Mr Clegg urged a new relationship between government and the City

Liberal Democrat leader Nick Clegg has pledged to tackle "bad practice" in the City of London as he outlined plans for a better system of regulation.

He said he wanted his to be the "party that the City can trust" but said "more intelligent" regulation was needed to prevent "boom and bust excesses".

His planned reforms include some to rein in the bonus culture and pay.

He also backs bringing house prices within the official inflation index and making bank charge more transparent.

Outlining his New Deal for the finance industry, Mr Clegg said excessive pay and bonuses could lead to a "culture of greed and gambling".

'Binge lending'

He said the increasing wealth of the City of London had produced "few visible positive spillovers" for neighbouring areas and little benefit to "provincial Britain".

He said: "The credit crunch has exposed a major contradiction within UK banking - an industry which simultaneously presents itself as fiercely competitive and entrepreneurial but then runs to the government to be bailed out in times of difficulty."

He said the Thatcher government's "big bang" reforms had created innovation, but had also led to a boom-bust cycle of "binge lending", followed by negative equity and repossessions.

Mr Clegg said the City of London was "one of the most dynamic and creative parts of the British economy" but was "by no means perfect".

"For too long, the government has refused to stand up to or consult with the City when there are problems," he said.

"I want the Liberal Democrats to be the party that the City can trust, but also the party that will take on injustices and bad practice, for the benefit of the country and the economy as a whole."

Mr Clegg says the international community can not "stand idly by"

Aid should be parachuted into Burma within the next two or three days - whether the authorities there like it or not, says Lib Dem leader Nick Clegg.

Burma's military-run government is refusing to let most aid workers over the border of the cyclone-hit state.

Tim Costello, of World Vision charity, said staff had "literally overflowed in tears" for not being allowed to help.

But International Development Secretary Douglas Alexander said acting without permission would be "incendiary".

'United front'

Prime Minister Gordon Brown has also condemned the actions of the Burmese government and said he was "determined" that aid would get through.

I think the time is now coming, drawing very close to taking the most drastic step of all, which is dropping aid directly into Burma Lib Dem leader Nick Clegg 'No British casualties' in Burma

He said: "There are children going without food, there are people without shelter.

"It is utterly unacceptable that when international aid is offered, the regime will try to prevent that getting in."

Mr Alexander told BBC 2's Newsnight on Thursday the "best way forward" was not unilateral action but an international "united front" to win access for aid agencies.

"Our responsibility is to make sure that our sole focus is getting the aid to the people who desperately need it."

'Important step'

He said carrying out forced air-drops of supplies would be the wrong action to take.

But Mr Clegg said the United Nations had a right to step in when governments failed to protect their own people.

The Lib Dem leader told BBC Radio 4's The World at One: "I think the time is now coming, drawing very close to taking the most drastic step of all, which is dropping aid directly into Burma, irrespective of the wishes of the Burmese regime.

"This, of course, in practical terms is not an ideal solution because you're dropping aid from the air, it doesn't guarantee it gets to the people who need it.

"But I think it would be an important step to show that the international community is simply not going to stand idly by."

The World Food Programme (WFP) has halted aid shipments to Burma after the contents of its first delivery were impounded on arrival in the military-ruled country.

The UN body says the Burmese government seized tonnes of aid material flown in to help victims of Cyclone Nargis, which has killed tens of thousands.

The WFP said it had no choice but to halt aid until the matter was resolved.

Speaking at a press conference in London, representatives from the Red Cross, Save the Children and medical relief agency, Merlin, said access was severely restricted, but some aid was getting through.

A Merlin spokeswoman said they had been able to provide some medical supplies, and that a boat was ready to provide hospital facilities, but that there was now great danger from malaria, dengue fever and snake bites.

Save the Children said they were reaching a extra 10,000 people each day with a basic life saving response kit of bottled water, food, plastic sheeting and blankets.

'Flowing funds'

The Red Cross said they were working through several thousand trained volunteers in the country and had been able to distribute about 2,000 family kits, which include items such as cooking pots and blankets.

Jasmine Whitbread, of charity Save the Children, said despite the obstructions, it was imperative people do not stop their donations for fear the funds and supplies will fall into the wrong hands.

She said: "Our concern is that people will start to doubt whether their donations are really getting there and making a difference.

"Our message is that we are reaching these people and we really desperately need the funds to continue flowing."

As of 1900 BST on Friday, donations from the UK had reached some £4m, said the Disasters Emergency Committee (DEC), which coordinates national fund raising at times of overseas emergency.

Lord Holme advised Liberal and Lib Dem leaders for almost 30 years

Senior Liberal Democrat Lord Holme has died at the age of 71 after a long illness, it has been announced.

The peer was the party's Northern Ireland spokesman in the 1990s and a close advisor to Sir Menzies Campbell, Paddy Ashdown and David Steel.

A family spokesman said: "Lord Holme of Cheltenham died yesterday at his home in Lurgashall, West Sussex, after a long battle with cancer."

He leaves his wife, Lady Holme, two sons, two daughters and grandchildren.

His family said the funeral will be held in the village church and a memorial service will take place in London at a later date.

'Liberal to the core'

Liberal Democrat leader Nick Clegg said Lord Holme had made a "huge contribution" to the party over many decades would be "greatly missed".

"His wisdom, kindness and advice were a great source of support for every party leader during that time," he said.

He was widely respected and shaped the course of British politics as no other non-elected Liberal has achieved Lord Ashdown, former Lib Dem leader

Lord Richard Holme was chairman of the 1997 Lib Dem election campaign, was made a privy councillor in 2000 and served as chairman of the Lords Constitution Committee.

He also became chairman of TV watchdog, the Broadcasting Standards Commission in 1999, but resigned after little more than a year over newspaper revelations about his private life.

Former party leaders have also been paying tribute to Lord Holme's contribution.

Lord Ashdown described him as "a man of outstanding talent, who was liberal to the core".

"He was widely respected and shaped the course of British politics as no other non-elected Liberal has achieved."

Sir Menzies described him as "one of the most perceptive analysts of politics in this country".

He said Lord Holme had advised Liberal and Liberal Democrat leaders for the best part of 30 years and his advice was "almost always right".

The Electoral Commission says local polls are more complex to organise

Polling stations have opened for elections to councils across Wales.

People can vote for the 22 county councils and many town and community councils from 0700 BST until 2200 BST.

About two million people are eligible to vote in elections which will help to decide how the larger councils spend nearly £20bn over the next four years.

The results will also be closely watched as a verdict on the performance of the main political parties, both at Westminster and in the Welsh assembly.

The new and re-elected councillors will take charge of key services such as schools, social services, recycling and refuse collection, leisure centres and planning.

Thousands of would-be county councillors are standing for more than 1,200 seats.

It's very straightforward but staff will explain what needs to be done Kay Jenkins, Electoral Commission

Most councils will start counting when polls close on Thursday, but others will leave it until Friday morning. That means that a full picture will not emerge until Friday afternoon.

Electoral Commission Wales head Kay Jenkins said local elections were the most complex to run because there were so many candidates and so many elections taking place at the same time.

She said people with postal votes who had not managed to send them off could still have their say on the day.

"If they've applied for a postal vote, they can't actually vote in person at a polling station," she said.

WHO RUNS WELSH COUNCILS Blaenau Gwent: Labour Bridgend: Liberal Democrat / Conservative / Plaid Cymru / Independent Caerphilly: Labour Cardiff: Liberal Democrat Carmarthen: Labour / Independent Ceredigion: Independent / Liberal Democrat / Labour Conwy: Independent / Conservative / Plaid Cymru / Liberal Democrat Denbighshire: Independent / Conservative / Plaid Cymru Flintshire: Labour Gwynedd: Plaid Cymru Merthyr: Labour / Independent Monmouth: Conservative Neath Port Talbot: Labour Newport: Labour Pembrokeshire: Independent Powys: Independent Rhondda Cynon Taf: Labour Swansea: Liberal Democrat / Independent Torfaen: Labour Vale of Glamorgan: Labour / Plaid Cymru / Independent Wrexham: Liberal Democrat-led Board Ynys Mon: Anglesey Forward / Radical Independents

She advised anyone with a postal vote who had not yet sent it in to seal it and take it to the polling station.

Ms Jenkins also advised anyone who had applied for a postal vote and not received one to contact their local authority during the day for a replacement ballot pack, although they might have to go to the council offices to pick it up.

She said anyone planning to vote at their local polling station could do so without their polling card because they would simply be asked for their name and address.

Most local authorities have more councillors than they have electoral wards, because wards can be represented by as many as five councillors.

In a multi-member ward electing four councillors, for example, people would be able to cast four votes - or fewer, if they choose.

Ms Jenkins advised people to read the instructions on the ballot paper carefully to avoid confusion.

"If they feel confused at all, they should ask the polling station staff who will be able to tell them exactly how many candidates to vote for," she said.

"Some people, as well, will have two ballot papers because they may also be able to vote in the community council election.

"It's very straightforward, but staff will explain what needs to be done and there are instructions on the wall and the ballot paper."

Some authorities, such as Cardiff, are publishing the results ward-by-ward online.

Web: The BBC Wales News website - bbc.co.uk/walesnews - will provide continually updated coverage throughout Thursday and on Friday.

Radio: Radio Wales and Radio Cymru: Results programmes from 0030 to 0300 BST on Friday. Also on Radio 5 Live from 2200 to 0500 BST and Radio Four from 0000 to 0300 BST.

TV: Betsan Powys and Adrian Masters will provide regular updates from Wales on Election Night 2008 from 0005 to 0600 BST on BBC One Wales and the BBC News channel.