Hillsborough Jury Shown 1981 Crush Footage

By Becky Johnson, Sky News Correspondent

Footage of a near-fatal crush at the Hillsborough stadium years before the 1989 disaster has been shown at the inquests into the deaths of 96 football fans.

The jury was told 38 fans were injured during a similar crush at the 1981 FA Cup semi-final between Tottenham Hotspur and Wolverhampton Wanderers.

On that occasion, the Tottenham fans were allocated the Leppings Lane terrace at the stadium, the same stand allocated to Liverpool fans in 1989.

The jury was told that in 1981, there was congestion at the Leppings Lane turnstiles, resulting in a gate being opened to allow fans into the ground.

The FA stopped staging semi-finals at Hillsborough for six years

The inquest heard the crush occurred as the crowd on the terraces surged forward when Spurs scored four minutes into the match.

The game was televised and the footage shown to the court included clips where stands can be seen behind the action on the pitch.

Six minutes into the game, fans are filmed climbing over the fence between the crowded stands and the pitch and sitting down behind the goal.

By the 11th minute, dozens of fans were sitting on the pitch with more still climbing the fence.

Fans are seen sitting on the edge of the pitch following the crush

Two minutes later, St John Ambulance workers are seen carrying a stretcher along the sideline to help a spectator.

Half an hour into the game, so many fans had managed to escape the crush on the terraces they were lining the pitch behind the western goal and in front of the south stand.

At half-time, spectators ran across the pitch.

The jury was told perimeter fences were opened, allowing between 100 and 250 fans to leave the crowded terrace.

The inquest heard that following the near-tragedy, Hillsborough was not used for FA Cup semi-finals until 1987.

The jury was told that after 1981, consideration was given to whether the capacity for the stand, stated on the ground's safety certificate as 10,100, was too high.

Eight years later in a crush on the same terrace, after the same gate was opened to relieve congestion at the Leppings Lane turnstiles, 96 Liverpool fans died.

The inquests continue.

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Help To Buy: Most Loans Go To First Time Buyers

Some 80% of the Help To Buy loans granted in the mortgage scheme's first six months were given to first time buyers, the Treasury has said.

A total of 7,313 loans were issued between October last year and March this year, with a total value of £1bn.

The average value of each loan taken out under the controversial scheme was £136,742.

Only about 1% of all mortgages taken out in the period were helped by the scheme, undermining critics of the programme who have said it is prompting a house price bubble.

Most mortgage completions through the scheme were on properties outside London and in regions where prices are lower.

A high proportion of homes supported by the scheme were in the North West and the East of England.

Blackstock property expert Andrew Teacher said: "Today's figures reinforce the fact that Help to Buy has not helped to blow up the London market as numerous commentators have suggested.

"The figures show the scheme has been most effective in areas of reduced growth where prices have remained relatively flat."

The mean value of a property purchased or remortgaged through the scheme is £151,597, compared to a national average house price of £252,000.

A total of 38% of loans were for terraced houses.

The scheme's rollout in October saw only four completions, followed by 164 in November and 818 in December.

However, the monthly figure jumped significantly in the first three months of this year.

In January, completions reached 1,580, while the number rose further in February and March, to 2,090 and 2,657 respectively.

Only 5% - a total of 385 completions - were made on properties in the capital.

The Help To Buy mortgage guarantee scheme was boosted by a second phase equity loan scheme in the spring.

Data for both phases shows a total of 27,861 homes were bought under the scheme, with 85% of sales to first-time buyers.

Prime Minister David Cameron said: "Help to Buy has helped thousands of hardworking people to buy a new home and crucially it is helping to increase the number of new homes being built around the country.

"It is an important part of our long term plan to back those who want to get on and to secure a better future for Britain."

Meanwhile, net lending to small and medium sized businesses as part of the Bank of England's Funding for Lending Scheme dropped  by £723m in Q1, amid a focus on business loans.

The Bank said that between February and March lenders drew just £2bn from the scheme. It was launched in mid-2012 to encourage banks to improve borrowing facilities.

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'Canoe Man' Ordered To Pay Back Pension Cash

A man convicted of conning insurance companies out of hundreds of thousands of pounds by faking his own death has been ordered to hand over £40,000 from two pensions that have now matured.

John Darwin, who was reported missing in a canoe in the North Sea in March 2002, was given the order during a Proceeds of Crime Act hearing at Teesside Crown Court, the same court where the 63-year-old was jailed for fraud in 2008.

The pensions were earned from his time as a teacher and a prison officer.

A judge previously ordered a repayment of £679,073 but Darwin, who is now unemployed, living in Seaton Carew, near Hartlepool, and claiming benefits, has so far only repaid £122.

Darwin's ex-wife Anne has repaid more than £500,000

After the hearing, prosecutor Jolyon Perks said Darwin might face further applications should he come into more money in the future.

"We believe it sends a strong signal to those who seek to benefit from their criminal conduct that these orders have teeth," he said.

"They will be pursued and they will be rigorously enforced.

"The Proceeds of Crime Act is intended to be draconian."

Darwin's wife, Anne, from whom he is now divorced, has repaid more than £500,000 under a separate Proceeds of Crime order.

The couple's sons Mark and Anthony thought their father was dead

She had collected a similar amount in life insurance cash paid out over her husband's alleged death while he hid in their home.

The couple's two sons were left believing their father had died.

He was reunited with them after walking into a police station in London in December 2007 and claiming he had no recollection of what had happened.

His wife, who had run away with him to Panama, pretended she, too, was amazed at his reappearance until a photograph turned up of them posing together after his supposed death.

She was later jailed for more than six years for fraud and money laundering.

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World Cup: Seven Ways To Predict The Winners

What do Stephen Hawking, Homer Simpson and weather forecasters have in common? They have all tried to use their specialist skills to predict the outcome of a World Cup.

Stephen Hawking says England should play 4-3-3 to stand any chance

Sky News looks at seven ways you might second guess the outcome of Brazil 2014. (Anyone with Three Lions in their heart should probably look away now.)

:: The Simpsons

The Simpsons have it that Germany will win the World Cup

In 2005 the hit cartoon correctly predicted the outcome of the Super Bowl - and now they have tried their luck at the World Cup. A one-off special produced by Fox earlier this year featured Homer refereeing a final between Brazil and Germany, with the hosts apparently triumphing 2-0.

:: The mathematical formula

Mathematical formulae have often been proved wrong at World Cups

Professor Stephen Hawking studied England's performances to come up with an equation that shows the Three Lions are more likely to flourish after short-haul flights when the temperatures are low and the games kick off at a familiar 3pm.

The good news is that… No, there is no good news. England face a 5,000-mile flight to a country expecting 30C weather, to play games at 6pm, 4pm and 1pm. There is one straw for Roy Hodgson to clutch: in 2010 German physics lecturer Metin Tolan devised a formula that predicted glory for his countrymen. Happily he was proved 'falsch'.

:: The animal oracle

Paul the Octopus sadly died in 2010

Perhaps Mr Tolan should have visited the Sea Life Centre in Oberhausen. It was here Paul the Octopus was presented with two boxes, each emblazoned with a nation's flag, during the 2010 World Cup.

Paul chose the winner in all seven of Germany's matches and also called a Spain win over Holland in the final. A parakeet and a fish named Koi Hodgson are among those who have tried to mimic Paul, but neither have come close to matching his psychic success.

:: The financial institution

Goldman Sachs does not have a great record predicting the outcome

Goldman Sachs has been issuing World Cup predictions since 1998 and say the winners can be pinpointed by examining how countries are performing in the global markets.

This year they reckon Brazil, Germany, Argentina and Spain will make the semi-finals - and have given England a 1.4% chance of lifting the trophy. Thankfully for Rooney and co, their past predictions have been way off target - guessing none of the semi-finalists in 2002 and just 50% in the last two tournaments.

:: The weather forecasters

Roy Hodgson has already expressed concerns about the heat

Meteorologists predicted World Cup 'El' for England long before Hawking and Goldman Sachs piped up. Climate scientists at the University of Reading have said there is a 60% chance of El Nino conditions in Brazil this summer. This would "increase the risk of uncomfortably hot and dry conditions" during the tournament - a blow to European teams used to playing in cooler conditions.

:: The form book

The 1962 World Cup, won in South America by Brazil

Spain are the reigning champions but, remarkably, no European team has ever won football's greatest prize on South American soil. In fact, on the seven occasions the World Cup has been played in the Americas, either Brazil, Argentina or Uruguay have triumphed. England have never passed the quarter-final stage in those years.

:: The bookies

You probably won't see a bookie on a Brazilian bike this summer

Brazil has its own version of the 'Boris Bike' - and our guess is you won't see a bookie on one. So your best bet might be checking the latest odds. Unsurprisingly, Brazil are the favourites at 3/1, followed by Argentina at 9/2 and Spain at 11/2. England sit alongside Portugal, Holland, Colombia and Italy on 25/1.

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Rolf Harris' Daughter 'Smashed Up Paintings'

By Nick Pisa, Sky News Reporter, at Southwark Crown Court

Entertainer Rolf Harris' daughter smashed up his paintings and banged her head against a wall after she found out he had been accused of assaulting a friend of hers, his trial has heard.

The 84-year-old, who denies 12 counts of indecent assault, made the revelations in cross-examination as the case approached its third week.

He told the trial he only began a physical relationship with the main complainant in the case when she was 18 years old but she claims he abused her when she was just 13.

Harris told the jury of six men and six women at Southwark Crown Court about the furious reaction of his daughter, Bindi, when she heard about the abuse allegations.

Prosecutor Sasha Wass QC asked him: "Bindi was beside herself?"

He replied:"I suppose so, yes."

Ms Wass said: "She (Bindi) was in such a state she was banging her head against a wall."

During a second day of cross-examination, Harris repeatedly denied the allegations against him, describing them as ''lies''.

He denied his claim the woman had asked him for £25,000 was an "attempt to discredit" her and her family.

He also denied trying to "vilify" alleged victim Tonya Lee.

Harris' daughter and wife have accompanied him throughout the trial

Ms Lee, who has waived the usual right to anonymity given to alleged sex offence victims, claims Harris touched her when she travelled to Britain from Australia for a tour in 1986.

Harris told the court he accused her of making up the allegation because her story "didn't hold water".

He denied ever meeting Ms Lee and when asked why she would have lied, he said: "It would only be to support her story. I can't imagine why she would say that but it's all lies."

Harris also dismissed another allegation, made by a woman who claims he groped her as she got an autograph from the star at a community centre in Portsmouth, telling the court he was "never there".

He said he would not have needed to tour the country to promote his track Two Little Boys because it was an "instant hit and hardly needed any promotion".

He also said he would not have performed the song unaccompanied.

The star told the court: "She's lying. I wasn't there. She must be making it up."

Harris was asked about another claim, made by a woman who has appeared as a witness, but whose allegations do not relate to a charge, in which he is said to have told her he wanted to be the first person to give her a "tongue kiss".

He said: "I would never say that. I hate that expression."

The star also dismissed another allegation by a separate witness who says he groped her and said he had "no recollection" of meeting another witness who has told the court he assaulted her in Malta.

Harris, of Bray, Berkshire, denies indecently assaulting four women aged between seven or eight years old and 19 years old between 1968 and 1986.

The trial continues.

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Rolf Harris 'Disguised Dark Side Of His Character'

By Nick Pisa at Southwark Crown Court

Rolf Harris used "bear hugs" to hide his serial sexual abuse and is good at disguising a "dark side" of his character, a court has heard.

The TV entertainer, who denies 12 charges of indecent assault, is facing questions from prosecutor Sasha Wass QC.

She told the jury all the alleged victims describe a similar scenario: bear hugs then sexual molestation.

The prosecutor claimed Harris committed child abuse in conducting an affair with his daughter's best friend. She added that he "psychologically dominated that girl" so she kept it secret.

But the 84-year-old said the relationship was based on a "mutual feeling of warmth and affection" - and claimed the alleged victim initiated the affair.

Harris added that he "laughed in disbelief" when he discovered the alleged victim had been "terrified" of him.

He recalled her coming to his house in Bray, Berkshire, to have sex, telling the jury that he took her a cup of tea and she started flirting with him, kicking off her duvet to reveal her bare legs.

Rolf Harris arrives at Southwark Crown Court with his family

Harris said they would "whisper sweet nothings" to each other, but under continued cross examination he admitted he could not remember what was said.

He told Southwark Crown Court he had worked with the NSPCC on child abuse issues, making a campaign video for them.

But Ms Wass described him as a "brilliant and polished performer".

The prosecutor said the trial was "not a talent show" as she recalled how he had entertained the court by singing during his earlier evidence.

Jurors were told: "Underneath the friendly and loveable exterior there is a darker side."

Accused of being "pretty good" at hiding this dark side, Harris replied: "I suppose so."

Ms Wass said the court had to discover "how dark that dark side is".

The jury has been told how his daughter's friend alleges she was molested by Harris twice during a family holiday in Hawaii in 1978.

Harris denies 12 counts of indecent assault on four women

The defendant said it was "possible" he had admired her body sexually during the holiday but insisted "nothing happened" during that period and he had "no recollection" of the other allegations.

Harris explained how he was on a ship exhibiting his paintings when police searched his home.

Under further cross examination Ms Wass said his relationship with the main complainant was not "deep and meaningful" to which Harris replied: "I don't suppose it was."

Ms Wass said: "You didn't even talk to the girl. It was a pretty cynical sexual relationship, no tenderness, no love, no friendship."

Harris replied: "I thought there was."

The prosecutor asked why he initially mentioned two occasions when he had sex with his daughter's friend, but later talked of four.

Harris said there were two "attractive young ladies" in the police interview room which prevented him from going into detail when questioned.

He denies 12 counts of indecent assault on four females aged between seven or eight and 19 between 1968 and 1986.

The trial continues on Thursday.

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Racism Poll: Almost A Third Of Brits Prejudiced

By Becky Johnson, Sky News Correspondent

Almost a third of British people admit to being racially prejudiced, according to a survey.

Researchers say it suggests people are as racist as they were 30 years ago.

The poll on British Social Attitudes found 30% of Britons describe themselves as either "very" or "a little" prejudiced against people of other races.

The findings of the attitudes survey have been described as "troubling"

Among people over the age of 55 a higher percentage of people, 36%, consider themselves to hold some prejudice, while among those aged between 17 and 34 the figure is much lower, 25%.

The survey found variation in attitudes between geographical locations.

People in the West Midlands are most likely to describe themselves as racially prejudiced, with 35% admitting to some prejudice.

In London, just 16% of people admit to prejudice against people of other races.

Dave Stokes, from Birmingham, told Sky News: "Due to all the immigration that's going on at the moment I think people are worried about losing their homes and losing their jobs... I think it does turn people against foreigners."

Teacher Jonny Ivey said: "I work in a school in a white working class area where there is very overt racism in a part of east Birmingham."

He told Sky News he would not consider himself to be racially prejudiced, but added: "the tolerant society we live in doesn't allow people to air maybe more perceived racist views they have.

"When people get an anonymous chance to have a vote they will chose maybe more right wing views."

However, Sernjeet Seera, who is British Asian, said: "I've lived here all my life and I was born and bred in Birmingham and I've never seen it personally myself, any racism.

"And I work in a multicultural school and I've never seen it there either. They all get on, they all mix and mingle together."

The study, carried out by the independent organisation NatCen Social Research, found more than nine in 10 of those who admit to some level of racial prejudice would also like to see a reduction in the current level of immigration, in comparison to around seven in 10 who say they are not prejudiced at all.

Penny Young, the organisation's chief executive, said: "The findings are troubling.

"Levels of racial prejudice declined steadily throughout the nineties, but have been on the rise again during the first decade of this century.

"This bucks the trend of a more socially liberal and tolerant Britain.

"Our local and national leaders need to understand and respond to increased levels of racial prejudice if we are to build strong local communities."

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One Direction Call In Lawyers Over 'Joint' Video

One Direction's lawyers are examining a newly emerged video which appears to show two of the band members joking about smoking an "illegal substance" during their South America tour.

A spokesman for the group told Sky News: "The matter is now in the hands of our lawyers."

No other comment was offered and there has been no official confirmation that the boys who appear in the video are indeed members of the British band.

One Direction is one of the biggest boy bands on the planet

The video obtained by MailOnline appears to show band members Zayn Malik, 21, and Louis Tomlinson, 22, sharing a rolled up cigarette in the back of a car as they are driven through Peru.

Tomlinson, who appears to be filming but never appears on camera, can be heard saying: "So here we are, leaving Peru. Joint lit. Happy days!"

Smoke then clouds the shot as the voice says: "I'm trying to blow it to the camera."

The video shows the cigarette being passed to Malik who begins smoking.

Malik meeting fans in Leicester Square last year

At one point Tomlinson, who narrates the five-minute video, asks him: "What do you think about that kind of content?"

Malik replies: "Very controversial".

It is not clear from the video what is inside the cigarette, although the pair can be heard joking about smoking "illegal substances" as a policeman drives past on a motorbike.

As the camera pans to the policeman, the voice behind the camera laughs: "One nil b***h! Look at this b***h! He's having a look. He's thinking, 'I'm sure I can smell an illegal substance in there'. And he's hit the nail on the head."

The video also appears to show Malik and Tomlinson criticising the band's latest book, describing it as "so girly and not cool".

According to the MailOnline, the film was shot on April 27 while the band were en route to perform a concert in Peru's capital Lima.

It appeared that Tomlinson filmed the video

Fellow band members Harry Styles, Liam Payne, and Niall Horan are not seen in the film and are thought to have been travelling in another car.

The film has emerged as the group gear up for the first UK date of their Where We Are Tour.

They are due to play at the Stadium of Light in Sunderland later on Wednesday evening.

Since their debut on ITV's X Factor talent show One Direction has become one of the biggest boy bands on the planet.

Earlier this month they were named the fourth wealthiest musicians in the Sunday Times Rich List with an estimated fortune of £14m each and a combined wealth of £70m.

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Leeds Man Hurt In Bungalow Explosion

A man has been injured in a suspected gas explosion that blew the roof off a bungalow in Leeds.

A gas blast is suspected

The West Yorkshire Fire and Rescue Service was called to the property in Tingley following the explosion just before 9.30am.

The man walked out of the house and was taken to hospital after suffering smoke inhalation and burns to his arms. No-one else was injred.

Three neighbouring homes were evacuated after the suspected gas blast and a structural engineer has been called to assess the damage.

Emergency rescue services were soon at the scene

Locals reported seeing flames coming through the roof and pictures of the aftermath showed smoke continuing to rise from the property.

Neighbouring homes were evacuated

One onlooker said: "The bungalow looks a mess and the damage is pretty bad.

"The brickwork has been exposed and the timbers are all charred inside. But we think there's no fatalities."

The timbers underneath the roof were exposed and charred

The residential street was cordoned off while the emergency services carried out their work.

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Political Battle Over Who Can Make Scots Richer

Scots Independence: Rest Of UK Firms Want Union

Updated: 4:40am UK, Wednesday 07 May 2014

By Niall Paterson, Sky News Correspondent

An overwhelming majority of businesses in England, Wales and Northern Ireland say that Scotland should remain part of the UK, according to a survey for the British Chambers of Commerce.

The BCC, which itself remains impartial in the debate, surveyed close to 2,500 of its members, and whilst 11% said Scotland should vote yes, some 85% preferred the union to remain.

Two thirds said no new opportunities would arise in the event of a 'Yes' vote, and just over a third, 35%, said a formal currency union, a key ambition of the SNP-led campaign, would be in the best interests of the UK as a whole.

The BCC's director general John Longworth said: "Business opinion across the United Kingdom on the Scottish independence debate is far from unanimous. That's only logical, as businesses have different interests, and different views on our complex history of economic and political union.

"In the event of a 'Yes' vote, cross-border trading and currency arrangements loom large in businesses' thinking. If Scotland votes 'no', constitutional questions remain around the devolution of power and the distribution of public funding between nations."

The poll has been seized upon by those campaigning for a 'No' vote, as with a recent report from credit ratings agency Moody's which said an independent Scotland would find itself downgraded.

Edinburgh South Labour MP and Shadow Business Minister Ian Murray said: "This survey confirms what some of Scotland's largest employers like Standard Life, RBS and Shell have made clear. Breaking up the UK would create huge risks and cost jobs in Scotland.

"The majority of businesses in the rest of the UK do not support a currency union. It would be bad for Scotland and bad for the rest of the UK. That's why it is off the table.

"What people in Scotland need from the nationalists is some honesty about what would replace the pound if we leave the UK. Would we rush to adopt the euro or would we set up a separate Scottish currency? The idea that Scots can go to the polls blind on this fundamental issue isn't credible."

Yet there is hardly unanimity north of the border either - nor an overwhelming sense of fear that cross-border trade would come to a juddering halt.

Many here expect business to continue if not entirely as normal then with significant benefits in the longer term.

Tony Banks, chairman of Business for Scotland, a pro-independence campaign group with close to two thousand members said: "This is a survey that of course doesn't include Scottish businesses who have a rather different perception.

"Scottish independence offers real advantages to everyone, not only in Scotland but across our shared markets in Europe - that independence doesn't equal isolation and businesses here are well aware of the opportunities they can gain.

"Even the Scottish Chambers of Commerce survey issued last week conceded that 53% of its members see the opportunities that independence could bring."

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Flooding Threatened As Heavy Rain Forecast

Parts of Britain have been warned to brace for flash flooding over the next 48 hours.

The Met Office has issued a yellow "be aware" warning across the East of England, with persistent rain - heavy at times - threatening localised flooding and travel disruption.

The areas worst-affected by the wet weather are expected to be Lincolnshire, South Yorkshire and the Humber where up to 70mm of rain could fall.

A yellow weather warning of rain has been issued for the east of England

The Environment Agency (EA) also warned of a flood risk in the east, mainly from surface water and low-lying rivers.

Sky Weather Presenter Jo Wheeler said: "Eastern parts of the country will see some significant rainfall over the next 24 hours or so, with Lincolnshire, South Yorkshire and the Humber potentially seeing  70mm of rain.

"This would be enough to cause some unpleasant driving conditions and some flash flooding.

"The rain will not be exclusive to the east, but heaviest there whilst much of the country will see some wet weather at times."

The EA has issued 10 low-level flood alerts in the South East and the Midlands, mainly warning of groundwater flooding close to rivers.

The agency said: "There may be some flooding of low-lying land and roads, some disruption to travel and possibly flooding to individual properties."

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Tattoo Parlours Buzz With High Street Growth

Tattoo parlours have become the big growth sector in Britain's town centres, according to research data.

The Local Data Company (LDC) said that as of last week, the number of shops ringing to the buzz of the tattoo gun has reached a total of 1,014 in the top 650 British towns.

That figure was up more than 4.5% from its 2013 research, which showed there were 970 parlours in the town centres.

LDC said that between 2009 and 2013, the growth rate of tattoo parlours in the town centres topped 141%.

In comparison, it said in the same period charity shops expanded by a rate of 36%, to 5,010 outlets.

Betting shops increased by 32% to 2,943 and chain coffee stores by 29% to 1,981.

The number of people going under the needle in the name of art has increased significantly in the last two decades.

Fulham Tattoo Centre artist Steli Pop, who works at a parlour established more than 30 years ago, told Sky News: "Celebrities and footballers have helped attract people.

"It doesn't matter so much about your social place now, whereas years ago it was only the bad and sailors who got them."

Skin art has also become a favourite pursuit for some urban-dwelling, counter-culture 'hipsters'.

But the growth in parlours may be halted with a return to health of the high street.

Footballers, and celebrities like Cheryl Cole, have helped boost popularity

LDC director Matthew Hopkinson told Sky News: "My views are that the rise in these business types reflects the significant changes taking place where large retailers such as Woolworths with over 800 shops have left the high street and others such as Arcadia and many others are reducing the number of shops they have.

"This results in a large oversupply of empty shops as reflected by the rise in vacancy rates, which results in greater opportunity at much lower costs for these alternative high street uses to occupy town centres and at a significantly cheaper cost than pre-2008.

Mr Hopkinson added: "An unknown question going forward is that if and when there is a business rates revaluation and stock levels reduce as shops are made into alternative uses then the profitability and therefore occupancy levels of these business types might change rapidly."

Mr Pop added: "Eventually the lower end of the market could struggle.

"Some of them don't make a lot of money, they aren't good artists or businesspeople and are notorious for copying designs straight off the internet."

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Harris 'Had Sexual Affair' With Complainant

By Nick Pisa, Sky News Reporter

Entertainer Rolf Harris has admitted in court that he is a "touchy feely sort of person" but denied ever indecently assaulting women.

Harris, 84, was giving evidence at his trial where he is accused of targeting four victims including a friend of his daughter Bindi.

Dressed in a dark pin-striped suit and tie he was specifically asked about the allegation involving his daughter's friend during a family holiday in 1978.

Southwark Crown Court heard the woman was 13 when Harris allegedly assaulted her in a Hawaii hotel room after she took a shower, and on a beach.

She has told the court she was assaulted by Harris in Australia later on the same holiday, claiming he touched her as she lay in bed next to a sleeping Bindi.

Harris said: "I have no recollection of that," adding it "never happened".

The entertainer denies 12 counts of indecent assault

His defence barrister Sonia Woodley asked him if he had ever hugged the woman to which he replied: "Yes, I have hugged her. I'm a touchy feely sort of person. I normally hug anyone that I get on on with."

When asked by Ms Woodley if he had ever done it in a sexual way he replied: "No," before going on to deny assaulting the woman after she stepped out of the shower.

Harris said his relationship with the alleged victim "changed slowly" and "became physical" when she turned 18 years old.

Harris admitted he felt "highly embarrassed" by it as well as having a "guilty feeling".

He recalled going into the spare room of his house in Bray to take the alleged victim a cup of tea when she "kicked off the duvet to reveal her bare legs".

The court heard about his professional career and portrait of the Queen

He added: "She grabbed my elbow and seemed to indicate she wanted me to sit on the bed, which I did. It seemed to me she was being very flirtatious. 

"It was very flattering, this young lady showing an interest in me."

Harris, who was 53 at the time, said he "touched the outside of her leg" before leaving the room.

He added: "This is all highly embarrassing. I was a married man, she was much younger. I shouldn't have been doing it."

When asked by Ms Woodley if he thought the victim was a "willing participant" he replied "Yes."

He went on to say that a "sexual chemistry" developed between the pair.

Harris insisted she was "willing" and added: "It was illicit, I had a guilty feeling. I was a married man, it was...she was Bindi's friend."

Harris also said the couple had oral sex in a secluded wood near his home and again said the woman had "started it" adding "she instigated the whole thing". 

Harris denies 12 counts of assaulting four women aged between seven or eight and 19 years old between 1968 and 1986.

Earlier he told the court about his showbusiness and singing career, at one point briefly singing his hit song Jake The Peg.

There was laughter in court as he imitated the noise of his trademark "wobble board" and moved his arms to show the technique.

Ms Woodley told the jury Harris had two paintings exhibited at the Royal Academy and had painted a portrait of the Queen.

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Lloyds Banking Group Confirms Float Of TSB

Lloyds Banking Group has confirmed a decision to sell around 25% of retail lender TSB, enticing investors with the offer of free shares.

The flotation is expected next month on the London Stock Exchange, following publication of a prospectus mid-month.

On Monday, Sky News City Editor Mark Kleinman revealed details of a plan to lure investors with an offer of free shares as part of the £1.5bn initial public offering (IPO).

Shareholdings of up to £2,000 must be held for 12 months after the float to be eligible for the 5% additional free shares.

The long-awaited sale is part of a mandated divestment programme following its taxpayer-backed bailout of more than £20bn following the global financial crisis.

Lloyds CEO Antonio Horta-Osorio said TSB would offer more competition

TSB, which was relaunched as a standalone brand last autumn and operates 631 branches, has a growth strategy focusing on consumers and small business customers.

It currently employs 8,000 and is responsible for £22bn invested on behalf of 4.5 million customers.

It is marketing itself on a history dating back more than 200 years and intends to lure customers away from bigger rivals that operate risky - but profitable - investment banking arms.

TSB will be taken fully public by the end of 2015 as part of the European Commission mandate on state-aid to companies.

Lloyds still owns the Halifax and Bank of Scotland and the banking group remains 25% owned by the British taxpayer.

Lloyds chief executive Antonio Horta-Osorio said: "The decision to proceed with an initial public offering of TSB is an important further step for the group as we act to meet our commitments to the European Commission.

"TSB has a national network of branches, a strong balance sheet and significant economic protection against legacy issues.

"It is already operating on the UK high street and is proving to be a strong and effective challenger, further enhancing competition in the UK banking sector."

It was originally planned to sell more than 630 TSB branches to the Co-operative Bank, until a £1.5bn capital black hole was discovered in the mutual's books.

IMF boss Christine Lagarde said the global banking sector needs to do more

The floating bank's chief executive Paul Pester said: "Today is a significant milestone on our journey to create a major new competitive force in UK banking."

TSB - originally standing for Trustees Savings Bank - dates back to 1810 when Reverend Henry Duncan created a community-based local bank.

Meanwhile, International Monetary Fund managing director Christine Lagarde, speaking at a conference in London, said the global banking system is slowly adapting to modern realities, amid sector "push back".

She said: "We're moving forward with stronger capital lending and liquidity requirements. It should certainly make the system safer, sounder and hopefully more service-oriented.

"The bad new is that progress is still much too slow and the finish line is still too far off.

"Some of this arises for the complexity of the task at hand, yet we must acknowledge that it also stems from fierce industry 'push back' and from the fatigue that is bound to set in at this point in the race."

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Mortgage Approvals Decline For Third Month

High street banks have reduced the number of mortgage approvals for the third month in a row, despite their total value reaching a six-year high.

The British Bankers' Association (BBA) said £12.2bn in loans were activated in April.

The total was 52% higher than the same month last year and the strongest monthly figure since August 2008.

But the increased value of mortgages, combined with the reduced volume of loans gives a "mixed" picture, according to the BBA.

It said more than 42,170 home loan approvals, valued at £6.9bn, were approved - the lowest volume for eight months.

Mortgage approvals have continued to decline since 48,000 were recorded in January.

However, when seen against the April 2013 approvals, it remains 25% higher.

Property schemes such as Help to Buy were rolled out in the latter part of last year, boosting first-time buyer access to mortgages.

The BBA said borrowing for businesses also contracted by 1.9% in the year to April.

But that compared to a reduction in borrowing of 5.1% in the 12 months to April 2013.

BBA chief economist Richard Woolhouse said: "Our figures show the housing market is mixed.

"The value of mortgages taken out in April was the highest for six years.

"The amount of borrowing is, however, still well below the levels we were seeing before the financial crisis."

The easing mortgage approval rate comes after the Mortgage Market Review (MMR) was introduced last month, designed to better calculate applicants' ability to pay if loan rates rise in the future.

Surging home prices - 8% across the UK and 17% in London - have also pushed a belief that the Bank of England may take other measures to calm the market.

The BBA report also said that £8.1bn was put on credit card debt in April, 4.9% more than in the same month a year earlier.

It said: "Higher loan demand continues to reflect rising consumer confidence and an improving economy."

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'Clegg Must Go Now' Say Senior Lib Dems

A petition calling for Nick Clegg's resignation as the leader of the Liberal Democrats has gathered steam, with hundreds of party members calling for him to step down.

The Deputy Prime Minister has insisted he will not quit despite more than 250 of the party's councillors losing their seats in local elections in England.

The Liberal Democrats are at risk of losing every one of their 11 MEPs when European election results are declared on Monday.

Former Lib Dem MP Lembit Opik told Sky News that based on this week's local election drubbing, Mr Clegg had to quit.

"We lost roughly 40% of the councillors who were defending their seats ... Nick Clegg, whatever he thinks of himself, in the collective interests he has to go," he said.

But despite the poor local election results, Lib Dem Party President Tim Farron has backed his embattled leader.

Asked by Sky's Dermot Murnaghan whether Mr Clegg was the right person to lead the Liberal Democrats into the 2015 General Election, Mr Farron replied: "Yes, of course."

"Nick Clegg should undoubtedly stay and the Liberal Democrats should stay the course in government," he said.

"It's important we stand together as a party, behind Nick Clegg's leadership, and go forward for 2015."

The former Lib Dem leader Lord Ashdown also spoke out in support of Mr Clegg, labelling calls for him to step down "silly".

But Mr Clegg has insisted he will 'absolutely not' resign

"It's frankly one of the silliest ideas I've ever heard that we should waste summer in an unnecessary and divisive leadership campaign," he told Sky News.

"We should get out on the streets with the message Nick has given us and campaign for the general election."

MP John Pugh, who described the local election defeats as "abysmal", said the party's "high command" was in danger of seeming like "Generals at the Somme".

Jackie Porter, who is set to fight the Tory-held target seat of Winchester in next May's general election, said the party was "not going forward with a clear strategy".

The county councillor said the party's achievements were overshadowed because Mr Clegg "allowed himself to be portrayed as just another pea out of the same pod" as David Cameron and Ed Miliband.

In order to win back support, the party needed to demonstrate it was different, she suggested.

More than 200 grassroots members have signed up to the online LibDems4Change campaign which has published an open letter to Mr Clegg.

It says: "We consider it vital that at the 2015 General Election the Party should be led by someone who will receive a fair hearing about our achievements and ambitions for the future.

"It is clear to us that this person is not you, as the loss of so many of our hard-working councillors highlights.

"You have fulfilled a range of objectives in Government, but we now believe that progress will be best achieved under a new leader.

"We therefore ask that you stand down, allowing the membership to select your successor this summer."

Under existing rules, if Mr Clegg refuses to quit, a leadership contest would be triggered if 75 local party associations formally demand one or a majority of the parliamentary party approves a no confidence motion.

Mr Clegg said on Saturday he would "absolutely not" resign, and insisted the Lib Dems were still succeeding where they focused on their achievements in coalition.

He blamed a wider "anti-politics mood" but his party has seen its opinion poll ratings at consistently low levels since joining the Conservative-led coalition.

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Big Tweet For Missing Children Gets Under Way

By Gerard Tubb, Sky News Correspondent

Campaigners are hoping to reunite missing children with their families by recruiting social media users to join a day of action today.

It is estimated that 140,000 children and young people go missing in the UK every year according to the charity Missing People.

The Big Tweet for Missing Children will see a different child's appeal and photograph posted on Twitter every 30 minutes today under the hashtag #bigtweet.

With the help of TV personalities including Stephen Fry, organisers hope to improve on the 58,000 retweets they achieved last year which are believed to have resulted in at least two missing children being found.

An extension to the Child Rescue Alert system has also become operational, using text and email to send messages about missing children whose lives are believed to be at immediate risk.

The Child Exploitation and Online Protection Centre (CEOP) which issues six to eight alerts each year, hopes a million people will sign up though its website to receive them.

Coral Jones with her daughter April who was abducted in 2012

The new service has been welcomed by Coral Jones, the mother of April Jones whose abduction from her home town of Machynlleth, Powys, in October 2012 triggered one of the alerts.

"You don't know what's around the corner, it could be your child next," she said.

"I think everyone should sign up because you never know what will happen where you are."

Only a small fraction of missing children are known to have been taken by someone, with police statistics from 2011/12 showing 675 children and young people were the victim of an abduction or attempted abduction.

In most cases the perpetrator was a parent (17%) or someone the youngster knew but was not related to (35%), but 42% of incidents involved strangers.

Kevin Gosden, from Doncaster, whose son Andrew went missing in 2007 aged 14 and has never been seen since, is encouraging people to support both campaigns, even if it does not result in him finding Andrew.

"If it does something to raise awareness of this issue, and it gets families to think about that and talk with their kids to be sure that they know the number for Missing People - 116 000 - then I think that also is a good thing," he said.

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Sex Offenders Face Lie Detector Tests

By Afua Hirsch, Social Affairs and Education Editor

A thousand of the UK's most high-risk sex offenders are to undergo mandatory lie detector tests, under new measures announced by the ministry for justice today.

Probation officers are being trained in how to use polygraph examiners as part of new measures to toughen up the monitoring of convicted paedophiles and reduce the danger they pose to the public.

Don Grubin, Professor of Forensic Psychiatry at Newcastle University, whose company Behavioural Measures is leading the training, said: "The aim of the testing is to assist offender managers in supervising the offenders.

Dr Grubin says the tests will help the monitoring of offenders

"There is not a specific crime you are investigating, not a specific security breach, it's much more of a general tool to look at how they are behaving under supervision and to see whether there is a need to intervene."

"It's important to emphasise that nobody will be recalled because they failed a test ... polygraph testing both facilitates the disclosure of information and alerts offender managers to possible deception, allowing them to work with offenders in a more focused way."

A group of seven officers will administer the tests to sex offenders deemed at high risk of reoffending or convicted of the most serious offences, in a 12-week training programme administered by polygraph experts from the US, where use of the devices is much more common.

As well as undergoing lie detector tests every six months, the Government has also announced plans to use satellite tags and controversial libido suppressant drugs, also known as "chemical castration".

Sex offenders already have to abide by licence conditions, including signing onto the sex offenders register, adhering to exclusion zones, curfews, internet restrictions and non-contact orders.

Polygraph tests will be used regularly on high-risk sex offenders

But there are hopes that the addition of lie detector tests will help probation services better monitor the risk of reoffending.

Justice minister Jeremy Wright said: "We are determined that Britain has one of hte toughest regimes in the world for managing sex offenders, to stop reoffending and to protect victims."

According to the most recent figures there are 43,664 registered sex offenders in the UK. Reoffending rates have been a persistent cause for concern, with 13% of adults convicted of a sex offence committing further offences.

This is the first time that mandatory lie detector testing will be used by probation services across the UK, but the Government says that a pilot conducted between 2009 and 2011 in the East and West Midlands found that those who took the tests were twice as likely to admit having breached the terms of their licence or having thoughts that suggested they continued to pose a risk.

Two police forces are already are also using lie detectors for people arrested on suspicion of indecent images of children.  

But the use of polygraphs remains controversial, with some concerned about the reliability of the devices.

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Bali Murder: Arrest After Briton Found Dead

Police have arrested a construction worker suspected of murdering a British teacher in her rented villa on the holiday island of Bali, an official has said.

The 32-year-old man was arrested in Jakarta after he allegedly robbed and killed 49-year-old Anne Marie Drozdz.

Ms Drozdz was found dead in her villa in the cultural tourism district of Ubud on Thursday afternoon, police said.

She had travelled around the world teaching at international schools and, according to her LinkedIn profile, last worked in Hanoi, Vietnam.

The villa where Ms Drozdz's body was discovered

Her brother Gregory Drozdz said the family was suffering "overwhelming grief" after Ms Drozdz's death.

"We were contacted by the Foreign Office on Friday. They told us it appeared my sister had gone back to her villa in Bali and that there had been some kind of scuffle involving a burglary," he said.

"My brother had only spoken to her by email a few weeks ago and she seemed very happy.

A murder investigation has been launched

"I had sent her birthday greetings for her 49th birthday on April 29.

"It's gut-wrenching. You never expect it's going to happen to you and your family. It has left us raw, bewildered and confused."

Bali police commissioner Refi Pribadi said the suspect had allegedly stolen a mobile phone, a motorcycle and 20 million rupiah (£1,500) from Ms Drozdz.

Ms Drozdz had been renting the villa since May 17, reports say

"We arrested him on charges of robbery and murder," he said.

Ms Drozdz was found by the owner of the villa lying dead on the floor with a black cloth over her face, police said earlier.

Forensics experts said that the woman's body showed bruises on the neck and around the mouth.

A British embassy spokesman in Jakarta confirmed the death, adding that embassy officials were "ready to provide assistance to the family" and that they were cooperating with local authorities.

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Lost Yachtsman Was Fulfilling Lifelong Dream

The familiies of lost Cheeki Rafiki sailors Paul Goslin and James Male have paid tribute to their loved ones.

James Male's family say sailing was a way of life he really loved

Mr Goslin, 56, from West Camel, Somerset, and Mr Male, 23, from Southampton, were on the yacht with Andrew Bridge, 22, and Steve Warren, 52, when it went missing enroute from Antigua to the UK on May 15.

The upturned 40ft yacht was found by the US Navy on Friday 1,000 miles from the Massachusetts coast, with no signs of life and its life raft still stored on board.

In a statement issued through the Foreign Office, the Goslin family said: "As you can imagine we were deeply saddened by the news on Friday night and are struggling to come to terms with the fact that Paul, our wonderful husband, son, father, grandfather, won't be found alive and returned home to us. 

"Paul was deeply loving and exceptionally intelligent and we know will be missed by everyone that knew him.

"Paul had been a passionate sailor for many years and loved everything to do with the water.  He'd been talking about sailing across the Atlantic for many years. 

The overturned hull of Cheeki Rafiki. Pic: US Coast Guard District 1

"We are therefore, trying to take some comfort in the knowledge that he was fulfilling one of his lifelong dreams."

Mr Male's family said in a statement that they were "deeply saddened" by Friday's developments.

They added: "James was a passionate sailor, surfer, kayaker and all round water sport enthusiast as well as being a keen snowboarder and outdoor instructor. 

"He loved being in the outdoors and on the water teaching new skills to people. We must therefore try to take some comfort in the knowledge that he was doing something he really loved."

The yacht Cheeki Rafiki

Both families thanked all those who had supported them during a difficult week, adding that they had drawn strength from the other families. 

They also thanked those involved in the search "especially the US and Canadian Coast Guards, the US Navy, the RAF, the merchant vessels and smaller yachts sailing through the area". 

The UK Government, especially the Foreign Office, was also praised for support that was "second to none".

Thanking the media as well, each family asked for the space and time to remember Paul and James.

Andrew Bridge was the skipper of Cheeki Rafiki

The family of the yacht skipper, Mr Bridge, from Farnham, Surrey, also thanked the search teams and paid tribute to the experienced sailor.

In a statement yesterday they said: "Andrew will be dearly missed by everyone who knew him. Our thoughts and condolences go out to the families of the rest of the crew on the Cheeki Rafiki.

The family of Mr Warren, from Bridgwater, Somerset, said yesterday: "From the beginning we, together with the other families involved, have continued to hold out hope that he would be found alive. The US Coast Guard have led an exceptional search.

"This is now an incredibly difficult time for all the family."

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