BUSINESS WITH PERSONALITY HOW ENTERPRISING! THE FEAST YOUR PIES ON THIS TAX INCENTIVES THAT ARE IT’S A PASTRY PARTY AS WE GIVING A BOOST TO THE CHOOSE LONDON’S BEST P26 STARTUP ECONOMY P19–23 WEDNESDAY 26 FEBRUARY 2020 ISSUE 3,563 CITYAM.COM FREE FROM ONE BOB TO ANOTHER WATCHDOG Chapek to replace Iger at Disney IN THE DATA JAMESD WARRINGTONOGHOUSEInformation Act request. Among the again, and said it was apologising to AND JAMES BOOTH complaints made about the watchdog those affected. were its lack of communication and The watchdog was also hit yesterday @j_a_warrington @jamesdbooth1 level of fees. by the release of a report into a string THE FINANCIAL Conduct Authority The breach — which occurred while of recent City scandals which former admitted yesterday to revealing confi- incoming Bank of England governor business secretary Sir Vince Cable dential consumer information on its Andrew Bailey was head of the organ- described as a “damning indictment website in a data breach last year. isation — will come as an embar- of failure by the FCA to exercise The City watchdog pub- rassment to the watchdog, proper regulatory oversight over lished details of roughly which handed down a conduct within the banking and 1,600 people who filed £16.4m fine to Tesco Bank wider financial services system”. complaints against the in 2018 over its handling The report, published by anti-Brexit FCA between January campaigner and asset manager Gina POPPY WOOD an end to a closely-watched 2018 and July 2019. Former FCA boss and Miller and her husband and SCM Di- corporate succession battle. The body confirmed governor-elect Andrew rect co-founder Alan, accused the FCA @poppyeh During his 15-year tenure at the yesterday that it had Bailey was also under fire of failing to act effectively in response DISNEY’s chief executive has stepped helm, Iger secured a slew of referred itself to the to the treatment of Royal Bank of Scot- down and been replaced by the head acquisitions for the company, Information Commis- of a cyber attack. land customers, of ignoring whistle- of its parks division, as the media including the $7.4bn (£5.7bn) sioner’s Office, which “We have undertaken a blower warnings prior to the £236m giant pivots towards streaming. takeover of Pixar from Apple in 2006, oversees data usage in the full review to identify the collapse of mini-bond firm London Disney made the unexpected along with global franchises Marvel, UK and has the power to issue extent of any information that Capital & Finance and of failing to pre- announcement late last night that Lucasfilm and 21st Century Fox. hefty fines. may have been accessible,” the regu- vent the Woodford fund scandal. They chief executive officer (CEO) Bob Iger Iger tipped his hat to the successful In some instances the leaked infor- lator said in a statement. also called for the Treasury to review has resigned after 15 years at the launch of the firm’s Disney Plus mation included names, addresses “Our primary concern is to ensure Bailey’s Bank appointment. helm. Bob Chapek (pictured), who streaming service in November — and telephone numbers. The FCA the protection and safeguarding of in- An FCA spokesperson said it “utterly oversaw the firm’s Shanghai Disney which has so far wooed more than said no financial or passport details dividuals who may be identifiable rejects these claims which contain Resort launch in 2016, has been 28m subscribers — and Fox’s were exposed. from the data.” numerous inaccuracies and are made named as the firm’s seventh CEO in integration as creating the “optimal The error came when the FCA pub- The FCA added it has taken action to with little understanding of the role its nearly 100-year history, bringing time” to leave the role. lished its response to a Freedom of ensure the error does not happen of the FCA”. FTSE 100▼7,017.88 -138.95 FTSE 250▼20,715.97 -401.90 DOW▼27,081.36 -879.44 NASDAQ▼8,965.61 -255.67 £/$▲1.300 +0.008 £/€▲1.196 +0.005 €/$▲1.087 +0.001 02 NEWS WEDNESDAY 26 FEBRUARY 2020 CITYAM.COM FLIPPING ‘ECK Historic home of City intrigue plays host to its most dramatic battle yet: a T-Rex and a Spitfire in a pancake race THE CITY VIEW Another UK-EU battle seems almost certain EMEMBER the summer of 2018? The sun shining almost constantly, England’s footballers marching to the latter Rstages of a major international tournament, and interminable battles between Westminster and Brussels over the future relationship between the UK and the European Union. Alas, the first two can’t be guaranteed — though we deserve some vitamin D after this winter and the midfield looks solid — but the third seems to be a nailed-on certainty. Yesterday we saw the opening salvo from the European side in the form of a 42-page negotiating mandate that makes Finnegan’s Wake look an easy read. The section on financial services is particularly vague, though notable for its absence is the EU’s previous insistence on a date for an “assessment of equivalence” COMPETITORS dressed in fancy dress flipped pancakes yesterday as they took part in the annual Inter-Livery Race on Shrove between the UK and EU’s regulatory systems. The respected Tuesday at the Guildhall. Participants from Mansion House, Guildhall, Old Bailey and the City Livery Company of Poulters were former Brexit adviser Raoul competing for a commemorative frying pan as they raised money for the Lord Mayor’s charity appeal. thelordmayorsappeal.org Ruparel yesterday said this was an example of the EU choosing dates “which most suit its negotiating position.” It’s hard Britain must be to say whether this represents a hardening of the line on the able to nurture Wonks say deficit could behalf of the EU, or not; but it and grow new is clear that they’re thinking financial about it. We are assured that so technology is our government. In this hit five-year high in 2021 newspaper just over a fortnight ago the then-chancellor Sajid Javid laid out his plans for Britain to go its own way on financial regulations, to ensure that there HARRY ROBERTSON expensive spending pledges made last reportedly keen to loosen the fiscal was equivalence between our two systems but not to tie year in areas such as health, educa- rules so as to increase spending in the ourselves to all future continental decisions. That makes sense @harrygrobertson tion and policing, and appears even UK’s regions and cement the Conser- in a world in which our economies are intertwined, with much THE UK’s budget deficit could balloon before what is expected to be an ex- vatives’ hold on the northern seats it to £63bn next year, a five-year high pansionary Budget. won at the election. of the meshing happening in the Square Mile and Canary well above both the most recent fore- It comes four years after then-chan- Yet the IFS said: “There have now Wharf, but also in an ecosystem which is swiftly giving birth to cast and this year’s borrowing figure, cellor George Osborne said the Tories been 16 fiscal targets announced over new, innovative financial products that Britain must be able to an influential think tank has said. would by this year turn the deficit — the last decade. If the target to bal- nurture and grow. The UK will publish its mandate tomorrow, The Institute for Fiscal Studies (IFS) the shortfall between spending and ance the current budget were aban- also warned that the government tax income — into a surplus. doned in this Budget it would be the which a government spokesman said will include precise terms would “undermine any credibility” in Britain’s premier tax-and-spend shortest lived of them all.” of what Downing Street will be seeking. They also confirmed its spending rules if it ditches a pledge think tank also cautioned the govern- “Abandoning it now would surely that the government does, indeed, view financial services as an to balance the day-to-day budget, ment over its fiscal rules. In the run- undermine any credibility attached to “important part of the UK economy”. Contributing £132bn to meaning Downing Street faces tough up to the December General Election, fiscal targets set by this government.” fiscal choices. former chancellor Sajid Javid prom- The IFS said new chancellor Rishi the nation’s wealth, this seems accurate. If negotiations break In a report ahead of the 11 March ised to balance the current govern- Sunak faces a difficult choice to ei- down because of rows over chlorinated chicken or fishing rights, Budget, the IFS said next year’s deficit ment budget — which does not ther “raise taxes, entrench austerity (valid issues though they are) many in the City will be forgiven could be £23bn higher than the most include investment — by 2023. or break a fiscal rule”. recent estimate and £19bn more than Yet Javid stepped down in a shock The IFS also told Sunak that — for thinking that those a few stops west on the District Line have its estimate of borrowing in 2019/20. move earlier this month, partly as a should he decide to keep Javid’s fiscal forgotten who is paying the bills — even if England is winning. A £63bn deficit would be the highest result of disagreements with Number rules — the UK could fail to balance since 2015/16. 10 over spending. the current budget in three years’ The predicted increase in borrowing Prime Minister Boris Johnson and time anyway, given the higher levels Follow us on Twitter @cityam is due in large part to a number of his adviser Dominic Cummings are of spending announced last year.