Police Question UK 'Islamist Plot' Suspects

Counter-terror police have arrested four men in connection with an alleged Islamist terror plot following raids across west London and in the Thames Valley.

The arrests came ahead of this weekend's Remembrance Sunday and Armistice Day events.

Earlier this month, senior police officers and MPs said there was likely to be a significant rise in the number of armed police at Sunday's commemorations in London due to increased fears of a terror attack.

A 27-year-old man was arrested at gunpoint in a car in the street in Southall, west London.

Two other suspects, aged 22 and 25, were detained at addresses in Hounslow and Uxbridge, also in the west of the capital.

Police vans and tape could be seen outside two High Wycombe addresses

The fourth man, 19, was detained at an address in High Wycombe, Buckinghamshire.

Armed police took part in the operations in Southall, Hounslow and High Wycombe but no shots were fired.

The arrests were made on Thursday evening and in the early hours of Friday.

Counter-terrorism officers were leading searches of various properties in Hounslow, High Wycombe, Uxbridge, Southall, Greenford and Hayes.

The properties include a terraced house on Desborough Avenue in High Wycombe, Sky's Tom Parmenter reported from the scene.

Parmenter said there was some concern in the community over the arrest of the man in the town and the alleged "disproportionate" use of force by anti-terror police.

Youth worker Saqib Deshmukh, who knows the suspect, told Sky News: "One of the concerns that we heard was that it was a disproportionate use of force and armed response. Did it necessitate that? Was there a need for that to happen?

"Was there an actual threat on the ground? And that's a concern - that the actual number of forces and the level of force used is disproportionate and it doesn't merit it based on the evidence."

Local shopkeeper Sutha Tangaraj works opposite the house and told Sky News he saw the armed police arrive.

"At about 7pm or 7:30pm at least half a dozen armed police surrounded the house, they knocked the door and no one answered.

"A lady in the house eventually opened the door and they went and have since been searching ever since."

He said police were at the same address six months ago.

It is understood the men were believed to be plotting an attack on UK soil

Mr Tangaraj said the man who lives at the property "is a regular customer and lives in the house with his family - his mother is very chatty".

The four men were all taken to police stations in central London. 

Scotland Yard said the arrests and subsequent searches were part of an "ongoing investigation into Islamist-related terrorism".

Sky's home affairs editor Mark White said: "Scotland Yard are officially giving very little in the way of information on these arrests, but sources are suggesting it is linked to an alleged extremist plot against the UK."

The arrests came a few months after the national terror threat level in the UK was raised from substantial to severe, meaning a terrorist attack is "highly likely".

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Call For Probe Into 'Cannibal' Killer's Releas

The decision not to monitor a man who then murdered a woman in a reported act of cannibalism after he was released from prison must be investigated, a Welsh politician has said.

Cerys Marie Yemm, 22, died after an attack at a homeless hostel in the village of Argoed, South Wales.

Sources have said she was found with substantial facial injuries.

Police fired a 50,000-volt Taser at Matthew Williams to try to stop the attack in the early hours of Thursday morning.

The 34-year-old was arrested but later became "unresponsive" and died in custody

Matthew Willliams is understood to have served time for violent offences

It is believed Williams had recently been released from jail after serving time for violent behaviour.

Welsh Assembly member William Graham said it was vital to look into the terms of the killer's release.

"It is now clear that Mr Williams posed a risk to the public and I am extremely concerned that monitoring appears to have been deemed unnecessary," he told the BBC.

"If true, a wider inquiry into the circumstances surrounding his release is urgently required.

The attack happened at a homeless hotel in the village

"Questions must be answered by authorities and a full explanation provided on the decisions taken in this extremely tragic case."

Gwent Police have said they are not looking for any other suspects in the murder investigation.

The Independent Police Complaints Commission has also started its own probe into the suspect's death.

The post-mortem examination on Miss Yemm has started but Chief Inspector Paul Staniforth said it would "take some time".

He refused to be drawn on gruesome speculation over the attack, telling reporters it was "unhelpful and very upsetting for the family of the deceased".

It is believed Miss Yemm, who worked at Next, had met her attacker through mutual friends.

"I feel stunned, shocked and sick to my stomach," said a friend, who did not want to be named.

"It's horrific. She was a lovely person. She didn't deserve to die like that."

People in Argoed, 20 miles north of Cardiff, have told Sky News they are "sickened" by the apparent savagery of the attack.

The Sirhowy Arms Hotel - where Miss Yemm was discovered - is used by Caerphilly Council to house homeless people while they wait for permanent accommodation.

Local resident Susan Gibbs told Sky: "We have had a lot of problems up there. Every other week, well every other day sometimes, there are police up there."

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Labour Pair Deny Secret Pact Over Miliband

Two of the most senior members of Ed Miliband's shadow cabinet have strenuously denied making a secret pact in the event of the Labour leader stepping down.

Shadow home secretary Yvette Cooper and shadow health secretary Andy Burnham were reported by The Times to have struck a "non-aggression pact".

The newspaper quoted one figure as saying: "It's about presenting a joint offer to make a contest unnecessary."

But Ms Cooper's spokesman said there was "no foundation whatsoever" to the suggestion.

He said: "The spreading of lies like this only damages the Labour Party and should be seen as exactly what it is - complete and utter garbage. Yvette, the shadow cabinet and the party are united behind Ed's leadership."

Video: Balls Denies Miliband Plot Rumours

The shadow health secretary's spokesman insisted there were "no discussions of this kind", adding: "The party is united behind Ed's leadership and we are confident he will become the next Prime Minister."

Mr Miliband was forced to deny reports that several backbenchers had demanded his resignation amid concerns over Labour's prospects of victory at next year's general election.

Dismissing the reports as "nonsense", Mr Miliband insisted the party was focused "on the country and the things that matter to the country".

Video: Cooper: Miliband Doing A Good Job

In a show of support, former cabinet minister David Blunkett has called for an end to "this bout of political insanity".

"When you are standing on the edge of a cliff it is unwise to believe that by jumping you will suddenly learn to fly," he told The Guardian.

One of Labour's biggest individual donors, JML founder John Mills, urged the party to "rally behind its leader ... not to get involved in internecine fighting like this".

Video: Labour Party Is 'Dying'

But Lord Soley, who as an MP chaired the parliamentary party, issued a bleak vision of the party's general election prospects and suggested Mr Miliband should take a less prominent role as he was not seen by voters as a "charismatic potential prime minister".

A YouGov poll for LBC radio found that nearly half of people questioned believe the party's chances of regaining power would be improved if Mr Miliband was replaced.

And there was further bad news for Mr Miliband as a recording emerged of shadow Welsh secretary Owen Smith saying the party is "dying" and that unless it becomes "much, much more vigorous ... then we are lost".

Video: Miliband's Approval Rating New Low

His remarks were made during a fringe event at a conference organised by CLASS - a left-wing think tank.

A Labour spokesperson said: "Anyone who was at the event would know that this comment was a humorous dig at the age of the people attending the fringe meeting and not a comment on the Labour movement.

"It is ludicrous to twist it in this fashion.‎"

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PM To Warn EU Leaders Over £1.7bn Demand

By Darren McCaffrey, Sky News Politics Reporter

The scale and timetable of Britain's proposed £1.7bn extra contribution to the European Union is unacceptable, both David Cameron and George Osborne will tell EU leaders today.

The Chancellor, who is attending a meeting of Economic and Financial Affairs Council (ECOFIN) ministers in Brussels, will start negotiations with the intention of delaying and reducing what the UK should pay.

Meanwhile, Mr Cameron, at a meeting of northern European leaders in Helsinki, is trying to gain support for Britain's position with the message that it is the UK this time - but could be another country next.

The meeting is part of a two-day summit of Scandinavian and Baltic state leaders called the Northern Future Forum.

The primary aim is to promote growth and economic reform throughout Europe, but Downing Street is clear the Prime Minister will be raising other issues such as budget control and migration.

Video: PM: £1.7bn EU Surcharge 'Appalling'

Mr Cameron's hopes of winning allies in his attempt to curb internal migration within the EU have been met with strong resistance from other European leaders, including hosts Finland.

Finnish leader Alexander Stubb told the Financial Times: "We need to understand what the UK wants, and the UK needs to learn where are the limits of other member states.

"Whether some kind of arrangement can be found, I don't know.

Video: PM Defiant Over £1.7bn EU Bill

"But to start putting restrictions on free movement in one way or another I would find quite difficult."

Sweden and Germany's opposition to migration reform have made the Prime Minister's task very difficult.

But Mr Osborne may have more success with the surcharge.

Video: EC Chief: £1.7bn UK Surcharge Fair

There are suggestions Brussels may be willing to allow interest-free instalments rather than the UK having to pay the full amount on 1 December.

The Labour Party has piled on the pressure, with Ed Balls and Douglas Alexander saying "the Government must have all eyes on the detail of the deal being discussed, not looking back over their shoulders at the Eurosceptic backbenchers who still seem to be pulling the strings".

A programme of instalments will not go far enough for the UK, but could be the start of a process allowing for an acceptable agreement that Mr Cameron can sell to his party and the country.

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Petrol Price Guarantees Demanded By Treasury

A failure by petrol firms and supermarkets to pass on the full benefit of falling oil prices to customers filling up at the pumps would be an "outrage", a Cabinet Minister will warn.

Treasury Chief Secretary Danny Alexander is to demand guarantees from fuel companies and distributors that they are doing all they can to pass on the price cuts to hard-pressed motorists.

Danny Alexander is seeking assurances on petrol prices

Mr Alexander will use a speech in Aberdeen to say consumers feel petrol prices rise "like a rocket" when oil costs go up, but fall "like a feather" when they come down.

And people would "rightly be angry" if they felt prices were not coming down as much as they should.

Video: 'We Still Pay Too Much For Fuel'

Brent crude slumped as low as $82 (£51) a barrel earlier this week, its lowest level in just over four years due to concerns about over-supply.

The Liberal Democrat frontbencher will say: "Especially in the current economic circumstances people would rightly be angry if they feel that pump prices don't fall as much as they should on the back of falling oil prices.

"I believe it's called the rocket and feather effect.

"The public have a suspicion that when the price of oil rises, pump prices go up like a rocket.

"But when the price of oil falls, pump prices drift down like a feather.

"This has been investigated before and no conclusive evidence was found.

Video: Cuts: A Loss Leader Or Real Deal?

"But even if there were a suspicion it could be true this time it would be an outrage."

Mr Alexander promises to write to the industry's major players "seeking their assurance that they are doing all they can to pass on the benefit of falling oil prices as quickly as possible".

He will say: "When the price of oil falls, the public have a right to expect pump prices to fall like a stone, not a feather."

Pointing to the Treasury's fuel duty freeze, Mr Alexander will say: "I have made sure over the last four years that Government has helped with the cost of fuel.

"And when the oil price falls, industry must do all it can to help too."

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Banking Industry Competition Probe Ordered

Regulators have ordered a full market inquiry into banks over fears the dominance of the largest lenders is stifling competition.

The Competition and Markets Authority (CMA) said its investigation would scrutinise the personal current account and small business  retail banking sectors.

Sky News reported on Tuesday night how major banks had called off their efforts to stall the inquiry.

The UK's four largest banks, Lloyds, RBS, Barclays, and HSBC collectively supply 77% of personal current accounts in the UK - a market worth £8bn.

The 'Big Four' also control about 85% of all small and medium-sized business accounts, an industry worth another £2bn.

Video: 'Retail Banking Isn't Working'

The CMA said there has been "very little movement" in their collective market share as the level of customers shopping around and switching current accounts is "low".

It blamed limited transparency in the sector and had previously suggested a banking comparison website as a first step to improving transparency and aid competition.

Challenger banks, such as Metro Bank and supermarket lenders, have grown their customer bases but failed to make the impact that had been hoped for to aid lending to small firms in particular.

The seven-day switch initiative - to ease the amount of time customers would have to wait to change bank - has helped grow numbers changing their lender.

The spin-off of TSB from Lloyds and the looming flotation of Virgin Money may also help boost competition.

But the CMA said it was concerned about continuing barriers of entry and expansion in the banking sector, which limit the ability of smaller and newer providers to develop their businesses.

The investigation is tipped to take up to two years to complete.

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EU Migrants Pay In More Than They Take - Study

EU migrants contribute more to the UK in taxes than they receive in benefits and services, according to new research.

But the study showed those arriving from outside Europe over a 17-year period took more from the public purse than they put back in.

The findings come as David Cameron moves to tighten the UK's immigration controls in the face of the growing popularity of UKIP.

The Prime Minister is aware of the need to calm Tory jitters ahead of this month's crunch by-election in Rochester and Strood, where the party is desperate to prevent a second seat falling to UKIP.

The University College London (UCL) report revealed European immigrants made a positive financial contribution of £4.4bn to the UK between 1995 and 2011.

Video: Report: Migrants Boost UK Economy

However, immigrants from outside the European Economic Area (EEA) made a negative contribution of £118bn.

Over the same period, UK-born workers made a negative contribution of £591bn.

The figures improved for more recent arrivals with EU migrants between 2001-11 making a positive contribution of £20bn, and those from outside Europe £5bn.

Professor Christian Dustmann, director of UCL's Centre for Research and Analysis of Migration (Cream) and co-author of the study, said: "A key concern in the public debate on migration is whether immigrants contribute their fair share to the tax and welfare systems.

"Our new analysis draws a positive picture of the overall fiscal contribution made by recent immigrant cohorts, particularly of immigrants arriving from the EU."

He added: "European immigrants, particularly, both from the new accession countries and the rest of the European Union, make the most substantial contributions.

"This is mainly down to their higher average labour market participation compared with natives and their lower receipt of welfare benefits."

Responding to the report, chairman of the MigrationWatch UK think tank Sir Andrew Green said: "This report confirms that immigration as a whole has cost up to £150bn in the last 17 years.

"As for recent European migrants, even on their own figures - which we dispute - their contribution to the exchequer amounts to less than £1 a week per head of our population."

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