get back on its feet after the floods. Our soldiers have worked round-the-clock to get us to where we are today, opening this footbridge on time to meet the morning school run.'

The 52-metre steel bridge spans the river at a relatively narrow part of the river where the river banks are structurally sound around 300m upstream (east) of the now unusable Calva Bridge.

Councillor Jim Buchanan, leader of Cumbria county council, said: 'There has been a massive effort on all fronts to get to where we are today. There's clearly still a huge amount of work still to do and I appreciate that people are getting frustrated with the travel delays and are keen to be able to cross the river by road as soon as possible.

'We're pulling out all the stops to make that happen but the reality is that a temporary road bridge is a far bigger project than the temporary footbridge that the army has done such a magnificent job of constructing so quickly.'

In the immediate aftermath of the floods, 20 road bridges were closed, plus three which had collapsed completely.

Brown to cut public spending by £12bn

Gordon Brown has set-out plans to cut public spending by £12 billion, two days ahead of the pre-Budget report.

The prime minister unveiled a series of measures which the government hopes will help to halve the country's budget deficit over the next four years.

Mr Brown announced the senior service pay bill will be cut by over 20 per cent and said the government would have to approve all salaries over £150,000, with those receiving the sums being named publicly.

Moves to streamline Whitehall were also confirmed, with the PM promising to cut the spending on consultancy in half.

The PM said the government has identified £3 billion-worth of efficiency savings, of which £1.3 billion will come from streamlining central government.

'In order to protect the front-line services we value at a time when budgets are tighter it means we need to do what households up and down the country do to prioritise the necessities and postpone the things we can do without,' Mr Brown is due to say.

'The proposals we are setting out in this plan - which is just one element of our efforts to reduce the deficit - will go further than we have ever gone before in streamlining central government.

'We have already promised savings of £35bn a year by 2011 on top of the £26.5bn a year already delivered through the Gershon reforms.'

The prime minister said his government was prepared to make 'the tough choices'.

Mr Darling is expected to announce later this week annual borrowing will top £175 billion and the Conservatives have accused the government of not revealing the full extent of cuts needed.

Unions have also expressed concerns the moves could see up to 20 per cent of senior civil servant posts go.

During his speech, Mr Brown said he believed: 'Government should never walk away from responsibilities.'

He added his announcements represented a 'radical shift to the users of public services' promising greater transparency and an opening up of public information on services allowing comparisons and members of the public to lobby for improvements.

Queen warns media over paparazzi intrusion

The Queen has issued a warning to newspapers not to publish paparazzi photographs of the Royal Family, it has been confirmed.

Buckingham Palace confirmed Her Majesty had sent a private letter reminding editors of their privacy responsibilities under the Press Complaints Commission code.

The letter, the contents of which have not been revealed, came 'in response to many years of the royal family being hounded by photographers on the Queen's private property', said the Palace press office.

According to the Sunday Telegraph, it is understood the Royal Family will consider legal action if they continued to be photographed in private situations.

Princess Caroline of Monaco won more than £9,000 damages from the European Court of Human Rights in 2005 and any royal legal action would likely see them pursuing the same lines of grievance.

Prince William had expressed concern after he and girlfriend Kate Middleton were 'aggressively' pursued by members of the paparazzi in 2007 and his father's communications secretary has gone on the record to acknowledge the Royal Family's new approach to media behaviour.

The Prince of Wales' spokesman Paddy Harverson said: 'Members of the Royal Family feel they have a right to privacy when they are going about everyday, private activities.

'They recognise there is a public interest in them and what they do, but they do not think this extends to photographing the private activities of them and their friends.'

Photographers will be permitted to take photos of the Royals as they attend church on Christmas Day but 'snatched' photographs at the Queen's Sandringham estate are unlikely to be tolerated.

Cameron: Afghan troop withdrawals unlikely

Conservative party leader David Cameron has said a reduction in British troop levels in Afghanistan is not likely in 2010.

Mr Cameron said he supported government plans to hand over certain districts in Helmand province to Afghan forces but said the strategy should be 'based on success' rather than 'artificial timelines'.

The Tory leader also said US president Barack Obama's announcement of a 30,000-strong surge for US forces in Afghanistan was the 'last big chance of success' for the coalition's operations.

Mr Cameron's comments follow the prime minister's confirmation that an extra 500 British troops would be posted to Afghanistan in January, with a 'clear timetable' scheduled for a handover of power to Afghan forces.

Gordon Brown's Conservative counterpart, however, commented: 'I don't want us to raise false hopes. I think it's pretty unlikely that you are going to see a reduction in British troop numbers next year.'

He told the BBC: 'But it should be based on success. The key here is, as soon as you can hand over lead responsibility to the Afghans in a district you should do, once it's safe.

'And once you're doing that you can bring down troop numbers in the future, but do it based on success, don't keep talking about artificial timelines.'

Cameron labels Brown 'petty' over Eton jibe

The Conservative leader has said prime minister Gordon Brown was 'petty' and 'spiteful' to refer to the Eton schooling of senior Tories.

Mr Brown had said in the House of Commons last week that Conservative policy on inheritance tax had been 'dreamed up on the playing fields of Eton', with Mr Cameron, London mayor Boris Johnson and prospective MP Zac Goldsmith all having been educated at the Berkshire private school.

Labour say Conservative plans for cuts in inheritance tax cuts would be beneficial to millionaires while having a costly impact on public services.

In response, Mr Cameron said a 'class war' strategy from Mr Brown and First Secretary Lord Mandelson would be a 'petty, spiteful, stupid' approach in the lead-up to the next election.

He told BBC1's The Politics Show: 'I never hide my background or where I'm from or anything about my life like that.

'My view is very simple... that what people are interested in is not where you come from but where you're going to, what you've got to offer, what you've got to offer the country.'

He stressed that several members of his shadow cabinet, including shadow defence secretary Liam Fox, shadow foreign secretary William Hague and party chairman Eric Pickles, had attended state schools and pledged to rectify a matter on the Conservative website that only reveals the schooling of personnel if they were educated in the state sector.

'Frankly I think the country is more interested in who are these people, are they any good, have they got the right ideas, will they take the country forward, have they got the energy and vigour and dynamism that we so badly need?' he added.

'And the answer to those questions I believe is yes. But the best way to test it, you know what? Have an election.'

Mandelson admits he 'wanted EU job'

Lord Mandelson has confirmed he had been interested in the newly created European Union (EU) foreign affairs job.

Mr Mandelson, widely regarded as Gordon Brown's deputy prime minister, has been accused of going behind the Mr Brown's back by showing interest in the role, which eventually went to Labour peer Baroness Ashton.

But the business secretary insisted his 'commitment to the government' stopped him from pursuing the post.

Speaking on the Today programme yesterday, he said: 'In other circumstances I would, of course, have liked to do that job.

'It combines my interests with Europe and foreign affairs. But the point is that I am a member of this government and I am committed to its success and its re-election, and that is why I am remaining a member of it.'

Had he successfully attained the job, Mr Mandelson would have followed in his grandfather Herbert Morrison's footsteps, who briefly ran the foreign office in the 1940s, in working in foreign affairs.

The former EU trade commissioner also denied he was 'blocked' in his pursuit by French president Nicholas Sarkozy after allegations he made a series of calls to the president without the prime minister's knowledge.

'I made it clear that I am committed to remaining a member of the government. That remains the case and I'm working very hard for it,' he said.

Candidate sacked for calling Queen 'vermin'

A Labour candidate who called the Queen 'vermin' and a 'parasite' has been sacked by the party.

Peter White was axed after he posted his views on Facebook.

Mr White, who was seeking election to Havering borough council in London, was sacked for comparing the idea of having a public holiday for the Queen's Diamond Jubilee to 'celebrating vermin'.

In comments posted on the Facebook page of Tory MP Andrew Rosindell, who is campaigning for a high-profile celebration of the milestone, Mr White also called the Queen a 'parasite'.

The Diamond Jubilee is due to be celebrated in 2012.

A Labour party official confirmed that Mr White had been sacked after being summoned to a meeting with officers from the London Regional Labour Party. He had earlier been forced to apologise for his comments.

In his rant Mr White wrote: ''What is the point of celebrating the Diamond Jubilee of someone who is born into a position of privilege, she is a parasite and milks this country for everything she can.''

He continued: ''She has more front than Margate asking for extra money from the civil list. Maybe she should sell a couple of her properties.

'Don't get me wrong, I have no problem with a public holiday but lets [sic] have one that means something, rather than celebrating vermin.'

Mr Rosindell, MP for Romford, said: 'Frankly his actions have warranted the decision. I think it is fully understandable that Labour would want to disassociate themselves from him.'

Mr White initially defended his comments, but later issued an apology. He said: 'The way I expressed myself was totally inappropriate. I regret what I said and apologise unreservedly.'

Labour will now look for a new candidate for Havering borough council.

Review pledged over late condolence letters

Gordon Brown has launched an urgent review and apologised unreservedly after it emerged three families whose loved ones died in Afghanistan in 2007 received condolence letters two years after their deaths.

The father of Private Jack Sadler, killed in a roadside bomb in Helmand province in December 2007, complained that he had received a handwritten condolence letter from the prime minister and a typed apology from an aide just last month.

Downing St has since admitted that three families were affected by an 'unacceptable' administrative error in 2007 that led to letters not being sent out.

The row comes just weeks after a mother whose son died in Afghanistan complained a condolence letter from Mr Brown, who has 30 per cent vision after a university rugby accident, was riddled with spelling mistakes.

At a press conference at No 10 this morning alongside the visiting Pakistani prime minister, Mr Brown said: 'The death of any young person under any circumstances is hard to bear and my thoughts are with ever family that has lost a loved one in conflict, whether it has been in Iraq or Afghanistan in recent years.

'I write personally to every family and where there has been an unacceptable error for which I apologise unreservedly and the letter has not been sent I have been made aware of this.'

Ian Sadler, the father of Pte Sadler, from Exmouth, Devon, who died aged 21, had told BBC Radio 4's The Report about the late condolence letter and note from the prime minister's permanent secretary Jeremy Heywood.

'It's not good is it? Nearly two years later and the PM hasn't apologised, just his aide,' he said.

'It goes to show what this present administration thinks of our soldiers.'

Pte Sadler's mother Jeannette MacDonald told Channel 4 News: 'A letter two years after my son died - well meaning though it may be - is too late. It is too late.

'It's too late for all those boys and girls who died, it's too late for all the mothers and fathers that have lost them, all the families that are so affected.'

Speaking to journalists at No 10 earlier today, Mr Brown said: 'I can only apologise to those families and I want to send my heartfelt condolences to them.

'They have my profound thanks for the invaluable contribution that their loved ones had been making to make Britain safe and I understand their grief and their sadness at a time when they have lost so much.'

Smart meter plan to cut energy bills

The government has unveiled plans to install 47 million smart meters in 26 million homes by 2020.

The £8 billion announcement from the Department of Energy and Climate Change (DECC), which comes a week before world leaders and officials amass in Copenhagen to find a new deal on emissions, is hoped to revolutionise energy use in the home, but critics say the installation costs will be greater than the energy savings made.

The meters are aimed to cutting down on energy use and in turn reducing energy bills.

However, it is estimated the scheme will save the average home just £28 a year; meaning it could be over a decade before the initial installation costs are recouped.

The meters work by allowing households to monitor the amount of energy they are using, ending the need for meter readings and estimates.

Energy and climate change minister Lord Hunt said: 'A global climate deal in Copenhagen needs all countries to make the most ambitious commitments possible, but it will also require all of us to change how we lead our lives and how we generate our energy.

'Smart meters will put the power in people's hands, enabling us all to control how much energy we use, cut emissions and cut bills.

'Smart grids will help manage the massive shift to low carbon electricity such as wind, nuclear and clean fossil fuels.

'Globally the business of developing smart grids has been estimated at £27 billion over the next five years and the UK has the know-how to be part of that.'

Big energy companies are said to be backing the installation of the meters, but are yet to set out plans on how it will be carried out.

Lord Hunt also announced that 'Smarter Grids: The Opportunity', published today, makes the case for developing smart grids in the UK, saying 'smart grids will give operators and consumers much more information about supply and demand of electricity – enabling more effective interaction between consumer needs and fluctuating supplies'.

Alison Kay, partner in Ernst & Young Power & Utilities advisory team, commented on the announcement: 'One of the most significant costs of the roll out is installation costs, and these are going to be driven to a great extent by how willing people are to make and keep appointments. Missed appointments will result in wasted time for installers and increased costs.'

Hung parliament likely, new poll suggests

A new poll carried out by ComRes for the Independent is the second in two weeks to suggest that Britain is heading for a hung parliament after the next general election.

In some good news for Labour, the Conservative lead has narrowed to ten points. If this result is translated into seats under the first past the post electoral system, the Conservatives would be six seats away from an overall majority.

The ComRes poll shows a fall in support for the Conservatives, putting them on 37 per cent – a three-point drop on last month's poll. Labour remains on 27 per cent, while the Liberal Democrats have improved their position by two points to 20 per cent.

If these positions were maintained at the polls, the Conservatives would win 320 seats – six short of a majority – while Labour would win only 240. In such a situation, the remaining seats held by other parties could make them kingmakers of the next government.

Labour will see these results as an indication that their fortunes are turning, and a sign that there is still a possibility of beating the Conservatives at the next general election.

Voters appear increasingly positive about the state of the economy, with 56 per cent saying they were 'optimistic' about the economy's prospects over the next 12 months.

Labour voters were particularly upbeat: 74 per cent endorsed such optimism. Gordon Brown will have to hope that such confidence is not unfounded.

One person eagerly anticipating a hung parliament is Nick Clegg, the Liberal Democrat leader. If neither Labour nor the Conservatives manage to win an overall majority, his party would be decisive as a coalition partner.

In a blow to Labour, Mr Clegg announced in November that in the event of a hung parliament he would support 'whichever party have the strongest mandate from the British people'. This leaves open the possibility of a governing coalition created between the Conservatives and Liberal Democrats, should Labour fail to win a larger share of the country's votes.

Brown claims credit for Fifa conversion

Gordon Brown's 'personal intervention' helped persuade Fifa vice-president Jack Warner to support England's bid for the 2018 World Cup, according to No 10.

The prime minister met Mr Warner, who controls three votes on Fifa's executive committee, on the fringes of the Commonwealth summit in Trinidad at the weekend.

Mr Warner had previously described the England bid as 'lightweight' and was among those unimpressed by the Mulberry handbag gifts presented to the Wags of Fifa personnel.

But after Mr Brown's meeting, Downing Street claimed, Mr Warner had switched his loyalties.

'Brown felt England's time had come. I agreed,' he told the BBC.

'England has the best infrastructure to stage the tournament. After a 52-year gap this is England's time.'

The prime minister's spokesman said Mr Warner's U-turn was the result of an 'excellent' meeting for Mr Brown.

'One can assume the personal intervention of the prime minister made some difference,' he added.

'He was struck by the prime minister's passion for the sport... he's changed his mind.'

Mr Warner's affections are not exclusively devoted to England, however.

The Jamaica Observer newspaper reported he had also been enthusiastic about prospects for the Australian bid.

'Your country has demonstrated your ability to host world class events in the past,' Mr Warner told Australian prime minister Kevin Rudd.

'I am impressed by your commitment and involvement in this process.'

The Fifa committee will makes its final decision on who will host the 2018 World Cup in December 2010.

Cameron says sorry over Hizb-ut-Tahrir

David Cameron has apologised to the Commons after admitting the Conservatives got it wrong over state funding for the Islamist organisation Hizb-ut-Tahrir.

At prime minister's questions last week the Tory leader relayed concerns from his shadow children's secretary that the £113,000 from the Pathfinder fund responsible for tackling extremism had been redirected by two Muslim schools towards Hizb-ut-Tahrir.

The Islamist group has faced sustained criticism from the government for its extremist views, which include the creation of a pan-Islamic state, but it has not met the criteria to be proscribed as a terrorist group.

On Monday Mr Cameron admitted his party had made a mistake following angry retorts by children's secretary Ed Balls.

'It is now clear that the Pathfinder fund responsible for tackling extremism was not involved,' he said.

'I am sorry for the error and am a firm believer that when you get something wrong you should put it right.'

In the wake of Mr Cameron's claims last week Mr Balls resolved to ban extremist teachers from UK schools.

But he said there was 'no evidence' to support the Tory suggestions and indicated that the erroneous claims could play into the hands of Islamic extremists and the far-right.

Blair unrepentant on Iraq decision

Tony Blair

has claimed he stands by his decision on taking the UK to war with Iraq in an interview on CNN.

Mr Blair, who is due to appear before the inquiry into the conflict in the new year, said he is happy to give evidence on an issue which has led to his reputation to be questioned on numerous occasions.

He also dismissed claims by former attorney general Lord Goldsmith that he was bullied into silence after warning Mr Blair that going to war would breach international law.

When asked by presenter John King if he felt betrayed by his former aides, Mr Blair replied: 'Absolutely not.

'As the leader of a country, you have the responsibility to take decisions, some of those decisions are difficult decisions and some of them are very controversial.'

Mr Blair, currently envoy for the Middle East quartet, added: 'I take decisions, I stand by them.'

Mr Blair was warned as early as July 2002, eight months before the invasion of Iraq, by Lord Goldsmith, who outlined concerns of a legitimate invasion without a resolution from the United Nations (UN).

He warned that calls for a 'regime change' would not be sufficient to go to war.
The memo was soon followed by UN resolution 1441 - widely seen to give an invasion more legal legitimacy.

Just days before the invasion in 2003, he famously gave qualified legal backing in a statement.

Lord Goldsmith has refused to comment ahead of his appearance at the inquiry, but a spokesman said: 'He strongly refutes the suggestion he might have been forced to take a view that was anything other than independent.'

Lib Dems think again about 'mansion tax'

Liberal De

mocrat leader Nick Clegg has announced a major reversal of the party's 'mansion tax' proposal, as part of a package of reforms he termed the 'most radical' in a generation.

Under the new plan, any property worth at least £2 million will face an annual duty of one per cent. The party had originally proposed a 0.5 per cent tax on a property's value over £1 million.

Vince Cable, the party's economic spokesman, came under fire when the so-called 'mansion tax' was announced at the party conference in September. Colleagues alleged that he had failed to consult them sufficiently, and warned it could damage their election prospects.

On Monday Mr Clegg claimed that what the party unveiled in September was merely the 'principle' of the reform. He termed a mansion tax part of a 'simple, fair, do-able plan', and said it would satisfy 'what many people want from the tax system'.

By raising the threshold under which a home would qualify for the tax, the party estimates 180,000 fewer homes will be targeted. The revenue raised from this levy would allow the Liberal Democrats to abolish income tax for those with an income under £10,000.

However, opinion towards the mansion tax concept has been mixed. Veteran Financial Times columnist Martin Wolf called the original proposal 'the germ of an excellent idea', while the Conservatives attacked it as 'unravelling' and 'unworkable'.

The tax's political implications remain unclear. A BBC poll conducted in September showed 69 per cent supported the concept. Liberal Democrat candidates for more affluent seats, however, are worried the proposal may lose them votes. One such constituency is Richmond Park, where Liberal Democrat Susan Kramer faces a strong challenge from Conservative millionaire Zac Goldsmith.

Mr Clegg was keen to emphasise yesterday morning that 'there is no such thing as tax cuts for free'. The mansion tax is only part of a broader set of reforms including harsher penalties on polluters and closing tax loopholes. With the November Ipsos MORI poll showing Liberal Democrat support eroding further, Mr Clegg will be hoping this announcement gives the party a much-needed lift.