Parliament must vote on whether the government can start the Brexit process, the Supreme Court has ruled.

The judgement means Theresa May cannot begin talks with the EU until MPs and peers give their backing - although this is expected to happen in time for the government's 31 March deadline.
But the court ruled the Scottish Parliament and Welsh and Northern Ireland assemblies did not need a say.
Brexit Secretary David Davis promised a parliamentary bill "within days".
Sources have told the BBC the bill - to trigger Article 50 of the Lisbon Treaty and get formal exit negotiations with the EU under way - will be introduced this Thursday, with an expectation that it could pass through the House of Commons in a fortnight.
During the Supreme Court hearing, campaigners argued that denying the UK Parliament a vote was undemocratic and a breach of long-standing constitutional principles.
They said triggering Article 50 would mean overturning existing UK law, so MPs and peers should decide.
But the government argued that, under the Royal Prerogative (powers handed to ministers by the Crown), it could make this move without the need to consult Parliament.
And it said that MPs had voted overwhelmingly to put the issue in the hands of the British people when they backed the calling of last June's referendum in which UK voters backed Brexit by 51.9% to 48.1%.
Reading out the judgement, Supreme Court President Lord Neuberger said: "By a majority of eight to three, the Supreme Court today rules that the government cannot trigger Article 50 without an act of Parliament authorising it to do so."
He added: "Withdrawal effects a fundamental change by cutting off the source of EU law, as well as changing legal rights.
"The UK's constitutional arrangements require such changes to be clearly authorised by Parliament."
The court also rejected, unanimously, arguments that the Scottish Parliament, Welsh Assembly and Northern Ireland Assembly should get to vote on Article 50 before it is triggered.
Lord Neuberger said: "Relations with the EU are a matter for the UK government."
Outlining plans to bring in a "straightforward" parliamentary bill on Article 50, Mr Davis told MPs he was "determined" Brexit would go ahead as voted for in last June's EU membership referendum.
He added: "It's not about whether the UK should leave the European Union. That decision has already been made by people in the United Kingdom."
"There can be no turning back," he said. "The point of no return was passed on 23 June last year."
Outside the Supreme Court, Attorney General Jeremy Wright said the government was "disappointed" but would "comply" and do "all that is necessary" to implement the court's judgement.
A Downing Street spokesman said: "The British people voted to leave the EU, and the government will deliver on their verdict - triggering Article 50, as planned, by the end of March. Today's ruling does nothing to change that."
Foreign Secretary Boris Johnson, a leading Leave campaigner, tweeted:  "Supreme Court has spoken. Now Parliament must deliver will of the people - we will trigger A50 by end of March. Forward we go!"
Investment manager Gina Miller, one of the campaigners who brought the case against the government, said Brexit was "the most divisive issue of a generation", but added that her victory was "not about politics, but process".
"I sincerely hope that going forward that people who stand in positions of power and profile are much quicker in condemning those who cross the lines of common decency and mutual respect," she also said.
Her co-campaigner, hairdresser Deir Tozetti Dos Santos, said: "The court has decided that the rights attaching to our membership of the European Union were given by Parliament and can only be taken away by Parliament.
"This is a victory for democracy and the rule of law. We should all welcome it."
"The sighs of relief are real in Whitehall this morning for two reasons.
"The justices held back from insisting that the devolved administrations would have a vote or a say on the process. That was, as described by a member of Team May, the 'nightmare scenario'.
"And second, the Supreme Court also held back from telling the government explicitly what it has to do next. The judgement is clear that it was not for the courts but for politicians to decide how to proceed next.
"That means, possibly as early as tomorrow, ministers will put forward what is expected to be an extremely short piece of legislation in the hope of getting MPs to approve it, perhaps within a fortnight."  Read Laura's blog in full.
Labour leader Jeremy Corbyn said: "Labour respects the result of the referendum and the will of the British people and will not frustrate the process for invoking Article 50."
But he added that his party would "seek to amend the Article 50 Bill to prevent the Conservatives using Brexit to turn Britain into a bargain basement tax haven off the coast of Europe".
However, UKIP leader Paul Nuttall warned MPs and peers not to hamper the passage of the legislation.
"The will of the people will be heard, and woe betide those politicians or parties that attempt to block, delay, or in any other way subvert that will," he said.
The Scottish National Party said it would put forward 50 "serious and substantive" amendments to the government's parliamentary bill for triggering Article 50.
Among them, it wants Mrs May to set out her negotiating aims in an official document known as a white paper and to consult the Scottish government and other devolved administrations through the UK-wide joint ministerial committee.
Several Conservative MPs, including former ministers Alistair Burt, Nicky Morgan and Anna Soubry, also want a white paper, but former party leader Iain Duncan Smith predicted any bill would be "very tight", offering little scope for amendments.
Liberal Democrat leader Tim Farron said his MPs and peers would vote against Article 50 unless there was guarantee of the public having a vote on the final deal reached between the UK and EU.
"This momentous judgement is about one thing alone: the rule of law and how the UK, as a champion of that steady, calm form of government, gets on with the business of leaving the EU.
"But what it also makes clear is that membership of the EU is messy in constitutional terms - so only Parliament has the right to pull us out. It can't be done by the stroke of a minister's pen.
"On the devolution side, the government did however win hands down. The court unanimously ruled that the devolved bodies have no real say in leaving the EU: constitutional power - the means to change the fabric of the United Kingdom, rests with the UK Parliament alone."
The Supreme Court's judgement backs that made by the High Court last year, against which the government appealed.
Those who rejected the government's argument were: Lord Neuberger, Lady Hale, Lord Mance, Lord Kerr, Lord Clarke, Lord Wilson, Lord Sumption and Lord Hodge
Those who decided in favour of it were: Lord Carnwath, Lord Hughes and Lord Reed.
During the four-day Supreme Court hearing in December, the justices heard arguments that Northern Ireland had a unique place in the UK constitution because of the nature of the 1998 Belfast Agreement and the devolved bodies that flowed from it.
Counsel argued that Northern Ireland's constitution could not be changed without a vote by its people.
But in its judgement, the Supreme Court unanimously ruled that not only did the devolved bodies have no role in deciding the future of the UK as a whole in the EU, Northern Ireland had no special status beyond this either.
They ruled that, while Northern Ireland's people did indeed have a fundamental constitutional say on being part of the UK, that did not extend to being part of the EU.


United Utilities is to be prosecuted over water contamination that left up to 300,000 homeowners unable to drink tap water for more than three weeks.

The cryptosporidium bug was found at Franklaw water treatment works outside Preston on 6 August 2015.
The prosecution is being brought by the Drinking Water Inspectorate (DWI), which said the outbreak affected about 700,000 people in the area.
United Utilities said it took "a full and open role" during the DWI inquiry.
The firm faces three charges alleging it supplied water unfit for human consumption, it failed to properly disinfect supplies, and it failed to design and continuously operate an adequate treatment process.
The initial hearing will take place at Preston Magistrates Court on 30 June.
A spokesman for United Utilities said it had "complied with all requests for information" but "it would be inappropriate to comment further now until after the case has been concluded".
Homeowners in Blackpool, Chorley, Fylde, Preston, South Ribble and Wyre were advised to boil their drinking water after the microbial parasite was discovered in 2015.
The bug, which was found during routine tests, can cause diarrhoea and abdominal cramps.
Robert Light, northern chair for the Consumer Council for Water, said: "We are disappointed it has taken almost two years to reach this point and customers are still waiting for answers."


Bromley built on their exciting unbeaten start to the season with a win at home to struggling Hartlepool.

There was little to choose between the teams in the first half, but the Ravens led when Louis Dennis squared and Josh Rees side-footed his side in front from close range.
The same combination should have put Neil Smith's men two up early in the second half, but this time Rees blazed over from six yards.
Bromley did extend their lead on the hour though, when Luke Wanadio tried his luck from the edge of the area and it flew past Scott Loach.
Wanadio also hit the post as the hosts saw out the match comfortably.
Match report supplied by the Press Association.
Match ends, Bromley 2, Hartlepool United 0.
Second Half ends, Bromley 2, Hartlepool United 0.
Conor Newton (Hartlepool United) is shown the yellow card.
Substitution, Bromley. Frankie Raymond replaces Louis Dennis.
Substitution, Bromley. Brett Williams replaces George Porter.
Substitution, Hartlepool United. Devante Rodney replaces Nicky Deverdics.
Goal!  Bromley 2, Hartlepool United 0. Luke Wanadio (Bromley).
Nicky Featherstone (Hartlepool United) is shown the yellow card.
Second Half begins Bromley 1, Hartlepool United 0.
First Half ends, Bromley 1, Hartlepool United 0.
Substitution, Hartlepool United. Jonathan Franks replaces Louis Laing.
Goal!  Bromley 1, Hartlepool United 0. Josh Rees (Bromley).
Jake Cassidy (Hartlepool United) is shown the yellow card.
First Half begins.
Lineups are announced and players are warming up.


The Goa government might have had different plans, but a singing competition it announced last week, with a rider that the tunes had to be paeans to the government and its schemes, seems to have hit all the wrong notes, writes Pamela D'Mello.

The prominent advertisement for the "Konkani Kantaram Utsav" (Konkani song festival) announced by the BJP government's department of information and publicity, called for "songs based on achievements of the present government and emphasising the schemes implemented by this government for the welfare of the state".
The contest is co-hosted by the state-funded Tiatr Academy of Goa and is scheduled for 8 March.
But if dulcet, fawning odes is what they were after, the government could not have chosen a more inappropriate community to target.
"Konkani Kantaram" is the domain of an immensely popular and irreverent century-old Goan theatrical form, locally called tiatr.
The three-hour-long dramas that run to packed houses are equally famous for the songs or "cantars" (from the Portuguese word cantare, to sing) that are interspersed with set changes.
Hugely popular with wide fan followings, "cantarists" are known to pack a punch, whether they are singing about love, life or the latest socio-political issues from the morning's newspaper.
Many politicians have come to fear this on-stage skewering and governments, both past and present, have found themselves, and their policies, regularly held up to the satirical scrutiny of the cantarists.
Predictably, the latest government initiative has not been taken to very kindly.
"It is a subtle form of control. How can they dictate what we should sing about," Konkani stage singer and performer Sharon Mazarello told the BBC.
A former legislator from India's Congress party, Jitendra Deshprabhu, called it an affront to artistic freedom of expression.
"Tiatr and cantaram were born as anti-establishment avenues and they have stayed true to that. To try and make it an instrument of propaganda for the government, with monetary enticements, is to attempt to cripple this cultural instrument," he said.
Many stage artists are also not too enamoured with the idea and as the competition draws near, there have been editorials and letters in newspapers, asking them to spurn the contest and its prize money.
What is also ironic is the fact that the contest is the brainchild of the same government department that just a year ago justified censorship proposals for tiatrs  - a move that was quickly dropped after protests from the influential community and opposition parties.
The past few years have also seen heightened tensions with the authorities over the tiatr community's take on several controversial and unpopular government decisions, including the declassification of the coconut tree and "unfulfilled election promises".
Relations reached their lowest point last year, when supporters of a legislator stormed the stage to prevent a performance by popular political soloist, Francis Fernandes.
Hartman de Souza, an English theatre personality and author of a recent book "Eat Dust" on mining excesses in Goa, feels the government initiative will only result in cantarists being even more critical of it.
"The Konkani stage has evolved from protest and dissent, and they have an ear to the ground, to the common man. You cannot try to orient them," he said.
"You can ask people for their opinion. You can't ask people to only write things in praise. Praise me and get paid for it. Why bother with poetry then? Just hire an advertising agency," added installation artist and painter Subodh Kerkar.
However, long-time Konkani entertainer Miguel Jacob Fernandes feels differently. He says the contest can help to bridge the growing divide between the Konkani stage and the government.
"Nobody is being forced to enter the contest and say good things. Those who feel they can do so, can enter."
The government, on its part, has clarified that the contest is just a means to use the popularity of Konkani songs to disseminate information about its schemes, in the same way as it uses other media, like print or films.
But rightly or wrongly, high praise does not seem to be coming their way.


Chipmunk has criticised Tinie Tempah for spending more time on his fashion lines than he does MCing.

During a fiery appearance on Charlie Sloth's 1Xtra show, Chipmunk questioned Tinie's commitment to the grime industry and helping out new artists.
"How can you be the MC for the country?" he said.
The pair used to be good friends, collaborating on a number of tracks together, but that relationship has clearly soured.
In between freestyles, Chipmunk let rip at Tinie, claiming his old mate should show more 'respect' to MCs who aren't signed to a record label.
He told Charlie Sloth: "A year ago I heard Tinie's Fire in the Booth and you know what it broke my heart," he said.
"A man [Tinie] said: 'moment of silence for every rapper out of a deal.'
"So you tell me, when there's a moment of silence what does that mean? It means somebody's death. So all you rappers out of deals are dead? A man [Tinie] said this with his own mouth, there's no denying that.
"I'm not gonna bite that bait. But that is rude and it's disrespectful. 95% of the rappers that you press play for Charlie are not signed.
"These are men that were like me at the time, grabbing a pen and paper.
"We feel like this is the only way out of the type of environments that we grew up in, where people are getting stabbed and dying and all kinds of madness.
"He thinks you lot are dead. It breaks my heart."
Chip was still studying for his A-levels when he released his debut album, I Am Chipmunk, and established himself as one of Britain's biggest grime stars.
He's spoken often of his passion for getting all young people access to a good education.
But the Londoner thinks Tinie should be using his own celebrity status to better effect.
The Pass Out singer has his own fashion label and is a regular on the front row of catwalks around the world.
His growing profile has also seen him invited to 10 Downing Street for the London Collections for Men fashion party.
"You've got a platform, so use it in the right way," Chipmunk said.
"You're supposed to be a voice. I come from the government education system with four Bs and five As.
"There are things happening in our community that are hurting people. You see if I get to 10 Downing Street, I'm not going to take a picture. Is that hip-hop? Is that grime? Is that urban?"
The rapper's rant has caused a big reaction on Twitter, with #tinie and #chip trending for the last 24 hours.
Fans though are pretty split over who's side to take.
Chipmunk, who has a song called Pizza Boy, finished with a pop at Tinie's appearance on Fire In The Booth last year.
"Man [Tinie] said: 'I left the pizza boys that thought I won't deliver again. You say you're going to be around. We'll see who is in the end.'
"So let me show you how we decipher bars. Who else in England has a song called Pizza Boy?
"Don't put it past me being at those red carpets. I'm back now. I'll be there. I'll see you at that fashion show saying 'Tinie you got bars today or not? No, that's what you're not good at right?'
"Come here Rude Boy, I'll show you about all that on the microphone. Chipmunk don't answer to no one. Let that be a warning. don't play with me."
Follow @BBCNewsbeat on Twitter, BBCNewsbeat on Instagram and Radio1Newsbeat on YouTube


An aviation maintenance firm chaired by rock-star Bruce Dickinson is in dispute with the Welsh Government over the non-payment of rent.

An official has told an assembly committee that Cardiff Aviation, which has leased a hangar at St Athan from the administration since 2012, has not paid rent for it to date.
The Welsh Government is seeking legal advice over recovering the outstanding debt, a letter says.
The company says talks are ongoing.
It is not known how much the rent is worth.
Mr Dickinson previously told BBC Wales that his firm was losing millions of pounds because of a dispute over landing rights.
The Iron Maiden front-man set up Cardiff Aviation in 2012 at RAF St Athan, Vale of Glamorgan, leasing a hangar called Twin Peaks from the Welsh Government.
Welsh Government small business subsidiary Finance Wales has invested Â£1.6m.
A letter from Simon Jones, director of transport and ICT infrastructure, to the assembly's Public Accounts Committee chairman Nick Ramsay said that, "to date", Cardiff Aviation "has not paid any rent for their use of Twin Peaks".
"The company has put forward a number of reasons for not doing so," Mr Jones said.
"The Welsh Government disputes the basis for the non-payment, and we note that other companies operate from St Athan successfully without any issues.
"The Welsh Government is currently seeking legal advice regarding potential remedies and the recovery of the outstanding debt."
A spokesman for Cardiff Aviation said: "We have a good relationship with the Welsh Government and discussions are ongoing which we hope will promptly deliver productive outcomes for all parties."
A Welsh Government spokeswoman said: "We have been in ongoing discussions with the company for some time about this complex case.
"For legal reasons we will not be commenting in detail at this stage.
"The Welsh Government is currently investigating all options to protect the taxpayer interest and resolve this issue."
Responding, Public Accounts Committee chairman Mr Ramsay stated: "This response clearly raises as many questions as it answers.
"The Welsh Government are understandably concerned about the lack of payment and the public need to have an assurance that public money is being well spent.
"We will be considering this as a committee at the earliest opportunity."
Plaid Cymru AM Neil McEvoy, who raised questions about the company in the committee, said the situation raised serious questions about the "competence" of the Welsh Government.
He said: "It seems that they just don't know what they are doing."


The UK has 34 universities in the Times Higher Education ranking of the world's top 200 institutions.

Oxford climbs to second place, while Cambridge and Imperial College London also make the top 10 in fourth and eighth places respectively.
Keeping the top spot for the fifth consecutive year is the California Institute of Technology in the US.
Europe has a record number of universities in the world top 200, with 105 compared to 87 last year.
The tables rank universities worldwide on measures like teaching, research and international outlook - for example numbers of overseas students and staff.
The majority of UK universities have moved up this year, some - for example Warwick,  St Andrews and  Exeter - by a significant margin.
There is good news for Reading, Dundee and Newcastle, re-establishing their places in the top 200 after slipping out last year.
However, four universities -  Manchester,  York, Sussex and Royal Holloway, London - have slipped to lower positions in the tables, compared with last year when there were only 29 UK institutions in the top 200.
While the US remains the world leader when it comes to elite universities, its dominance has been eroded this year.
It has six of the top 10 universities - down from seven last year - and 39 of the top 100 - down from 45 last year.
There is a mixed picture for Asia, with Japan and South Korea falling back this year and China remaining steady.
Europe is catching up on the dominance of the Anglo-American universities, with the Swiss Federal Institute of Technology, Zurich being the first institution from outside the US and UK to make the world top 10 in a decade.
Germany has 20 universities in the top 200 and the Netherlands has 12 and there are five from France, while Spain and Italy each have three.
Phil Baty, editor of the Times Higher Education world university rankings, said: "The UK is a stand-out performer in this year's rankings, boasting an impressive 78 institutions overall, with 34 of these sitting in the top 200.
"However, despite the UK's success, its continued cuts in higher education funding - the Higher Education Funding Council for England received a £150 million budget slash this year - and series of immigration measures affecting overseas students, will hinder its performance in the long run.
"Many of the country's European rivals, such as Germany, Switzerland and the Netherlands, are also performing well, but are less hindered by funding cuts and more welcoming for international students.
"The UK will have to work hard to ensure its higher education spending and immigration policies do not hinder its place in the world university rankings."
Dr Wendy Piatt, director general of the Russell Group of leading UK universities, said  "The UK spends much less on higher education and research than our nearest rivals.
"Our competitors in China, Germany and Japan continue to be rewarded with significant investment and are snapping at our heels as a result."
Nicola Dandridge, chief executive of Universities UK, said: "If we want to maintain this leading position, we must start matching our competitors' increased investment in higher education.
"We should also be presenting a welcoming climate for genuine international students and academics and ensuring that visa and immigration rules and procedures are proportionate."
Universities Minister Jo Johnson said: "It is great to see the UK is second only to the US for the number of world-class universities in the top 80.
"These rankings confirm the world-class standing of our higher education sector. Our reforms will ensure our universities continue to compete with the very best internationally and deliver high-quality teaching to students at home."


Labour has accused David Cameron of "hypocrisy" after he revealed he had owned shares in an offshore fund set up by his late father.

On Thursday, the PM said he sold the shares before he entered Number 10 in 2010 and had paid all UK taxes due on profits from the £30,000 sale.
He said the firm, Blairmore Holdings, had not been set up to avoid tax.
Labour's deputy leader Tom Watson said the PM had called people who invested in similar schemes "morally wrong".
Business Minister Nick Boles said "with the benefit of hindsight" it might have been better if the PM had revealed details of his shareholdings when the allegations first surfaced on Monday but he understood Mr Cameron's "natural human instinct to rally round his father".
The key point, he insisted, was that the prime minister had paid all the taxes expected of him.
There have been days of headlines about Blairmore Holdings - a fund for investors which until 2006 used "bearer shares" to protect its clients' privacy - following the leak of 11 million documents held by Panama-based law firm Mossack Fonseca.
They show that Mr Cameron's father, Ian, was one of five UK directors who flew to board meetings in the Bahamas or Switzerland.
Downing Street and Mr Cameron had issued four statements on whether Mr Cameron had any financial involvement with Blairmore Holdings before the PM told ITV News on Thursday about the shares he had owned.
Mr Watson said Mr Cameron could not be blamed for his father's actions but added: "He can for hypocrisy. He said that sunlight is the best disinfectant and wasn't entirely straight with the British people about what his own financial arrangements were.
"That wouldn't be so bad if he hadn't also been lecturing very prominent people about their own tax arrangements, some he called morally wrong for being invested in similar schemes.
"People don't like that and they want a lot more answers from David Cameron before this scandal goes away."
Shadow Work and Pensions Secretary Owen Smith said there were now "doubts about the prime minister's trustworthiness", accusing him of "speaking out of both sides of his mouth" in recent days and calling on him to publish details of all his past investments.
And SNP economy spokesman Stewart Hosie MP described it as "an astounding revelation by a prime minister who has questioned the morality of using such tax-avoiding schemes".
But James Quarmby, a specialist in tax planning and wealth structuring at law firm Stephenson Harwood, told BBC Radio 4's Today programme there was a "massive misunderstanding" about what Mr Cameron had invested in.
He said it was a hedge fund that was "about as boring as it gets for investments", adding that it would not be used for avoiding tax.
"It's no different from Mr Cameron investing in a UK stock," he said.
And Mr Boles told BBC Breakfast that tax evasion was a "terrible thing" but no-one was suggesting the prime minister had not made all of the payments "he was required to make under UK law or that he has in any way used any of this to try to avoid tax".
"People have to pay tax," he said. "They have to pay tax on all income, from their work or from investments and I don't care where that investment is... that is what matters, that people pay the tax that is due. The prime minister has done so."
Analysis by deputy political editor James Landale
When a politician is under pressure, facing questions about their family and their finances, their natural instinct is to protect their privacy and say as little as possible. But when that pressure gets too great, there comes a moment when they have to go public and for David Cameron that moment came this evening/ last night.
In the long run, the prime minister will hope to achieve his aim of drawing a line under this story. Journalists and opposition MPs will naturally keep asking questions.
But there are unlikely to be more significant revelations than the fact that Mr Cameron did indeed benefit from an offshore trust, something that is legal but over which people have differing views. The problem for the prime minister is that the political imagery is not good. He is engaged in the political fight of his life, trying to convince the British people to vote to stay in the European Union.
And anything like this that distances Mr Cameron from the electorate, that reminds people of his wealthy and privileged background, well let's just say the timing is not great
Asked why it had taken four days for the prime minister to disclose the information, Mr Boles told Radio 4's Today he understood why Mr Cameron had not wanted to "intrude on his father's memory" at the start of the week and "feed" speculation about his business activities.
"I am sure with the benefit of hindsight he would rather all of what has come out over the last four days had come out on the first day.
"The instinct is one that we can all identify with even if it is something he might have done differently if given a second chance."
In his interview on Thursday, Mr Cameron told ITV News: "I don't have anything to hide. I'm proud of my dad and what he did and the business he established... I can't bear to see his name being dragged through the mud."
Mr Cameron said much criticism was based on a "fundamental misconception" that Blairmore was set up to avoid tax.
"It wasn't. It was set up after exchange controls went, so that people who wanted to invest in dollar denominated shares and companies could do so, and there are many other, thousands of other unit trusts set up in this way," he said.
Downing Street said Mr and Mrs Cameron bought their holding in April 1997 for £12,497 and sold it in January 2010 for £31,500.
That year the personal allowance before capital gains tax was paid was £10,100 per person.
A leak of 11.5 million documents has lifted the lid on how the rich and powerful use tax havens to hide their wealth.
The files were leaked from one of the world's most secretive companies, a Panamanian law firm called Mossack Fonseca.
Among the files are details about:
The scandal also touches football's world governing body, Fifa.
Mossack Fonseca says it has operated beyond reproach for 40 years and never been accused or charged with criminal wrong-doing.


Former News of the World editor Andy Coulson has been cleared of committing perjury while giving evidence in the 2010 trial of ex-MSP Tommy Sheridan.

The Crown alleged that Mr Coulson, 47, lied about his knowledge of phone hacking at the now-defunct tabloid.
The case against him collapsed after his defence team successfully argued there was no case to answer.
Judge Lord Burns ruled the Crown had not shown Mr Coulson's evidence was relevant in the Sheridan trial.
Speaking outside the High Court in Edinburgh after his acquittal, Mr Coulson said: "I am obviously delighted by the judge's decision today. It was the right decision.
"This prosecution was always wrong. I didn't lie and the prosecution, in my view, was a gross waste of public money.
"I am just delighted that after four pretty testing years that my family and myself have finally had a good day."
Explaining his ruling, Lord Burns told the jury that perjury was the giving of false evidence under oath which is relevant to the issues in that trial.
He said the Crown needed to prove that Mr Coulson's allegedly false evidence in the 2010 Sheridan case was relevant to the issues in that trial, and that was for him as a judge to decide rather than the jury.
Lord Burns said that after two days of legal submissions the Crown had not satisfied him that Mr Coulson's evidence had been relevant.
The judge formally acquitted Mr Coulson on Monday, but the acquittal was suspended and could not be reported until Wednesday morning while the Crown decided whether it would appeal.
No appeal was made, and Mr Coulson was cleared more than three years after he was first charged.
Mr Coulson was editor of the News of the World from 2003 until 2007 when he resigned after royal editor Clive Goodman was convicted of phone hacking.
He become the Conservative Party's director of communications and later served as Prime Minister David Cameron's director of communications until January 2011.
Mr Coulson resigned as the phone hacking scandal gathered pace and was later arrested and convicted of conspiracy to intercept voicemails on mobile phones.
He was jailed for 18 months in July 2014 and released less than five months later.
The timeline of the latest case against Mr Coulson can be traced back to 2006 when Mr Sheridan won a defamation case against the News of the World.
The politician was awarded Â£200,000 in damages over a series of articles in the newspaper that claimed he was an adulterer and had visited a swingers club.
In 2010, Mr Sheridan stood trial, accused of perjury in the 2006 case. He was subsequently convicted and jailed for three years.
While conducting his own defence during the trial, Mr Sheridan called Mr Coulson as a witness.
The evidence the journalist gave at the High Court in Glasgow on 9 and 10 December 2010 later prompted the Crown to accuse him of perjury.
The charge against Mr Coulson alleged that he committed perjury when he told Mr Sheridan's trial that he had not known about phone hacking at the News of the World until the arrest of the now-defunct tabloid's royal editor Clive Goodman in 2006.
During Mr Coulson's perjury trial, the Crown led evidence from Mr Goodman and fellow former News of the World journalists Neville Thurlbeck and James Weatherup, who are all convicted phone hackers.
After hearing the prosecution evidence, the jury of nine men and six women was sent from the court last week as defence advocate Murdo MacLeod QC outlined an argument that there was no case to answer.
Mr MacLeod noted that both Mr Sheridan and the Advocate Depute both said in their closing statements at the 2010 trial that the phone hacking testimony had little relevance to Mr Sheridan's defence.
Responding to the acquittal, a Crown Office spokesman said: "Andrew Coulson was a defence witness at the trial of Tommy Sheridan. He gave his evidence without objection as to relevancy.
"The Crown indicted Coulson on the basis that he lied during parts of his evidence, in particular that he had no knowledge of phone hacking.
"The trial judge in the Coulson trial, at the conclusion of the prosecution evidence, ruled that this evidence was irrelevant and therefore could not found the basis for a prosecution for perjury. This brings proceedings to an end."
Reacting to Mr Coulson's acquittal, Mr Sheridan accused the Crown Office of "corruption", presiding over "a shambles" and called for someone's "head to roll".
He said a "detailed judgement and ruling" by Lord Bracadale, who presided over his perjury trial in 2010, which "clearly explains the relevancy and the competency of Andrew Coulson's evidence" had not been given to Lord Burns.
"I think the Crown Office has corruptly tried to hide the basis of the prosecution of myself and my wife," he said.
"They used evidence supplied to them by the News of the World...a corrupt and illegal unit that has now been closed.
"They used them to try and set me up, and they are trying to cover that up."
Mr Sheridan said the Crown had four years to prepare its case against Mr Coulson.
"Did they just realise last week that they had to prove relevancy as well?" he asked.
"They've spent over Â£1m of public money, thousands of police hours on a case that apparently they didn't know what they were doing.
"That is a shambles, and somebody's head has to roll."
Prosecutors in Scotland confirmed on Tuesday evening they had dropped charges against two other former executives of the News of the World.
Bob Bird, who had been editor of the newspaper's Scottish edition, had been charged with perverting the course of justice and his former news editor Douglas Wight with phone hacking and perjury.
The Crown Office said on Tuesday that, after "an extremely thorough investigation of these allegations", no criminal proceedings would be taken against either Mr Bird or Mr Wight.


A man has been killed in a stabbing in Dublin.

The victim, who is in his 20s was attacked at Seagull House on Ruthland Ave at about 16:00 local time on Saturday.
Police were called to the address and the man was brought to St James Hospital in the city where he died a short time later.
The scene of the murder is being preserved for a technical examination and the state pathologist has been notified. No arrests have been made.


Kenyan software developers from Ongair have been selected to help the BBC reach young African audiences through social and digital platforms.

Media playback is unsupported on your device
23 February 2015 Last updated at 08:24 GMT
They will be funded to pilot and user test prototypes over six months.
Members of the team participated at a BBC hackathon event held in Kenya's capital, Nairobi, earlier this month.


The parents of a 20-year-old father-of-one who was beaten to death last year have hit out at police for not keeping them informed about the case.

Three teenagers have been charged with murdering Christopher Meli in Twinbrook in west Belfast.
His parents say they found out on social media that one of the accused had bail restrictions varied so that he could go on holiday.
Police have apologised for "an oversight" in communication.
"I just want to know when the court case is going to be on so we can find out what is going on, how it is progressing and what direction it is going," Christopher Meli senior said.
In a statement, the Police Service of Northern Ireland (PSNI) officer leading the investigation, Det Ch Insp Richard Campbell, said a dedicated family liaison officer had been appointed "to keep the Meli family fully informed about developments in the investigation since last December".
"Unfortunately, earlier this week there was an oversight which led to a delay in information being provided to the family about a variation in bail conditions for one of the defendants charged with Christopher's murder," he added.
"Bail is a matter for the court, not police, but the delay in providing the family with an update is unacceptable and should not have happened.
"I appreciate how important it is for families to be kept informed and police apologise for this oversight."
Mr Campbell said he would be contacting the family to arrange a meeting to discuss their concerns and offer a "personal apology".
Geraldine Hanna from Victims Support NI spoke to BBC Radio Ulster's Good Morning Ulster programme: "In November last year the Victims' Charter came into effect in Northern Ireland which is based on a statutory footing.
"Under that legislation, victims are required to be kept updated about the progress of cases and also variations to bail conditions.
"Very often the pre-trial hearings don't require victims or family members to be in attendance.
"However, for families who have lost their loved ones in such tragic circumstances, a lot of them find it beneficial to be there  so that they can hear the information as it is being relayed in court."


A man has admitted throwing an ammonia-like substance into the face of a student busker in Glasgow, causing chemical burns to his eyes.

George Kerr, 57, carried out the attack on 22-year-old Greg Aitken in Ashton Lane in the city's west end on 12 September last year.
The High Court in Glasgow heard Kerr attacked Mr Aitken after he had an argument with another man, Colin Sly.
Kerr, who has been in custody since October, will be sentenced next month.
Kerr, from the city's Ruchill area, admitted assaulting Mr Aitken by throwing an unidentified noxious substance onto his face and eyes to his severe injury and permanent impairment.
The court heard that Mr Aitken regularly busked in Ashton Lane and in early September had an argument with beggar Colin Sly, who grabbed him round the clothing and neck.
Mr Aitken punched Mr Sly to get him off. Mr Sly then ran off.
On 12 September, at about 18:30, Mr Sly walked along Ashton Lane with Kerr and pointed out Mr Aitken saying: "That's him."
At the time Mr Sly had a cast on his arm and shouted at Mr Aitken, saying: "I'll get you in two months."
Mr Aitken took this to mean that Mr Sly intended to assault him once his cast was removed.
Two hours later Kerr walked up and threw a paper cup full of an alkaline liquid at Mr Aitken.
The court heard that a steward at a nearby pub threw water over him in a bid to wash away the noxious substance.
A friend then took him by taxi to the Western Infirmary where he was treated before being transferred to an eye specialist at Gartnavel Hospital.
Before the attack Mr Aitken's sight was perfect, now it is blurred, and he can only see things which are around four inches from his face.
He also has to wear sunglasses because daylight hurts his eyes, which are bloodshot and sore.
Following the attack, Kerr was identified from photographs and at an identification parade.
He initially denied any involvement but pleaded guilty to the attack when he appeared in court.


Trade unions have claimed a significant breakthrough in a long-running legal case over alleged blacklisting in the construction industry.

It follows an admission by some of Britain's biggest construction firms that they defamed workers and infringed their rights.
Unions say hundreds of members could be in line for damages that could amount to tens of millions of pounds.
The companies have issued an unreserved apology.
Details of what trade unions call a construction industry blacklist emerged in 2009 following a raid on the premises of The Consulting Association in Droitwich by the Information Commissioner's office.
It uncovered a list of more than 3,000 names and reference cards that included allegations against workers linked to their political views, competence, trade union membership and industrial relations activities.
In a submission to the High Court the firms, which include Balfour Beatty, Carillion and Costain Group, accepted that construction companies had provided much the information and had used it to vet workers seeking employment.
The companies accepted that the vetting information system "infringed workers' rights to confidentiality, privacy, reputation and latterly data protection".
The companies offered an "unreserved apology" for their part in operating the system, for any adverse employment consequences and for the distress and anxiety caused to workers and their families.
The Unite union said that the admissions meant hundreds of workers were now on the verge of securing damages.
Unit assistant general secretary Gail Cartmail said: "The admissions from the blacklisters and the damages for the blacklisted are an important step on the road to justice in righting that wrong."
The construction union UCATT described the news as a "massive breakthrough" and "a highly significant step forward in the battle for blacklisting justice".
Maria Ludkin, GMB national officer for legal and corporate affairs, said: "The fact that the companies have acknowledged the distress and anxiety caused to workers and their families now gives us a firm basis to make sure members are given the very substantial compensation they deserve, and that the true nature of the secretive Consulting Association is known."
"Even though it has taken years of fighting in the High Court, the companies have now acknowledged that they infringed workers' rights to confidentiality, privacy, reputation and data protection, which is an important battle to have won," she added.
Despite the admissions, the firms continued to defend cases where they claimed there was no link between the vetting system and the loss of employment and where the losses being claimed were unsubstantiated.
The defendants in the case include Balfour Beatty, Carillion, Costain, Keir, Lang O'Rourke, Sir Robert McAlpine, Skanska and Vinci.
The case is expected to be heard in the High Court in May 2016.


Letters written by one of the 20th Century's most notorious murderers have been sold for £11,000 at auction.

Dr Hawley Harvey Crippen was executed in November 1910 after poisoning his wife and hiding her dismembered remains under the cellar floor.
He was caught as he tried to escape to Canada with his mistress, Ethel Le Neve, who was disguised as a boy.
The letters, written while he was in prison and sold in Wiltshire, would remain in the UK, auctioneers said.
Auctioneer Andrew Aldridge described the atmosphere in the saleroom as "frantic" with bidders calling in from Australia and the United States.
He said the letters provided a "fascinating insight" into Dr Crippen's mind during the last few days of his life.
One of his final letters, written to Lady Henry Somerset on 26 October 1910 - less than a month before he was executed - details his relationship with his mistress and his view that "all yet may come right".
Crippen was hanged at Pentonville prison, in London, on 23 November 1910, after an appeal against his sentence failed.
He became the first criminal to be captured with the aid of wireless communication, after the captain of the ship he was escaping on to Canada, the SS Montrose, became suspicious.
The ship's captain sent a telegraph message informing the owners he believed Crippen was on board.
The infamous killer's letters, which are being sold by a private collector, had been expected to make between £3,000 and £5,000 in the sale at Henry Aldridge and Son auctioneers.


A United Nations enquiry into the mysterious death of its former head Dag Hammarskjold is due to open.

Mr Hammarskjold died in a plane crash in what is now Zambia in 1961, but the cause of the crash has been disputed.
There have been claims that the plane was shot down, but a previous UN enquiry did not reach a definitive conclusion.
The Swedish diplomat was on his way to negotiate a ceasefire in the breakaway Congolese state of Katanga.
He was trying to mediate between Congo's Soviet-backed government and Moise Tshombe, who had declared independence for the mineral-rich province of Katanga.
He was flying to Ndola, in what was then Northern Rhodesia, to meet Mr Tshombe, who was backed by former colonial power Belgium and some Western mining interests.
The UN set up this new enquiry after a group of independent investigators said that there was significant new evidence concerning Hammarskjold's death.
They said the evidence was "persuasive" that "the aircraft was subjected to some form of attack".
The commission said that the US National Security Agency (NSA) might hold crucial evidence.
It said that given the NSA's worldwide monitoring activities at that time, "it is highly likely" that the radio traffic on 18-19 September 1961 was recorded by the NSA and possibly also by the CIA.
The report said: "Authenticated recordings of any such cockpit narrative or radio messages, if located, would furnish potentially conclusive evidence of what happened."
The UN panel will now assess this new information and report back by the end of June.


Two women died and 10 people were injured in a crash involving two taxis in South Yorkshire.

The accident happened shortly after midnight on the A638 at Rossington, Doncaster, leaving the Great North Road closed.
The two women, aged 59 and 52, were passengers in a black cab heading towards Bawtry, said police.
The other taxi carried six passengers and a driver. It was travelling in the opposite direction to Doncaster.
Two men, both aged 58, also travelling in the black cab, sustained minor injuries.
The six passengers in the other taxi were three men aged 22, 25 and 29, and three women, aged 21, 25 and 26.
The drivers of the taxis were men aged 40 and 58.
All 10 were taken to hospital to be treated for minor injuries, South Yorkshire Police said.
The road was closed for a time but has since reopened.


About 2,500 coaches are working in youth football in Scotland without having full background checks, BBC Scotland can reveal.

Of the 15,385 coaches registered with the Scottish Youth Football Association (SYFA), 2,500 have not had Protecting Vulnerable Groups (PVG) clearance.
The PVG checks are carried by Disclosure Scotland and search databases including criminal records.
The SYFA has now announced plans to tighten up procedures.
The organisation said any registered official who is participating in an 11-a side programme and has not submitted a current PVG application form by 28 February 2017 will be placed under an automatic precautionary suspension.
It comes amid a burgeoning child sex abuse in football scandal, which has led to the Scottish Football Association announcing it will establish an independent review of the "processes and procedures" in place both currently and historically in Scottish football.
About 4,000 PVG applications are processed every year by the SYFA, taking an average of 8-10 weeks to process at a total annual cost of between Â£25,000 to Â£30,000.
The SYFA told the BBC there were around 90 PVGs waiting to be processed, which means there are around 2,400 coaches who have not even begun the application process yet.
Any official who has not yet completed the PVG process is classed as a provisional member and is not permitted to have unrestricted access to players.
For a person to become a fully affiliated youth coach they have to undergo a series of background checks including previous clubs and reference checks.
It is the individual club's responsibility to register the coach, and have them fill out the relevant forms to be PVG cleared.
Every month the SYFA sends reminders to Scotlands 41 youth football leagues to alert them to the numbers of coaches who remain to be PVG cleared.
The SYFA said that it planned to tighten up procedures.
In a statement, it said: "We have written to all league secretaries informing them that any registered official who is participating in an 11-a side programme and has not submitted a current PVG application form by 28 February 2017 will be placed under an automatic precautionary suspension.
"This may result in their team's fixtures being suspended until the team is fully compliant.
"In addition, teams participating in small-sided games programmes must ensure their officials are fully PVG compliant before the start of the season in March 2017. Failure to do so will preclude their participation in matches."
More than 20 UK police forces - including Police Scotland - have confirmed they are investigating claims of historical child abuse in football.
Last week police chiefs said there were 83 potential suspects and 98 clubs involved across the UK.
Announcing on Tuesday that it would establish independent review, the SFA said it wanted to reassure people that football was a "safe and enjoyable environment for children", and to examine what lessons football can learn from historical allegations.
Last week, a BBC Scotland investigation revealed that former youth coach and referee Hugh Stevenson was allowed to carry on working in football for several years after being reported to police and the SFA over child sex offences.
And Jim McCafferty, a former youth coach who was the kit man for Celtic, Hibernian and Falkirk was arrested in Belfast after allegations were made against him.
Separately, allegations have also been made against coaches who were formerly involved with clubs including Motherwell, Partick Thistle and Rangers.
The allegations involve incidents said to have happened between the 1970s and early 1990s.
Anyone who may have been affected by abuse in football can contact Police Scotland or the specialist NSPCC helpline (0800 0232642)


Photographs seen in court have revealed how a hidden door and false wall in a Suffolk house masked the biggest stash of illegal weapons found in the UK.

More than 400 firearms were found in the home of Wyverstone Parish Council chairman James Arnold last year.
He was due to face firearms charges but died of cancer, aged 49, in July 2014.
Anthony Buckland, 65, from Stoke Holy Cross, Norfolk, is on trial at Norwich Crown Court and denies selling prohibited weapons.
He also denies fraud by false representation.
Prosecutor Andrew Oliver told the court the discovery in Wyverstone, near Stowmarket, was the "biggest stash of weapons this country had ever experienced".
Opening the case last week, Mr Oliver said firearms including air rifles, pistols, handguns, shotguns and automatic machine guns were found in a secret room in Mr Arnold's house.
The room was accessed through a hidden door in his kitchen.
Officers also found a safe behind a false wall.
No explanation of why Mr Arnold amassed the arms has been offered to the jury.
Mr Buckland told the court he had known Mr Arnold for more than 25 years.
He said he had legally supplied him with guns and ammunition but would never have procured illegal firearms.
Asked about news coverage of the find, Mr Buckland said he had been "glued to the television" but had not been worried about his involvement.
"There is no link to me because I had never supplied Arnold with anything illegal," he added. "I didn't start to panic whatsoever."
The court learned Mr Buckland supplied 26 weapons to a man called JJ Hambrose, 16 of which were found at Mr Arnold's home.
The prosecution has claimed Hambrose was a fictitious character.
But Mr Buckland insisted Hambrose was a genuine customer he had known since the 1980s.
He denies 20 counts, some of which relate to Mr Arnold and some to other customers.
He had converted many of the weapons, supposedly to make them legal, but the court has heard such a conversion was not technically possible.
The trial continues.


A British nurse who was diagnosed with Ebola after returning from Sierra Leone is now in a critical condition, the London hospital treating her has said.

The Royal Free Hospital said it was "sorry to announce that the condition of Pauline Cafferkey has gradually deteriorated over the past two days".
Ms Cafferkey, from South Lanarkshire, was given an experimental anti-viral drug and blood from disease survivors.
Meanwhile, a patient who was tested in Swindon for Ebola has tested negative.
Ms Cafferkey, a public health nurse, was diagnosed with Ebola in December after volunteering with Save the Children in Sierra Leone.
On Saturday Prime Minister David Cameron said on Twitter: "My thoughts and prayers are with nurse Pauline Cafferkey who is in a critical condition with Ebola."
Health Secretary Jeremy Hunt also expressed his concern, adding: "I know Dr Mike Jacobs and his team at the Royal Free Hospital are working tirelessly to provide her with the best possible care."
Scotland's First Minister Nicola Sturgeon tweeted: "My thoughts are with Pauline & her family at this extremely difficult time. Thanks to all who are caring for her."
Ms Cafferkey had travelled home via Casablanca, Morocco, and London's Heathrow Airport.
She was screened for the disease at Heathrow where she told officials she believed a fever might be developing.
Her temperature was taken seven times in total, six of which were within 30 minutes, and was normal each time, so she was allowed to fly home to Scotland.
The government's chief medical officer, Dame Sally Davies, has said the case raises questions about airport screening procedures.
Ms Cafferkey was later placed in an isolation unit at Glasgow's Gartnavel Hospital after becoming feverish, before being transferred by RAF Hercules plane to London and on to the Royal Free's specialist treatment centre.
Officials from Health Protection Scotland have spoken to all 71 people aboard the British Airways flight from Heathrow to Glasgow that Ms Cafferkey took - a Public Health England (PHE) spokeswoman has said.
And all 101 UK-based passengers and crew aboard the Royal Air Maroc flight from Casablanca to Heathrow have been contacted by PHE officials.
The remaining 31 international passengers on the flight were being traced by international health authorities, the spokeswoman added.
Dr Nick Beeching, an infectious disease specialist and a senior lecturer at the Liverpool School of Tropical Medicine, told the BBC the risk to the general public of disease spreading was "almost nil".
He said Ms Cafferkey was receiving the best possible care, and the doctors and nurses at the Royal Free were aware of the risks of contamination.
Ms Cafferkey's is the second UK case of Ebola. Another nurse - William Pooley - recovered from Ebola in September after also being treated at the Royal Free Hospital.
He donated some blood plasma and was treated with the anti-viral drug ZMapp, of which there are no stocks left.
Microbiologist Professor Hugh Pennington said patients responded to Ebola treatment differently.
"Some patients with Ebola get sick and then they get better. Not everybody dies," he said.
For this reason, he said, it was "very difficult" to tell how effective treatments would be - especially when "relatively small numbers of people are being treated with these various experimental approaches".
David Mabey, an expert in communicable diseases from the London School of Hygiene and Tropical Medicine, also said Mrs Cafferkey's reaction to the virus would have been hard to predict.
"A proportion of people don't get severely ill; Will Pooley was an example - he was never very sick and he recovered fully within a few days.
"The critical period is in the first four or five days after it's diagnosed, because, you know, if you are going to get worse then that's when it happens, and I'm very sorry to hear that seems to have been the case."
Dr Chris Smith, a consultant virologist at Cambridge University, said symptoms usually develop "abruptly" and peak after "about seven days".
After 10 days, he added:  "Usually they've turned the corner and they begin to improve."
Ebola is transmitted by direct contact with the bodily fluids of an infected person, such as blood, vomit or faeces.
The virus has killed more than 7,800 people, almost all in West Africa, since it broke out a year ago.
The World Health Organization says the number of people infected by the disease in Sierra Leone, Liberia and Guinea has now passed 20,000.


The president of Cyprus is meeting political leaders to hammer out a "Plan B" to shore up debt-laden banks - a condition for securing a huge bailout.

Cyprus's banks, which have been shut all week to prevent mass withdrawals, are to stay closed until next Tuesday.
Politicians have been scrambling to find a way forward after an unpopular levy on bank deposits was rejected by parliament on Tuesday.
The European Central Bank has warned it may halt emergency funding on Monday.
The tax on bank deposits, which provoked street protests, is required for a 10bn-euro (Â£8.5bn; $13bn) EU-IMF loan.
"A decision on a Cyprus rescue must be made on Thursday at the latest," said President Nicos Anastasiades, quoted by the official CNA news agency.
Mr Anastasiades is putting a proposal to party leaders. It is then expected to go before parliament in the afternoon, according to CNA.
State TV said the plan might include a levy on bank deposits over 100,000 euros.
The previous proposals had also included a levy on deposits between 20,000 and 100,000 euros, which had outraged many Cypriots.
The new plan is also reported to involve nationalising pension funds.
Adding to the pressure, the European Central Bank (ECB) has warned that it will continue providing emergency funding for Cypriot banks until Monday, but no longer - unless there is a bailout deal to ensure that the banks can be made financially viable.
One official told the Associated Press that the new Cypriot plan would include "some form" of Russian help, but did not elaborate.
Russian Prime Minister Dmitry Medvedev has scorned the eurozone's bailout plan for Cyprus, accusing EU leaders of behaving "like a bull in a china shop".
In Moscow on Thursday he told European Commission President Jose Manuel Barroso that all interested parties, including Russia, should be included in a deal for Cyprus.
The Cypriot Finance Minister Michalis Sarris is in Moscow for a second day to negotiate assistance from Russia, which has multi-billion dollar investments in Cyprus.
Mr Sarris said after talks on Wednesday with Russian Finance Minister Anton Siluanov that there had been "no offers, nothing concrete," but "a good beginning".
Cyprus has attracted money through its low tax rates, with Russians holding between a third and a half of all Cypriot deposits.
By Gavin HewittEurope editor
Cyprus: Mounting EU pressure
Russian private and corporate assets in Cypriot banks are believed to total about 23bn euro, including many larger deposits, and Russian officials had expressed anger at the bank levy plans.
Analysts say Russia may provide more funding in return for interests in Cyprus' offshore energy fields.
The controversial bank levy had been proposed as a condition for the 10bn-euro bailout. Cyprus was expected to raise 5.8bn euros through the one-off tax on bank savings.
In total Cyprus has been told to find 7bn euros, to make the international loan sustainable for its small economy. In addition to the 5.8bn, Cyprus has to get revenue from privatisations, a capital gains tax increase and a 2.5% increase in the corporate tax rate, currently at 10%, to bring in a total of 7bn euros.
Monday 25 March is a scheduled bank holiday in Cyprus, and Thursday and Friday have now also been declared bank holidays. The stock exchange also remains closed.
Bank mergers, a bond issue, and more Russian funding have all been mentioned as ways to help the country out of the crisis.
Sources: Cypriot government, Kretyk, Oxford Institute for Energy Studies
One offer of help has come from Cyprus's Orthodox Church, which is a major shareholder in the third-largest domestic lender, the Hellenic Bank.
Archbishop Chrysostomos I said on Wednesday the Church was willing to mortgage its assets to invest in government bonds.
The establishment of a "bad bank" which would take on risky assets held by Cypriot banks has also been mentioned by officials.
The BBC's Mark Lowen, in Nicosia, says Cyprus is a resilient nation and the banks are still giving out cash through machines - although with limits, and some are running low.
Some businesses are now refusing credit card payments, our correspondent reports.
On Wednesday, German Chancellor Angela Merkel said she regretted but respected the Cypriot vote.
She said the eurozone had a duty to find a solution for Cyprus, but added that the country's current banking system was "not sustainable".
Cyprus' banks were left exposed following the debt crisis in Greece and there are fears Cyprus could go bankrupt if they fail.
The bank levy plan was altered on Tuesday to exempt savers with less than 20,000 euros, but a 6.75% charge on deposits of 20,000-100,000 euros and a 9.9% charge for those above 100,000 euros remained.
However, parliament rejected the deal, with 36 MPs voting against it, 19 abstaining and none in favour.


A woman has died and four people have been taken to hospital after a crash in County Westmeath.

The two-car collision happened on the M4 near Kinnegad at about 01:30 local time.
Jacqueline Wolohan, 51, of Coolock in Dublin, was killed in the accident.
A female passenger and two children were taken to hospital. The driver of the other car, an off-duty police officer, was also injured.


The SNP's "listening exercise" on Scottish independence, which was announced by Nicola Sturgeon in September, is due to end.

Ms Sturgeon had said she hoped the "national survey" would involve two million people across the country.
It had been due to run until St Andrew's Day - 30 November.
Ms Sturgeon told BBC Scotland on Tuesday that the latest assessment suggested 1.7 million people had taken part.
The SNP leader and Scottish first minister added that "this was never an opinion poll, it is not a scientific for or against independence.
"What it was was an SNP exercise to engage with the Scottish people on some of the issues around independence, and obviously we will take the time to analyse the responses we've had."
When asked what the results showed, Ms Sturgeon said: "I will tell you once it has concluded tomorrow."
When she launched the initiative at an event in Stirling, Ms Sturgeon - the SNP leader and Scottish first minister - said she wanted to hear in detail how people felt about Europe, Brexit and independence.
Members of the public were invited to take part through a dedicated website, and the party's MPs and MSPs were also told to hold town hall meetings.
The SNP's 120,000 members were encouraged to "hit the doorsteps" to ask people to take part, and were sent a pack of "survey cards" which they would ask five people a month to fill in.
Data gathered during the exercise could be used by the SNP if Ms Sturgeon decides to call another referendum on leaving the UK.
Speaking to the BBC's Sunday Politics Scotland programme at the weekend, the Scottish government's culture secretary, Fiona Hyslop, said she did not know whether the results of the survey would be published.
She said there had been a "lot of interest" from people who voted No in the independence referendum two years ago but were "rethinking their position" after voting Remain in the EU referendum.
When asked whether the results of the survey would be published, Ms Hyslop replied: "I don't know because I'm not part of the party operation doing that."
She also said: "It is a listening exercise, it is a party exercise. I'm not running the consultation process", and that she was "expecting to have the results of what has come forth in some shape or form".
Ms Sturgeon told the upper house of the Irish Parliament on Tuesday that another vote on independence remained "firmly on the table" if it was felt to be the best way of protecting Scotland's interests in the wake of the Brexit vote.
However, a YouGov poll for the Times newspaper that was published on Wednesday morning put support for independence at 44%, with 56% backing the Union.
Polling expert Prof John Curtice said it was the first time a poll had suggested support for independence had slipped from the 45% who voted Yes in the referendum in 2014.
The poll also suggested only 31% of people want the Scottish government to campaign for independence in the next two years, while 56% do not.
And respondents were asked about whether they think it would be "realistically possible" for Scotland to remain part of the EU after the rest of the UK leaves, regardless of their support for such a move.
Only 22% said they thought this would be "probably possible", with 62% saying "probably not possible" and 16% said they did not know.
And 13% said they had been contacted by the SNP as part of the national conversation survey while 82% said they had not.
YouGov polled 1,134 people from November 24-29.
It is the latest in a series of polls which have suggested the Brexit vote has not yet led to a surge in support for independence.
A spokesman for the Scottish Conservatives said it was time for the SNP to "finally pay heed to what Scotland is saying - 'no' to a second referendum and 'no' to more division, more uncertainty and more rancour".
But an SNP spokesman pointed out that the poll suggested the SNP still has a commanding lead over the opposition in Holyrood voting intention, with the party on 48% in the constituency vote and 39% in the regional vote.
He added: "That is a very strong endorsement of the party's record in office and of Nicola Sturgeon as first minister."


Danny Welbeck returned to Manchester United as Arsenal's match-winner as the FA Cup holders secured a place in this year's semi-finals at Wembley.

Media playback is not supported on this device
England striker Welbeck, who joined Arsenal from United in a £16m deal on deadline day in September, scored the goal that gave the Gunners their first win at Old Trafford since 2006.
It ensures Louis van Gaal, the manager who sanctioned his sale, will almost certainly end his first season at Old Trafford empty-handed.
Nacho Monreal gave Arsenal a first-half lead but Wayne Rooney equalised with a flying header from Angel Di Maria's cross - the high point of the Argentine's night as he was later dismissed for two yellow cards after Welbeck had restored Arsenal's advantage.
Di Maria was first booked for diving, then tugged at referee Michael Oliver's shirt as he walked away, with inevitable consequences.
On a great night for Gunners manager Arsene Wenger, Arsenal are now huge favourites to reach another FA Cup final after drawing either Reading or Bradford City in the semi-final.
United had won 11 of the past 15 meetings between the sides in all competitions.
But the hero of the night was Welbeck as he punished the club for whom he scored 29 goals in 142 appearances before switching to Arsenal after Van Gaal brought in Radamel Falcao.
The Colombian was not even called from the bench amid United's increasing panic, which saw the great tactician Van Gaal end with the giant figures of Marouane Fellaini and Chris Smalling up front.
United have sailed close to the wind on many occasions on the back of average performances this season, digging out victories without looking convincing.
Media playback is not supported on this device
There was no reprieve here, though, and now a place in the Premier League's top four and a return to the Champions League is their sole aim for the rest of the campaign.
For Arsenal, this was a demonstration of the sort of resilience that saw them win at champions Manchester City in January and ends that recent curse at Old Trafford.
And in a season when so much criticism has been aimed at referees, praise must be reserved for a magnificent performance by Oliver, who remained calm and got the big decisions right in an increasingly frantic environment.
Old Trafford has been the scene of many low-key games this season - but there was a big-match atmosphere around the stadium as United and Arsenal produced a first 45 minutes to savour.
Arsenal's crisp passing had already caused United problems before they took the lead in the 25th minute. Alex Oxlade-Chamberlain was the creator with a weaving run along the edge of the area before finding Monreal, who beat David De Gea at the near post with composure.
The lead lasted only four minutes, United replying with quality of their own as Di Maria's perfect delivery dropped between Arsenal's defenders to be met by the flying figure of Rooney, who directed a powerful header beyond Wojciech Szczesny.
Media playback is not supported on this device
Di Maria was looking much more comfortable, as well as dangerous, on the flank and he stole in behind Arsenal to get in a low effort that Szczesny blocked with his legs at the near post.
Van Gaal made a double change at the interval, sending on Phil Jones and Michael Carrick for Ander Herrera and Luke Shaw, but there was no instant cure for the uncertainty that had plagued United's defence.
And it was in evidence again as Arsenal went back in front just after the hour. Antonio Valencia's back-pass sold De Gea short and Welbeck reacted quickly to nudge the loose ball around the keeper and roll it into the unguarded net.
Welbeck received warm applause from large sections of United's support when he was replaced by Olivier Giroud. There were some jeers mixed in but he clearly remains a popular figure at Old Trafford.
Seconds after that switch De Gea produced a miraculous piece of goalkeeping to keep United in contention, somehow clawing out Santi Cazorla's shot from Alexis Sanchez's cross.
United's play, as well as the noise from their supporters, carried an air of desperation and their cause was not helped by a moment of madness from Di Maria that saw him sent off with 13 minutes left.
It was one of many lows on a night when the frustrations of United and their supporters bubbled to the surface - and their trophy hopes ended.
Match ends, Manchester United 1, Arsenal 2.
Second Half ends, Manchester United 1, Arsenal 2.
Corner,  Arsenal. Conceded by David de Gea.
Attempt saved. Alexis Sánchez (Arsenal) left footed shot from the left side of the box is saved in the bottom right corner. Assisted by Mesut Özil.
Foul by Antonio Valencia (Manchester United).
Olivier Giroud (Arsenal) wins a free kick on the left wing.
Daley Blind (Manchester United) wins a free kick in the defensive half.
Mesut Özil (Arsenal).
Aaron Ramsey (Arsenal) is shown the yellow card for a bad foul.
Ashley Young (Manchester United) wins a free kick on the left wing.
Foul by Aaron Ramsey (Arsenal).
Attempt missed. Santiago Cazorla (Arsenal) left footed shot from outside the box is close, but misses to the left. Assisted by Alexis Sánchez.
Adnan Januzaj (Manchester United) is shown the yellow card.
Adnan Januzaj (Manchester United) has gone down, but that's a dive.
Offside, Manchester United. Ashley Young tries a through ball, but Marouane Fellaini is caught offside.
Offside, Arsenal. Aaron Ramsey tries a through ball, but Olivier Giroud is caught offside.
Attempt missed. Wayne Rooney (Manchester United) right footed shot from outside the box is too high from a direct free kick.
Hand ball by Nacho Monreal (Arsenal).
Foul by Marouane Fellaini (Manchester United).
Francis Coquelin (Arsenal) wins a free kick in the defensive half.
Ashley Young (Manchester United) wins a free kick in the defensive half.
Foul by Olivier Giroud (Arsenal).
Foul by Daley Blind (Manchester United).
Calum Chambers (Arsenal) wins a free kick in the attacking half.
Second yellow card to Ángel Di María (Manchester United).
Ángel Di María (Manchester United) is shown the yellow card.
Ángel Di María (Manchester United) has gone down, but that's a dive.
Antonio Valencia (Manchester United) wins a free kick in the defensive half.
Foul by Francis Coquelin (Arsenal).
Offside, Manchester United. Marouane Fellaini tries a through ball, but Adnan Januzaj is caught offside.
Attempt saved. Santiago Cazorla (Arsenal) left footed shot from the centre of the box is saved in the bottom right corner. Assisted by Alexis Sánchez.
Substitution, Arsenal. Olivier Giroud replaces Danny Welbeck.
Substitution, Manchester United. Adnan Januzaj replaces Marcos Rojo.
Offside, Manchester United. Michael Carrick tries a through ball, but Ashley Young is caught offside.
Attempt saved. Alexis Sánchez (Arsenal) right footed shot from outside the box is saved in the bottom left corner.
Foul by Antonio Valencia (Manchester United).
Alexis Sánchez (Arsenal) wins a free kick in the attacking half.
Foul by Antonio Valencia (Manchester United).
Nacho Monreal (Arsenal) wins a free kick in the defensive half.
Attempt saved. Marouane Fellaini (Manchester United) header from the right side of the box is saved in the bottom right corner. Assisted by Ashley Young with a cross.


Iran's President Hassan Rouhani has said "terrorists are celebrating" US strikes on a Syrian airbase.

His comments echo the response from Russia, which like Iran is allied to Syria, and from Syria itself.
At least six people are reported to have been killed in the missile strikes in the early hours of Friday.
The strikes followed Wednesday's suspected chemical attack on the rebel-held town of Khan Sheikhoun, in which 89 people are reported to have died.
The Syrian military denied using any chemical agents, while its ally Russia said - without providing evidence - that an air strike hit a storage facility where rebels were keeping chemical weapons.
The UK's Foreign Secretary Boris Johnson called off a visit to Moscow, saying the situation had changed "fundamentally" and he would work with the US in pursuit of a ceasefire.
On Saturday in the Syrian capital Damascus and around the world, people protested against the air strikes, insisting there should be no US war against Syria.
In a speech broadcast on state television, Mr Rouhani said: "The man who is now in office in America claimed that he wanted to fight terrorism. But today, all the terrorists in Syria are celebrating this US attack.
"Why did you help terrorist groups and support them in your first move?"
Iran has used the term "terrorist groups" to refer to rebels, many backed by the US, who are fighting against Syria's President Bashar al-Assad.
But Mr Rouhani backed calls for an independent inquiry into the suspected chemical weapons attack.
The US provides arms, training and military assistance to what it calls "moderate" Syrian rebel groups. It has led a coalition carrying out air strikes against jihadist groups in Syria since 2014 but this is the first time it has targeted government forces.
On Saturday, Russia called on the US to provide evidence for its claim that there were chemical weapons at the site.
Defence ministry spokesman Maj Gen Igor Konashenkov said: "None of those at the airfield wear gas masks and they all feel perfectly normal.
"The question thus arises: who once again slipped something in to yet another US president as 'evidence' of the  existence of 'chemical weapons' in a country Washington objects to, and what exactly was it?
"The only way to obtain any objective evidence of the  alleged presence of poisonous substances at Shayrat and present it to the entire world community is to send a mission of professional experts there."
The US, the UK and the Western military alliance Nato have said Khan Sheikhoun was the victim of a chemical attack by Syrian forces; the Syrian government denies this, while Russia says the gas came from a rebel stockpile that was hit in a Syrian airstrike.
British and French representatives to the UN have dismissed Russia's claim.
The UK envoy said there was no evidence that non-state actors in Syria had access to chemical weapons producing the symptoms seen on Tuesday, while France's envoy said there was no fire after the air strike, even though a strike on an ammunition depot "would have caused a fire".
Like Iran, Russia accused the US of encouraging "terrorists" with its air strike.
Russia's deputy ambassador to the UN, Vladimir Safronkov, was quoted as saying: "It's not difficult to imagine how much the spirits of these terrorists been raised."
US Secretary of State Rex Tillerson said Russia's response indicated "continued support for a regime that carries out these type of horrendous attacks on their own people".
North Korea, meanwhile, called Friday's strike "an unforgivable act of aggression" which showed its own decision to develop nuclear weapons was "the right choice a million times over".


The man accused of murdering Jean Campbell at a park in Glasgow has been deemed unfit to stand trial.

At the High Court in Glasgow, judge Lord Matthews set an examination of facts to take place.
Paul Ward, 21, who is accused of the murdering Mrs Campbell on 13 December 2013, at Cranhill Park, will be not be present at the hearing.
The hearing, which is not a trial, is expected to last two weeks and will take place without a jury.
Ward has been deemed mentally unfit to stand trial and is detained at the State Hospital at Carstairs.
Advocate depute Alex Prentice QC called scene examiner Kevin O'Hare to give evidence.
The court was shown images and footage of the scene at a disused children's play area in Cranhill Park where Mrs Campbell's body was discovered.
Pictures showing flip flops and items of clothing strewn in the area and a dog lead, were shown to the court.
The hearing was also shown Mrs Campbell's body with apparent injuries on her.
On a map the court was shown Paul Ward's address a few streets away.
The examination of facts continues.


At the edge of Freedom Square, in the centre of Kobane, you witness the full cost of the stand taken here against the Islamic State (IS), and it is humbling.

Looking east, the devastation is near complete. Every building, home, shop and street is ruined.
On a wall, above the collapsed lecture theatre of the city's cultural centre, an IS sniper, Abu Tarab, has written in Arabic a promise to the town: "Blood, blood, beheading, destruction."
IS delivered on part of his promise, but not fully. Kobane is broken, but it is not beaten.
The last word goes to the Kurds. Underneath the IS graffiti, a fighter has written: "Kobane is the graveyard of the Islamic State."
A few yards away the corpses of three IS fighters rot beside the crater from a coalition airstrike. The force of the blast tore them to pieces - a skull lies in the gutter.
For months IS and the Kurds faced each other, sometimes just yards apart.
There are still plenty of dangers here. Throughout the town, heavy steel mortars, still live, are rusting in the streets.
Almost comically, a tailfin protrudes from a wall or a pavement. IS may be gone, but it is not safe for people to return yet.
It is the Kurds who are left standing, some with trophies from the fight.
I meet one fighter who proudly unfolds an IS flag from his jacket. He tells me the jihadists used car bombs, packed with explosives to target Kurdish checkpoints.
More than 40 car bombs in total, "that's more than they used in Mosul", says another man.
From the same Iraqi city, the militants brought heavy weaponry, artillery and tanks, for the fight here.
Hundreds of Kurds died in the battles, but more than 1,000 IS fighters perished.
Most of its people fled Kobane. Those who stayed draped curtains across the roads, to hide out of sight of IS snipers.
Throughout the fighting, enduring the cold and the dark, Rahima and her 12 children and grandchildren would not leave.
"We faced difficulties," she said. "We were hungry, we were thirsty but we are no different from the fighters.
"They stayed, and we stayed - we were in the basement, when they had food they shared it with us. It was hard, but thank God, we knew we would win."
Her grand-daughter, Leyla, sits up proudly, when I ask her if she was afraid.
"Those who haven't seen the evil that took place here, will see it now," the 12-year-old said.
"Kurdish officials didn't abandon us. We are going to school now. And we are very happy because we will be able to go back to our villages. They liberated our lands," she added proudly.
There is silence now in the town and what is left of its streets, with only occasional gunfire underlying the fact that Kobane is at peace.
But driving the IS from here came at tremendous cost. Hundreds of coalition airstrikes have flattened most of the town.
And the IS did not go far, they are less than five miles (8km) from here. So while Kobane has been liberated, the fight against the militants goes on.
In the west, between buildings that were once under construction, a graveyard for Kurdish martyrs occupies the mud.
Plastic flowers stand brightly and on the headstones are the names of the dead carefully written in green paint.
Two small girls play nearby. They giggle and laugh, and sing a song, "the fighters are coming, the fighters are coming", over and over again.
I head east, closer to the front lines, Here the Kurdish fighters are young and determined. But still on three sides, they are nearly surrounded by the IS.
"The town has been liberated. It's a big victory. But the bigger win will be to free all the villages around Kobane," a fighter says.
"We will never allow a single IS fighter to survive in Kobane, in any villages and anywhere in our land."
Back at the green gate, by the railway line that separates Syria and Turkey, the sound of coalition aircraft can be heard overhead.
It is dark and there is low cloud, but suddenly, four loud and distant explosions. On the frontline to the west, the war against IS continues.
It is a war for which the battle for Kobane will be remembered. These streets tell, that with foreign help, IS can be defeated - but only at great sacrifice.


The Alma Ras factory looks nothing special from the outside.

In fact, little about the small, orange-painted building in Srebrenica, Bosnia, suggests that it houses a production facility - let alone one that is making a significant impact on a traumatised town.
The first clue lies on the other side of a utilitarian glass-and-metal door - the hum of machinery. Climb the stairs and the hum becomes a roar - and rows of sewing machines come into view, operated almost exclusively by women.
They are making underwear for the Alma Ras boutiques in the smart shopping malls of Sarajevo, as well as contract work for the international lingerie behemoth, Calzedonia.
Since it started in 1998, the company has become one of Bosnia's depressingly rare business success stories. It now has five production facilities and shops around the country.
But as well as offering much needed employment in an economy which, after 20 years, still suffers from the aftermath of the civil war, Alma Ras has even greater ambitions - to help heal the wounds of that conflict.
"Politics and ethnic groups are forbidden here - that's the only strategy which will relax the tension," says Rasim Memagic, the 36-year-old chief executive of Alma Ras.
When people apply to work at Alma Ras they aren't asked whether they are Serb, Bosniak or Croat. The company has a recruitment policy which aims to ignore ethnicity.
This is crucial in a country which has yet to recover from the ethnic conflict of the 1990s. Today, Bosnia is split into two "ethnic entities", Republika Srpksa (RS), which has a large ethnic-Serb majority, and the Federation, which is home to most of the country's Bosniaks and Croats.
The town of Srebrenica, inside the RS zone, is something  of a special case. It remains infamous for the 1995 massacre in which Serb forces murdered around 8,000 Bosniak men and boys.
Following the conflict it became part of RS, but now there is a more or less even mix of Bosniaks and Serbs among its 40,000 people.
But tensions remain - which is why Alma Ras insists on its neutral recruitment policy.
"We have never had any problems with ethnic issues because we only look at quality, efficiency and relations between management and the employees," says Mr Memagic.
Alma Ras has been operating in Srebrenica since 2006 - and the decision to open here was not based entirely on business reasoning. Mr Memagic says the company's founder had fond memories of Srebrenica from before the conflict - and was determined to do something to help the town recover.
"We started with just 10 people - it was an unbelievable challenge," says Mr Memagic.
So far the gamble is paying off. The factory has long since moved out of its original, rented location into its current, tangerine-tinted facility. Alma Ras has steadily increased the workforce over the years - and now has 55 employees.
The numbers may be small - but it is still a boon for Srebrenica. People here say that jobs are a crucial part of the reconciliation process - "if we can work together, we can live together," is a common refrain.
This is easier said than done - and not just in Srebrenica. Bosnia as a whole has struggled economically since the Dayton Peace Agreement brought an end to the conflict in 1995.
60%
of Bosnians under 25 are out of work
107th out of 189 countries on the World Bank's ease of doing business index
1.1% economic growth in 2014
Before the war the economy of Bosnia Herzegovina was industrially diversified. Heavy industry, energy distribution, mining and metallurgy, as well as textiles, leather and machinery counted for about half of the province's output and employment.
Now the country has the highest youth unemployment rate in Europe - six out of 10 people aged 24 and under cannot find work. Average earnings for those in work are little more than â‚¬400 ($445; Â£290) per month.
The IMF says growth is likely to rise this year. But on the ground there is little optimism that matters will improve. Bosnia may have two ethnic entities, three presidents and fourteen prime ministers - but it lacks leadership and, says Rasim Memagic, and it lacks policies to encourage businesses to invest.
People of all ethnicities did unite last year over a shared frustration at the economic situation, and anger towards the country's politicians, sparking riots and demonstrations across the country.
As a result Brussels is increasing its efforts here, revitalising its assistance in helping establish the rule of law and making it easier to set up an enterprise.
But business is still battling an entrenched system of political patronage, a legacy of the Dayton Agreement.
The head of the Council of Europe's office in Bosnia, Mary Ann Hennessey, says that is stifling the country's prospects.
"People need a healthy economy free from corruption, a healthy labour market - based on people's skills and competencies rather than patronage, cronyism and other forms of corruption," she says.
In more concrete terms the country also lacks infrastructure. It needs high-speed roads and railways. The national airline recently folded.
Economic stagnation will only perpetuate ethnic divisions, believes Nihad Kadic a social entrepreneur.
"If the economy is poor, nationalism is rich," he says.
Nihad, a Bosniak, founded the eSrebrenica web portal alongside his colleague Mladen Kojic, a Serb, to promote social integration and spread positive stories and images of Bosnia, instead of only the stark horrors of the past.  They'd like to turn their social project into a start-up.
He says there is still more to be done, and that what international institutions have done so far - such as holding workshops to promote peace, or encourage a dialogue between Bosniaks and Serbs - is not enough.
"We know how to talk," he says. "But they don't support us in good projects.
"They must support young people who want work - not with NGOs [non-governmental organizations], but with start-ups. Not a workshop - the only thing you get from that is one lunch."


George Groves inflicted the first loss of James DeGale's professional career to win the British super-middleweight title after a gripping bout in London.

The fight started slowly but came to life and ended in brutal fashion as both slugged it out until the end.
Groves, 23, was wobbled in the third and was cut badly in the 11th but boxed stylishly throughout to earn victory.
Unbeaten Groves earned a majority decision, one judge scoring it 115-115 while the other two had it at 115-114.
In contrast to the explosive build-up to the fight, the first round at the O2 Arena was cagey and tense with DeGale, who was booed on his way into the ring, shading it by landing the only scoring shots and ending with a sharp left jab.
Whether it was respect or more likely nerves, neither boxer seemed to settle in the opening minute of the second round with both throwing just single shots. But Groves improved as the round wore on and landed a decent right on the bell.
The fencing and feinting continued into the third before DeGale landed a right hook to the top of the head of Groves, who responded with one of his own while also later throwing two jabs that found the target.
It was a fascinating start to the contest which Groves had just about shaded but he appeared marked below the right eye.
Groves continued to impress with two-punch combinations and seemed to be in control of the fourth round but a solid left hook in the final minute wobbled him and DeGale unleashed a cluster of punches to finish on top.
DeGale took a strong right hand at the start of the fifth and Groves' footwork was proving frustrating for his opponent who chased but could not catch his rival. Groves then landed a further right that appeared to hurt the tense-looking Olympic gold medallist.
It was another quiet start to the sixth that drew boos from the 19,000 crowd, and that seemed to spur on DeGale who landed a big left that hurt Groves. DeGale followed that up with another left as he tried to assert himself and he continued on the front foot, landing a quality straight left on the bell.
DeGale began the seventh round confidently as Groves' defence continued to drop lower but he still managed to land a clubbing left. DeGale responded with a left of his own with his punches seeming to hold more power and the round ended with a left uppercut from the British champion.
A straight left from DeGale rocked Groves and sparked the Commonwealth champion into life but despite boxing much of the eighth round on the front foot he failed to land a meaningful punch.
Groves boxed behind his jab in the ninth, inviting DeGale to box on the front foot. There was a flurry of punches and after a clash of head a cut opened up above the left eye of Groves.
The final minute of the ninth round was the most entertaining of the fight with both boxers opening up as DeGale rocked his opponent with 30 seconds to go and then, just before the bell, had him wobbling with a huge left, which had Groves desperately holding on.
Groves still appeared dazed at the start of the 10th but found success with his jab, although his punches appeared to lack spite with DeGale looking the more dangerous fighter.
In the final minute of the round they again trade punches, with Groves taking a big right hook to the side of the head, and both boxers went to their stools with bloodied faces following a brutal exchange.
With two rounds to go the fight was in the balance, and another clash of heads resulted in a huge cut opening up on the forehead of Groves which attracted a lot of attention from the referee.
Perhaps sensing the fight could be stopped, Groves opened up and DeGale showed great skill in picking off his opponent who looked desperate and battered.
But Groves battled on despite cuts on his forehead, left eye and right cheekbone and DeGale hurt his opponent again with a left but they again traded and landed in a contest that was turning into a classic.
Going into the final round DeGale looked the fresher, but Groves landed more scoring punches, with both boxers knowing they needed a big performance to secure victory.
DeGale landed a right but his momentum was checked by a big right uppercut from Groves. However, it was the British champion who ended the fight on top, opening up against a tiring Groves and they slugged it out right until the final bell.
The decision was contentious with Groves earning his 13th straight victory while DeGale, who disputed the decision, suffered his first defeat in 11 professional fights.
Groves, who also beat his opponent as an amateur, was content to prove the doubters wrong and claimed he would be willing to fight DeGale again.
"Everyone was raving about him. Only two favoured me in a boxing news poll, but I have self belief," he told BBC 5 Live.
"It feels good. I knew I'd won. I knew I'd done enough."
He added: "I will fight him again yeah if everything is all right and it's the right way. But now I have beaten him twice."
Earlier, middleweight Billy Joe Saunders inflicted the first stoppage of veteran Kevin Hammond's career to win in two rounds.
While Frankie Gavin won the vacant WBO Inter-Continental welterweight title on points after a relatively uninspiring performance against the negative Young Mutley.


Ireland and Ulster centre Jared Payne will miss the start of the Six Nations after being ruled out for three months with a kidney injury.

Payne sustained the injury during the first half of Saturday's 27-24 victory over Australia in Dublin.
The 31-year-old will miss the Six Nations matches against Scotland, Italy and France.
Fellow Ulster player Andrew Trimble is out for a fortnight after picking up a foot injury against the Wallabies.
The wing suffered a "tendon issue" and was forced off after 30 minutes at the Aviva Stadium.
In a statement, the Ireland team management added that full-back Rob Kearney was "removed" from the pitch as a precaution.
Kearney was a doubt for the game because of concussion and he sustained a blow to the head before being taken off.
Payne was replaced at the interval and now faces a lengthy lay-off, with his absence a major blow to both Ireland and Ulster.
He could return for Ireland's final two Six Nations fixtures, away to Wales on 10 March and then a Dublin game against England eight days later.


Hull City could be bolstered by the return of three players, including Tom Huddlestone after suspension.

Dieumerci Mbokani is fit after six weeks out with a hamstring injury, while Harry Maguire's knee problem will be assessed.
Stoke midfielder Joe Allen is ruled out by injury, while Jonathan Walters is a doubt with a knee problem.
Goalkeeper Jack Butland could be involved for the first time since injuring his ankle in March last year.
Ibrahim Afellay is likely to miss the remainder of the season after undergoing a knee operation.
John Roder: "For very different reasons both of these teams need a win this weekend.
"Hull require three victories from their remaining six fixtures to be safe, according to Phil Neville on last Saturday's Match of the Day.
"However, with vastly contrasting home and away records since Marco Silva's arrival, can Hull record their first away win under the new head coach?
"Stoke have finished in ninth place in the Premier League for the past three seasons but a run of four successive defeats - and only two wins in their last 11 - has seen them drop to 13th."
Twitter: @johnrodercomm
Stoke City manager Mark Hughes: "(Our) mindset is good. We've had a run of fixtures that was always going to test us.
"We have done okay in games but made mistakes to allow good opposition good opportunities to score.
"We've got six games to go and we are going to try to win every one."
Hull City head coach Marco Silva: "We need to pick up points away to stay in the Premier League.
"We need to show and prove we can do that.  It is important to end the run away from home.
"I think Stoke is a good chance for us. We must believe."
Stoke are having a shocking time, with four straight defeats. I see them bouncing back with a win here though, because Hull are just not the same force on the road.
Prediction: 2-0
Lawro's full predictions v singer Sting
Head-to-head
Stoke City
Hull City
SAM (Sports Analytics Machine) is a super-computer created by @ProfIanMcHale at the University of Salford that is used to predict the outcome of football matches.