In a year marked by sharp volatility, stretched valuations, and cross-asset turbulence, protecting downside risk became as critical as generating returns.

In this edition of ETMarkets PMS Talk, Karan Aggarwal, Co-founder and CIO of Ametra PMS, explains how a tactical allocation strategy—with nearly 70% exposure to debt and gold—helped cushion portfolios during FY26.

He discusses the role of asset allocation and factor rotation in navigating uncertain markets, the importance of reducing timing risk in equities, and how a rule-based, multi-asset approach can deliver more consistent outcomes across market cycles. Edited Excerpts –

Q) Thanks for taking the time out. The strategy delivered around 10% return in the last 1 year (FY26). How do you interpret this performance in the context of a volatile market environment?

A) Last 12 months have been quite volatile across asset classes. While midcap and largecap remained time correction mode till Feb 2026, oil shock in March 2025 triggered broke patience of investors and triggered a 10% correction across benchmarks.

Deadly cocktail of faltering EPS growth (5%-10%) and high valuations (22-23x for largecaps and 32x for midcaps) ensured all attempts at breakouts above Sep 2024 failed amidst positive policy action such as repo rate cuts, GST moderation and US-India deal.

Things have been worse in smallcaps and microcap space with benchmarks spending most of year at drawdowns of 10%-20% against all-time time highs of Dec 2024.

Even in fixed-income space, yield rose sharply in last 9 months, leading to negative returns in long-term fixed-income securities. On the other hand, gold and silver delivered a one-dimensional one-in-a-generation rally with triple-digit returns in 2nd half of 2025.
If we look back at history of Indian financial markets, these kinds of trend-neutral periods marked by rich equity valuations, EPS stress, yield risk, violent moves in commodities and high geoeconomic risk has happened before as well as seen in 2011-2013 and 2017-2019.
Factor income has been tested for delivering double-digit returns in such trend-neutral market regime with tactical exposure to equities, debt and gold. In this context, 10% returns from strategy were on expected lines in times when most hybrid schemes are struggling to deliver low single-digit returns.
Q) Compared to the benchmark, the 1-year performance appears relatively resilient. What worked in FY26—asset allocation, factor rotation, or risk management?
A) Asset allocation and factor rotation decision for strategy are taken about a proprietary tactical model which provide a medium-to-long term leading indication about market volatility.

Based on tactical model, our view was cautious with nearly 70% allocation to debt and gold while 30% allocation was towards low-risk equities concentrated in largecap and midcap stock scoring high on low volatility, dividend and quality factors.

While for first 11 months, both asset allocation and factor rotation worked in our favor with gold rally and low-risk equity delivered outperformance over equity/hybrid funds, heavy debt allocation in cut down downside by nearly 50% during a period marked by oil shock in March 2026, accounting for 100% outperformance in the month.

Q) Would you classify FY26 as a year of defensive outperformance or missed upside, given the strategy’s diversified nature?
A) FY26 was a year marked by diversification-led defensive outperformance when benefits of asset diversification and negative correlation among gold, equity and debt protected the gains made in good months against market volatility during bad months.

As FY 2026 was marked by failed breakouts and eventual break down at end of year, defensive posturing helped in protecting returns in last 2 months of the year.

Having said that, our rule-based approach restricted our gold exposure at some pre-defined levels which restricted our upside to a significant extent. However, these are the opportunity costs that comes with risk management.

Q) Your strategy combines asset diversification and factor investing. What makes this combination more effective than traditional equity-heavy portfolios?
A) Factor investing technique revolves around identification of fundamental and technical attributes (referred as factors in technical parlance) which explain outperformance of winning stocks over broader market with value, dividend, low volatility, quality, Momentum, Alpha and Size are identified as common factors.

Interestingly, each factor comes with its own unique market cycle and risk-return trade-off. For example, factors such as low volatility, dividend and defensive quality maximize their outperformance during bearish phase and more suitable for low-risk investors while high-risk factors such as Momentum, Smallcap and Jenson’s Alpha maximize outperformance during bullish phase which create opportunity to generate ‘alternate beta’ which is missing in traditional equity products.

By tactically rotating into suitable factor in line with market conditions, investors can create all-season outperformance for 3-5 year holding period across market conditions.

For example, during 2008 crash, most equity-heavy portfolios delivered losses of 60%-80% while a concentration in low-risk equity factors reduce the losses by 50% to around 30%. Here, asset diversification actually sweetens the deal even more.

As debt, gold and equities have either negative or near-zero correlation, their additional to the mix can make ‘alternate beta’ even more attractive. For example, asset diversification towards gold and debt further cut the downside to mere 15% during 2008 crash.

Continuing our example, as markets turned the tide in 2009, not only weight of equities was increased to capitalize on bullish trend but equity slice risk was also increased with bias towards high-risk factors Momentum and smallcap.

This mix of Asset rotation and factor rotation deliver all-season alpha neutralizing timing risk associated with traditional equity strategies.

To further build on example, while most equity-heavy portfolios delivered negative to zero returns over 6-year period of Dec 2007-Dec 2013, strategy model delivered double-digit returns of 17.26% over the same period.

Q) You highlight “timing risk” in equities. How does your model specifically mitigate this risk across market cycles?
A) Our tactical model provides us with a medium-to-long term market volatility signal which triggered asset rotation and factor rotation for the strategy. For example, if volatility signal predict spike in volatility, allocation to debt and gold is increased while introducing heavy bias towards low-risk factors in equity slice.

On the other hand, if model indicate a volatility moderation in future, equity allocation is raised with bias towards high-risk factors.

Strategy plays on both end of spectrum by reducing the risk in bad times and increasing the risk in good times, ensuring outperformance across market conditions and neutralizing the timing risk.

Q) The portfolio allocates across equities, debt, commodities, and international exposure. How do you decide the optimal mix at different points in the cycle?
A) Traditionally, cross-asset correlations between debt, gold, equities and internation equities is negative or less than 0.40 – means assets rarely move together.

Going by the track record of last 20 years, equities as long-term investment has been a winner with nearly 12% annualized returns over long-term holding period with even worst 10-year holding period has delivered around inflation beating returns around 7%.

However, these inflation-beating returns comes with substantial risk of short-term drawdowns. Over the last 20 years, there have 3 instances where Nifty 500 went down by more than 30% from all-time highs. In these cases, investors starting their journey at peak have to wait for many years to see gains on their portfolio.

Strategy is heavily biased towards equity in bullish phase with 60%80% allocation to domestic and international equities most of the time.

However, based on tactical model signal, strategy increase debt and gold allocation to 70% during the bad times or period expected to deliver underwhelming equity returns, protecting against the losses and take the ‘timing risk’ out of equation.

Q) Your model uses tactical signals and factor rotation. Can you explain how these signals are generated and how frequently they lead to portfolio changes?
A) Strategy used a proprietary rule-based tactical model to generate signals which trigger asset rotation and factor rotation. Model used multiple market and economic parameters such as US VIX, India VIX, Nifty 50 line Regression premium, GoI bond yields, Nifty 50 P/E ratio, gold prices, Nifty broad benchmark levels to generate an output which provide insight about market direction in medium-to-long-term.

Though, signals are generated on daily basis but portfolio changes are triggered on an average in 6-18 months. For example, model has been tested over last 20 years and model has generated change only 15 times.

Q) The strategy shows relatively moderate volatility and controlled drawdowns. What are the key levers you use to manage downside risk?
A) Strategy has multiple protection shields in form of low-cross-asset correction among asset classes, asset rotation and factor rotation, which work on sync to keep with risk at 50% of traditional equity products while delivering almost similar or sometimes, even better returns.

Though multi-asset offerings come with lower risk on account of low corrections, strategy improves on return/risk trade-off by moving to risk extremes – high risk in good times (high equity allocation and high equity beta) and low risk in bad times (low equity exposure and low equity beta) – through tactical asset rotation.

These levers allow strategy to reduce drawdowns to 10%-15% when Nifty 50 was down by 40%-70% during 2008 and 2020 bear markets.

Q) The strategy has delivered over 20% CAGR since inception (back-tested). How should investors interpret these numbers given the role of back-tested data?
A) Strategy follows a rule-based approach during back testing around asset class exposure, tactical shifts and security selection mechanism with rules been tested across 20 years covering 3 bear markets, multiple bull markets, interest rate cycles, inflation cycles and geopolitical events.

In a country like India, 20 years provide a reliable dataset on capability of these rules in delivering outperformance across market conditions.

These same rules have been casted into rules and leverage in portfolio construction and management with the perception that strategy would continue to deliver similar performance over in 10-15 years as market cycles tend to repeat themselves over time.

Ideally, investors are advised to look at numbers to evaluation efficiency of model in its tactical calls around asset rotation and factor rotation.

Having said that, there is always a risk that some economic megatrend might not be covered in the model, but that risk comes with every investment vehicle as ‘past performance is not an indicator of future returns.

Q) The strategy aims to deliver regular income with inflation-beating compounding. How do you balance income generation with long-term capital growth?
A) Strategy is designed to deliver 18%-22% CAGR for 10-year holding period without participation in downside risk during bear market with investor having an option to withdraw 1% of principle in form of income every month – translating to 12% annual income for investors.

As most products delivering >12% returns come with substantial downside risk, income withdrawals are often unsustainable if you are starting at peak of market as corpus is burned out.

However, capability of strategy is delivering similar returns while restricting downside allow it to service income needs of investors without ‘timing risk’.

For example, even an investor investing at peak of 2007 would have continued to get regular income and ending with CAGR of 18% after 10 years.

Q) You follow a rules-based approach for security selection, weighting, and rebalancing. How much human discretion is involved versus model-driven decisions?
A) 90%-100% of portfolio construction including asset allocation, security selection, weighing and rebalancing are driven by rule-based tactical and factor models as back testing around these rules form the core of the strategy.

At times, around 5%-10% of funds are diverted in line with manager’s discretion on some high-conviction trades.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)

The recent survey questioned residents across the region

Hundreds of people in the West of England support the expansion of Bristol Airport, according to a new YouGov poll. The survey, which questioned more than 1,120 adults, found 44 per cent were in favour of the transport hub’s growth, while 32 per cent were neutral and 24 per cent opposed the plans.

It comes just a month after Bristol Airport once again tabled proposals to expand, promising new destinations and 1,000 on-site jobs, despite concerns from environmental campaigners.

In 2023, the High Court granted the airport permission to increase capacity to 12 million passengers a year after North Somerset Council rejected its proposals in 2020. Now Bristol is looking to grow again – to accommodate 15 million passengers.

The airport has pledged to invest around £500m in improvements to the site and local infrastructure.

Under the plans, the runway would be expanded to allow flights to more cities in Europe and long-haul routes to places such as the US and Middle East.

There would also be a larger terminal, with more shops and restaurants, and the ability to walk onto aircraft without getting on a bus. The proposals include more car parking spaces and public transport improvements, too.

Dave Lees, chief executive of Bristol Airport, said: “It’s great to see such strong support for our plans from across our region. This polling shows that people want to travel from their local airport and value connections – whether they’re travelling for business, leisure, or reuniting with loved ones abroad.

“Our proposals would directly connect our region with new destinations and boost the economy.”

The YouGov poll also found that 60 per cent of those questioned had travelled via the airport in the past two years, while 73 per cent said they were considering using Bristol Airport in the next two years.

Of those who had used or plan to use Bristol Airport, 43 per cent said they were more likely to consider using public transport to access the airport.

Currently 10.8 million people use Bristol Airport every year.

“Fewer local people and business travellers would need to rely on travelling to London airports and could instead explore places further afield from their local airport, while also enabling businesses to reach new markets and the tourism sector to benefit from more international visitors exploring our region,” Bristol Airport said in a statement.

However, local residents and environmental campaigners have raised concerns about the impact of extra carbon emissions from an expanded airport. They also claim increasing capacity could lead to more congestion on local roads around the transport hub and create more noise.

India’s electricity system is entering a decisive phase, where soaring summer demand, rising renewable capacity, and structural gaps in storage are reshaping the entire power value chain. As peak demand touches record levels, experts say the real constraint is no longer generation—but flexibility.

In an interview with ET Now, Apoorva Bahadur, Senior VP, IIFL Capital highlighted how India’s power demand has rebounded sharply after a brief slowdown over the past two years, driven by rising appliance usage, climate volatility, and structural economic growth.

“The power demand definitely has increased quite significantly and this comes after a lull of almost two odd years,” Bahadur noted, pointing out that FY26 is seeing a sharp reversal after subdued demand conditions in FY25.

Renewables Meet Their Limit in the Evening Peak
India’s installed renewable base—led by nearly 150 GW of solar capacity—is now capable of meeting daytime demand comfortably. In fact, during recent peak load conditions of around 256 GW, the grid did not face shortages during the day.

However, the evening hours remain the critical bottleneck.

“The challenge lies in the evening bit wherein the solar does not generate anything, so the contribution of solar goes down to zero,” Bahadur explained.
This mismatch between daytime surplus and evening shortage is now defining the urgency for energy storage systems, particularly Battery Energy Storage Systems (BESS) and pumped hydro projects.Storage Becomes the Critical Missing Link
With gas-based plants facing fuel constraints, hydro output uncertain due to weaker monsoon expectations, and coal plants carrying most of the load, the system is becoming increasingly dependent on storage technologies to balance demand.

“We will also have to add a lot of batteries and pump storage to meet the gap,” Bahadur said, adding that while progress has been made, scaling remains a challenge.

Recent capacity additions have come from players like Adani Green and ACME, while NTPC has also commissioned pumped storage assets. However, the pace is still insufficient to match the speed of demand growth.

“Quite likely that this year if the summer demand continues to outperform, we might see peak shortages like we saw two years back or maybe more than that as well,” he warned.

Storage Arbitrage: The Emerging Profit Pool
A key structural shift is also emerging in pricing dynamics. Daytime electricity prices in India’s merchant market are increasingly falling—sometimes below ₹1 per unit—due to excess solar supply.

This creates what experts describe as a “time-shift arbitrage opportunity,” where electricity stored during low-price hours is sold during high-demand evening peaks.
“Any player who has merchant storage capacity, specifically batteries or pump storage, should corner a large portion of the profit pool,” Bahadur said.

Coal and gas assets with merchant exposure may also benefit, but rising fuel costs are expected to compress margins, especially for gas-based generation.

Power Prices Likely to Trend Higher—For Now
On electricity tariffs, the outlook appears inflationary in the near term due to heavy infrastructure investment across generation, transmission, and distribution.

“Generally there will be an inflationary trend in electricity prices,” Bahadur said, citing large-scale government capex in grids and distribution upgrades, including nearly ₹9 trillion earmarked for transmission expansion up to 2032.

However, this trajectory may eventually reverse.

“Once we cross a certain threshold in terms of renewable plus storage capacity addition, the view will change and it becomes deflationary,” he added, pointing to the near-zero marginal cost of renewable generation.

BESS Competition Raises Concerns on Returns
A growing concern in the sector is aggressive bidding in Battery Energy Storage System (BESS) projects, which are increasingly bundled with renewable contracts.

Bahadur noted that early-stage optimism in emerging technologies often leads to overly competitive bidding cycles.

“We have seen similar story play out in solar as well when we started this journey in 2014-15 onwards,” he said.

He cautioned that battery economics are still heavily influenced by global supply chains, particularly China, where lithium pricing and policy shifts can directly impact project viability.

“Batteries are commodities so pricing is largely decided by China which has the entire upstream industry,” he said, adding that recent cost pressures could strain returns on aggressively bid projects.

Over time, he expects the market to stabilize, with returns likely converging to more sustainable levels, similar to solar projects where equity IRRs have ranged between 11% and 17% depending on competition.

The Road Ahead
India’s power transition is now clearly entering a storage-led phase. While renewable capacity continues to expand rapidly, the real competition is shifting toward who can effectively store and deploy electricity across time. In this evolving landscape, storage assets are no longer supporting infrastructure—they are becoming the core profit centre of the energy system.

For the modern British SME, the “visual tax” has long been a barrier to growth. High-quality commercial photography—essential for e-commerce, social media, and digital advertising—comes with a hefty price tag, involving studio fees, equipment rentals, and post-production costs.

However, as we move through 2026, a strategic shift is occurring. Businesses are increasingly bypassing traditional shoots in favor of the GPT-Image-2 API to achieve professional-grade visuals at a fraction of the cost.

The True Cost of Traditional Photography vs. AI

Traditional commercial photography is notoriously difficult to scale. A single product shoot in London can easily run into thousands of pounds once you factor in the photographer’s day rate, model fees, and the inevitable delays of physical logistics.

By contrast, integrating the GPT Image 2 API allows a business to generate hundreds of bespoke, high-fidelity images for the price of a single lunch. But the advantage isn’t just in the raw numbers; it’s in the ChatGPT Images 2.0 engine’s ability to understand specific commercial requirements. Whether you need a product placed in a sleek minimalist kitchen or a rugged Highland landscape, the API delivers consistency and quality that was previously only available to brands with massive creative budgets.

Efficiency Through Automation

For an SME, time is as valuable as capital. The primary “How to use GPT-image-2” realization for most firms is that it functions as an automated design department. Instead of waiting weeks for a gallery of proofs, marketing teams can now:

• Generate Instant Lifestyle Content: Transform a basic product shot into a full lifestyle campaign by prompting for specific lighting and environmental textures.
• Localized Marketing: Quickly adapt visual assets for different regions or demographics without needing a second shoot.
• Rapid Prototyping: Test multiple visual styles for a new campaign in real-time, using data to decide which aesthetic drives the most engagement.

Strategic Deployment: Practical Integration for UK Businesses

Deploying the GPT Image 2 API into your business workflow doesn’t require a massive technical overhaul. Platforms like Kie.ai have simplified the process, making it accessible even for firms without an extensive in-house tech team.

1. Identify High-Volume Needs: Start by migrating your most frequent visual needs—such as blog headers, social media backgrounds, and newsletter banners—to an AI-driven workflow.
2. Standardize Your Brand Prompt: Develop a “Brand DNA” prompt that includes your specific color palettes, lighting preferences, and mood. This ensures ChatGPT Images 2.0 produces consistent results that align with your existing brand identity.
3. Workflow Integration: Utilize the GPT-Image-2 API to bridge the gap between creative ideation and final output. By integrating this API into your internal marketing tools or asset management processes, your team can generate high-quality images on-demand, drastically reducing the time from “concept” to “published.”

The Competitive Edge

In the current economic climate, “Cost-efficiency” is more than a buzzword; it is a survival strategy. By leveraging the advanced capabilities of the GPT Image 2 API, British SMEs are no longer at a disadvantage compared to larger corporations.

The ability to produce world-class visual content at scale allows small businesses to be more agile, more creative, and more profitable. As ChatGPT Images 2.0 continues to redefine the boundaries of digital realism, the question for business owners is no longer if they should adopt AI photography, but how quickly they can integrate it to stay ahead of the competition.

PE-backed legal group also acquires Kent’s JE Bennett Law

A specialist law firm has been acquired by private equity-backed Fletchers Group as part of a double deal to create one of the UK’s biggest Court of Protection specialists.

Fletchers has acquired EMG Solicitors, which is based in Durham and also has offices in Gosforth and Penrith, to create a dedicated Court of Protection and private client division under EMG.

It has also acquired Kent-based firm JE Bennett Law, which will join the expanded EMG business. Fletchers Solicitors’ existing 30-strong Court of Protection team will also transfer into EMG.

The expanded Court of Protection business will be led by EMG founder and CEO Emma Gaudern, who will join Fletchers’ management board. The team will have more than 200 specialists across EMG’s current offices as Manchester, Reading and Tunbridge Wells.

The latest deals have received regulatory approval but their value has not been disclosed.

North West group Fletchers was acquired by an affiliate of Sun European Partners in 2021 and has made several acquisitions since, including last year’s deal for family law specialist Rayden Solicitors. The group now has more than 1,000 staff.

Fletchers Group CEO Peter Haden said he was “absolutely delighted” with the deals. He said: “EMG and JE Bennett Law are two highly impressive, respected firms with deep expertise in Court of Protection and private client work. Bringing these teams together creates a specialist practice with real depth across the full spectrum of Court of Protection services, ranging from complex financial management and deputyships to high-value estates and trusts.

“It will also provide a full-service health and welfare offering, supporting clients on some of the most complex health and care decisions, education law matters and continuing healthcare challenges.

“This is a significant step forward in strengthening our private client capabilities and reflects our group strategy of scaling up and building expertise across the different areas of civil justice – expanding from our roots in serious injury and clinical negligence and into complementary areas of law.”

He added: “I am confident the team will quickly establish EMG as the pacesetter to watch, alongside our other specialist brands in the group.”

Emma Gaudern said: “During discussions with Peter and the team it quickly became apparent that Fletchers Group will be the best possible partner for our people and our clients. Being part of a progressive, growth-focused group will help EMG, JE Bennett Law and Fletchers’ CoP team to create a powerful, nationwide force in Court of Protection and private client services.

“The expanded EMG business will operate independently of Fletchers Solicitors with clear professional boundaries; appropriate information safeguards will remain in place, ensuring confidentiality and protecting sensitive commercial information.”

“We will also ensure that any Court of Protection clients introduced to EMG by external firms will not be represented by or referred to Fletchers under any circumstances.”

She added: “Consolidation in the legal sector is accelerating and we are excited to be a part of this significant shift in our industry, with support and backing from Fletchers to re-set our ambitious growth plans both organic, from our increase in scale, and inorganic, as we would love to speak to other firms looking to take advantage of the new opportunities in this evolving market.”

JE Bennett Law is led by founder and managing partner Jane Bennett, who will join the leadership team of the expanded EMG alongside Emma Gaudern, Jemma Morland, co-founder and director of Court of Protection at EMG,and Kate Edwards, director of court of protection at Fletchers.

Jane Bennett said: “Both Fletchers and EMG share our passion for helping vulnerable people, and the new expanded business will provide us with the opportunity to reach far more clients across the country needing our specialist help.”

A British artificial intelligence company founded by one of the architects of fintech unicorn Tide has written to every Member of Parliament warning that the political debate over children’s smartphone use has descended into a “false choice” between blanket bans and unrestricted access.

SafetyMode, the London-headquartered child safety technology firm led by Tide founder George Bevis, has used the parliamentary intervention to press ministers to consider a third path, arguing that on-device technology can give parents meaningful control without locking children out of the digital economy altogether.

The timing is not accidental. The letter lands in Westminster postbags days after a landmark American court ruling found that several of Silicon Valley’s largest platforms had knowingly engineered addictive products for young users, a judgment that has sharpened the appetite among legislators on both sides of the Atlantic for tougher action.

In Britain, the political mood music has shifted markedly over the past eighteen months, with cross-party support building for tighter restrictions on under-16s. Yet SafetyMode’s pitch to MPs is that the conversation has narrowed prematurely.

“Right now, the entirety of the conversation around social media and phone safety seems to pretend all we can achieve is either to open the floodgates entirely or to ban them completely, losing all benefits these technologies may offer,” the company writes in its letter, copies of which have been seen by Business Matters.

The firm, founded by Mr Bevis alongside Bertie Aspinall and product specialist Dan Barker, has spent the past two years developing what it claims is one of the most sophisticated parental control platforms on the market. Unlike rival products that route children’s data through cloud servers, SafetyMode’s technology runs artificial intelligence directly on the device, filtering harmful content in real time while keeping personal information off external servers.

The product was built in partnership with parenting forum Mumsnet, whose research underpins much of the company’s commercial thesis. More than 90 per cent of parents surveyed told Mumsnet that current smartphones are not safe enough for children, while 86 per cent expressed concern about the impact of devices on their child’s mental health and attention span.

Speaking to Business Matters, Mr Bevis said the political class risks reaching for the bluntest available instrument. “We are at a turning point in how society views children and smartphones. There is clear agreement that there is a problem, but the solutions being discussed are too narrow. Regulation matters, but it takes time, and it cannot be the only answer.”

Mr Aspinall, the firm’s co-founder, struck a more pointed note. “The courts, governments, schools and parents all recognise the risks. But companies at the heart of this won’t fix it themselves. So the question becomes, what do we do next? On the one hand is regulation. But if we want to protect children now, the answer is simple. You build safety into the device itself and put control back in the hands of parents.”

The company’s technology has been designed to read context rather than merely scan for prohibited keywords, identifying when conversations turn abusive, sexualised or otherwise damaging, even when those exchanges would slip past conventional filters.

For now, SafetyMode is available only on Android handsets. The firm has been openly critical of Apple, arguing that the Cupertino giant’s restrictions on third-party developers prevent meaningful parental controls being built for iPhone users, a complaint that echoes broader regulatory scrutiny of Apple’s walled garden in both Brussels and Washington.

There is also an industrial strategy dimension to the company’s lobbying. SafetyMode is positioning Britain as a potential global hub for what it calls the “safe tech for kids” movement, arguing that ministers could combine child protection with a fresh wave of innovation, investment and skilled job creation if they chose to back domestic firms developing protective technologies.

Whether MPs will be receptive remains to be seen. Backbench pressure for outright restrictions on under-16s using social media has hardened in recent months, and Whitehall has shown limited appetite for technological solutions that depend on parental engagement. But with the American courts now exposing platform behaviour in unprecedented detail, the case for action of some kind appears unstoppable.

The question Mr Bevis and his colleagues are putting to Parliament is whether that action should empower parents or simply slam the door shut.

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