Osborne: Recovery will be choppy

George Osborne admits that Britain's economic recovery will be "choppy", but insisted there is light at the end of the tunnel.

The Chancellor said there are grounds for "cautious optimism" over the country's prospects, despite figures showing CPI inflation still above target at 3.1%.

But he also warned the situation could deteriorate quickly if the Government goes into "denial" over the scale of its deficit, and does not follow through on tough spending curbs.

Speaking at Bloomberg's London offices, Mr Osborne said: "Here in Britain we can start to be cautiously optimistic about the economic situation.

"GDP growth in the second quarter surpassed expectations at 1.1%, with all but 0.2% of that coming from the private sector.

20 cannabis factories found a day

More than 6,800 cannabis farms and factories were discovered by police in the UK last year, figures have shown.

A report by the Association of Chief Police Officers (Acpo) said almost 20 commercial cannabis factories were being found by police every day, taking the total for 2009/10 to 6,886 - more than double the 3,032 discovered two years ago, and more than eight times the annual average between 2004 and 2007.

Commander Allan Gibson, the Acpo lead on cannabis, said the findings came as no surprise and the rise was in part down to an increased focus on the issue by the authorities.

Briton denies selling arms to Iran

A retired British businessman has denied allegations he sold arms to Iran and said he was "the victim of unlawful conduct by US agents".

Christopher Tappin, 63, from Orpington, Kent, will face an extradition hearing in two weeks' time which will decide if he will be sent to the US to face charges.

At a press conference in central London, Mr Tappin said: "Even though I am certain I did nothing wrong I would be happy to face trail in the United Kingdom and not the USA. I live here with my family and the alleged crimes were committed here.

"My wife suffers from Churg-Strauss syndrome, which is a very serious condition and she needs my constant support and attention."

Triple funeral to be held on Friday

The funeral for three children found dead in their home will be held on Friday.

Eight-year-old twins Austin and Luke Riggi and their five-year-old sister Cecilia were found in a townhouse in Edinburgh on August 4 following reports of an explosion.

Their mother Theresa Riggi, 46, who is being treated in hospital after apparently falling from a second-floor balcony, has been charged with their murder.

Prayers will be said for the youngsters at St Mary's Cathedral in Aberdeen followed by a private service at the city's crematorium.