The Government has welcomed a fall in unemployment and the number of dole claimants but admitted there were too many people in part-time jobs who wanted full-time work.

The jobless total fell by 45,000 to 2.6 million in the quarter to March, the lowest since last summer, while the number on jobseeker's allowance last month was down by 13,700 to 1.59 million.

Lending to first-time buyers surged 74% during March in a rush to beat a deadline for the end of a stamp duty concession, figures have shown.

The Council of Mortgage Lenders (CML) said 24,000 loans worth a combined £3 billion were taken out by borrowers new to the market.

Sir Mervyn King has delivered a hard-hitting verdict on Europe's debt woes as he admitted the crisis will hamper UK growth this year and next.

The Bank of England governor said the single currency area was "tearing itself apart without any obvious solution" while he also confirmed the Bank was working on contingency plans in the event of a worst-case scenario for the euro.

The UK's battle to escape recession will be hampered by the loss of output due to the Queen's Diamond Jubilee celebrations, the Bank of England has said.

The four-day holiday weekend may encourage some people to take longer breaks or encourage businesses to arrange extended closures.

Tough economic times mean tourists are giving fewer tips, according to a survey.

As many as one third of British holidaymakers are giving smaller tips or have stopped tipping entirely, the poll by TripAdvisor found.

The boss of bakery chain Greggs stepped up his fight against the "completely confusing" pasty tax today on the eve of a showdown with the Treasury.

Greggs chief executive Ken McMeikan said customers have given "universal support" to the group's campaign against Government plans to extend the 20% VAT tax to its hot takeaway food - including pasties and sausage rolls.

Frail elderly and disabled people are being charged more for council help to get washed, dressed and fed at home, according to a survey.

The number of elderly people having their home care services fully paid for by their local authority has fallen by 11% over the past two years in spite of an ageing population, statistics obtained by the Labour Party have shown.

Energy firm SSE has said profits from its domestic supply operation fell 21% over the last year as it battled higher costs and falling consumption.

The division, which is the UK's second biggest supplier with 9.5 million household and business accounts under brands including Southern Electric, Swalec and Scottish Hydro, still made £271.7 million in the year to March 31.

Government reforms to make homes more energy efficient are in chaos because consumers could end up paying thousands of pounds for improvements through higher energy bills, Labour has claimed.

Under news laws, consumers will be able to pay for environmentally-friendly home improvements such as double-glazing or loft insulation, which will then be paid back through add-ons to electricity or gas bills.

Big businesses must help push through flexible working laws by countering claims the Government is imposing politically-correct burdens on bosses, Vince Cable has said.

The Business Secretary said ministers alone could not be seen to dictate the changes as he welcomed the creation of a panel from leading UK firms to push forward the issue.