FINANCIAL SERVICES CAN BE AN ?ENGINE FOR THE RECOVERY?

The UK should consider changes to financial regulation in order to free up capital to support the economic recovery, alongside prioritising service-based trade deals and investment-friendly policies, a report from TheCityUK has suggested (Reuters). The report, A Roadmap for Economic Recovery¸ says the government and regulators should ?demonstrate explicitly? how implementing pending regulation would contribute to the UK's economic recovery as well as consulting on proposals to unlock capital through regulatory reform. Other recommendations include increased action on diversity and inclusion, strengthening mentoring, youth and mobility schemes and more focus on upskilling and reskilling (Yahoo).

Miles Celic, chief executive of TheCityUK, said: "Throughout this pandemic, our industry has been a shock absorber, giving people and businesses help and support to endure the economic impact of Covid-19. As we move to the next phase of rebuilding and growth, our industry also has a key role to play as an engine for the recovery.?

OPTIMISM GROWS IN FINANCIAL SERVICES

The level of confidence amongst financial services firms has grown at the fastest rate in more than seven years, according to a new survey from the Confederation of British Industry (CBI) and PwC (The Times, £). As the economy begins to reopen, 52 per cent of respondents said they felt confident about the future in the three months to March, up from 44 per cent in December. The survey found that business volumes have dropped slightly, however firms were hopeful that the Covid-19 vaccination programme will help to restart the economy.

The research also found that more than two-thirds of financial services firms plan to reconfigure their existing office space as employees return to work, with nearly 60 per cent intending to cut office space (City AM). Regulatory changes and evolving customer behaviours will be the biggest drivers of disruption for financial services businesses during the next year, the survey found.

NEWS IN BRIEF

Stamp duty should be cut permanently, the Organisation for Economic Co-operation and Development has suggested, helping to increase investment and make it easier for people to move to new jobs in different parts of the country (Daily Telegraph).

Nearly two-fifths of workers are given less than a week's notice to change their work patterns or shifts, according to research from the Living Wage Foundation (Financial Times).

The number of job vacancies in the City has increased by 70 per cent in the first three months of the year, according to new research from recruitment agency Morgan McKinley (Daily Telegraph, B2).

Data from the Office for National Statistics showed that productivity increased by 0.4 per cent last year, despite a near ten per cent fall in economic output (The Times).

LATEST BLOGS

Dr Hamish Patrick, Finance and Restructuring Partner at Shepherd and Wedderburn LLP discusses the reasons why the new Scottish parliament should pass the Moveable Transactions Bill.