FISCAL RULES COULD BE LOOSENED TO SUPPORT ECONOMY

The government's fiscal rules could be loosened to help the economy manage the impact of coronavirus, the chancellor Rishi Sunak is expected to say in the Budget on Wednesday (The Guardian, p1). Speaking on the BBC yesterday, Mr Sunak said he believed in the ?importance of fiscal responsibility? but did not commit to keeping to the rules (Financial Times, p2, £). Steps to support businesses are expected to be announced including delayed payments on tax bills and bridging financing. Speaking on Today on Radio 4 on Saturday, UK Finance Chief Executive Stephen Jones said that the banking industry is ready to support viable businesses and urged firms to speak to their finance provider as early as possible.

This morning the FTSE fell by over eight per cent at opening, the largest drop since the financial crisis, resulting in over £100 billion being wiped off the value of the top listed companies due to concerns over coronavirus (Daily Telegraph, £), while oil prices have fallen by 30 per cent (Financial Times, £).

Meanwhile the prime minister Boris Johnson will chair a Cobra meeting later today where a decision is expected on whether to move to the ?delay? phase in preventing the spread of the virus (BBC Online). Such a step could lead to schools being closed and people being encouraged to work from home.

The European Central Bank (ECB) has told the majority of its 3,500 staff to work from home today as a ?precautionary test? for its remote working infrastructure (The Times, p38, £). The Financial Times (£) reports warnings that shortages of component parts and raw materials will be worse than expected for US firms. Some supermarkets have begun rationing sales of items such as pasta and antibacterial wipes (The Guardian, p3).

TAKE FIVE WEEK LAUNCHES

New research from the Take Five to Stop Fraud campaign has revealed eight in ten people would feel embarrassed if they fell for a financial scam, with dating scams top of the list, followed by online, investment and phone scams. Less than half of people surveyed would tell their friend if they fell for a scam, and fewer than one in five would tell a colleague, boss or a neighbour.

The research comes at the start of Take Five Week, which will see awareness-raising activities in branches and online. As part of the week, 27 major banks and buildings societies are uniting under a new Charter to help combat fraud and scams. The Take Five Charter aims to raise awareness of the fight against criminals and get people talking about fraud and scams, bringing the industry together to give people simple and consistent advice. Signatories are required to use the Take Five campaign's clear information on their websites, digital banking facilities, ATMs, social media, in branch displays and staff communications.

Katy Worobec, Managing Director: Economic Crime at UK Finance, said:

?Fraud can have devastating effects on individuals, families and business. It is imperative that we are all vigilant in the fight against it. More is being done than ever before to protect the public, but the industry can't tackle the issue alone. During Take Five Week it's vital that we all help each other by talking about fraud and knowing that it's important to Stop, Challenge and Protect when asked for any money or information.

?Through the Take Five Charter banks and building societies are joining forces to provide consistent advice to customers as part of the industry's action to stop money getting into the hands of serious and organised criminals.?

The Take Five campaign is urging people to:

• Stop: Taking a moment to stop and think before parting with your money or information could keep you safe.
• Challenge: Could it be fake? It's ok to reject, refuse or ignore any requests. Only criminals will try to rush or panic you.
• Protect: Contact your bank immediately if you think you?ve fallen for a scam and report it to Action Fraud.

NEWS IN BRIEF

The government will commit to introducing new laws in Wednesday's Budget to ensure that those who rely on cash can still access it as and when they need to (Sky News). Talks will soon begin with the industry, the Bank of England, Financial Conduct Authority (FCA) and Payment Systems Regulator (PSR) to ensure customer needs are met, including for vulnerable groups (Financial Times, £). Responding to the announcement, Stephen Jones, Chief Executive of UK Finance, said that the industry recognises 'the importance of ensuring cash remains free and widely available in an increasingly digital society?.

The chancellor is being urged to abandon plans to give HMRC priority when assets are shared out following the collapse of a business (Daily Telegraph, B6, £). Eleven groups, including UK Finance and R3, the insolvency trade body, have warned that the changes could reduce access to finance for firms.

The number of interviews the Financial Conduct Authority (FCA) has held to vet staff in line for senior roles at financial services companies rose 27 per cent to 233 in 2018 (City AM, p12, print only).

Heavy storms and bad weather led to a 7.8 per cent drop in footfall on the high street last month, according to Springboard Footfall Monitor & Insights (The Guardian, p28, print only).

The UK government is finalising plans for a consultation which would overhaul audit regulation and see company directors responsible for certifying the accuracy of financial statements (Financial Times, £).

The Financial Conduct Authority (FCA) has today begun a review into the use and value of data and advanced analytics in wholesale financial markets (Financial Conduct Authority).

Leaders of major cities are hoping for more control ahead of a White Paper setting out proposals for more devolution, following Boris Johnson's pledge to ?level up? the economy (The Telegraph, £, B3).

WHAT THE COMMENTATORS SAY

The chancellor 'should relax the fiscal rules? in the budget on Wednesday according to the editorial in today's Financial Times (p20, £). A combination of the trade deal discussions with the EU and the impact of coronavirus could ?create a drag on the economy? and fiscal policy should be used to support growth. Extra spending should be targeted, the editorial says, including investment in infrastructure, education and on the National Health Service. However, the editorial says that the opportunity for tax reforms should not be missed, with suggestions for a surcharge on overseas home buyers and ending the freeze on fuel duty and entrepreneur's relief all ?good candidates?.

LATEST BLOGS

Ben Poxon blogs about the today's publication by the FCA of comparison of banking providers? fraud controls.

LATEST VIDEOS

Following International Women's Day, Catherine Woods of Standard Chartered talks about its work to prevent and raise awareness of modern slavery.