Brown urges business leaders to back Tobin tax - papers

Gordon Brown will take his radical proposal to tax City trading to Britain's business leaders today, as a survey shows more than half of voters would back the plan if the proceeds went to help the poorest in society.

Speaking at the CBI's annual conference in London, Brown will press for a global levy on financial transactions as one way of restoring the "contract of trust" between banks and the rest of society, reports The Guardian.

The prime minister's renewed commitment to the controversial levy, also known as a Tobin tax, comes as a survey carried out for Oxfam by pollsters YouGov and obtained exclusively by the Guardian, shows 53% of voters are in favour of the idea, with just 28% against.

Even among Conservative voters, 43% back a transaction tax, compared to 39% against. See story...

Government-backed banks raised mortgage rates and introduced stricter lending criteria last week amid concerns that this year's house-price recovery is not sustainable.

Northern Rock, which has boosted lending in recent weeks, increased its market-leading five-year fix for remortgages from 4.99% to 5.39%, while the equivalent deal for homebuyers went up from 4.99% to 5.29%.

Both require a 30% deposit. It also withdrew best-buy three-and four-year fixed-rate deals at 4.39% and 4.79% that were available exclusively via brokers, in an attempt to slow the flow of business. See story...

Calculations from the Organisation for Economic Co-operation & Development (OECD) have uncovered the full scale of the reliance of too-big-to-fail banks on taxpayers.

To become true stand-alone institutions, they would have to raise their core capital ratios above 20pc. Britain's banks are currently operating with ratios of 8%-10%, a level considered by regulators to be conservative. See story...

FLOOD CLAIMS in Cumbria and south Scotland could exceed £100m, according to the Association of British Insurers (ABI).

The ABI says it is too early to assess the total damage bill, but indications suggest insurers have already received up to 1,000 claims, reports the BBC.

People in Cumbria are facing a massive clear-up operation after floods swept across the county, with than 1,300 homes were hit leaving many without power or mains water. See story..

INVESTORS are waiting for Lloyds Banking Group to unveil more details of its record fundraising plans this week.

The bank will make its proposals in front of shareholders on Thursday as part of efforts to avoid the UK government's toxic asset protection scheme (APS), reports the Scotsman.

The group, which is 43% owned by the taxpayer, is raising a record-breaking £13.5bn from shareholders to duck the APS, as well as a debt conversion offer expected to generate £7.5bn. See story..

THE PRICE OF GOLD has reached a new all-time high as concern about the weakening dollar continues.

Gold hit a record of $1,167.35 an ounce, up by about $15 from Friday's closing prices, reports the BBC.

Expectations US interest rates will remain low has put pressure on the dollar, making gold more attractive as an investment. See story..