Financial Times Weekend 22-23Feb2020

2 ★ FT Weekend 22 February/23 February 2020

FINANCIAL TIMES
Bracken House, 1 Friday Street, London EC4M 9BT.

Published by:The Financial Times Limited,
Bracken House, 1 Friday Street,
London EC4M 9BT.
Tel: 020 7873 3000
Editor: Roula Khalaf

Subscriptions and Customer Service
Tel 0800 028 1407; [email protected];
http://www.ft.com/subscribenow

Advertising
Tel: 020 7873 4000; [email protected]
Letters to the editor
[email protected]
Executive appointments
Tel: 020 7873 4909; http://www.exec-appointments.com

Printed by
St Clements Press (1988) Ltd, London, Newsprinters
(Knowsley) Limited, Merseyside, Newsprinters
(Eurocentral) Glasgow, and Smurfit Kappa News
Press Ld, Kells, Ireland

© Copyright The Financial Times Limited 2020. All
rights reserved.

Reproduction of the contents of this newspaper in

any manner is not permitted without the publisher’s

prior consent.

‘Financial Times’ and ‘FT’ are registered trade marks

of The Financial Times Limited.

The Financial Times and its journalism are subject to

a self-regulation regime under the FT Editorial Code

of Practice: http://www.ft.com/editorialcode

Reprints

Are available of any FT article with your company

logo or contact details inserted if required (minimum

order 100 copies).

One-off copyright licences for reproduction of FT

articles are also available.

For both services phone 020 7873 4816, or

alternatively, email [email protected]

Newspapers support recycling

The recycled paper content of UK newspapers in

2017 was 64.6%

NAT I O N A L

C H R I S T I G H E— NEWCASTLE

Robert Frewen will be thinking of a

forthcoming ban on the sale of coal and

wet wood as he lights the fire in the

library at his 16th century stone farm-

house in Upper Swaledale, North York-

shire, today.

Mr Frewen, a rural surveyor for the

Country Land & Business Association in

the north of England, cares about the

environment, he says, and is keen to see

action on global warming.

But he is fearful the government,

under pressure to meet its target of cut-

ting emissions to close to zero by 2050, is

introducing new regulations that could

have unintended consequences, hitting

rural communities, where many locals

are struggling to make ends meet.

“I’m particularly worried about the

rural poor and the people who supple-

ment a meagre income by doing a bit of

firewood,” said Mr Frewen. He cited his

local wood supplier, a tenant farmer

who adds to a very low income by selling

wood locally, including fallen trees that

need tidying up.

Yesterday’s announcement by the

government that sales of coal and wet

wood will be phased out between 2021

and 2023 aims to tackle worsening air

quality caused by the popularity of

wood-burning stoves.

The government claims wood burn-

ing stoves and coal fires are the single

largest source of the pollutant PM2.5,

emitting 38 per cent of harmful particu-

late matter in the UK, twice the amount

from industrial combustion and three

times as much as road transport.

These microscopic pollutants have

been linked with a range of medical con-

ditions, including asthma, heart disease

and cancer, because the particles pass

into the lungs and bloodstream.

The government is not banning wood

burning stoves. But sales of all bagged

house coal will be phased out by Febru-

ary 2021 as will sales of wet wood below

two cubic metres, roughly equivalent to

a small van load.

Sales of wet wood in larger volumes

will only be permitted after that date

with advice on how to dry it before

burning. The sale of loose coal will be

banned by February 2023. The rules

apply only in England because legisla-

tion on air pollution is devolved.

The new rules will permit the house-

hold burning of dry wood and of manu-

factured solid fuels, both of which are

more expensive.

The government said manufacturers

of solid fuels would need to know that

they had a “very low sulphur content”

and emitted only a small amount of

smoke, “with all manufactured solid

fuels needing to be labelled as compli-

ant”.

Households that rely on domestic

coal, many of them on low incomes, face

a 30-50 per cent increase in their annual

fuel bills, the Coal Merchants Federation

of Great Britain warned.

The UK’s two biggest producers of

coal, Hargreaves Services and the Banks

Group, which are both based in north-

east England, are frustrated at the gov-

ernment’s decision because, they argue,

kiln-dried and seasoned woods emit as

much as or more PM2.5s than house

coal per unit when used on an open

domestic fire.

Cutting coal use has, they fear,

become a handy headline to give the

appearance of tackling climate change.

“It’s coal being targeted,” said John

Burks, managing director of Hargreaves

production and distribution division.

“Once you have a bad reputation,

that sticks.”

Logging offBan on sale of coal and wet wood threatens rural poor

GE O R G E ST E E R

Leaseholders who are eager to move but
unable to sell or remortgage their flats
because of cladding issues are accepting
bids from cash investors, often for tens
of thousands of pounds less than the
properties’ most recent market value.
Since the Grenfell Tower tragedy, in
which 72 people died in a blaze that was
spread by flammable aluminium com-
posite material — or ACM — cladding,
the government has issued new guide-
lines encouraging building owners to
take “general fire precautions” and

ensure their structures are clad in mate-

rial with limited combustibility.

But the advisory notice, released in

December 2018, has had the unin-

tended consequence of drastically

reducing valuations of flats in buildings

that have yet to be declared safe. Many

of these properties have been valued at

zero by lenders, stopping thousands of

sales and forcing owners who urgently

need to sell to consider cash offers far

below what their homes are worth.

“The people buying are what I’d

call predatory investors,” said Mark

Hayward, chief executive of NAEA

Propertymark, a professional body for

estate agents. “Basically they’ll apply as

big a discount as they can by capitalising

on the stress of the existing occupant.”

Up to 17,000 households still live in

privately owned blocks with similar

cladding to Grenfell Tower. The English

Housing Survey estimates 266,

households live in privately owned flats

in buildings at least 18 metres high, hun-

dreds of which have yet to be checked

for other types of dangerous cladding.

Ben Orford, a sales manager from

Manchester, failed to find a bank willing

to lend against his ACM-clad property,

so sold his two-bedroom flat for cash to

the chief operating officer of a large UK

company receiving £20,000 less than it

had been valued earlier in the year.

Just down the road, in Castlefield, a

three-bedroom apartment in a building

coated in timber cladding is being

advertised on Rightmove to “cash buy-

ers only” for £70,000 less than the origi-

nal asking price. Buildings with wood in

their wall systems were also covered by

the government’s advisory notice.

According to the estate agent market-

ing properties in the same building,

most of the interest comes from “over-

seas cash investors who are willing to

inherit the risk” of having to pay for

future remedial works — assuming the

developer does not pay themselves.

None of the cash investors contacted

responded to a request for comment.

As well as living in potentially unsafe

conditions, occupants of buildings that

have not been given the all-clear face

soaring service charge bills to pay for

24-hour waking watch patrols and — if

their building is found to have combus-

tible cladding different to the ACM

that coated Grenfell Tower — no guaran-

tee that the building owners will foot the

bill for expensive remedial works.

In a survey of leaseholders from 117

housing developments this month by

the Leasehold Knowledge Partnership,

a charity that supports leaseholders,

90 per cent of respondents said the gov-

ernment’s response to the “cladding cri-

sis” had been “no help at all”.

In December, the Royal Institution of

Chartered Surveyors, the Building Soci-

eties Association and UK Finance,

which represents lenders, announced

an industry-wide valuation process to

help people whose homes had yet to be

declared safe so that they could begin to

buy and sell their properties, but a

shortage of qualified fire engineers to

conduct safety assessments means long

waiting lists, while some mortgage pro-

viders are rejecting the form entirely.

Combustible cladding

Predatory investors exploit fire risk

Properties change hands

for tens of thousands less

than recent market value

D E L P H I N E ST R AU S S

Rishi Sunak will be able to point to clear
evidence of a post-election “bounce” in
economic activity when he presents his
first Budget next month, thanks to data
published this week. But a year-on-year
rise in government borrowing under-
lines the challenges facing the chancel-
lor if he wants to open the spending taps.
Both service providers and manufac-
turers reported stronger activity and an
improving outlook for business in Feb-
ruary, according to a survey published
yesterday by IHS Markit, the research
group.
Its flash composite index of activity
across the private sector was unchanged
from the previous month at 53.3, a level
that suggests the economy is likely to
return to growth in the first quarter of
the year, after grinding to a halt ahead of
December’s election.
Businesses responding to the survey
said the drop in political uncertainty
since the election had led to greater will-
ingness to spend among their clients,
helping them raise prices to absorb
higher costs.
Ruth Gregory of Capital Economics
said it was “a clear signal that the econ-
omy has turned a corner”, notwith-
standing signs in the survey that the
coronavirus outbreak was causing dis-
ruption to manufacturers’ supply
chains and weighing on export orders.
The surveys add to the picture
painted this week by official data, which
showed continued growth in employ-
ment, a post-Christmas recovery in
retail sales and a pick-up in inflation
that could reflect strengthening
consumer confidence.
The housing market is also showing
signs of life. In line with recent surveys,
provisional figures published by HM
Revenue & Customs yesterday showed
the number of residential transactions
completed in January had risen 4 per
cent from December, and 5 per cent
from a year earlier.
However, the brightening economic
outlook has not been matched by an
improving picture for public finances.

“With only days to go until the Budget

is finalised, the chancellor will need to

balance the ambition of levelling up

growth across the different parts of the

UK economy and maintaining a sem-

blance of fiscal rectitude,” she added.

City economists are betting that Mr

Sunak will nonetheless find ways to

deliver a fiscal stimulus that will add

momentum to the recent pick-up in

growth, either by raising taxes, or by

changing or bending the fiscal rules.

“There are ways to lift the economy

and remain fiscally prudent,” said Kal-

lum Pickering, economist at Berenberg,

the investment bank, referring to specu-

lation that the chancellor was consider-

ing proposals to curb the system of pen-

sion reliefs for higher earners, or for a

“mansion tax”.

Philip Shaw, economist at Investec,

said: “Our guess is that although there

will not be much space for fiscal gener-

osity, the chancellor will find some.”

C A M I L L A H O D G S O N

Ozone pollution reached potentially

harmful levels in two towns or cities

every day in 2018 on average, accord-

ingtodatafromtheMetOffice.

Analysis by the FT found t here were 965

“moderate pollution days” across 61

urban centres in 2018 — the latest avail-

able data. Almost 85 per cent of these

were caused by the concentration of

ground-level ozone exceeding the limit

recommended by the World Health

Organization.

Aldershot and Cambridge had the

greatest number of these days — 32 each

— followed by Bournemouth, Reading

and Slough, which had 31. The WHO’s

recommended exposure limit is 100

micrograms per cubic metre, on aver-

age, over eight hours

On moderate pollution days, as

defined by the government’s daily air

quality index, the Met Office advises

people with lung and heart problems to

limit their time outdoors.

Ground-level ozone is produced by a

reaction between sunlight, nitrogen

oxide emissions and volatile organic

compounds, such as solvents and chem-

icals found in cleaning products. As a

result, the peak pollution days are in the

summer months.

Simon Birkett, head of Clean Air in

London, said ozone was “the most irri-

tant gas for humans, as it does really

unpleasant things to your lungs”.

The pollutant can cause difficulty

breathing, trigger asthma and cause

inflammation of the eyes, nose and

throat. During the 2003 August “smog”

event, high levels of ozone are estimated

to have caused up to 593 deaths across

the UK, according to a government-

commissioned report.

Ozone also damages crops, and is esti-

mated to reduce annual yields of wheat,

potato and oilseed rape by 5 per cent in

the UK.

The Met Office produces daily air

quality forecasts to warn the public

about short-term pollution incidents.

The forecasts are calculated using a

model that considers weather, emis-

sions and other data, and are checked

hourly against readings from 150 real-

time pollution monitors around the

country.

On days when ozone was not the cause

of the Met’s pollution warning, the

spikes were caused by particulate mat-

ter (PM2.5) — which has been linked

with a host of cardiovascular and respi-

ratory diseases — the FT analysis found.

In the northern hemisphere, the

amount of ground-level ozone has more

than doubled over the past century, as

emissions from transport, industry and

agriculture have increased.

Rising global temperatures as a result

of climate change are making the prob-

lem worse.

Polluted cities such as London do not

necessarily have the highest levels of

ozone: NOx produced by vehicle

exhausts consumes ozone when it is

freshly emitted, but begins to create

ozone as it drifts away. As a result,

ozone levels are often highest in subur-

ban areas. Since ozone can stay in the

atmosphere for several weeks and travel

thousands of miles, it is a difficult pol-

lutant to tackle locally. Last year, the

government said the “most effective

way to tackle ozone is through con-

certed, international action”.

Air pollution

High ozone

levels blight

urban areas

on daily basis

Chancellor.Improved outlook

‘Bounce’ boosts Sunak ahead of Budget

Businesses say end of political

uncertainty has led to a greater

readiness by clients to spend

was still likely to be lower than the

£47.6bn it had predicted in its restated

March forecasts.

But Carl Emmerson, at the Institute

for Fiscal Studies, noted that as recently

as March 2016, the OBR was forecasting

a surplus of more than £10bn for the

current financial year, meaning that

“we have seen a deterioration of around

£55bn in four years”.

The current fiscal rules allow for a big

rise in borrowing to fund new infra-

structure projects. But the latest figures

underline the challenge facing the chan-

cellor if he wants to put more money

into public services and still meet a

manifesto pledge to eliminate the deficit

on day to day spending.

“If the chancellor intends to stick to

the current fiscal targets, he will have

relatively limited room to increase

spending compared to the ambitious

objectives the government has set,” said

Yael Selfin, economist at KPMG.

Official figures published yesterday

showed that the surplus in public bor-

rowing usually seen in January — a key

month for corporate tax receipts and

self-assessment income tax returns —

was £9.8bn, £2.1bn smaller than in the

same month last year and lower than

analysts had expected.

This brought government borrowing

for the first 10 months of the fiscal year

to £44.8bn, £5.8bn more than in the

same period the previous year.

The disappointing outcome for Janu-

ary was partly due to a surge in public

spending, which often fluctuates from

month to month. But while overall tax

receipts grew 3.4 per cent year on year,

there was also a notable drop in receipts

from corporation tax, likely to reflect

the weak business environment in the

closing months of last year.

The Office for Budget Responsibility

said yesterday that government bor-

rowing over the fiscal year as a whole

Stepping out:

Rishi Sunak

leaves Downing

Street earlier

this month. Data

yesterday

showed a year-

on-year rise

in government

borrowing

Neil Hall/EPA-EFE

‘There are

ways to

lift the

economy

and remain

fiscally

prudent’

Government spending

Cumulative public sector

net borrowing (bn)

Sources: ONS; Markit Economics; Refinitiv









Apr Jun Aug Oct Dec Feb

-

-

– full year OBR forecast

Business activity shows

post-election bounce

Purchasing managers’ composite

index (above   expansion)













   

Feel the heat:

the measures

aim to tackle

worsening air

quality caused

by the growing

popularity of

wood-burning

stoves

Ian Allenden/Dreamstime

MAKE A SMART INVESTMENT

Subscribe to the FT today at FT.com/subscription

STOCK MARKETSS&P 500 Mar 302365.932361.13prev %chg0.20WorldMarkets

Nasdaq CompositeFTSEurorst 300FTSE 100Euro Stoxx 50Dow Jones Ind7369.5220703.38 20659.32 0.211500.725902.743481.675897.557373.72 -0.063475.271493.750.180.470.

FTSE All-ShareCAC 40Xetra DaxNikkeiHang Seng19063.22 19217.48 -0.804011.0124301.09 24392.05 -0.3712256.43 12203.00 0.445089.645069.044011.80 -0.020.

FTSE All World $297.99297.730.

CURRENCIES$ per €$ per £Mar 301.0741.249prev1.0751.

SFr per €£ per €¥ per $€ index¥ per £139.035 137.822111.295 111.0351.0690.85989.046 89.3721.0720.866$ indexSFr per ££ per $€ per £¥ per €£ index€ per $119.476 119.363104.636 103.930Mar 3076.705 76.9510.8011.2441.1640.9320.806prev1.2381.1550.

Oil Brent $Gold $Oil WTI $COMMODITIESMar 3052.9850.221248.801251.1052.5449.51prev1.43%chg0.84-0.

INTEREST RATESUK Gov 10 yrUS Gov 10 yr 98.87price100.461.212.38yield0.00chg-0.

Ger Gov 10 yrGer Gov 2 yrUS Gov 30 yrJpn Gov 10 yr 100.14100.45price98.68102.582.990.06-0.750.39prev0.000.01-0.010.00chg

Fed Funds EUS 3m BillsUK 3mEuro Libor 3mPrices are latest for edition0.780.340.66Data provided by Morningstar-0.36-0.360.780.340.660.000.000.000.

L AandaAboastaLJENNIURA N O Oondoni£37,FER TfulHOMNAN —nvestment000fineinthefirstcaseofWhatsAppmePSO N —DUB L I NLO N D O Nbankerssagehascosthisjob

chatapp.AThefinebynicruthorityegulatorsationsoverhighlightscratheckingdownoncomFaceFinanbookthecialCon’spoincreapularductmu-sing

prbannedemstaff’sthatnoblemSevcommunerallaeedtomonewmergeiployeesfromnitoricadiaposenvetion.stmentandarforcosendingchivebankshavempaniesclienttheir

ainformationencryptioninuser.ccecludingssedwDeutscheWhaithoutpsystemovermeBanktsApp,ermthatcissionfromlastyssagingwhichearusesanannotbeservicesbannedthe

WhatsAppfromwork-issuedBlack-

iesbanker,passedconfidentialclientainformationtoa“pBerrysanceChristopherandafterdiscussionswfriend”Niehaususingersonal,aformerJithrWhatsAppacquaint-egulators.effer-,

accordingtoconMrtoTheFCAsaidMrhisNiehausfidentialemployervinformatheFCA.hadturnedoluntationonNiehausTherrily.overegulatorhadthemehisdesharedsaidvicessag-

ingbutnewmelastyearto“Sevsystem“onanumberofotheeralsituationhasdiafromwbankshavebimpress”peobecomeork-annedissueddeple.ccatrickierasthesions”vices,useof

issuedbanksmovetowaclamasdeiPhone-lovice”ppeddownonBlackBolicy.erryvingitsrdsa“staffs.GoldmanSaspurnstaff’sbringyourownphonetheirwchsbillsork-has

areBanktypicallyersattwointrainedinhowtostitutionssaidusenewstaff

meChpribandiaatwoambAndrewBodvatepeophones.plefromers,saidrk,butnartheinstallinga,abarristeratMabanksareuncaseset“apreceppsontheirdentabletotrix

else”.insaincludedthatitIngingformashowsappsasthetiontheFCAssharedbyMridenthesameasevtityandeesdetathesemes-Niehauserythingilsofa

clientandhismefferies.InoastedhowhembJMrortgageiNiehauswasinformonefadealwasationabinstanceightbesuspabletopayoffsucceendedfromJtheoutarivalofbankerssful.ef-

feriesandrefacebookFtionoorcomment.Jefferiesdeclinedtofadisciplindisignedbdnotrearyprocess.spondtoarequesteforecommentthecomwhileple-

AdditiLombardonal reportpage 20ing by ChloeCornish

City wabanker lotchdog seses job over WhndsaclearatsApp boastmessage as

averCongreonattempt to tApril 28 have retaUS gthe US-Messional Reoverackxico border on topubsisted Dfunds to pay for a wnmentlicans seshutdonald Town aftereking torump’sall

stopgap spending platime since 2013, as Dforcdefethathis plnce and border speeafederalannedshutd$33bnns.emocrats rown forincrndingThey fease inthe ficouldefuseearrst

Trump attUS budgettoacceptthe proposaQ&Aackoverandhealth billls.iPAGE 8

Shutdown risk as borderwall bidgoesoverthe top

FRIDAY 3 1MAR C H 2 017

BriefingEuropeidealmUSbargain-haking,asUShasbecomeuntersthecombigpaniestargetfuelrideaEuropeforcrTrump-fuelledoss-bM&Aorder

AequitytlanArepRepiortonhowtic.ort outmarket— PAGE 15; CHlines lrallytothehealthINAhuntonger NHS wCURBSservicecanforHITbargainsDEALS, PAGE 17aiting tsurviveacrossimesthe

moreion-nsomeEmergingsurgicalproceurgentopausterityhaserationsandnations in resaiddureswpatientswforA&Etreaillbecord debtscrapillwaitped.tmentwlon— PAGE 4gersaleshilefor

Devemergingmovernmenttakingadgelopingvantageofacountrieshavedebtinarketsasthetradebooms.surgeinfirstsoldreoptimismtowquarterof— PAGE 15cordlevthisyear,elsofard

iinLonAreplannedoruncord455London tsurveydon.Whasrevtallorkbowerderbuildingsareealedconplans breganonstructhatationeak records

almiTheUSsecrduring2Tillersonostonetowe016.etaryof— PAGE 4fails toraweekstateeasehasfaTurkey tiledtoreensiconcileons

tenieTaxtraditionofyyipEsionsTo shiba irdoganonafternvestorsclericFtalksinAnissuesinethullahdoubt revivalkarawcludingSithPreGulen.— PAGE 9yriaandsidentReplanthecep

InafiledmanandstormyforCcastagerso–adoubtonarevivalhapter11three-vinganentrhourmebankruptcypreting,inveenchedsecrecyplanafterWeotecstorstion.stincultureaccused— PAGE 16ghouse

iMs,inamovetoemntitleseedsofTheHSBC woos tsuchas“banktrahasunvnsgenMx”,inaeileransgenderderbracedivdarangeofcustomdditiontoMr,ers.ersityand— PAGE 20customersgenMrs,der-catertoneutralMissorthe

Datawatch

UK £2.70 ChannelIslands £3.00; Republic of Ireland €3.

©Frankfurt,NoPrinted in Lon: 39,THE 435 FINANCIALBrussels, Mdon,★Liverpool,ilan,TIMES LTDMadrGlasgow,id,New York,Dublin, 2017

Tokyo, Hong Khicago, SanCFrancong,isco, WSingapore, Sashington DC,eoul, DubaiOrlando,

Subel: 0800TwwFw.ft.or the latest news go toscribecom/298 4708subscribeIn pnowrintand online

http://www.ft.com

Recent attnotablymassAnders BrNorway,acre bythe 2011theacks —eivik in

bombiof generbucked the trBrusandatt acks in Parisselsngs—haveNice, andsui cideallylowtheend

Sources: Jane’s Terrorism and Insurgency Centrefat alities fromterrorwestincidents inern Europe

Terror attacks in western EuropeHighlighted attackOthers

NorwayParisBrusselsNice

A Five StarIt aly’s pthe pooropulists are tr— B I GREAD, PAG E 1 1plan?ying to woo

WORLD BUSINESS NEWSPAPER

Trump vspoliTechtical risktit ans need to mini—GILL I A N T E T T, PAG E 1 3the Vamiselley Dear DletterMay’s first stab at the br— ROBE RTon...SHRIMSLE Y, PAG E 1 2eak-up

Lloyd’sofLondonexcitiesinEU base to help deal wselsover“fiveorpecteditsdelossofpacisiontochoseBsix”setupansspith the ortingotherrus-

rightscenturies-ket,saidheexJohnNafterBreoldelson,xit.chairmanofinsurapectedncemar-otherthe

illbereinsuredbacktoheadquayndicatesatswbusinessinsurerstorters,writteninitsfollow.MpicCityofLoturedabove.ostofBrusselsndonthethe

beenseenasLondon’ssgrTheBelgiancapitalhadnotoupsafterpeciathetheUlistinfirstvesKlechoicesuranceathefor

EU,witshMrNboomesurgtransportthoelsonithDforughttobemorethesaidublinlinks,taindustry.theandLuxcitywononlentpoollikelyem-But

and“etoryrLexInsurers set to followpage 14xtremelygoodreputation”.page 18egula-

Lloyd’sofBrutotapnewtalentpoolwithEUbasesselsInsurancemarket

AFP

A MESJdutiAmomputercayesandnotbeBLITZclearimposystema— WabletohHITEHAL L EcquiredtortsintoandleDITO RtheUKthehugecollect

surgledmittedtoMPs.amentaravesHMeinwoRevyinquirythatthenewtheEU,enue&CustomstoldaparkloadexcustomspectedauthoritieshaveonceBritainsystemrlia-

conMinsaidmeededtime“hascoarch2019,wpleted,confidenceitwourgentacandllapsed”.henBrethetiontobereadybychairofuldbeopxitistheprobeduetobeerational

BritisincBhasxitSettingupadigitalcustomsrereaseindehpobeenatplanrtswhenningtheclabecaheartofrationsextheUKuseofWhitehall’sleavespectedatthefivefoldsystemtheEU.

chThesicoecksAbout53permefromtheEU,anddongleresaMayabecausemarketandnnouncedinJtheycentofBcustomsarriveritishimportsunion.throanuarynotrequireughthatButthe

Botcustomdbxitwhit3reotheclaratradingsun00m.tionsayouldincludeion,blocs.earthenumberisexbut,oHMRChdeparturefromnceandlesoutsidepectedthe60m

hoswhethelicallTherevedCkelytotofrustomsDeregulatoryrWhitehallcanimthrowaelationsabclarationsharperspegimeouts—inartheService,areplemotlightonsystem,entaeas

ranginssentialtoBretoatimeProeBritainblemsgricultureandgfromleaveswithxitcustomsCDSandtheEU.couldforceLoandfisheries—byimmigrationotherprojectsndontothe

EUadjustoughttohaveanimourownmuch,aWhitehallharderitsnegocustomsthanweantiaofficialsationposystemispropactonhowweid.ticipated,sition“Ifwithrunningvingthethat

pressdelivoftheCommonstreasuryselectcom-mInaittee,eringCDSwas“forlettertocertainHMRCAndrewoptionsinBsaidtheTyrie,chatimetablellenrussels.”chairmangingbutfor

achieHMRClinkedtodotemstoworkpropcomplexprassigneda“greenvable”.But,itogramme”zensofoadded,erly.InNthercothatntrafficmputereededtobeCDSwas“aovember,light”tosys-

coCDS,time.Butlastmbeenrmeansmmitteesaindicathereare“majorelegatedto“tingitwyingouldbeonth,itwrotetotheprambogrammehader/red,”wrisksordeliveredonissueshichthe

anditwatracktobeinternationalpparHMRCsaidlastillbeentinanumbero£eyardeliveredbyJanabletotradeonight:“[CsupportncetheUKfricuaryeas”.DS]isonleavestio2019,nless

fotheEU...IntomakeceHMRC’sssfulcusandredelivsureletterstoery.”thateachprojectternalsourceitreratingsaredetheselectquirescomforgetssignedsuc-themit-

tee,videnoecausedbychange,siontowhichleavebutsomeMPsbtheEUwillbexplanaMrsMay’scustomsunion.tionpublishedtoday,pro-unexforelieveitwaspecteddetheratingci-

EditoTimetablPhilip StScJPMorgan eye ophemerialtoe&Great RepComment & Nephens&Chrisimport EU lawstionsotebookeal BGilespage 18page 3illpage 13page 12page 2

HMRC warns

customsrisks

being swamped

by Brexitsurge

33 CoFivefoldnfidenceinITplans‘riseindeclarationsexpectedhascollapsed’

STOCK MARKETSS&P 500 Mar 312367.102368.06 -0.04prev %chgWorldMarkets

Nasdaq CompositeFTSEurorst 300FTSE 100Euro Stoxx 50Dow Jones Ind7322.9220689.64 20728.49 -0.191503.035918.693495.595914.347369.52 -0.633481.581500.720.400.150.

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.

FTSE All World $297.38298.11 -0.

$ 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 3150.461244.8553.351248.80prev53.1350.350.220.41%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.

ALEX BAST E FA N WAG ST Y LstanceinBreTheEUyesterdaytookatGEORGE PARKERRKER— B R U Sxitne— L—gotiatBERLINOND O NSEL Soughopions,rejectingening

arEuropeanCeBritain’sxplicitlygivrangementspleaforearlyouncilpreingthataSpainavetopplytotradetasidentDonGibraltar.overanylksandald

Tusk’stheroadtoBre“phasedwhichareanimportantain’sexapprfirstpecdraftofoach”totationsbyxit,soughttodthethedivorceproc-settingoutamileguidelines,ampBstoneonrit-

essdealscSpaindrawalThedethattheterms.overingrighttovcisiontoprioritisesprGibraltarcoaddetoanyogressonwtheclaEU-UKuldmakeusegitradevingith-the

300-MayeadridrterritorialdisputebetweenandLondonanobstacleto

amtrGibraltaryefullyclause,saeatmentbybitiousbeenyingtradeandsingledthethesterdaycouncilatoutterritoryairlineaforunfavohitbackatthebhad“ccessurableshame-ehestofdeals.the

Spain”.MaSeniorEUclause,pthe“MrTusk’stexttraditionalointingdridleftroomfornSpaoutdiplomatsdefendedthatitonlyrnishposition”.notedegothetiatorseflectedthatdraft

wastowthatminrgely“la“withinorkwistertheEUconTheresaMay’sithinstructive”,wthepanegotiatingcomingmorametersofithonesaalliesstancewasnths.insistedwhatweyingitPrime

insistenceonawereexBupside”.EuropeanCoritishpecofficialsating,purtofJconerhapsmoreondmittedtinusticeinanyuingrthatoletheEU’stransi-forththee

tionBrusselssdealcouldbeproeeslittleroomforblematic.compro-

msupervisoryandenforcementinstru-Brestatusrequire“exit,ise.IfBwithinthexistingrritainwantstoproguidelinestheegulasinglemarketstateitwtory,budgetary,longafterouldits

mentsandhascitizentobbeenmadeonBeginonlyonce“MrTuskwantsrights,wstructurestoatalksonhichsufficientprritain’seWhitehallopply”.futurexitogress”billandtradefficials

bNatoelievemossibleifpreaBossuredEuropeansummitinrisJohnson,certaineanssimtheforBrusselsconultanecolleaguesataditionsareeignsecrthatoustalksaremet.MrsMayetary,

afterBrehadnotinRepwhenJonaorts &shethan Powell,xitwanalysislinkedsetendedtoithatradeTimcurityco-oppage 3Harford &“threaten”deal.eratheEUtion

Man inHenry Mthe News: Daancepage 12vid Davispage 11

Br usselswithSpain htakes tough sanded veto over Gtance on Breibraltarxit

wage to £7.50 per hour. Butwhich wwill ptoday’sAbout 2.3m peile preincreill have to pay caressure on Eoplease inthe natwill benenglishionalworkers acouncils,thefit fromriseliving

lotstanew living waged 25 andexpected to cost co—amore. Some 43 permounting to 341,ageover —anduncils’ care searn less tthecent of careincr000 peopleease iserviceshanthe

£360m inAnalsisyithePAGE 4comingfinancial year.

Livingpressure onwage rise to pcareservicesile

UK £3.80; ChannelIslands £3.80; Republic of Ireland €3.80 S ATURDAY1APRIL/S U N DAY 2 APRIL 2 017

©CNoFPrankfurt,THEhicago, Sanrinted in Lon: 39, 436 FINANCIALBrussels, M★Francdon,Liverpool,isco, Wilan,Madrashington DC,TIMES LTDGlasgow,id,New York,Dublin, (^2017) Orlando,
Tokyo, Hong Kong,Singapore, Seoul, Dubai
SubTwwFor the latest news go tow.ft.el: 0800scribecom/298 4708subscribeIn pnowrintand online
http://www.ft.com
Censors and sensitivityWarning: this article may be upsetting — LIFE & ARTS
(^) H OW D RIVER LESS
T E CC H A NHNO LO GYGIN G A N I S
A MERICAN WAY OF LIF E
T H EO F T END H E
R O A D FT WEEKEND MAGAZINE
Escape the taper trapHow high earners can evade a pension headache — FT MONEY
The lure of the exoticRobin Lane Fox on the flair of foreign flora — HOUSE & HOME
How To Spend It
(^) Chic new lodgings
in ScotlandMAGAZINE
Art of persuasoverdisputedpainionting of Jane AusMystery deepensten
Austen’sdescendantsinsisttheRiceportraitdepictsherasagirl—seemagazineBridgeman Art Library
RweDCsUNC A N RreA LPH ATepingditSuissetaxinveOBINSO NKINS— Z Uhas— B R U S SRIC HstigabeentionsintargetedbyELStheUK,
FcitbimageaTheSwoackSwrs-operatinganceandsataxhavitzerland’sissbanksaidyewithatheNattemptstoetherlauthoritiesaen.nds,sterdayitcleanupsettingfterwasits
“oconcerningwpartfficesinLoDeresinGermanywerealsoinvolved,utchacontactedbylouthondon,Paclienttaxmaritiessaidrisandcaltters”.theircoAmsterdamofficialsunter-
wtoovsaiditwasinveeffTheohileAerhaulrtsbyinqustrauiriesthebusinessmolia’srevcountry’sstigathreatentountingaSwenuebankdelsandenissbank.departmentdermineingsectorsure
dcusteqrbillionownoneTheprouiremomersmeetsofentsfobesdollarsinvaders,wriskllowinternasparkinganfines.ingahichreUS-ledtionalsultedininterna-clamp-tax
menttionageEntionscocU’seral’sojudicialal”disputeathatithad-ordinatedbyEurojfficeeliaisonbody.fterxprebeentheSwissssed“aleftoutofattoust,stonish-rney-thethe
sublandcenCretyes,Frajectofinveditsterday,Suisse,wnceandstigahoseidentionsintheUK.tifiedsharesThebtheNfell1.2peritselfasanksaidether-the
itlaunchedagatherinforcomfollowed“aHMpliance”Revcrimmationaboutenue&Customsbutwasstrainalinvetegyostigaffullstilltheprosaiditclienttiontryingtobes.hadtaxinto
taxsuspectedandderingby“areachofcertainoauthothisiritytaxefitsadded:nveglobalvasionandmoneyemployfinastiga“Theintionncialinees”.sendsaternstitutionTheUKationallaun-clear
meingsthoseseekaction,Dutchprssageandgoldsaidthatingtoevadetax.”osetheycutors,whointhereisnoseizedjewingotsaspartofhidingellery,paitiatedplaceint-theirthefor
probe;Switzerlandinvethousataxastigationhadrevuthorities.nd”bankawhileFrenchoannotdedccountsopenedinealed“sevclaredtofficialssaidFrenchtheireral
delibopsaiditwas“ademeraTheSwissattorney-general’sofficeerateexandetionhasdawstoclusionofrittenenishedatbeenorganxplanationfromSwitzerlaisedwthewaynd”.Itiththisthe
Dinevadetax.ItagrranIn2014,CretheUStoan“eutchagingcuthorities.onspiracy”toditeedtofinesof$2.6bn.Suissextensivepleadedhelpandwide-guiltyclients
in PHouDublin,Additional rearislder inCarLondon,oline Biporting byand MnhamLaura Nichaeland VStotoonan inanessahard
Credit Suisse
engu lfed in
f 3 reshUK, France and Nethertax probelands swoop
3 Blow for bid to clean up Swiss image
FEBRUARY 4^2
017
THE RISE OF ECO-GLAM
390_Cover_PRESS.indd 1 19/01/2017 13:
FEBRUARY 22 2020 Section:World Time: 21/2/2020 - 19: 30 User: john.conlon Page Name: UKNEWS1, Part,Page,Edition: LON, 2 , 1