19 November 2012 Last updated at 09:23 ET

Silk report: UK government to 'seriously consider' tax proposals

Welsh Secretary David Jones (l) said the report from Paul Silk (r) would be taken 'very seriously indeed' by the UK government

Serious consideration will be given to a report calling for Wales to have its own tax system, the UK government says.

The Silk Commission's report says a referendum should be held on allowing the Welsh government to vary income tax.

Welsh Secretary David Jones said work would begin straight away to decide which, if any, of the report's proposals are introduced.

But he denied it was part of a slide towards ever greater devolution.

He said an analysis of the Silk report would start immediately and that his department had already spoken to the Treasury and First Minister Carwyn Jones.

The report says the Welsh and UK governments should share responsibility for income tax rates, but only if voters consent to the changes in a referendum.

The Conservative-Liberal Democrat coalition in Westminster promised to set up an inquiry into how the Welsh government is funded.

The Silk Commission began its work following the Yes vote in the referendum in March last year to give the assembly more law-making powers.

David Jones was asked if it was part of a "slippery slope" towards ever greater devolution.

But he said: "I don't think it can be suggested that there is anything that has been sprung upon the Welsh people. They were always aware that this was part of the process."

He hailed a "very thorough piece of work" from the all-party Silk Commission. Whitehall and Cardiff would look at the proposals "to decide which if any are appropriate to take forward", he said.

"We are taking it very seriously indeed," he added.

"It's a powerful piece of work which we will be giving very careful scrutiny to."

The Welsh government welcomed a recommendation to give it powers to borrow money.

First Minister Carwyn Jones said: "I have long argued that there would need to be a referendum before powers to vary income tax rates were devolved and I am glad to see that the commission has endorsed this view.

"We will look carefully at the proposal to move towards devolution of some powers over income tax - provided the people of Wales have the final say."

'Balanced'

At a press conference in Cardiff Bay, commission members repeatedly stressed they had produced a "balanced" report.

The commission's Labour member Sue Essex, a former Welsh finance minister, said: "This is not a pie in the sky thing we are talking about. It's possible, it's doable in Wales."

Her party's shadow Welsh secretary Owen Smith recently said that income tax powers "probably oughtn't be devolved right now" and warned they could leave Wales worse off.

After the report was published on Monday, he said it was right to recommend a referendum.

"In assessing those recommendations, we will need to test not only whether the proposals are in the financial interest of the Welsh people but also whether they pass the test of enabling an equitable and sustainable financial settlement for the whole of the UK," Mr Smith said.

Nick Bourne, the former leader of the Conservatives in the assembly who sits on the commission, said his party would get on board with the proposals.

"It's good for Wales, it's good for the United Kingdom. Why wouldn't they be comfortable with this?" he said.

Tory finance spokesman in the assembly, Paul Davies, said: "We believe that this5 is a comprehensive package of reforms to make the Welsh government more accountable for its decisions."

Welsh Liberal Democrat leader Kirsty Williams said: "We have been arguing for greater devolution for over a century. This is the latest step in our long campaign for a federal UK.

"It will strengthen Wales and help make a real difference to the lives of people across the country."

Plaid Cymru said the report does not go far enough.

Party finance spokesman Ieuan Wyn Jones said corporation tax should also be devolved - something the commission rejected unless the tax was devolved to Scotland and Northern Ireland.

"Currently we have little or no room to manoeuvre within the straightjacket of a block grant," Mr Jones said.

'Bureaucracy'

David Lermon, director of the Institute of Chartered Accountants in England and Wales, said: "We are more cautious about the recommendations relating to the partial devolution of income tax.

A referendum is recommended before income tax varying powers are devolved to the assembly

"They will inevitably introduce greater complexity and bureaucracy into the UK tax system, two qualities that the tax system already has in abundance."

The Federation of Small Businesses (FSB) applauded a call for the full devolution of business rates.

FSB Wales head of external affairs Iestyn Davies said: "It is now imperative that this recommendation is acted upon to pave the way for a fairer, more progressive and wide-reaching change for the business community in Wales."

The Electoral Reform Society suggested the current 60 assembly members might not be enough to scrutinise the Welsh government if it got tax powers.

Steve Brooks, Director of the Electoral Reform Society Wales, said: "We need a strong National Assembly that's able to hold the government's feet to the fire, and scrutinise how taxes are raised, public money is spent, and laws made."

Spencer Birns, head of commercial operations at Cardiff Airport, said: "The ability to control long haul air passenger duty rates is just one tool in the armoury we have to improve air passenger services to and from Wales and increase passenger traffic."

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14 November 2012 Last updated at 13:05 ET

David Petraeus will testify to Congress on Benghazi

President Obama news conference

The former director of the CIA, David Petraeus, will testify to Congress about the attack on the US consulate in Libya, a leading senator says.

Dianne Feinstein said Gen Petraeus would give evidence only about September's Benghazi attack, in which four Americans were killed.

He would not testify about his resignation over an affair with biographer Paula Broadwell, she added.

Republican senators have called for a joint committee to probe the attack.

Confirmation that Gen Petraeus will attend a hearing of the Senate Intelligence Committee comes after days of reports focussing on the fallout from the revelation that he had an extramarital affair with Mrs Broadwell.

Following his resignation it then emerged that Jill Kelley, who filed a harassment report over emails she received that led to the discovery of the affair, was in contact with Marine Gen John Allen.

The link to Gen Allen - currently commanding US forces in Afghanistan and nominated to be the top Nato commander in Europe - prompted the US defence secretary and the White House to stress they have complete confidence in him.

But Mr Panetta requested that Gen Allen's nomination as Supreme Allied Commander of US and Nato troops in Europe be placed on hold, saying it was the "prudent" thing to do.

Gen Allen has denied any wrongdoing and has spoken to Gen Martin Dempsey, chairman of the Joint Chiefs of Staff, to emphasise he is innocent of misconduct, a spokesman for Gen Dempsey said.

Divisive issue

Gen Petraeus could appear before congressional committees as early as Thursday, although no final date for a hearing has been confirmed.

Ms Feinstein, who chairs the Senate Intelligence Committee, said the general would be asked about the Benghazi attacks, which took place while he was in charge of the CIA.

The attack - initially blamed on a spontaneous protest over an anti-Islamic film - remains a divisive issue in Washington and a focal point of Republican anger.

Arizona Senator John McCain led a group of Republican senators on Wednesday calling for the establishment of a special committee to investigate the deaths of the four Americans, which included the Ambassador Christopher Stevens, in Benghazi.

They said there was need to find out whether there had been a cover-up over the attack, which Senator Lindsay Graham referred to in the same breath as Watergate and the Iran/Contra scandal.

Meanwhile, acting CIA Director Michael Morell began meetings with legislators in the Senate on Tuesday to answer questions about Gen Petraeus' resignation.

Legislators are concerned about a possible breach of national security after it was reported that classified material was discovered on Mrs Broadwell's computer.

However, FBI officials have said the agency concluded in its investigation that there had not been any security breach.

President Barack Obama is also due to make his first public comments on the scandal at a news conference scheduled for 13:00 EST (18:30 GMT), before meeting business leaders.

He hopes to concentrate on his economic agenda and discuss plans for reaching a deal to avoid a package of spending cuts and tax rises known as the "fiscal cliff".

'Honorary consul'

While Gen Petraeus attempts to focus on Benghazi, Pentagon investigators are also examining as many as 30,000 pages of Gen Allen's documents.

They are said to include extensive communication between the general and Mrs Kelley, a 37-year-old, married Florida socialite.

The emails are now understood to have included pet names such as "sweetheart" or "dear" but were not sexually explicit or seductive, the Associated Press reports.

In May, Mrs Kelley reported anonymous, harassing emails to the FBI. The agency launched an investigation that traced the emails to Mrs Broadwell and revealed her affair with Gen Petraeus.

Mrs Kelley has been described as a "social liaison" for the MacDill Air Force Base near Tampa, Florida. Home to the US Central Command, both generals have served at the base in recent years.

The Kelleys are said to have developed close friendships with Gen Petraeus and Gen Allen, both of whom wrote letters supporting Mrs Kelley's twin sister, Natalie Khawam, in a messy custody battle for her son.

Mrs Kelley is known to have thrown extravagant parties for the officers posted there and in August was appointed as an honorary consul representing South Korea, ABC News reports.

It is reported that her Mercedes car displays consular licence plates reading "JK1".

In a recording of a phone call to police on Monday, Mrs Kelley asked for diplomatic immunity to have media crews waiting outside her house removed.

"I'm an honorary consul general, so I have inviolability, so they should not be able to cross my property. I don't know if you want to get diplomatic protection involved as well," Mrs Kelley can be heard saying.

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14 November 2012 Last updated at 07:19 ET

Bank of England cuts UK growth forecast for 2013

Bank of England cuts UK growth forecast for 2013

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The Bank of England has cut its growth forecast to 1%, and said recovery will be "slow and protracted" with inflation staying higher than expected.

Continuing global economic fragility meant the previous forecast of about 2% was unlikely to be achieved, it said.

Bank governor Sir Mervyn King said he had not "lost faith" in quantitative easing as a way to stimulate growth.

He hailed the improving jobs figures, but said it was not easy to square them with the picture of weak growth.

The quarterly report said inflation would not now fall towards the government's 2% target until mid-2013, rather than in the first half of next year, as previously thought.

The report said the UK could be stuck in a "low-growth" environment, with economic problems in the eurozone and the rest of world continuing to have an impact domestically. Output would remain below pre-financial crisis levels for the next three years.

The Bank's report came on the day that the Office for National Statistics said that the UK unemployment rate fell to 7.8% in the July-September quarter, down from 8% in the previous three months.

However, the claimant count went up in September, leading some economists to suggest that the recent resilience of the jobs market was beginning to weaken.

Sir Mervyn told a news conference: "I don't think one would say that the data released this morning were weak. There are some signs in the claimant count of a small increase, that maybe it's beginning to move, but there were still falls in unemployment, a rise in employment [and] a big increase in total hours worked.

'Overly optimistic'

"This is still a pretty strong labour market and, of course, it is not easy to reconcile that with the picture of underlying growth being still so weak," he said.

He warned that growth from quarter to quarter would continue to fluctuate. In the April-June quarter growth was depressed by one-off factors such as the unseasonably bad weather and had given a misleadingly weak picture of the economy.

Similarly, growth in the July-September period was boosted by one-off factors including the Olympics and gave "an overly optimistic impression of the underlying trend," he said.

"Continuing the recent zig-zag pattern, output growth is likely to fall back sharply in Q4 [between October and December] as the boost from the Olympics in the summer is reversed. Indeed, output may shrink a little this quarter," he said.

The Bank has previously predicted that inflation might fall towards the government's 2% target in the first half of next year.

But it now expects inflation to stay higher for longer. "We face the rather unappealing combination of a subdued recovery, with inflation remaining above target for a while," Sir Mervyn said.

He said that the Bank had not ruled out further asset purchases to stimulate growth. He said that with the global economy still struggling, "there are limits to the ability of domestic policy to stimulate private sector demand as the economy adjusts to a new equilibrium".

"But the [Monetary Policy] Committee has not lost faith in asset purchases as a policy instrument, nor has it concluded that there will be no more purchases."

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10 November 2012 Last updated at 11:50 ET

Gmail probe led FBI to CIA chief David Petraeus's affair

BBC's Adam Brookes: "This is an extraordinary fall from grace for Petraeus"

CIA director David Petraeus's extra-marital affair, which forced him to resign, was uncovered during an investigation into a potential breach of his Gmail account, reports say.

Unnamed officials said the FBI was checking his private account when it found Mr Petraeus was having an affair with his biographer, Paula Broadwell.

Mr Petraeus described his behaviour as "unacceptable" for the leader of the nation's main intelligence agency.

President Barack Obama has praised him.

His resignation came just three days after President Obama's re-election.

The four-star general became CIA boss in 2011 after heading international forces in Iraq and later in Afghanistan.

He was the highest-profile military officer of the post-9/11 years, winning plaudits for his role running the "surge" in Iraq and implementing a counter-insurgency strategy in Afghanistan.

He left his command role in Afghanistan in mid-2011, resigning from the US Army to head the CIA after Leon Panetta became defence secretary.

'Extremely poor judgment'

Shortly after Mr Petraeus resigned, reports emerged that the FBI had uncovered the affair during the course of an investigation into a potential breach involving his emails.

The FBI was monitoring Mr Petraeus's email account to check whether Mrs Broadwell had access to it, administration officials were quoted as saying.

FBI agents then met Mr Petraeus to discuss the investigation.

Announcing his decision to stand down, the former general was full of contrition.

Paula Broadwell graduated from the same West Point academy as Mr Petraeus

"After being married for over 37 years, I showed extremely poor judgment by engaging in an extra-marital affair," Mr Petraeus said in a statement.

"Such behaviour is unacceptable, both as a husband and as the leader of an organisation such as ours. This afternoon, the president graciously accepted my resignation."

Mrs Broadwell is a Harvard University research associate and PhD candidate at King's College, London.

She has a military background, graduating from the same West Point Academy as Mr Petraeus. She is married to radiographer Scott Broadwell and lives in Charlotte, North Carolina.

She spent months alongside the then-general in Afghanistan while researching her 2011 book, All In: The Education of General David Petraeus. The book was widely seen as a positive account of his leadership methods.

Last week Mrs Broadwell wrote a piece for Newsweek entitled General David Petraeus's Rules for Living.

Obama praise

In his statement, Mr Obama said Mr Petraeus had "provided extraordinary service to the United States for decades", citing both his time as CIA director and as a top general.

"By any measure, through his lifetime of service David Petraeus has made our country safer and stronger."

"Going forward, my thoughts and prayers are with Dave and Holly Petraeus, who has done so much to help military families through her own work."

Senior Obama adviser David Axelrod said the president had not known about the Petraeus issue during the campaign, and that the former general had come to Mr Obama after the election to offer his resignation.

CIA deputy director Michael Morell will serve as acting director of the agency, the White House confirmed. Eventually Mr Obama must nominate a new director to head the agency, who will then need to be confirmed by the Senate.

Mr Morell, who is well respected at both the White House and on Capitol Hill, also served as acting director following the departure of former CIA chief Leon Panetta.

He is expected to testify before the Senate Intelligence Committee at a hearing scheduled for next week on the deaths of US personnel during an attack on the US consulate in Benghazi, Libya.

The CIA faces a potential period of instability after Mr Petraeus' resignation, as it also deals with a budget squeeze.

Source : bbc[dot]co[dot]uk Read More

10 November 2012 Last updated at 04:28 ET

Entwistle says BBC wrong on Newsnight abuse report

The apology statement read out at the start of the programme

A BBC Newsnight report in which an abuse victim accused a former Tory politician of sex abuse should not have been broadcast, BBC director general George Entwistle says.

He gave an unreserved apology to Lord McAlpine after it wrongly implicated him in abuse at care homes in Wales.

Mr Entwistle, the BBC's editor-in-chief, said he was not aware of the episode until after it was broadcast.

An internal investigation is under way into what went wrong.

The abuse victim, Steve Messham, apologised to Lord McAlpine, a former Tory treasurer during Margaret Thatcher's leadership, after saying he did not assault him.

Newsnight had reported Mr Messham's claims against a leading 1980s Tory politician but did not name him.

'Totally unacceptable'

Mr Entwistle, speaking on BBC Radio 4's Today programme a day after the apology, said: "We should not have put out a film that was so fundamentally wrong. What happened here is so totally unacceptable. In my view the film should not have gone out".

He has commissioned a report from BBC Scotland director Ken MacQuarrie into what happened with the Newsnight investigation, and expects it see it on Sunday.

"This was a piece of journalism referred to senior figures within News, referred up to the level of the management board and had appropriate attention from the lawyers," Mr Entwistle said.

"The question is, in spite of all that, why did it go wrong? Something definitely went wrong, something definitely and clearly and unambiguously went wrong."

Asked if he should have been aware of it as he is the editor-in-chief, he said "not every piece of journalism made inside the BBC is referred to the editor-in-chief".

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9 November 2012 Last updated at 17:57 ET

BBC apologises for Newsnight child abuse report

Lord McAlpine's solicitor Andrew Reid: "We have to look at Newsnight and the way in which they behaved"

The BBC has issued an unreserved apology for a Newsnight report which led to Lord McAlpine being wrongly implicated in the alleged sexual abuse of children at north Wales care homes.

It comes after a victim, Steve Messham, apologised to the former Tory treasurer after saying he did not assault him.

Newsnight had reported Mr Messham's claims against a leading 1980s Tory politician but did not name him.

The BBC also announced an "immediate pause" in all Newsnight investigations.

Earlier, Lord McAlpine said the claims were "wholly false and seriously defamatory".

His solicitor, Andrew Reid, said the peer will take legal action against those who later named and linked him to the claims.

The BBC's statement said: "On 2 November, Newsnight broadcast a report that looked into criticism of the North Wales Abuse Tribunal.

"The report included an interview with Steve Messham, an abuse victim who said that a senior political figure of the time had abused him.

"We broadcast Mr Messham's claim but did not identify the individual concerned. Mr Messham has tonight made a statement that makes clear he wrongly identified his abuser and has apologised.

"We also apologise unreservedly for having broadcast this report."

The BBC said that, on Friday night, director general George Entwistle had ordered the following actions:

• Sending in a senior news executive to "supervise" Friday night's edition of Newsnight
• An apology broadcast on Friday's programme
• An "immediate pause in all Newsnight investigations to assess editorial robustness and supervision"
• Commissioning BBC Scotland director Ken MacQuarrie to write an "urgent report for the DG covering what happened on this Newsnight investigation"
• An "immediate suspension" of all co-productions with the Bureau of Investigative Journalism which Newsnight worked with on the programme

Mr Messham, a former resident of the Bryn Estyn home, last week told Newsnight he had been abused by a senior politician of the Thatcher era.

Steve Messham has apologised for incorrectly identifying Lord McAlpine as his abuser

He called for a new investigation claiming a report by Sir Ronald Waterhouse in 2000 had not uncovered the full scale of the abuse.

Mr Messham said police had shown him a picture of his abuser but incorrectly told him the man was Lord McAlpine.

He has offered "sincere and humble apologies" to the peer and his family.

In a statement on Friday evening Mr Messham said: "After seeing a picture in the past hour of the individual concerned, this [is] not the person I identified by photograph presented to me by the police in the early 1990s, who told me the man in the photograph was Lord McAlpine."

He later told BBC News he was "actually mortified" when he realised.

He said recent coverage of the scandal had "brought everything back to the fore but I just want justice for everybody and hope we get justice for everybody".

"But I certainly don't want the wrong people accused, that is also wrong.

"That's why I'm speaking out now and I hope people believe what I say. I am sincerely sorry."

North Wales Police said it would be inappropriate to comment on Mr Messham's allegations about the mix-up over identifying the picture "because an investigation is ongoing".

'Seriously defamatory'

Earlier Lord McAlpine's solicitor, Andrew Reid, said the peer had "no choice" but to take legal action over claims linking him to abuse at Bryn Estyn children's home in Wrexham.

The solicitor also criticised the way Newsnight aired Mr Messham's claims last week.

Lord McAlpine, who was Conservative Party treasurer from the late 1970s until 1990, said: "I have never been to the children's home in Wrexham, nor have I ever visited any children's home, reform school or any other institution of a similar nature."

Lord McAlpine, whose grandfather founded the McAlpine construction firm, is a life peer who took the title of Baron McAlpine of West Green in Hampshire.

He became Conservative Party Treasurer in the late 1970s and held the post until 1990. He now lives in Italy.

Lord McAlpine said: "I do not suggest that Mr Messham is malicious in making the allegations of sexual abuse about me.

"If he does think I am the man who abused him all those years ago I can only suggest that he is mistaken and that he has identified the wrong person."

On Tuesday the Home Secretary Theresa May announced a new police inquiry into the allegations of child abuse in north Wales in the 1970s and 1980s.

Mrs May said the head of the National Crime Agency would lead the inquiry.

Separately Mrs Justice Macur will investigate the terms of the Waterhouse abuse inquiry, which began in 1996.

The Home Office said there would be no change to the inquiries announced by Mrs May, following the statements by Mr Messham and Lord McAlpine.

Newsnight is already the subject of a BBC inquiry, headed by ex-Sky News boss Nick Pollard, into why the programme dropped an investigation into sexual abuse claims against Savile last year.

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8 November 2012 Last updated at 09:31 ET

David Cameron warns of 'witch-hunt' over child abuse claims

David Cameron: "There is a danger this could turn into a witch-hunt"

David Cameron fears a "witch-hunt" against gay people as a result of child abuse allegations circulating online.

The prime minister made his comment after being unexpectedly handed a list of names on ITV1's This Morning, which the presenter said were being mentioned online as paedophiles.

The PM, who did not look at the names, said anyone with any information about paedophiles should go to the police.

He was addressing historic claims of a paedophile ring linked to No 10.

The issue was raised by Labour MP Tom Watson in the Commons a fortnight ago.

There have also since been claims by a victim that an unnamed prominent Conservative politician from the Thatcher era was involved in abuse in north Wales.

Presenter Phillip Schofield told the prime minister that there were lots of allegations circulating online about people who might have carried out abuse.

Online gossip

Mr Cameron said that he had heard "all sorts of names being bandied around".

During the live interview, the presenter handed the PM a card with the names on it, saying that they were people Mr Cameron knew and asking whether he would be talking to them.

Mr Cameron replied with a warning: "There is a danger, if we're not careful, that this could turn into a sort of witch-hunt, particularly against people who are gay and I'm worried about the sort of thing you are doing right now - giving me a list of names that you've taken off the internet."

Mr Cameron said that if anyone had any information about anyone who was a paedophile "no matter how high up in British society they are - that's what the police are for".

Downing Street sources said Mr Cameron's fears about a "witch-hunt" were prompted by his objection to online gossip associating homosexuality with paedophilia.

A senior aide to the prime minister said blameless people who were not connected to any child abuse investigations currently being carried out were being targeted by online gossip.

It was "important allegations are handled properly - and people's reputations are not unnecessarily smeared", added the source.

A string of official inquiries have been launched into child abuse allegations since revelations about the activities of BBC television star Jimmy Savile.

Earlier this week, Home Secretary Theresa May announced a new police inquiry into allegations of child abuse in north Wales in the 1970s and 1980s.

Separately, Mrs Justice Macur will investigate the terms of the Waterhouse abuse inquiry, which began in 1996.

The Conservative Party has confirmed it is investigating reports linking one of Margaret Thatcher's former close aides to the allegations.

Child protection charity the NSPCC has called on the government to commit to an over-arching "lessons learned" review to pull together the findings from all the current inquiries into child abuse, once they are completed.

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7 November 2012 Last updated at 10:17 ET

Barack Obama says: 'Best is yet to come'

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Barack Obama: "I have never been more hopeful"

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US Presidential Election 2012

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US President Barack Obama has pledged "the best is yet to come", after winning a decisive re-election victory over Republican challenger Mitt Romney.

After a hard-fought campaign which underlined America's political divide, Mr Obama pledged, as he did four years ago, to work with his opponents.

Mr Romney echoed that call for unity as he graciously admitted defeat.

Voters also left the Democrats in charge of the Senate and Republicans leading the House of Representatives.

In the electoral college, the state-by-state tally that determines US presidential elections, Mr Obama has won 303 electoral votes to Mr Romney's 206.

'People before politics'

America's first black president sealed victory with a clean sweep of the most important swing states, including Ohio, Virginia and Pennsylvania.

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Mr Romney could only snatch Indiana and North Carolina from his rival's 2008 grasp.

The final swing state - Florida - remains too close to call.

But the Democratic incumbent's lead in the popular vote count was much slimmer - he had 50.3% to 48.1% for Mr Romney.

Thousands of Obama supporters hugged and cheered in the Chicago convention centre where he delivered his victory speech in the early hours of Wednesday.

"We have picked ourselves up, we have fought our way back and we know in our hearts that for the United States of America the best is yet to come," said Mr Obama, 51.

He was returning to the White House "more determined, and more inspired than ever about the work there is to do", he said.

Mr Obama pledged to work with Republican leaders in Congress to reduce the government's budget deficit, fix the tax code and reform the immigration system.

He also offered to meet with Mr Romney to discuss how they could work together.

The Republican admitted defeat with a brief speech shortly after midnight on Wednesday in Boston.

"This is a time of great challenges for America, and I pray that the president will be successful in guiding our nation," Mr Romney said.

The 65-year-old former Massachusetts governor urged politicians on both sides to "put the people before the politics".

But Mr Obama's second-term agenda will lie largely in the hands of the Republican leader of the House of Representatives, Speaker John Boehner, with whom he bickered bitterly during his first term.

'Failures or excesses'

Mr Boehner told a gathering of Republicans: "The American people want solutions - and tonight, they've responded by renewing our [Republican] majority."

Mitch McConnell, the Republican leader in the Senate, said voters had not endorsed "the failures or excesses of the president's first term".

"They have simply given him more time to finish the job they asked him to do together with a Congress that restored balance to Washington after two years of one-party control," McConnell added.

Mr Obama faces his first challenge when Congress returns next week to deal with unfinished business, including the so-called fiscal cliff, a package of automatic tax rises and cuts to military and domestic spending.

Economists warn that the measure - set to be triggered in January unless lawmakers can find agreement - could plunge the nation back into a recession.

Mr Obama's victory came despite lingering high unemployment - 7.9% on election day - and tepid economic growth.

Turnout lower

But voters seem to have given him credit for his 2009 rescue of the US car industry and for the commando mission that killed Osama Bin Laden in Pakistan last year.

Mr Obama's re-election also safeguards his healthcare reform law, which Mr Romney had pledged to repeal.

In other key ballots:

• Referendums in Maine, Maryland and Washington state approved same-sex marriage, while a measure in Minnesota to block gay unions failed
• Colorado and Washington state voted to legalise recreational use of marijuana
• California voters rejected a proposal to abolish the death penalty
• In a referendum, Puerto Ricans voted in favour of becoming the 51st US state, if Congress approves the move.

Also on Tuesday's ballot were 11 state governorships, a third of the seats in the 100-member US Senate and all 435 seats in the House of Representatives.

Mr Obama and Mr Romney, as well as their respective allies, raised more than $2bn (£1.25bn) - largely on adverts in swing states.

Preliminary figures suggest fewer people voted this year than four years ago.

With most ballots tallied, more than 117 million people participated, compared to record-breaking figures of 131 million four years ago.

Turn-out was down sharply in some states, including Texas, as well as states on the US East Coast that were hit hard by super-storm Sandy last week.

International leaders offered their congratulations to the president, including Israeli Prime Minister Benjamin Netanyahu, who vowed to work with Mr Obama "to ensure the interests that are vital for the security of Israel's citizens".

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6 November 2012 Last updated at 22:01 ET

US election: Results declared from some states

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Millions of Americans have been voting for the next US president

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The polls are closing in the US presidential election, with results streaming in from across the country.

President Barack Obama has won swing states Michigan and Pennsylvania, as well as many others he won in 2008.

Republican Mitt Romney has carried several solid Republican states, also taking Indiana from Mr Obama.

Tens of millions of voters cast ballots on Tuesday. The winner could be declared within hours, especially as other swing states report results.

Pre-election polling suggested a neck-and-neck race but gave the president a slender lead in some swing states.

Polling stations began closing in eastern states at 18:00 EST (23:00 GMT), with the crucial states of Virginia and Ohio closing at 19:00 EST and 19:30 EST respectively.

Continue reading the main story

172

Barack Obama

98 electoral votes needed for Democrat win

163

Mitt Romney

107 electoral votes needed for Republican win

• Connecticut 7
• District of Colombria 3
• Delaware 3
• Illinois 20
• Massachusetts 11
• Maryland 10
• Maine 3
• Michigan 16
• Minnesota 10
• Nebraska 0
• New Hampshire 4
• New Jersey 14
• New Mexico 5
• New York 29
• Pennsylvania 20
• Rhode Island 4
• Vermont 3
• Wisconsin 10

• Alabama 9
• Arkansas 6
• Georgia 16
• Indiana 11
• Kansas 6
• Kentucky 8
• Louisiana 8
• Maine 0
• Mississippi 6
• Montana 3
• North Dakota 3
• Nebraska 5
• Oklahoma 7
• South Carolina 9
• South Dakota 3
• Tennessee 11
• Texas 38
• Utah 6
• West Virginia 5
• Wyoming 3

270 to win

Results in full

In those states and elsewhere, election workers at polling stations with long queues allowed voting to continue past the official closing.

In one of the first swing states to fall, Mr Obama won Michigan, repeating his 2008 victory there.

Mr Romney's father George was governor of Michigan in the 1960s and Mitt Romney was born and raised there.

But the president's 2009 rescue of the car industry helped seal the deal with the state's voters, analysts say.

Mr Obama also took Pennsylvania, continuing a Democratic streak dating back to 1992. He also held New Hampshire and Minnesota, states he won in 2008 but which the Republicans hoped to take from him.

Elsewhere, Mr Romney won Alabama, Arkansas, Georgia, Indiana, Kansas, Kentucky, Louisiana, Mississippi, Montana, Nebraska, North Dakota, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, West Virginia and Wyoming.

Mr Obama has taken Connecticut, Illinois, Maine, Maryland, Massachusetts, New Jersey, New Mexico, New York, Pennsylvania, Rhode Island, Vermont, and Washington DC.

Of the states called so far, Indiana switched hands from 2008, when Mr Obama narrowly won it. Mr Obama also failed to hold a single Nebraska electoral vote he won in 2008.

Obama greeted supporters outside a campaign office in Chicago on Tuesday

After a hard-fought race that began nearly two years ago and cost more than $2bn (£1.3bn), national polls by Washington Post/ABC News and the Pew Research Center both give Mr Obama a three-point edge over his rival.

In areas of New Jersey and New York that were damaged by storm Sandy a week ago, turnout was described as heavy. One high school being used as a shelter for displaced families doubled up as a voting centre.

Across the US, voting took place against a variety of backdrops - from a launderette and an internet cafe in Chicago to a lifeguard station in Los Angeles and car dealership in Columbus, Ohio.

Obama 'very good'

Mr Obama was the first of the two rivals to cast their ballot by voting last month in his adopted home city of Chicago, and becoming the first sitting president to vote before election day.

Mr Romney and his wife Ann voted in the Boston suburb of Belmont, Massachusetts, shortly before 09:00 local time on Tuesday. He told reporters he felt "very good".

The election is decided by the electoral college.

Each state is given a number of electoral votes in rough proportion to its population. The candidate who wins 270 electoral votes - by prevailing in the mostly winner-take-all state contests - becomes president.

Also on Tuesday's ballot are 11 state governorships, a third of the seats in the 100-member US Senate and all 435 seats in the House of Representatives.

Republicans are expected to keep control of the House, while Democrats are tipped to do the same in the Senate.

Legal battles feared

With voter turnout seen as vital for both candidates, campaigning continued on Tuesday, but at a slower pace.

Both men gave radio interviews, and Mr Romney hit the campaign trail again, with visits to Ohio and then Pittsburgh, Pennsylvania.

Romney visited a campaign call center in Green Tree, Philadelphia

Analysts tried to determine whether Mr Romney's last-minute campaigning showed strength or desperation, while the candidate reportedly told aides he wanted to be active on election day instead of just sitting around waiting for results.

The Republican was due to return to Boston later for an election night rally.

Mr Obama, who will hold an election night rally at a convention centre in Chicago, visited a campaign office in the city to talk to volunteers. He praised his Republican rival's "spirited campaign".

With observers anticipating a close race, both sides have readied teams of lawyers for possible legal fights, especially in the critical battleground state of Ohio.

Some analysts fear the election will not be decided on Tuesday night if the state's vote becomes mired in legal battles.

The BBC is providing full online live results of the US presidential election. More details here .

US Election Tweets

What are tweets?

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  There's a real party atmosphere here now. Inspirational videos, campaign surrogates cheerfully doing the rounds. #election2012 @BBCNewsUS @davieseliz 1 min ago
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  Obama now at 172, Romney at 163 - need 270 to win. The 'big' swing states of Florida (29 votes) Ohio (18 votes) still unknown. @JoanSoley 1 min ago
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  #Election2012 Romney's path to victory narrowing - needs Florida's 29 votes @LauraTrevelyan 4 mins ago

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5 November 2012 Last updated at 10:56 ET

Wales child abuse: PM orders sex abuse inquiry probe

Carwyn Jones urged abuse victims who felt their cases were not investigated properly to contact the police

The prime minister is appointing a "senior independent figure" to look into the way allegations of sexual abuse at north Wales children's homes in the 1970s and '80s were dealt with.

Victim Steve Messham has said that the Waterhouse inquiry of 2000 only covered a fraction of the alleged assaults.

"Child abuse is an absolutely hateful and abhorrent crime," Mr Cameron said.

He also said Mr Messham would meet with the Welsh secretary, David Jones, on Tuesday.

Speaking in Abu Dhabi, the prime minister added: "These allegations are truly dreadful and they mustn't be left hanging in the air, so I'm taking action today.

"I'm going to be asking a senior independent figure to lead an urgent investigation into whether the original inquiry was properly constituted and properly did its job and to report urgently to the government."

Mr Cameron also urged anyone who knows anything about the allegations of abuse to contact police.

Transparency call

A three-year inquiry into the abuse centred around the Bryn Estyn children's home in north Wales was published in 2000 by Sir Ronald Waterhouse.

Among the other claims made by Mr Messham, one of hundreds who claim they were sexually abused during that period, is that he was abused by a leading Thatcher-era Conservative politician.

Wales' Children's Commissioner Keith Towler said Mr Messham's claims had to be taken seriously and the police and other authorities should be given the opportunity to investigate.

However, Welsh First Minister Carwyn Jones said there needed to be more than one complainant to merit another abuse inquiry.

He said anyone with allegations should report them to the police or the children's commissioner.

Mr Towler and Mr Jones will meet on Tuesday to discuss the case.

Report pulped

North Wales Police said it was also seeking to establish whether there were any allegations that required new or further investigation.

The abuse centred around the Bryn Estyn children's home in north Wales

In the early 1990s, allegations of the abuse in almost 40 children's homes in Wales started to surface and in March 1994 Clwyd County Council commissioned an independent inquiry into claims of widespread abuse across north Wales.

But the inquiry's report was never published and the copies were pulped to ensure the local authority was able to maintain its insurance cover.

In the wake of this, and amid growing public pressure, in 1996 the-then Secretary of State for Wales, William Hague, ordered an inquiry into allegations of hundreds of cases of child abuse in children's homes in former county council areas of Clwyd and Gwynedd between 1974 and 1990.

The tribunal, led by Sir Ronald, heard evidence from more than 650 people who had been in care from 1974 and took almost three years to publish its report. Sir Ronald died in 2011.

Counsel for the inquiry mentioned the existence of a "shadowy figure of high public standing", but said that there was no substantial evidence to support the allegations.

The Waterhouse Inquiry identified 28 alleged perpetrators but they were never identified in public.

Anyone with information into these allegations - or who needs support on the issues raised in this article - can call the NSPCC on 0808 800 5000 or email help@nspcc.org.uk, or call their local police station by dialling 101.

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2 November 2012 Last updated at 01:59 ET

Storm Sandy: US death toll close to 100

Many residents on Long Island have had their homes destroyed

Continue reading the main story

Storm Sandy

• Sandy: Map overview
• Map and satellite images
• New York mapped
• Lab rodents drowned in NY floods

More than 90 deaths in the US have now been blamed on Sandy, the huge storm that has left residents on the east coast struggling to recover.

Worst hit were New York City and New Jersey, with fuel shortages the latest in a series of post-storm challenges.

Campaigning for Tuesday's presidential election - suspended earlier in the week - has fully resumed.

New York Mayor Michael Bloomberg endorsed President Barack Obama, citing his leadership on climate change.

He said Sandy could be evidence of climate change.

Of the two candidates, Mr Bloomberg said, "one sees climate change as an urgent problem that threatens our planet; one does not".

"I want our president to place scientific evidence and risk management above electoral politics."

Food hand-outs

Sandy arrived on the US Atlantic coast on Monday night, bringing hurricane-strength winds, flooding and blackouts.

About 4.5 million customers in 12 states are still without power.

The storm could cost the US $50bn (£31bn), according to forecasting firm Eqecat, which has doubled its previous estimate.

In New York, where Sandy brought a record 14ft (4.2m) tidal surge, the National Guard is to deliver a million meals and bottled water to residents affected by the storm.

In the south-western New York City borough of Staten Island, at least 15 bodies have been recovered.

The storm, one of the biggest to hit the US in decades, swamped the low-lying district with tidal surges, lifting whole houses off their foundations.

Limited subway services returned on Thursday, though four of the seven train tunnels under the East river remained flooded.

Fares on commuter trains, subways and buses have been temporarily waived in a bid to entice commuters off the traffic-choked roads.

Many of the petrol stations in the city and the state of New Jersey remained closed. Fights broke out amid long queues on forecourts.

Amtrak plans to restart its East Coast service - the busiest train line in the US - on Friday.

In Hoboken, New Jersey, across the Hudson River from New York City, some 20,000 people were still trapped in their homes as floodwaters slowly receded.

Marcia Sikowitz: "I had three sons, now I have two"

Officials warned residents not to walk in water polluted with sewage and chemicals.

Some 1.7 million people remain without power in the state, where the National Guard is helping with evacuations and meal distributions.

The cyclone also caused havoc further inland.

The state of West Virginia has seen up to 5ft of snow in some areas, after Sandy collided with two winter weather fronts.

The number of dead in the US now exceeds the toll from the Caribbean, where 69 people were killed by Sandy.

Have you been affected by storm Sandy? Please send us your experiences using the form below.

Send your pictures and videos to yourpics@bbc.co.uk or text them to 61124 (UK) or +44 7624 800 100 (International). If you have a large file you can upload here.

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1 November 2012 Last updated at 15:46 ET

Freddie Starr arrested in Jimmy Savile abuse inquiry

Freddie Starr has previously offered to speak to the police, and has denied claims he groped a girl of 14 while in a room with Savile

Entertainer Freddie Starr has been arrested in the police inquiry into sex abuse claims against Jimmy Savile.

Mr Starr was arrested in Warwickshire by Operation Yewtree officers on suspicion of sexual offences and has been taken into police custody locally.

He has denied claims he groped a girl of 14 while in a room with Savile.

Meanwhile, an independent review into BBC Newsnight's dropping of a programme about the allegations against Savile will report later this month.

Operation Yewtree is a Scotland Yard criminal inquiry into sexual abuse claims.

The Metropolitan Police said officers arrested a man in his 60s, from Warwickshire, at 17:45 GMT in connection with the investigation.

Police said the individual fell under the strand of the investigation termed "Savile and others".

On Sunday, ex-pop star Gary Glitter was arrested and bailed after being questioned as part of the inquiry.

Glitter, 68, whose real name is Paul Gadd, was arrested at home and questioned at a London police station before being released on bail until mid-December.

Editorial decision

The independent review by ex-Sky News boss Nick Pollard will seek to establish whether there were any "failings" in the decision to drop the Newsnight investigation.

The Pollard Review, will also look at the BBC's handling of material which might have been of interest to the police, which will report to the BBC Executive Board.

There has been speculation that the programme was dropped because the BBC was already planning to run more favourable programmes in tribute to the former BBC presenter, who died in October 2011. The BBC has repeatedly denied such claims.

BBC director general George Entwistle said he was launching the inquiry to shake off the "clouds of suspicion".

Outlining terms of reference on Thursday, a statement on behalf of the review said: "It will establish whether there were any failings in the BBC management of the Newsnight investigation relating to allegations of sexual abuse of children by Jimmy Savile, including the broadcast of tribute programmes on the BBC.

"This will encompass the BBC's handling of material derived from the investigation that could have been of interest to the police or relevant authorities and whether any inappropriate managerial pressure or consideration may have influenced the decision of the editor of Newsnight."

It said the review will examine the editorial decision on the Newsnight investigation and a blog dated 2 October posted by the programme's editor which was changed by the BBC on 22 October 2012.

In the original blog, Newsnight editor Peter Rippon explained the editorial reasons behind his decision to axe the report. He said it was "totally untrue" he had been ordered to do it by bosses as part of a BBC cover-up.

In a correction to the blog, the BBC called it "inaccurate or incomplete in some respects".

Mr Rippon has stepped aside from his role for the duration of the inquiry.

The review's statement said interviews with relevant people will be conducted with support of a barrister, and interviewees are allowed a lawyer.

The review has asked BBC staff for documents and was electronically searching archived documents from relevant people.

Participation in the review, which has already begun, is voluntary.

Police believe Savile could have abused as many as 300 people over a 40-year-period.

Source : bbc[dot]co[dot]uk Read More

1 November 2012 Last updated at 15:46 ET

Freddie Starr arrested in Jimmy Savile abuse inquiry

Freddie Starr has previously offered to speak to the police, and has denied claims he groped a girl of 14 while in a room with Savile

Entertainer Freddie Starr has been arrested in the police inquiry into sex abuse claims against Jimmy Savile.

Mr Starr was arrested in Warwickshire by Operation Yewtree officers on suspicion of sexual offences and has been taken into police custody locally.

He has denied claims he groped a girl of 14 while in a room with Savile.

Meanwhile, an independent review into BBC Newsnight's dropping of a programme about the allegations against Savile will report later this month.

Operation Yewtree is a Scotland Yard criminal inquiry into sexual abuse claims.

The Metropolitan Police said officers arrested a man in his 60s, from Warwickshire, at 17:45 GMT in connection with the investigation.

Police said the individual fell under the strand of the investigation termed "Savile and others".

On Sunday, ex-pop star Gary Glitter was arrested and bailed after being questioned as part of the inquiry.

Glitter, 68, whose real name is Paul Gadd, was arrested at home and questioned at a London police station before being released on bail until mid-December.

Editorial decision

The independent review by ex-Sky News boss Nick Pollard will seek to establish whether there were any "failings" in the decision to drop the Newsnight investigation.

The Pollard Review, will also look at the BBC's handling of material which might have been of interest to the police, which will report to the BBC Executive Board.

There has been speculation that the programme was dropped because the BBC was already planning to run more favourable programmes in tribute to the former BBC presenter, who died in October 2011. The BBC has repeatedly denied such claims.

BBC director general George Entwistle said he was launching the inquiry to shake off the "clouds of suspicion".

Outlining terms of reference on Thursday, a statement on behalf of the review said: "It will establish whether there were any failings in the BBC management of the Newsnight investigation relating to allegations of sexual abuse of children by Jimmy Savile, including the broadcast of tribute programmes on the BBC.

"This will encompass the BBC's handling of material derived from the investigation that could have been of interest to the police or relevant authorities and whether any inappropriate managerial pressure or consideration may have influenced the decision of the editor of Newsnight."

It said the review will examine the editorial decision on the Newsnight investigation and a blog dated 2 October posted by the programme's editor which was changed by the BBC on 22 October 2012.

In the original blog, Newsnight editor Peter Rippon explained the editorial reasons behind his decision to axe the report. He said it was "totally untrue" he had been ordered to do it by bosses as part of a BBC cover-up.

In a correction to the blog, the BBC called it "inaccurate or incomplete in some respects".

Mr Rippon has stepped aside from his role for the duration of the inquiry.

The review's statement said interviews with relevant people will be conducted with support of a barrister, and interviewees are allowed a lawyer.

The review has asked BBC staff for documents and was electronically searching archived documents from relevant people.

Participation in the review, which has already begun, is voluntary.

Police believe Savile could have abused as many as 300 people over a 40-year-period.

Source : bbc[dot]co[dot]uk Read More

29 October 2012 Last updated at 08:22 ET

'No excuse' for care service failures, says health minister

The abuse at Winterbourne View was uncovered by secret filming by the BBC

Health minister Norman Lamb has said there is "no excuse" for the further mistreatment of patients moved from failed care home Winterbourne View.

A BBC Panorama report on Monday is due to reveal new safety alerts have been issued for some former patients.

The Lib Dem minister said it would highlight the "unacceptable failures" still crippling care commissioning.

The report comes after six workers were jailed on Friday for abusing patients at the now closed private hospital.

Another 11 former support workers from Winterbourne View were also convicted of abusing vulnerable people with learning disabilities.

Panorama is set to report that at least 19 of the 51 former patients there have been issued with safeguarding alerts since they were moved to other care homes - according to NHS figures.

'The right support'

In a statement to the House of Commons, Mr Lamb said: "The BBC Panorama programme to be broadcast tonight continues to highlight inappropriate and poor quality care. There is no excuse for this."

He said a Department of Health review had found "clear evidence that there are far too many people in specialist inpatient learning disability services - including assessment and treatment units - and many are staying there for too long".

"This must not carry on and must come to an end."

Mr Lamb insisted vulnerable people would be able to avoid such facilities if "given the right support in their homes or in community settings".

He underlined the importance of people with learning disabilities or behaviour problems being able to "benefit from local personalised services" and to be "supported to live in the community wherever possible".

"Only in very limited cases should inpatient services be used," he added.

Mr Lamb went on: "The key priorities are to address unacceptable failures of commissioning and to improve the capacity and capability of commissioning across health and care for people with behaviour which challenges with the aim of driving up the quality of care they receive, improving their lives and significantly reducing the number of people using inpatient services.

"This is best done through effective joint commissioning across health and social care and proper local planning."

The health minister announced that the final report of the Winterbourne View review would be published in the near future.

Alongside the report, he said, the Department of Health would set out the responsibilities of government, commissioners, providers, professional bodies and regulators.

Panorama: The Hospital that Stopped Caring, BBC One, Monday 29 October at 20:30 GMT and then available in the UK on the BBC iPlayer.

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