cityam--2020-06-28--Virgin Atlantic up to £900m in rescue bid after coronavirus turbulence

Embattled airline Virgin Atlantic is looking to raise up to £900m in a last-ditch rescue bid days after it said it was unlikely to secure a government bailout .
The carrier , founded by Sir Richard Branson in 1984 , has beefed up its original £750m cash call amid forecasts for an extended recovery period for the aviation industry .
Read more : UK airlines set for jobs crisis on par with collapse of mining in 1980s While overall demand slumped during the pandemic , long-haul flights are set for the slowest recovery in passenger numbers as far-flung borders remain @ @ @ @ @ @ @ has taken its toll on the airline .
Virgin Atlantic has so far slashed around a third of its workforce , and closed its base in Gatwick airport , following a loss of more than £26m in its latest financial year .
Virgin has set an informal deadline of early July for a potential funding agreement .
A spokesperson told City A.M. the airline was “ looking to wrap things up next week ” .
The bulk of the support package will be used to boost Virgin Atlantic ’ s stuttering cash flow @ @ @ @ @ @ @ the airline .
Alvarez & Marsal are set to be appointed as administrator should the bailout talks fall through .
The proposed support package will see Virgin Atlantic ’ s existing shareholders — Virgin Group , which owns 51 per cent of the company , and Delta Air Lines , which owns 49 per cent — inject around £250m of fresh funding to prop up the airline .
Hedge funds Davidson Kempner Capital Management and Elliott are in ongoing talks with Virgin Atlantic to provide up to £250m in debt funding .
The @ @ @ @ @ @ @ support package for the ailing airline .
However , chancellor Rishi Sunak has stated that government bailouts would be reserved “ only as a last resort ” , and urged companies to try and seek funding in the private sector before turning to state aid .
Virgin Atlantic ’ s proposal for a £500m package of commercial loans was rejected by the Treasury in April after failing to impress the government .
The airline is now seeking a private solution on the basis that no such government support will materialise , Sky News @ @ @ @ @ @ @ : “ We continue to explore all available options to secure additional external funding as part of a comprehensive , solvent recapitalisation of the airline .
As per the chancellor ’ s letter of 24 March , [ the ] government is considered as a lender of last resort , and rightly so .
We have already made difficult decisions and taken decisive action to reduce our costs , preserve cash and protect as many jobs as possible.
” It comes as British-based airlines have upped the pressure on the government to confirm @ @ @ @ @ @ @ to quash the 14-day quarantine period for visitors to the UK .
Read more : Bain Capital strikes deal to buy Virgin Australia out of administration Short-haul airlines Easyjet , Ryanair and British Airways-owner IAG have started legal proceedings against the government aimed at overturning the quarantine policy .
Virgin Atlantic is set to resume passenger flights to hotspots such as Hong Kong , Los Angeles and New York from mid-July .
However , the airline was cautioned that overall customer demand will take a 40 per cent hit in 2020 , with @ @ @ @ @ @ @ .
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Virgin Atlantic seeks up to £900m in rescue bid after coronavirus turbulence
Embattled airline Virgin Atlantic is looking to raise up to £900m in a last-ditch rescue bid days after it said it was unlikely to secure a government bailout.
The carrier, founded by Sir Richard Branson in 1984, has beefed up its original £750m cash call amid forecasts for an extended recovery period for the aviation industry.
While overall demand slumped during the pandemic, long-haul flights are set for the slowest recovery in passenger numbers as far-flung borders remain shuttered to the UK.
The pandemic has taken its toll on the airline. Virgin Atlantic has so far slashed around a third of its workforce, and closed its base in Gatwick airport, following a loss of more than £26m in its latest financial year.
Virgin has set an informal deadline of early July for a potential funding agreement. A spokesperson told City A.M. the airline was “looking to wrap things up next week”.
The bulk of the support package will be used to boost Virgin Atlantic’s stuttering cash flow by deferring fees and payments owed by the airline. Alvarez & Marsal are set to be appointed as administrator should the bailout talks fall through.
The proposed support package will see Virgin Atlantic’s existing shareholders — Virgin Group, which owns 51 per cent of the company, and Delta Air Lines, which owns 49 per cent — inject around £250m of fresh funding to prop up the airline.
Hedge funds Davidson Kempner Capital Management and Elliott are in ongoing talks with Virgin Atlantic to provide up to £250m in debt funding.
The government has not formally ruled out a support package for the ailing airline. However, chancellor Rishi Sunak has stated that government bailouts would be reserved “only as a last resort”, and urged companies to try and seek funding in the private sector before turning to state aid.
Virgin Atlantic’s proposal for a £500m package of commercial loans was rejected by the Treasury in April after failing to impress the government.
The airline is now seeking a private solution on the basis that no such government support will materialise, Sky News reported.
A spokesperson told City A.M: “We continue to explore all available options to secure additional external funding as part of a comprehensive, solvent recapitalisation of the airline.
As per the chancellor’s letter of 24 March, [the] government is considered as a lender of last resort, and rightly so. We have already made difficult decisions and taken decisive action to reduce our costs, preserve cash and protect as many jobs as possible.”
It comes as British-based airlines have upped the pressure on the government to confirm plans for air bridges with European countries to quash the 14-day quarantine period for visitors to the UK.
Short-haul airlines Easyjet, Ryanair and British Airways-owner IAG have started legal proceedings against the government aimed at overturning the quarantine policy.
Virgin Atlantic is set to resume passenger flights to hotspots such as Hong Kong, Los Angeles and New York from mid-July. However, the airline was cautioned that overall customer demand will take a 40 per cent hit in 2020, with only a gradual recovery likely next year.
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cityam--2020-06-28--Priti Patel confirms likely Leicester lockdown

Leicester could become the first city to be placed into a local coronavirus lockdown , home secretary Priti Patel has confirmed .
Patel said today that there had been a coronavirus flare up in a hospital and that “ there will be support going into Leicester ” .
Read more : UK coronavirus deaths jump by 186 to hit 43,414 Speaking to the BBC , she said : “ The health secretary [ Matt Hancock ] was in touch with many of us over the weekend explaining some of the measures to support on testing and resources that will go @ @ @ @ @ @ @ “ With local flare ups , it ’ s right we have a localised solution in terms of infection control , social distancing , testing and many of the tools that actually within the Public Health England space will come together to control the virus.
” The Sunday Times first reported that Leicester could be headed back into lockdown , with 658 new cases in the fortnight to 16 June .
The upsurge in cases reportedly comes after outbreaks in food production plants , as well as the hospital mentioned by Patel .
@ @ @ @ @ @ @ processing plants across the country .
Experts say the facilities ’ cold conditions and manner of work provide ideal environment for the virus to grow .
Prime Minister Boris Johnson said last month , when he revealed the government ’ s “ roadmap ” to easing social distancing restrictions , that localised lockdowns could be implemented to combat coronavirus flare ups .
Patel said today that preventing a second wave of Covid-19 infections was the government ’ s priority .
“ We have to be very conscientious about the risk of a second @ @ @ @ @ @ @ I think nothing would be more damaging for our country and our economy than if we have a second spike , a second wave , which is why we ’ re taking a very measured approach .
”

Priti Patel confirms likely Leicester lockdown
A man is handed testing equipment in his car at the Coronavirus (Covid-19 testing centre at Leicester City’s King Power Stadium on May 02, 2020 in Leicester
Leicester could become the first city to be placed into a local coronavirus lockdown, home secretary Priti Patel has confirmed.
Patel said today that there had been a coronavirus flare up in a hospital and that “there will be support going into Leicester”.
Speaking to the BBC, she said: “The health secretary [Matt Hancock] was in touch with many of us over the weekend explaining some of the measures to support on testing and resources that will go into the local authorities as well.
“With local flare ups, it’s right we have a localised solution in terms of infection control, social distancing, testing and many of the tools that actually within the Public Health England space will come together to control the virus.”
The Sunday Times first reported that Leicester could be headed back into lockdown, with 658 new cases in the fortnight to 16 June.
The upsurge in cases reportedly comes after outbreaks in food production plants, as well as the hospital mentioned by Patel.
There have been seven outbreaks in food processing plants across the country.
Experts say the facilities’ cold conditions and manner of work provide ideal environment for the virus to grow.
Prime Minister Boris Johnson said last month, when he revealed the government’s “roadmap” to easing social distancing restrictions, that localised lockdowns could be implemented to combat coronavirus flare ups.
Patel said today that preventing a second wave of Covid-19 infections was the government’s priority.
“We have to be very conscientious about the risk of a second wave,” she said.
“I think nothing would be more damaging for our country and our economy than if we have a second spike, a second wave, which is why we’re taking a very measured approach.”


cityam--2020-06-28--Sadiq Khan backs proposal for quicker 5G rollout in London

Sadiq Khan has backed a new report that calls for a quicker rollout of 5G infrastructure in London and beyond .
A new report out today by former Treasury economist Matthew Oakley , and commissioned by Vodafone , found that an upgrade from 4G to 5G infrastructure would have a £120bn benefit to the UK economy over 10 years .
Read more : US firms to be allowed to work with Huawei on 5G standards London would benefit in this same timeframe by a £37.9bn uptick in economic output .
The report found that 5G would help “ the take-up @ @ @ @ @ @ @ “ schools and universities would have more capability to conduct virtual lessons over faster and more reliable mobile networks ” .
Vodafone has previously expressed its support for Chinese telecoms company Huawei to help build the UK ’ s 5G network .
“ As our economy begins to recover from the effects of Covid-19 , we need to explore the potential of 5G to improve Londoners ’ lives – from how they get around the city to how they access healthcare , ” Khan said .
“ Through our ambitious work on improving @ @ @ @ @ @ @ London ’ s streets and the Tube network to improve fibre coverage and lay the foundations for 5G over the next decade.
” Vodafone chief executive Nick Jeffery added : “ 5G will play a vital role as the economy recovers from the Covid-19 pandemic .
“ It is crucial to recognise the role that fast and reliable connectivity will play in unlocking the digital potential that exists in every region across the country.
” The new report comes after recent speculation suggesting the UK was prepared to U-turn on its decision let @ @ @ @ @ @ @ 5G network .
Boris Johnson made the decision earlier this year to allow Huawei to build “ non-core ” elements , which were deemed to be less vulnerable to potential security attacks .
Read more : Vodafone lashes out over UK ’ s Huawei doubts Downing Street has come under heavy pressure from Conservative MPs about Huawei ’ s involvement , with many concerned the firm could collect sensitive information through the network on behalf of the Chinese state .
Earlier this month , Vodafone UK ’ s chief technology officer Scott Petty @ @ @ @ @ @ @ 5G will be lost ” if it drops Huawei from helping build the network .

Sadiq Khan backs proposal for quicker 5G rollout in London
A new report out today by former Treasury economist Matthew Oakley, and commisioned by Vodafone, found that an upgrade from 4G to 5G infrastructure would have a £120bn benefit to the UK economy over 10 years.
Sadiq Khan has backed a new report that calls for a quicker rollout of 5G infrastructure in London and beyond.
A new report out today by former Treasury economist Matthew Oakley, and commissioned by Vodafone, found that an upgrade from 4G to 5G infrastructure would have a £120bn benefit to the UK economy over 10 years.
London would benefit in this same timeframe by a £37.9bn uptick in economic output.
The report found that 5G would help “the take-up of smart healthcare devices” and that “schools and universities would have more capability to conduct virtual lessons over faster and more reliable mobile networks”.
Vodafone has previously expressed its support for Chinese telecoms company Huawei to help build the UK’s 5G network.
“As our economy begins to recover from the effects of Covid-19, we need to explore the potential of 5G to improve Londoners’ lives – from how they get around the city to how they access healthcare,” Khan said.
“Through our ambitious work on improving digital connectivity, we’re using London’s streets and the Tube network to improve fibre coverage and lay the foundations for 5G over the next decade.”
Vodafone chief executive Nick Jeffery added: “5G will play a vital role as the economy recovers from the Covid-19 pandemic.
“It is crucial to recognise the role that fast and reliable connectivity will play in unlocking the digital potential that exists in every region across the country.”
The new report comes after recent speculation suggesting the UK was prepared to U-turn on its decision let Huawei help build the country’s 5G network.
Boris Johnson made the decision earlier this year to allow Huawei to build “non-core” elements, which were deemed to be less vulnerable to potential security attacks.
Downing Street has come under heavy pressure from Conservative MPs about Huawei’s involvement, with many concerned the firm could collect sensitive information through the network on behalf of the Chinese state.
Earlier this month, Vodafone UK’s chief technology officer Scott Petty said “UK’s leadership in 5G will be lost” if it drops Huawei from helping build the network.


cityam--2020-06-28--Brits struggle to pay household bills as coronavirus crisis deepens

Arrears on UK household bills continued to swell last month amid abrupt falls in employment , earnings and incomes , as the coronavirus crisis batters the British economy .
A report released today by the Institute for Fiscal Studies ( IFS ) showed that mortgage payments slumped 14 per cent last month , as people made use of temporary payment holidays amid the sharp economic downturn .
Read more : Rent day : Landlords braced for as little as one-sixth of quarterly payments The drop marked a further deterioration since April , suggesting some households increasingly struggled to make ends @ @ @ @ @ @ @ calendar month .
Rental payments also dropped 11 per cent from April to May , while tax payments fell nine per cent .
The increase in arrears on household bills came as the coronavirus crisis continued to hammer the economy during lockdown , causing wide-scale job losses and pay cuts across the UK .
The IFS found that average household earnings slumped nine per cent from April to May in the UK , while average household income dropped eight per cent — equivalent to a loss of roughly £160 per month .
The @ @ @ @ @ @ @ falls in April , the IFS said , but figures for May showed little to no sign of recovery .
Industry figures have warned that the coronavirus crisis will disproportionately affect the poorest households in Britain , who are more likely to be laid off or struggle with dented salaries on the government ’ s furlough scheme .
Isaac Delestre , IFS economist and co-author of the report , said : “ Earnings have been hit very hard for those who came into the crisis with the fewest resources .
The picture has @ @ @ @ @ @ @ we consider total income , rather than just earnings , which highlights the crucial reliance we now have on our benefits system to contain poverty and inequality.
” Excluding key workers , more than 80 per cent of Brits in the lowest portion of earners are in sectors that have been forced to shut down , the IFS said , compared with only a quarter of the highest-earning set of workers .
Between January and May , the average monthly earnings for the poorest fifth of households fell 15 per cent , compared @ @ @ @ @ @ @ of higher income households .
A slump in wages also meant a rise in unpaid bills last month , which deepened substantial household debt , the IFS found .
This was more concentrated among poorer households , who were more likely to fall behind with council tax and utility bill payments than wealthier households .
“ This still provides plenty to worry about for the lowest-income households in the longer term : not least given the career disruption they are experiencing and the fact that temporary increases to benefits made during the crisis @ @ @ @ @ @ @ ” Delestre added .
“ In addition , we see rises in non-payment of bills — especially among poorer households — and this worsened further in May.
” “ All this underlines the crucial importance of securing a labour market recovery that is as swift as possible , compatible with public health requirements , ” he added .
Mayor of London Sadiq Khan last week expressed his concern that the pandemic could exacerbate existing wealth inequalities in the UK .
He told City A.M : “ The Covid-19 pandemic has already had an @ @ @ @ @ @ @ impact will be long-lasting and far-reaching .
It has highlighted many of the inequalities in our economy and society in sharp relief.
” Khan urged the government to extend its furlough scheme for the poorest regions in the capital in a bid to avoid mass redundancies and business failures .
“ Ministers must urgently extend the help on offer to avoid the looming unemployment crisis which will hit the most disadvantaged and BAME Londoners hardest , ” he said .
It comes as the UK faces prolonged economic turmoil from the coronavirus crisis @ @ @ @ @ @ @ earlier this month revealed Britain ’ s economy shrank by a record 20.4 per cent in April , just one month into the lockdown .
The chancellor warned that the UK now faces a “ significant recession ” , and is said to be drawing up plans to temporarily reduce VAT in a bid to boost the economy after months of lockdown .
Prime Minister Boris Johnson is set to announce a multi-billion dollar spending blitz tomorrow in an attempt to grow the UK out of the coronavirus recession .
Johnson said he @ @ @ @ @ @ @ election commitment to “ level up ” the country and would fast track a raft of infrastructure projects to shore up the British economy .
“ We want to build our way back to health , ” Johnson said yesterday .
“ If Covid was a lightning flash , we ’ re about to have the thunderclap of the economic consequences .
We ’ re going to be ready.
” “ The lesson is to act fast and we ’ re going to make sure that we have plans to help people whose @ @ @ @ @ @ @ get the opportunities they need .
We are absolutely not going back to the austerity of ten years ago.
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Brits struggle to pay household bills as coronavirus crisis deepens
Arrears on UK household bills continued to swell last month amid abrupt falls in employment, earnings and incomes, as the coronavirus crisis batters the British economy.
A report released today by the Institute for Fiscal Studies (IFS) showed that mortgage payments slumped 14 per cent last month, as people made use of temporary payment holidays amid the sharp economic downturn.
The drop marked a further deterioration since April, suggesting some households increasingly struggled to make ends meet as the lockdown entered its third calendar month. Rental payments also dropped 11 per cent from April to May, while tax payments fell nine per cent.
The increase in arrears on household bills came as the coronavirus crisis continued to hammer the economy during lockdown, causing wide-scale job losses and pay cuts across the UK.
The IFS found that average household earnings slumped nine per cent from April to May in the UK, while average household income dropped eight per cent — equivalent to a loss of roughly £160 per month. The steep fall was largely due to abrupt falls in April, the IFS said, but figures for May showed little to no sign of recovery.
Industry figures have warned that the coronavirus crisis will disproportionately affect the poorest households in Britain, who are more likely to be laid off or struggle with dented salaries on the government’s furlough scheme.
Isaac Delestre, IFS economist and co-author of the report, said: “Earnings have been hit very hard for those who came into the crisis with the fewest resources. The picture has been much more even so far when we consider total income, rather than just earnings, which highlights the crucial reliance we now have on our benefits system to contain poverty and inequality.”
Excluding key workers, more than 80 per cent of Brits in the lowest portion of earners are in sectors that have been forced to shut down, the IFS said, compared with only a quarter of the highest-earning set of workers.
Between January and May, the average monthly earnings for the poorest fifth of households fell 15 per cent, compared to around four to five per cent of higher income households.
A slump in wages also meant a rise in unpaid bills last month, which deepened substantial household debt, the IFS found. This was more concentrated among poorer households, who were more likely to fall behind with council tax and utility bill payments than wealthier households.
“This still provides plenty to worry about for the lowest-income households in the longer term: not least given the career disruption they are experiencing and the fact that temporary increases to benefits made during the crisis are set to expire next spring,” Delestre added. “In addition, we see rises in non-payment of bills — especially among poorer households — and this worsened further in May.”
“All this underlines the crucial importance of securing a labour market recovery that is as swift as possible, compatible with public health requirements,” he added.
Mayor of London Sadiq Khan last week expressed his concern that the pandemic could exacerbate existing wealth inequalities in the UK. He told City A.M: “The Covid-19 pandemic has already had an enormous impact on the economy and its impact will be long-lasting and far-reaching. It has highlighted many of the inequalities in our economy and society in sharp relief.”
Khan urged the government to extend its furlough scheme for the poorest regions in the capital in a bid to avoid mass redundancies and business failures. “Ministers must urgently extend the help on offer to avoid the looming unemployment crisis which will hit the most disadvantaged and BAME Londoners hardest,” he said.
It comes as the UK faces prolonged economic turmoil from the coronavirus crisis, after the Office for National Statistics earlier this month revealed Britain’s economy shrank by a record 20.4 per cent in April, just one month into the lockdown.
The chancellor warned that the UK now faces a “significant recession”, and is said to be drawing up plans to temporarily reduce VAT in a bid to boost the economy after months of lockdown.
Prime Minister Boris Johnson is set to announce a multi-billion dollar spending blitz tomorrow in an attempt to grow the UK out of the coronavirus recession.
Johnson said he would “double down” on his election commitment to “level up” the country and would fast track a raft of infrastructure projects to shore up the British economy.
“We want to build our way back to health,” Johnson said yesterday. “If Covid was a lightning flash, we’re about to have the thunderclap of the economic consequences. We’re going to be ready.”
“The lesson is to act fast and we’re going to make sure that we have plans to help people whose old jobs are not there anymore to get the opportunities they need. We are absolutely not going back to the austerity of ten years ago.”
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cityam--2020-06-28--Innvotec launches fund for female-founded businesses in bid to ‘level the playing field’

Alternative investment fund manager Innvotec has launched a new fund to invest exclusively in female-founded enterprises , in a bid to tackle the gender funding gap in business .
Innvotec , one of London ’ s longest established independent fund managers , today announced the launch of its Female Ventures Fund ( FVF ) to invest in early-stage businesses founded or co-founded by women .
The fund will provide initial capital for female-led businesses , in addition to further financial and advisory support for a 10-12 year period .
Read more : Dwindling number of female chiefs as Card Factory @ @ @ @ @ @ @ ( SEIS ) fund will also look to encourage more women into the venture capital space , focusing on retail investors and high-net worth individuals .
“ For every £1 of venture capital investment in the UK , all-female founder teams get less than 1p , while all-male founder teams get 89p , ” said Lesley Gregory , chair of the FVF ’ s advisory board .
“ This statistic is not new and yet it is , nevertheless , staggering to me… it must be addressed .
In my profession , I @ @ @ @ @ @ @ entrepreneurs who have solid business models and yet don ’ t receive the funding they need .
We want to change that.
” The FVF ’ s portfolio will feature businesses from a wide range of sectors , and will initially be comprised of companies from Innvotec ’ s existing raft of businesses , including The Worldness , an ecommerce platform helping retailers get back in their feet after the coronavirus crisis , Compare Ethics , a marketplace for sustainable fashion brands , and Green Sea Guard , a shipping emissions monitoring system @ @ @ @ @ @ @ SME owners as gender gap narrows Amir Kazmi , chief executive of Innvotec , said : “ “ We ’ re extremely pleased to launch this fund with such a prestigious advisory board… The fund is very well-positioned to assist growth in the medium to long term by providing expert advice alongside new equity .
“ The objective is to maximise returns , achieving significant capital gains across the portfolio and , ultimately , make a positive , measurable social impact.
” Before the Open : Get the jump on the markets with @ @ @ @

Innvotec launches fund for female-founded businesses in bid to ‘level the playing field’
Alternative investment fund manager Innvotec has launched a new fund to invest exclusively in female-founded enterprises, in a bid to tackle the gender funding gap in business.
Innvotec, one of London’s longest established independent fund managers, today announced the launch of its Female Ventures Fund (FVF) to invest in early-stage businesses founded or co-founded by women. The fund will provide initial capital for female-led businesses, in addition to further financial and advisory support for a 10-12 year period.
The seed enterprise investment scheme (SEIS) fund will also look to encourage more women into the venture capital space, focusing on retail investors and high-net worth individuals.
“For every £1 of venture capital investment in the UK, all-female founder teams get less than 1p, while all-male founder teams get 89p,” said Lesley Gregory, chair of the FVF’s advisory board.
“This statistic is not new and yet it is, nevertheless, staggering to me… it must be addressed. In my profession, I come across a wide range of female entrepreneurs who have solid business models and yet don’t receive the funding they need. We want to change that.”
The FVF’s portfolio will feature businesses from a wide range of sectors, and will initially be comprised of companies from Innvotec’s existing raft of businesses, including The Worldness, an ecommerce platform helping retailers get back in their feet after the coronavirus crisis, Compare Ethics, a marketplace for sustainable fashion brands, and Green Sea Guard, a shipping emissions monitoring system.
Amir Kazmi, chief executive of Innvotec, said: ““We’re extremely pleased to launch this fund with such a prestigious advisory board… The fund is very well-positioned to assist growth in the medium to long term by providing expert advice alongside new equity.
“The objective is to maximise returns, achieving significant capital gains across the portfolio and, ultimately, make a positive, measurable social impact.”
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cityam--2020-06-28--Government urged to fast-track 5G roll out to boost coronavirus recovery

The government could boost overall economic activity by £150bn if the UK were to speed up 5G rollout by two years , a new report has found , as Britain seeks to bolster its economy from the financial turmoil of coronavirus .
A new report published today by Vodafone found that the British economy could see productivity gains of more than £38bn over the next five years if the UK were to launch its 5G infrastructure in 2025 , two years earlier than planned .
Across a ten-year time frame this could mean a boost to UK output of more @ @ @ @ @ @ @ In London , an earlier 5G rollout could boost productivity by £9.1bn over the next five years , hiking to £28.8bn by 2030 , the report showed .
Read more : US firms to be allowed to work with Huawei on 5G standards Government plans to roll out new 5G infrastructure could see data speeds up to 100 times faster than the current 4G network , which will likely help transform business across sectors .
Research from O2 suggested that 5G will be instrumental to transforming the healthcare industry , and will free @ @ @ @ @ @ @ GP time each year by facilitating real-time health monitoring and video conferencing .
Rollout of the new technology is also integral to Prime Minister Boris Johnson ’ s target to have full-fibre “ gigabit broadband sprouting in every home ” by the end of 2025 , as part of plans to level up rural parts of Britain .
Johnson is expected to unveil plans for reviving the British economy tomorrow , as the UK faces its worst recession on record as a result of the pandemic .
Speaking to Sky News yesterday , @ @ @ @ @ @ @ ’ re building now very much a road to recovery , a road map focusing on infrastructure right now , levelling up across the country , focusing on roads , broadband — the type of things that effectively help to create jobs but also provide services and economic growth and opportunity across the country.
” Mayor of London Sadiq Khan said : “ As our economy begins to recover from the effects of Covid-19 , we need to explore the potential of 5G to improve Londoners ’ lives – from how they get @ @ @ @ @ @ @ healthcare .
“ Through our ambitious work on improving digital connectivity , we ’ re using London ’ s streets and the Tube network to improve fibre coverage and lay the foundations for 5G over the next decade.
” The UK ’ s efforts to roll out 5G have been stilted by indecision over whether to U-turn on a deal with Huawei over security fears .
Johnson has faced mounting pressure to scrap a contract with the Chinese tech firm to build 35 per cent of the UK ’ s 5G network , @ @ @ @ @ @ @ could be used in Beijing for spying .
Huawei has repeatedly denied the claims .
O2 last year snubbed the Chinese vendor in favour of Swedish telecoms firm Ericsson , amping up pressure for other UK networks to follow suit .
However , many companies have warned that ripping out Huawei technology from core 5G networks would prove too costly .
BT , which owns mobile network EE , is heavily reliant on Huawei in its UK mobile and full-fibre networks , and has warned that it will cost £500m to remove equipment @ @ @ @ @ @ @ network .
Vodafone earlier this month doubled down on its partnership with Huawei , claiming that the UK would lose its footing as the global leader in 5G if it had to rip out technology made by the Chinese firm .
“ We are not tied to one supplier , but it is important to understand the extent of what is at stake here , ” said Vodafone chief technology officer Scott Perry .
“ The UK ’ s leadership in 5G will be lost if mobile operators are forced to spend time @ @ @ @ @ @ @ the Open : Get the jump on the markets with our early morning newsletter

Government urged to fast-track 5G roll out to boost coronavirus recovery
Vodafone and Three are planning to merge
The government could boost overall economic activity by £150bn if the UK were to speed up 5G rollout by two years, a new report has found, as Britain seeks to bolster its economy from the financial turmoil of coronavirus.
A new report published today by Vodafone found that the British economy could see productivity gains of more than £38bn over the next five years if the UK were to launch its 5G infrastructure in 2025, two years earlier than planned. Across a ten-year time frame this could mean a boost to UK output of more than £158bn, the report showed.
In London, an earlier 5G rollout could boost productivity by £9.1bn over the next five years, hiking to £28.8bn by 2030, the report showed.
Government plans to roll out new 5G infrastructure could see data speeds up to 100 times faster than the current 4G network, which will likely help transform business across sectors.
Research from O2 suggested that 5G will be instrumental to transforming the healthcare industry, and will free up more than one million hours of GP time each year by facilitating real-time health monitoring and video conferencing.
Rollout of the new technology is also integral to Prime Minister Boris Johnson’s target to have full-fibre “gigabit broadband sprouting in every home” by the end of 2025, as part of plans to level up rural parts of Britain.
Johnson is expected to unveil plans for reviving the British economy tomorrow, as the UK faces its worst recession on record as a result of the pandemic.
Speaking to Sky News yesterday, the Prime Minister said: “We’re building now very much a road to recovery, a road map focusing on infrastructure right now, levelling up across the country, focusing on roads, broadband — the type of things that effectively help to create jobs but also provide services and economic growth and opportunity across the country.”
Mayor of London Sadiq Khan said: “As our economy begins to recover from the effects of Covid-19, we need to explore the potential of 5G to improve Londoners’ lives – from how they get around the city to how they access healthcare.
“Through our ambitious work on improving digital connectivity, we’re using London’s streets and the Tube network to improve fibre coverage and lay the foundations for 5G over the next decade.”
The UK’s efforts to roll out 5G have been stilted by indecision over whether to U-turn on a deal with Huawei over security fears.
Johnson has faced mounting pressure to scrap a contract with the Chinese tech firm to build 35 per cent of the UK’s 5G network, amid concerns technology made by the company could be used in Beijing for spying. Huawei has repeatedly denied the claims.
O2 last year snubbed the Chinese vendor in favour of Swedish telecoms firm Ericsson, amping up pressure for other UK networks to follow suit.
However, many companies have warned that ripping out Huawei technology from core 5G networks would prove too costly. BT, which owns mobile network EE, is heavily reliant on Huawei in its UK mobile and full-fibre networks, and has warned that it will cost £500m to remove equipment made by the Chinese vendor from its network.
Vodafone earlier this month doubled down on its partnership with Huawei, claiming that the UK would lose its footing as the global leader in 5G if it had to rip out technology made by the Chinese firm.
“We are not tied to one supplier, but it is important to understand the extent of what is at stake here,” said Vodafone chief technology officer Scott Perry.
“The UK’s leadership in 5G will be lost if mobile operators are forced to spend time and money replacing existing equipment.”
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cityam--2020-06-28--Boris Johnson to launch £1bn schools building programme

Boris Johnson will announce a new schools and further education building programme worth more than £1bn tomorrow .
The Prime Minister will announce that the first 50 projects of a ten-year rebuilding programme will get under way in 2020-21 .
A further £560m and £200m has also been earmarked for repairs and upgrades this year for schools and further education colleges respectively .
A statement from Downing Street said the funding would be targeted “ at school buildings in the worst condition across England – including substantial investment in the North and the Midlands – as part of the Prime @ @ @ @ @ @ @ opportunity for all ” .
Downing Street said the new building projects would be “ greener ” in order to help meet the government ’ s 2030 net-zero carbon emissions target .
Before the Open newsletter : Start your day with the City View podcast and key market data More details of the individual projects will be released in the government ’ s 2020-21 spending review , due later this year .
“ All children deserve the best possible start in life – regardless of their background or where they live , ” @ @ @ @ @ @ @ back from the pandemic , it ’ s important we lay the foundations for a country where everyone has the opportunity to succeed , with our younger generations front and centre of this mission .
“ This major new investment will make sure our schools and colleges are fit for the future , with better facilities and brand new buildings so that every child gets a world-class education.
” Read more : Robert Jenrick warned by civil service about £1bn development before approving it The £560m in repairs and upgrades for schools is @ @ @ @ @ @ @ school condition funding pledged for 2020-21 .
The £200m in repairs and upgrades for further education colleges is on top of the government ’ s commitment to spend £1.5bn over the next five years in this area .

Boris Johnson to launch £1bn schools building programme
Prime Minister Boris Johnson joins a socially distanced lesson during a visit to Bovingdon Primary School in Bovingdon, Hemel Hempstead, Hertfordshire
Boris Johnson will announce a new schools and further education building programme worth more than £1bn tomorrow.
The Prime Minister will announce that the first 50 projects of a ten-year rebuilding programme will get under way in 2020-21.
A further £560m and £200m has also been earmarked for repairs and upgrades this year for schools and further education colleges respectively.
A statement from Downing Street said the funding would be targeted “at school buildings in the worst condition across England – including substantial investment in the North and the Midlands – as part of the Prime Minister’s plan to level up opportunity for all”.
Downing Street said the new building projects would be “greener” in order to help meet the government’s 2030 net-zero carbon emissions target.
Before the Open newsletter: Start your day with the City View podcast and key market data
More details of the individual projects will be released in the government’s 2020-21 spending review, due later this year.
“All children deserve the best possible start in life – regardless of their background or where they live,” Johnson said.
“As we bounce back from the pandemic, it’s important we lay the foundations for a country where everyone has the opportunity to succeed, with our younger generations front and centre of this mission.
“This major new investment will make sure our schools and colleges are fit for the future, with better facilities and brand new buildings so that every child gets a world-class education.”
The £560m in repairs and upgrades for schools is in addition to an already £1.4bn in school condition funding pledged for 2020-21.
The £200m in repairs and upgrades for further education colleges is on top of the government’s commitment to spend £1.5bn over the next five years in this area.


cityam--2020-06-28--UK's top civil servant Sir Mark Sedwill resigns

The UK ’ s top civil servant Sir Mark Sedwill has resigned from his three-pronged role as cabinet secretary , national security adviser and head of the civil service .
Sedwill announced his resignation today and will step down from his role in September , after 30 years in the civil service .
Prime Minister Boris Johnson has nominated Sedwill for a life peerage and he will also lead a lead a new G7 panel on Global Economic Security .
Johnson ’ s chief Brexit negotiator David Frost will take up the role as national security adviser , while the @ @ @ @ @ @ @ head of the civil service will be recruited for .
In his resignation letter , Sedwill wrote : “ Two years ago , when my predecessor fell ill , your predecessor asked me to step in as cabinet secretary , and you asked me to continue to support you through Brexit and the election period .
“ It was obviously right to stay on for the acute phase of the Covid-19 crisis .
As you are setting out this week , the Government ’ s focus is now shifting to domestic and global @ @ @ @ @ @ @ have discussed over the past few months , while the combined model was right for the circumstances of my tenure , as you lead the country through this next phase , you will need a separate national security adviser to support you on the global agenda , permitting the cabinet secretary to focus on the domestic agenda.
” Johnson ’ s handwritten reply to the resignation was also released to the media , with the Prime Minister thanking Sedwill for his “ calm and shrewd advice ” .
He added : “ You @ @ @ @ @ @ @ from Afghanistan to the modernisation of the civil service ; from immigration policy to Brexit and defeating coronavirus .
“ After serving for decades with great distinction – and unflappable good humour – I believe you have earned the gratitude of the nation.
” The resignation of Sedwill was expected , after multiple media outlets reported today that he was preparing to step down next week .
It has been speculated that Sedwill and the Prime Minister had clashed over the past six months and that his exit will be the start of @ @ @ @ @ @ @ by Johnson and his team .
Johnson ’ s new national security adviser , David Frost , has been a close ally and has acted as the Prime Minister ’ s “ Brexit sherpa ” .
“ My aim is to support the Prime Minister in setting a new strategic vision for Britain ’ s place in the world as an independent country after the end of the EU transition period , and in championing that vision as we strengthen our international relationships , ” Frost said .
“ To do this effectively @ @ @ @ @ @ @ international policy apparatus , to ensure that we keep pace with others in the world .
The creation of the new Foreign , Commonwealth , and Development Office is one important step in this .
Implementing the Integrated Review of our international capability , and making sure we use the National Security Council to drive its results , are also essential and I look forward to leading both .
”

UK’s top civil servant Sir Mark Sedwill resigns
Boris Johnson Digital Cabinet Meeting.The Prime Minister Boris Johnson chairs his first digital Cabinet meeting inside the Cabinet Room of No10 during Covid-19 after being admitted to ICU with the coronavirus and the birth of his new son with his partner Carrie Symonds. Picture by Andrew Parsons / No 10 Downing Street
The UK’s top civil servant Sir Mark Sedwill has resigned from his three-pronged role as cabinet secretary, national security adviser and head of the civil service.
Sedwill announced his resignation today and will step down from his role in September, after 30 years in the civil service.
Prime Minister Boris Johnson has nominated Sedwill for a life peerage and he will also lead a lead a new G7 panel on Global Economic Security.
Johnson’s chief Brexit negotiator David Frost will take up the role as national security adviser, while the soon-to-be vacant positions of cabinet secretary and head of the civil service will be recruited for.
In his resignation letter, Sedwill wrote: “Two years ago, when my predecessor fell ill, your predecessor asked me to step in as cabinet secretary, and you asked me to continue to support you through Brexit and the election period.
“It was obviously right to stay on for the acute phase of the Covid-19 crisis. As you are setting out this week, the Government’s focus is now shifting to domestic and global recovery and renewal.
“As we have discussed over the past few months, while the combined model was right for the circumstances of my tenure, as you lead the country through this next phase, you will need a separate national security adviser to support you on the global agenda, permitting the cabinet secretary to focus on the domestic agenda.”
Johnson’s handwritten reply to the resignation was also released to the media, with the Prime Minister thanking Sedwill for his “calm and shrewd advice”.
He added: “You have done it all in Whitehall: from Afghanistan to the modernisation of the civil service; from immigration policy to Brexit and defeating coronavirus.
“After serving for decades with great distinction – and unflappable good humour – I believe you have earned the gratitude of the nation.”
The resignation of Sedwill was expected, after multiple media outlets reported today that he was preparing to step down next week.
It has been speculated that Sedwill and the Prime Minister had clashed over the past six months and that his exit will be the start of a larger overhaul of the civil service by Johnson and his team.
Johnson’s new national security adviser, David Frost, has been a close ally and has acted as the Prime Minister’s “Brexit sherpa”.
“My aim is to support the Prime Minister in setting a new strategic vision for Britain’s place in the world as an independent country after the end of the EU transition period, and in championing that vision as we strengthen our international relationships,” Frost said.
“To do this effectively we need to strengthen and refocus our international policy apparatus, to ensure that we keep pace with others in the world. The creation of the new Foreign, Commonwealth, and Development Office is one important step in this. Implementing the Integrated Review of our international capability, and making sure we use the National Security Council to drive its results, are also essential and I look forward to leading both.”


cityam--2020-06-28--CMA chair Tyrie was ‘forced to step down’ after row with directors

The chairman of the UK ’ s competition watchdog was forced to step down three years early after a stand-off with the firm ’ s chief executive , according to reports .
Lord Tyrie , who last week announced he would stand down as chairman of the Competition and Markets authority ( CMA ) in September three years earlier than planned , had fallen out with the regulator ’ s boss Andrea Coscelli prior to his departure , Sky News reported .
Coscelli is said to have told business secretary Alok Sharma that CMA directors had “ lost confidence ” @ @ @ @ @ @ @ and that he would step down as chief executive if Lord Tyrie refused to quit .
Sharma is head of the Department for Business , Energy and Industrial Strategy ( Beis ) , which is responsible for overseeing the CMA .
Lord Tyrie , former MP for Chichester and chairman of the Treasury Select Committee , took up the helm at the CMA in 2018 for an expected five-year tenure .
In a statement announcing his resignation , the peer said he was stepping down because of the “ inherent limits of my @ @ @ @ @ @ @ to make the case more forcefully for legislative and other reform — in parliament and beyond — than is possible…as CMA chairman , ” he said .
Beis said it has begun recruitment for a new CMA chair .
Lord Tyrie oversaw high-profile interventions during his time at the head of the CMA , where he pushed for wide-scale legislative change .
Read more : Germany to shake up accounting industry following Wirecard collapse In April last year , the watchdog published its final report on the UK audit market , which it @ @ @ @ @ @ @ ” .
The CMA has also urged the government to split up the Big Four accounting firms — PwC , Deloitte , EY and KPMG — on an operational basis to improve market competition and drive down costs .
News of sour relations behind Lord Tyrie ’ s departure comes days after the CMA was forced to revise its review of a potential Amazon stake in Deliveroo .
The CMA had provisionally cleared the e-commerce giant ’ s 16 per cent stake in Deliveroo , in light of the food delivery giant ’ @ @ @ @ @ @ @ However in an updated ruling published this week , the watchdog said it has now provisionally found that the investment should be cleared “ because it is not expected to damage competition in either restaurant delivery or online convenience grocery delivery ” .
The revision has raised questions over the CMA ’ s initial scrutiny of the potential deal .
The watchdog is now asking for views on its provisional findings by 10 July .
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CMA chair Tyrie was ‘forced to step down’ after row with directors
(via gov.uk)
The chairman of the UK’s competition watchdog was forced to step down three years early after a stand-off with the firm’s chief executive, according to reports.
Lord Tyrie, who last week announced he would stand down as chairman of the Competition and Markets authority (CMA) in September three years earlier than planned, had fallen out with the regulator’s boss Andrea Coscelli prior to his departure, Sky News reported.
Coscelli is said to have told business secretary Alok Sharma that CMA directors had “lost confidence” in Lord Tyrie’s leadership, and that he would step down as chief executive if Lord Tyrie refused to quit.
Sharma is head of the Department for Business, Energy and Industrial Strategy (Beis), which is responsible for overseeing the CMA.
Lord Tyrie, former MP for Chichester and chairman of the Treasury Select Committee, took up the helm at the CMA in 2018 for an expected five-year tenure.
In a statement announcing his resignation, the peer said he was stepping down because of the “inherent limits of my position”.
“I now want to make the case more forcefully for legislative and other reform — in parliament and beyond — than is possible…as CMA chairman,” he said.
Beis said it has begun recruitment for a new CMA chair.
Lord Tyrie oversaw high-profile interventions during his time at the head of the CMA, where he pushed for wide-scale legislative change.
In April last year, the watchdog published its final report on the UK audit market, which it said had identified “serious competition problems”. The CMA has also urged the government to split up the Big Four accounting firms — PwC, Deloitte, EY and KPMG — on an operational basis to improve market competition and drive down costs.
News of sour relations behind Lord Tyrie’s departure comes days after the CMA was forced to revise its review of a potential Amazon stake in Deliveroo. The CMA had provisionally cleared the e-commerce giant’s 16 per cent stake in Deliveroo, in light of the food delivery giant’s impacted finances during the pandemic.
However in an updated ruling published this week, the watchdog said it has now provisionally found that the investment should be cleared “because it is not expected to damage competition in either restaurant delivery or online convenience grocery delivery”.
The revision has raised questions over the CMA’s initial scrutiny of the potential deal. The watchdog is now asking for views on its provisional findings by 10 July.
Before the Open: Get the jump on the markets with our early morning newsletter


cityam--2020-06-28--Sir Keir Starmer overtakes Boris Johnson as preferred PM

Labour leader Sir Keir Starmer has overtaken Boris Johnson in polling as the UK ’ s preferred prime minister for the first time .
An Opinium Poll out last night showed 37 per cent of people thought Starmer would do a better job as prime minister , compared to 35 per cent for Johnson .
Read more : Boris Johnson ’ s approval rating continues to plummet in new poll Starmer has a +27 per cent personal approval rating , while Johnson ’ s is “ narrowly negative ” , according to Opinium ’ s head of political polling Adam @ @ @ @ @ @ @ had the Conservatives leading Labour in voting intention by 43 per cent to 39 per cent .
“ Politically , the ‘ new normal ’ is that for the first time in over a decade Labour has a leader who outperforms their party while the Conservatives have a leader who underperforms theirs and the crossover in preferred prime minister is a reflection of that , ” Drummond said .
The new polling comes after Starmer sacked Jeremy Corbyn ally Rebecca Long-Bailey from her post as shadow education secretary on Thursday , after retweeting @ @ @ @ @ @ @ .
Starmer sacked his former leadership rival after she refused to apologise for the tweet or take it down , prompting applause from many moderate Labour MPs and supporters and fury from the party ’ s hard-left faction .
Shadow cabinet members Jonathan Reynolds and Ed Miliband both came out today to strongly back Starmer ’ s “ zero-tolerance ” stance against antisemitism .
When asked by the BBC if Starmer was a better Labour leader than he ever was , Miliband said : “ Definitely – we ’ ve seen that already @ @ @ @ @ @ @ approval ratings , I think he ’ s made a great start .
I think he ’ s made a great start .
“ I think he ’ s shown , not just competence , I think he ’ s shown the kind of seriousness this crisis demands .
You know what I think of Keir ?
I think the more people see of him , the more people will see the integrity , the principle and the decency I know really well.
” The new Opinium poll also showed the public ’ @ @ @ @ @ @ @ handling of the Covid-19 crisis continued to plummet , with 59 per cent thinking the current levels of testing in the UK are insufficient .
Fifty-seven per cent disapprove of the government ’ s handling of the test and trace system and 54 per cent think the country is coming out of lockdown too fast .
Read more : UK coronavirus deaths jump by 186 to hit 43,414 “ The scenes at Bournemouth beach and elsewhere over the weekend may have made an impression on voters with a big jump ( from 46 @ @ @ @ @ @ @ in the number saying the UK is coming out of lockdown too quickly , ” Drummond said .
“ Politically , many of the other figures are largely stable with approval of the government ’ s handling of the pandemic remaining negative and approval of specific elements like track and trace or testing remaining significantly more negative .
”

Sir Keir Starmer overtakes Boris Johnson as preferred PM
Keir Starmer and Boris Johnson both face questions over their parties’ visions
Labour leader Sir Keir Starmer has overtaken Boris Johnson in polling as the UK’s preferred prime minister for the first time.
An Opinium Poll out last night showed 37 per cent of people thought Starmer would do a better job as prime minister, compared to 35 per cent for Johnson.
Starmer has a +27 per cent personal approval rating, while Johnson’s is “narrowly negative”, according to Opinium’s head of political polling Adam Drummond.
However, the poll still had the Conservatives leading Labour in voting intention by 43 per cent to 39 per cent.
“Politically, the ‘new normal’ is that for the first time in over a decade Labour has a leader who outperforms their party while the Conservatives have a leader who underperforms theirs and the crossover in preferred prime minister is a reflection of that,” Drummond said.
The new polling comes after Starmer sacked Jeremy Corbyn ally Rebecca Long-Bailey from her post as shadow education secretary on Thursday, after retweeting an interview containing an antisemitic conspiracy theory.
Starmer sacked his former leadership rival after she refused to apologise for the tweet or take it down, prompting applause from many moderate Labour MPs and supporters and fury from the party’s hard-left faction.
Shadow cabinet members Jonathan Reynolds and Ed Miliband both came out today to strongly back Starmer’s “zero-tolerance” stance against antisemitism.
When asked by the BBC if Starmer was a better Labour leader than he ever was, Miliband said: “Definitely – we’ve seen that already.
“I certainly never had his approval ratings, I think he’s made a great start. I think he’s made a great start.
“I think he’s shown, not just competence, I think he’s shown the kind of seriousness this crisis demands. You know what I think of Keir? I think the more people see of him, the more people will see the integrity, the principle and the decency I know really well.”
The new Opinium poll also showed the public’s disapproval for the government’s handling of the Covid-19 crisis continued to plummet, with 59 per cent thinking the current levels of testing in the UK are insufficient.
Fifty-seven per cent disapprove of the government’s handling of the test and trace system and 54 per cent think the country is coming out of lockdown too fast.
“The scenes at Bournemouth beach and elsewhere over the weekend may have made an impression on voters with a big jump (from 46 per cent to 54 per cent) in the number saying the UK is coming out of lockdown too quickly,” Drummond said.
“Politically, many of the other figures are largely stable with approval of the government’s handling of the pandemic remaining negative and approval of specific elements like track and trace or testing remaining significantly more negative.”


cityam--2020-06-28--Robert Jenrick warned by civil service about £1bn development before approving it

Under fire housing secretary Robert Jenrick was urged by civil servants to block a controversial £1bn East London housing development by Tory donor Richard Desmond before he approved it .
Jenrick went on to ignore the advice of his mandarins and instead reversed the Tower Hamlets Council ’ s decision to reject the planning application .
Read more : Prime Minister has ‘ full confidence ’ in Jenrick over £1bn housing row The Sunday Times has also revealed that Jenrick texted and met with Desmond , but did not tell his civil servants – a potential violation of the ministerial @ @ @ @ @ @ @ told The Times that Jenrick was warned by civil servants that the development had a 70-80 per cent chance of being judicially reviewed , and that it would violate planning rules .
Jenrick ignored the warnings and pressed on with the project , granting it approval just a day before a new tax came in , which would have cost Desmond up to £50m .
The new revelations add to the growing list of links between Jenrick and the developer in the lead-up to the controversial decision , which Labour has likened to @ @ @ @ @ @ @ about Jenrick ’ s approval of the Westferry development , the Whitehall source said “ we had to get with the programme or go away ” .
The housing secretary was forced to pull approval for the development last month , after he admitted the decision was “ unlawful ” on grounds of “ apparent bias ” .
It was revealed earlier this month that Desmond sat on a table with Jenrick at a Conservative party fundraiser shortly before the development was approved in January .
Desmond also donated £12,000 to the Tories @ @ @ @ @ @ @ approval .
The prominent Tory donor is also said to have ties with Boris Johnson and his senior adviser Sir Eddie Lister .
The Ministry of Housing , Communities and Local Government said : “ A full account has been sent to the HCLG select committee by the secretary of state and the department has published relevant documents online .
We have nothing further to add.
” A spokesman for 10 Downing Street said : “ The government ’ s position on society lottery rules has been set out by DCMS and the @ @ @ @ @ @ @ by both .
”

Robert Jenrick warned by civil service about £1bn development before approving it
Under fire housing secretary Robert Jenrick was urged by civil servants to block a controversial £1bn East London housing development by Tory donor Richard Desmond before he approved it.
Jenrick went on to ignore the advice of his mandarins and instead reversed the Tower Hamlets Council’s decision to reject the planning application.
The Sunday Times has also revealed that Jenrick texted and met with Desmond, but did not tell his civil servants – a potential violation of the ministerial code of conduct.
A Whitehall source told The Times that Jenrick was warned by civil servants that the development had a 70-80 per cent chance of being judicially reviewed, and that it would violate planning rules.
Jenrick ignored the warnings and pressed on with the project, granting it approval just a day before a new tax came in, which would have cost Desmond up to £50m.
The new revelations add to the growing list of links between Jenrick and the developer in the lead-up to the controversial decision, which Labour has likened to “cash for favours”.
Speaking about Jenrick’s approval of the Westferry development, the Whitehall source said “we had to get with the programme or go away”.
The housing secretary was forced to pull approval for the development last month, after he admitted the decision was “unlawful” on grounds of “apparent bias”.
It was revealed earlier this month that Desmond sat on a table with Jenrick at a Conservative party fundraiser shortly before the development was approved in January.
Desmond also donated £12,000 to the Tories just two weeks after Jenrick gave his approval.
The prominent Tory donor is also said to have ties with Boris Johnson and his senior adviser Sir Eddie Lister.
The Ministry of Housing, Communities and Local Government said:“A full account has been sent to the HCLG select committee by the secretary of state and the department has published relevant documents online. We have nothing further to add.”
A spokesman for 10 Downing Street said: “The government’s position on society lottery rules has been set out by DCMS and the Gambling Commission, following open public consultation by both.”


cityam--2020-06-28--Germany to shake up accounting industry following Wirecard collapse

Germany is set to overhaul its accounting industry as part of measures to soften the fallout from the collapse of payments fintech Wirecard last week .
Wirecard , which premiered on Germany ’ s main Dax index with a €24bn ( £21.8bn ) valuation just two years ago , filed for insolvency last week after auditors found a €1.9bn black hole in its accounts .
Read more : How do you solve a problem like Wirecard ?
The German government today said it will terminate its contract with the Financial Reporting Enforcement Panel – the country ’ s accounting watchdog @ @ @ @ @ @ @ Financial Times reported , as the country seeks to cushion the damage of the Wirecard debacle .
Jorg Kukies , Germany ’ s deputy finance minister , told the FT that the Wirecard affair showed “ self-regulation by the auditors doesn ’ t work properly ” .
German regulators have faced criticism that they did not sufficiently supervise the German fintech , after auditor EY failed to request account information from a Singapore bank relating to the missing €1.9bn for more than three years .
Big Four accounting firm KPMG was hired to @ @ @ @ @ @ @ s finances last year , resulting in an inconclusive report .
In April , KPMG failed to verify that large chunks of Wirecard ’ s business , in addition to €1bn in company cash , actually existed .
Chancellor Angela Merkel said the Wirecard case was “ alarming ” , while finance minister Olaf Scholz described it as “ a scandal which is most unprecedented in the world of finance ” .
Senior figures have long called for reform within the accounting industry , after a series of high-profile accounting blunders involving companies @ @ @ @ @ @ @ .
The UK ’ s independent accounting regulator , the Financial Reporting Council , last year found that more than a quarter of UK audits fell short of quality thresholds .
Read more : Softbank plans to sue EY over its role in Wirecard scandal Simon Bittlestone , chief executive of financial analytics technology firm Metapraxis , told City A.M : “ Wirecard ’ s plunge poses a really broad question around how in 2020 we can still have accounting failures that orientate around cash at the bank not being present .
It @ @ @ @ @ @ @ requires the model to change , and become more technology-based , ” he added .
“ Part of the problem is that the audit firms are still relying on people to do the audits .
Until we see that we ’ ll still see fraud and accounting failures causing all sorts of challenges.
” The collapse of Wirecard last week marked a significant fall from grace for a company once regarded as a European fintech darling .
Shares hit an all-time high of €191 in the summer of 2018 , but fell to @ @ @ @ @ @ @ Before the Open : Get the jump on the markets with our early morning newsletter

Germany to shake up accounting industry following Wirecard collapse
Germany is set to overhaul its accounting industry as part of measures to soften the fallout from the collapse of payments fintech Wirecard last week.
Wirecard, which premiered on Germany’s main Dax index with a €24bn (£21.8bn) valuation just two years ago, filed for insolvency last week after auditors found a €1.9bn black hole in its accounts.
The German government today said it will terminate its contract with the Financial Reporting Enforcement Panel – the country’s accounting watchdog — as early as tomorrow, the Financial Times reported, as the country seeks to cushion the damage of the Wirecard debacle.
Jorg Kukies, Germany’s deputy finance minister, told the FT that the Wirecard affair showed “self-regulation by the auditors doesn’t work properly”.
German regulators have faced criticism that they did not sufficiently supervise the German fintech, after auditor EY failed to request account information from a Singapore bank relating to the missing €1.9bn for more than three years.
Big Four accounting firm KPMG was hired to conduct a special audit into Wirecard’s finances last year, resulting in an inconclusive report. In April, KPMG failed to verify that large chunks of Wirecard’s business, in addition to €1bn in company cash, actually existed.
Chancellor Angela Merkel said the Wirecard case was “alarming”, while finance minister Olaf Scholz described it as “a scandal which is most unprecedented in the world of finance”.
Senior figures have long called for reform within the accounting industry, after a series of high-profile accounting blunders involving companies such as Enron, Tesco and Carillion.
The UK’s independent accounting regulator, the Financial Reporting Council, last year found that more than a quarter of UK audits fell short of quality thresholds.
Simon Bittlestone, chief executive of financial analytics technology firm Metapraxis, told City A.M: “Wirecard’s plunge poses a really broad question around how in 2020 we can still have accounting failures that orientate around cash at the bank not being present. It is just madness.”
“The solution requires the model to change, and become more technology-based,” he added. “Part of the problem is that the audit firms are still relying on people to do the audits. Until we see that we’ll still see fraud and accounting failures causing all sorts of challenges.”
The collapse of Wirecard last week marked a significant fall from grace for a company once regarded as a European fintech darling. Shares hit an all-time high of €191 in the summer of 2018, but fell to as little as €1.28 on Friday.
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cityam--2020-06-29--Vodafone likely to snub the City for Frankfurt for towers business listing

Vodafone is veering away from the City , and is instead eyeing up Frankfurt for the listing of its multi-billion-pound European towers business , in a move that will further position the firm away from Britain .
The telecoms firm last week invited advisers to pitch for a role on the planned flotation of its European tower units , set for early next year .
The FTSE 100 group is seeking a valuation of between €10bn ( £9.2bn ) and €20bn , and the listing could raise more than €2bn , according to people familiar with the matter .
Read @ @ @ @ @ @ @ ’ s Huawei doubts The towers business , Towerco , forms a legally separate organisation within Vodafone , boasting almost 62,000 masts across 10 countries .
Vodafone predicts it will likely bring in annual revenue of roughly €1.7bn , with proportionate Ebitda of around €900m .
In May , Vodafone chief executive Nick Read said London and Frankfurt are both strong contenders for a listing venue .
However , Vodafone is now leaning towards Frankfurt as a listing venue , according to a Bloomberg report .
Deliberations are thought to be at an @ @ @ @ @ @ @ have been made .
The move would mark a further blow for the telecoms firm ’ s presence in Britain , as Vodafone continues to pivot towards Europe for its central operations .
Vodafone is headquartered in Paddington , London , however its new towers unit has significant operations in Germany , and is set to be headquartered in Dusseldorf .
Read last year said Germany was the “ heart of the company ” , marking 40 per cent of free cash flow , but that “ London remains a good place to @ @ @ @ @ @ @ the move casts fresh doubt on whether Vodafone will retain the City as its global base , as the UK edges towards the Brexit deadline .
Read added : “ Obviously , with Brexit I hope that remains the case.
” Towers have become a vital trading asset for cash-strapped European telecoms firms in Europe , with companies such as BT , Telefonica , Iliad , and Sunrise selling masts .
Read more : Sadiq Khan backs proposal for quicker 5G rollout in London Vodafone ’ s decision to spin off its towers @ @ @ @ @ @ @ ease its €42.2bn debt pile .
The telecoms company claims the Towerco business will create Europe ’ s largest towers portfolio .
Shares remained largely flat on the news at 125.7p at 12pm .
Before the Open : Get the jump on the markets with our early morning newsletter

Vodafone likely to snub the City for Frankfurt in towers business listing
Vodafone is veering away from the City, and is instead eyeing up Frankfurt for the listing of its multi-billion-pound European towers business, in a move that will further position the firm away from Britain.
The telecoms firm last week invited advisers to pitch for a role on the planned flotation of its European tower units, set for early next year. The FTSE 100 group is seeking a valuation of between €10bn (£9.2bn) and €20bn, and the listing could raise more than €2bn, according to people familiar with the matter.
The towers business, Towerco, forms a legally separate organisation within Vodafone, boasting almost 62,000 masts across 10 countries. Vodafone predicts it will likely bring in annual revenue of roughly €1.7bn, with proportionate Ebitda of around €900m.
In May, Vodafone chief executive Nick Read said London and Frankfurt are both strong contenders for a listing venue.
However, Vodafone is now leaning towards Frankfurt as a listing venue, according to a Bloomberg report. Deliberations are thought to be at an early stage, and no final decisions have been made.
The move would mark a further blow for the telecoms firm’s presence in Britain, as Vodafone continues to pivot towards Europe for its central operations.
Vodafone is headquartered in Paddington, London, however its new towers unit has significant operations in Germany, and is set to be headquartered in Dusseldorf.
Read last year said Germany was the “heart of the company”, marking 40 per cent of free cash flow, but that “London remains a good place to have a global headquarters”.
But the move casts fresh doubt on whether Vodafone will retain the City as its global base, as the UK edges towards the Brexit deadline. Read added: “Obviously, with Brexit I hope that remains the case.”
Towers have become a vital trading asset for cash-strapped European telecoms firms in Europe, with companies such as BT, Telefonica, Iliad, and Sunrise selling masts.
Vodafone’s decision to spin off its towers business comes as the company attempts to ease its €42.2bn debt pile. The telecoms company claims the Towerco business will create Europe’s largest towers portfolio.
Shares remained largely flat on the news at 125.7p at 12pm.
Vodafone was approached for comment.
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cityam--2020-06-29--Leicester lockdown: Pubs and restaurants may stay closed for two more weeks

Leicester may be forced to extend restrictions on restaurants and pubs for a further two weeks due to a local coronavirus flare up , according to the city ’ s mayor .
Sir Peter Soulsby said today that the government recommended that England ’ s current social distancing restrictions , due to be lifted on Saturday , are not lifted for the Midlands city .
Soulsby told BBC Radio 4 that Leicester may “ remain restricted for two weeks longer than the rest of the country ” .
However , Soulsby said that the government may not be able to @ @ @ @ @ @ @ the local council does not want to .
He said the government ’ s advice did not “ provide us with the information we need if we are to remain restricted for two weeks longer than the rest of the country ” .
Home secretary Priti Patel yesterday said that Leicester would likely be the first English city to be put into a local Covid-19 lockdown .
The Sunday Times first reported that Leicester could be headed back into lockdown , with 658 new cases in the fortnight to 16 June .
The @ @ @ @ @ @ @ in food production plants , as well as one hospital .
There have been seven coronavirus outbreaks in food processing plants across the country .
Experts say the facilities ’ cold conditions and manner of work provide ideal environment for the virus to grow .
Speaking to the BBC yesterday , Patel said : “ The health secretary [ Matt Hancock ] was in touch with many of us over the weekend explaining some of the measures to support on testing and resources that will go into the local authorities as well .
@ @ @ @ @ @ @ global coronavirus cases pass 10m and fears of second wave mount “ With local flare ups , it ’ s right we have a localised solution in terms of infection control , social distancing , testing and many of the tools that actually within the Public Health England space will come together to control the virus.
” Prime Minister Boris Johnson said last month , when he revealed the government ’ s “ roadmap ” to easing social distancing restrictions , that localised lockdowns could be implemented to combat coronavirus flare ups .

Leicester lockdown: Pubs and restaurants may stay closed for two more weeks
Home secretary Priti Patel yesterday said that Leicester would likely be the first English city to be put into a local Covid-19 lockdown.
Leicester may be forced to extend restrictions on restaurants and pubs for a further two weeks due to a local coronavirus flare up, according to the city’s mayor.
Sir Peter Soulsby said today that the government recommended that England’s current social distancing restrictions, due to be lifted on Saturday, are not lifted for the Midlands city.
Soulsby told BBC Radio 4 that Leicester may “remain restricted for two weeks longer than the rest of the country”.
However, Soulsby said that the government may not be able to force the city to lock down if the local council does not want to.
He said the government’s advice did not “provide us with the information we need if we are to remain restricted for two weeks longer than the rest of the country”.
Home secretary Priti Patel yesterday said that Leicester would likely be the first English city to be put into a local Covid-19 lockdown.
The Sunday Times first reported that Leicester could be headed back into lockdown, with 658 new cases in the fortnight to 16 June.
The upsurge in cases reportedly comes after outbreaks in food production plants, as well as one hospital.
There have been seven coronavirus outbreaks in food processing plants across the country.
Experts say the facilities’ cold conditions and manner of work provide ideal environment for the virus to grow.
Speaking to the BBC yesterday, Patel said: “The health secretary [Matt Hancock] was in touch with many of us over the weekend explaining some of the measures to support on testing and resources that will go into the local authorities as well.
“With local flare ups, it’s right we have a localised solution in terms of infection control, social distancing, testing and many of the tools that actually within the Public Health England space will come together to control the virus.”
Prime Minister Boris Johnson said last month, when he revealed the government’s “roadmap” to easing social distancing restrictions, that localised lockdowns could be implemented to combat coronavirus flare ups.


cityam--2020-06-29--McLaren seals £150m in funding from Bahraini bank

Supercar firm McLaren has arranged a new £150m financing facility with Bahrain ’ s national bank , the lender announced today .
The auto company has been hit hard by the coronavirus pandemic , announcing that it would make 1,200 job cuts across its businesses last month .
Read more : McLaren to cut 1,200 jobs as coronavirus forces group restructuring In a regulatory filing , the National Bank of Bahrain confirmed the new funding arrangement , saying : “ Final documentation has been signed and all the necessary approvals have been granted in relation to a £150 million financing @ @ @ @ @ @ @ the supercar maker to fill a liquidity gap which it previously said would need to be filled by mid-July .
Although £291m was injected into the firm in March by investors , it has already been spent due to the impact of the pandemic .
It had been reported that the company would resort to selling off its collection of classic cars in order to raise emergency funds of up to £275m .
Before the Open newsletter : Start your day with the City View podcast and key market data NBB is 44 @ @ @ @ @ @ @ sovereign wealth fund Mumtalakat , which also holds a majority stake in McLaren .
Last month , the firm said that the cancellation of motorsport , the suspension of manufacturing and retail operations and the reduced need for technological solutions were responsible for its cash problems .
About a quarter of the Surrey-based company ’ s 4,000-strong workforce will be lost due to the redundancies .
Jobs will be cut across the group ’ s applied , automotive and racing businesses , as well as its support and back office functions .
Group @ @ @ @ @ @ @ no choice but to reduce the size of its workforce .
City A.M. has contacted McLaren for comment .

McLaren seals £150m in funding from Bahraini bank
Supercar firm McLaren has arranged a new £150m financing facility with Bahrain’s national bank, the lender announced today.
The auto company has been hit hard by the coronavirus pandemic, announcing that it would make 1,200 job cuts across its businesses last month.
In a regulatory filing, the National Bank of Bahrain confirmed the new funding arrangement, saying: “Final documentation has been signed and all the necessary approvals have been granted in relation to a £150 million financing facility”.
The move will help the supercar maker to fill a liquidity gap which it previously said would need to be filled by mid-July.
Although £291m was injected into the firm in March by investors, it has already been spent due to the impact of the pandemic.
It had been reported that the company would resort to selling off its collection of classic cars in order to raise emergency funds of up to £275m.
Before the Open newsletter: Start your day with the City View podcast and key market data
NBB is 44 per cent owned by Bahrain’s sovereign wealth fund Mumtalakat, which also holds a majority stake in McLaren.
Last month, the firm said that the cancellation of motorsport, the suspension of manufacturing and retail operations and the reduced need for technological solutions were responsible for its cash problems.
About a quarter of the Surrey-based company’s 4,000-strong workforce will be lost due to the redundancies.
Jobs will be cut across the group’s applied, automotive and racing businesses, as well as its support and back office functions.
Group chairman Paul Walsh said the firm had no choice but to reduce the size of its workforce.
City A.M. has contacted McLaren for comment.


cityam--2020-06-29--Eurozone economic confidence continues recovery in June

Economic sentiment in the eurozone continued to recover in June following a modest pick-up in May , with improvements recorded across all sectors .
Overall sentiment rose to 75.7 points in June from 67.5 in May , still short of market expectations of 80.0 and well below the average of 100 since 2000 , new European Commission data showed .
The index had crashed to its lowest level since measurements started in April as lockdowns closed large sectors of the bloc ’ s economy .
The eurozone ’ s largest economies — France , Germany , Italy , Spain and @ @ @ @ @ @ @ economic confidence .
Before the Open newsletter : Start your day with the City View podcast and key market data May ’ s pick-up was driven by increases in sentiment in eurozone industry and among consumers , while sentiment rose across all sectors in June , the data showed , with the sharpest rebounds recorded in retail trade and services .
Expectations about production , future demand or plans to make purchases drove the improvement recorded in June .
All sectors also viewed employment plans more favourably , with the indicator recovering between @ @ @ @ @ @ @ losses seen in March and April .
Read more : ECB chief economist : Don ’ t get too excited by solid eurozone data Economic data released last week suggested that the eurozone ’ s historic economic downturn slowed in June as lockdowns across the bloc were relaxed .
Private sector activity in the eurozone hit a four-month high this month , IHS Markit ’ s flash purchasing managers ’ index showed , but economists warned that a V-shape recovery could soon run out of steam if unemployment rises or a second wave @ @ @ @ @

Eurozone economic confidence continues recovery in June
A worker at a factory producing masks in Troisdorf, western Germany
Economic sentiment in the eurozone continued to recover in June following a modest pick-up in May, with improvements recorded across all sectors.
Overall sentiment rose to 75.7 points in June from 67.5 in May, still short of market expectations of 80.0 and well below the average of 100 since 2000, new European Commission data showed.
The index had crashed to its lowest level since measurements started in April as lockdowns closed large sectors of the bloc’s economy.
The eurozone’s largest economies — France, Germany, Italy, Spain and the Netherlands — all individually registered increased economic confidence.
Before the Open newsletter: Start your day with the City View podcast and key market data
May’s pick-up was driven by increases in sentiment in eurozone industry and among consumers, while sentiment rose across all sectors in June, the data showed, with the sharpest rebounds recorded in retail trade and services.
Expectations about production, future demand or plans to make purchases drove the improvement recorded in June.
All sectors also viewed employment plans more favourably, with the indicator recovering between 40 and 60 per cent of the losses seen in March and April.
Economic data released last week suggested that the eurozone’s historic economic downturn slowed in June as lockdowns across the bloc were relaxed.
Private sector activity in the eurozone hit a four-month high this month, IHS Markit’s flash purchasing managers’ index showed, but economists warned that a V-shape recovery could soon run out of steam if unemployment rises or a second wave of coronavirus cases emerge.


cityam--2020-06-29--Coronavirus: Almost half of UK businesses expect they will have to lay off employees

Almost half of UK businesses expect that the coronavirus crisis will force them to lay off employees .
A new survey from YouGov revealed that 42 per cent of UK businesses expect they will have fewer employees in a year ’ s time compared to before the coronavirus lockdown .
Read more : Boris Johnson doubles down on spending plans after coronavirus ‘ disaster ’ This compares to just 16 per cent of people who expect to employ more people in a year ’ s time than prior to the Covid lockdown .
Sectors most likely to say they will @ @ @ @ @ @ @ and financial services .
The new survey also found that 47 per cent of businesses have lower growth expectations , while 15 per cent have higher growth expectations .
It comes as Prime Minister Boris Johnson is preparing to lay out his government ’ s plans for an infrastructure and jobs programme to combat the Covid economic downturn .
Before the Open newsletter : Start your day with the City View podcast and key market data Speaking to Times Radio today , Johnson said he would take a “ Rooseveltian approach ” to @ @ @ @ @ @ @ New Deal saw vastly expanded public spending while he was US President during the Great Depression .
“ [ Coronavirus ] has been a disaster , ” Johnson said .
“ Let ’ s not mince our words , I mean this has been an absolute nightmare for the country and the country has gone through a profound shock .
“ But in those moments you have the opportunity to change and to do things better .
We really want to build back better , to do things differently , to invest in @ @ @ @ @ @ @ name it.
” Read more : UK debt office plans record bond sales to help struggling economy recover Labour leader Sir Keir Starmer said the government had not done enough to protect UK businesses from job losses .
“ It ’ s staggering that in light of the economic crisis that is about to descend upon us that we are not having a July budget that puts jobs at the centre of economic recovery , ” he said .

Coronavirus: Almost half of UK businesses expect they will have to lay off employees
Almost half of UK businesses expect that the coronavirus crisis will force them to lay off employees.
A new survey from YouGov revealed that 42 per cent of UK businesses expect they will have fewer employees in a year’s time compared to before the coronavirus lockdown.
This compares to just 16 per cent of people who expect to employ more people in a year’s time than prior to the Covid lockdown.
Sectors most likely to say they will employ less staff are manufacturing, media/marketing and financial services.
The new survey also found that 47 per cent of businesses have lower growth expectations, while 15 per cent have higher growth expectations.
Oliver Rowe, director of reputation and business research at YouGov, said: “But while these are clearly difficult times for business, some will undoubtedly use this opportunity to reassess their current model and adapt to the new environment.
“Lots of businesses already say they will have less need for physical space, as staff working from home becomes more accepted, and almost half expect to make more use of online systems and software than they did prior to lockdown.”
It comes as Prime Minister Boris Johnson is preparing to lay out his government’s plans for an infrastructure and jobs programme to combat the Covid economic downturn.
Before the Open newsletter: Start your day with the City View podcast and key market data
Speaking to Times Radio today, Johnson said he would take a “Rooseveltian approach” to recovery.
Franklin Roosevelt’s unprecedented New Deal saw vastly expanded public spending while he was US President during the Great Depression.
“[Coronavirus] has been a disaster,” Johnson said.
“Let’s not mince our words, I mean this has been an absolute nightmare for the country and the country has gone through a profound shock.
“But in those moments you have the opportunity to change and to do things better. We really want to build back better, to do things differently, to invest in infrastructure, transport, broadband – you name it.”
Labour leader Sir Keir Starmer said the government had not done enough to protect UK businesses from job losses.
“It’s staggering that in light of the economic crisis that is about to descend upon us that we are not having a July budget that puts jobs at the centre of economic recovery,” he said.


cityam--2020-06-29--How Fintech can help during and after COVID-19

In the coming weeks , tools that support the financially vulnerable will come to the fore .
Fintech has the capacity to support the most vulnerable with affordable credit and promote financial wellness .
The COVID-19 crisis has sent shockwaves through the UK economy .
Many companies have applied for business support , with around 8.7 million jobs currently furloughed through the Coronavirus Job Retention Scheme .
The fallout from the crisis is going to leave a large number of people economically impacted , from the already financially vulnerable to those who have experienced redundancy , extended furlough or reduced @ @ @ @ @ @ @ points to one thing – a large increase in the number of people who are now financially at risk .
Fintech has the capability to help plug the holes left by the welfare system and traditional financial services .
It is transparent , agile and can reach large numbers of consumers at low cost .
As of January 2020 , it was estimated that 1.6 million people in the UK were still regularly using doorstep lenders to address shortfalls in cash flow .
But it doesn ’ t have to be this way @ @ @ @ @ @ @ for example , Wagestream , which enables employees to access accrued salary during the month rather than waiting for their payday .
Others such as SalaryFits , already within reach of 700,000 employees in the UK , allows employees to access salary-deductible short- and long-term loans , alongside other financial services .
Measures such as these negate the need for credit scoring and can free at-risk people from a cycle of unsustainable debt repayment .
Companies using underlying pre-payment technology can allow for cash cards to be used by those unable to access @ @ @ @ @ @ @ technology allows the self-employed access to financial products and government support that they might otherwise have been excluded from , and digital-first banks enable customers to micromanage their finances unlike ever before through accurate and instant analytics .
Furthermore , traditional non-banking financial institutions such as credit unions can take advantage of new technology to reduce their operational costs and pass this onto their customers .
Digital Banks with a focus on financial wellbeing such as Dozens are looking to educate and empower people to benefit from the democratisation of financial services through @ @ @ @ @ @ @ by partnering with incumbent financial institutions .
For example , open banking platform , Money Dashboard , allows users to connect their current accounts , savings accounts and credit cards from high street banks to make it easier to manage personal finances .
In addition , businesses like Plaid , which was recently acquired by Visa , can accelerate partnerships by providing an interface connecting all kinds of financial institutions and Fintechs .
The COVID-19 crisis is accelerating overall digital adoption across the population .
But we must see further collaboration between Fintech @ @ @ @ @ @ @ financial institutions , investors , government , regulators and other stakeholders in order to speed up Fintech adoption .
Fintech was born out of the last great financial crisis and we should not hesitate to use it to help our economy recover in an increasingly digitised world .
This article originally appeared in Business and Industry ’ s 2020 Fintech Campaign .

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How Fintech can help during and after COVID-19
In the coming weeks, tools that support the financially vulnerable will come to the fore. Fintech has the capacity to support the most vulnerable with affordable credit and promote financial wellness.
The COVID-19 crisis has sent shockwaves through the UK economy. Many companies have applied for business support, with around 8.7 million jobs currently furloughed through the Coronavirus Job Retention Scheme.
The fallout from the crisis is going to leave a large number of people economically impacted, from the already financially vulnerable to those who have experienced redundancy, extended furlough or reduced working hours. Unfortunately, this all points to one thing – a large increase in the number of people who are now financially at risk.
Fintech can be society’s safety net
Fintech has the capability to help plug the holes left by the welfare system and traditional financial services. It is transparent, agile and can reach large numbers of consumers at low cost. As of January 2020, it was estimated that 1.6 million people in the UK were still regularly using doorstep lenders to address shortfalls in cash flow. But it doesn’t have to be this way.
Fintech has some innovative solutions, for example, Wagestream, which enables employees to access accrued salary during the month rather than waiting for their payday. Others such as SalaryFits, already within reach of 700,000 employees in the UK, allows employees to access salary-deductible short- and long-term loans, alongside other financial services. Measures such as these negate the need for credit scoring and can free at-risk people from a cycle of unsustainable debt repayment.
Companies using underlying pre-payment technology can allow for cash cards to be used by those unable to access a full bank account. Open banking technology allows the self-employed access to financial products and government support that they might otherwise have been excluded from, and digital-first banks enable customers to micromanage their finances unlike ever before through accurate and instant analytics.
Furthermore, traditional non-banking financial institutions such as credit unions can take advantage of new technology to reduce their operational costs and pass this onto their customers. Digital Banks with a focus on financial wellbeing such as Dozens are looking to educate and empower people to benefit from the democratisation of financial services through technology.
The power of partnerships
Fintechs can amplify their reach by partnering with incumbent financial institutions. For example, open banking platform, Money Dashboard, allows users to connect their current accounts, savings accounts and credit cards from high street banks to make it easier to manage personal finances. In addition, businesses like Plaid, which was recently acquired by Visa, can accelerate partnerships by providing an interface connecting all kinds of financial institutions and Fintechs.
The COVID-19 crisis is accelerating overall digital adoption across the population. But we must see further collaboration between Fintech companies, banks, tech giants, financial institutions, investors, government, regulators and other stakeholders in order to speed up Fintech adoption. Fintech was born out of the last great financial crisis and we should not hesitate to use it to help our economy recover in an increasingly digitised world.
This article originally appeared in Business and Industry’s 2020 Fintech Campaign.