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According to a report by the Treasury Committee, nine major banks and building societies in the UK experienced 803 hours of technical issues over the past two years, equating to 33 days of service disruption. MPs investigating the impact of banking outages collected data from Barclays, HSBC, Lloyds, Nationwide, Santander, NatWest, Danske Bank, Bank of Ireland and Allied Irish Bank. The Committee looked at IT failures between January 2023 and February this year and found there had been 158 incidents. The report shows that Barclays is set to pay up to £12.5m in compensation to customers affected by the outages. Dame Meg Hillier MP, Chair of the Treasury Select Committee, said: "For families and individuals living pay check to pay check, losing access to banking services on payday can be a terrifying experience."

 

Sky News

BBC News

The Guardian

The Independent

The Times

Over 100 Labour MPs and peers have urged British financial institutions to classify UK defence investments as ethical to enhance support for Ukraine. In an open letter, the group called for a "rethink" on environmental, social, and governance investment criteria that often deem defence firms as "unethical." David Raw, managing director for commercial finance at UK Finance, said the sector is "fully committed" to supporting defence companies but noted that "providing finance in this area is complex" and banks must "ensure they comply with a range of domestic and international laws and regulations."

 

Financial Times

Daily Mail

The Independent

Analysis by the Investment Association (IA) shows that investors pulled £3bn out of funds in January, with the outflows driven by economic instability as inflation increased and GDP growth stagnated. This marked a reversal from December, when £2.3bn flowed into funds. The UK All Companies sector, covering funds with over 80% invested in quoted UK shares, saw an outflow of £1.2bn in January, while the UK Smaller Companies sector logged £206m in outflows. Bonds and mixed assets saw inflows of £187m and £39m, respectively. Reflecting on the IA data, Kate Marshall, lead investment analyst at Hargreaves Lansdown, said a “backdrop of weaker economic growth, rising inflation, uncertainty around fiscal policy, and the potential for tax rises in the spring budget” had contributed towards a “weakened” UK sentiment.

 

City AM

The Government may block HMRC plans to end a VAT exemption on investment fund services following an industry backlash, amid concerns it could harm the £1.43trn sector and deter investment.

 

Financial Times

The Institute for Fiscal Studies (IFS) has warned that Chancellor Rachel Reeves may be forced into fresh tax hikes or a new wave of austerity due to the state of Britain’s public finances. Warning that the Chancellor’s £9.9bn financial buffer from October’s Budget has been wiped out, IFS research economist Dr Isabel Stockton said Reeves has been left with “a tiny, tiny margin relative to the uncertainties involved.” The IFS also said that Reeves is juggling “competing commitments,” having promised not to increase taxes while also ruling out a return to austerity. IFS director Paul Johnson says the Chancellor is likely to extend a freeze on tax bands, with this set to pull more people into paying higher rates.

 

The Independent

Bank of England rate-setter Catherine Mann says officials should adopt a more activist approach to setting interest rates due to the “substantial volatility coming from financial markets.” Mann, an external member of the Monetary Policy Committee, suggested that the committee should be open to more radical shifts in monetary policy as they look to keep inflation close to the Bank’s 2% target.

 

City AM

UK construction output hit a five-year low in February, with the S&P Global UK Construction PMI falling to 44.6 from 48.1 in January. Prior to January’s report the industry had recorded 10 consecutive months of expansion. The report also shows that construction companies cut staff for a second consecutive month. Looking ahead, 39% of firms said they anticipate an upturn in the year ahead. Tim Moore, S&P’s economics director, said: “Sharply declining order books rippled through the UK construction sector in February, which led to accelerated reductions in output volumes, employment and input buying.” He added, however, that construction companies “remain optimistic overall about their growth prospects for the next 12 months,” although positive sentiment is down “amid increasing concerns about the broader UK economic outlook.”

 

City AM

The Guardian

The Payment System Regulator (PSR) has warned that the card market “isn’t working well.” The comments come on the back of a review into the transparency of fees charged by Mastercard and Visa which found that the firms have raised core scheme processing fees by 25% since 2017. The review, which said higher fees had led to added pressure on businesses, found no evidence that the increased fees were due to competition, costs, or innovation. The payments regulator also said that profit margins at the payment networks were “higher than would be expected in a well-functioning market.” David Geale, managing director at the PSR, said: “The confusing information Mastercard and Visa make available to acquirers and merchants contributes to poorer market outcomes through raising their costs of dealing with this overly complex information.”

 

City AM

The Financial Conduct Authority (FCA) has identified significant gaps in how firms support vulnerable customers. It was found that 44% of vulnerable customers reported negative experiences, compared to 33% of non-vulnerable customers. Three-quarters (74%) of vulnerable customers who told their firm about their circumstances said that staff asked the right questions to understand their situation, 57% felt their firm cared, and 58% said their firm took action to provide support they needed. FCA guidance introduced in 2021 and reinforced by the Consumer Duty in 2023 aims to ensure firms provide adequate support. However, many customers still face barriers to disclosure due to embarrassment or fear of being treated differently. The FCA's review highlights both good practices and areas needing improvement, urging firms to enhance their training and communication strategies to better assist vulnerable clients.

 

The Standard

Walgreens Boots Alliance, the parent company of Boots, has agreed to be taken over by US private equity firm Sycamore Partners in a deal valued at approximately $10bn. Sycamore will pay $11.45 per share in cash, representing an 8% premium over WBA's closing price on Thursday. Additionally, shareholders may receive up to an extra $3 per share from future monetisation of WBA's debt and equity interests in VillageMD. The deal is expected to close by the end of the year, with WBA maintaining its headquarters in the Chicago area. Concerns have arisen regarding the future of Boots, the British chain founded in 1849, as it is one of WBA's best-performing assets. Sycamore's managing director, Stefan Kaluzny, said: "Sycamore has deep respect for WBA’s talented and dedicated team members, and we are committed to stewarding the company’s iconic brands."

 

The Times

Metro

Pepco Group is considering the sale of discount chain Poundland due to the challenging UK retail landscape. Sales at Poundland were down this January and February, while the imminent rise in employer National Insurance contributions will "add further pressure" to Poundland's costs, Pepco said. The Polish company operates 825 Poundland shops, which constitute about 30% of its total revenue. Stephan Borchert, chief executive of Pepco Group, told Reuters there are "definitely interested parties for this business" and said he was confident Poundland's future would be decided by September. The move comes as Pepco shifts away from fast-moving consumer goods to focus on its core clothing business. The company is also considering the separation of its Dealz Poland brand to focus on Pepco itself as the single future format and engine driver of group earnings.

 

Sky News

BBC News

Reuters

Daily Telegraph

The Times

DHL has announced plans to lay off approximately 8,000 jobs this year as part of its "Fit for Growth" programme, aiming to save over €1bn by 2027. The decision follows a 7.2% decline in annual operating profit. The job cuts affect the Post & Parcel Germany division, which employs around 190,000 people. Tobias Meyer, chief executive of the DHL Group, said: "The job cuts will happen via natural fluctuation," as he highlighted what he said would be a socially responsible approach to the layoffs. He added: "We expect the global political and economic situation to remain volatile in 2025." Despite the challenges, DHL reported earnings before interest and tax of €5.89bn for 2024, surpassing analysts' expectations. The company anticipates an operating profit of over €6bn for 2025, although this is below market forecasts.

 

U.S. News

Schroders is set to cut £150m from its cost base as part of a turnaround strategy led by new CEO Richard Oldfield. The London-based asset manager has already seen 200 employees leave in the past two months and anticipates further reductions by year-end. The firm has earmarked £200m for a three-year transformation plan, which includes severance costs and investment in labour-saving technology. Additionally, Schroders plans to expand its private markets arm, targeting £20bn in new business over three years.

 

The Times

Italian spirits group Campari is halting mergers and acquisitions to concentrate on its most promising brands, a significant change from the previous strategy, which aimed for 50% growth through acquisitions. Chief executive Simon Hunt explained that the company needs to reduce its net debt, which currently stands at approximately 3.2 times the group's core profit. The company is now evaluating potential divestments of brands that are limited to single markets, he added.

 

Reuters

Lloyds Banking Group is hiring hundreds of IT engineers in India, to be based in a tech centre in Hyderabad, while planning to cut hundreds of similar jobs in the UK.

 

Financial Times

In 2024, the UK saw a record 19,125 potential victims of modern slavery referred to the Home Office, marking a 13% increase from the previous year. This figure is the highest since the National Referral Mechanism began in 2009. Notably, 44% of referrals indicated overseas exploitation, with Libya, Albania, and Vietnam being the most common countries of origin. The majority of victims were male (74%), and around 31% were children. The UK government has committed to eradicating the backlog of modern slavery cases by 2026, with 200 additional staff hired to expedite processing.

 

Reuters

The Standard

Research shows a growing willingness among staff to call out what they regard as unfair treatment, with employees frustrated with complaints processes joining forces and taking grievances to social media.

 

Financial Times