Financial Times 04Feb2020

(Jacob Rumans) #1

2 ★ FINANCIAL TIMES Tuesday4 February 2020


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N AT I O N A L


E M M A AGY E M A N G

The number of people required to fill
out atax returnhas hit a record high,
which analysts have attributed to an
increase in self-employment.

Figures released by HM Revenue & Cus-
tomsyesterday revealed 11.7m people
were required to submit aself-assess-
ment eturn and pay any tax due by Jan-r
uary 31, up from 11.5m last year, the pre-
vious highest total.
Of those expected to file a return,
10.8m — 92 per cent — did so on time.
The 958,296 individuals who missed the
deadline face an immediate £
fine, with the potential for furtherpen-
alties.
Overall, HMRC received a record
11.1m returns by the deadline, made up
of both expected and unsolicited
returns and late self-assessment regis-
trations.
Many left it to the last minute, how-
ever. More than 700,000 submitted
their tax returns on deadline day, with
26,562 completing their returns

between 11pm and 11.59pm on January


  1. Meanwhile, 10.4m submitted their
    returns online, rather than via post,
    more than ever before.
    “The record number of tax self-as-
    sessments filed reflects the rise and rise
    of the self-employed sector,” said Alas-
    dair Hutchison, policy development
    manager at the Association of Inde-
    pendent Professionals and the Self-
    Employed.
    Data released last month from the
    Office for National Statistics showed the
    number ofself-employed eople hadp
    risen above 5m for the first time.
    Mr Hutchison added: “The record
    number of self-assessments isn’t just
    because of the rise in the number of peo-
    ple who define themselves as self-em-
    ployed, however: it’s also because more
    and more people now have side hustles
    alongside other work.”
    Angela MacDonald, HMRC’s director-
    general for customer services, said: “It’s
    great to see that the majority of custom-
    ers have submitted and paid their tax
    returns before January 31.”


HMRC


Rise in self-employed boosts


numbers filing tax returns


G E O R G E PA R K E R A N D J I M P I C K A R D
LONDON
M U R E D I C K I E— EDINBURGH


Claire O’Neill,sacked by Boris Johnson
last week from her role running a UN cli-
mate summit in November, has accused
the prime minister in a scathing letter of
failing to provide leadership on the
issue.
Former energy minister Ms O’Neill
told Mr Johnson the government was
“miles off track” in setting a positive
agenda for the UN summit in Glasgow,


called Cop26, and that promises of
action “are not close to being met”.
Ms O’Neill, who was president of
Cop26, urged Mr Johnson and his gov-
ernment to resetpriorities and move cli-
mate change to the “top of the Premier
League of their priorities from where it
is now, stuck currently somewhere
around the middle of League One”.
The UN summit in Glasgow should
involve governments from around the
world seeking to agree tough new tar-
gets to cut greenhouse gas emissions.
But the letter by Ms O’Neill, seen by
the Financial Times, laid bare the acri-
mony around Cop26, a centrepiece of
the prime minister’s attempt to demon-
strate the influence of a post-Brexit
“Global Britain”.

The intervention comes just hours
before Mr Johnson launches Cop26 in a
speech at the Science Museum in Lon-
dontoday.
Mr Johnson willdemonstrate the

government’s green credentials by
bringing forward an end to the sale of
new petrol and diesel vehicles to 2035,
including hybrids for the first time,
from a previous target of 2040.
In her letter to Mr Johnson, Ms O’Neill

askedMr Johnson to put aside his per-
sonal animosity with first minister
Nicola Sturgeon over the organising of
Cop26 in Glasgow, adding: “I under-
stand you declined in salty terms.”
She claimed that the prime minister
wasconsidering relocating the summit
to Englandbecause of the “ballooning
costs” of organising it in Glasgow.
Although some officials claim the
budget for the event, which wasset at
£250m, is heading towards almost
£500m, both Downing Street and the
Scottish governmentdenied that a shift
of venue was on the cards.
One Scottish government official said
it had been “completely straight”with
the UK government, which appeared to
have underestimated the scale and com-

plexity of the event. Ms O’Neill said in
her letter hat she had set out an actiont
plan for Cop26 which included usingthe
UK diplomatic service to keep pressure
on countries to tackle climate change
and setting “net zero as the clear sci-
ence-based target” for all nations, busi-
nesses and cities.
Ms O’Neill told the prime minister:
“You promised to ‘lead from the front’
and asked me what was needed: ‘money,
people, just tell us!’ Sadly these prom-
ises are not close to being met.”
Mr Johnson’s spokesman played
down tensions between Number 10 and
the Scottish government. “We are work-
ing closely with the Scottish govern-
ment. We thank Claire for her service
and have nothing more to add to it.”

Green agenda


PM criticised over climate summit


Former minister raps


ohnson over perceivedJ


inaction before UN event


VA L E N T I N A R O M E I

Business conditions in the manufactur-
ing sector stabilised at the start of the
year as political uncertainty eased and
the domestic market strengthened,
according to an industry survey.

The IHS Markit/Cips manufacturing
purchasing managers’ index rose to a
nine-month high of 50 in January, up
from 47.5 in December and marginally
higher than the “flash”, or initial, esti-
mate of 49.8.
A reading below 50 indicatesmost
businesses reported a fall in activity.
“The start of 2020 saw the perform-
ance of the UKmanufacturing ectors
stabilise, as receding levels of political
uncertainty following the general elec-
tion aided mild recoveries in new order
intakes, employment and business con-
fidence,” said Rob Dobson, director at
IHS Markit.
The sub-index for new orders rose to
51.23 in January from 46.45 the month
before. It was the highest since April,
reflecting stronger domestic demand.
In contrast, export orders weighed on
the sector with a reading of 47.7; compa-
nies cited weak economic growth in

Europe as the main factor for the fall.
“A strengthened domestic market was
the main source of new business,” said
Mr Dobson.
“Overseas demand remained disap-
pointing, however, as new export busi-
ness fell for the third straight month in
response to weak economic growth in
key markets.”
Improved new businesses lifted activ-
ity in the consumer and intermediate
goods sector, while the downturn in the
investment goods sector continued.
“The investment goods sector rem-
ained in decline as uncertainty still
maintained a stranglehold on long-term
decisions,” said Duncan Brock, group
director at the Chartered Institute of
Procurement & Supply.
Optimism improved to an eight-
month high, with 47 per cent of manu-
facturers forecasting that output would
expand over the year ahead. However,
this remained well below the unspeci-
fied “historical standards of the survey”,
Markit said, adding this was in part
due to “ongoing uncertainty at some
firms about the impact of Brexit on their
businesses”.
The stabilisation inmanufacturing
reflects the easing of the global down-
turn in a sector that has been particu-
larly hard hit by the prolonged US-
China trade war and the reduced invest-
ment linked to heightened trade policy
uncertainty.
However, while the signing of the
phase one US-China trade deal raised
hopes of no further deterioration in the
trading environment, the coronavirus
outbreak poses new risks.
Last week, the Bank of England kept
rates on hold, reflecting a stabilisation
of the global economy as well as better
UK survey data. The central bank aid its
would monitor the extent to which im-
proved UK sentiment was sustained and
followed through to production data.

PMI data


Domestic


demand lifts


new orders


at factories


‘A strengthened domestic


market was the main
source of new business’

Rob Dobson, IHS Markit

‘You promised to “lead


from the front”... Sadly
these promises are not

close to being met’


More than 1m university students
face disruption to classes this month
after one of the leading trade unions
representing academic staff
announced plans for strikes over pay
and pensions.
The University and College Union
said members would begin 14 days of
strikes on February 20 at 74
universities, escalating proteststhat
affected 60 institutions in November
and December.
The move follows what the UCU
described as insufficient progress in
talks with the Universities and
Colleges Employers’ Association, and
Universities UK,which oversees
pensions in the sector.
It said there had been progress in
talks on workload but not on the call
for pay rises. It is also demanding
that employers cover the cost of
pension contribution rises imposed
on staff over the past year.
Andrew Jack and Josephine Cumbo

Class action


University


staff to strike


Lecturers on strike
in Newcastle in 2018
David Whinham/Alamy

R O B E RT W R I G H T A N D H E L E N WA R R E L L


Retrospective legislation will be intro-
duced to delay the release of hundreds
of terrorist prisoners, Robert Buck-
land, justice secretary, said yesterday.


he pledge came a day after the secondT
knife attack in London in weeks by a
recently released terror inmate.
Mr Buckland told MPs the govern-
ment would introduce a bill barring the
release of those jailed for terror-related
offences until at least two-thirds of the
way through their sentences.
Most offenders in England and Wales
are released automatically on licence
halfway through their sentences under
measures brought in to ease prison
overcrowding in 2008.
Mr Buckland said no one would be
freed before the end of a term imposed
by the courts unless the parole board
had certified them safe for release.


On Sunday,Sudesh Amman, 20,
stabbed two people n Streatham, southi
London, days after his release halfway
through a 40-month prison sentence.
Amman had been convicted in Decem-
ber 2018 of 16 counts of dissemination
of terrorist material and six counts of
collecting information likely to be use-
ful to a person planning a terrorist act.
Amman, who left a man in his 40s
with serious injuries and a woman in her
50s with minor injuries, had been con-
sidered such a threat that armed police
officers had been assigned to follow him
on his release — the highest form of
supervision available, short of being
behind bars. They shot him dead almost
immediately after the attack started.
On November 29, Usman Khan, 28,
killed two people at Fishmongers’ Hall
in central London before police shot
him dead.
Mr Buckland did notexplain the legal

mechanism by which his department
intended to impose the tougher sen-
tences retrospectively. Ministers are
generally powerless to impose new pen-
alties on people after their trials.
He told MPs:“We face an unprece-
dented situation of severe gravity and,
as such, it demands that the govern-

ment responds immediately and that
this legislation will therefore also apply
to serving prisoners.”
Liberty, the human rights group, said
the government’s response to recent ter-
ror attacks was a “cause of increasing
concern for... civil liberties”.
“It’s clear the UK’s counterterror sys-
tem is in chaos and desperately needs
proper scrutiny and review,” said Clare
Collier, the group’s advocacy director.
The announcement yesterday seeks
to make retrospective measures that
Priti Patel, home secretary, vowed to
introducefor future offenders ftera
November’s attack.
Figures show that on September 30,
224 people were in jail for terror
offences in Great Britain and of those 77
per cent were classified as holding
Islamist views. The figures show 53 were
released in the year to June 2019.
Lawrence Sherman, director of the

Institute of Criminology at Cambridge
university, said more research was
needed into the effect of sentencing on
terror offenders. However, he gave a
cautious welcome to the new provisions,
saying terror offenders were likely to
react differently to sentencing from
other offenders, who generallydid not
respond o tougher sentences.t
“Ending the historically recent auto-
matic half-sentence release policy
would not be a radical change in the rule
of law,” Prof Sherman said.
Amman presented particular difficul-
ties for the authorities.While his con-
viction for sharing Islamist propaganda
was relatively low down the range of ter-
ror offences, his intent to commit ter-
rorist acts appeared dangerously high.
He would have been designated as one
of the 15 most dangerous people on
counterterror police’s radar, according
to one Whitehall official.

Security


ustice secretary vows to delay release of terrorists after London knife attackJ


Sudesh Amman: was freed halfway
through a 40-month sentence

L AU R A H U G H E S

The full rollout of universal credit, the
government’s controversial welfare
reform programme, has been delayed
by an additional nine months to Sep-
tember 2024.

The latest delay would add an estimated
£500m to the overall cost of moving
claimants on to the new system over the
next five years, government officials
said.
The Department for Work and Pen-
sions said yesterday the delay was nec-
essary because the number of people
who had been movedon to UC was lower
than officials had expected.
Will Quince, the minister for welfare
delivery, said claimants would not lose
money as a result of the “forecasting
change”.
Universal credit’s phasing in began in
2013 and was due to be fully rolled out
by April 2017 but it has been plagued by
a series of technical delays.
More than 2.8m people claim the pay-
ment, which merges six existing bene-

fits, including housing benefit and child
tax credits, into one monthly sum. The
aim is to simplify the welfare system,
both to help claimants and cut fraud,
and encourage work.
Critics say there is vidence that ite
forces many recipients into debt and
hardship. he wait for the first paymentT
after being accepted on to universal
credit, during which claimants receive
no money, was originally a minimum of
six weeks, but has been reduced to five.
An extra 900,000 people had not yet
transferred from the old system, the
government saidyesterday.
While the additional cost of providing
these people with “transitional protec-
tion” to cushion the effect of losing
income once on universal credit would
be an estimated £500m, officials said
the full rollout of the benefit remained
within budget.
Margaret Greenwood, the shadow
work and pensions secretary, said the
delay was “hugely embarrassing” for
the government, as “this as supposedw
to be its flagshipprogramme”.

Welfare


Universal credit’s full rollout


put back to September 2024


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FTSE All-ShareCAC 40Xetra DaxNikkeiHang Seng18909.26 19063.22 -0.813990.0024111.59 24301.09 -0.7812312.87 12256.43 0.465122.515089.644011.01 -0.520.
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$ per ££ per €$ per €CURRENCIES1.070Mar 311.2510.8551.0741.249prev0.
¥ per $¥ per £SFr per €€ indexCOMMODITIES111.430 111.295139.338 139.03588.767 89.0461.0711.069$ index€ per $£ index¥ per €£ per $€ per £SFr per £119.180 119.476104.536 104.63677.226 76.705Mar 310.8000.9351.1691.252prev0.9321.1641.2440.
Oil Brent $Gold $Oil WTI $Mar 311244.8553.3550.461248.8050.35prev53.130.220.41%chg-0.

UK Gov 10 yrGer Gov 10 yrUS Gov 10 yrINTEREST RATESprice100.3598.6399.271.222.41yield0.33-0.01chg0.02-0.
Jpn Gov 10 yrUS Gov 30 yrGer Gov 2 yrFed Funds E 0.6699.27price100.36102.57-0.753.04prev0.070.660.010.00chg0.000.
US 3m BillsEuro Libor 3mUK 3mPrices are latest for editionData provided by Morningstar-0.360.340.78-0.360.340.780.000.000.

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