GOVERNMENT URGED TO REINFORCE COVID-19 FINANCIAL SUPPORT MEASURES

The Federation of Small Businesses (FSB) has warned that 250,000 small businesses are facing collapse without further government assistance (Financial Times, £, p2). The survey was carried out at the end of December 2020, prior to the most recent lockdown, adding to concern for the future prospects of some SMEs. FSB national chairman Mike Cherry said: "The development of business support measures has not kept pace with intensifying restrictions (BBC News).?

In an upcoming speech today, Labour leader Sir Keir Starmer is expected to urge Downing Street to ?protect family incomes and support businesses?, while calling for an extension of the moratorium on evictions and repossessions and scrapping of the government's pay freeze for public sector workers (BBC News). Meanwhile, the chancellor has rejected calls to continue public borrowing without restraint to boost the economy, arguing that a rise in interest rates could send the cost of paying down debt to unsustainably high levels (The Telegraph, £, B1). The chancellor is due to give an economic update in a statement to the Commons this afternoon at 3:30pm.

CHANCELLOR RISHI SUNAK OUTLINES FUTURE ECONOMIC LANDSCAPE

In a wide-ranging interview with City AM's ?The City View? podcast, Chancellor Rishi Sunak discusses the government's response to the Covid-19 pandemic and the future of the City. Mr Sunak said that the Treasury would seek to ?play a role? in boosting the financial services sector post-Brexit, adding that there are multiple elements of the UK-EU trade deal announced on Christmas Eve 'that are good for financial services?, such as provisions around the free flow of data, business data, and professional services (City AM).

With the Brexit transition period having elapsed, the chancellor believes the Square Mile could be on course for a ?Big Bang 2.0?. Mr Sunak expressed his desire to re-examine the landscape of the City, with the launch of a Green Bond, review of listing regimes, and the growth of digital currency providing potential novel opportunities. The chancellor said he was optimistic about the future of the City of London and financial services more broadly, explaining that many of its key advantages - such as timezone, language, culture, and creativity - are immutable and innate.

NEWS IN BRIEF

The Prince of Wales is due to launch a new charter to encourage adherence to sustainable practices by business and industry. The ?Terra Carta? urges private sector firms to sign up to a set of guidance principles which place ?nature, people and planet at the heart of global value creation" (Sky News).

Covid-19 has exacerbated a longstanding late payment problem for British businesses, according to the Institute of Directors. A poll by the institute highlights that almost one in five businesses said they had faced an increase in overdue commercial debts during the pandemic (The Times, £, p45).

The Department for Digital, Culture, Media and Sport (DCMS) has announced the extension of the dormant asset scheme beyond bank accounts. Dormant funds within pension and investment funds will be used for charitable causes to assist with recovery from the Covid-19 pandemic (The Guardian, online only).

England's chief medical officer Professor Chris Whitty has urged the public to minimise the amount of time spent outside their homes, as he warned that the NHS faces its most challenging month of the pandemic yet. This coincides with growing concern among ministers around reportedly low public compliance with the current lockdown rules, and the opening of the first mass vaccination centres across the UK today (Reuters).