Half a million in negative equity

28 February 2014 Last updated at 17:14 ET By Brian Milligan Personal Finance Reporter, BBC News

New figures show nearly half a million UK households are still in negative equity - meaning their homes are worth less than the mortgages on them.

In areas of the country where house prices are depressed, negative equity is still a big issue.

In Northern Ireland for example, 68,000 homeowners - or 41% of borrowers- were in negative equity at the end of last year.

In north-east England and Cumbria the figure is 16%.

That is actually worse than six months previously, when the figure was 14%, presumably tracking a further decline in house prices in the region.

Not far behind that is Scotland, where 13% of borrowers are in difficulties.

The figures, produced by the mortgage group HML, are based on data from more than one million home loans.

Continue reading the main story

"Start Quote

I am paying £250 a month extra, which is barely affordable - there's a lot of stress involved"

End Quote Shafiq Caan Homeowner

By contrast, only 1% of borrowers in London find themselves in negative equity, following the surge in the capital's property prices.

Overall just 8% of mortgage holders are now in that position, amounting to 463,000 homeowners, a big improvement on five years ago.

Stress

Negative equity occurs when the price of a property falls so dramatically that it is no longer worth as much as the loan that was taken out on it.

That becomes an issue for the bank or the building society, because they no longer have enough security to cover the loan.

And it becomes a real headache for an owner, because he or she cannot usually sell up without paying back the difference. Often that amounts to tens of thousands of pounds.

Shafiq Caan, for example, bought his house in West Yorkshire near the peak of the market in 2008.

He paid £115,000, with the help of a £95,000 mortgage.

But now that the house is only worth £75,000, he cannot sell it. Unless he pays back the difference of £20,000 to his lender.

So, like thousands of others, he decided to rent the property out.

But since his lender has increased his repayments, the rent he receives does not cover the mortgage.

"I am paying £250 a month extra, which is barely affordable," he told the BBC.

Continue reading the main story

Tips for those in negative equity

• Do not sell unless you have to
• Talk to your lender. They may help you "port" your mortgage
• Consider renting. But beware rules and regulations
• If you fall behind with your mortgage, your home can be repossessed
• Get professional advice, which can be free

"There's a lot of stress involved," he added.

Falling values

Renting a home out is often the only option for those who find themselves trapped by negative equity.

One lettings agent based on Tyneside has experienced something of a boom in the business, as homeowners become accidental landlords.

He estimates that up to 25% of landlords in the area are in that position, having been unable to sell their homes.

Many have been affected by divorce, and planned to sell their home when the value went back up.

"Unfortunately they are still waiting some six years on," says Ajay Jagota, whose KIS agency is based in South Shields.

"If you're in negative equity, I do feel sorry, because it may be a decision that's out of your control," he says.

Property values in north-east England have fallen by 6% since the summer, according to the Land Registry.

And there are many other areas of the country, on Merseyside or in Scotland for example, where prices have remained depressed.

Hometrack reports that homes in 80% of the UK's post code districts are still worth less than at the peak of the market in 2007.

Continue reading the main story

BBC housing calculator

• Let's you see where you can afford to live - and if it would it be cheaper to rent or buy
• Enter how many bedrooms, which end of the market and how much you want to pay each month
• As you move the payment slider, parts of the UK light up to show you where you can afford
• Based on pricing and rental data from residential property analysts Hometrack

Advice

"Negative equity is only a problem if you need to move," says Kate Faulkner, of Propertychecklists.co.uk.

But if you do need to move, some lenders will consider "porting" your mortgage to another property.

The Nationwide, for example, says it will do its best to help.

However, "eligible customers must be in permanent employment, and be able to afford any additional borrowing", it told the BBC.

But Kate Faulkner advises people not to be put off.

"It may well be that they will allow you to take the mortgage with you, and take that loan that you owe to the next property. So it's not disastrous if that happens. The trick is to talk to your lender as early as possible."

The housing charity Shelter also has advice for anyone thinking of selling a home which suffers from negative equity.

Renting your home out is not always an easy option either.

There are more than a hundred rules the property must conform to, and landlords will need electrical checks and gas safety certificates that can cost a few thousand pounds.

All of which will come as little cheer to those, especially in Northern Ireland and the north of England, who are still stuck in negative equity.

They are being told it could take another five years before their properties reach the value they paid for them.

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Nightmares may be 'health warning'

28 February 2014 Last updated at 19:06 ET By James Gallagher Health and science reporter, BBC News

Regular nightmares in childhood may be an early warning sign of psychotic disorders, researchers in the UK warn.

The study, in the journal Sleep, said most children had nightmares, but persistent ones may be a sign of something more serious.

Having night terrors - screaming and thrashing limbs while asleep - also heightened the risk.

The charity YoungMinds said it was an important study which may help people detect early signs of mental illness.

Nearly 6,800 people were followed up to the age of 12.

Parents were regularly asked about any sleep problems in their children and at the end of the study the children were assessed for psychotic experiences such as hallucinations, delusions and thinking their thoughts were being controlled.

Continue reading the main story

Nightmares are relatively common, as are night terrors, it is quite normal, but if they persist then there maybe something more serious about it""

End Quote Prof Dieter Wolke University of Warwick

The study showed that the majority of children had nightmares at some point, but in 37% of cases, parents reported problems with nightmares for several years in succession.

One in 10 of the children had night terrors, generally between the ages of three and seven.

Warning light

The team at the University of Warwick said a long-term problem with nightmares and terrors was linked to a higher risk of mental health problems later.

Around 47 in every 1,000 children has some form of psychotic experience.

However, those having nightmares aged 12 were three-and-a-half times more likely to have problems and the risk was nearly doubled by regular night terrors.

One of the researchers, Prof Dieter Wolke, told the BBC: "Nightmares are relatively common, as are night terrors, it is quite normal, but if they persist then there maybe something more serious about it."

The relationship between sleep problems and psychosis is not clear.

One theory is that bullying or other traumatic events early in life can cause both symptoms.

Or the way some children's brains are wired means the boundaries between what is real and unreal, or sleeping and wakefulness, are less distinct.

It means treating the sleep issues may not prevent psychotic events.

However, nightmares may act as an early warning sign of future, more serious, problems.

Prof Wolke said a regular routine and quality sleep were key to tackling nightmares: "Sleep hygiene is very important, they should have more regular sleep, avoid anxiety-promoting films before bed and not have a computer at night."

Night terrors occur at specific points during sleep and can be managed by briefly waking the child.

Lucie Russell, the director of campaigns at YoungMinds, said: "This is a very important study because anything that we can do to promote early identification of signs of mental illness is vital to help the thousands of children that suffer.

"Early intervention is crucial to help avoid children suffering entrenched mental illness when they reach adulthood."

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Guantanamo Briton faces Syria charge

28 February 2014 Last updated at 20:07 ET

Former Guantanamo Bay detainee Moazzam Begg and a 44-year-old woman have been charged with terror offences related to Syria, West Midlands Police have said.

The force said Mr Begg, 45, of Hall Green, Birmingham, is accused of providing terrorist training and funding terrorism overseas.

The woman, Gerrie Tahari, of Sparkbrook, Birmingham, is charged with facilitating terrorism overseas.

They will appear at Westminster Magistrates Court on Saturday.

Both were arrested on Tuesday. Two other men arrested the same day remain in police custody.

They are a 36-year-old man from Shirley, Solihull, and a 20-year-old man from Sparkhill, Birmingham, who were held on suspicion of facilitating terrorism overseas.

Camp transfer

Mr Begg was held in the US-run military prison at Guantanamo Bay in Cuba for nearly three years.

He is a British citizen who moved to Afghanistan with his family in 2001, before moving again to Pakistan in 2002 when the Afghanistan War started.

He was detained in Islamabad in January 2002 and taken to Bagram internment centre in Afghanistan for about a year before being transferred to the Guantanamo camp.

He was released in January 2005 along with three other British citizens and returned to the UK.

Mr Begg, who is now a director of campaign group Cage which helps the families of people who have been detained, had never previously been charged with an offence.

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Elderly 'could lose bus services'

1 March 2014 Last updated at 03:20 ET By Mike Sergeant Local government correspondent, BBC News

Elderly and disabled passengers could lose vital bus services because of cuts in government funding, councils in England warn.

The Local Government Association (LGA) says support for the concessionary fares scheme has been reduced by over a third since 2010.

Under the scheme, councils have to provide free off-peak travel for those aged over 62 or disabled.

The government says it provides funding to meet subsidised travel costs.

Local authorities say the funding from central government for concessionary fares has been cut by £261m since the coalition came to power.

Now councils say they are forced to subsidise the scheme, often by cutting back on other local transport services.

It is a particular problem for county councils trying to provide relatively expensive rural bus routes and school transport.

'Undeliverable'

Some authorities are now stripping back rural bus timetables, or cancelling free travel for elderly and disabled passengers during peak hours.

Free home-to-school transport is also under threat in several areas.

Leicestershire's Conservative councillor with Cabinet responsibility for transport, Peter Osborne, said: "The local government spending squeeze means what is required by law is undeliverable unless county councils put in extra subsidy. Is it fair that a ratepayer is subsidising what government should be paying for in the first place?"

Continue reading the main story

Terry King, 90, joined forces with other residents to hire a bus after services were cut in the Somerset village of Cheddar.

She told the BBC: "The Bristol bus, which a lot of us want, was stopped completely.

"I organised a bus of my own, and we all pay £5 for a day out shopping, which we are alright about.

"I think other people could do the same thing in other villages.

"You can't get everything for free these days. I think once the country is doing better then I will fight for getting a free bus again."

Oxfordshire, Cumbria, Somerset, Dorset and Buckinghamshire are also looking at ways to reduce the cost of their local bus routes. Their plans involve a mixture of cutting school buses and withdrawing less popular routes, the LGA said.

Councils say the problem compounded by the fact that demand is increasing.

The ageing population means that a third of all bus journeys are by the 10 million older and disabled people who receive concessionary bus passes.

Councils are increasingly looking for alternatives to regular scheduled buses - particularly for the more remote villages.

Some authorities are promoting car sharing schemes and "dial a ride" community transport services.

Councillor Peter Box of Wakefield, who chairs the LGA's Economy and Transport Board, said: "The concessionary fares provide a lifeline for our most vulnerable residents...but it is now under real threat."

A spokeswoman for the Department for Transport said: "We know that bus services are vital for many older and disabled people. That is why the right to free travel is enshrined in law, and government provides funding to meet the cost of subsidising offpeak travel for these groups.

"In addition, the Department for Transport provides funding to bus operators to help more services run and keep ticket prices down. The current level of this funding is protected until 2015/16."

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Labour to vote on membership reforms

1 March 2014 Last updated at 04:14 ET

The Labour Party is expected to endorse plans by Ed Miliband to reform its historic links with the unions at a special conference in London.

Party members will vote on ending the automatic affiliation of trade union members and itroducing "one member, one vote" in leadership elections.

Ed Miliband says the change, with union members able to opt-in to join the party, will transform politics.

Unite boss Len McCluskey said the union now has "difficult choices" to make.

He said he suspected only 10% of its one million members affiliated to Labour would opt to stay in if they were asked now.

An estimated 400,000 Unite members do not vote Labour - a situation Mr McCluskey said was untenable.

He said: "We want to get more of our members engaged with Labour at grassroots level. We see this as an opportunity and a challenge to actively talk to our members and try to persuade them to give a commitment to Labour."

Union members who "opt-in" to join the party will be asked to pay a £3 fee.

Mr Miliband's proposals have already led to the GMB union reducing its affiliation funding. Unite, Labour's biggest backer, is to discuss its funding arrangements next week.

Former Prime Minister Tony Blair is among those supporting the proposed reforms.

'Open our doors'

Mr Miliband won the last leadership election largely thanks to support from unions, but he announced changes to the links following controversy over union involvement in the selection of a Labour candidate in Falkirk last year.

Representatives of local Labour parties from across the UK are travelling to the ExCel centre to listen to Mr Miliband's speech and debate the proposed changes.

With Labour ministers, the party's ruling National Executive Committee and the big trade unions already signed up to them, the Labour leader is expected to win the vote.

He will tell Labour activists: "Today, we won't just be voting to open our doors. We'll be voting for the biggest transfer of power in the history of our party to our members and supporters.

"Today if you vote for these reforms you will be voting for Labour to be a movement again. Arguing our case house by house, village by village, town by town. But movements are only as strong as the people within them. The depth, the diversity, the reach of a movement is the true measure of its strength and its ability to make change.

"That's why we have to change, that's why we have to bring people in."

Continue reading the main story

A new method of electing Labour's leader - the electoral college, which gives unions, party members and MPs/MEPs a third of the votes each, abolished in favour of one member, one vote

MPs have sole nomination rights for leadership candidates and those candidates will need a higher level of support than at present - possibly 15% of MPs

All union members will have to 'double opt-in' if they want to take part in a leadership contest. They have to say that they are content to give money to Labour AND that they want to become 'an affiliated supporter'

Only full party members - not trade union 'affiliated supporters' - will choose parliamentary and council candidates

Changes to London mayoral selection - Labour's candidate to be selected in the same way as the party leader

New leadership rules will be put in place this year - but changes to the party's funding will be phased in over five years

He will claim the changes present a once-in-a-generation chance to breathe new life into Britain's failing political system.

Former Labour leader Tony Blair has given his backing to the proposals, saying: "Ed has shown real courage and leadership on this issue. It is a long overdue reform that as I said before, was something I should have done myself.

"It puts individual people in touch with the party and is a great way of showing how Labour can reconnect with the people of Britain."

At the moment, Labour leadership elections are decided by a complex electoral college system, with equal weight given to the votes of three groups - one third to MPs and MEPs, one third to ordinary party members and one third to trade unionists.

Mr Miliband wants a "one-member, one-vote" system - something Labour leaders since John Smith in the early 1990s have tried and failed to bring about.

Mr Miliband has argued that if even a fraction of union members sign up to be affiliated supporters it could more than double the number of activists the party can draw on and open politics up to a wider cross-section of people.

Meanwhile, John Smith's widow, Baroness Elizabeth Smith, writing in the Guardian, said her husband would have backed Mr Miliband's plan for one member, one vote.

She said: "Of course, Ed Miliband is a different leader than John, working in different times. But he has much in common with my husband.

"He has an understated style but is a leader of high principle, with a passionate belief in social justice. He has a capacity to bring people together and a determination to change our party so that we can change Britain."

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Crimean leader appeals to Putin

1 March 2014 Last updated at 04:25 ET

The new pro-Moscow leader of Ukraine's autonomous Crimea region has asked Russian President Vladimir Putin for help to ensure peace.

A Kremlin source said it would "not leave unnoticed" the request from Sergiy Aksyonov.

US President Barack Obama warned Moscow against intervention after mysterious troop movements.

Ukraine's interim Prime Minister, Arseniy Yatsenyuk, accused Russia of seeking to provoke an escalation.

He was speaking at the first meeting of his cabinet, installed after the overthrow of President Viktor Yanukovych.

The spectre of armed conflict in Crimea will be at the top of a long agenda, the BBC's Mark Lowen reports from the region.

Heavily armed unidentified soldiers took up position outside the regional parliament in Crimea's capital, Simferopol, on Saturday. Another airfield in the region was reportedly seized overnight, in addition to two airports and communications centres on Friday.

Ukraine's interim President, Olexander Turchynov, accused Russia of sending hundreds of soldiers and military aircraft to reinforce its Black Sea Fleet, which is based in Crimea.

Moscow says troop movements on the Crimean peninsula do not infringe international agreements and it denies involvement in the seizing of airports.

Under the agreement governing the Black Sea Fleet, the Russians must coordinate all troop movements outside the fleet's base areas with the Ukrainian authorities beforehand.

'Only my orders'

Mr Aksyonov, who leads the main pro-Russian party in Crimea, was elected prime minister of Crimea by the region's parliament this week in an emergency session, replacing Anatoliy Mohylyov.

In the same vote, the parliament called a referendum on increasing the autonomy of Crimea, a region dominated by ethnic Russians.

Mr Aksyonov's election has not been approved by the new authorities in Kiev, who traditionally appoint the prime minister of Crimea, in consultation with the regional parliament.

"I appeal to the president of the Russian Federation, Vladimir Putin, to provide assistance in ensuring peace and tranquillity on the territory of the Autonomous Republic of Crimea," Mr Aksyonov said in a statement.

He went on to announce that he was taking control of security in Crimea "on a temporary basis".

"All commanders are to obey only my orders and instructions," Mr Aksyonov said. "I ask all those who refuse to do so to resign."

'There will be costs'

Warning Russia there would be "costs" for any military intervention, Mr Obama said he was deeply concerned by reports of Russian military movements.

Speaking from the White House, he commended Ukraine's interim government for its "restraint".

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President Obama: "Any violation of Ukraine sovereignty would be deeply destabilising"

"Any violation of Ukraine's sovereignty and territorial integrity would be deeply destabilising, which is not in the interests of Ukraine, Russia or Europe..." he said.

"The United States will stand with the international community in affirming that there will be costs for any military intervention in Ukraine."

Mr Obama did not spell out what any US response might be but it could take the form of economic pressure by withholding the deeper trade ties that Moscow seeks.

A G8 summit that Russia is due to host in June might also be boycotted.

The new government in Kiev was formed this week by opposition parties and street activists.

Mr Yatsenyuk said: "The presence of Russian soldiers is a provocation and we demand that Russian soldiers return to their permanent bases."

"We are taking no steps that could provoke a violent confrontation," he said. "All responsibility for the escalation of the conflict lies personally at the leadership of the Russian Federation."

Viktor Yanukovych, who was deposed after months of unrest degenerated into bloodshed this month, made his first appearance in Russia on Friday, insisting he was still the legitimate president of Ukraine and attacking the new government.

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Deadly attack on Pakistan polio team

1 March 2014 Last updated at 04:43 ET

A bomb attack on a polio vaccination team in north-west Pakistan has killed at least 11 people, officials say

A roadside bomb went off as the police-guarded convoy drove through a village in Khyber Pakhtunkhwa province near the Afghan border.

The attack is the latest in a series targeting polio teams in the country.

No group has claimed responsibility, but the Taliban oppose the polio schemes, which they see as a cover for international espionage.

Initial reports said the convoy was struck by two separate bombs on Saturday.

Officials confirmed that people wounded in the attack were taken to a nearby hospital. Some of those injured are said to be in a critical condition.

Pakistan has witnessed a campaign of violence against health workers, who militants also accuse of being part of a Western plot to sterilise Muslims.

More than 40 people linked to the vaccination programme have been killed in Pakistan since December 2012.

Last month, unidentified gunmen shot dead three polio workers in the southern city of Karachi, a day after authorities began a new nationwide vaccination drive.

Pakistan is one of only three countries where polio remains endemic, along with Nigeria and Afghanistan.

According to the World Health Organization, Pakistan recorded 91 cases of polio last year, up from 58 in 2012.

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Child poverty rethink to be outlined

26 February 2014 Last updated at 22:47 ET

New measures to tackle child poverty are to be unveiled by the government.

But plans to scrap the existing definition, which focuses on the income of households, have been put on hold, Iain Duncan Smith has suggested.

In a Guardian article with Chancellor George Osborne, the work and pensions secretary said it was important "we take the time to get it right".

Labour says child poverty has risen in recent years. PM David Cameron says it has fallen under a range of measures.

Speaking in Parliament on Wednesday, Mr Cameron said there were 500,000 fewer children in poverty than in 2009.

'Simplistic analysis'

One of the key aims of the strategy will be to stop poor children growing up to be poor adults.

The government is likely to announce a new focus on getting parents into work and improving the educational performance of children from the poorest backgrounds.

Some details of the draft measures to be put forward by Mr Duncan Smith and schools minister David Laws were reported by the Observer on Sunday.

Continue reading the main story

"Start Quote

The right analysis, the right data, and the right measures will allow us to deliver a really meaningful reduction in child poverty"

End Quote Iain Duncan Smith and George Osborne

They include reducing the typical energy bill by £50 and extending the warm home discount, reducing water bills for low-income families, lowering food bills through vouchers and extending the free school meals programme.

A child is currently considered to be living in relative poverty if they are in a household whose income is below 60% of average earnings.

Mr Duncan Smith has long argued that measure is too simplistic, as some families might appear to have become less poor if average incomes fall, and he had been expected to propose a broader definition.

It was thought he would argue that whether parents were in work or had drug or alcohol problems should also matter, as should ensuring children got a good education.

Mr Duncan Smith and Mr Osborne, writing in the Guardian, said the Tories were still "committed to introducing better measures of child poverty - measures that drive the right action to bring about a real change in children's lives now and in the future".

They said that, under Labour, "the wrong measures based on inadequate data and simplistic analysis drive misguided and ineffective policy".

But, acknowledging they would not be pushing forward with a change in definition at this stage, they said: "This is such an important issue - it is vitally important that we take the time to get it right.

"The right analysis, the right data, and the right measures will allow us to deliver a really meaningful reduction in child poverty."

BBC social affairs correspondent Michael Buchanan said Liberal Democrats were claiming the Treasury had blocked the introduction of new targets.

"The Lib Dems are understood to be sympathetic to some of Mr Duncan Smith's arguments but blame the Treasury for blocking attempts to introduce new targets to supplement the income threshold which was devised by Labour," he said.

'Fix leak'

Save the Children's William Higham said: "With child poverty predicted to rise by a million by 2020, more children will be growing up without the basics we expect, like a warm home and a winter coat."

Continue reading the main story

"Start Quote

Changing the definition of poverty won't do anything to help the children whose lives are being damaged by the rise in poverty we are seeing under this government"

End Quote Shadow work and pensions secretary Rachel Reeves

He added: "The proposed government action on energy prices and insurance will make a difference - but we can't just bail out families, we need to fix the leak.

"Work needs to become a route out of poverty and we must intervene early to help the poorest families and make sure their children don't fall behind at school."

Government figures on poverty, released in June, show the median UK household income for 2011/2012 was £427 a week - 60% of that figure was £256 a week.

In that year, 17% of children, or 2.3 million, were classed as being in poverty while 15% of working-age adults, or 5.6 million, were in poverty.

But Labour said 400,000 more children were set to be living in poverty in 2015, compared with five years earlier.

"Changing the definition of poverty won't do anything to help the children whose lives are being damaged by the rise in poverty we are seeing under this government," said shadow work and pensions secretary Rachel Reeves.

Are you struggling on a low income with a family to support? What is the best way to tackle child poverty? Email us at haveyoursay@bbc.co.uk adding 'Child poverty' in the subject heading and including your contact details.

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Standard Life could quit Scotland

27 February 2014 Last updated at 01:59 ET

Standard Life is putting in place contingency plans to relocate funds, people and operations to England if Scottish people vote for independence and what it regards as material uncertainties about money and regulation are not sorted to its satisfaction.

In its annual report, published on Thursday, the chairman of the Edinburgh-based pensions and savings firm, Gerry Grimstone, says Scotland has been a great base for the company but that, "if anything were to threaten this, we will take whatever action we consider necessary - including transferring parts of our operations from Scotland - in order to ensure continuity and to protect the interests of our stakeholders".

According to Standard Life's chief executive, David Nish, the company - which has had its headquarters in Scotland for 189 years - has "started work to establish additional registered companies to operate outside Scotland, into which we could transfer parts of our operations if necessary".

"This is a precautionary measure to ensure continuity of our businesses' competitive position and to protect the interests of our stakeholders."

Standard Life is the first significant Scottish business to warn that remaining in Scotland may be untenable in the event of a vote for independence.

Its intervention in the debate on Scotland's future is particularly significant because it is a symbolically important company in Scottish financial history and is regarded as a great success.

Standard Life is the UK's biggest provider of defined contribution pensions and self-invested pension plans, and has around £240bn of assets under management.

Special report: Scotland's future

Uncertainties

Mr Nish insisted Standard Life has "a long-standing policy of strict political neutrality and at no time will we advise people on how they should vote".

We will take whatever action necessary - including transferring parts of our operations from Scotland - to protect the interests of our stakeholders"

End Quote Gerry Grimstone Chairman, Standard Life

However, he said his strict duty was to assess the impact of independence on the group's four million UK customers, its 5,000 Scottish-based employees and its 1.5 million shareholders.

Mr Nish said this judgement could not be made in a definitive way at the moment because of uncertainties about the currency to be used by an independent Scotland, how interest rates would be set, how financial companies like Standard Life would be regulated, how savings and pensions would be taxed, and on what timetable Scotland could join the EU.

I am told by informed sources that unless a formal monetary, regulatory and currency union were agreed by an independent Scotland with the rest of the UK, which also included some kind of compact on taxes, Standard Life would feel obliged to move both funds and people to England.

The point is that 90% of all Standard Life's UK customers are outside Scotland, while their funds are held inside the country.

And if Scotland seceded without delegating regulation and monetary policy to London, the risks, costs and complexities of customers being in a separate country from their money would be too great - or so Standard Life believes.

"Customers' money and our capital would need to be near regulators responsible for those customers," said a source.

Standard Life also does not believe it could continue to recruit the best people to work in Edinburgh if they were uncertain about how much they would be taxed.

Monetary union

What brought this issue to a head for the company was the recent declaration by Chancellor George Osborne, Labour shadow chancellor Ed Balls and the Liberal Democrat Chief Secretary to the Treasury, Danny Alexander, that they would all oppose formal monetary union with Scotland.

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I understand that Standard Life does not regard as satisfactory the apparent fallback position of Scottish First Minister Alex Salmond that Scotland would use the pound even without formal monetary union.

Although Standard Life's location is not vital to Scottish prosperity, the threat of tens of billions of pounds of funds and thousands of highly-skilled jobs flowing across the border are bound to have an electrifying impact on the independence battle.

I am reliably told that the emigration of Standard Life could extend to shifting the headquarters from Edinburgh to London.

"There is no stock exchange up here [in Scotland]," said a well-placed source, "and we are not sure we would wish to become a foreign registered company on the London Stock Exchange. So we might have to move."

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Binding 'pre-nup' law proposed

27 February 2014 Last updated at 03:27 ET

Couples in England and Wales would be able to legally agree the terms of a divorce before marrying, under a new law being put forward.

The Law Commission believes making pre and post-nuptial agreements legally binding will make it easier for couples to manage their finances after a split.

Currently, married couples and civil partners can make agreements but courts do not always uphold them.

The commission advises the government on updates to the law.

It says that should the proposed law be enacted, married couples and civil partners would be able to make a binding agreement about how their property or finances should be shared if their relationship breaks down.

The measures are expected to be particularly popular with those considering second marriages who want to protect property for their children.

'Commodity'

Harry Benson, of the Marriage Foundation, said he expected such agreements would only be used by a small minority who had a lot to protect.

"What you are essentially saying is, 'My money is more important than our commitment.'"

But divorce lawyer Sarah Anticoni, a partner at law firm Charles Russell, said she could foresee such contracts becoming much more common.

"They will turn from being a luxury, probably into a commodity."

Continue reading the main story

If I do get married again, a pre-nuptial agreement would be absolutely critical"

End Quote Eric Tansley

She said the Law Commission had given clear guidance that any agreement would need to meet people's needs.

This, she added, included somewhere to live, money to live on and to have in mind that there may be children.

The Law Commission has also laid out conditions in order for the marital agreements to be binding, which include:

• Both partners must have had legal advice

• Both partners must have disclosed all relevant information about their finances

• A pre-nuptial agreement must have been made at least 28 days before the wedding or civil partnership

Prof Elizabeth Cooke, the law commissioner for property, family and trust law, said that the change would give couples "autonomy and control, and make the financial outcome of separation more predictable".

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"Pre- and post-nuptial agreements are becoming more commonplace but the courts will not always follow them and lawyers are therefore not able to give clear advice about their effect," she added.

'Twice shy'

Eric Tansley, who went through a long and difficult divorce, told BBC's Breakfast he wished the arrangement had been available when he split up with his wife.

"I'd inherited a considerable sum of money from my father a few years ago and endeavoured to have that protected but there proved to be no way of doing so.

"And so it's just in the pot and it's been dissipated. I just so wish that I could have kept that separate," he said.

"If I do get married again, a pre-nuptial agreement would be absolutely critical, both for my own protection and for that of the interests of my children, and clearly at the moment it's very much a case of once bitten, twice shy for me."

The government will now consider the Law Commission's recommendations.

Have you made an agreement with your partner? Do you plan to make one in the future? Email us at haveyoursay@bbc.co.uk adding 'Pre-nup' in the subject heading and including your contact details.

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