Sir Mervyn King warns against 'demonising' bankers
The outgoing governor of the Bank of England has warned against blaming individuals for the financial crash and recession.
The outgoing governor of the Bank of England has warned against blaming individuals for the financial crash and recession.
The Tory grandee Lord Howe has accused the Prime Minister of 'losing control' of his party as divisions over Europe come to the fore.
UKIP has recorded its highest ever vote share on 19%, in a ComRes poll for today's The Independent on Sunday, and the Sunday Mirror.
David Cameron has said that he still sees the coalition as the best way forward, but if that was not the case, his party would "have to "face the new circumstances".
The Prime Minster also conceded that "sometimes... disagreements mean you can't take actions in the areas you want to".
– Prime Minister David CameronI'm here to deliver good government for the country, and we've still got important work to do - paying down the deficit, turning round the economy, and all the rest of it.
What matters to me, though, is can we get things done? Can we improve the state of the country? Can we fulfil our manifesto? The best way to do that is to continue with the coalition, but if that wasn't the case then we'd have to face the new circumstances in whatever way we should.
He added that he still believes the coalition has delivered "radical" changes for the country.
A Downing Street spokesman said "The coalition will continue until 2015."
David Cameron has hinted that he could attempt to govern without the Liberal Democrats if disputes within the coalition made it impossible to continue.
The Prime Minister said that if difficulties between his Conservatives and Nick Clegg's Lib Dems meant the Government could not get things done "we'd have to face the new circumstances in whatever way we should".
The comments came as the Tory leadership attempted to defuse rows over claims that a senior figure called grassroots activists "swivel-eyed loons", plans to allow gay marriages and the party's policy on Europe.
In an interview with Total Politics magazine, Mr Cameron said: "The coalition has its frustrations, there's no doubt about it, and we have disagreements."
Tory activists have attacked the Prime Minister's stance on gay marriage today, calling on David Cameron to drop the legislation.
The Marriage (Same Sex Couples) Bill returns to the Commons tomorrow for two days of debate, with many Tory MPs expected to oppose it on a free vote.
Mr Cameron is also facing more trouble over Europe, accused by a former Foreign Secretary of "running scared" of his backbenchers.
ITV News correspondent Romilly Weeks reports:
The Health Secretary has said he backed gay marriage today after Tory activists attacked David Cameron's stance on the issue.
Jeremy Hunt told BBC1's Andrew Marr Show: "I personally support it, I support it because I believe in the institution of marriage and I think we should be encouraging people to make a lifelong commitment to each other. I think society is stronger if you do that.
"I think if gay people want to do that and if the church is willing to conduct that ceremony we shouldn't stand in their way."
He added: "It's one of those issues of conscience that is not really about party, I think there are people of all parties that find this a very difficult issue. But I think it is one we are right to surface and to have a proper debate about."
Tory activists have attacked David Cameron's support for gay marriage, claiming it had made winning the next general election "virtually possible".
In a letter to the Prime Minister, organised by Grassroots Conservative group, chairman Bob Woollard said:
The Prime Minister's bizarre drive to ram this legislation through Parliament, without any democratic mandate and without the support of party members has been a disaster and has driven thousands of voters to Ukip.
The marriage-based family is at the heart of Conservatism. This dilution and unraveling of marriage has demotivated many ordinary loyal Conservative Party members and has undermined their years of hard work for something they believed in. It makes winning the next election virtually impossible.
For the sake of our children they should also strengthen conventional marriage.
Read more: Tory activists warn PM over stance on gay marriage
Speaker John Bercow is among MPs who have been pushing for better remuneration, warning that the Commons must attract people from all backgrounds.
Mr Bercow's comments follow an Independent Parliamentary Standards Authority (Ipsa) survey which found politicians on average believed they should be paid £86,000 rather than £66,000, with some demanding more than £100,000.
Politicians should not get huge pay hikes when public sector workers are facing pay cuts, the chief executive of the TaxPayers' Alliances said today, after it was announced that MPs could be in line for a dramatic pay rise of up to £20,000. Matthew Sinclair said:
MPs are already very well paid, and have other perks like gold-plated pensions that most taxpayers could never afford for themselves.
There can't be one rule for MPs and another for the rest of the country. If politicians accept this rise it will send out completely the wrong message about pay restraint from the heart of Westminster.
The outgoing governor of the Bank of England has warned against blaming individuals for the financial crash and recession.
Read the full story
The Tory grandee Lord Howe has accused the Prime Minister of 'losing control' of his party as divisions over Europe come to the fore.
Read the full storyMPs could have an extra £20,000 added to their salaries to help partly offset curbs to their pensions and personal expenses.
The Independent Parliamentary Standards Authority has been carrying out a fundamental review since taking responsibility for MPs' salaries two years ago.
A survey released by the watchdog in January found politicians on average believed they should be paid £86,000 rather than £66,000 with some demanding more than £100,000.
Ipsa is due to deliver its initial proposals for consultation next month. The main changes will not come into effect until after the general election in 2015.