British police feel strain from attacks after latest London bombing

Cressida Dick, the Metropolitan Police Commissioner chats to armed officers as she walks along the Southbank in London, Britain, September 16, 2017. REUTERS/Peter Nicholls

By Alistair Smout

LONDON (Reuters) – Two of Britain’s most senior officers said the pressure on the police forces was not sustainable after last week’s attack on a packed London train became the fifth major attack this year.

Fewer officers could make it harder to prevent future attacks and it will force difficult choices about where to put police resources, they said.

A homemade bomb engulfed a train carriage in flames at Parsons Green underground station in west London last Friday injuring 30. Cressida Dick, London’s police Commissioner, said it could have been much worse.

Britain had previously faced four deadly incidents since March which killed a total of 36 people.

“In the long run, if we continue with this level of threat, which is what people are predicting … this is not sustainable for my police service,” Dick said in an interview on LBC radio.

Six men have been arrested and four remain in custody since the Parsons Green attack.

“That was a very very dangerous bomb. It partially detonated, it had a large quantity of explosive and it was packed with shrapnel. So it could have been so much worse,” Dick said.

While the bombing at Parsons Green was not deadly, the aftermath of the attack still saw extra police on the streets and the threat level raised a notch to critical.

Interior minister Amber Rudd has announced an extra 24 million pounds ($32.55 million) of funding for counter-terrorism policing following the bombing, in addition to 707 million previously announced support for 2017/2018.

But while the government has committed to increase the overall spend on counter-terrorism by 3 billion pounds, Sara Thornton, head of National Police Chiefs’ Council (NPCC), said that not enough of the budget would support frontline officers.

There are about 20,000 fewer officers than there were when Prime Minister Theresa May’s Conservatives came to power in 2010 and Thornton said numbers were at levels last seen in 1985 despite a 10 percent rise in crime last year.

“Every time there’s a terror attack, we mobilize specialist officers and staff to respond but the majority of the officers and staff responding come from mainstream policing,” she wrote in a blog post on the NPCC website.

“This puts extra strain on an already stretched service.”

(Additional reporting by Elisabeth O’Leary; Editing by Matthew Mpoke Bigg)

Manslaughter charges possible in London tower block fire disaster: police

FILE PHOTO: A member of the emergency services works inside the Grenfell apartment tower block in North Kensington, London, Britain June 17, 2017. REUTERS/Hannah McKay/File Photo

By Estelle Shirbon

LONDON (Reuters) – The criminal investigation into the Grenfell Tower fire that killed about 80 people in London in June could result in manslaughter charges, but any prosecutions could be months away due to the complexity of the forensic work, police said.

The 24-storey social housing block, home to a poor, multi-ethnic community, was destroyed on June 14 by a fire that started in a fourth-floor flat in the middle of the night and rapidly engulfed the whole building.

Police have formally identified 60 of the victims, but painstaking forensic work to find human remains, some of them tiny fragments, among tonnes of debris inside the charred ruin is ongoing.

Commander Stuart Cundy, who has overall control of police operations at Grenfell Tower, told reporters on Tuesday it was likely the final death toll would be a little below 80.

Detective Chief Inspector Matt Bonner, in charge of the criminal side of the police investigation, said a forensic examination of the tower would continue into 2018 and would be followed by lengthy laboratory analysis.

“I will seek to identify and deal with whatever offences come to light during that investigation,” he said.

“The kind of stuff that I would envisage we may come across would involve offences perhaps of fraud, misconduct offences, health and safety breaches, breaches of fire safety regulations and of course offences of manslaughter whether that be on a corporate or an individual level,” he added.

However, Bonner said this should not be taken as an indication that police had already found evidence to support any such charges.

The building, which was completed in 1974, was owned by the borough of Kensington and Chelsea, one of London’s richest, and managed by an organization that ran social housing on the borough’s behalf.

Bonner said police had so far identified 336 companies or organizations that were involved in the construction, refurbishment and management of the tower and officers had recovered as many as 31 million documents from all of those.

Police were now also investigating allegations of thefts from some of the less damaged flats in the lower levels of the building. There had been one confirmed theft of a considerable amount of money from one of the flats and three further allegations of theft, they said.

The thefts had come to light when former residents had been let into their apartments to pick up treasured possessions and say goodbye to their homes. Cundy said police had been shocked.

“All of us here, working down on Grenfell Tower or working on it anywhere, are just so disappointed that something like that can happen on the back of such a huge tragedy,” he said.

(Reporting by Estelle Shirbon; editing by Stephen Addison)

British police arrest man in hunt for London bombers

British police arrest man in hunt for London bombers

By Kate Holton

LONDON (Reuters) – British police arrested an 18-year-old man in the southern port of Dover on Saturday in a “significant” development in the hunt for the culprits behind a London commuter train bombing that injured 30 people a day earlier.

Prime Minister Theresa May put Britain on the highest security level of “critical” late on Friday, meaning an attack may be imminent, and deployed soldiers and armed police to secure strategic sites and hunt down the perpetrators.

In the fifth major terrorism attack in Britain this year, the home-made bomb shot flames through a packed commuter train during the Friday morning rush hour in west London but apparently failed to detonate fully.

The militant group Islamic State claimed responsibility.

“We have made a significant arrest in our investigation this morning,” said Neil Basu, Senior National Co-ordinator for Counter Terrorism Policing.

“This arrest will lead to more activity from our officers,” he said, suggesting there could be more arrests and house raids to come. “For strong investigative reasons we will not give any more details on the man we arrested at this stage.”

The arrest was made in the port area of Dover, where passenger ferries sail to France.

According to media reports, the bomb was attached to a timer unlike recent blasts which have typically been suicide bombs.

Pictures showed a slightly charred white plastic bucket with wires coming out of the top in a supermarket shopping bag on the floor of a train carriage.

The Parsons Green station where the attack took place had reopened by Saturday morning.

Armed police patrolled the streets of London near government departments in Westminster and were expected to guard the Premier League soccer grounds hosting matches on Saturday, including the national stadium of Wembley.

In the entertainment and cultural district on the south bank of the Thames, Cressida Dick, Britain’s top police officer, sought to reassure the public and tourists as she joined colleagues patrolling the area.

“Yesterday we saw a cowardly and indiscriminate attack which could have resulted in many lives being lost,” she said. “London has not stopped after other terrible attacks and it will not stop after this one.”

CRITICAL THREAT LEVEL

The last time Britain was put on “critical” alert was after a suicide bomber killed 22 people, including children, at an Ariana Grande concert in Manchester in May.

The threat level remained at the highest setting for four days while officers raced to establish if the man had worked alone or with the help of others. Prior to that it had not been triggered since 2007.

Prime Minister May said the public should not be alarmed by armed officers on the streets, a rare sight in Britain. “This is a proportionate and sensible step which will provide extra reassurance and protection while the investigation progresses,” she said in a televised statement late on Friday.

The bomb struck as passengers were traveling to the center of the British capital. Some suffered burns and others were injured in a stampede to escape from the station, one of the above-ground stops on the underground network. Health officials said none was thought to be in a serious condition.

With Britain on high alert after a spate of attacks this summer, witnesses recalled their horror.

“I was on the second carriage from the back. I just heard a kind of ‘whoosh’. I looked up and saw the whole carriage engulfed in flames making its way toward me,” Ola Fayankinnu, who was on the train, told Reuters.

“There were phones, hats, bags all over the place and when I looked back I saw a bag with flames.”

The Islamic State militant group have claimed other attacks in Britain this year, including two in London and the pop concert in Manchester.

It was not immediately possible to verify the claim about Parsons Green, for which Islamic State’s news agency Amaq offered no evidence.

Western intelligence officials have questioned similar claims in the past, saying that while Islamic State’s jihadist ideology may have inspired some attackers, there is scant evidence that it has orchestrated attacks.

(Reporting by Kate Holton; editing by David Clarke)

London fire inquiry starts amid anger, despair of survivors

Demonstrators gather outside the Grenfell Tower public Inquiry in central London, Britain, September 14, 2017. REUTERS/Mary Turner

By Estelle Shirbon

LONDON (Reuters) – A public inquiry into a fire that killed at least 80 people at London’s Grenfell Tower will get to the truth about the tragedy, its chairman pledged on Thursday, but critics said survivors of the blaze were still being failed.

The 24-storey social housing block, home to a poor, multi-ethnic community, was gutted on June 14 in an inferno that started in a fourth-floor apartment in the middle of the night and quickly engulfed the building.

Grenfell Tower was part of a deprived housing estate in Kensington and Chelsea, one of the richest boroughs in London, and the disaster has prompted a national debate about social inequality and government neglect of poor communities.

The inquiry started with a minute’s silence to honor the victims, whose exact number remains unknown because of the devastation inside the tower.

“(The inquiry) can and will provide answers to the pressing questions of how a disaster of this kind could occur in 21st century London,” its chairman, retired judge Martin Moore-Bick, said in his opening statement.

He said the inquiry was not there to punish anyone or to award compensation, but to get to the truth. A separate police investigation is underway, which could result in manslaughter charges. There have been no arrests.

The inquiry will examine the cause and spread of the fire, the design, construction and refurbishment of the tower, whether fire regulations relating to high-rise buildings are adequate and whether they were complied with. It will also look at the actions of the authorities before and after the tragedy.

But critics warned of a disconnect between the technical, legalistic inquiry process and the ongoing ordeal of traumatized former Grenfell Tower residents still awaiting new homes.

Prime Minister Theresa May pledged that all families whose homes were destroyed in the fire would be rehoused within three weeks, but three months later most still live in hotels.

Just three out of 197 households that needed rehousing have moved into permanent homes, while 29 have moved into temporary accommodation.

“We lost everything. It’s difficult for the other people to be in our shoes,” Miguel Alves, who escaped his 13th-floor apartment in Grenfell Tower with his family, told the BBC.

“Now I’m without anything, I’m in the hotel, I have to cope with my family. My daughter, she just started school. They need some stability and that I cannot give to my family,” he said.

FILE PHOTO: The spire of the Notting Hill Methodist Church stands in front of Grenfell Tower, destroyed in a catastrophic fire, in the Royal Borough of Kensington and Chelsea, in London, Britain July 2, 2017. REUTERS/Peter Nicholls/File Photo

FILE PHOTO: The spire of the Notting Hill Methodist Church stands in front of Grenfell Tower, destroyed in a catastrophic fire, in the Royal Borough of Kensington and Chelsea, in London, Britain July 2, 2017. REUTERS/Peter Nicholls/File Photo

“BALLROOM DRIPPING WITH CHANDELIERS”

Emma Dent Coad, a member of parliament from the opposition Labour Party who represents the area, said the inquiry’s remit was too narrow and would fail to address the blaze’s deeper causes such as failings in social housing policies.

She also criticized the choice of venue for Moore-Bick’s opening statement, a lavishly decorated room in central London.

“We were sitting in a ballroom dripping with chandeliers. I think it was the most incredibly inappropriate place to have something like that, and actually says it all about the us-and-them divide that people see,” she told the BBC.

Many of those affected have also expressed disquiet about the fact that Moore-Bick and the other lawyers appointed to run the inquiry are all white and part of a perceived “establishment” far removed from their own circumstances.

“The experience of many residents of that tower is that they were ignored because of their immigration status,” lawyer Jolyon Maugham, who is advising some residents, told the BBC.

“We need someone on the inquiry team that can speak to that experience and at the moment on the panel we have a bunch of white privileged barristers,” he said.

One of the difficulties facing the inquiry is that it needs former residents to give evidence but some fear possible deportation.

The government has said it would grant a 12-month amnesty to anyone affected by the fire who was in Britain illegally. Supporters say only permanent residency rights will persuade people to come forward.

(Reporting by Estelle Shirbon and Elisabeth O’Leary; editing by Stephen Addison and Matthew Mpoke Bigg)

France says powers must impose transition on Syrians, no role for Assad

French Foreign Minister Jean-Yves Le Drian attends a conference of Italian ambassadors in Rome, Italy July 24, 2017.

By John Irish

PARIS (Reuters) – France’s foreign minister said on Friday he wanted major powers to agree on a transition plan that would be imposed on Syrians, but ruled out any role for President Bashar al-Assad, who he said had “murdered” part of his population.

Jean-Yves Le Drian’s comments come despite what has appeared to be a softening in Paris’ position since the arrival of President Emmanuel Macron.

Macron’s election victory gave Paris, which is a key backer of the Syrian opposition and the second-largest contributor to the U.S.-led coalition fighting Islamic State, a chance to re-examine its Syria policy.

Macron proposed dropping demands Assad step down as a pre-condition for talks, although French officials still insist he cannot be the long-term future for Syria.

Le Drian, defence minister under former president Francois Hollande, said the anticipated defeat of Islamic State militants meant there was an opportunity for a compromise. More than 300,000 people have died in six years of fighting and millions more have fled Syria.

“He (Assad) cannot be part of the solution. The solution is to find with all the actors a calendar with a political transition that will enable a new constitution and elections,” Le Drian told RTL radio.

“This transition cannot be done with Bashar al-Assad who murdered part of his population and who has led millions of Syrians to leave” their homeland, he said.

Critics accused the Hollande administration of intransigence over Assad’s future, although it later said Assad would have to leave only once a transition process was complete.

 

CONTACT GROUP

That position has put France at odds with Russia and Iran, who back Assad and say the Syrian people should decide their own future.

While Britain has said Assad must go, diplomats say the administration of U.S. President Donald Trump has yet to outline a vision for a political process in Syria and is focusing primarily on defeating Islamic State and countering Iran.

Syria's President Bashar al-Assad speaks during an interview with AFP news agency in Damascus, Syria in this handout picture provided by SANA on April 13, 2017.

FILE PHOTO: Syria’s President Bashar al-Assad speaks during an interview with AFP news agency in Damascus, Syria in this handout picture provided by SANA on April 13, 2017. SANA/Handout via REUTERS

The U.N. Security Council has already adopted a Syria transition roadmap and two diplomats said the latest French idea was to get the five permanent members of the council – Britain, China, France, Russia and the United States – to agree first how to move forward.

The Security Council would then bring into fold the main regional powers, although diplomats said it was pointless without Iran’s involvement. There were also questions on how to win U.S. support given the Trump administration’s staunch anti-Iranian position.

“That’s what we want to do now even before Assad leaves. We do that independently because if we wait for the Syrians to agree we will wait a long time and there will be thousands more dead,” Le Drian said.

Macron has said the initiative would begin to see light during the U.N. General Assembly in mid-September.

Le Drian has previously said the contact group would aim to help U.N.-brokered peace talks in Geneva. They have stalled in large part due to the weakness of opposition groups and the Assad government’s refusal to enter substantive negotiations, given its strong position on the ground.

The last major international attempt to resolve the crisis ended in failure when the International Syria Support Group, which included Iran, was disbanded after Syrian government forces retook the rebel stronghold of Aleppo in 2015.

 

(Reporting by John Irish; Editing by Jon Boyle)

 

After North Korea missile, Britain and Japan agree closer security ties

British Prime Minister Theresa May (3rd L) and members of Japan's National Security Council pose for the media prior to their meeting at Japan's Prime Minister Shinzo Abe's official residence in Tokyo on August 31, 2017. (L-R) Defense Minister Itsunori Onodera, Chief Cabinet Secretary Yoshihide Suga, British Prime Minister Theresa May, Prime Minister Shinzo Abe, Deputy Prime Minister and Finance Minister Taro Aso, Foreign Minister Taro Kono, and Shotaro Yachi, head of the National Security Council. REUTERS/Kazuhiro Nogi/Pool

By William James

TOKYO (Reuters) – Britain and Japan said on Thursday they would cooperate in countering the threat posed by North Korea, two days after it fired a missile over northern Japan, and will call on China to exert its leverage.

Prime Minister Theresa May, looking to strengthen relations with one of her closest allies ahead of Brexit, is visiting Japan as it responds to an increasing military threat.

Terming North Korea’s missile program “a global threat”, Prime Minister Shinzo Abe told a news conference that Japan and Britain would cooperate.

“It is very meaningful that Prime Minister May and I agreed to further strengthen pressure on North Korea and to call on China to play a larger role,” he added.

May agreed, noting that China, North Korea’s lone major ally, had been involved in U.N. Security Council debate earlier this week.

“China does have a particular position in this, they have leverage on North Korea and I believe we should be encouraging China to exercise that leverage to do what we all want – which is to ensure that North Korea is not conducting these illegal acts.”

May toured Japan’s flagship Izumo helicopter carrier for a military briefing with Minister of Defence Itsunori Onodera before attending a national security meeting.

May and Abe agreed on a joint declaration on security cooperation, including plans for British soldiers to take part in military exercises on Japanese soil and for collaboration to address the threat of cyber and militant attacks when Japan hosts the Olympics in 2020.

North Korea featured heavily in the talks after it launched a ballistic missile on Tuesday that passed over Japanese territory, prompting international condemnation.

May’s office had said the two leaders were expected to discuss the possibility of further sanctions on North Korea, but neither Abe nor May touched on the issue at the news conference.

The Global Times, a publication of the official People’s Daily of China’s ruling Communist Party, criticized an earlier comment of May’s comment calling for more pressure from China.

“Beijing does not need London to teach it how to deal with North Korea,” the newspaper said.

Asked about the United States, Japan and Britain looking to impose new sanctions on North Korea, Chinese Foreign Ministry spokeswoman Hua Chunying said the situation could only be resolved peacefully through dialogue.

“We think it is regrettable that some countries selectively overlook the relevant Security Council resolutions’ demand to advance dialogue, and stubbornly emphasize pressure and sanctions,” she told a daily news briefing.

‘OUTWARD-LOOKING’

Apart from security, May’s trip has focused on trade and investment. She is keen to convince nervy investors that Britain’s exit from the European Union will not make it a less attractive business partner.

Both May and Abe addressed a delegation of British business leaders and senior representatives from major Japanese investors in Britain, such as carmakers Nissan, Toyota and conglomerate Hitachi.

Abe told the gathering that May had assured him Britain’s negotiations on leaving the European Union would be transparent.

May said Japanese investment after Britain’s vote to leave the EU was a vote of confidence and she pledged to build close trade ties with Japan.

“I very much welcome the commitment from Japanese companies such as Nissan, Toyota, Softbank and Hitachi,” May said.

“I am determined that we will seize the opportunity to become an ever more outward-looking global Britain, deepening our trade relations with old friends and new allies.”

During a two-hour train ride between Kyoto and Tokyo late on Wednesday, the two leaders discussed Brexit, with May talking Abe through the details of a series of papers published in recent weeks setting out her negotiating position.

May said on Wednesday Japan’s upcoming trade deal with the EU could offer a template for a future Japan-Britain trade agreement, the latest attempt to show investors that Brexit will not lead to an overnight change in business conditions.

Japan has been unusually open about its concerns over Brexit, worrying that 40 billion pounds ($51.68 billion) of Japanese investment in the British economy could suffer if trading conditions change abruptly when Britain leaves the bloc.

(Additional reporting by Tim Kelly, Elaine Lies, Linda Sieg, Kiyoshi Takenaka and Takashi Umekawa, and Michael Martina in BEIJING; Editing by Clarence Fernandez, Robert Birsel and Nick Macfie)

EU urges swifter Brexit talks as London seeks ‘flexibility’

Britain's Secretary of State for Exiting the European Union David Davis (L) and European Union's chief Brexit negotiator Michel Barnier talk to the media, ahead of Brexit talks in Brussels, Belgium August 28, 2017. REUTERS/Francois Lenoir

By Gabriela Baczynska and Alastair Macdonald

BRUSSELS (Reuters) – The European Union’s chief negotiator Michel Barnier said on Monday he was concerned at the slow progress of Brexit talks, while his British counterpart David Davis called for “imagination and flexibility” to move on.

British officials arrived in Brussels on Monday hoping to push the EU toward talks about their post-Brexit ties, which the bloc refuses to launch until there is agreement on London’s exit bill and other pressing “divorce” matters, including the rights of EU citizens in Britain after March 2019.

“To be honest, I am concerned. Time passes quickly,” Barnier told reporters as he welcomed Davis back for a new round of talks. The third formal session since the process began in June, it is due to wind up on Thursday.

“We must start negotiating seriously,” Barnier said. “The sooner we remove the ambiguity, the sooner we will be in a position to discuss the future relationship.”

He welcomed a series of proposals London made over the summer break, but made clear they fell short of what EU leaders want to see before they will agree to open negotiations on the future free trade agreement the British government wants.

Impatient with the structure of talks agreed among the 27 other states and now binding Barnier’s negotiators, the British position papers made frequent reference to a future relationship with the EU rather than just the immediate task of bringing legal clarity for people and business when Britain leaves.

“The UK government has published a large number of papers covering important issues related to our withdrawal and our vision for a deep and special partnership,” Davis said.

“We want to lock in the points where we agree, unpick the areas where we disagree and make further progress on the whole range of issues,” he added.

To do that would require “flexibility and imagination from both sides”, he said.

But the EU wants to settle the major separation issues of ensuring expatriate rights, agreeing a divorce bill and squaring the circle of the future Irish border before jumping into talks about post-Brexit ties with London.

“The EU 27 and the European Parliament are united. They will not accept that separation issues are not addressed properly,” Barnier said. “I am ready to intensify negotiations over the coming weeks in order to advance.”

British officials took a relaxed view of Barnier’s implied criticisms, noting it was a familiar line from the former French minister, and dismissed a suggestion talks were going badly.

 

NO BREAKTHROUGH EXPECTED

The EU has already signaled that the slow progress so far has made talks about a new accord with Britain less likely to start after an EU summit in October, as had been hoped.

The EU and Britain seem far apart on agreeing how much London should pay the bloc on departure to account for previous commitments.

The Irish issue is extremely delicate because of the history of political violence there, as well as the complex economic consequences of Brexit.

Dublin said on Monday much of the future border arrangements between Northern Ireland and Ireland could be solved before Brexit talks enter the next phase.

Neither side expects major breakthroughs this week in talks aimed at unraveling more than 40 years of union. Neither seems ready for major political concessions at this stage.

An EU official said it was “clearly worrying that we have major differences of core issues … with very little time to land all this, even if Britain moves”.

Britain’s opposition Labour Party on Sunday offered an alternative to the policy pursued by Conservative Prime Minister Theresa May by saying it would stay in the European single market for a transitional period after Brexit.

The British and German chambers of commerce together urged negotiators on Monday to start talks about future trading relations, and particularly customs arrangements, swiftly.

Writing in Le Monde in his native France, Barnier said the EU and Britain must remain allies for their common defense: “The Union of 27 and the United Kingdom will have to join forces to stand up to common threats,” he said.

“The security of our citizens cannot be haggled over.”

 

(Additional reporting by Philip Blenkinsop and Jan Strupczewski; editing by Andrew Roche)

 

Slow divorce risks leaving future Britain-EU ties in limbo

FILE PHOTO: A worker arranges flags at the EU headquarters as Britain and the EU launch Brexit talks in Brussels, June 19, 2017. REUTERS/Francois Lenoir/File Photo

By Gabriela Baczynska

BRUSSELS (Reuters) – Divisions between Britain and the EU over mapping out their divorce will be laid bare in Brussels next week when the two sides meet for another round of talks whose timetable already looks tight.

Expectations of a breakthrough are minimal. London wants to focus on what happens after Brexit but the bloc says more ground must first be covered on settling the terms of departure, including the bill, leaving dozens of officials to pick their way through a diplomatic minefield from Monday to Thursday.

The 27 remaining EU states are also insisting on making headway on expatriate rights and the future status of the Irish border before declaring the “sufficient progress” that would allow them to broach talks about Britain’s future relationship with the EU.

Time is limited for negotiations, which started in June and should conclude before the expected Brexit date of March 2019. Otherwise Britain risks leaving the EU unclear on what happens next.

“There are no major expectations as regards next week’s round. The documents published by Britain (this week) refer more to the future relationship than the things to settle in the first place,” an EU diplomat said.

“Many matters, including the financial aspect most importantly, remain unclear from the British side… which makes any ‘significant progress’ less likely in (subsequent negotiations in) October.”

Talks have been slowed by an ill-judged snap election called by Prime Minister Theresa May that weakened her governing Conservative Party and exposed rifts among her ministers over what sort of Brexit they would seek.

Position papers released this week have made clear London will look to closely replicate many of its existing arrangements as an EU state after it leaves.

But the EU wants much more detail on the three priority areas before moving on to anything else.

“We won’t be talking about the future during this round,” an EU official said. “We need detail, the withdrawal deal …has to be a legal text.”

One key point of contention is London’s desire, reaffirmed this week, to break free from the jurisdiction of the EU’s top court, the European Court of Justice (ECJ).

For the EU, ensuring the ECJ can police the withdrawal and continue to have the final say in disputes involving EU citizens residing in Britain – and Britons living in the EU – is essential.

The bloc gave short shrift to what May called an initial “generous offer” on citizens’ rights, saying more detailed legal assurances were necessary.

While there is some common ground, sources on both sides say more technical work is needed. For a graphic, please see: http://tmsnrt.rs/2tws2uK

TIME IS MONEY

But the issue of money is seen by both sides as the hardest nut to crack for now. The EU has floated a divorce bill of around 60 billion euros ($71 billion), which London has dismissed as far too high.

“We should pay not a penny more, not a penny less of what we think our legal obligations amount to,” Britain’s foreign minister Boris Johnson said on Friday.

The bloc hopes to agree a formula with Britain for calculating the figure and sees that too as a precondition to moving to any talks about post-Brexit arrangements.

Without that, the EU has said the talks risk stalling and its chief Brexit negotiator Michel Barnier has already warned time is running out.

But British negotiators have said they will go “line by line” through the EU’s financial expectations and reiterate next week they see the EU’s sum as excessive.

“I would not want to get hopes up that we will see a breakthrough on this issue next week,” said a senior EU official involved in the talks.

“If you look at where we are and where we need to be, the gap is big. I say that in the next round it is unlikely we will make major progress in closing that gap.”

Some pieces of the puzzle should however start falling into place in more talks next month, sources said. This could include a political agreement on the future border between Britain and EU state Ireland.

Technical arrangements around the border would only come in the second phase of talks, as they would largely depend on the nature of future bilateral relationship, including customs arrangements.

A senior EU official warned Britain not to use the North Irish peace process as a bargaining chip, adding that the British government papers showed a lot of “magical thinking” about how the border could function in future.

While opening “phase two” talks had initially been expected in October, Barnier has already signaled this is now less likely to happen. London has said it was still confident the EU would move towards discussing future relations by October. ($1 = 0.8470 euros)

(Additional reporting by Philip Blenkinsop, Julia Fioretti, Robert-Jan Bartunek, Writing by Gabriela Baczynska, Editing by John Stonestreet)

UK banks behind schedule in post-Brexit preparations: ECB

Sabine Lautenschlaeger attends at a news conference at the ECB in Frankfurt October 26, 2014. REUTERS/Ralph Orlowski

FRANKFURT (Reuters) – British-based banks seeking to relocate to the European Union before Britain leaves the bloc are behind schedule in their preparations for the move, a European Central Bank supervisor said on Wednesday.

International banks based in London risk losing access to the EU’s single market once Britain leaves it in 2019, forcing many to consider moving parts of their businesses to the bloc and seek a license from the ECB, the sector’s watchdog.

But Sabine Lautenschlaeger, who represents the ECB’s supervisory arm on the central bank’s board, said progress had been slower than hoped.

“Frankly, the banks are not as far advanced as we would like them to be,” Lautenschlaeger said in a newsletter article.

“Of the banks that have indicated an interest in relocating operations to the euro area, a number of the larger banks have made progress in their planning. But we have not seen many final decisions yet.”

She added the ECB would not grant licenses to “empty shells” and would take a tough stance on “back-to-back transactions”, where a bank would conduct trades out of its EU base but process and risk manage them at its London office.

“While we do not rule out this practice per se, ultimately we expect banks to manage relevant parts of their risks locally and independently,” Lautenschlaeger said.

Lautenschlaeger also said she expected banks moving to the EU to update their recovery plans, which kick in if they fail, “shortly” after moving.

(Reporting By Francesco Canepa; Editing by Angus MacSwan)

UK announces fire safety review after tests identify 82 unsafe tower blocks

A man looks at floral tributes for the victims of the Grenfell Tower fatal fire, in London, Britain July 15, 2017. REUTERS/Tolga Akmen

LONDON (Reuters) – Britain announced a review of building and fire safety rules on Friday after tests conducted following last month’s deadly tower block blaze in London found a cladding system known to be used on 82 buildings breached regulations.

Police have said they believe the system of insulation and cladding panels added during a refurbishment of Grenfell Tower may have contributed to the rapid spread of the fire in which 80 people died.

After initial testing highlighted potential fire risks in buildings across the country, a second, more extensive round of tests found a specific cladding system known to be in use on 82 buildings did not meet building regulations, the government said in a statement.

Alongside the release of the test results, ministers ordered an independent review of building regulations and fire safety.

“It’s clear we need to urgently look at building regulations and fire safety,” communities minister Sajid Javid said in a statement. “This independent review will ensure we can swiftly make any necessary improvements.”

The review will look at the existing regulatory system, compliance and enforcement of the regulations, and will draw on similar regulations overseas.

Friday’s results are the first to be published from six sets of tests involving three different types of aluminium composite material combined with two different types of insulation.

The government said immediate action was already underway to ensure the safety of residents in the affected buildings, without giving further details.

The BBC reported on Thursday that police investigating the fire believe there are grounds to suspect that corporate manslaughter may have been committed by the local council.

(Reporting by William James,; editing by Kylie MacLellan and Ed Osmond)