The coalition's deficit-cutting plans will deliver a "material" hit to British economic growth over the next two years, a leading Bank of England policymaker has warned. In an interview with The Times, Adam Posen, a member of the Monetary Policy Committee, said that the tax increases and spending cuts George Osborne opted for would have a particularly large impact on the economy's performance, imposing a "material down-drag" on both growth and inflation. Kazakhstan is preparing to hit one of BG Group's biggest gas projects with $1.2bn (£760m) in back taxes, as the nation's government tries to wrestle itself a stake in the key field. Karachaganak, the prize gas project owned by BG Group, Italy's ENI and America's Chevron, is the only major field in the Eurasian country where the state has no influence, the Telegraph writes. The simmering crisis on the eurozone fringes has erupted again as the full impact of debt deflation hits home, testing political solaridity and raising fresh doubts about the workability of Europe's austerity policies. Hopes of a budget deal in Portugal collapsed after marathon talks between the minority government of socialist premier Jose Socrates and conservative leaders ended in acrimony. Finance minister Fernando Texeira dos Santos said failure to agree on budget cuts will "plunge the country into a very deep financial crisis", reports the Telegraph.Low earners will be exempt from plans to put pressure on almost all workers to save for retirement after concessions were outlined by ministers yesterday. Seasonal workers and other employees leaving jobs within weeks of arriving will also be excluded as a result of the introduction of a three-month probation period. However, there is no reprieve for the smallest businesses, which had lobbied to be excluded from the looming pensions reform, according to the Times.Speciality retail Group, the company behind the Suits You menswear chain, has collapsed into administration just eight months after a controversial insolvency procedure, leaving 350 jobs hanging in the balance, the Independent reports. Vodafone's flagship Oxford Street store was forced to close on Wednesday after protesters blockaded the entrance, accusing the company of failing to pay £6bn in taxes. The FT says around 30 protesters sat down in the store, while 15 stood outside holding banners that read "Pay your taxes, save the welfare state" and chanting: "If you want to sell phones, you should pay your taxes."Guy Hands, one of Britain's best-known venture capitalists, is a contrarian and egotist, the Terra Firma founder's friend and legal adversary David Wormsley has told a New York court, which is hearing the private equity firm's $7 billion fraud case against Citigroup, the Times writesThe internet is worth £100bn to the British economy, making a larger contribution than transport or utilities, as the country becomes "a nation of digital shopkeepers". The internet accounts for an estimated 7.2 per cent of gross domestic product and this could rise to 15 per cent within five years, according to global research by the respected Boston Consulting Group (BCG), writes the Independent.
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