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A new report has shown that the UK has dropped out of the top 10 countries for good governance under Rishi Sunak's leadership. Weak leadership, poor economic management, and Brexit have dragged Britain down in the global index on good government. The Chandler Global Index for Good Government (CGGI) ranked the UK in 11th place, with scores for "leadership and foresight" placing it in 20th place. The UK also ranked 27th in financial stewardship. Despite Brexit, the UK's reputation and global influence were boosted, coming second in the category, only beaten by France. However, Brexit negatively impacted the UK's international trade score, dropping it by 26 places. Labour has used these findings to criticise the Tories and Rishi Sunak's leadership. Downing Street, on the other hand, questioned the findings, describing them as “strange” and “lacking in evidence”.

 

The Independent UK

MSN

Chevron has announced it will quit the North Sea following a review of global operations. The US oil giant insisted the move was not connected with the Chancellor’s rejection of industry calls to reduce the windfall tax on oil and gas profits. Jeremy Hunt was told by industry leaders just a day earlier that without a change to policy there would be a catastrophic decline in investment in UK waters that risks reducing oil and gas output by at least 50% by 2030. The meeting was attended by major operators, including Shell, BP, Harbour Energy and Ithaca Energy, with industry body Offshore Energies UK briefing Chevron later. Jeremy Hunt reportedly claimed Labour’s plans to increase the tax and cut investment allowances were the key deterrent to investors. Chris Wheaton, an analyst at Stifel, criticised the windfall tax, and Labour’s plans to increase it, saying: “Loss of investment means loss of jobs and skills for the energy transition.”

 

Reuters

The Daily Telegraph

Water companies in the UK have been found to discharge sewage into rivers near their own headquarters, according to an analysis of sewage data. Figures show that the number of discharges into waterways increased by 54% in 2023, making it the worst year on record. Among the companies discharging the most sewage near their headquarters are Wessex Water, Northumbrian Water, and Severn Trent. Critics have accused Ofwat and the Environment Agency of not taking effective action against the companies. The chief executive of Ofwat has stated that water companies have plans to invest £100bn in new infrastructure. The shadow Environment Secretary has called for tough new powers to hold water bosses accountable for sewage discharges. The UK government has announced increased inspections on water company assets and is consulting on banning water bosses' bonuses. Thames Water has defended the discharges, stating that the sewage system was historically designed to prevent overflow into homes.

 

I

The Financial Reporting Council (FRC) has launched an investigation into MHA, formally known as MacIntyre Hudson, over an audit of an unnamed public interest entity for the year ended 31 December 2022. MHA is the independent UK arm of the global consulting firm of Baker Tilly International. The regulator said the decision was made at a meeting of the FRC’s conduct committee on 19 March 2024. A spokesperson for the firm said: “MHA is assisting the FRC with the investigation [and remains] committed as always to the highest levels of audit quality.”

 

Bloomberg Tax

Financial Reporting Council

City AM

Nine 'finfluencers' have been charged by the Financial Conduct Authority (FCA) for promoting an unauthorised foreign exchange trading scheme on social media. Emmanuel Nwanze and Holly Thompson used an Instagram account to promote the buying and selling of contracts for difference (CFDs) without authorisation. Nwanze faces charges of running an unauthorised investment scheme and issuing unauthorised financial promotions. The FCA also alleges that Nwanze paid several individuals, including Biggs Chris and Lauren Goodger, to promote the Instagram account. Thompson and the others face charges of issuing unauthorised financial promotions. The defendants are scheduled to appear in court on June 13.

 

City A.M.

The Competition and Markets Authority (CMA) announced that Nationwide Building Society withdrew its payment protection insurance (PPI) products after customers were given incorrect information for over a decade. Between April 2012 and December 2023, 131 customers with mortgage PPI policies were provided with incorrect information in their Annual Review Statements. Nationwide self-reported this issue and has since withdrawn all PPI products. The company has also contacted former policyholders who may have terminated their PPI policy based on the incorrect information.

 

Daily Mail

The Bank of Spain has announced its plans to set a countercyclical capital buffer of 0.5% for Spanish banks, which will be activated from October 1, 2025. The buffer aims to mitigate or prevent cyclical risks caused by excessive credit growth by requiring lenders to build insurance reserves during times of strong growth. Previously, the buffer was only activated when risks were high, but now it will be applied when risks are at an intermediate level. 

 

Reuters

A group fighting for compensation for 150,000 Northern Rock shareholders whose shares were seized in the lender's 2007 collapse and nationalisation is to resuscitate its campaign. The Northern Rock Shareholder Action Group accused the Government of grabbing profits of as much as £9bn after it took control of the mortgage bank in the wake of a depositor run. It has called on the cross-party Commons' Treasury select committee to review the decision by the Treasury to confiscate Northern Rock shares with no compensation, saying that the bank's £100bn mortgage book had turned out to be extremely valuable. "No other failed bank was handled in this manner during the global financial crisis," it said. "The Government has earned a sizeable surplus in the years after nationalisation, even though any and all government assistance was completely reimbursed in those years, including interest paid at penal rates at no expense to the UK public."

 

The Times

Over three quarters of the British public believe businesses should be legally obliged to safeguard people and the planet alongside making profit, according to new research by B Lab UK. The research shows that 76% of the public support calls for a 'Better Business Act', which aims to align the interests of stakeholders like workers with those of shareholders. The proposed change is backed by voters across the political spectrum, with 85% of Labour supporters and 70% of Conservative voters in favour. Mary Portas, chair of the Better Business Act, stated that the British public wants businesses to have a legal responsibility to look after people and the planet. The proposed change is similar to the one made by the Business Roundtable in 2019, where CEOs committed to leading their companies for the benefit of all stakeholders.

 

City AM

Chinese online marketplace Temu is facing a legal challenge after 17 companies accused it of breaking new EU laws with its "manipulative practices" and lack of transparency. The online retailer, launched in September 2022, is accused of failing to protect consumers and using manipulative practices that are illegal under recent legislation. The legal complaint alleges that Temu is breaking new rules that require all products sold to European consumers to comply with European law, regardless of the company's location. Consumer group Which? warns that UK companies do not have the ability to challenge Temu. Rocio Concha, Which's director of policy and advocacy, stated: "It is positive to see other consumer groups across Europe joining together to hold Temu to account for failing to prevent unsafe products ending up in people's homes."

 

Sky News

Retail Gazette

The National Audit Office (NAO) has published a report warning that the Department for Environment, Food & Rural Affairs (Defra) has launched its "biodiversity net gain" (BNG) scheme, requiring housebuilders to finance the replacement of any habitat lost to development with a 10% increase, without sufficient support. Developers can either deliver new habitat on-site, off-site, or by purchasing credits through a new private market. While Defra has claimed the policy can deliver annual social benefits of £1.4bn, the NAO has said it is relying on a private market for biodiversity credits that currently offers just 35 hectares of habitat gain on two sites, while councils have not received funding to cover the cost of compliance and enforcement. LGA environment spokesperson Cllr Darren Rodwell said it is "important that councils are properly funded and that the Government quickly put in place measures to ensure the land is available for BNG off-site, for instance by allowing BNG on council-owned land in the short term". 

 

Daily Mail

The Department for Business and Trade (DBT) has announced a delay to its work on sustainability disclosure standards, based on those of the International Sustainability Standards Board (ISSB). The department said it aimed to make endorsement decisions on the first two standards by Q1 next year, having previously set the deadline for July this year. Meanwhile, the DBT has also appointed Sally Duckworth as chair of its Technical Advisory Committee (TAC). Duckworth has called the ISSB’s standards “pivotal for advancing sustainability and transparency in financial practices”. The Financial Reporting Council (FRC) will provide the secretariat for the TAC. The regulator welcomed the appointment of Ms Duckworth, calling her background impressive and her expertise invaluable.

 

edie

Environmental Data Interactive Exchange

Responsible Investor

Nuclear waste are set to be buried in the English countryside after ministers agreed to dig a 650ft pit starting this decade. The facility will hold some of the 5m tonnes of waste generated by nuclear power stations over the past seven decades, easing pressure on the 17 nuclear waste disposal plants currently in operation.

 

The Daily Telegraph

More than 700 artificial intelligence companies, including Google, Microsoft and Meta, have received a warning from Sony Music that it could pursue legal action if they fail to disclose how they have used lyrics and songs copyrighted by the company to train their technology. The world’s second biggest record company is understood to be in discussions with 350 technology companies already about partnerships and licences and Sony said it was open to discussions with others. Sony said it demanded the disclosure under the terms of the forthcoming European Union AI Act, which requires companies making AI models to reveal the content used for training “and to put in place a policy to respect EU copyright law”.

 

BBC News

The Times

The biggest shareholder in HSBC, Ping An, is considering reducing its stake in the banking giant. The Chinese insurance group currently holds an 8% stake in HSBC, worth around £10bn. Ping An has already sold £40m worth of shares this month and is exploring options to further reduce its stake. One possibility is selling to a sovereign wealth fund or a wealthy investor in the Middle East.

 

Daily Mail

The European insurer Wefox, valued at $4.5bn less than two years ago, has warned shareholders that its holding company could become insolvent by the summer. The company is facing regulatory and financial challenges and is urgently seeking to sell its loss-making operations to avoid collapse. Wefox's new executive chairman and CEO, Mark Hartigan, outlined the bleak scenario in a memo to shareholders, stating that the company could become insolvent in August or even earlier.

 

Sky News