10/07/2012 BBC News at Ten

Ada wind-down from the government, hours before it faced defeat in a

crucial vote in reforming the House of Lords -- a climbdown. The

timetable was abandoned as the coalition faced a Conservative

rebellion. Whatever moral authority this bill had, it has now lost.

is the very substantial opposition from within the Conservative Party

that is responsible for the withdrawal of this motion. We will

be assessing whether this is the end of the road for Lords reform,

and the damage suffered by the coalition.

Barclays' former chief Bob Diamond hits back at what he calls unfair

criticism as it emerges he waived his final multi-million-pound bonus.

John Terry gives evidence in the racism trial, he said he was very

angry and upset when the allegations were made.

The family behind the Tetrapak business empire is hit by tragedy

after one of British richest women is found dead.

Egypt's power-struggle bring supporters of the new President out

onto the streets as he faces a stand-off with the army.

And the latest leg of the torch relay. First the man who broke the

four-minute mile. And onwards by boat to a royal appointment.

Coming up in sports day on the BBC News Channel, Nottingham Forest

have new owners as one of Kuwait's richest families buys the club

Good evening. In a dramatic climbdown, the government has

abandoned plans for a controversial vote on reform of the House of

Lords. Dozens of Conservative MPs had made it clear they would defy

party orders and side with Labour in a vote on the measures.

Ministers have warned that with no timetable, reform would fail. Nick

Robinson reports on a day that could have serious implications for

the coalition. This was the day the government

lost its majority. The day all the behind-the-scenes arm-twisting and

persuading proved not to be enough. The day Nick Clegg had to come to

the Commons to hear that he couldn't get his way on House of

Lords reform. Mr Speaker, we have listened carefully to the debate so

far. Listening, that is, to all those Tory backbenchers. Some say

70, others 100, the told ministers no, we simply won't back you.

we will not move the programme motion tonight. The government

chose to retreat rather than be defeated by a coalition of Tory

rebels and the Labour Party. government's decision to withdraw

the programme motion today is a victory for Parliament. The motion,

which ministers did not dare put to the vote today, was not actually

for Lords reform, it was for the timetable for debate, the so-called

programme motion. It may seem trivial until you realise that with

no timetable, there is no time limit on debates. The opponents can

talk and talk. In the past, that has meant a recipe for no reform.

The decision to climbdown came after the men who count votes for

the government, the Tory chief whip and his Lib Dem deputy, said there

simply were not enough for the government to win. The Prime

Minister told Nick Clegg he needed more time to win over his rabbles.

The numbers didn't stack up, they could tell that after they took the

temperature in the debate and we have a capitulation. The government

whips have blinked first. These are government supporters describing a

government bill. Can I put it to my right honourable friend at whatever

moral authority this bill had, it has now lost? Could I make clear

from these benches that it is the very substantial opposition from

within the Conservative Party that is responsible for their withdrawal

of this motion, and not the Labour Party, and that should be perfectly

clear. Ministers now say that over the summer they will work to

persuade those stopping Lords reform by refusing to agree a

timetable to change their minds and letting go ahead. What will be

different, when you bring the same motion to the same house of Commons,

went -- with the same basic proposals in two months? Politics

is full of change and full of people looking further at the

arguments, and concentrating on their issues. That is what we have

to make sure happens. Can you put your own money on this happening?

would never put my own money on any of this. Nick Clegg probably isn't

laughing. His allies say that he and his party have made will sort

of compromise is to carry a government red boxes and keep the

coalition together. Now it is the Conservative -- Conservatives' turn.

In coalition you sign up to a deal. It is not a pick-and-mix

Corporation. Both parties have to stick to the deal and if you don't

there is a serious consequence. -- pick and mix co-operation. It is a

not very coded message to the Conservatives.

William Hague was telling you about politics be a full of change but is

this a change that can come back after this? The rebels are clear

about this. They regard House of Lords reform as dead. Ministers

insist that in the words of the Monty Python sketch about the

parrot, Lords reform is merely resting. It is hard to see how it

revives but politics is a pretty odd thing. Let me take you into the

House of Commons chamber now. What you are seeing is MPs voting. They

are voting on House of Lords reform. How are they likely to vote? In

favour of House of Lords reform. You might say what is the fuss

about? It is very simple. Without a timetable motion, it is the view of

virtually every one that House of Lords reform will simply never

happen. The government is saying they will come back in September

with a chance to timetable this business. William Hague and no one

else can give me an answer as to what might change between now and

then. Where does that leave the coalition and relationship within

government? For the moment, the coalition is secured. In the sense

that the Liberal Democrats are not publicly turning their fire against

the Conservatives. They are criticising the Labour Party,

saying the Labour Party say they are in favour of reform but are in

effect blocking it. Behind the scenes, Liberal Democrats are

saying that if David Cameron can't deliver his party in September, if

he can't make House of Lords reform happen, if he can't stick to the

promises he made to his Liberal Democrat coalition partners, what

the Tories will discover in the remaining months and years of this

coalition is that all sorts of things they want the Lib Dems to

vote for, they will suddenly discover the Lib Dems are not there

to do. Thank you. The former Barclays

chief executive Bob Diamond, who resigned over the bank's rate

rigging scandal, said he is dismayed over the suggestion that

his evidence to a parliamentary committee was less than candid. A

committee was told Mr Diamond would receive a final pay package of �2

million, a 10th of what he could have taken in bonuses.

It was another day of high drama and the Berkeley saga, another day

of revelation about the boardroom turmoil in one of Britain's biggest

banks, and more fall-out from the interest rate rigging scandal. The

spotlight was on the chairman, Marcus Agius, seen in happy times

launching a bike hire scheme with the London mayor. He said he will

quit after finding a new boss. He revealed details of Bob Diamond's

pay-off. He has turned down �20 million of bonus entitlements. But

Mark Agius told MPs there would be a payment -- Marcus Agius. He will

get 12 months' pay and a cash payment in lieu of pension which

comes to around �2 million. committee had a number of questions

about the exact reasons for Bob Diamond's departure last week. Bob

Diamond was on his way out after a meeting which took place here at

the Bank of England. The Barclays chairman set out in detail how he

and another director was summoned by the Governor last Monday evening

and told in no uncertain terms, Mr Diamond was no longer acceptable.

Marcus Agius said the attitude of the Bank of England and the other

City watchdog had changed. He had to go to Mr Diamond's house to pass

on the bad news. We explained what had happened. The conversation

was... He was not in a good place, as you can imagine. You were

handing him a loaded revolver? conversation was not long. He asked

for time to talk to his family. There were revelations about the

culture at parties and concerns expressed by regulators. In April

this year, the head of the FSA, Lord Turner, wrote to Marcus Agius

and talked of a Barclays attitude that was at the aggressive end of

the rules and regulations. It's said one financial statement

created a confusing a potentially misleading impression. MPs wanted

to know why Mr Diamond had not said more about the letter when he gave

evidence last week. It cannot be possible, can it, but Mr Diment

wasn't aware that this letter -- that Mr Diamond wasn't aware of

this letter and hadn't -- and had forgotten about it. I cannot speak

of his testimony. The committee chairman they'd clear what he felt

about the regulator's letter. will look to us, and frankly

everybody listening, like another example of a complete lack of

candour to Parliament by the chief executive of Barclays. But tonight,

Bob Diamond has hit back, saying suggestions she was less than

candid are totally unfair and unfounded. He has offered to

discuss the issues further. Regulators may face further

questions about their involvement in his departure.

The former England football captain, John Terry, has said he was very

angry and upset when accused of racially abusing Anton Ferdinand

during a Premier League match last year. Giving evidence at

Westminster magistrates' court, he denied the charge and the

suggestion that he had snapped after being taunted about an affair.

John Terry's journey to Westminster magistrates' court started with

what he is alleged to have said 10 months ago. Today, finally, he had

his say on accusations he had racially abused an opponent. It was

during this match at Loftus Road in October at the Chelsea captain was

caught on camera mouthing the word black, and a series of obscenities

towards Queen's Park Rangers defender Anton Ferdinand when the

pair traded insults. Five days later, Terry told FAA investigators

he believed he had been accused of racist abuse and responded by

sarcastically repeating the words. An audio recording was played in

court. I think he is accusing me of calling him a black brake -- BLEEP

in the altercation we have had. I repeat what he said ant called him

a BLEEP at the end of that. Terry told the FA he was shocked and

angered by the suggestion he would make a racist slur. I have been

called a lot of things in my football career but being a racist

is one I am not prepared to take. I am not having anyone, let alone and

on think that about me, because that is not my character -- let

alone Anton. He told the court that his support for charities of black

Chelsea players showed he was not a racist. He applied for the court to

be dismissed but the judge, Howard Riddle ruled that there was a case

to answer. Duncan Penny for the prosecution said, you're not a

-- Terry denied he had been provoked by Gedding from Ferdinand,

And he admitted he might have handled the situation differently,

but refused to apologise, saying he had done nothing wrong. He will

continue to give evidence tomorrow A man suspected of murdering a

police officer has been found dead in a churchyard in Essex. 64-year-

old Peter Reeve's body was discovered this morning. The family

of 41-year-old Ian Dibell say they'll take some comfort from his

behavioury. Forensic teams spent most of today closely examining the

graveyard, where Peter Reeve is believed to have killed himself. He,

say Essex police, is the man who yesterday murdered a police

constable. The 64-year-old was unknown to officers. He was found

with injuries to his head and an illegal handgun at his side.

Yesterday can only be described as an impossible to understand and

escalation in events. It's an extreme set of circumstances that a

man opens fire with a gun, clearly firing at more than one person and

shoots an off duty police officer dead. PC Ian Dibell's family say

they are immensely proud of him. Policing was in his blood. It may

explain why, when he was off duty, he chose to intervene in a violent

argument on this road in Clacton. A neighbour described seeing Peter

Reeve shooting at two people. looked out the window and seen him

fire shots at a lady who lived downstairs and see she run in one

direction and he started walking back reloading the gun and opened

fire on her other half, who was running down the actual road.

have police confirmed about events? Around 3.40pm they received a 999

called reporting firing at Redbridge Road. A man had been shot

in the leg, sustaining minor injuries. Then, PC Ian Dibell, who

lived nearby, was shot and killed. Following an intense search Peter

Reeve was recognised at the graveyard in Writtle this morning,

and it's unclear if he was alive. He was pronounced dead at the scene.

Police say that they are still trying to establish exactly why

Peter Reeve chose to end his life here. Local people have told the

BBC that he had relations in the area and that he may have had a

close family member buried in this graveyard. Peter Reeve's body has

been removed for further examination, in what police are

describing as a complex murder inquiry.

Still to come - the Royal seal of approval, the latest stage of the

little pick torch's journey takes it to Windsor Castle. -- the

Olympic torch's journey takes is to Windsor Castle. Francois Hollande

has spent the day in London, visiting David Cameron for the

first time since he was elected in May. He denied he had ever been

offended by the Prime Minister previously offering to roll out the

red carpet for French citizens coming to Britain to avoid high

taxes. He talked about making changes to Britain's relationship

with the European Union, as we now report. A lavish welcome for the

new French President. Very different from the last time he

came to London, before the French election, when David Cameron, it

seems, refused to see him. Maybe the honour guard can dwarf him,

like his predecessor, this French President is on the short side, but

no slight was intended. The aim of all this pomp and ceremony was to

suggest a fresh start, and a desire to collaborate. Even the red carpet

at Number Ten didn't spoil things. Last month, David Cameron said he

would roll it out for French tax exiles if they wanted to escape new

high French taches. Just British humour -- taxes. Just British

humour said, Francois Hollande and no offence taken. Instead they

focused on trade poll Sid and defence and papered over economic

cracks with talk of a multi-speed Europe.? TRANSLATION: We should see

a Europe as having different speeds. With each country taking what it

wants from the EU. While respecting others. Time was any hint by a

French President of a multi-speed Europe with Britain by implication

in the outside slower lane, would have been cause for alarm here in

London. But, now, it seems, the British Prime Minister agrees with

Francois Hollande. Whether you want to call it different speeds or

types of membership, I think that will be possible in the future. I

don't think Britain is happy with its current relationship with the

EU and I think we need to make changes. I'm committed, over time,

to making those and I've said before, putting that then to the

people to get their full-hearted consent. Not quite a promise of a

referendum, but the latest hint it could be in the offing. At Windsor

Castle, the Queen's welcome was in his language. She has greeted

successive French Presidents. When his relations with London will

overcome initial strains, probably still not fully tested. One of

Britain's richest women has been found dead in central London. Roust

roust roust was a member of the family behind the Tetrapak empire.

A 49-year-old man reported to be her husband, was arrested in

connection with the death and on suspicion of possession of drugs.

Tonight, her family paid tribute, describing her as a devoted wife

for 20ers. It was in the exclusive Chelsea area of London, in her

enormous Georgian property, that roust roust roust's body was found.

Police say her death is being treated as unexplained. The

discovery folgd a search of the house by police yesterday --

followed a search of the house by police yesterday, after a man was

arrested. He's been arrested in connection with the death and is

currently receiving medical attention. 48-year-old mother of

four, Eva was married to Hapbs, the heri to a fortune, amassed by his

tie confather, Hans who turned the cartoon company into a global

empire. In 2008, at the American embassy in London, they got into

trouble with police, when she was caught with Class A drugs. They

were never prosecuted. The couple's large town house here in Chelsea

was subsequently searched after that incident. 52 grammes of

cocaine were found, as well as some crack cocaine and heroin and now

four years on, this property is once again the subject of an

investigation. They had privileged lifestyles and donated huge sums to

good causes, including drugs charities, but Eva and hapbs were

known addicts. She once said of her addiction that she had taken the

wrong turn in the course of her life. A postmortem has failed to

establish the cause of her death and further tests will now need to

be carried out. Egypt remains locked in a power

struggle between the new President and the ruling military council,

with a court ruling against the President's decision to reinstate

Parliament. MPs met in Cairo today in defiance of a military order to

dissolve Parliament last month. Our correspondent, Jon Leyne, has the

latest on a political crisis that began just days into new

President's term in office. Standing slightly awkwardly

together they attended military parade. These are the two rivals

squaring up in Egypt's new battle for power. President morse morse of

the Muslim Brotherhood and the military leader. Today, MPs arrived

for a session of Parliament. The assembly was recalled by the

President directly against the order of the military, which

dissolved it just two weeks earlier. The session lasted only five

minutes, but it's brought Egyptian politics back into crisis, just

when the new President seemed to be aiming for consensus and compromise.

The political confrontation is moving from something of a bare-

knuckle fist fight, to more of an intrigue game of chess, but it's

still a struggle for power, over who controls this great country.

The next move in the game came from the constitutional court, which

barely a week ago was swearing in President Mohammed Morsi. In a new

ruling, the court overturned the President's decision to recall

Parliament. That will be seized on by the President's critics, who are

suggesting he's already beginning to act almost as a dictator. This

is a terrible thing, that the President who is freely elected for

the first time in the history of Egypt, only a few weeks after he's

in office, he will make a decision or a decree totally against court

cases. But the President is also winning friends. We found Egyptians

pushing in petitions through the gates of the presidential palace,

after Mohammed Morsi promised to deal with the problems of ordinary

people one by one. All very different from his aLouvre

predecessor, Hosni Mubarak. seems to be better than Hosni

Mubarak too much because Mohammed Morsi come from the people and he

likes people. Tonight, supporters of the President have been flooding

back to Tahrir Square, as this new populist President challenges the

old, established power of the military. The Olympic Flame was

given the Royal seal of approval today. The Queen and the Duke of

Edinburgh watched the torch arrive at Windsor Castle this afternoon.

It was also a day for Britain's sporting heroes, starting with Sir

Roger Bannister returning to the Oxford track where he became the

first man to run a mile in under four minutes. Robert Hall reports.

This was a day, which celebrated history and made a little of its

own. At Oxford's stadium Sir Roger Bannister was once again on the

track, where he became the first man to run a mile in under four

minutes. I'm very glad to be part of the torch relay, because this

symbolises a national enthusiasm, I think, for the Olympics. Down the

road and lanes of the Thames Valley word was spreading and the crowds

were growing. All a bit too much for 12-year-old Aaron Steel, but a

few words of encouragement helped settle his nerves. In Henley, they

hosted a small river pageant, at its heart a five-times medallist,

with a challenge, transporting it across a fast-flowing current and

there was a crash course in orzmanship. -- orsman ship. It's

very, very special for the sport of rogue. By the time the torch wound

its way up Windsor's high street, the crowds were threatening, but

the highlight of the day was never in doubt. On every one of the 53

days travelled so far, the team behind the torch have tried to

ensure that it's seen by as many as people and photographed in some of

our most famous landscapes. You don't get a much better photo

opportunity than this one, whatever the weather. As the rain pounded

the castle roof, the Queen and Prince Phillip met torchbearer,

Gina McGregor and had a close-up view of the mechanics that

accompany every transfer of the flame. Then away up long walks to

the turf of Ascot, where Frankie Dettori had set himself the day's

last challenge. Could he manage the famous dismount without