Mousavi Urges Mass Iran Rally

Iran's opposition leader has reportedly called for a mass rally on Thursday in a direct challenge to the nation's Supreme Leader Ayatollah Ali Khamenei.

Defeated presidential candidate Mirhossein Mousavi is apparently urging his supporters to keep protesting over a disputed election and the alleged deaths of demonstrators.

Darling: 'UK Economy On The Mend'

Chancellor Alistair Darling has said there is "growing evidence" Government measures have stabilised the banking system and the economy.

Giving a speech at Mansion House to the City, Mr Darling said he was "confident" there will be a sustained recovery in the UK economy.

Junior Minister Resigns From Govt

Junior Treasury minister Kitty Ussher has resigned from the Government, saying she did not want to "embarrass" Gordon Brown.

Her decision to step down follows allegations over her claims for parliamentary expenses.

In a letter to the Prime Minister, the Burnley MP said she had not abused the expenses system, but did not want to cause "any embarrassment" to him or his Government.

The Daily Telegraph reported last month that within months of being elected in 2005, Ms Ussher asked the Commons authorities to fund extensive refurbishment of her Victorian family home in South London, including the removal of a "bad taste" Artex ceiling.

Further revelations about Ms Ussher's expenses are expected to be published in Thursday's Daily Telegraph.

Ms Ussher was moved to the post of Exchequer Secretary to the Treasury just 12 days ago in Mr Brown's most recent reshuffle.

She had previously served in a more junior role at the Treasury before spending nine months at the Department for Work and Pensions.

Explaining her decision to quit, she said: "I arrived at this decision because I do not want to cause you or the Government any embarrassment.

"I did not do anything wrong. At all times, my actions have been in line with HM Revenue and Customs guidance and based on the advice of a reputable firm of accountants who in turn were recommended to me by the House of Commons Fees Office.

"Neither have I abused the allowance system of the House of Commons in any way."

She added: "I support your leadership and am 100% loyal to the Labour Party which is why I do not wish to cause you or the party any difficulties."

Ms Ussher, 38, who has two children aged under five, said she had come to the decision "some time ago" to leave Parliament at the next election for family reasons.

She said in today's letter: "The hours of Parliament simply don't work with the kids. There is no other reason for this decision."

Downing Street announced that Portsmouth North MP Sarah McCarthy-Fry was being moved to the Treasury to replace Ms Ussher.

MsMcCarthy-Fry has only been in her current job at the Department for Communities and Local Government for less than a fortnight.

She was given responsibility for local democracy and council finance in the recent reshuffle.

A No 10 spokesman said: "The Prime Minister has accepted the resignation of Kitty Ussher.

"Sarah McCarthy-Fry has been appointed as her replacement. A successor to Ms McCarthy-Fry will be announced in due course."

King Calls On Govt To Tackle Debt

The Governor of the Bank of England has said the Government must produce a plan to repay national debt.

At his annual Mansion House speech to the City, Mervyn King said politicians need to get serious about tackling public borrowing.

He said: "Five years from now national debt, as a proportion of national income, is expected to be more than double its level before the crisis.

Brown Slams NI Violence As Romanian Immigrants Flee Homes

Gordon Brown has condemned the racist attacks which forced more than 100 Romanian immigrants to flee their homes in Belfast, Northern Ireland.

Frightened men, women and children, including a five-day-old baby girl, had to take refuge in a local church on Tuesday night after they were targeted by thugs.