Key adviser casts doubt over Tory £6bn cuts plans - papers

The man behind the Conservatives' plan to cut £6bn of public spending this year has raised doubts over whether it will be possible to make the full savings as planned by next April.

Sir Peter Gershon, who together with ex-Logica boss Martin Read, helped formulate the spending reductions which the coalition Government announced last month, warned that it would "take some time" to renegotiate contracts - one of the biggest elements of the cuts.

The Treasury has pledged to save some £1.7bn simply by renegotiating existing contracts with suppliers "including immediate negotiations to achieve cost reductions from the major suppliers to government", writes the Telegraph.

But Sir Peter, the efficiency adviser who previously worked for advised Gordon Brown, warned that while some projects could be scrapped now - such as the ID cards - others would take longer. FULL STORY...

Brit Insurance rejects £785m bid from US buyout firm Apollo

Brit Insurance - sponsors of the England cricket team - has rejected a £785m offer from US private equity firm Apollo.

The company's chairman, John Barton, met with Apollo this week after the private equity firm offered £10 a share for the Lloyds of London insurer - a 30% premium to last night's closing price of 729p, writes the Telegraph.

However, yesterday the UK company said the "unsolicited indicative proposal from a private equity firm" had "significantly undervalued the group". FULL STORY...