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Interest rates have been slashed to a 53-year low in a dramatic Bank of England bid to rescue the UK from deep recession.

The shock 1.5% cut by the Bank's Monetary Policy Committee (MPC) is the biggest single move since March 1981 and brings rates to levels not seen since 1955.

Experts predicted they could reach an all-time low of 1.5% by mid-2009 as the Bank acts to stave off the worst impact of an economic slump.

Borrowers on standard variable rate mortgages will see average monthly payments on a £150,000 mortgage fall by around £138 - if the cut is passed on in full. But lenders shaken by banking turmoil have been reluctant to pass on cuts in full as interbank lending rates - key in pricing fixed-rate deals - remain high.

Chief Secretary to the Treasury Yvette Cooper said ministers expect banks to pass on the cuts as rapidly as possible after shoring up the finances of several major players with taxpayers' cash. "The Government has stepped in to make the banking system safe, to support the banks. It is right now that the banks do their bit to support everybody else," she said.

But shadow chancellor George Osborne said: "This is a shot in the arm for the economy, but it shows how sick the patient is."

The Bank of England made the move because of the "substantial risk" of undershooting its 2% inflation target as a sharp recession looms in the wake of September's banking turmoil. "There has been a very marked deterioration in the outlook for economic activity at home and abroad," it said.

Asked whether banks should pass the rate cut on to customers, Prime Minister Gordon Brown's spokesman said: "We are not going to make specific comments about the specific pricing of individual mortgage products in every single bank. But we are clear that consumers should see the benefit of reduced interest rates.

"The Prime Minister supports the view that banks should pass on the cut. I think the public expects that when there is an interest rate cut of this magnitude, then they should see the benefit.

The deep cuts come despite the official measure of inflation standing at 5.2% - more than double the MPC's official 2% target - underlining how much the worries over an economic slump have grown.

-Nova

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An historic china manufacturer has gone into administration, it was announced tonight.

Midlands-based Royal Worcester & Spode Ltd, which dates back to 1751, employs 388 people in the UK at sites in Stoke-on-Trent, Lymedale and Worcester.

The firm blamed the situation on a failure to sell its site in Stoke combined with the current economic downturn.

Matthew Hammond, Rob Hunt and Mike Jervis of PricewaterhouseCoopers LLP were appointed joint administrators to the company. The administrators said they were trying to secure a buyer for the business.

Royal Worcester & Spode sources, manufactures and sells earthenware and china products from its three British sites as well as one in North America.

Its US trading subsidiary, The Royal China and Porcelain Companies Inc, does not come under the UK administration.

"The UK will continue to work with the US management team who remain autonomous," PwC said.

Mr Hammond, joint administrator and partner at PricewaterhouseCoopers LLP in Birmingham, said: "The company has been undertaking a restructuring of its business in recent years. This has included reductions in overhead, transition to more cost effective outsourcing of production, relocation of warehousing, new product development and the sale of property to reduce debt.

"However, the inability to complete the proposed sale of a site of strategic importance in Stoke and the effect of the current economic downturn on sales has led to the decision by the directors of Royal Worcester & Spode Ltd to place the company into administration.

"Our immediate priority now is to review all options for the company and immediately seek a buyer for the business. During this process we will work with the company's suppliers, employees and customers to try and ensure that a solution is found to provide a structure to take the business forward. We are working with all stakeholders and will be continuing to use the company's extensive retail network and store concessions to supply customers with the full range of products which are in good supply."

-Nova

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Sir Ian Blair asked the Prime Minister to relax laws on officers confronting terror suspects just a day before Jean Charles de Menezes was shot dead, an inquest has heard.

Tony Blair discussed "maximising" legal protection with the former Metropolitan Police Commissioner on the day of the July 21 failed bomb attacks on London.

Innocent Mr de Menezes was killed at point blank range by firearms officers the next morning.

The meeting came to light as a jury was shown a letter Sir Ian wrote to the Home Office on the day of the Stockwell shooting.

Chief Superintendent Steve Swain, a senior officer who helped develop anti-terror tactics at Scotland Yard, refused to comment on the document. When Michael Mansfield QC, for the de Menezes family, asked if Sir Ian was saying officers should be allowed "to just shoot", Mr Swain replied: "I do not remember much of the detail so if you do not mind I would not want to say much about it."

An extract of the letter, read out by Mr Mansfield to the jury at the Oval cricket ground, south London, said: "In the meeting we had with the Prime Minister yesterday, I raised the issue of maximising the legal protection for officers who had to take decisions in relation to people believed to be suicide bombers.

"This is clearly a fast-time decision-making process, one which officers cannot risk the kind of containment and negotiation tactics which would normally be the case. Put simply, the only choice an officer may have could be to shoot-to-kill in order to prevent the detonation of a device.

"In due course I believe we need a document similar to the military rules of engagement."

Police marksmen shot the 27-year-old seven times in the head on a train carriage at Stockwell Tube, south London, on July 22 2005. He had been mistaken for one of the terrorists behind the previous day's failed suicide attacks on the capital.

The letter was "mistakenly" dated July 21 - and had been sent after the shooting, the inquest heard. The inquest, due to last 12 weeks, was adjourned until Friday.

-Nova

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The UK's place at the top of a European league table of cocaine use has been blamed on the Government.

A report by the European Monitoring Centre for Drugs and Drug Addiction (EMCDDA) shows that, for the fifth year running, the UK has recorded the highest number of cocaine users in the EU.

The annual figures show that 7.7% of Britons aged 15-64 have taken cocaine - rising to 11.2% for the 15-24 age group and 12.7% for the those aged between 15 and 34. In each category Spain is second (7%, 8.7% and 9.6% respectively) and Ireland fourth (5.3%, 7% and 8.2%).

Shadow Home Secretary, Dominic Grieve, commented: "This report confirms Britain's status as the cocaine capital of Europe, not to mention the fact we also have the highest prevalence of amphetamine and ecstasy use amongst adults. It is particularly disturbing that we have the highest proportion of fifteen and sixteen-year-olds using cocaine - the Government's failure is betraying a whole generation of young people.

"This is due to Labour's chaotic, confused and staggeringly complacent approach to drugs. Drugs wreck lives, destroy communities and fuel crime - the fact Labour do not recognise this make them part of the problem, not the solution."

The survey says that 12 million EU citizens aged 15-64 admit to having taken cocaine at some time in their lives, while 11 million have used amphetamines and 9.5 million have used ecstasy.

Cannabis use is much higher - 71 million Europeans say they have tried it - about one in four citizens.

In the UK 30.1% of the 15-64 age group say they have used cannabis, exceeded only by France (30.6%) and Denmark (36.5%). Amongst 15-34 year-olds the rate is higher - 41.4% in the UK compared with 43% in France and 49.5% in Denmark.

The Home Office later welcomed the fact that the report concludes that drug use in the UK is stabilising, with numbers using cannabis and heroin actually falling. A Home Office spokesman said: "Home Office figures published last week show overall drug use in the UK is at an all time low and the number of seizures is up 15% on the last annual statistics.

"Alongside this, new figures ... show the number of problem drug users has remained stable. We continue to focus our efforts on reducing the harm caused by illegal drugs through tough enforcement, education and treatment."

-Nova

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Polling entered its closing stages in a by-election on which much of Gordon Brown's political reputation is riding.

If Labour lose Glenrothes to the SNP it would be the party's second Scottish by-election defeat in less than four months after the loss of Glasgow East to the Nationalists.

The constituency is in Gordon Brown's political back yard and losing would be a particular humiliation as he twice visited Glenrothes to campaign personally - the first time he has done so since becoming Prime Minister. His wife Sarah also campaigned in the constituency.

Losing Glenrothes would leave him as the only Labour MP left in Fife - Dunfermline and West Fife, another constituency which adjoins Mr Brown's, fell to the Liberal Democrats in 2006.

For the SNP. taking Glenrothes would be a spectacular victory. It would boost their number of Westminster MPs to eight, taking them close to their record tally of 11 MPs in the mid-1970s. It would also be the first time that Nationalists have made two successive parliamentary by-election gains.

But if Labour hold the seat in what is expected to be a close result, comparisons could be drawn with the Glasgow Garscadden by-election of 1978, when Labour stopped an SNP advance. On the wider front it would vindicate Mr Brown's decision to campaign there and bolster his leadership of Labour after the knock this received at Glasgow East.

Labour sources said turnout was brisk, with some polling stations seeing up to 150 voters in the first hour of polling. But the party was making no predictions on the outcome. "We are not predicting victory, not predicting defeat - it's for the voters to decide," said a spokesman. We know Lindsay Roy is an outstanding local candidate and we believe that will reflect well in (the) vote."

The SNP said turnout was estimated to be in the 15-20% range at lunchtime. They made no public comment but an SNP source said: "We are in as good a position as we were in at this stage in Glasgow East." The SNP's Peter Grant, the leader of Fife Council, voted early with his wife Fiona.

Labour is defending a majority of 10,664 at Glenrothes - but the SNP overturned a bigger deficit to win Glasgow East. The seat, which fell vacant with the death of Labour MP John MacDougall, is also contested by the Liberal Democrats and the Tories and four other candidates.

Eight candidates are contesting the November 6 by-election: Morag Balfour (Scottish Socialist Party); Maurice Golden (Scottish Conservative and Unionist); Peter Grant (Scottish National Party); Louise McLeary (Solidarity - Tommy Sheridan); Jim Parker (Scottish Senior Citizens' Unity Party); Lindsay Roy (Scottish Labour Party); Kris Seunarine (Ukip); Harry Wills (Scottish Liberal Democrats).

-Nova

[JohnCenaFan28]

The economic downturn claimed more jobs when steel giant Corus announced plans to cut 400 posts from its distribution business.

The proposed job losses will be spread across the UK, including 100 in the West Midlands, almost 100 in Shotton, North Wales, 50 in south Wales and 50 in Leeds.

The company said that since the start of the year, its distribution business had been operating in a "volatile and fluctuating" market.

It said: "The impact and continuation of the global economic downturn is having a major effect on steel customers in the automotive, construction and plant and machinery markets. Since September, the business has seen a significant decline in demand.

"As a result, Corus Distribution has introduced a series of actions to reduce expenditure on transport, consumables, energy and other discretionary spending. However, these actions alone will not be sufficient to offset the decline in the market."

Corus said it will start an immediate consultation with workers and will try to achieve the job losses through voluntary redundancy.

"Corus Distribution is committed to ensuring it will do everything possible to assist those people leaving the business, and will be putting in place a range of support services designed to help them through this difficult time," said the company.

The distribution side of the business employs 2,400 workers at 36 sites in the UK and Ireland. The proposed reductions will be spread throughout the business.

Roy Rickhuss, national officer at the steelworkers' union Community, said: "Community will do everything in its power, through the consultation period, to work with the company to save jobs where they can be saved and to help those affected through this difficult time.

"We welcomed the original Corus approach to the current downturn - to avoid knee-jerk reactions and not just cut jobs - so we are disappointed this has not been followed in Corus Distribution. Support will be available from Community's education and training arm, Communitas, to help redundant workers retrain and find new employment."

-Nova

[JohnCenaFan28]

The cost of every new ID card could nearly double, it has been revealed.

Every person wanting a card will have to pay to have their fingerprints and other biometric data taken, in addition to the cost of the card.

Jacqui Smith said the "market" for providing the service was estimated at £200 million.

Ministers will sign contracts for biometric collection services early next year, and providers could include the Post Office and high street stores.

With seven million adults expected to sign up for cards, the cost for each individual of having their fingerprints and other biometric data taken would be around £29. That is on top of the charge for the card, which has been set at £30. The charge will also apply to anyone wanting a new passport.

Shadow home secretary Dominic Grieve said: "We already know that ID cards will do nothing to improve our security but may make it worse. Now we see that the already substantial cost to the tax payer is going to increase. This is particularly outrageous given the current economic crisis."

In a speech to the Social Market Foundation think tank, Ms Smith defended the cards, saying they would become an accepted replacement for lots of different forms of ID used now.

She said they would provide the "security" and "convenience" lacking for the use of birth certificates, utility bills and driving licences.

She said: "The time is fast approaching when the use of bills and bank statements to prove our identity will no longer cut it, and when our personal dictionary of different passwords for different purposes will become too unwieldy to work effectively."

New figures revealed the estimated cost of the scheme to taxpayers has increased by £45 million. It will now reach nearly £4.8 billion.

-Nova

[JohnCenaFan28]

Prison officers at a top security jail housing some of the UK's most dangerous criminals have "no confidence" in the Governor, their union said.

Staff at Whitemoor Prison near March, Cambridgeshire, have passed a motion underlining their dissatisfaction with Steve Rodford, said the Prison Officers Association (POA).

The no-confidence vote comes six months after an internal review by Prison Service investigators raised concerns about Whitemoor.

A report - published in May following an inquiry in February - said Whitemoor officers felt they "lacked control" of inmates and "appeared reluctant" to challenge "inappropriate behaviour" for fear of "doing the wrong thing".

The report also said the high number of Muslim inmates at Whitemoor made some staff "anxious and apprehensive" - and it called for an "intelligence assessment" of possible Muslim prisoner "activities".

Mr Rodford asked for an investigation after five prisoners committed suicide between November 2006 and December 2007.

"Prison officers at Whitemoor have passed a motion of no confidence in the governor," said a POA spokesman. "This is an unusual situation at a high-security prison like Whitemoor. But there is no suggestion of any industrial action. They are hoping that this will result in Prison Service officials at a higher level taking action to address their concerns."

He said Whitemoor found it hard to recruit officers and the jail was understaffed.

But local union officials would be left to deal with the problems and there were no plans for national POA leaders to become involved.

Mr Rodford later said: "A vote of confidence was taken at a recent POA quarterly meeting. To put this into context, the POA currently has a membership of approximately 500 members of whom 115 voted against having confidence in the Governor. This equates to 23% of the membership. This vote of confidence was in relation to revised shift patterns, underpinned by minimum staffing levels, in line with national policy."

-Nova