The Times - UK (2022-04-04)

the times | Monday April 4 2022 V2 31

Business

Patrick Hosking Financial Editor

City firms are sponsoring overseas
recruits to come to work for them in the
UK at the fastest rate since before
Britain left the European Union,
according to Home Office figures.
About 200 foreign-based workers a
week are being hired by British banks,
fund managers, insurers and other City
firms as the search for talent intensifies
and as visa rules are relaxed.
In the past five quarters, the number
of visa sponsorships by UK-based finan-
cial services firms has been 722, then
899, then 1,510, then 2,360 and finally
2,192 in the fourth quarter of 2021.
Louisa Cole, principal associate at
Eversheds Sutherland and an expert in
immigration law, said: “I think the
numbers will continue to rise. We’re
only seeing the start of it. There’s a war
for talent.”
The numbers appear to contrast with
the worst fears expressed at the time of
the Brexit referendum, when City firms
warned of an exodus of talent. Instead,
with lockdown easing and many firms
expanding, the battle to find talent
seems to be intensifying. Firms com-
plain of skills shortages in areas such as
IT and complianceand are keen to
recruit potential rainmakers and in-
vestment stars.
The numbers do not break down the
employees by country of origin, but a
large portion are thought to be from EU
countries.
In recent years the Home Office has
relaxed its rules, removing the overall
cap on general visas as well as introduc-

commoditiescommodities currenciescurrencies

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world markets (Friday’s close, change on the week)

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Brent crude (6pm)

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Passion Capital has expressed its
“shame” and “deep regret” after Stefan
Glaenzer, its co-founder, was charged
with sexual assault.
The venture capital firm, which has
secured millions of pounds from the
taxpayer-owned British Business Bank,
said that it was “in the process of re-
moving” Glaenzer from “his involve-
ment and membership in all Passion

Passion Capital severs ties with its co-founder after assault charge

Emily Gosden entities”. The Metropolitan Police said
that Glaenzer had been arrested in Sep-
tember last year after an allegation in
June, and was charged on March 7 with
“one count of sexual assault by touch-
ing”. He is to appear at Westminster
magistrates’ court on Thursday.
Glaenzer, 60, made his name and
millions as an investor and chairman of
Last.fm before co-founding Passion
Capital in 2011 with Eileen Burbidge, a
former adviser to Boris Johnson, and

Robert Dighero. The firm funded 86

start-ups, including Monzo, the digital

bank in which it is the biggest investor.

Passion Capital secured £17.5 million

from the British Business Bank in 2015

for its second fund.

It said that Glaenzer had “not had an

active role with the firm since his depar-

ture in 2018”, when he stepped down as

a partner. However, he had remained a

director in a series of Passion Capital

entities. Filings show that he left Pas-

sion Capital Investments LLP on

March 25. He remains a director of

three other related entities and a desig-

nated member of four related LLPs.

Passion Capital said it had “moved to

sever any and all trailing contractual

commitments that remained between

him and our historic funds and activi-

ties”. As well as working to remove him

from Passion entities, it was “actively

seeking to exercise any rights that

would stop him as much as possible

from benefiting financially from any

successes”.

It said: “We offer our most heartfelt

apologies to all of our portfolio com-

pany founders and teams, co-investors

and fund investors impacted — and

most importantly any victims.”

British Business Bank said it was “a

limited partner in funds operated by

Passion Capital” and had “supported

Passion Capital in its actions to remove

Stefan Glaenzer from these funds”.

Finance firms rush to sponsor overseas recruits

City talent

hunt drives

rise in visas

ing new categories of visa that widen

the types of acceptable skills and re-

duce the minimum salary threshold.

Firms can sponsor potential employ-

ees from subsidiary or sister companies

overseas or completely new recruits.

Most of those hired in financial services

range from mid-tier executives to the

very top including chief executives,

according to Cole. “The banks want the

best of the best and are prepared to pay

for it,” she said.

Before the pandemic, but after the

Brexit referendum, visas awarded to fi-

nancial services candidates were about

1,500 a quarter. Britain officially left the

EU bloc on December 31, 2020.

The shift of people, jobs and assets in

financial services from Britain to the

EU triggered by Brexit has stabilised,

according to a study last week. While

the exodus of some jobs from the City

would continue for some time, the

announcements of fresh planned

departures had flattened after five

years of climbing, EY said.

The consulting group’s Brexit

Tracker survey recorded a steady rise in

firms announcing and acting on opera-

tional moves until the end of the transi-

tion period in December 2020 and a

slower rise last year. It was unchanged

in the past quarter. In addition, the total

of Brexit-related staff relocations to the

EU has been revised down from 7,400

in December 2021 to just over 7,000,

significantly down from the peak of

12,500 announced in 2016, EY said.

“It is clear that the UK’s financial ser-

vices industry remains attractive to

overseas workers,” Cole said.

New leaf Smythson, the upmarket stationer, lost £8.4 million in the pandemic. Its owner Jacques Bahbout, 92, stepped down

as chairman in February. Jacky Bahbout has become chief brand officer in an “evolution of family involvement”. Page 37

Sudden fall in consumer confidence

Jessica Newman

The mood among consumers about

their finances has fallen to its lowest

level since the first Covid-19 lockdown,

according to a new survey.

Concerns about rising prices and the

cost of living have pulled consumer

sentiment down to -20 on an index

tracked by PwC, the accountancy firm.

This is a fall from +8 during the same

period last year and is only just higher

than the -26 reported at the start of the

pandemic.

PwC said that there had been a “com-

plete reversal” in consumer priorities

compared with a year ago, when house-

holds were preparing to spend once

lockdown restrictions were eased. The

firm surveyed just over 2,000 people

between March 19 and 21. It said that

sentiment had declined across all age

groups, with people preparing to spend

less on eating out, buying clothes and

going on holiday but bracing to spend

more on groceries because the price of

food was going up.

Lisa Hooker, consumer markets

leader at PwC, said: “The shift in senti-

ment is both significant and sudden.

Whilst there is still some post-Covid

recovery, spending expectations on

eating out and going out have plum-

meted as consumers look to tighten

their belts as they face up to cost-of-

living pressures.”

Separate research has warned that

discretionary spending will fall by up to

£850, or 19.5 per cent, for the least

affluent households in 2022 and by an

average of £430, or 6.5 per cent. This

equates to a £12 billion hit to non-essen-

tial spending in 2022, according to the

report by Retail Economics and Hyper-

Jar, the digital wallet and savings app.

Richard Lim, chief executive of Retail

Economics, said: “We’re likely to see

recessionary behaviours kick-in for

many households, who will cut back on

the nice-to-haves and will prioritise low

costs to make their budgets stretch that

little bit further.

“A more cost-conscious consumer

will emerge in the coming months,

looking to form new relationships with

brands that can align to these new

priorities.”