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£2bn lost to criminals in furlough cash fraud
Organised criminals have siphoned off up to £2 billion intended for furloughed workers, tax officials believe. HM Revenue and Customs has estimated that between 5 and 10 per cent of £39bn in payments made under the Treasury’s job retention scheme are likely to have been claimed fraudulently. Of these, it is “almost certain” that more than half has been paid to organised criminals posing as legitimate businesses to make claims under the emergency scheme, tax officials have told the National Audit Office. As well as organised crime, the NAO said that other types of fraud included employers making furloughed employees work or inflating claims. The Times, October 23

England’s Covid contact-tracing hits new low
Boris Johnson and his chief scientific adviser have admitted to failings in England’s £12bn test-and-trace system as contact-tracing fell to a new low and waiting times for test results soared to almost double the target. Under pressure to explain new figures showing less than 60 per cent of close contacts being reached, while test turnaround times rose to nearly 48 hours, the prime minister said: “I share people’s frustrations and I understand totally why we do need to see faster turnaround times and we need to improve it”. The system, designed to contain outbreaks by ensuring anyone exposed to the virus self-isolates, was helping “a bit”, Johnson added. “The thing depends on people self-isolating and breaking the transmission. It is helping a bit already to break the transmission. About 1m contacts have been reached. But there is more that it can do if everybody complies once they are contacted by NHS Test and Trace.” The Guardian, October 22

Outrage at Rishi Sunak’s England-only jobs fund
Nicola Sturgeon has insisted it is “intolerable and unacceptable” that coronavirus funding in England will not lead to extra cash being given to the Scottish government. Rishi Sunak, the chancellor, announced billions of pounds of extra help for companies and workers affected by Covid-19 restrictions in England. Scottish Tories hailed the “blockbuster support” from the UK government, but Ms Sturgeon said the chancellor had told the Scottish ministers that the new measures “won’t deliver any upfront extra cash for Scotland” beyond £700 million of funding that has already been pledged. The first minister hit out on Twitter, saying: “Businesses in England have been given, rightly, an open-ended commitment to support for as long as needed.” But she added that the Scottish government “will be expected to match that for Scottish businesses – with no confirmation that the money will be there to pay for it, and no borrowing powers to raise it”. The Times, October 23

UK seals first big trade deal with Japan
The UK has completed its first large post-Brexit trade deal after signing an agreement with Japan that will take effect from January 1. Liz Truss, the UK’s international trade secretary, signed the agreement with Toshimitsu Motegi, the Japanese foreign minister, in Tokyo on Friday. The pact, negotiated in just a few months over the summer, is seen by the UK government as an important demonstration of its ability to reach new trade deals outside the EU … The new deal largely replicates the existing EU-Japan deal, but has an extra chapter on digital trade and lacks the quotas for agricultural exports such as cheese that Brussels wrested from Tokyo during years of talks. Instead, the deal allows the UK to use any agricultural quotas left over by the EU. British officials are confident there will be enough space in the quotas to maintain and increase the UK’s food exports to Japan. Financial Times, October 23

Barclays warns of cuts as Covid pushes bad debt charges to £4.3bn
Barclays has warned of potential cost cuts as the economic fallout from the Covid-19 pandemic pushed its total bad debt provisions to £4.3bn. The lender has put aside another £608m to help cover a potential surge in customer defaults. It came as Barclays beat profit forecasts for the third quarter of 2020. While this latest increase was less than the £1bn forecast by analysts, it brings Barclays’ total credit impairment charges to £4.3bn for the nine months to September. Earlier this year, a spokesperson for the bank confirmed that Barclays could be forced to put aside up to £4.5bn to cover bad debts. The Guardian, October 23

Consumer confidence drop fuels recession fears
UK consumer confidence, spending and mobility dropped in October as coronavirus infections rose and restrictions tightened across the country, fuelling fears of a double-dip recession. Data from research company GfK showed that the UK consumer confidence index tumbled 6 percentage points to minus 31 in the first half of October. This is the lowest reading since May, with consumers becoming more pessimistic about both the general economic situation and their personal financial conditions. Financial Times, October 23

UK shoppers give retail sales another boost
Shoppers gave the UK retail sector an unexpectedly big boost last month, increasing spending at the fastest annual rate in more than a year with purchases at furniture and gardening stores leading the way. Retail sales in September were 4.7 per cent above their level in the same month last year, marking the fastest pace of growth since April 2019, according to data from the Office for National Statistics published on Friday. Spending came in 5.5 per cent above the level immediately before the pandemic in February. The figures suggest consumers continued to support the UK’s fragile economic recovery in September, but economists said the new round of Covid-19 restrictions across the country posed a severe threat to continued growth. Financial Times, October 23

Ministers move north in civil service shake-up
Ministers will be told to leave London and work in the “great northern cities” in one of the biggest shake-ups of the civil service ever attempted, Boris Johnson said. The prime minister pledged to move entire departments from Whitehall outside the capital to fulfil his pledge to “level up” the country. Under the plans about a quarter of the 92,000 civil servants who work in the capital would move to the regions by the end of the decade. The Treasury has announced plans to create an “economic campus” in the north and other departments, such as Work and Pensions and the Home Office, could also move. Speaking to northern business leaders, Mr Johnson said: “We will move departments of state, ministers, private offices and all, to great northern cities and regions that represent the future of this country.” The Times, October 23

Trump and Biden row over Covid, climate and racism
US President Donald Trump and his White House challenger Joe Biden clashed over Covid and race while trading corruption charges, in their final live TV debate. On the pandemic, Mr Biden would not rule out more lockdowns, while Mr Trump insisted it was time to reopen the US. Mr Trump cited unsubstantiated claims Mr Biden personally profited from his son’s business dealings. The Democrat brought up Mr Trump’s opaque taxes. Mr Biden has a solid lead with 11 days to go until the presidential election. But winning the most votes does not always win the election, and the margin is narrower in a handful of states that could decide the race either way. More than 47 million people have already cast their ballots in a voting surge driven by the pandemic. This is already more than voted before polling day in the 2016 election. There are about 230m eligible voters in total. BBC news, October 23

UK and EU to resume talks in final push for deal
The EU and UK will embark on an intensified final phase of Brexit talks on Thursday after Britain agreed to lift its block on negotiations, prompting the biggest rally in the pound since March. The breakthrough came in a call lasting about an hour between Michel Barnier, the EU’s chief negotiator, and David Frost, his UK counterpart, with both sides agreeing to resume face-to-face talks. Negotiations had been on ice since last week because of UK prime minister Boris Johnson’s decision to demand a “fundamental” rethink from Brussels before allowing further discussions. EU officials will travel to London to get talks under way on Thursday with the intention that negotiations will take place every day until a deal is reached – either in the UK capital or in Brussels. The EU team is expected to stay in London until Sunday. Financial Times, October 22

Britain to bar EU citizens who had a year in jail
European citizens who have served more than a year in jail will face an automatic ban from entering Britain next year, Priti Patel said last night. From January 1 all EU citizens will face criminal records checks on entry into the country, even those coming to the UK on holiday. Anyone found to have been sentenced to a year or more in prison will face an automatic ban. People who have committed lesser crimes could still be denied entry depending on their individual case. This would include any EU citizen who has any criminal conviction in the past 12 months and anyone whose presence in the UK was considered “not conducive to the public good”. The Times, October 22

Foreign rough sleepers face UK deportation
Foreign rough sleepers face being deported from Britain under draconian immigration laws to be introduced when the Brexit transition period ends. Under the immigration rules to be laid before parliament and due to come into force on 1 January, rough sleeping will become grounds for refusal of, or cancellation of, permission to be in the UK. Charities described the move as a “huge step backwards”, which would prevent vulnerable people from asking for help. Home Office officials are said to be aware of the “sensitivity” of making rough sleepers liable for deportation. However, getting people off the streets is said to be a particular focus of Boris Johnson and his ministers. More than a quarter of rough sleepers in the UK are thought to be foreign nationals. In 2019 official figures showed that 22 per cent were from the EU while 4 per cent were non-EU nationals. Within London this rose to 42 per cent and 7 per cent respectively. The Guardian, October 21

Ireland faces Brexit and virus double whammy
Ireland will be the eurozone’s biggest loser from a no-deal Brexit, which threatens to cause an economic “double whammy” on top of the fallout from rising coronavirus infections, the Irish central bank’s governor has warned. Gabriel Makhlouf told the FT that if the UK left the EU without a trade deal at the end of this year, the new tariffs on goods would hit Ireland’s agricultural and food sectors hardest, knocking 2 percentage points off the country’s economic growth next year. “This whole process is lose-lose,” said Mr Makhlouf. “People talk about who will be the winners from this, but I would argue that in the short term there will be no winners.” However, in the longer term he predicted London’s dominant position in Europe’s financial services sector was likely to shift slowly to Dublin, Frankfurt, Paris or Amsterdam. Financial Times, October 22

Worried young help to slow spread of Covid-19
The rise in coronavirus cases in England has slowed as young people have been frightened into following social-distancing rules, officials believe. The trend appears to have been a key factor in helping the northeast to escape Tier 3 restrictions. Concern about “long Covid” has been suggested as one reason for the young changing their behaviour. A key government “gold” meeting on the pandemic, chaired by Matt Hancock, the health secretary, was told yesterday that infection rates appeared to be falling among younger people, slowing the national surge in cases … Cases are still rising in the over-60s and hospital admissions and deaths are expected to carry on rising as a result. However, after a rise in infections was seen in the young first, there are hopes that a fall in the same group could be followed by an easing of infections in older adults. The Times, October 22

FBI says Iran and Russia have US voter info
US national security officials say Iran was responsible for sending threatening emails to Democratic voters. The emails appeared to come from a far-right pro-Trump group and were meant to “incite unrest”, National Intelligence Director John Ratcliffe said. He also said US officials found Iran and Russia had obtained “some voter registration information”. The announcement comes 13 days before the presidential election. The unusual intelligence briefing this close to the vote is seen as a testament to the government’s concerns over voting interference and disinformation campaigns from foreign actors. Mr Ratcliffe said Iran’s “spoof emails” claimed to be sent by the far-right Proud Boys group in order to “intimidate voters, incite unrest and damage” President Donald Trump. BBC news, October 22

MPs: social care in England needs £7bn a year
A cross-party group of MPs have called for an urgent multibillion-pound injection into England’s crisis-hit social care system to address rising levels of need among older and disabled people and to improve pay and skills for care workers. The health and social care select committee said ministers should invest at least £7bn a year in the care sector by 2023-24, though it said this was only a “starting point” and that it would not address unmet care needs nor improve access to care. The full cost of adequately funding social care was likely to run into tens of billions, the committee said. It said this was essential if society was to look after vulnerable people “with the dignity and respect they deserve”. “The current system is unfair, confusing, demeaning and frightening for the most vulnerable people in our society and their families. It is therefore essential that the government tackle the problems in the care sector as a priority,” the committee’s report says. The Guardian, October 22

Tory MP quits govt job over free school meals
A Tory MP has quit her government job after voting for a Labour motion to offer free school meals during holidays until Easter 2021. Caroline Ansell said vouchers were not a long-term solution – but they helped families struggling with the pandemic. Footballer Marcus Rashford, who is leading a campaign on child hunger, urged MPs to “unite” and stop being influenced by “political affiliation”. On Wednesday evening, MPs rejected the Labour motion by 322 votes to 261. BBC news, October 22

Wales rail services to be nationalised
The Transport for Wales rail franchise is to be brought under Welsh Government control from next February. Ministers have confirmed the takeover from KeolisAmey. Day-to-day services will be run by a publicly-owned company. It follows significant falls in passenger numbers during the Covid-19 pandemic. Economy Minister Ken Skates said the government had stepped in “to stabilise the network and keep it running”. The last few months have been extremely challenging for public transport in Wales and across the UK. Covid has significantly impacted passenger revenues,” he said. BBC news, October 22

Tea, apples and cocoa linked to healthy heart
Consuming plenty of tea, apples and cocoa could be as effective as the Mediterranean diet in reducing blood pressure and protecting against heart disease, a study suggests. The research involved more than 25,000 people in Norfolk. Crucially, unlike most investigations of the links between nutrition and health, it did not rely on the participants reporting what they ate and drank. Instead, the researchers took urine samples to monitor their intake of a class of compounds known as flavanols. In a typical British diet, the main source appears to be tea, followed by apples. Cocoa and berries also contain them. The Times, October 22