UK News: VAT increases to 20% in bid to raise £13bn

THE standard rate of VAT increased from 17.5 per cent to 20 per cent today, in a move designed to raise £13 billion a year to help balance the nation's public finances.

Retailers have warned that the 2.5 per cent hike will depress consumer spending, while there are also fears it will fuel inflation.

Cuts boost NHS front line

THE Department of Health is to make an extra 162 million available for front-line services after a successful efficiency drive, the Health Secretary announced today.

Andrew Lansley said savings made in consultancy, IT, administration and advertising would be used to ease the strain on the front line.

Private firms help offset employment slump

JOB opportunities across the country fell "steeply" last month, although pay for new posts increased, research suggests.

Employment group Reed said that despite the recent slump, employer demand for new employees was up four per cent on a year ago thanks to work being created by private firms.

Salaries increased in December, reversing a seven-month reduction, taking them almost back to their level of a year ago, said Reed.

Fresh Joanna appeal

POLICE investigating the murder of Joanna Yeates have found no evidence she was sexually assaulted as they suggested more than one person may be responsible.

Detectives are appealing for help in tracing a 4x4 vehicle seen near the spot where her snow-covered body was discovered on Christmas Day.

But they also revealed they still do not know when and where the 25-year-old died.

Kelly 'still in love with ex'

KELLY Osbourne has admitted she is still "head over heels" in love with Luke Worrall in spite of splitting from her former fiance.

The 26-year-old daughter of rocker Ozzy Osbourne said she still loved 21-year-old DJ and model Worrall following the couple's break-up in July.

Yorkshire: An earthquake has shaken northern England for the second time in a fortnight. The tremor, measuring 3.6 on the Richter scale, struck near Ripon, North Yorkshire, at 9.02pm yesterday and was felt as far afield as West Yorkshire, Tyne & Wear, and Cumbria.

Newcastle: Removing kerbs could actually make driving safer, according to a study by Newcastle University researchers. The study found that 31 per cent of drivers were more likely to seek excitement by taking driving risks, and building in more obstacles - such as taking away kerbs - might be the answer.