IDS: Tax Credit System 'Haemorrhaging Money'

More than £10bn of public money has been lost in fraud and error under the tax credit system put in place by Labour, the Work and Pensions Secretary has claimed.

Attacking the welfare model developed by the last government, Iain Duncan Smith said tax credits were "not fit for purpose" but had been extended ahead of the 2005 and 2010 general elections in a pitch for votes.

The system was "wide open to abuse" and "haemorrhaging money", he wrote in an article for The Daily Telegraph.

"In the years between 2003 and 2010, Labour spent a staggering £171bn on tax credits, contributing to a 60% rise in the welfare bill.

"Far too much of that money was wasted, with fraud and error under Labour costing over £10bn."

Mr Duncan Smith said HM Revenue and Customs conducts checks on far fewer tax credit claims than suspected benefit fraudsters.

That is despite about one in 12 tax credit claims being incorrect or fraudulent, compared with fewer than one in 25 benefit claims.

Payments are based on estimates of income for the coming year, and after 2008 HMRC did not attempt to reclaim overpayments of less than £25,000.

That is set to be reduced to £5,000 under the coalition, alongside moves to require proof of payments from those claiming for childcare or that children aged between 16 and 19 are in full-time education.

The Government hopes to save more than £300m in the next three years by reducing fraud and error, and also wants to recover more than £400m in unpaid debts.

Mr Duncan Smith is overseeing a fundamental overhaul of welfare which will see tax credits rolled into a new Universal Credit which is meant to simplify the system and better incentivise work.

"Even for those in genuine need of support, tax credits were not fit for purpose," he said.

"The system was haemorrhaging money while at the same time trapping people in a system where those trying hard to increase the amount of hours they worked weren't necessarily better off."

Mr Duncan Smith said tax credit payments had risen by 58% in 2005 and by more than 20% in the two years before the 2010 election.

"At the most basic level, Labour used spending on tax credits as an attempt to gain short-term popularity. They knew what they were doing - it was a calculated attempt to win votes," he claimed.

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Plastic Surgery Campaigns Target 17-Year-Olds

By Jason Farrell, Sky News Correspondent

A study commissioned by the Government to look into the cosmetic surgery industry has found that 17-year-olds are being targeted by aggressive marketing campaigns.

The interim report has found people want to see tighter restrictions around the industry to protect patients from certain sales techniques.

The review was commissioned by the Department of Health following the PiP breast implant scandal.

Science journalist Vivien Parry, who is on the review panel, told Sky News: "I have been really shocked by what I've seen.

"Extraordinary things. For instance, 17-year-olds being plagued by texts saying, 'In less than a year's time you'll be able to have cosmetic surgery.'"

She added: "I just think that's awful. What it does to the psyche of young girls is one thing. But it sets up a cosmetic procedure, which has both short-term and long-term risks, as if it were something entirely trivial."

The report found patients and industry groups want tighter restrictions on advertising including banning two-for-one or time-limited deals, and cosmetic surgery as competition prizes.

The final report is due to be published in March

They want to introduce a two-stage written consent process so that people have time to reflect.

Another demand is for patients to receive better information before making their decision. For example, providing them with photographs showing expected bruising and scarring.

Ms Parry said: "Cosmetic procedures are being sold like double glazing. If you make a decision within a week, you'll get money off.

"You can buy one procedure, get another procedure for free, bring along a friend, or have cosmetic surgery as a raffle prize.

"It concentrates on the money side of it so people forget about the health side."

PiP victim Victoria Newton, who had to have her breast implants replaced after they both ruptured, welcomed the report.

She told Sky News that when she first considered surgery, aged just 19, she was pressured and misinformed ahead of her decision.

Victoria Newton was a victim of implants by the now-defunct PiP company

Ms Newton said: "There was nothing personal about my consultation. It wasn't like I was going in for an operation. It was like I was buying a car or booking a holiday.

"There was a time-limited offer and I was really encouraged to go for that. At the time, I thought I was getting a good deal. They offered £500 off the price of the surgery, if I signed up that day."

After sparking a global health scare, the implants made by now-defunct French company Poly Implant Prothese were pulled from the market in several countries due to fears they could rupture and leak silicone into the body.

The interim report into cosmetic surgery practices suggests anything that pressures patients like Ms Newton to make a snap decision about surgery should be banned.

It states that consultations should always be conducted by the surgeon who will carry out the procedure, rather than sales staff.

But the president of the British Association of Aesthetic Plastic Surgeons, Rajiv Grover, says the recommendations do not go far enough.

"We're very pleased the report has focused on sales tactics used in cosmetic surgery. It's something we've been campaigning for, for the last decade," he told Sky News.

"However, we'd like to go further and suggest an outright ban on advertising, just as you would have for prescription-only medicines and other types of surgery."

He added: "This is a medical procedure and should be subject to the same regulations as any other medical procedure."

The suggestions highlighted in the interim report will feed into the work led by the NHS Medical Director Sir Bruce Keogh, who is due to publish his full recommendations in March.

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Ronnie Wood's Wedding Photo With New Wife

Rolling Stone Ronnie Wood has released an official wedding photo with his new wife and his two famous best men.

The 65-year-old married Sally Humphreys, 34, at the Dorchester Hotel in London earlier this month.

It is the third time the guitarist has been married but he has told Hello! magazine that Sally is the perfect partner for him.

At the ceremony on December 21, he told guests: "I wish I'd met Sal earlier. I can't think of another girl more suited to me."

He also tells the magazine it was a wonderful day, saying: "She looked beautiful walking through that doorway. I feel very blessed to have a new family.

"My dad and brothers are no longer with us so it's really nice to be welcomed by a new gang. Her relatives are lovely."

Pictures of the wedding, taken for Hello! magazine, show Wood and his new wife alongside rock star best men Rod Stewart and Sir Paul McCartney.

The photograph, which also features her seven-year-old niece Heather, comes from the official wedding album, with the couple donating their entire fee to charities.

Wood said his new wife accompanied him to Sir Paul's wedding to Nancy Shevell last year.

"Paul was saying at the time 'Wow, this is wonderful, you two make a great couple,'" he said.

The 34-year-old bride married in the same wedding dress as her mother and wore a red heart-shaped pendant designed by Wood.

Wood's children Jesse, Tyrone and Leah took pride of place in the front row.

"They are happy to see their dad happy," he said. The Stones star said he chose his two best men because "they have always been very supportive of me and Sally".

Wood also reveals how he was so relaxed before the ceremony that he played a game of snooker with friends.

He previously married Krissy Findlay in 1971, before divorcing seven years later.

Wood split from his second wife Jo in 2008, after 23 years together, when he had an affair with a 21-year-old cocktail waitress.

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Curtain To Rise On UK's First City Of Culture

By David Blevins, Ireland Correspondent

To nationalists on one side of the River Foyle, it is Derry. To unionists on the other, it is Londonderry. Now, they are uniting around one name: the UK City of Culture.

Northern Ireland's second largest city beat off stiff competition for the inaugural title - Birmingham, Norwich and Sheffield were shortlisted.

Those behind the successful bid had a rich heritage to draw on.

Martin Bradley, City of Culture chairman, said: "When you look at the prominent people who left the city - Nobel Peace Prize winners, Eurovision Song Contest winners, a Poet Laureate, Field Day, Peter Cunnah, The Undertones - the list is absolutely endless."

Changing the image will not be easy. The place is synonymous with 'The Troubles'. In 1972, British soldiers shot 13 people dead during a civil rights protest on the streets here.

Memorial to those who died on Bloody Sunday

John Kelly, whose brother Michael died on Bloody Sunday, said: "We're in a much better place after the public inquiry. It helped heal our people and heal the city.

"The Saville Report and (Prime Minister) David Cameron's apology helped move things forward."

For others, the war will never be over. Hard-line republicans are still making their presence felt. Terrorist attacks and paramilitary-style "punishment shootings" remain part of the culture in some areas.

Eamon McCann, Derry Journal columnist, said: "The ideology being promoted by what are called 'dissident republicans' is part of what we are in Derry. Are we not to admit that there are these tensions, that there's still this incipient murder?"

For the most part however, things have changed. Protestants and Catholics, previously separated by the river flowing through the centre of the city, have been connected by a peace bridge.

The British army barracks is now a concert venue and the year-long programme is diverse - from Britain's Royal Ballet to the All-Ireland Fleadh, the world's largest festival of Irish culture.

Derry, Londonderry or #Legenderry - the promotional hashtag on Twitter - it certainly has no shortage of names. Most residents would prefer that their city had only one reputation: culture, not conflict.

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Northern Ireland Bomb: Family's Lucky Escape

A policeman in Northern Ireland targeted by a car bomb was taking his family for Sunday lunch when he found the device, it has emerged.

Assistant Chief Constable George Hamilton revealed that the officer was going out with his wife and two young children when he checked his car as a matter of routine.

He found the bomb - believed to have been planted by dissident republicans - underneath his vehicle outside his home in Belfast.

The property is close to the Police Service of Northern Ireland (PSNI) headquarters at Knock and the Northern Ireland Assembly at Stormont.

"If that officer had not checked his car, we would have been looking at a murder or multiple murders," Mr Hamilton told a news conference as he appealed for witnesses to come forward.

Army robot used to examine the device

"We believe the consequences of this would have been absolutely devastating for the officer, his family, for the police family and for the communities across Northern Ireland.

"For some reason, those people who are anti-peace, who are still hanging on to the past, who aren't prepared to move forward, have tried to murder this officer and his family.

"We consider that completely repugnant. It's inhumane. By any standards in any society, this is wrong and we utterly condemn this attack."

He warned that there was a severe threat level across Northern Ireland and appealed to officers to be vigilant and check under their cars.

It is hoped that the bomb will be useful as evidence because it was discovered and did not engage.

Justice minister David Ford said: "It is ironic that this latest attack was carried out so close to Stormont, where those who are democratically elected seek to move matters forward through debate.

The bomb was planted on Upper Newtownards Road

"The people responsible for this and other recent attacks have no mandate and speak for no one. They need to recognise the futility of their campaign and respect the wishes of the vast majority of our community who want an end to all violent acts."

Dissidents have repeatedly targeted security force members in recent years.

Over the last five years there have been 115 arrests and 35 charges and 64 officers have had to leave their homes, a police spokesman said.

In November, long-serving prison officer David Black, 52, was shot dead in a motorway ambush in Co Armagh as he drove to work.

A group styling itself the "new IRA" claimed that attack. The faction was formed in the summer when a number of splinter groups joined forces.

In April 2011 newly qualified police officer Ronan Kerr, 25, died when a dissident booby trap car bomb exploded under his vehicle at his home in Omagh.

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Paralympic Heroes Hit Out At Honours List

Leading Paralympians have criticised the New Year honours system, claiming it is easier for able-bodied athletes to get knighthoods.

Cyclist Sarah Storey was the only Paralympic athlete among the knights and dames, despite many racking up more gold medals than Bradley Wiggins or Ben Ainslie, the Olympians given top awards in this year's list.

Dressage rider Lee Pearson, who has won 13 medals including 10 golds at four Games, was one of two Paralympians to get OBEs in the list, which was published on Saturday.

He told the Independent: "Obviously, 10 gold, one silver and one bronze just isn't enough.

"I'm disappointed because I do feel I've given a lot to Paralympic sport and equestrianism. I think 10 gold medals is quite an achievement."

David Weir was given a CBE after winning four gold medals at London 2012

Wheelchair racer and six-time gold medal winner David Weir suggested Paralympians have to work harder to earn recognition than their non-disabled counterparts.

Weir, who was the only disabled athlete among five CBEs in the list, told the Telegraph: "Kelly Holmes was made a Dame when she won two gold medals, but it seems we have to get into double figures to get it.

"Sarah Storey should have been awarded this years ago, and I just feel that sometimes we are left out perhaps because we are not in the public eye.

"It is a bit strange, but I am just honoured to get anything from the Queen for doing a sport I love."

The list was drawn up by the Sports Honours Committee, which is chaired by Lord Coe and includes the former Paralympic athlete baroness Tanni Grey-Thompson.

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Cameron: Britain 'On Right Track' For 2013

By Jon Craig, Chief Political Correspondent

David Cameron has used his New Year's message to declare that Britain is "heading in the right direction" on all the big issues and can look forward to 2013 with "realism and optimism".

In a video address, the Prime Minister acknowledged 2012 was "tough", with many families finding it difficult to make ends meet - and admitted he had "no quick fixes" to the UK's economic problems.

But he cited evidence of "real progress" on cutting the state deficit, reforming welfare and improving school standards, which he said was preparing Britain to succeed in the "global race" with emerging economic giants like China and India for the jobs and opportunities of the future.

Mr Cameron said that his administration was "a Government in a hurry" which would not give in to pressure to slow the pace of deficit reduction or rein in reforms to welfare and education.

"This is my message to the country at the start of 2013," said the Prime Minister. "We can look to the future with realism and optimism.

"Realism, because you can't cure problems that were decades in the making overnight. There are no quick fixes and I wouldn't claim otherwise.

"But we can be optimistic too because we are making tangible progress. We are doing what's right for our country and what's best for our children's future."

Insisting that "we are on the right track", Mr Cameron said: "On all the big issues that matter to Britain, we are heading in the right direction and I have the evidence to prove it."

The deficit is forecast to be a quarter smaller at the New Year than it was when the coalition Government came to office. There are almost half a million more people in work, and more than 1,000 new academy schools have opened, said Mr Cameron.

And he hailed moves to take millions of low-paid workers out of income tax, freeze council tax bills and deliver the largest-ever increase in the state pension.

"This is, quite simply, a Government in a hurry," said Mr Cameron. "And there's a reason for that.

"Britain is in a global race to succeed today. It is a race with countries like China, India and Indonesia; a race for the jobs and opportunities of the future.

"So, when people say we can slow down on cutting our debts, we are saying no. We can't win in this world with a great millstone of debt round our necks.

"When people say we've got to stop our welfare reforms because somehow it is cruel to expect people to work, we are saying no. Getting people into good jobs is absolutely vital, not just for them, but for all of us.

"And when there is a fight on our hands to change our schools, we are ready and willing to have it, because having a world-class education is the only way our children are going to get on in this world."

He added: "This is what this Government is about: making sure Britain succeeds in this global race and, above all, helping our people succeed - the people who work hard and aspire to a better life for their families."

The message steered clear of the debates over Britain's future in the European Union - due to feature in a long-awaited speech by the Prime Minister in the coming weeks - and gay marriage, which have driven divisions through the Conservative Party over the past year.

Instead Mr Cameron looked back on 2012 as "an extraordinary year for our country", characterised by the Diamond Jubilee celebrations and the successful Olympics and Paralympics.

In response, Labour vice chair Michael Dugher said: "It's a case of more of the same from David Cameron.

"In his New Year message, Cameron talks of people who work hard in this country but he's the one hitting hard-working families on lower and middle incomes whilst cutting taxes for millionaires.

"David Cameron stands for the old divide and rule Tory approach of the past - he can't be the One Nation Prime Minister Britain needs.

"Cameron promised change but nothing is changing for the better. Britain's economy is failing under his policies over the last year, with nearly one million young people out of work.

"Prices are still going up faster than wages and borrowing is going up not down, over 7% higher this year than last year.

"This Prime Minister is out of touch, he stands up for the wrong people and he's failing to deliver for working people."

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New Year's Reprieve: Rain Clears For 2013

The heavy rain which has washed out December will stop in time for New Year's Eve celebrations - bringing a brighter start to 2013.

Showers will soak much of Britain overnight and during the day tomorrow - but skies will clear over many parts in time for the evening of the 31st.

Forecasters predict that London - where thousands will turn out for fireworks - should have clear skies, though temperatures will be quite low.

The heavy rain should also subside in time for the celebrations in Edinburgh, but there will still be a risk of some light showers.

2012 is set to become the wettest year on record in the UK

Sky weather presenter Nazaneen Ghaffar said the start of 2013 should be brighter, and less wet, than the worst of December.

The south of the country should be mostly dry during the first few days of the new year, with some outbreaks of rain further north.

Meanwhile, flood warnings remain in place across Britain with another band of miserable weather swamping the country today.

Strong winds and showers followed by more heavy downpours are bringing the last weekend of the year to a wretched end.

Days of almost relentless downpours blighted parts of the country for much of December, punctuated only by the briefest of dry spells.

Hundreds of alerts have been issued by the Environment Agency this month, as several days' worth of rain has fallen in just a few hours at its worst.

It has contributed to a year of bad weather with records, dated up to Boxing Day, showing England on the brink of its wettest year since records began in 1910.

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Attacks On Women In Wapping 'Could Be Linked'

Violent attacks on two women in east London could be linked, police have said.

The women were both stabbed in separate attacks 15 days apart as they walked through the same park in Wapping.

The first attack occurred at around 6.25pm on Tuesday, December 4, as the 38-year-old victim walked through the park, known locally as Wapping Woods, off Garnet Street.

The attacker approached her holding a knife and stabbed her before taking a digital camera from her bag and running off towards The Highway.

Then on Saturday December 29, at around 12.25pm, a 26-year-old woman was approached by a man holding a knife and forced into bushes where she was stabbed.

It is not believed that anything was taken before he ran away towards The Highway.

The victim was taken to an east London hospital in a serious condition, though her injuries are not thought to be life-threatening.

Following the first incident the description of the suspect was given as an Asian male in his late teens or early twenties, between 5ft 2ins and 6ft in height, chubby build with short black straight hair with a brushed forward fringe.

He was wearing a dark, unzipped hoodie with light tassels, and jeans.

The second victim described her attacker as an Asian man, aged around 30 years, 5ft 6 to 7ins in height, with gelled messy hair and light stubble, and wearing denim jeans and a dark jacket.

Given the similarities between the circumstances and victim descriptions in both attacks, they are being treated as potentially linked.

Inspector Joseph McDonald of Tower Hamlets police said: "There are clear similarities between these incidents and officers are doing everything possible to find the man or men responsible.

"The violence used in these attacks is hugely concerning and could easily have led to a fatality.

"I would urge anyone with information that could assist officers to make contact with the police as soon as possible so that we can apprehend whoever is responsible."

Anyone with information should call Tower Hamlets Police on 101 or, to remain anonymous, Crimestoppers on 0800 555 111.

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Organist Death: Grieving Widow Speaks Of Evil

The widow of Alan Greaves, who died after being attacked on his way to a Christmas Eve midnight mass, said she has not stopped crying over her husband's death and the "evil that has been done".

Mr Greaves, 68, was discovered badly beaten near his church in High Green, Sheffield, on Monday.

The father-of-four died in hospital on Thursday after suffering serious head injuries in the attack.

Two Sheffield men - one in his 20s and the other in his 40s - are in custody after being arrested on Saturday on suspicion of murder.

At the service at St Saviour's Mortomley and High Green Church, Mrs Greaves, a church community worker, thanked the couple's congregation for their support.

"I've never stopped crying for Alan, and I know that you've never stopped crying with me," she said.

"I've grieved over the evil that's been done, and I know you too have grieved over the evil that has been done.

"I have prayed for you, and I know that you have prayed for me.

Mr Greaves has been described as a 'gentle soul'

"I want to thank you because I really have sensed your very deep love and affection for me.

"You were Alan's Christian family and he loved belonging to this church."

The Bishop of Sheffield, Dr Steven Croft, led the service at the church, where Mr Greaves was a lay preacher.

Dr Croft said Sheffield had lost a "shining light".

"There is a sense of shock and a sense of outrage, not just in this community but across the whole city of Sheffield," he said.

"Alan was the victim of a brutal attack as he was on his way to church on Christmas Eve, as he was walking to this church to bear witness to his deep Christian faith.

"There will be immense grief for those who knew Alan well, which includes many in this church and community."

He went on to speak of the love and support that has been offered to the family and also appreciation for the medical teams that tried to save Mr Greaves's life.

"And in the midst of all this, I am sure, many will be giving thanks for Alan himself, for all he showed us of God's grace and love," he said.

Police say the motive remains unclear

"There will be occasions in the future for many generous tributes to be given.

"Goodness is not as common as it should be and this community and this city have lost a shining light."

Detectives are still appealing for anyone with any information about the murder to come forward.

Police are treating his death as murder but say the motive for it is unclear.

Canon Bessant said Mr Greaves had been attacked 250 yards from the church and that his family had been at home.

"His wife wants justice but she doesn't want vengeance. She is not embittered but obviously she wants this person to be caught."

Mr Greaves had recently become a grandfather to twin boys adopted by his daughter in Mozambique.

He and his wife had recently set up a food bank and community project in the area where he was killed.

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First-Time Home Buyers 'Up 12% In Past Year'

The past 12 months saw 12% more first-time buyers take the plunge into the property market than in 2011, according to a report by the Halifax.

About 216,000 people got their feet onto the property ladder in 2012, the highest number since the credit crunch began.

But it is still almost half the 402,800 people who bought their first home in 2006.

The average age of a first-time buyer has increased to 30, from 29 a year ago, and the typical deposit required is now 20% - compared with the deposit of around 10% put down in 2007.

Halifax said the rise was due to more mortgages coming on the market.

The number available has increased by around a fifth since a multibillion-pound Government scheme was launched in August to kick-start lending to firms and households.

The Government also recently introduced the NewBuy scheme, which helps people to buy a new-build home with a fraction of the usual deposit.

Martin Ellis, housing economist at Halifax, said: "The number of first-time buyers has risen to a five-year high, boosted by the improvement in affordability resulting from the reductions in both house prices and mortgage rates in recent years.

"Conditions for potential first-time buyers, however, remain very difficult with problems raising the necessary deposit and concerns over the economic climate."

He also said that first-time buyers have become increasingly reliant on extra help to give them a push onto the ladder.

The Council of Mortgage Lenders (CML) recently estimated that 65% of this sector of the market had financial assistance in mid-2012, compared with 31% seven years earlier.

First-time buyers in London put down the largest average deposit, at £62,356, while those in the north put down the smallest, at £14,936.

The average deposit needed across the UK is £27,984.

The average house price paid by a first-time buyer increased slightly to £139,921 in 2012 - representing a 3% rise compared with 2011.

Related stories

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Hector Sants: Ex-FSA Chief Awarded Knighthood

The man tasked with regulating the City in the run-up to the near-collapse of the UK banking system has been knighted in the Queen's New Year Honours.

Former Financial Services Authority (FSA) chief executive Hector Sants has been recognised for services to financial regulation after overseeing sweeping reforms following the nationalisation of Northern Rock and the bailout of major banks.

The knighthood may be seen as a controversial decision, as it was Sir Hector who led the organisation accused by MPs of being "asleep at the wheel" in the run up to the collapse of Northern Rock.

While he was criticised for the FSA's failure to spot and prevent the credit crunch and subsequent banking meltdown, he has since won praise for cleaning up the regulator and for his role in forcing banks to beef up their balance sheets.

Sir Hector said the award was a "testament to the hard work of everyone at the FSA during the crisis, their willingness to learn lessons and to bring about the changes that were necessary".

The 56-year-old had planned to leave his role in February 2010, but was convinced by Chancellor George Osborne to stay on to see through the coalition's break-up of the FSA.

It was thought he would become a deputy governor of the Bank of England and head the Prudential Regulation Authority (PRA) - one of two new regulatory bodies that will replace the FSA as part of an overhaul in the wake of the financial crisis.

But Sir Hector unexpectedly resigned earlier this year and has courted more controversy, joining scandal-hit Barclays, where he will become the bank's first point of contact for regulators.

He is believed to be in line for a £3m pay package.

The FSA received a mauling from MPs in the wake of the banking crisis and collapse of Northern Rock.

Northern Rock had to be nationalised in 2008, with the Government also having to bail out Royal Bank of Scotland, Lloyds TSB and HBOS.

In the aftermath of the crisis, Sir Hector warned the City to "be frightened" as he pledged an era of more intrusive and direct regulation.

He also laid the blame at the door of the US and UK governments for their part in the crisis, saying authorities worldwide sought to "encourage a significant credit boom particularly for the benefit of consumers who wished to purchase housing".

Sir Hector joined the FSA wholesale markets arm from Credit Suisse in 2004. He became chief executive in 2007 - just two months before the run on Northern Rock.

It had been widely expected that Sir Hector would return to the private sector when he resigned from the FSA.

Barclays, which has had its reputation battered following this summer's rate-rigging revelations, has appointed Sir Hector to the newly-created role of head of compliance. He is due to start on January 21.

It is believed he will also play a central role in rewriting the bank's pay and bonus strategy.

Sir Hector is married with three children.

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New Year Honours: Kate Bush Heads Arts Field

Figures from the worlds of music, the sciences and the arts were among those to receive recognition in the New Year Honours.

Illustrator Quentin Blake, best-known for his work in Roald Dahl's children's books, has been awarded a knighthood.

Artist Tracey Emin, choreographer Arlene Phillips and singer-songwriter Kate Bush have all been given CBEs in the list.

Bush said she is "deeply honoured", while former Strictly Come Dancing judge Phillips said: "I am very pleasantly surprised but mostly absolutely thrilled and delighted to receive such a wonderful honour."

Actor Ewan McGregor gets an OBE in the New Year's Honours

Former Prime Minister Tony Blair's wife, Cherie, is given a CBE in recognition of her service to women's issues and to charity in the UK and overseas.

Actor Ewan McGregor - star of Trainspotting - and fashion designer Stella McCartney both get OBEs.

And Professor Peter Higgs, namesake of the Higgs boson or so-called "God particle" - which was finally proved to exist in July - has been awarded a Companion of Honour 48 years after his discovery.

Metropolitan Police Commissioner Bernard Hogan-Howe has been awarded a knighthood, while MI5 head Jonathan Evans is made a Knight Commander of the Order of the Bath.

Captain Raymond "Jerry" Roberts - one of the four founder members of Bletchley Park's Testery section tasked with breaking the German top-level code Tunny - has been recognised with an MBE.

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Bradley Wiggins Knighted In New Year Honours

By Ian Woods, Senior News Correspondent

Britain's gold rush during the London Olympic and Paralympic Games has led to 78 athletes and coaches being named in the New Year Honours List.

Among the top honours are knighthoods for cyclist Bradley Wiggins and yachtsman Ben Ainslie, while Paralympic cyclist Sarah Storey becomes a Dame.

Dave Brailsford and David Tanner, the Performance Directors who have ensured that Britain now leads the world in cycling and rowing are also rewarded with knighthoods.

Every British athlete who won a gold medal in the Olympics or Paralympics is included in the list unless they have already been honoured in the past.

Heptathlete and face of London 2012 Jessica Ennis is awarded a CBE

So Sir Chris Hoy, who was knighted after the Beijing Games, is omitted from the list despite adding two more gold medals to his career tally of six.

Somali-born middle-distance runner Mo Farah becomes a Commander of the Order of the British Empire for his stunning double gold medal performances in the 5,000m and 10,000m.

He joins four other competitors who become CBEs having previously collected the MBE (Member of the Order of the British Empire) - rower Katherine Grainger, cyclist Victoria Pendleton, heptathlete Jessica Ennis and wheelchair athlete David Weir.

David Weir was also given a CBE after winning four gold medals in London

Sir Bradley admitted to having mixed feelings about receiving a knighthood. Born in Kilburn, he is now almost as famous for his sideburns and Mod image as his cycling exploits.

This was the year he became the first Briton to win the Tour De France, and he also won the Olympic Time Trial title and the BBC Sports Personality of the Year award.

He told Sky News: "It's an incredible honour and it's an incredible thing to have. It's still not something that sits incredibly easily with me, I don't think it's something I'm going to use in daily life.

"(It's) an amazing thing to have in the drawer for my wife my kids and my family. It's topped the year off really."

Dame Sarah Storey first won Paralympic gold as a swimmer, and achieved even greater success when she switched to cycling.

A birth defect means she does not have a left hand, but she also competes against able-bodied cyclists and was pushing for a place in the Olympic squad.

Ben Ainslie was also knighted after winning four gold medals

"I really hope that everybody who's been connected to what I've done feels a part of what has happened," she told Sky News.

"To be honoured in this way - the top gong as you might say - you never even imagine or dream of it. It's just beyond your wildest dreams."

Her boss, Dave Brailsford, becomes Sir Dave after overseeing not just the Olympic triumphs, but the rise of Team Sky as a professional road racing team. Like Sir Bradley he is struggling to adjust to the adulation.

He said: "[It feels] very strange. On the one hand you feel proud and honoured, on the other hand it feels quite humbling really.

Swimmer Ellie Simmonds gets an OBE, while Sarah Storey becomes a dame

"It's a recognition for everything that's happened in cycling over a period of time. I'm the lucky one who gets recognised."

Jessica Ennis CBE told Sky News: "It sounds very surreal. It's such an honour.

"When you get involved in sport, and when I started, it certainly wasn't something that I ever thought of, so to now be in this position at 26 and be receiving a CBE is such an honour."

Cyclists Jason Kenny and his girlfriend Laura Trott end 2012 sharing four gold medals and two OBEs (Officer of the Order of the British Empire).

Andy Murray gets one not just for his Olympic victory, but also for winning the US Open.

Andy Murray caps his Olympic gold and US Open title with an OBE

Olympic rower Katherine Grainger, double equestrian gold medalist Charlotte Dujardin and paralympic swimmer Ellie Simmonds and paralympic horsewoman Sophie Christiansen add OBEs to the MBEs they collected following winning performances in the 2008 Beijing Games.

Christiansen told Sky News: "As athletes we work towards getting gold medals but this is the icing on the cake to be recognised."

Lord Coe, the mastermind of the Games, becomes a companion of honour, but one notable absentee from the list is film director Danny Boyle, the creator of the opening ceremony.

He appears to be one of the minority who for various reasons decline to be honoured.

London 2012 mastermind Lord Coe becomes a companion of honour

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Abducted Atiya Back With 'Overwhelmed' Mum

Atiya Anjum-Wilkinson is back with her mother in Greater Manchester three years after being abducted by her father and taken to Pakistan.

The six-year-old flew into Manchester Airport on Friday night on a Pakistan International Airlines flight from Islamabad accompanied by her uncle.

Speaking after seeing her daughter for the first time since 2009, Gemma Wilkinson said she was "absolutely overwhelmed".

She said: "We've literally gone from not knowing where Atiya is, to then finding out that we do know where Atiya is, to receiving pictures of Atiya and how she looks now, and then to Atiya's coming home and now she's here.

"It's been an absolute whirlwind. It's more than I could ever imagine or hope for."

Sky Correspondent Frazer Maude, in Manchester, said: "It is going to be a very difficult period of readjustment that could take some time.

"She has spent three years living in Pakistan with her extended family, we believe, and she will be returning here to try and relearn a Western way of life.

"These must be very difficult times for her mother as well, the uncertainty as to what reaction she is going to get from her daughter, whether her daughter will even speak the same language when she arrives."

Atiya vanished in 2009 after she was taken to Pakistan by her father

MEP Sajjad Karim, who contacted Pakistan authorities to try and track down Atiya, told Sky News he wished he had known about the case earlier.

He said: "There is nothing that I have done now, that I couldn't have done three and a half years ago."

Mr Karim added that Atiya was located on Christmas Eve and authorities were able to show up-to-date pictures of her to Ms Wilkinson on Christmas Day.

No money changed hands in getting her back, he said.

Atiya vanished in November 2009 after going to stay with her father, Razwan Ali Anjum.

The former insurance salesman said he was taking her to Southport.

Instead he took her to Lahore, Pakistan, and told Ms Wilkinson she was "never going to see Atiya again", courts have heard.

Anjum is serving a prison sentence in Britain for refusing to reveal his daughter's whereabouts despite a court order.

Ms Wilkinson's "on-off" relationship with Anjum ended in 2008.

Anjum was handed a fourth consecutive jail term by a High Court judge in April after he refused to say where his daughter was.

Mr Justice Moor imposed a 12-month sentence after he found him in contempt of a High Court order instructing him to disclose Atiya's whereabouts.

He said Anjum, in his late 20s, would not be eligible for release until he had served at least six months. He had previously been given one two-year and two 12-month sentences.

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Norfolk Car Crash: Two Young Girls Killed

Two girls aged seven and 10 have been killed and three other people injured after a car crash in Norfolk, police have said.

The children were in a car along with two adults and another child which crashed on the A47 near Wisbech at 6.40pm, according to Norfolk Police.

All five occupants of the black Ford Focus were taken to the Queen Elizabeth Hospital in King's Lynn, where the girls died from their injuries.

The other three occupants of the car remain in hospital, although police said their injuries are not believed to be serious.

A Norfolk Police spokesman said: "The incident happened on the A47 at approximately 6.40pm when a black Ford Focus left the road, ending up on its side at the edge of a ditch.

"Five people were travelling in the car, two adults and three children, who were all taken to the Queen Elizabeth Hospital in King's Lynn.

"Sadly, two girls aged seven and 10 died in hospital as a result of injuries sustained in the collision."

The girls were taken to Queen Elizabeth Hospital in King's Lynn

The road was closed in both directions for several hours at the scene of the accident - close to the Norfolk border with Cambridgeshire - before reopening just before 10.30pm.

A police spokesman said officers were continuing to investigate how the vehicle came to leave the road and asked for witnesses to the crash to come forward.

The accident comes two days after two young brothers were killed in a Christmas Day motorway crash.

Adnan Habib, 10, and four-year-old Arsalaan were killed when the car they were in - also a Ford Focus - crashed on the M6.

The crash happened on the A47 at 6.40pm on Thursday

In a statement their family said: "Adnan and Arsalaan were our family's precious jewels, spreading joy wherever they went. They were happy and joyous boys who were a central part of the family, always smiling and bringing smiles to everyone they met."

Their 32-year-old aunt, Bushra Tazarib, also died in the crash which happened close to junction 15, near Stoke-on-Trent, at about 11.25am.

Two other women were travelling in the car, including the boys' mother, who was driving at the time of the crash. Both were taken to hospital but discharged on Boxing Day after treatment.

The scene of the crash near Wisbech, Norfolk.

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Weather: Downpours To Bring Yet More Flooding

Large parts of Britain are braced for yet more flooding with heavy rain forecast on Friday and Saturday.

Just under two inches of rain are needed by Monday for 2012 to be the wettest year on record for the UK overall.

A new record has already been set for England with 43.1in of rain falling between January 1 and Boxing Day, the Met Office said.

The Environment Agency (EA) said that the west of the UK should prepare to take the brunt of more wet weather, with many areas still saturated with water from before Christmas, when floods forced many to flee their homes.

The Thames Barrier was closed to keep the high tide out of London

Heavy rain in the north and west on Friday will increase the risk of flooding, while more downpours are forecast on Saturday.

"The weather is set to remain unsettled into the weekend. With the ground still very wet, and river levels running high, any rain is likely to increase the risk of flooding," an EA spokesman said.

"There is also an ongoing risk of flooding from groundwater, particularly in Dorset, and some larger rivers like the Thames and Severn are still rising as they slowly respond to the recent downpours.

"As a result, we may see further flooding of low-lying land, such as flood plains and low-lying roads as the peak in river levels moves downstream."

A car drives down a flooded road between Sonning and Playhatch in Berkshire

There are 82 flood warning and 182 less-serious flood alerts in place, focused on the Midlands, South West and South East.

The recent heavy rain, coupled with late-running engineering work and other problems, meant a miserable return to work for rail travellers on Thursday.

First Great Western said the main line in the South West, which has been closed since before Christmas because of flooding between Exeter St Davids and Tiverton, is expected to reopen on Saturday.

The Thames Barrier was also raised on Thursday morning to keep the high tide out of London and reduce the risk of flooding.

It reopened later in the day, but was closed again from 10.15pm through to 3am.

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Abducted Atiya Anjum-Wilkinson 'On Way Home'

Missing six-year-old girl Atiya Anjum-Wilkinson is reportedly on her way home three years after being abducted by her father.

Atiya vanished in November 2009 after going to stay with her father, Razwan Ali Anjum.

The former insurance salesman said he was taking the girl to Southport.

Instead he took her to Lahore, Pakistan, and told Atiya's mother, Gemma Wilkinson, that she was "never going to see Atiya again", courts have heard.

Anjum is serving a prison sentence in Britain for refusing to reveal his daughter's whereabouts despite a court order.

Atiya vanished in November 2009

However, sources have now suggested Atiya has been located in Pakistan and is due to arrive back in the UK this afternoon.

In November, Ms Wilkinson, 32, from Ashton-under-Lyne, Greater Manchester, made a fresh appeal for information on her daughter's whereabouts.

She said: "It's been an absolute nightmare.

"As to her whereabouts we know nothing. We've had no contact. I'm worrying every day, every single day. Everything is affected by it. When I close my eyes I see her.

"I say goodnight to her every night before bed. I pray she's OK. There is no proof she is still alive. It's been discussed that she could have been sold, but I don't want to believe it.

"She was so funny. She was a little bundle of joy. We just want her home."

Atiya is thought to have been found in Pakistan

Ms Wilkinson's "on-off" relationship with Anjum ended in 2008.

Anjum was handed a fourth consecutive jail term by a High Court judge in April after he refused to reveal where his daughter was.

Mr Justice Moor imposed a 12-month sentence after he found him in contempt of a High Court order instructing him to disclose Atiya's whereabouts.

He said Anjum, who is in his late 20s, would not be eligible for release until he had served at least six months.

Judges have previously imposed jail terms of two years, 12 months and another 12 months in the hope that Anjum would provide information.

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Pensioner Dies After Midnight Mass Attack

A man has died after being attacked while on his way to midnight mass on Christmas Eve.

Alan Greaves, 68, from Sheffield, was found on the pavement close to his home.

South Yorkshire Police said Mr Greaves died last night in the city's Northern General Hospital.

Mr Greaves, a father of four from High Green, died from head injuries.

Detective Superintendent Matt Fenwick said: "Mr Greaves appears to have suffered a brutal attack after leaving his home address to attend midnight mass.

"At this stage, the motive is unclear. I want to hear from anyone who witnessed the incident. If you know who did this, please come forward and offer your support to the family at this difficult time."

The Sheffield Star newspaper has reported that Mr Greaves was on his way to play the organ at the service at St Saviours C of E church when he was attacked at around 11pm.

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Norovirus: Confirmed Cases Up 83% On Last Year

More than 3,500 cases of the norovirus winter vomiting bug in England and Wales have been confirmed in laboratories this season.

The 3,538 figure is 83% higher than the same period in 2011 where there were 1,934, and it also compares with 3,046 cases last week, said the Health Protection Agency (HPA).

But it added that for every reported case an estimated 288 go unreported, meaning there could be 1.01 million cases, a rise from just under 880,000 last week.

It said in the two weeks to 23 December there were 70 reported hospital outbreaks of the virus, compared to 61 in the previous fortnight, bringing the total of outbreaks for the season to 538.

The number of cases - for the period week 27 to week 50, 2012 - has risen earlier than expected this year, the HPA added.

It has not yet been determined why this has been the case, but it is a trend that has been seen across Europe and other parts of the world.

The bug has swept the country and has led to the closure of dozens of hospital wards. It has also affected holidaymakers on two cruise ships.

Experts say norovirus is "very contagious"

Norovirus is highly contagious and can be transmitted through contact with an infected person or contaminated surfaces and objects.

It is known to spread rapidly in closed environments such as hospitals, schools and nursing homes.

Symptoms include sudden vomiting, diarrhoea, or both, a temperature, headache and stomach cramps. The bug usually goes away within a few days.

Although people can suffer from norovirus at any time of the year, activity increases in the winter months, with most cases seen between January and March.

John Harris, an expert in norovirus from the HPA said: "The number of laboratory confirmed cases has risen once again as it appears that we have seen the rise in cases that usually begins in January start a little earlier than we normally expect.

"Norovirus is very contagious, and very unpleasant.

"To help prevent spread of the disease, it's important that people who believe they are unwell with the virus maintain good hand hygiene and stay away from hospitals, schools and care homes, as these closed environments are particularly prone to outbreaks which can cause severe disruption."

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Graphene: Super Funds For Super-Material

Investment funds totalling £21.5m are going to some of Britain's top universities to develop commercial uses for the "super-material" graphene.

Manchester University academics Andre Geim and Konstantin Novoselov won the 2010 Nobel Prize in Physics for demonstrating the remarkable properties of the material.

Graphene is a kind of two-dimensional carbon which is one of the thinnest, lightest, strongest and most conductive materials known to man.

Graphene atoms are arranged in a regular hexagonal pattern similar to graphite, but in a sheet one-atom thick.

A sheet measuring one metre square weighs only .77 milligrams.

The aim is to see the material put to use in a wide array of industrial and everyday applications.

Graphene could deliver potentially lucrative technological breakthroughs in areas ranging from electronics to energy generation and telecommunications.

George Osborne saw Manchester University's graphene research labs last year

The Engineering & Physical Sciences Research Council has identified the most promising graphene-related research projects in British universities to benefit from state funding.

The University of Cambridge has been awarded more than £12m for research into graphene flexible electronics and opto-electronics, which could include things like touch-screens and other display devices.

London's Imperial College will receive over £4.5m to investigate aerospace applications of graphene, working with a number of industrial partners including Airbus.

The other successful projects are based at Durham University, the University of Manchester, the University of Exeter and Royal Holloway.

The universities will be working with industrial partners including Nokia, BAE Systems, Procter & Gamble, Qinetiq, Rolls-Royce, Dyson, Sharp and Philips Research. They will together bring a further £12m to the table.

News of the funding was announced by Chancellor George Osborne, who said: "The Government moved quickly and decisively to make sure this Nobel Prize-winning technology invented here in the UK was also developed here.

"It's exactly what our commitment to science and a proactive industrial strategy is all about - and we've beaten off strong global competition.

"Now I am glad to announce investment that will help take it from the British laboratory to the British factory floor."

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Child Abuse: New Database Of Medical Visits

By Liz Lane, Sky News Reporter

A national database is being introduced in hospitals to flag up potential vulnerable children to nurses and doctors.

It is in order to prevent cases similar to that of Baby Peter Connelly in which health and social service workers repeatedly failed to pick up on signs that the toddler was being abused.

Social services failed to detect signs that Baby P was being abused

He died of multiple injuries in August 2007.

Health Minister Dr Dan Poulter is behind the system and said: "For many years there's been a problem of getting joined-up and co-ordinated information to front-line healthcare professionals about children that may be potentially at risk from abuse."

Under the system, a flag will appear on the child's medical record at any hospital they attend if they have already been identified by a local authority as being at risk, or if they have frequently been taken to accident and emergency departments.

Currently, this sort of information is not shared between hospitals up and down the country.

Dr Simon Eccles, of Homerton Hospital in east London, believes it will help doctors make better judgements.

"Spotting those characteristic injury patterns that tell you a child has been abused is one thing," he said, "but what's much harder is the child whose injuries are completely understandable but actually have just been happening too often."

Lauren Matthews, whose nine-year-old son Leo has been in hospital recently, told Sky News she has her concerns: "Two weeks ago we had to take him to hospital because his friend closed his hand in the door. And then yesterday we had to come into hospital again because he had an asthma attack, so in certain situations it could be taken out of context."

Doctors say the system will only deal in facts and they will objectively assess each case.

Work will begin on it in early 2013 and it will start to be introduced to NHS hospitals in 2015.

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Knife Crime: Funding To Tackle Youth Violence

By Niall Paterson, Sky News Correspondent

The government has announced extra cash to help tackle youth violence and gun crime.

Half a million pounds will be given to the voluntary sector, charities and other organisations working directly with young people at risk of becoming violent offenders and those already involved in knife and gun crime.

In addition, the Home Office intends to expand the "priority areas" in which its Ending Gang and Youth Violence frontline team works from 29 to 33.

Home Secretary Theresa May said: "Serious youth violence has a devastating impact on communities and needs to be stopped.

"We need to change the life-stories of the young people who too often end up dead or seriously injured on our streets or are sucked into a life of violence and crime.

"This package of support will help police protect communities as well as boost the innovative work being done at a local level by charities and voluntary groups to provide vulnerable youngsters with a way out."

The Home Office has already committed £18m to help police, local agencies and the voluntary sector tackle gangs and youth crime in 2013.

Gang involvement and knife crime are commonly linked to social deprivation and poor upbringing.

Figures from the Metropolitan Police show that as many as 60% of knife crime attacks are gang-related.

Home Office Minister Jeremy Browne told Sky News: "The consequences of knife crime are often devastating and when knife crime does take place it rightly worries people a huge amount. There is a clear link between knife crime and gang membership."

Yet critics of the government's approach suggest that until the London riots of 2011 too much emphasis had been placed on criminal justice, and how courts would deal with offenders after crimes had been committed.

The government's Ending Gang and Youth Violence report, published in November 2011, suggested far greater emphasis on utilising the experience of the voluntary sector.

But one youth worker and former gang member, Sheldon Thomas, told Sky that the sums of money being discussed were too small to have any real effect.

He said: "There are many deprived communities up and down this country that are in need of sufficient resources.

"Those resources are being shipped out into foreign wars... to the normal Joe Public I don't think they matter. I think what matters is what's happening next door."

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Floods: 2012 One Of The Wettest Years Ever

The year just past looks set to be one of the wettest on record, and draws to an end with more than 100 flood warnings in place.

Homeowners in the South West - already mopping up after recent flooding - were warned by the Met Office to expect heavy rain on Thursday, with similar conditions in Wales and the North West on Friday and Saturday.

On Thursday morning, the Environment Agency had 103 flood warnings and a further 217 alerts in place.

It is a very different picture to the start of the year, which began with the most severe drought since the summer of 1976 - a legacy of the previous two - and in some places, three - dry winters.

Some reservoirs were less than half-full and ground water levels were unusually low.

However, Isobel Lang, Sky News weather forecaster, said: "Conditions changed rather unbelievably through April, with a switch to significantly wetter weather as the jet stream was positioned further south than usual, driving in a succession of Atlantic fronts and depressions."

The soggy summer that followed was the wettest for a century, and although ground water and river levels recovered, the Environment Agency and the Met Office raised concerns that flooding was increasingly likely during the autumn.

With very little precipitation needed to tip the balance, late September and November saw significant flooding. More followed in the run up to Christmas as mild, southwesterly winds from the Atlantic brought both warmth and torrential downpours.

A flooded road in Spring Cottage, Leicestershire, two days after Christmas

The wettest year on record is 2000 when more than 1,300mm of rain fell.

In 2012, rainfall has already exceeded the 1981-2010 annual average of around 1,150mm, and is far greater than the 950mm seen in 2010.

With the wet weather set to continue, National Rail warned train passengers to expect further disruption after delays before Christmas, while First Great Western warned people not to travel because of line problems in Devon and Cornwall.

Late-running engineering work added to the misery, with no trains between London Paddington, Heathrow Airport and Reading, delays at Birmingham New Street and hold-ups between East Midlands Parkway, Leicester and Peterborough.

In other developments, the British Geological Survey put an amber landslide warning in place for the South West, urging walkers to take extra care along coastal routes.

The weather has been blamed for the death of a monkey in Cornwall

Meanwhile, a monkey sanctuary in Looe, Cornwall, appealed for help after its premises were devastated by the wet and windy weather.

A large tree was brought down, while experts believe the death of a 10-month-old capuchin at the centre from tetanus may be linked to the floods.

"We're hoping (next year) doesn't get any worse," said Claire Turnbull, education officer at Looe Monkey Sanctuary.

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Scottish Shellfish Reef 'Is World's Largest'

A Scottish reef that is home to more than 100 million colourful and rare shellfish could be the largest of its kind anywhere in the world.

The reef of flame shells, which covers an area more than 40 times larger than the UK's biggest shopping centre, was discovered during a survey commissioned by Marine Scotland.

It was found in Loch Alsh, a sea inlet between Skye and the Scottish mainland, which could now be given extra environmental protection.

Scottish Environment Secretary Richard Lochhead said: "The seas around Scotland are a hotbed of biodiversity and the clean and cold waters support many fascinating and beautiful species.

"With Scottish waters covering an area around five times bigger than our landmass, it's a huge challenge to try and understand more about our diverse and precious sea life.

"This important discovery may be the largest grouping of flame shells anywhere in the world."

Loch Alsh is a sea inlet between Skye and the Scottish mainland

At 7.5 sq km, the area the reef covers dwarfs the 180,000 sq metres taken up by MetroCentre in Gateshead, Tyne and Wear.

The shells it contains have a similar shape to scallops with many neon orange tentacles. They group together on the sea bed and their nests create a living reef to support hundreds of other species.

Ben James, marine survey and monitoring manager at Scottish Natural Heritage, said the reef would form part of a bid for Marine Protected Status.

Human activity would be managed and restricted to ensure it does not harm wildlife or damage habitats.

"Whilst we had some records of flame shells in Loch Alsh, we had no idea how big the bed was," Mr James said. "It's yet another example of the fantastic diversity of Scotland's marine environment."

Last month, the Scottish government applied to the European Union to designate an area in the northeast Atlantic as a conservation area.

Hatton Bank, near the Isle of Lewis, is around 9,750 sq miles (15,700 sq km) and features a large volcanic bank which is home to a large variety of corals.

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Hunting Ban Repeal Vote 'Is Not Imminent'

There is no imminent prospect of a parliamentary vote on repealing the hunting ban, a Cabinet minister has signalled.

Environment Secretary Owen Paterson appeared to rule out bringing the issue before the Commons next year.

Mr Paterson, a keen supporter of country sports including hunting, told the Daily Telegraph: "There's only a point having a vote if you're going to win.

"At the moment, it would not be my proposal to bring forward a vote we were going to lose. There needs to be more work done on Members of Parliament."

He went on: "It is our clear intention to have a free vote but we need to choose an appropriate moment."

Owen Paterson has appeared to rule out the vote in 2013

The comments emerged as an estimated 300 Boxing Day hunts gather up and down the country for the busiest day of the season.

They will go ahead despite the ban on hunting with dogs that was passed under Labour in 2005.

Campaigners say enforcing the restriction wastes police time, and suggest some officers turn a blind eye to breaches of the law.

But David Cameron has been accused of dragging his heels over acting on the coalition agreement promise of a free vote on overturning the ban.

Many Tories would support repeal, but most Labour and the Liberal Democrats are still in favour of the ban.

Animal welfare charities, including the RSPCA, have commissioned research which suggests that only 15% of people want to scrap the ban.

But the Countryside Alliance says it has seen no slackening of support for hunting in recent years.

For Labour, shadow environment secretary Mary Creagh said there was no public support for ending the hunting ban.

"Most people back Labour's ban on hunting wild animals with dogs and accept there is no place for animal cruelty in a civilised society," she said.

"People are worried about their incomes falling, prices rising and losing their jobs, yet this out of touch Tory-led Government wants to bring back hunting.

"After the recent high profile conviction of members of the Prime Minister's hunt, I hope that hunts will respect the law this year."

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M6 Car Crash Killed Two Young Brothers

Two of the three people killed after a car flipped over on the M6 motorway on Christmas Day were brothers, aged four and 10.

The third victim of the accident on a busy stretch of the motorway in Staffordshire was a 32-year-old woman.

The boys' mother, who was believed to have been driving the car, and another female passenger were taken to University Hospital North Staffordshire for treatment.

A spokesman said they would both be discharged later today.

Staffordshire Police said the crash happened on the northbound carriageway of the M6 near junction 15 at around 11.25am.

Chief Superintendent Martin Evans said: "Colleagues from the emergency services have worked seamlessly throughout the day in these very sad and exceptionally difficult circumstances.

"Unfortunately the outcome is extremely tragic and our thoughts are with the family of those who have died."

The accident occurred on the M6 between junctions 14 and 15

The motorway was closed in both directions following the accident but reopened after several hours.

A West Midlands Ambulance Service (WMAS) spokesman said: "Crews arrived to find a single vehicle that had crashed and overturned.

"Two children and an adult that were travelling in the vehicle suffered serious injuries.

"Unfortunately, despite the best efforts of ambulance crews, nothing could be done to save the two boys and one woman, and they were confirmed dead at the scene.

In a separate accident on the M6, four adults and three young children were injured on the southbound carriageway, near Corley Services, at around 7pm on Christmas Day.

A WMAS spokesman said two cars were substantially damaged and it was fortunate nobody was more seriously injured.

Earlier on Christmas Day, Ann Mary Goodrich, 57, and her husband Paul John Goodrich, 56, from Hampshire, died following the collision on the B3349 Odiham Road at Heckfield Heath, near Basingstoke.

A 29-year-old man from Farnborough, believed to be the driver of the other vehicle involved, received medical attention at the scene before being taken to hospital with serious injuries.

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New TV Campaign As Men's Cancer Risk Hits 50%

A TV advertising campaign has been launched as research reveals that half of all men will get cancer.

Cancer Research UK has released figures showing that diagnosis of men with the disease is increasing - but more are also surviving.

The charity used Boxing Day to launch a TV campaign highlighting how research can save lives and featuring stories from survivors.

New figures suggest that by 2027, 50 men out of every 100 are likely to be diagnosed with cancer at some point in their lifetime.

That compares to 44 out of every 100 in 2010.

Women's lifetime cancer risk is also increasing and is predicted to rise from 40 to 44 out of every 100 women by 2027.

However, the charity says that cancer survival has doubled in the last 40 years thanks to detection techniques and improved treatments.

Age is the biggest risk factor for cancer and the increase in risk is largely due to more people living longer.

The cancers set to increase most in the next 15 years include prostate, bowel and melanoma, Cancer Research UK says.

Prostate cancer remains a continuing challenge. Cases of the disease are rising but it is not yet possible to distinguish which prostate cancers will be life-threatening.

Professor Malcolm Mason, Cancer Research UK's prostate cancer expert, said: "Prostate cancer needs research. We have many questions and research is key to providing answers about the disease.

"As our population ages, growing numbers of men will be diagnosed with the disease.

"Over the last 40 years prostate cancer incidence rates in Great Britain have tripled, and three-quarters of cases are diagnosed in men aged over 65 years."

One example of useful research by Cancer Research UK scientists is work indicating that a protein called MSMB may help identify men at greater risk of prostate cancer.

The researchers showed that this protein seems more accurately linked to prostate cancer than the marker currently tested for - the prostate specific antigen (PSA).

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Woman Found Murdered On Christmas Day

A man has been arrested on suspicion of murder after a 37-year-old woman was found dead at home on Christmas Day.

Officers were called to a property in Maes Yr Ysgol, Carmarthen, west Wales, at 10.50am on Tuesday.

"A 28-year-old local male was arrested at the location on suspicion of murder," a police spokesman said.

"A 37-year-old female was found deceased at the address and police have launched an investigation.

"The community are continuing to support the investigation and Dyfed-Powys Police would like to thank them for their assistance.

"Any member of the public who may have information that could assist this inquiry should contact police on 101."

Police would like to hear from anyone who was in the area between 5pm on Christmas Eve and 11am on Christmas Day.

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Boxing Day Sales: Bargain Hunters Hit Shops

Britain's shops look set for a bumper Boxing Day of profits as bargain hunters go on a predicted £3bn spending spree at the sales.

People queued overnight in London's Oxford Street in preparation for stores opening this morning, with thousands pouring through the doors from as early as 6am.

Selfridges bosses said they took £1.5m at the tills in the first hour of opening and stores across the West End expect some £50m of takings in one day.

Sue West, Selfridges director of operations, said handbags and meanswear were among the items flying off the shelves.

She said: "Online sales have been great but year on year people still want to experience the Boxing Day sales."

Manchester's Trafford Centre has been enjoying what is thought to be the biggest Boxing day in its history - with police drafted in to help manage the crowds.

Hundreds of shoppers poured through the doors when Selfridges opened

The centre's Gordon McKinnon said: "Many retailers have kept stock levels much tighter this year, so the sales will not be stretching on into January."

Queues began to form at Kent's Bluewater at 1am on Boxing Day, with around 3,000 waiting for the doors to open at 7am.

Up to 7.1 million shoppers are expected to hit the shops at some stage, with one in 10 venturing out for a deal before 9am, according to research from Green Flag.

According to MoneySupermarket.com, shoppers in the UK are set to spend a total of £2.9bn.

A poll for the website found almost four million Britons (8%) planned to head to the high street on Boxing Day in addition to more than five million (10%) who will be searching online.

Queues formed outside some shops from as early as 1am.

However, figures from one survey, by comparison website Pricerunner, suggested that almost half (47%) of those questioned were not planning on buying anything in the post-Christmas sales.

A strike by London tube drivers about bank holiday pay does not seem to have had too much impact on the sales.

Extra buses were laid on for those travelling to the West End, as well as the Westfield shopping centres in Stratford, east London, and White City, west London, Transport for London said.

Jason Tyrrell from the New West End Company told Sky News: "We were prepared for this strike and had coaches for staff. the shoppers are out in force, but I hope both sides get round the table and sort it out."

Stores reported an influx of shoppers from abroad

Online retailers tried to stay one step ahead of the competition by offering heavy discounts on Christmas Day with Amazon's UK website seeing a 263% rise in sales over the last five years.

Analysts Experian predict that Christmas 2012 will be the "biggest and busiest ever" for online retailers in the UK, with visits to retail websites expected to reach 126 million today, up 31% on 2011 and consumers predicted to spend £472.5m online.

But there was more gloom for the high street in the run-up to Christmas with shoppers preferring to buy presents online, according to Business recovery group Begbies Traynor.

The British Retail Consortium (BRC) said high street spending was "acceptable but not exceptional" this festive period - blaming it poor accessibility to high streets and weak consumer demand rather than online shopping.

Richard Dodd of BRC said: "There are a lot of myths around online retail. 10% of overall retailing over the year comes from online shopping and actually it presents lots of opportunities for the retail sector."

A Begbies Traynor report said almost high-street 140 firms were in a critical condition in the fourth quarter, meaning they are on the brink of collapse, while more than 13,700 were in "significant" distress - up 35% during the three months to December 17.

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Christmas Day Online Sales Surge Predicted

Bargain season begins in force today as online retailers slash prices ahead of an expected onslaught of consumers hitting the high street for the traditional Boxing Day sales.

Amazon's UK website said it had seen sales on Christmas Day increase by 263% over the last five years.

It expects this to be its busiest Christmas Day to date, partly due to the growth in home broadband and the popularity of tablets and smartphones.

The retailer is launching its Boxing Day deals a day early, which include clearance offers and "lightning deals" for a limited time and quantity of stock.

Shopping frenzies are moving from the high street to the internet

Trends seen on past Christmas Days on Amazon include an 11am rush for last minute gift cards, the spending of gift cards at midday and sofa surfing at 8.15pm.

Amazon's vice president of EU retail, Xavier Garambois, said: "The digital revolution has certainly played a part in this growth and Christmas Day is our biggest day of the year for MP3 and Kindle book downloads, as many people are buying content from new devices that they have just received.

"It's not just digital items though, we are seeing purchases of everything from baby products to women's clothing rapidly growing on Christmas Day.

"Many customers are shopping on Christmas Day in a way that has previously only been seen in the retail industry on Boxing Day."

According to MoneySupermarket.com, shoppers in the UK are set to spend a total of £2.9bn in the Boxing Day sales.

Furniture Village said visits to its website on Christmas Day last year peaked at 25,000 at 4pm, with that figure increasing to 50,000 on Boxing Day, suggesting that the majority of customers researched products online before buying from high street stores.

Chris Webster, a spokesman for technology analyst Capgemini, said: "Online tills will be ringing all the way from Christmas Eve to Boxing Day, including a massive £300m spent on Christmas morning itself.

"Christmas Day will see a surge in online sales as new tablets and smartphones are put through their paces and vouchers are cashed in for virtual goods such as movies and music.

"This year we're as likely to be downloading Queen's Greatest Hits as watching the Queen's speech."

Meanwhile, high street spending was "acceptable but not exceptional" this festive period, according to the British Retail Consortium.

Head of media and campaigns Richard Dodd said poor accessibility on high streets, a lack of parking and weak consumer demand were to blame rather than an increase in online shopping.

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Troops Send Christmas Cheer From Front Lines

British troops stationed at Camp Bastion in Afghanistan have sent Christmas messages back home to their loved ones.

Soldiers serving with the 21 Engineer Regiment wished family and friends a happy festive season, before celebrating with a traditional Christmas lunch and dinner.

Lance Corporal Kane Hollings said: "Big shout out to all my family, my friends, my little dog Bella. I'm sorry I can't be home for Christmas, but I hope you have a good time without me."

Corporal David Allan said: "I'd just like to say Merry Christmas to all my friends and family back home. My mum, my dad, and especially my beautiful wife Cheryl, I miss you and love you and I can't wait to see you in January."

Troops also celebrated the festive season with a Santa sleigh race at Camp Bastion, as some 9,000 troops serving in Afghanistan tried to make the most of a Christmas spent away from their families.

Senior officers serve mince pies and mulled wine to the troops

A major logistical effort saw two-and-a-half tons of turkey, 850kg of Brussels sprouts and 350kgs of Christmas pudding flown in for the troops.

Activities such as carol services, pantomime and sporting competitions were also being carried out at many bases.

At Lashkar Gah main operating base, soldiers are expected to take part in the Lash Dash, a Christmas Day fun run with prizes for the best costumes.

Senior-ranking officers are also keeping up with Army tradition by serving squaddies tea and coffee on Christmas morning.

Thousands of balloons, crackers, party poppers and hats have been ordered and around 130 tons of Christmas post has been delivered to Camp Bastion in the last week, to be dished out among bases.

Troops will also share the 23,500 mince pies and 40,000 After Eight mints flown in for the day.

Major Mark Yates, 40, from Manchester, who serves with The Duke of Lancaster's Regiment, 1st Battalion, (1 Lancs), has a cameo role in the pantomime production of Aladdin in Lashkar Gah.

"We're all away from our families but we want to make sure we remember Christmas as it is a link with home," he said.

"Many of us have young children and would probably have gone to see a panto at this time of year.

"It's been a bit of fun between work, but not at the cost of any of our operations."

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Floods: UK To Remain On Alert For Another Week

Christmas has got off to a soggy start for many parts of the UK, as more rain falls on flood-threatened areas.

Hundreds of homes and businesses have been swamped with floodwaters as winter rain continues to fall on saturated land.

Staffordshire Police have closed the M6 northbound following an accident in which there were multiple deaths.

Police also closed the junction 10 exit of the M27 at Wickham and the A127 near its junction with the M25 due to flooding.

The Environment Agency (EA) said widespread showers meant many places remain on flood alert despite the persistent heavy rain being expected to ease off by the end of today.

Railway engineers check inflatable dams on the railway line near Exeter

An EA spokeswoman said: "While the worse of the weather is behind us, the risk of flooding continues with rain falling on already saturated ground.

"As a result, flood warnings and alerts will remain in place for much of the week ahead.

"This is because river levels remain high and sensitive to further rainfall."

The rivers Severn, Trent, Avon and Thames are most at risk of flooding, the EA said, and another band of rain is expected to swamp the country on Boxing Day.

Kempton clerk of the course Barney Clifford said he saw no need to call an inspection and that the William Hill King George VI Chase meeting on Boxing Day should go ahead as planned.

The Holme Pierrepont National Watersports Centre in Nottingham was flooded

There are more than 150 flood warnings in place across the country, and 256 less serious flood alerts.

The Met Office has issued an amber weather warning - its second highest alert - for southwest England.

The Met Office said the wettest place in the UK since the heavy rain began last week was Tyndrum in Perthshire with 6.1in (155mm).

Cardinham, near Bodmin in Cornwall, is the wettest place in England with 5.1in (128.8 mm) of rain and the wettest place in Wales has been Mumbles Head in West Glamorgan with 4.2in (107mm) of rain.

Ballypatrick Forest in Antrim has been the wettest place in Northern Ireland, with 3.5in (89mm) of rain.

Some areas have exceeded their full-month December average since December 19 - such as Plymouth, which has seen 5.1in (128.8mm) of rain compared with a December average of 4.7in (118.8 mm).

Lower-level yellow weather warnings have also been issued for much of southern England and Wales.

Following a an extremely dry start, Britain is now set for one of its wettest years ever, the Met Office said.

The UK's average rainfall in 2012, excluding December, is 1,202mm -  placing it 13th in the list of wettest years since records began in 1910.

Forecasters said December's deluge of rain means this year is now likely to finish among the country's highest rainfall totals on record.

The year 2000 remains the UK's wettest year, with an average rainfall of 1,337.3mm.

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M6 Closed In Both Directions After Crash

The M6 has been closed in both directions in Staffordshire following a serious crash.

The crash occurred on the northbound carriageway between junction 14 and 15.

Sky's Mark White said the crash occurred just before midday on Christmas Day.

Staffordshire Police said there were multiple fatalities as a result of the accident.

All three emergency services are at the scene.

More follows...

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Queen And Royals Attend Christmas Day Service

The Queen has joined other members of the royal family for a Christmas Day church service in Sandringham after recovering from a cold.

Wearing a turquoise coat dress and matching hat, Her Majesty was wished a merry Christmas by about 1,000 wellwishers at St Mary Magdalene.

She was given a variety of bouquets of flowers by young children who queued up meet her.

The Queen made the short journey from Sandringham House in a Bentley with princesses Beatrice and Eugenie.

The Duchess left hospital earlier this month

The Duke of Edinburgh, 91, who missed last year's service with a heart problem, walked the few hundred yards from the house to the church accompanied by the Duke of York and the Earl and the Countess of Wessex.

The Duke and Duchess of Cambridge are spending the day with Kate's family, while Prince Harry is serving as an Apache pilot in Afghanistan.

Traditionally, the whole family would gather at the Queen's estate home over the festive period.

But this year's appearance is slightly more low-key without William and Kate who are spending the day privately in Bucklebury, Berkshire.

Prince Harry is currently serving in Afghanistan

The Duchess has had a testing few weeks, having been forced to announce her pregnancy earlier than planned when she was admitted to King Edward VII's Hospital in London following a bout of severe morning sickness.

The condition, known as hyperemesis gravidarum, leaves expectant mothers so ill they cannot keep food or liquids down.

Days later, she and Prince William found themselves offering their condolences to the family of nurse Jacintha Saldanha, 46, who was found hanged in her nurses' quarters after answering a prank call made to the hospital by two Australian DJs impersonating the Queen and Prince of Wales.

The Duke and Duchess are expected to follow their stay in Bucklebury with a visit to Sandringham at some point over the festive period.

In Afghanistan Prince Harry, like thousands of other servicemen, is celebrating Christmas with troops.

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Queen To Hail Olympics In 3D Xmas Message

Monarch's Message: From Radio To 3D

Updated: 4:41am UK, Monday 24 December 2012

The Queen's grandfather, King George V, delivered the first royal Christmas broadcast live on the radio from Sandringham more than 75 years ago.

He had reigned since 1910, but it was not until 1932 that he gave his first festive speech.

He was unsure about using the relatively untried medium of the wireless, but eventually agreed and read a message composed by author Rudyard Kipling.

The original idea was suggested by Sir John Reith, the founding father of the BBC, to inaugurate the Empire Service, now the BBC World Service.

The fixed time of 3pm each year was chosen in 1932 because it was considered the best for reaching most of the countries in the British Empire by short wave.

The General Post Office was used to reach Australia, Canada, India, Kenya and South Africa.

George V's eldest son, who became King Edward VIII, never delivered a Christmas speech as his reign lasted less than a year, ending in abdication.

There was no broadcast in 1936 or 1938.

King George VI, Edward's younger brother, made his first broadcast in December 1937 in which he thanked the nation and Empire for their support during the first year of his reign.

It was the outbreak of war in 1939 which firmly established the tradition, when George VI sought to reassure people and boost morale.

Following her father's death, the Queen made her first Christmas broadcast in 1952 and her first televised Christmas broadcast in 1957, live from Sandringham.

She has delivered one every year except for 1969, when she decided the royals had been on TV enough that year following an unprecedented documentary the family made about their life.

Today the speech is available on the television, radio, the Royal Channel on the YouTube website, and in HD.

This year for the first time the national address will also be broadcast in 3D.

The Queen usually does her speech in one take, recording it a couple of weeks before December 25. Accompanying TV footage is gathered throughout the year.

She writes her own message and each one has a religious framework and reflects current issues.

The speech is one of the rare occasions when the Queen does not turn to the Government for advice and is able to voice her own views.

While the Royal Family gathers together round the TV to watch the broadcast on Christmas Day, the Queen sometimes watches it alone, heading off to another room to scrutinise her message in private.

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Charities: Budget Cuts Will Hurt The Homeless

By Becky Johnson, North of England Correspondent

Charities that provide services for homeless people fear their funding will be cut at a time when demand is soaring.

Figures show the number of homeless people has increased dramatically in the last year. Many shelters receive local authority funding and expect they will feel the effects of council budget cuts.

In the last year the number of people sleeping on the streets has risen by 23% in England, according to the charity Crisis.

Homeless charity Shelter says over the same period the number of families forced to live in temporary accommodation has gone up by 51%, and one in every 115 households across England is currently at risk of homelessness.

Research published by Crisis has found more people are becoming homeless in England due to the impact of cuts to housing benefit set against the backdrop of the continuing economic downturn. It says young people and families with children are being hardest hit.

Craig Lowthian, 32, has been sleeping rough on the streets of Liverpool for four years.

He became homeless after a relationship breakdown and says he has no alternative because he can't find work. 

"People knock me back all the time because of my criminal past. You can't win either way whichever way you look at it I can't win," he said.

He admits he has an alcohol problem and said he sees no way out of his situation. "There's nothing I can do about it. Your life just adapts to it."

He is helped by outreach workers from the Whitechapel Centre in Liverpool. They go out on the streets to speak to people and encourage them to visit the centre where they can get warm drinks, food, have a shower and get help finding temporary accommodation.

The bulk of the funding for the centre comes from Liverpool City Council with the rest coming from charitable donations. The council has to save £32m in the next financial year so managers at the Whitechapel Centre say its future is uncertain.

David Carter, CEO of the Whitechapel Centre, is concerned if services like his disappear there will be nowhere for homeless people to get help.

He told Sky News: "We provide a safe space to have something to eat, to get clean and to start that journey out of homelessness. If you take that funding away not only do you take away the opportunity to come indoors and be included - you actually take away people's hope."

Aiden McKevitt, 30, has been sleeping rough since he "ran out of money" three months ago. He's currently applying for jobs and is hoping the Whitechapel Centre will find him somewhere to stay in the meantime.

Describing life on the streets, he told Sky News: "It's cold at night. You wake up in the morning and you can't speak because there's bile in your throat. It's rough in the winter."

"There's a lot of organisations where you can get food during the day and a cup of coffee so you don't freeze to death but they do need help these organisations, some funding."

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