TSB to close 73 Scottish branches and cut 300 jobs - BBC News

A "significant change in customer behaviour" and increased online banking drove the decision, the bank said.

The move has been criticised by campaign groups which said older and vulnerable customers would be hit hardest.

The bank said the closures were not an "easy decision" and had been accelerated by the Covid pandemic.

The closures, set to begin in early 2021, represent more than half of the TSB branches currently operating north of the border.

But the Edinburgh-based company said 94% of customers in Scotland would still be within 20 minutes' travel time of one that will remain open.

TSB said it would "continue to invest in its 62 remaining Scottish branches over the next two years to radically improve the customer experience".

The bank said 50 mobile advisers would be introduced in some rural communities "to help existing customers and organise further support".

Robin Bulloch, TSB customer banking director, said: "These decisions are the most difficult we take, but we must always be guided by our customers - and we are clearly witnessing a substantial shift towards digital banking.

"We operate a more extensive branch network than most other banks in Scotland, including some much larger than TSB, and we need to reduce its size to reflect the changing needs of our customers."

Age Scotland said it was "appalled" by the latest closures.

Chief executive Brian Sloan said the "relentless push" towards online banking "doesn't suit everyone".

He said: "Those who rely on branches most tend to be older, disadvantaged or on low incomes, and may not find it easy to travel to the next town to do their banking.

"Almost half a million people over 60 don't use the internet, with the highest numbers in the most deprived areas. By turning its back on them, TSB clearly seems to be putting its profits before its customers."

Across the UK, the Spanish-owned TSB will cut about 900 jobs and close 164 branches.

It will leave TSB with 290 branches - a cut of more than half over the past seven years.

The full list of Scottish branches set to close is: Aberdeen Culter, Aberdeen Dyce, Aberdeen Kincorth, Aberdeen Mannofield, Aberdeen St Machar, Aberdeen Torry, Aboyne, Alexandra, Alford, Anstruther, Banchory, Bathgate, Bearsden, Berwick-upon-Tweed, Blairgowrie, Bo'ness, Broxburn, Buckhaven, Bucksburn, Burntisland, Campbeltown, Carnoustie, Castle Douglas, Coatbridge, Coupar Angus, Cowdenbeath, Crieff, Cumnock, Cupar, Dalkeith, Dingwall, Dundee Craigiebank, Dundee Lochee, Dunoon, Edinburgh Costorphine, Edinburgh Gorgie, Edinburgh Pilton, Girvan, Glasgow Anniesland, Glasgow Dennistoun, Glasgow Drumchapel, Glasgow Easterhouse, Glasgow Partick, Glasgow Springburn, Grangemouth, Grantown-on-Spey, Hawick, Helensburgh, Huntly, Insch, Johnstone, Kelso, Kilbirnie, Kilsyth, Kirkcaldy, Templehall, Largs, Larkhall, Lochgilphead, Montrose, Nairn, North Berwick, Peebles, Penicuik, Pitlochry, Port Glasgow, Prestwick, Renfrew, Rosyth, Rothesay, Saltcoats, Thornliebank, Turriff, Wick.

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2020-09-30 15:36:00Z
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Coronavirus: Lockdown has helped UK households save cash at record rate - but here's why it won't last - Sky News

A very interesting statistic lurks within the National Accounts, published on Wednesday, which revealed that the UK economy contracted by 19.8% during the second quarter of the year.

The Office for National Statistics (ONS) disclosed that the UK household savings ratio during April to June - the height of the COVID-19 lockdown - surged to 29.1%.

In other words, for every £100 received by a household - which includes salaries, benefits and any other income, such as dividends or interest - some £29.10 of that was saved.

Image: The household savings ratio from 2008 to June 2020. Source: ONS

The figure is absolutely extraordinary because, by and large, Britons are lousy savers compared to most of the developed world.

Even households in the US, a country widely assumed to be hooked on consumer spending and cheap credit, have typically saved more than British households in recent years. Only Australian households, among developed economies, are as spendthrift as those in Britain.

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It is a trend that has accelerated during recent years. During the 1980s, UK households saved at least 10% of their income in all but one year of the decade - behaviour that persisted for most of the 1990s.

The household savings ratio began to fall in the late 1990s, when credit became more easily available, only rarely rising above 10% since then.

More from Covid-19

Between 1998 and 2007, the average was 8%, although this rose during the period around the financial crisis.

Since then, the ratio has continued to be comparatively low.

During the second quarter of 2018, for example, the ratio stood at just 5.9% and, during the second quarter of 2019, it was 6.8%. Slightly further back, in the first quarter of 2017, it fell to just 4.7%, a level not seen since the 1950s, a decade in which consumer spending took off as incomes rose and many previously rationed items became available again.

So for the figure to surge to a point where UK households are saving more than a quarter of their income is quite remarkable.

On the face of it, the explanation is obvious. The second quarter of this year saw most UK households in lockdown, with most shops, bars, hotels and restaurants closed. There were just not enough opportunities to spend money.

The ONS calculates that, during the quarter, households cut their spending by a record £80.5bn.

It added: "This is over nine times greater than the previous largest quarterly fall in household spending of this type. The reduction in spending is driven by large falls in expenditure on restaurants and hotels, transport - particularly air transport and motor vehicles - and recreation and cultural services."

At the same time, while household spending fell sharply, household incomes did not fall at the same rate thanks to government support from programmes such as the Coronavirus Job Retention Scheme - or furlough scheme - and the Self-Employment Income Support Scheme.

But that is only part of the picture.

Another factor, well established over previous economic cycles, is that households save more during times of uncertainty and especially during recessions.

For example, the last big notable increase in the savings ratio was during the global financial crisis and the immediate aftermath, when it rose from 6.5% during the third quarter of 2008 to 12.2% during the first quarter of 2010. Similarly, the savings ratio rose during the recessions of the early 1990s, the early 1980s and the mid-1970s.

Much of this is psychological. If people think they are at risk of losing their job, or if they are concerned that the value of their home - the biggest single financial asset for most households - is going to fall, they will save more.

Similarly, as unemployment fell in 2017 to its lowest level for 45 years, so did the household savings ratio.

All this means that, in coming months, the household savings ratio will be an indicator watched even more closely than usual by economists as they try to establish what is likely to happen next in an economy traditionally heavily geared to consumer spending.

Allan Monks, economist at JP Morgan, told clients today: "Key to the outlook is the extent to which the saving rate will remain higher than usual due to voluntary saving, which reflects household caution over spending.

"It is too early to judge where things are settling, but the still very low level of consumer confidence suggests the saving rate is unlikely to return to its pre-pandemic level of just over 6%.

"While greater caution reflects fears over the virus, this is being compounded by concerns over a large rise in unemployment."

There are already signs that Britons will struggle to stick to the savings habit.

COVID-19: Which sectors may not survive?

The Bank of England reports that, in July, household borrowing rose for the first time in four months. The level of bank deposits also returned to more normal levels, indicating that, as lockdown ended, consumers began spending again, having saved aggressively in the preceding months.

And there will also be other disincentives to save, chiefly the fact that the Bank of England's key policy rate is an all-time low of 0.1%, making it impossible for banks, building societies and other savings institutions to offer a meaningful savings rate.

Government-backed National Savings & Investments, an institution also favoured by many savers, has just slashed its rates.

While the spike seen this year in household saving is due to extreme circumstances, many people will hope that the savings habit becomes more established, even once the pandemic is over.

Industry estimates suggest that only around three in 10 working people have savings worth the equivalent of three months' income or more, while as many as 12 million people - more than a third of the UK's working population - are not saving enough for their retirement.

As Tom Selby, senior analyst at the stockbroker and investment platform provider AJ Bell noted today: "With lockdown strangling the ability of Britons to spend and the government's furlough support scheme working to protect jobs and wages, it was inevitable those people lucky enough to remain employed would save more as a result.

"For those who are in this position it is vital they use this opportunity to pay off any high cost debts and build up a decent cash buffer if they haven't already done so."

Depressingly, there is already evidence to suggest that this extraordinary figure does not mark the renaissance of a savings culture in Britain. The Bank of England has recently highlighted a sharp divergence in behaviour, with households with incomes of less than £35,000 running down their savings during the lockdown, while households with more than £35,000 increased their saving.

Should Bank of England consider negative rates?

Moreover, as the furlough scheme comes to an end, a rise in unemployment is inevitable, forcing growing numbers of people to run down what savings they have.

If the household savings ratio does remain at higher than usual levels, potentially weakening consumer spending, there are levers that the authorities can pull to try and change that behaviour.

The most striking of these would be a move to negative interest rates.

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2020-09-30 14:43:58Z
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'Stop being such Chicken Lickens': Top economist says people need to stop 'catastrophising' Covid-19 - Daily Mail

'Stop being such Chicken Lickens': Bank of England chief economist says people need to stop catastrophizing Covid-19 after GDP falls a record 19.8 per cent as he predicts 20 per cent GROWTH in next quarter

• Andy Haldane said Bank of England expects the economy to rebound with 'vertiginous' growth of 20 per cent in the third quarter 
• He cautioned against 'the economics of Chicken Licken', a reference to a folk tale about a chicken who worried the sky was falling down
• ONS says fall was 19.8 per cent rather than the 20.4 per cent estimated before 
• The contraction in UK GDP was still the biggest since modern records began

By David Wilcock, Whitehall Correspondent and James Tapsfield, Political Editor For Mailonline

Published: 15:07 BST, 30 September 2020 | Updated: 16:12 BST, 30 September 2020

The Bank of England's chief economist blasted doom-mongers 'catastrophising' the impact of coronavirus today, saying that overly pessimistic view could hold back the recovery.

Andy Haldane cautioned against 'the economics of Chicken Licken', a reference to a folk tale about a chicken who worried the sky was falling down.

He said the central bank expects the economy to rebound with 'vertiginous' growth of 20 per cent in the third quarter and said the faster-than-expected recovery should not be overlooked.

It came as  revised figures showed that the UK's economic plunge at the peak of coronavirus lockdown was not quite as bad as thought - but still the worst in modern history.

Official figures for the fall in GDP during the three months to June have been revised down from 20.4 per cent to 19.8 per cent. 

Speaking at an online event today, Mr Haldane said the economy faces an 'unholy trinity of risks' from rising Covid-19 cases, mounting job losses and the end-of-year Brexit deadline, but stressed there was a danger of exaggerating the threat they pose.

'Encouraging news about the present needs not to be drowned out by fears for the future. Now is not the time for the economics of Chicken Licken,' he said, adding that the speed and scale of the recovery has been 'fairly remarkable'. 

His call for a more upbeat attitude came after Rushi Sunak last week took aim at coronavirus doves with a warning that the UK must adapt and learn to 'live without fear' to avoid an economic catastrophe.

In an economic address to MPs the Chancellor set out measures designed to protect jobs and business after the PM had partially reintroduced lockdown measures across the UK. 

They are believed to have clashed over the scope of the new measures, with Mr Sunak seen as having won concessions from the PM who wanted to make it more draconian.

However Mr Johnson has made it clear that he reserves the right to make further steps in necessary. 

Andy Haldane cautioned against 'the economics of Chicken Licken', a reference to a folk tale about a chicken who worried the sky was falling down

Official figures for the fall in GDP during the three months to June have been revised down from 20.4 per cent to 19.8 per cent. However, the scale of the drop still makes it the biggestin modern history

Chicken Licken, the fowl who feared the worst 

Chicken Licken' also known as Henny Penny and a host of other names, is a European folklore character whose story was taken to North America.

He is a cowardly fowl who gets hit on the head by an acorn and concludes that the sky is falling in.

He begins warn the other animals of the impending Armageddon and they join his journey to join the king and warn him.

But in the panic a sly fox is able to lead them to his lair, where he is able to capture and eat them.

The moral of the story is that doom-mongers and panic can make things worse.

It has been attested to since Victorian times and may go back considerably further.

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'The economy began its recovery from this dramatic fall earlier, and has since recovered far faster, than anyone expected,' he said.

Mr Haldane has been one of the most optimistic over the UK's economic recovery from the pandemic and insisted in his speech that 'policy authorities, including the Bank, have a public responsibility to avoid economic catastrophising'. 

But the Office for National Statistics (ONS) has also concluded that UK plc performed worse during the first quarter of the year than previously thought.

The economy contracted 2.5 per cent between January and March, compared to previous estimate of 2.2 per cent.  

Overall GDP is now 21.8 per cent smaller than at the end of 2019 - underlining the threat to millions of jobs as Boris Johnson struggles to balance getting the country back up and running with tackling a rise in cases. 

Separate figures published earlier this month showed GDP went up by 6.6 per cent in July. 

The ONS said: 'While it is still true that these early estimates are prone to revision, we prefer to focus on the magnitude of the contraction that has taken place in response to the coronavirus pandemic. 

Boris Johnson (pictured in Exeter yesterday) is struggling to balance getting the country back up and running with tackling a rise in cases

Furious Speaker Lindsay Hoyle blasts PM over Covid laws

Speaker Lindsay Hoyle today delivered a searing rebuke to Boris Johnson for treating the Commons with 'contempt' by ramming through coronavirus lockdown curbs.

Sir Lindsay said sweeping powers for ministers to deal with the public health crisis were being abused, with measures imposed without any proper scrutiny or a vote.

Reading the riot act to the PM as he sat silently in the chamber, Sir Lindsay made clear that he is ready to side with dozens of Tory rebels and opposition parties to ensure more scrutiny - warning that the government's must act now to restore 'trust'.

'The Government must make greater efforts to prepare measures more quickly, so that this House can debate and decide upon the most significant measures at the earliest possible point,' he said.

'I am now looking to the Government to rebuild the trust with this House and not treat it with the contempt that it has shown.'

The Speaker did reject an amendment tabled by Tory rebels that would have forced votes before new measures are imposed, saying it would breach parliamentary procedure.

However, the intervention appeared to be enough to trigger an immediate climbdown from the government. Health Secretary Matt Hancock is expected to announce concessions in the Commons shortly, with rebels confident they have secured guarantees of advance scrutiny for major changes.

The barrage - which Mr Johnson completely blanked as he started PMQs immediately afterwards - came just hours before the premier is due to address the nation at a press conference alongside Chris Whitty and Patrick Vallance.

But he has been urged to drop the scientists from such briefings, with complaints that they are being used as 'propaganda' to back up increasingly draconian restrictions.

MailOnline understands Cabinet hawks are increasingly frustrated by the dire warnings from the medical and science chiefs about a second wave.

Former Downing Street aides have been calling on the government to take the experts out of the limelight, warning they are not great communicators and it gave the impression decisions were clear cut rather than a matter of judgement for ministers.

Senior Conservative Sir Bernard Jenkin upped the ante today by swiping that the government is using 'science as propaganda'.

 

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'It is clear that the UK is in the largest recession on record.

'The latest estimates show that the UK economy is now 21.8 per cent smaller than it was at the end of 2019, highlighting the unprecedented size of this contraction.'

It came as TSB said it will cut around 900 jobs as part of plans to close 164 of its high street bank branches.

The Edinburgh-based bank said it expects most of the redundancies to be voluntary but did not rule out forcing staff out.

TSB added that its branch network would be the seventh biggest in the UK after the closures reduce it by a third.

In comes in the context of a bloodbath on the high street, with 193,731 job losses now announced by major British employers since the start of the lockdown in March.

TSB also said that more than nine in ten customers will have less than 20 minutes travel to a branch, and that people are increasingly banking online.

The bank, part of Spain's Sabadell, said the cuts were part of its three-year strategy to reduce costs to stay competitive. 

The company has previously said it intended to reduce the size of its branch network but has now accelerated plans amid the pandemic.

It will leave the bank with 290 branches, more than halving its store estate over the past seven years.

The announcement comes after a study by consumer group Which? in July found banks and building societies had closed, or scheduled the closure, of 3,588 branches since January 2015, at a rate of about 55 each month.

TSB chief executive Debbie Crosbie said: 'Closing any of our branches is never an easy decision but our customers are banking differently - with a marked shift to digital banking.

'We are reshaping our business to transform the customer experience and set us up for the future.

'This means having the right balance between branches on the high street and our digital platforms, enabling us to offer the very best experience for our personal and business customers across the UK.

'We remain committed to our branch network and will retain one of the largest in the UK.'

Employee unions Unite and TBU strongly criticised the cuts, with Unite calling it a 'dark day for the finance sector'.

TBU General Secretary Mike Brown said: 'To throw hardworking staff on the scrap heap in the middle of a pandemic and against the backdrop of the worst financial crisis in a generation is nothing short of scandalous.'

Dominic Hook, Unite national officer, added: 'Unite has urged the bank to rethink these plans and protect these much-needed jobs during the current health pandemic.

 

'Premier League clubs can afford a few bob': Tory MPs blast Government's £20million bailout to struggling non-league sides after mega-rich teams splashed £1.1BILLION on transfers his summer

Culture Secretary Oliver Dowden is overseeing the Government bail-out to aid non-league clubs

Tory MPs today blasted the Government for handing a £20 million taxpayer-funded bailout to struggling National League football clubs as they said the Premier League should be picking up the tab and called on top players to donate a week's wages. 

Ministers have decided to hand clubs in the National League, the National League North and the National League South a total of up to £3m a month so they can start their season this weekend. 

Many of the 67 clubs faced financial ruin without the match day revenue they rely on after the Government announced earlier this month that fans would not be allowed into stadiums from October 1 as had been planned.

The life support package is being put together by the Department for Culture, Media and Sport and it will cover 'essential lost revenue' so that matches will be able to be played. 

But the handout has prompted fury among some Tory MPs who believe mega-rich Premier League teams should have provided the funding rather than the taxpayer - especially after top sides splashed out £1.1bn on transfers in the current transfer window. 

One senior Tory MP told MailOnline: ‘They should chip in. A lot of these major clubs have got traditional links with smaller Football League and non-league teams.

‘They can afford a few bob from their coffers to support these teams which are often the feeders for the big clubs.  

CRISIS? WHAT CRISIS

National League and many EFL clubs say the Covid-19 pandemic has left them on the brink of financial ruin. 

Yet Premier League clubs have once again spent big on new players, with Chelsea spending an eye-watering £89m to get German star Kai Havertz from Bayer Leverkusen.

The 21-year-old is the most expensive transfer this summer with Manchester City’s £64m acquisition of Ruben Dias, a new club record for Pep Guardiola’s side, the second most expensive in the Premier League in this window.

Havertz’s Germany team-mate Timo Werner ranks third after his £54m move from RB Leipzig to Chelsea.

The other transfers with the biggest fees were:

4. Ben Chilwell Chelsea to Leicester £50m

5. Diogo Jota – Wolves - Liverpool £41m

6. Donny van de Beek Ajax – Manchester United £40m

7. Nathan Ake Bournemouth – Manchester City £40m

8. Ferran Torres Valencia – Manchester City £37m

9. Nelson Semedo Barcelona – Wolves £37m

10. Rodrigo Valencia – Leeds £35m 

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‘It is the case that the smaller clubs are really important to the game and the big clubs have got a duty to support them. They could afford a lot more than £20m.’

Tory MP Steve Brine, a member of the Commons Culture Committee and former minister told MailOnline taxpayer money could be better spent as he suggested the best paid players could 'buddy up' with lower league teams to keep them afloat. 

'Players like Gareth Bale who are earning £600,000 a week should "buddy up" with a National League club and they should give them a grant of one week’s wages,' he said. 

'For many of the National League clubs one week’s wages from Gareth Bale would sustain them for a year.’

Mr Brine said there are 'many other places where we could put Government money' and 'as much as the country loves the national game there is a limit to what we have got as taxpayers'. 

The handout was confirmed this afternoon in the House of Commons by the Minister for sport, Nigel Huddleston, who said local teams are the 'heartbeats of their communities'. 

Football has been one of many sports begging the Government for financial aid in recent months. But many believe wealthier clubs should be stepping in to help smaller, struggling teams, rather than the taxpayer.

The handout for the National League comes after Chancellor Rishi Sunak last week unveiled his latest business bailout which economists estimated could cost £5bn, potentially taking the total of the Government's Covid-19 support to £200bn.

Meanwhile, official statistics published last week showed the UK's public sector debt continues to climb above £2 trillion - a record high. 

There has been a deafening silence from the top clubs when lower level teams - both in the EFL and further down the football pyramid - have asked for financial help during the unprecedented crisis. 

While some clubs are sceptical about providing EFL clubs with a handout, others — primarily the smaller clubs — are far more sympathetic.

There is a growing acceptance that top-flight clubs will have to inject cash into the EFL to keep several teams afloat, knowing that not doing so will have grave consequences and will damage the Premier League's image.

Some club officials want to avoid a scenario where it appears they are offering financial support under duress; or, even worse, not giving them any money at all.

There is a belief that the Government are reluctant to include the Premier League and EFL in a financial relief fund for UK sport after plans to reintroduce fans at stadiums were scrapped.

National League clubs are to receive government funding to allow their season to commence. But they will play in empty stadiums rather than in front of fans (above at Halifax)

While news of the bailout was welcomed by employees and supporters of non-league clubs, others felt it was not the duty of the British taxpayer to fit the bill to help these teams.

'Its almost like the govt doesn't expect to get any of this money back or repay their enormous borrowings back,’ one critical fan wrote on Twitter.

'Think they've forgotten whose money they are giving away, it's not govts money, it's our money, the British taxpayers.’

Twitter account, The Away Section, which focuses on supporters at the grass-roots level, was equally scathing, insisting the £20m would be ‘paid back in the long term’.

They wrote: What a waste of money - nothing to celebrate really. On one hand its good clubs will get this crisis softened but there really is no sense in this??. Plus govt's don't give money away for free - don't believe that. We will all pay in the long term.'

Another called on non-league fans to take a stand against the Premier League as it is the government, not the 20 top-flight teams, providing the cash to ease the financial worries of teams at step five and six in English football.

'If the Premier League decide they can’t spare some change for the National League clubs, I hope all Non League fans respond by cancelling their TV subscriptions to the sports channels,’ he wrote.

Yet Brighton chief executive Paul Barber, speaking today on Radio 5 Live, said it was unreasonable to demand Premier League clubs riude to the rescue while they, too, were suffering from the absence of fans. 

'We're being asked to support the football pyramid, but what we're asking for is to be able to sustain our own businesses to put us in a better position to be able to do that,' he said.

One fan described how the Dias money could have funded the entire lower league for a year 

In a show of defiance, a non-league fan called on supporters to boycott sport TV subscriptions

The reaction to the news was not all positive as one user felt it was not the responsibility of the British taxpayer to step up and bail-out clubs operating in non-league

The Away Section described the Government bail-out as a 'waste of money' long term

Manchester City's £64m signing of Ruben Dias left non-league fans irritated that Premier League clubs have not offered money to help clubs lower down the football pyramid

Earlier this week a letter co-signed by 17 individuals including former Football Association chairmen Greg Dyke and Lord Triesman and BBC and BT Sport pundit Robbie Savage and 10 MPs said help was urgently needed to ward off the threat of financial collapse. 

The letter, sent to Culture Secretary Oliver Dowden warned:  'Without any plans being made to rescue clubs, many in the EFL and others in the National League as well, are now actively preparing to make all but essential staff redundant, cease playing, close down their youth academies and community foundations, and put their business into administration,' the letter warns.

BBC and BT Sport pundit Robbie Savage (left) and former FA chief Greg Dyke (right) both signed the letter with clubs in the EFL standing to lose £200m without crowds this season

The letter sent to Dowden in full

We wrote to you in May this year setting out the financial crisis facing football clubs, and particularly those in the English Football League (EFL), because of the loss of match-day revenue resulting from the government's policies to combat COVID-19. We also detailed a game plan that could be put in place to prevent this. Since then clubs have been able to sustain themselves through advance season ticket sales, solidarity payments from the Premier League, and had agreed to start playing the new season in the belief that fans would be allowed to return to stadiums this autumn.

It's now clear that spectators will not be back in EFL grounds, even in limited numbers, for the foreseeable future. As a consequence clubs will not only lose this budgeted-for income, but will also have to refund season tickets to fans who will now be prevented from attending matches.

There has been no agreement reached by the football authorities on a bailout for clubs that need it, many of whom were already heavily indebted before the coronavirus arrived. From the statements made by ministers at DCMS questions in the House of Commons on 24 September, it's equally clear that the government has no current proposals to provide financial support, and nor is it prepared to offer any guarantees for the future.

Without any plans being made to rescue football clubs, many in the EFL and others in the National League as well, are now actively preparing to make all but essential staff redundant, cease playing, close down their youth academies and community foundations, and put their business into administration. This could lead not only to the failure of many historic community clubs, but the collapse of the national league structure that we have known for over one hundred years. These are decisions that will be made in the coming weeks, with many clubs unable to meet their payroll obligations for next month.

There is still time to act, but not long left. The government made £1.5billion available to rescue arts and cultural organisations across the country that faced closure because of the coronavirus. We believe that football, like other well-loved professional sports in this country, is also a cultural activity. We would ask that the government now make clear what financial support it's prepared to give before it is too late. In particular, we believe that in order for clubs to sustain themselves over the winter and keep playing, they would need to be compensated for the loss of match ticket sales. The absence of this income is not a result of their actions, but the policies that have been put in place by the government in response to a public health emergency.

We understand that you had hoped that the Premier League clubs might make a significant additional contribution to support the EFL. Whilst this would be welcome those clubs too face swingeing losses from lost ticketing receipts and falling revenues from broadcasting matches. However, it cannot be the Premier League's sole responsibility to sort out issues arising from government policy. The government itself needs to take responsibility, or many already-embattled towns - often in areas of the country which have suffered many hardships in recent decades - will lose their last focal point.

SIGNATORIES

Damian Collins MP, former Chairman of the DCMS select committee

Charlie Methven, co-owner Sunderland FC

Lord David Triesman, former Chairman of the FA

Lord Faulkner of Worcester, Vice-President The National League

Lord Goddard of Stockport

Malcolm Clarke, Chairman of the Football Supporters Association

Robbie Savage, former player and sports broadcaster

Greg Dyke, former Chairman of the FA

Karl McCartney MP for Lincoln and Chairman of the APPG for Football

Ian Mearns MP for Gateshead and Chairman of the APPG for Football Supporters

David Amess MP for Southend West

Rehman Chishti MP for Gillingham

Damian Green MP for Ashford and member of the DCMS Select Committee

Kevin Brennan MP for Cardiff West and member of the DCMS Select Committee

 

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Questions will now shift to whether clubs in the EFL will be granted a similar bail-out to off-set their losses without fans. 

The EFL fear its 72 clubs stand to lose £200m this season without crowds, having already lost £50m last season. There is growing pressure on the Premier League to fund an emergency bail-out of the EFL but, as of today, nothing has been agreed.

It is anticipated that the Football League stands to lose £200m this season without supporters 

Pilot events for fans returning to stadiums had commenced but have since been stopped with an increase in Covid-19 cases and the Government pushing back plans for an October return date. 

That proved particularly damaging for clubs in the third, fourth, fifth and six tiers, who had been planning for a spike in revenue next month. 

Gillingham owner Paul Scally recently revealed to the Mirror that the League One club were losing £40,000 a month at the current rate and their existence was very much under threat. 

'You cannot tell me that with Chelsea spending £200m in the transfer market there is no money in the Premier League to help out the EFL clubs,' Scally said.

'We should be a family in football. We've been a family for 125 years and now when a member of the family is struggling badly it's time for wealthy big brother to step up and help the family. It's as simple as that.'

The National League is set to start on Saturday, while National League North and South clubs are in FA Cup qualifying action. 

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2020-09-30 14:07:21Z
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The UK economy shrank more than it has done in 65 years, plunging nearly 20% in the second-quarter | Markets - Business Insider

TOLGA AKMEN/Getty

• The UK economy posted a record contraction in the second quarter of the year, with gross domestic product plunging 19.8% between the months of April and June.
• The latest figures show that the UK's quarterly decline was less severe than previous estimates by the Office for National Statistics.
• It is the largest decline since quarterly records began in 1955, and reflects the harsh impact of ongoing containment policies that were put in place to contain the coronavirus pandemic.
• "It is clear that the UK is in the largest recession on record," the ONS said.
• Visit Business Insider's homepage for more stories.

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The UK economy posted its biggest quarterly fall in record between April and June this year, officially entering recession, but a final reading of total activity on Wednesday showed the decline was less severe than originally thought.

Gross domestic product - widely used to measure a country's output - fell by 19.8% in the second quarter, the biggest fall on record, according to data from the Office for National Statistics. 

The figure is marginally lower than the previous second-quarter estimate of a 20.4% drop. Having posted two successive quarterly falls, the UK officially met the technical definition of a recession.

"It is clear that the UK is in the largest recession on record," the ONS said.

The economy's historic drop is the largest decline since quarterly records began in 1955, and is reflective of the containment policies implemented against the COVID-19 pandemic, the ONS said. 

First-quarter GDP figures also showed a steeper contraction of 2.5%, revised from a previous estimate of a 2.2% decline.

Read More: UBS says the chances of a Democratic sweep have risen to 50% as Trump and Biden square off in their first debate. These 9 assets will help investors profit if a blue wave comes crashing in.

ONS

Britain has suffered one of the worst retreats in economic activity in Europe this year. It has also registered more deaths due to COVID-19 than any other European country, with over 41,000 fatalities. 

In three months, Britain also fully exits the European Union and, despite more than four years elapsing since the vote to leave in June 2016, Conservative Prime Minister Boris Johnson's government has yet to reach an agreement with the bloc on trade.

"The bulk of the pain of Q2's slump in GDP had been borne by the government rather than households and businesses," said Ruth Gregory, senior UK economist at Capital Economics. "But with the recovery already flattening off, fiscal support fading and the full scale of the fallout in unemployment yet to be felt, that will change in the second half of 2020."

The British sterling fell 0.3% against the dollar on Wednesday.

Read More: JPMORGAN: The best defenses against stock-market crashes are delivering their weakest results in a decade. Here are 3 ways to adjust your portfolio for this predicament.

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2020-09-30 13:57:00Z
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'Chicken Licken' views will hold us back, says Bank economist - BBC News

Pessimistic "Chicken Licken" views about the economy are in danger of holding back the UK's post-lockdown economic recovery, according to Bank of England economist Andy Haldane.

"Encouraging news about the present needs not to be drowned out by fears for the future," he said in a speech.

He compared negative forecasters to the children's storybook character who feared the sky would fall.

"Now is not the time for the economics of Chicken Licken," he said.

"My concern at present is that good news on the economy is being crowded out by fears about the future," he added.

"Collective anxiety is as contagious, and could be as damaging to our well-being, as this terrible disease."

Mr Haldane said the UK faced an "unholy trinity of risks from Covid, unemployment and Brexit", but it was important not to overlook the economy's quicker-than-expected recovery from lockdown.

"The economy has already recovered just under 90% of its earlier losses. Having fallen precipitously by 20% in the second quarter, we expect UK GDP to have risen by a vertiginous 20% in the third quarter - by some margin its largest-ever rise," he said.

However, he admitted that the economic news had not all been positive, with job losses continuing to mount, while the recovery in consumer spending had not been matched among businesses.

• Bank of England policymaker defends negative rates
• Bank deputy governor warns against negative rates

His latest intervention comes amid growing speculation that the Bank of England is contemplating cutting interest rates so much that they fall below zero.

At present, the Bank's rate is at an all-time low of 0.1%.

Different members of the Bank's Monetary Policy Committee have put forward both sides of the argument in recent days.

In his speech on Wednesday, Mr Haldane said none of the conditions that would justify negative interest rates had been met.

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2020-09-30 11:37:13Z
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TSB to close 164 branches and cut 969 jobs - Sky News

TSB has announced plans to close 164 branches and cut 969 jobs as it accelerates a shake-up launched last year.

The cuts, blamed on the shift in customer behaviour from over-the-counter to online banking - accelerated by the COVID-19 pandemic - will reduce its high street network to 290.

That compares to more than 600 branches when TSB was relaunched in a spin-off from Lloyds Banking Group in 2013.

Image: Chief executive Debbie Crosbie said closures were 'never an easy decision'. Pic: TSB

The bank said it was registering almost 4,000 customers a day for its digital app, up from 1,200 before the pandemic, while the proportion of transactions made digitally or through automation - already at 90% last year - had risen further during the outbreak.

TSB chief executive Debbie Crosbie said: "Closing any of our branches is never an easy decision, but our customers are banking differently - with a marked shift to digital banking.

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"We are reshaping our business to transform the customer experience and set us up for the future.

"This means having the right balance between branches on the high street and our digital platforms, enabling us to offer the very best experience for our personal and business customers across the UK."

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The cuts, due to take place next year, add to an ongoing programme of 82 branch closures announced when TSB first launched a three-year turnaround plan last November.

That means that over the period the number of branches will have fallen from 536 before the closures started, though the bank pointed out it would still have the seventh largest network in the UK.

2018: Banks: too old fashioned for online?

It is the latest lender to announce closures, following rival Co-op, which said last month that it was shutting down 18 sites - while bigger lenders such as Lloyds and NatWest have also been chopping back their high street presence.

TSB said it was taking steps to support vulnerable customers in rural locations.

The bank said branches earmarked for closure were on average less than 0.3 miles to the nearest post office - where TSB customers will be able to make deposits and withdrawals.

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It said the vast majority of job losses were expected to come through voluntary redundancies.

A total of 969 "role reductions" will be offset by 120 new roles being created.

Spanish-owned TSB has been attempting to turn around its fortunes after an IT fiasco in 2018, which left nearly two million people locked out of their accounts and led to the then chief executive Paul Pester to step down.

Trade union Unite urged TSB to rethink the plans.

National officer Dominic Hook said: "Not only do these staff deserve more from their employer after showing the utmost loyalty to TSB, customers will be deeply hit by these branch closures."

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2020-09-30 09:16:26Z
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William Hill give green light to £2.9 billion takeover by Caesars Entertainment - Racing Post

William Hill: bought by Caesars Entertainment

David Dew

William Hill have agreed a £2.9 billion takeover by Caesars Entertainment, although the American casino giant looks set to sell off the bookmaker's businesses outside the US.

Hills had said on Monday they were "minded" to accept the offer from the owner of Caesars Palace in Las Vegas, which already holds a 20 per cent stake in William Hill's operation in the US. 

They revealed last week that they had received takeover proposals from both Caesars and private equity giant Apollo, but Caesars appeared to have shut out the rival bid when it announced it would terminate aspects of the joint venture with Hills in the US should Apollo's bid prevail.

William Hill chairman Roger Devlin said the company's board believed the Caesars bid, which is subject to shareholders' approval, was the best option, "at an attractive price for shareholders".

He added: "It recognises the significant progress the William Hill group has made over the last 18 months, as well as the risk and significant investment required to maximise the US opportunity given intense competition in the US and the potential for regulatory disruption in the UK and Europe.

"Under the revitalised senior leadership team, William Hill has been delivering on its strategy and potential. William Hill is one of the world's leading betting and gambling companies, with a long and proud heritage. 

"It is one of the most recognized brands globally. Over recent years, it has transformed from a business once heavily reliant on UK retail into a company that is truly diversified by geography and channel, providing a stable standalone platform for future growth."

Caesars said its strategic focus was on the "opportunities immediately evident in the US market" and that it was their intention to find "suitable partners or new owners for the non-US businesses of William Hill", a move it would implement "in the short term following completion of the acquisition".

William Hill, which were founded in 1934, operate around 1,400 betting shops in the UK and employ around 7,500 people.

Devlin added: "For now, it is very much business as usual. Employees will be kept fully informed through this process. In terms of our UK and international businesses, we believe they have a strong future ahead and we will work with Caesars to find suitable partners to further the long-term growth prospects of these businesses."  

William Hill's share price was down slightly at 274p on Wednesday morning.

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This story is being updated and more news will follow shortly. You can also follow the Racing Post on Twitter (@RacingPost) to get the latest alerts

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FIRST PUBLISHED 9:41AM, SEP 30 2020

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2020-09-30 08:56:19Z
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