A MAJOR airport has been forced to cancel all departing flights today.

Brussels South Charleroi confirmed the cancellations due to ongoing strike action, affecting around 16,000 passengers.

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While arrivals will be unaffected, all departing flights will no longer go ahead.

Ryanair is one of the major airlines to use the airport, and has said passengers will be rerouted or refunded.

Hundreds of Brits are expected to be caught up in the strike with the following departures cancelled today:

• FR5328 12:30pm to Manchester
• FR7323 2:35pm to Edinburgh
• FR3223 6:25pm to Manchester
• FR3239 8:55pm to Manchester

A statement on their website said: “Due to another security staff strike at Brussels South Charleroi (CRL) Airport, we have been forced to cancel a number of flights departing this airport on Tues 22 Oct.

“Flights arriving in Brussels South Charleroi are unaffected by the strike and will operate as scheduled.

“Passengers affected by these cancellations have been notified of their options of reroute or refund via email.”

They apologised for the inconvenience that was “out of their control”.

Flights departing the UK from Edinburgh and Manchester for the airport are expected to still go ahead.

Other airlines that fly to the airport include Wizz Air and Pegasus although UK passengers will not be affected by these cancellations.

Some of these flights are instead being diverted to Brussels Airport, around 45 miles away.

Brussels Charleroi said on their website: “Passengers scheduled to depart on this day will be contacted by their respective airlines within the next few hours to either rebook their flights or request a refund.”

Normal operations are hoping to go ahead as planned from tomorrow.

The strike, conducted by the airport’s security staff, is the third strike in the last two months.

The walkout is due to requests to improve staff working conditions.

It’s not the only flight cancellations that have affected Brits in recent weeks.

Flight compensation rules

A look at your rights if a flight is delayed or cancelled, when your entitled to compensation and if your travel insurance can cover the costs.

What are my rights if my flight is cancelled or delayed?

Under UK law, airlines have to provide compensation if your flight arrives at its destination more than three hours late.

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If you’re flying to or from the UK, your airline must let you choose a refund or an alternative flight.

You will be able to get your money back for the part of your ticket that you haven’t used yet.

So if you booked a return flight and the outbound leg is cancelled, you can get the full cost of the return ticket refunded.

But if travelling is essential, then your airline has to find you an alternative flight. This could even be with another airline.

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When am I not entitled to compensation?

The airline doesn’t have to give you a refund if the flight was cancelled due to reasons beyond their control, such as extreme weather.

Disruptions caused by things like extreme weather, airport or air traffic control employee strikes or other ‘extraordinary circumstances’ are not eligible for compensation.

Some airlines may stretch the definition of “extraordinary circumstances” but you can challenge them through the aviation regulator the Civil Aviation Authority (CAA).

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Will my insurance cover me if my flight is cancelled?

If you can’t claim compensation directly through the airline, your travel insurance may refund you.

Policies vary so you should check the small print, but a delay of eight to 12 hours will normally mean you qualify for some money from your insurer.

Remember to get written confirmation of your delay from the airport as your insurer will need proof.

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If your flight is cancelled entirely, you’re unlikely to be covered by your insurance.

Last Saturday, dozens of flights were cancelled in the UK due to Storm Ashley, affecting airports such as Leeds and Belfast.

And earlier this month, all flights to and from Florida were cancelled due to Hurricane Milton.

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UK public sector borrowing increased in September and was higher than official forecasts, underlining the scale of the challenges facing chancellor Rachel Reeves as she prepares to raise taxes in next week’s Budget.

Borrowing — the difference between public sector spending and income — was £16.6bn in September, £2.1bn more than in the same month last year and the third-highest September figure since monthly records began in January 1993, the Office for National Statistics said on Tuesday.

The figure was lower than the £17.5bn expected by economists polled by Reuters but above the £15.1bn forecast by the Office for Budget Responsibility, the UK watchdog.

Alex Kerr, economist at Capital Economics, said that the figures “highlight the limited scope the chancellor has to increase day-to-day spending without raising taxes”.

Kerr noted that the latest figure meant that borrowing was on track to overshoot the OBR’s forecast for the fiscal year 2024/25.

ONS deputy director for public sector finances Jessica Barnaby said: “While tax revenue increased [in September], this was outweighed by increased spending, partly due to higher debt interest and public sector pay rises.”

In the first six months of the fiscal year to September, borrowing was £79.6bn, which was £1.2bn more than in the same period in the last financial year and higher than the £73bn forecast in March by the OBR.

Darren Jones, chief secretary to the Treasury, said that the Budget would “require difficult decisions to fix the foundations of our economy and begin delivering on the promise of change”.

Reeves has identified a £40bn funding gap, some of which is likely to be filled by tax rises.

She has ruled out increases to income tax, VAT and national insurance for employees, but is expected to raise capital gains and inheritance taxes and extend the income tax threshold freeze beyond 2028.

Not adjusting the tax thresholds for the impact of inflation pushes people into higher tax brackets as they receive pay increases — a phenomenon known as “fiscal drag” — and increases government revenues. Other possible tax rises include raising national insurance contributions for employers and rises on fuel duty.

Rob Wood, economist at consultancy Pantheon Macroeconomics, expects a range of tax increases, but he also forecasts that the chancellor will borrow more to boost investment.

Higher capital spending could boost economic growth and could be helped by tweaks to one of the government’s fiscal rules, which pledges to reduce public debt as a share of GDP between the fourth and fifth years of the forecast.

Using a broader measure of public debt from the current one would give the government about £50bn of additional headroom to borrow, he noted, adding that Reeves’s focus on balancing the current budget “demonstrates a commitment to sustainable finances — unlike during the Liz Truss episode, which saw borrowing to fund an inflationary sugar rush of tax cuts”.

The other self-imposed fiscal rule involves balancing the current budget, which excludes investment, during the forecast period, which will end in 2029-30.

Public sector net debt, or borrowing accumulated over time, was 98.5 per cent of GDP at the end of September, the highest level since the early 1960s, the ONS said.  

Cara Pacitti, economist at the Resolution Foundation, a think-tank, said: “Today’s data highlights the scale of the public finances challenges facing the chancellor as she grapples with overspending today, the need to avoid austerity in the future, and having to fund extra public service spending through tax rises.”

The Financial Conduct Authority (FCA) has interviewed 20 finfluencers under caution for touting financial services products illegally.

It said the individuals were interviewed voluntarily using the FCA’s criminal powers. The regulator has not yet named the individuals under investigation.

The FCA also announced that it has issued 38 alerts against social-media accounts operated by finfluencers that may contain unlawful promotions.

Finfluencers, or financial influencers, are social-media personalities who use their platform to promote financial products and share insights and advice with their followers.

They are not authorised by the FCA and are unqualified to be giving financial advice to their followers, mostly younger people.

Increasing numbers of young people are falling victim to scams, and finfluencers can often play a part.

Nearly two-thirds (62%) of 18- to 29-year-olds follow social-media influencers. Of these, 74% said they trusted their advice, while 90% have been encouraged to change their financial behaviour, according to the FCA.

There has been a significant increase in finfluencers over recent years after a surge in online DIY investing.

Steve Smart, joint executive director of enforcement and market oversight at the FCA, said: “Finfluencers are trusted by the people who follow them, often young and potentially vulnerable people attracted to the lifestyle they flaunt.

“Finfluencers need to check the products they promote to ensure they are not breaking the law and putting their followers’ livelihoods and life savings at risk.”

The regulator has taken a zero-tolerance approach to unauthorised financial promotions online.

In May, FCA brought charges against nine individuals in relation to an unauthorised foreign exchange trading scheme promoted on social media.

The individuals, many of whom were former reality TV stars, had appeared in shows including Love Island and The Only Way is Essex.

They include Holly Thompson, Biggs Chris, Jamie Clayton, Lauren Goodger, Rebecca Gormley, Yazmin Oukhellou, Scott Timlin, Emmanuel Nwanze and Eva Zapico.

Nwanze was also charged with running an unauthorised investment scheme and issuing unauthorised financial promotions.

The trial has been set for 2027 at Southwark Crown Court and they face up to two years in prison if convicted.

The FCA’s finfluencer crackdown has been welcomed by regulated entities.

Paul Harris, financial services and fintech partner, Osborne Clarke, said: “This is a landmark step from the FCA, as it is the first time the FCA has sought to prosecute social-media influencers allegedly connected to the communication of unauthorised financial promotions online.

“While the decision to prosecute is significant, it is not necessarily surprising, given the warnings previously published by the FCA and the recent guidance on the publication of financial promotions on social media.”

James Alleyne, legal director in the financial services regulatory team at Kingsley Napley LLP, added: “Finfluencers need to be aware that the FCA’s perimeter is broad and it is very easy to fall within its jurisdiction even without intending to do so. Similarly, financial promotions are tightly regulated.

“Even where individuals are acting in good faith and creating what is intended to be purely educational content, it does not take much to inadvertently cross the line into regulated business and, by doing so, become exposed to a possible criminal investigation.”

Kate Smith, head of pensions at Aegon, also said: “People need to be very wary of so-called ‘finfluencers’ offering financial advice or guidance online, particularly if they are promoting products or so-called investment opportunities. Alarmingly, an increasing number of young people are falling for these.

“There are strict rules for regulated firms around online communications and the FCA make clear that firms need to take appropriate legal advice to understand their responsibilities prior to using influencers in retail investment.

“However, there are still many unauthorised financial influencers with wide followings offering non-regulated pensions and investment advice on social media and this is concerning. We strongly welcome the FCA intervening to make sure this stops.”

HSBC has announced the appointment of its first female finance chief in the bank’s 159-year history as its new boss shakes up the business.

Pam Kaur has worked at the bank for more than a decade and is currently its chief risk and compliance officer.

HSBC’s chief executive, Georges Elhedery, also unveiled plans to overhaul the UK-based banking giant to “unleash our full potential and drive success into the future.”

Mr Elhedery is under pressure to cut costs, increase profits and navigate tensions between China and the West.

As well as becoming HSBC’s chief financial officer, Ms Kaur will also take up the role of executive director of the board, which is subject to election at the firm’s next annual general meeting.

“We had a strong bench of internal and external candidates to choose from and Pam was the exceptional candidate,” Mr Elhedery said.

Under the shakeup plan, the bank will create separate business units in the UK and Hong Kong. There will also be two other operations: “corporate and institutional banking” and “international wealth and premier banking”.

Business in these operations will fall into either “eastern markets”, which includes the Asia-Pacific region and the Middle East, or “western markets”, covering the UK, continental Europe and the Americas.

“The new structure will result in a simpler, more dynamic, and agile organisation as we focus on executing against our strategic priorities, which remain unchanged,” Mr Elhedery said.

Good morning and welcome to your Morning Briefing for Tuesday 22 October 2024. To get this in your inbox every morning click here.

FCA interviews 20 finfluencers under caution for touting financial products

The Financial Conduct Authority (FCA) has interviewed 20 finfluencers under caution for touting financial services products illegally.

It said the individuals were interviewed voluntarily using the FCA’s criminal powers. The regulator has not yet named the individuals under investigation.

The FCA also announced that it has issued 38 alerts against social-media accounts operated by finfluencers that may contain unlawful promotions.

‘Unprecedented shift’ in fee models used by financial advice firms

There has been an “unprecedented shift” in the variety of fee models used by financial advice firms, a new report from NextWealth suggests.

Percentage of assets remains the most common charging structure, used by 71% of respondents’ firms.

The study shows that while this charging model continues to dominate, its use is in decline – with popularity of all other charging structures rising.

In Focus: Vulnerability is more than just a tick-box exercise

“It’s easy, when one hears the word ‘vulnerability’, to say, ‘That’s not me,’” points out chief reporter Lois Vallely.

“My dad has asthma, Type 2 diabetes and high blood pressure, but he still insisted he should take his turn to make a trip to the supermarket during the Covid-19 lockdowns.

“This is just one of many issues advisers face when identifying vulnerability in their client base.”

Quote Of The Day

No government at all serious about growth would hike CGT on entrepreneurs selling a small business

– Tina McKenzie, Policy and Advocacy Chair at the Federation of Small Businesses, sends out a warning ahead of the 30 October Budget

In Other News

A recent analysis of Origo’s pension-transfer data reveals that a growing number of policyholders are shopping around for the best annuity deals, moving away from their original providers.

According to Origo, while 45% of annuity buyers are sticking with their existing pension provider, 55% are switching to new providers to secure better terms.

The Financial Conduct Authority (FCA) recently reported a 38.7% rise in annuity purchases between the 2022/23 and 2023/24 tax years.

This increase reflects a shift in consumer behaviour, with more people exploring the wider market to maximise their retirement income.

Anthony Rafferty, CEO of Origo, noted: “It’s encouraging to see more pension holders exercising their option to switch providers for better annuity rates. Securing the best deal is essential, as annuity purchases are irreversible.”

Origo also launched the Annuity Transfer Tracker, a tool that provides real-time updates on annuity transfers between pension and annuity providers.

This tool allows advice firms to monitor the progress of their clients’ transfers, improving service and reducing the need for follow-up calls.

Rafferty believes this tool will enhance the efficiency of the pension-to-annuity transfer process and ensure clients get the best possible retirement outcome.

UK borrowing tops official forecasts again as Reeves readies budget (Reuters)

Interest rates to fall to 2.75% by next autumn, Goldman Sachs predicts (The Guardian)

Employment reforms to cost firms up to £4.5bn a year (Bloomberg)

Did You See?

Employee engagement in the UK has hit a concerning 10-year low, with only 10% of employees feeling engaged, compared to the global average of 23%, according to workplace consultants Gallup.

This is particularly alarming for the UK financial services sector, which faces significant challenges as generational shifts approach.

By 2025, Gen Z will make up a quarter of the workforce, while one-third of financial advisers are expected to retire within the next three years.

To navigate this transition, firms must improve their employee engagement and management practices to attract and retain the next generation of advisers.

Read the full story by Simon Evans, director at Clearcut Consulting – Engage First.

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US secretary of state Antony Blinken is due to hold talks with Israeli leaders on Tuesday as the Biden administration tries to revive stalled talks to end the war in Gaza and secure the release of hostages following the killing of Hamas leader Yahya Sinwar.

With Blinken set to meet Israeli Prime Minister Benjamin Netanyahu, the state department said it believed there was “an opportunity to move the ball forward” on ceasefire negotiations. This is Blinken’s 11th visit to the region since the war erupted after Hamas’s October 7 attack on Israel last year.

But diplomats say there is little momentum for renewed talks as Netanyahu’s far-right government continues its offensive in Gaza and intensifies its assault against Hizbollah in Lebanon.

Since Israeli forces killed Sinwar, the mastermind of Hamas’s October 7 attack, last week, Israeli strikes have killed scores of people in northern Gaza. Israel has also widened its attacks on Hizbollah in Lebanon, targeting branches of a microlender affiliated with the group and pressing ahead with its land offensive in the south.

The region is also bracing for the Israeli government’s response to an Iranian missile attack on Israel three weeks ago.

Netanyahu said after Sinwar’s death that the war could end if Hamas laid down its arms and returned the hostages. But Hamas has stuck to its position that it will only accept a deal if Israel agrees to a permanent ceasefire and withdraws its troops from the besieged strip, something Netanyahu has repeatedly rejected during months of US-led negotiations.

The Israeli prime minister faces pressure from far-right allies in his ruling coalition not to make concessions to the Palestinians. They have threatened to leave his government if he agrees to what they describe as a “reckless” deal with the Palestinian militant group.

Hamas, meanwhile, has to select a new leader to replace Sinwar, who had the final say on indirect negotiations with Israel.

Blinken’s trip to Jerusalem comes a day after White House envoy Amos Hochstein held talks in Beirut with Lebanese leaders about diplomatic efforts to end the spiralling conflict between Hizbollah and Israel.

Hours after those talks, Israeli forces launched more than a dozen air strikes on the southern suburbs of Beirut. One attack killed four people, including a child, next to the entrance of a government hospital in south Beirut, Lebanese health officials said. Another strike hit a fisherman’s port close to Lebanon’s international airport.

Israel’s military spokesperson Rear Admiral Daniel Hagari alleged on Monday that Hizbollah had stored $500mn in cash and gold under the Sahel hospital, another medical facility in Beirut’s southern suburbs. He said the Israeli air force was “monitoring” the site but added it would “not strike the hospital itself”.

The Israeli military did not provide evidence for the claim, and the hospital has invited journalists to inspect its facilities on Tuesday, Lebanon’s National News Agency reported.

Israel’s year-long offensive against Hizbollah has killed almost 2,500 people in Lebanon and forced more than 1.2mn from their homes, mostly in the past month, according to Lebanese authorities.

The conflict began after Hizbollah started firing rockets towards Israel following Hamas’s October 7 attack, forcing about 60,000 Israelis from their homes in northern Israel.

Despite suffering a series of military blows, including the killing of its leader Hassan Nasrallah last month, Hizbollah continues to launch rockets, drones and missiles at Israel.

On Tuesday, the Iran-backed group said it had fired rockets towards the Glilot military intelligence base in Tel Aviv’s suburbs as sirens were set off across Israel’s commercial hub. The group also said it launched projectiles at a naval base near the northern port of Haifa.

The Israeli military said most of the projectiles were intercepted and there were no immediate reports of injuries. Hizbollah has said it will not agree to a ceasefire as long as Israeli troops are fighting in Gaza.

About 80 Israeli civilians and soldiers have been killed by Hizbollah fire into Israel and during Israel’s land invasion of southern Lebanon.